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Unit 9: Retail Travel Ops lesson 3

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chelsea loxton

on 21 November 2018

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Transcript of Unit 9: Retail Travel Ops lesson 3

Vertical Integration
What is this?
When two companies at different levels in the chain of distribution merge or are bought.
Find some examples of vertical integration

What are the advantages and disadvantages
Horizontal integration
Recap from last week:
Quiz individually
Know the Retail Travel Environment
Unit 9: Retail Travel Ops
Week 2

Links with other organsations
Travel agents will work on a commission basis so the relationships they have with other companies are key.
Co Op-
Thomas Cook

In pairs you work for this travel agency your job is to find out all the links with different organsations this company has and why.
This is when companies are bought or merged at the same level.
These relationships may take the form of trading agreements or may be part of the same trading group e.g. Thomson travel agents belong to TUI.
Hotels/Accommodation providers
Transport providers
Ancillary providers
Car hire companies
Tour operators
This can be forwards or backwards.
Major multiple travel agents in the UK are owned by vertically integrated companies.
Can someone draw the chain or distribution in the travel and tourism sector??
Principles (hotels, airlines and other transport)
Tour operators
Travel agencies
Agency Agreements
Travel agencies work on behalf of principles or tour operators.
An agency agreement will lay out the terms and conditions of a contract, including commission.
IF a travel agent stocks a tour operators brochure and sells it, there is an implied contract between them.
ABTA supplies the contract
See example
Everything is changing!
Find examples of :
A travel agent taking over another
A travel agent being bought by a tour operator
A travel agent going out of business
A new e-agent
Your task today is:
Pretend you are working in an office for ABTA your task today is in pairs:
To create a flyer about retail travel operations and what it is that includes:
A Description of all types of retail agents with examples.
Products and services each agent offers
Explain the importance of links and relationships between travel agents other organsations.
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