Integration Travel And Tourism

Integration in the travel and tourism industry occurs when one company owns or controls more than one part of distribution process.

Miss tourism uganda 2013. There are two types of integration. Travelopia is the worlds largest collection of specialist travel brands. Airlines or tour operators may buy or become associated with hotels in cities which it serves in order to ensure that customerstourists have accommodation available to reinforce their flight purchasing decision.

This means that the organisation can offer a variety of products which are at the same level in chain of distribution. 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. The benefits that are possible from an effort to vertically integrate include better.

Travelopia is a great example of a tourism organisation with lots of horizontal integration. This allowed the firms to access the markets in tourism sectors andor to provide continuity in providing complete tourism service to customers renshaw 1994. If analyzed and executed properly it can lead to increased market share increased efficiency reduction in costs and.

Vertical integration is the combination of two or more production stages in one company that normally operate out of separate organizations. The attractiveness of the european tourism market because of heightened regional integration ratz katay 2007 encouraged the integration of hotels car transportation and travel agencies. These are some definitions that are used in the travel and tourism industry.

Horizontal integration is when two industries merge together. Horizontal integration in tourism examples. A tour operator acquires a travel agency that makes arrangements for flights hotels and cruises all owned by the tour operator.

An example of horizontal integration is the first choice group and this is because they own first choice hypermarket as well as first choice travel agency. Marketing and distribution advantages are main reason for the travel and tourism industry for vertical integration. Horizontal integration can be a smart strategic choice for companies.

Interrelate when two or more businesses become connected to each otherchannel of distribution the movement of products or services between organisations integration when businessesorganisations combine togetherinterdependency when organisations depend on one anotherno single component of the travel and tourism.