hospitality
Tourism Management 22 (2001) 11}19
Integrating the tourism industry: problems and strategies
George La!erty *, Anthony van Fossen
Graduate School of Management, University of Queensland, St Lucia, Queensland 4072, Australia
School of Humanities, Grizth University, Nathan, Queensland 4111, Australia
Received 6 September 1999; accepted 15 December 1999
Abstract
This paper addresses two interrelated issues in tourism development: horizontal integration within tourism's component sectors and attempts at vertical integration between them. The paper employs a conceptual framework adapted from regulation theory, to assess the dynamics of these processes, particularly in relation to airlines and hotels. Through examining some of the most important examples of both horizontal and vertical integration, it indicates how these have in#uenced contemporary strategies in the component sectors. The paper goes on to illustrate how trends towards Fordist organization within airlines have con#icted with post-Fordist trends in hotel operations, to undermine attempts at vertical integration across the tourism industry.
2000 Elsevier Science Ltd.
All rights reserved.
Keywords: Regulation theory; Concentration; Horizontal integration; Vertical integration; Fordism; Post-Fordism
1. Introduction
In an era of economic globalization, tourism would appear to o!er a logical arena for corporate concentration. Its component sectors of transport, accommodation, entertainment, food and beverages are closely integrated through the consumption patterns of travelers. This paper examines the e!ectiveness of concentration within the tourism industry. Concentration in the paper is understood as consisting of two main processes: "rstly, horizontal integration, comprising horizontal mergers within each of tourism's component sectors (for example, between di!erent hotel companies); and, secondly, vertical integration, comprising mergers across these component sectors (for
Integrating the tourism industry: problems and strategies
George La!erty *, Anthony van Fossen
Graduate School of Management, University of Queensland, St Lucia, Queensland 4072, Australia
School of Humanities, Grizth University, Nathan, Queensland 4111, Australia
Received 6 September 1999; accepted 15 December 1999
Abstract
This paper addresses two interrelated issues in tourism development: horizontal integration within tourism's component sectors and attempts at vertical integration between them. The paper employs a conceptual framework adapted from regulation theory, to assess the dynamics of these processes, particularly in relation to airlines and hotels. Through examining some of the most important examples of both horizontal and vertical integration, it indicates how these have in#uenced contemporary strategies in the component sectors. The paper goes on to illustrate how trends towards Fordist organization within airlines have con#icted with post-Fordist trends in hotel operations, to undermine attempts at vertical integration across the tourism industry.
2000 Elsevier Science Ltd.
All rights reserved.
Keywords: Regulation theory; Concentration; Horizontal integration; Vertical integration; Fordism; Post-Fordism
1. Introduction
In an era of economic globalization, tourism would appear to o!er a logical arena for corporate concentration. Its component sectors of transport, accommodation, entertainment, food and beverages are closely integrated through the consumption patterns of travelers. This paper examines the e!ectiveness of concentration within the tourism industry. Concentration in the paper is understood as consisting of two main processes: "rstly, horizontal integration, comprising horizontal mergers within each of tourism's component sectors (for example, between di!erent hotel companies); and, secondly, vertical integration, comprising mergers across these component sectors (for