This report will therefore demonstrate how the supply of outbound package holidays will change as a result of changing demand for other products that the travel agency can provide and expectations of profit. As discussed above, when the demand for overseas package tours is low, people tend to travel domestically as an alternative, so the demand for domestic package tours will increase. In response to this, travel agencies tend to reallocate their resources from outbound tourism to focus on domestic travel product, so the supply of outbound products will decrease (Tribe, 2011). In contrast, when the exchange rate is favorable for international travel in Australia, indicating a promising sales volume, companies have higher profit expectations in this segment and therefore tend to provide their customers with more foreign destinations.