Interrelationships in the Travel and Tourism industry
No single component of the travel and tourism industry can operate alone without relying on other parts of the industry.
Travel and Tourism organisations have different roles to follow and below there is five main primary roles and responsibilities they have to follow:
ORGANISATIONAL AIMS
Hotels and airlines also have to meet organisational aims due to them being commercial, their aims are:
The reason that the Travel and Tourism organisation is alive is because they provide us with holidays and other services and products, this could be holiday insurance or foreign exchange etc. Some certain travel companies deal with different kinds of customers such tour operators and coach operators to organise.
No single component of the travel and tourism industry can operate alone without relying on other parts of the industry.
Travel and Tourism organisations have different roles to follow and below there is five main primary roles and responsibilities they have to follow:
- To meet the aims in the organisation
- To provide services and products
- To be responsible to stakeholders
- To be responsible environmentally and ethically
- To contribute to UK and international economies
ORGANISATIONAL AIMS
Hotels and airlines also have to meet organisational aims due to them being commercial, their aims are:
- To make a profit
- Increase market share
- Minimize sale revenue
- Ensure compliance with regulations (Health and Safety)
The reason that the Travel and Tourism organisation is alive is because they provide us with holidays and other services and products, this could be holiday insurance or foreign exchange etc. Some certain travel companies deal with different kinds of customers such tour operators and coach operators to organise.
Chain of distribution
Integration-
Until recently booking a holiday could mean having to deal with different businesses, which provided different parts of the package e.g. Coaches, Day trips. However, chain of distribution are changing and businesses are starting to expand their area of operation. There are 2 types:
HORIZONTAL INTEGRATION: where businesses at the same level in the chain of distribution merge together or are purchased by another. For example Manos which were specialised in holidays to Greece and Turkey, it was bought by MyTravel who belong to Thomas Cook.
VERTICAL INTEGRATION: where a business at one point on the chain of distribution purchases or acquires a business at a higher or lower level of the chain of distribution. For example, Thomson merged with First Choice holidays. Thomson are now a now part of TUI has a greater dominance on the high street and in the UK Travel Industry.
Until recently booking a holiday could mean having to deal with different businesses, which provided different parts of the package e.g. Coaches, Day trips. However, chain of distribution are changing and businesses are starting to expand their area of operation. There are 2 types:
HORIZONTAL INTEGRATION: where businesses at the same level in the chain of distribution merge together or are purchased by another. For example Manos which were specialised in holidays to Greece and Turkey, it was bought by MyTravel who belong to Thomas Cook.
VERTICAL INTEGRATION: where a business at one point on the chain of distribution purchases or acquires a business at a higher or lower level of the chain of distribution. For example, Thomson merged with First Choice holidays. Thomson are now a now part of TUI has a greater dominance on the high street and in the UK Travel Industry.
Interdependencies
Organisations cannot work in isolation, each are dependent on the other for its effective operation. Visitor Attractions rely on the transport industry to bring customers to the attraction e.g. British Airways enter into arrangements with one another so that they can all benefit from a single booking. If a customer has purchased a flight, they may also need accommodation or transport(Car).
Organisations cannot work in isolation, each are dependent on the other for its effective operation. Visitor Attractions rely on the transport industry to bring customers to the attraction e.g. British Airways enter into arrangements with one another so that they can all benefit from a single booking. If a customer has purchased a flight, they may also need accommodation or transport(Car).
Key Vocabulary
Interrelate: When two or more businesses become connected to each other.
Chain of Distribution: The movement of products or services between organisations.
Integration: When businesses/organisations combine together.
Interdependent: When organisations depend on one another.
Interrelate: When two or more businesses become connected to each other.
Chain of Distribution: The movement of products or services between organisations.
Integration: When businesses/organisations combine together.
Interdependent: When organisations depend on one another.