Travel and Tourism

Topics: Tourism, Tour operator, Vertical integration Pages: 7 (2249 words) Published: July 7, 2013
Unit 1- Task 3
Interrelationships in Travel and Tourism
Individual businesses must work in partnership with other organisations in order 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. If for example Thomas cook didn’t work with other hotels, insurance companies, company picks up on arrival, Thomas cook wouldn’t make any profits, as customers wouldn’t want to book a holiday with a company who don’t take out insurance, which if an accident happened they would have thousands to pay with no compensation. Also if customers were to book with a company who didn’t book with certain hotels, you could end up anywhere without any information about it. Whereas if Thomas cook have interrelationships with hotels they are more likely to be safer and nicer hotels, meaning customers trust Thomas cook knowing the hotel is good one. This increases profit due to more repeat purchases. E.g. a hotel may work with local tourism attractions and events to offer its guests discount admission. Tour operators use airlines and hotels when assembling their holidays, which are sold through travel agents. Independencies and interrelationships

Being interdependent means relying on others. We all rely on others for help and support throughout our lives. The success of tour operators and the number of holidays they sell depends very much on how well travel agents are promoting the products and services of the tour operator and how successful they are at persuading customers to purchase particular holidays. If the travel agent is not selling holidays, then neither is the tour operator. This illustrates the interdependency of these two sectors. Another example is visitor attractions experiencing a downturn in the number of visitors due to problems with transport systems and accessibility.

The different components of the travel and tourism sector cannot work in isolation. They each rely on others for success, e.g. a good flight on time, and going to a good hotel. Tour operators work together with travel agents and airlines. Nowadays the chain of distribution often links directly between the suppliers i.e. accommodation provider and airline to the customer, missing out the travel agent or tour operator. This is becoming more common as people get more confident about booking online. Some tour operators like Portland sell direct to customers and miss out the travel agent. Interdependencies:

Some relationships are often optional for example during a one of promotion, whereas interdependencies are where one of the organisations is dependent on the other for its business. For example Ibiza airport and the tourism industry in Ibiza is interdependent on the airlines which fly into the island in order for them to bring passengers who then spend their money, of the airport had no airlines then there wouldn’t be a need for an airport. Another example could be where a tourist office like Chester is advertising an attraction. The attraction relies heavily on the tourist office to promote and advertise their attraction, which will therefore lead to more customers purchasing tickets etc to go to the attraction e.g. chester zoo. Examples of interrelations

Hotels e.g. the Hilton hotels, airlines etc easy jetinternet tour operator/travel agent e.g. Expedia customer The places where people stay are the hotel. If hotels didn’t have interrelations with airlines, they wouldn’t have any customers. Hotels rely on customers traveling to the destination where the hotel is through the airlines which for example could be easy jet. The airlines then rely on internet purchases and travel agents to receive bookings with their airline. If bookings are not taken online or through travel agents the airlines won’t be receiving passengers for the flights, and the hotel will not be receiving customers to stay at their hotel. All of these people rely...
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