Examples Of Vertical Integration

The second type of integration is vertical integration. This is when a company owns different production levels on the chain of distribution. When a company which is an airline owns hotels and owns a travel agency they would be vertically integrated because they own different sections of the chain of distribution. Companies tend to become vertically integrated because it gives them more control and power over their production. When the company owns a few of the sections on the chain of distribution, they will be the main source for customers when looking to book a holiday package. An example of a company which has vertically integrated is Thomas Cook. They own airlines, hotels, tour operators and a travel agency, making them a popular holiday company.

Interdependencies

“Being independent means independent sectors relying on each other. There are many areas that overlap in the travel and tourism industry and many organisations depend directly on the activities and success of others.”
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Alton towers is a tourist attraction as it attracts a lot of inbound tourists as well as domestic tourists. Therefore one of their main aims would be to have a high standard and to make sure that all customers are pleased with their experience. To help all customers and make sure they are have the most enjoyable experience without hassle and to also encourage them to return, Alton Towers works with transport companies. This is also to so increase the amount of visitors that go there. This also benefits the transport companies as they are also getting business and profit through these visitors using their transport services. Another interdependency is the tourists elopement and promotion. This is greatly depended upon by many attractions and many holiday companies as it provide information for customers and encourages customer to visit certain attractions