Organisation links . . .
Horizontal Integration-
This occurs when companies are bought out or merged at the same level in the chain of distribution. Examples of these are;
-Travel agencies buying each other. Often original brand names are retained so the general public are unaware of the takeover.
- First Choice and Tui are both tour operators and they merged together.
- Co-op Travel and Thomas Cook have also recently merged to save costs and make more profit.
-Travel agencies buying each other. Often original brand names are retained so the general public are unaware of the takeover.
- First Choice and Tui are both tour operators and they merged together.
- Co-op Travel and Thomas Cook have also recently merged to save costs and make more profit.
Vertical Integration-
This occurs when two companies at different levels of the chain of distribution merge or are bought. For example;
- Tui owns 50% share in the Sol y Mar hotel chain.
- Tui owns 50% share in the Sol y Mar hotel chain.
Merger-
When both businesses become a single business. Tour operators wish to integrate with a chain of travel agents for different reasons such as;
-to expand the business
-to make profit
-to make greater market share
-greater recognition of the brand name.
-to expand the business
-to make profit
-to make greater market share
-greater recognition of the brand name.
Links and working together . . .
There are many links throughout the travel and tourism industry, when different companies work together to make money and get commission. Such as; transport companies, which get business by working with other businesses to make package holidays which brings visitors to attractions. Within package holidays such as all inclusive packages, they usually includes a travel rep that also is at your holiday destination for the same period of time as you. A travel rep has various jobs, for example they have chats every morning to promote and sell different trips through your stay. Every sale the rep gets the hotel may reward them with commission which can be a free meal or free drinks to say thank you for making the company well known.
Alton Towers are sponsored by Cadburys. Cadburys will be giving money to Alton Towers for promoting their name but Cadburys will be getting money back in return by Alton Towers selling their products. By Cadburys sponsoring Alton Towers, Cadburys are getting more well known from tourist all over Europe travelling to Alton Towers and buying Cadburys products as they know they're a well known brand.
Alton Towers are sponsored by Cadburys. Cadburys will be giving money to Alton Towers for promoting their name but Cadburys will be getting money back in return by Alton Towers selling their products. By Cadburys sponsoring Alton Towers, Cadburys are getting more well known from tourist all over Europe travelling to Alton Towers and buying Cadburys products as they know they're a well known brand.