Many airlines rely on tour operators and travel agents to
sell seats on their aircraft. Even if the tour operator does not own the
airline they rely on tour operator to use their services in their holiday
packages. Full integrated chains of distribution; this is where the chain is
owned by the same company.
Simple chain
Self-catering holidays such as cottages in the Lake District are sold through brochures and organisations that promote the Lake District as a destination for a holiday. The properties appear in brochure and bookings are made via the organisation which has promoted the accommodation.
Intergration
Until recently booking a holiday could mean having to deal with different businesses, however chains of distribution are changing and businesses are starting to expand their area of operation. This process is known as integration. The advantage of one business offering all elements o a holiday is that the business is able to control its costs and ensure that their customers receive a guaranteed high standard of service.
Horizontal Integration
This is where businesses at the same level in the chain of distribution merge together or are purchased by another.
Vertical Integration
Where a business at one point of the chain of distribution purchases or acquires a business at a higher or lower level of the distribution.
Interpendencies
Organisations can work in isolation, each are dependent on the other for its effective operation. Visitor attractions rely on transportindustry to bring customers to the attraction. Tourist boards (legal and regional) support and promote tourism to domestic and inbound visitors.
Simple chain
Self-catering holidays such as cottages in the Lake District are sold through brochures and organisations that promote the Lake District as a destination for a holiday. The properties appear in brochure and bookings are made via the organisation which has promoted the accommodation.
Intergration
Until recently booking a holiday could mean having to deal with different businesses, however chains of distribution are changing and businesses are starting to expand their area of operation. This process is known as integration. The advantage of one business offering all elements o a holiday is that the business is able to control its costs and ensure that their customers receive a guaranteed high standard of service.
Horizontal Integration
This is where businesses at the same level in the chain of distribution merge together or are purchased by another.
Vertical Integration
Where a business at one point of the chain of distribution purchases or acquires a business at a higher or lower level of the distribution.
Interpendencies
Organisations can work in isolation, each are dependent on the other for its effective operation. Visitor attractions rely on transportindustry to bring customers to the attraction. Tourist boards (legal and regional) support and promote tourism to domestic and inbound visitors.