Examples Of Vertical Integration In Travel And Tourism Industry

Vertical integration was a means through which firms can gain a certain level of competitive edge in gaining a significant market base.

Office de tourisme paimpont. An example of vertical integration is virgin trains which is owned by virgin group and also in partnership with the stagecoach. In the travel industry two companies take over one another in order to find out different ways to sell their products and services to their customers. P3 met description of the chain of distribution and horizontal and vertical integration ajw.

Vertical integration in travel and tourism can mean for example that the various products or services involved in a single vacation are all owned by the same parent company. It can be a voluntary decision by both companies or it can be the take over of one company by another. An example of vertical integration is virgin trains which is owned by virgin group and also in partnership with the stagecoach.

You can see from the chain of distrubutions how they all rely on each other when buying and selling to customers. In fact there have been numerous attempts of vertical integration in the tourism industry lafferty and van fossen 2001. Vertical and horizontal integration in tourism vertical integration examples travel and tourism.

This means that the organisation can offer a variety of products which are at the same level in chain of distribution. The vertical integration of transportation tour operators and travel agents in the uk to create three large companies controlling majority of the market is an example renshaw 1994. Vertical integration is when an organisation own companies on two or more levels of the buying chain.

Vertical integration and the effect on the travel and tourism industry when two scalar companies such as two hotels are offering very similar products and are in a strong competing situation integration is a popular move. A tour operator acquires a travel agency that makes arrangements for flights hotels and cruises all owned by the tour operator. However vertical integration is often associated with high fixed costs.

Selling brochures through the travel agents or direct to customers over the internet. Horizontal integration in tourism examples. The chain of distribution is a chart which explains where agents involved with the travel and tourism industry are linked together through the chain of distribution.

The chain of distribution helps me understand how horizontal and vertical integration works so if a tour operator mergers with another tour operator this is horizontal integration. The new easyjet holidays vertically integrated tour operator went live today. Travelopia is the worlds largest collection of specialist travel brands.