"Original Title: is it possible to consolidate albums so that I have 1 album with multiple folders in it?"
It is just the other way round: You can have folders with multiple albums in them.
For example, I have one folder named "⛵️_Travel Vacation Folder"
- with subfolders for groups of ten years,
- with subfolders for each year,
- with albums for each photo shooting trip.
With a few clicks into the sidebar in Photos I can easily find and open the album I want. Here is a screenshot from Photos for Mac.

Are you asking about Photos for Mac or Photos on a mobile device? iPhone, iPod, iPad, Vision Pro?
On the Mac we can easily drag existing albums into new folders, but on the mobile devices it is better to plan ahead and create the folders before we create the albums, so we can create the albums directly inside the folders where we want them.
I am managing my folders on the Mac and are syncing them with iCloud Photos to my iPhone and iPad and the Vision Pro.
I am trying to keep the number of subfolders and albums in each folder small. This makes it easier on devices with small displays to find something in a folder, because we do not have to scroll. Opening a sunflower is easier than scrolling. But we need a good plan how to design the folder structure, so we know the path to each album.