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BTEC - Unit 1 - Interdependency in the Travel & Tourism sectors

Grade 11 BTEC
by

Stephanie Seehaus

on 10 September 2014

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Transcript of BTEC - Unit 1 - Interdependency in the Travel & Tourism sectors

Interdependency in the Travel & Tourism sectors
Objectives
To fully understand and be able to apply in context:

Relationships and interdependencies between sectors in the travel & tourism industry
Integration in the sector and the impact on employees and customers

Interdependency
Being independent means independent sectors relying on each other
There are many areas of overlap in the T & T industry and many organisations depend directly on the activities and success of others
For example the success of tour operators and the number of holidays they sell depends on how well travel agents are promoting their products and services
Point to consider: different sectors may have different aims and objectives therefore conflict may occur!

Example
A downturn in the number of visitors to a visitor attraction could be due to its dependency on transport systems and accessibility that are having issues/problems such as delays or closed roads due to work being carried out.

Use your sector tables to identify other examples of interdependency.
EG: How may a travel agent’s reputation be dependent on the service provided by an airline?

Task
Case Study
A family of four are looking for a value for money 2 week package holiday to Orlando, Florida. Explain the interdependency for this holiday between the following sectors (P3):




Travel agency and tour operator
Tour operator and airline provider
Travel agency and transfer provider
Accommodation and visitor attractions
Travel agents and support services

Sector integration
To gain more control over the whole chain of the holiday experience, several organisations have integrated:

Mergers - voluntary joining together of one or more businesses into a new entity

Acquisition – when one business acquires or takes over another.

Alliances/Diversification - when a business expands into allied areas of operations in order to offer a wider range of products and services

Horizontal Integration
Definition – when a business purchases or merges with a business competitor at the same level on the supply chain

Examples:
Thomson and First Choice tour operating businesses merged using horizontal integration

Easy Jet acquired Go Airways back in 2005


Vertical Integration
Def’n - when a business purchases or merges with another business that is higher (forward integration) or lower (backward integration) on the supply chain

Examples?
EXAMPLE
Alliance/Diversification
when a business expands into allied areas of operations in order to offer a wider range of products and services

Farmer Teds developed its farm buildings and under utilised fields to diversify into an animal education centre, soft play centre, eating facility and outdoor activity area
Full transcript