How Travel & Tourism Organisations work together?
Horizontal Integration - Is when one company merges with another similar company at the same stage of the Chain of Distribution.
Vertical Integration - Is when one company merges with another company at a different stage of the Chain of Distribution.
Interrelationship - Is where the public and private sector join together to make the leisure industry better than it is.
Inter-dependency - When organisations depend on one another.
The Chain of Distribution isn't as simple as it used to be, nowadays the Tour Operator owns the Airline, Thomson and Thomas Cook being examples. They have their own aircraft's to fly people to their destinations as part of their packaged holidays. Even if the Tour Operators don't own the Airline, they still rely on the tour operators to sell seats on the aircraft's as part of their packages. Traditionally the Travel Agents sell the packages that the Tour Operators put together but now the Tour Operators can sell them themselves online on their own websites.
Fully Integrated Chains Of Distributions.
This is where the chain is owned by the same company for example:
Fully Integrated Chains Of Distributions.
This is where the chain is owned by the same company for example:
- Thomas Cook Airline
- Thomas Cook Tour Operators
- Thomas Cook Retail
- Thomas Cook Ancillary Services
Integration.
Until recent years booking a holiday usually had to be Tailor Made by yourself, you would have to deal with different parts of the industry to create a package yourself. However, the industry and chain of distribution is changing and businesses are starting to change/expand their area of operation and this is integration.
There are many advantages of Businesses offering all the different aspects of a holiday, one being it's a lot easier to book all in one and you can make sure you don't miss anything out, such as transfers or insurance. Another positive is that the company is able to create and control the costs and it usually works out cheaper than doing it all separately which appeals to a lot more people and finally, the business can ensure that you receive high standards in everything you book.
Until recent years booking a holiday usually had to be Tailor Made by yourself, you would have to deal with different parts of the industry to create a package yourself. However, the industry and chain of distribution is changing and businesses are starting to change/expand their area of operation and this is integration.
There are many advantages of Businesses offering all the different aspects of a holiday, one being it's a lot easier to book all in one and you can make sure you don't miss anything out, such as transfers or insurance. Another positive is that the company is able to create and control the costs and it usually works out cheaper than doing it all separately which appeals to a lot more people and finally, the business can ensure that you receive high standards in everything you book.
Vertical Integration.
Thomson (A tour operator) merged with First Choice Holidays in 2007, now they are both part of TUI. This meant that Thomson could have greater dominance in the High Street and in the UK travel industry, this created more money and then in the long-run more jobs for the company as it become a lot more known and more and more people started booking package holidays with Thomson because of their low prices but high standards.
Thomson (A tour operator) merged with First Choice Holidays in 2007, now they are both part of TUI. This meant that Thomson could have greater dominance in the High Street and in the UK travel industry, this created more money and then in the long-run more jobs for the company as it become a lot more known and more and more people started booking package holidays with Thomson because of their low prices but high standards.
Inter-dependencies.
Organisations can't work alone, they are dependent on each other. Visitor attractions are an example of an organisation dependent on another organisation, they rely on Transport organisations to bring the visitors to their attractions. UK and Regional Tourist Board promote domestic and inbound tourism, they provide information for people to read and encourage people to come visit the local areas.
Low Cost Holidays is an organisation that enters agreement with others so that they can all benefit and make profit from a booking. If a person has purchased a flight then they may also need accommodation, transport and insurance. Both the customer and the Organisation can benefit from this as it makes it easier for the customer as they don't need to worry about finding transport and accommodation and it benefits the organisation as they are making more money and helping the other organisations make money too.
Organisations can't work alone, they are dependent on each other. Visitor attractions are an example of an organisation dependent on another organisation, they rely on Transport organisations to bring the visitors to their attractions. UK and Regional Tourist Board promote domestic and inbound tourism, they provide information for people to read and encourage people to come visit the local areas.
Low Cost Holidays is an organisation that enters agreement with others so that they can all benefit and make profit from a booking. If a person has purchased a flight then they may also need accommodation, transport and insurance. Both the customer and the Organisation can benefit from this as it makes it easier for the customer as they don't need to worry about finding transport and accommodation and it benefits the organisation as they are making more money and helping the other organisations make money too.