What are Flickr collections?

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A Flickr Collection helps you organize albums into a story. A collection may contain albums or collections, but not both. So you can have either a collection that contains just albums, or a collection that contains collections; which in turn contain albums.

For example, you go on a vacation and want to share all of your photos with your friends and family, but you'd like them to experience it in the same way you did. 

So, you create a collection, as the central hub for your vacation, and fill the collection with several albums; each album containing photos from different places you visited along the way.