They have different bars and restraunts to visit, cloud 23, podium bar and the podium restaurant. An example of vertical integration is Virgin Trains which is owned by Virgin Group and also together with the stagecoach. The way an organization operates its business can be affected only once they overlook money which means fewer customers are arranging their vacations in travel firms. The strategy helped Carnegie produce cheaper steel, and empowered it in the marketplace. By having their own aircraft they are able to fly their customers as part of a package holiday. Tour operators will purchase the accommodation, transport and tickets for tourist attractions from the principals and put together package holidays which they sell in brochures and online.
What are interdependencies with examples? The paper goes on to illustrate how trends towards Fordist organization within airlines have conflicted with post-Fordist trends in hotel operations, to undermine attempts at vertical integration across the tourism industry. Let us take the example of a car manufacturer implementing this strategy. Why do companies chose to horizontally integrate? What is the difference between Vertical and Horizontal Integration? Also the company will lose focus due to too many activities being done within one company. However, customers can still book their holidays with First Choice as they have separate websites and travel agents but they will usually fly on a Thomson plane with a Thomson crew. Conclusion Travel agents are having to change to meet the needs of the customer, and are turning to the 'niche' market to make commission. A suitable example of diversification is the Phillip Morris Company. Usually each member of the supply chain produces a different product or market-specific service, and the products combine to satisfy a common need.
Tour operator, Tourism, Travel 2249 Words 7 Pages The Meaning of Vertical and Horizontal Integration Horizontal integration is where an organisation owns two or more companies, on the same level of the buying chain. Larger organisations, such as Travelcare make a bigger profit and therefore it will not affect the organisation, if the merge doesn't work. It is also thought that in the tourists eyes a company combining all aspects of the tourism experience will be of more use and more popular with tourists. The purpose of diagonal integration is not to produce a single service and market it to a supermarket of clients. It has been viewed as a source of both foreign currency and income for the natives. Companies that are integrating are able to set the price, and smaller companies such as Collette Worldwide Holidays, will be unable to compete.
These laws prevent big corporations from acquisitions and mergers that would narrow the competitive market, therefore creating a monopoly. It is the process by which firms use information technologies to logically combine services for example, financial services and travel agencies for best productivity and most profits. It can mean that smaller companies are forced out of business, therefore making customers have to come to the integrated company. What is vertical integration including backwards and forwards integration and examples? Alton Towers An example interdependency is at Alton Towers for instance the businesses within the local area here are some examples: · The transport such as coaches since they may get discount or offers when bringing people to and from Alton Towers therefore they can use this as an advantage and use this to get more customers. Horizontal Integration is when two sectors merge collectively; it is where one business that provides a product gets control another business who offers similar products. Vertical- Where a business at the point on the chain of distribution purchases or acquires a business at a higher or lower level of the chain of distribution.
The legal ramifications will have to be studied as there are strict anti-monopoly laws in many countries: if the merged entity threatens to oust competitors from the market, these laws will be used against it. They tend to buy or merge with other companies, always striving for greater commercial success and market dominance. Staff may give up after a while and leave their job if indeed they feel they aren't doing anything for a whole day. Vertical Integration focuses on many stages of production as was illustrated by Ford — automobile production finished good , steel and tyre production raw materials. Thomas Cook have agreed to merge with MyTravel to cut costs - a predicted £75 million a year saving - and combat competition from low-cost airlines and Web-based travel agents. The companies acquired need not be in the same industry or at the same stage of production. There are a number of choices taking a look at sustainability for tourists; activities and excursions.
Selling brochures through the travel agents or direct to customers over the internet. Grayways have 11 organised trips to Chester Zoo every year which gives people in the local area plenty opportunities to visit Chester Zoo along with many other attractions. Standard Oil, which was seen as a powerful conglomerate brooking no competition, was split up into over 30 competing companies in an anti-trust case. If the Tour Operators didn't work with the Travel Agents then there would be less people selling the packages so there would be less customers buying them. Introduction Task 2A Explain what the term's vertical and horizontal integration mean.
. Being the new Thomson Airways, they offer a wider choice of destinations as they now have more planes and crew, their current fleet is made up of 59 aircraft: 33 x Boeing 737, 15 x Boeing 757, 5 x Boeing 767 and 6 x Boeing 787. This shows how Thomson has been vertically integrated. An example of this is shown above, Thomson brought the airline, Britannia Airways and also Lunn Poly, a travel agent. Interdependency- when organisations depend on one another No single component of the travel and tourism industry can operate alone without relying on other parts of the industry. In addition, this creates more customers for both companies as repeat customers from Thomson are more likely to use First Choice and repeat customers from First Choice are more likely to use Thomson.
Case Study: Vertical Integration and the Effect on the Travel and Tourism Industry When two similar companies such as two hotels, are offering very similar products and are in a strong competing situation, integration is a popular move. Also it encourages domestic tourism too, as many people. Horizontal integration and vertical integration are both forms of expansion and allow the company to gain better control, market share, economies of scale, etc. Unit 1- Investigating the Travel and Tourism Sectors Types of companies. Horizontal integration is when a company acquires or merges with another company within the same industry that sells a similar product or provides a similar service. Thomson Tour Operators benefits from working with the Travel Agents as they're able to easily promote their packages to customers first hand.
Call Centre- The relationship between Thomson Tour Operators and call centres is also important as it allows customers to book their holiday from the comfort of their homes but still having the re assurance of a travel agent. Companies that are integrating are able to set the price, and smaller companies such as Collette Worldwide Holidays, will be unable to compete. Retailer Retailer Principal Principal Principal Wholesaler Wholesaler Wholesaler Horizontal Integration Customer e. Looking at in on cell phones is also suitable as there are apps which people can download and do everything on the website. However this might attract inbound and domestic tourists.