Unit 1 - Investigating the Travel and Tourism Sector
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Interrelationships within the travel industry
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Unit 1 - Investigating the Travel and Tourism Sector
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PEARSON (PEARSON)
Summarising the different types of interrelationships in the Travel and Tourism sector. Interrelationships in Travel and Tourism is where individual businesses work together with other organisations to be successful.
Unit 1 - Investigating the Travel and Tourism Sector
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Ellie Riddle
Reviewing the different types of interrelationships
In this assignment I will be summarising the different types of interrelationships in the
Travel and Tourism sector. Interrelationships in Travel and Tourism is where individual
businesses work together with other organisations to be successful. Tourism is a very
competitive and complex sector and many companies develop links with other businesses as
a way of maximising profits.
The first interrelationship I will be investigating is the chain of distribution. The chain of
distribution means getting a product to a consumer, for example hotels put packages
together who then give them to tour operators. The tour operators then give them
to travel agencies to sell to a consumer. Hotels, tour operators and travel agencies are all
working together to ensure consumers get the best deals and packages. A company who
uses this chain of distribution is TUI, who have their own airline TUI Airways (principle), tour
operators who sell package holidays, flights and ancillary services (wholesalers) and instore
travel agents (retailers).
The second interrelationship I will be investigating is horizontal integration. Integration in
the travel and tourism industry occurs when one company owns or controls more than one
part of distribution process. Horizontal Integration, however, is when the organisation owns
two or more companies on the same level of the distribution chain. An example of this is TUI
Travel PLC. In March 2007, the merge of Thomson and First Choice was announced and was
approved by The European Commission in June 2007. The merged company, TUI Travel PLC,
began operations in September 2007. TUI and First Choice's in-house airlines, Thomsonfly
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