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What economic factors do tour operators take into account in setting the price of their package holidays?

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Question – Must fit to this criteria
What economic factors do tour operators take into account in setting the price of their package holidays? (60% marks here)
(a)Using demand and supply fundamentals, explain why prices in school holidays are often higher than in school terms. (20% marks here)
(b)How do tour operators take account of risks (such as e.g. exchange rate changes) in pricing their holidays? (20% marks here)
You may find it helpful to read the ABTA publication before starting: http://abta.com/resource-zone/publication/the-consumer-holiday-trends-report-2014

The referencing must be done in UWE harvard style: http://www1.uwe.ac.uk/students/studysupport/studyskills/referencing/uweharvard.aspx#showAll using only legitimate sources (i.e. NO wikipedia ect)

Reference as much as possible a book referenced should be: Begg, D., Ward, D. (2013) Economics for business. 4th ed. Berkshire: Mc Graw Hill Education

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