Defenitions
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.
Independencies
organisations can work in isolation, each are dependent on the other for its effective operation. Visitor attractions rely on transport industry to bring customers to the attraction. Tourist boards (legal and regional) support and promote tourism to domestic and inbound visitors. InterrelateThis is when two or more businesses become connected to each other
Channels of distribution
this means the movement of products or services between organisations
Integration
The combination of of businesses or organisations.
interdependency
When organisations depend on one another
Chain of distribution
This is a way of getting a product to a costumer
Inter-relationships is where the public and private sector join together to make
the leisure industry better than it is. These sectors can interrelate to meet
the needs of the leisure industry.
Reasons why companies have inter- relationships is to provide a better service to their customers.
Receive greater protection for smaller, independent organisations influence government policy on important issues affecting the sector. Arrange discount packages and deals that will appeal to their customers raise awareness and promote the sector.
Example of a interrelationship between two sectors within the
travel and tourism industry
Tour operators & Travel agents These two sectors are connected because a travel agency sells holidays for a tour operator who will put together the whole package .e.g. Lunn poly which is a worldwide travel agency sells holidays for Kuoni which is a tour operator that specializes in luxury holidays.
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 is 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.
Integration
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 of 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.
Independencies
organisations can work in isolation, each are dependent on the other for its effective operation. Visitor attractions rely on transport industry to bring customers to the attraction. Tourist boards (legal and regional) support and promote tourism to domestic and inbound visitors. InterrelateThis is when two or more businesses become connected to each other
Channels of distribution
this means the movement of products or services between organisations
Integration
The combination of of businesses or organisations.
interdependency
When organisations depend on one another
Chain of distribution
This is a way of getting a product to a costumer
Inter-relationships is where the public and private sector join together to make
the leisure industry better than it is. These sectors can interrelate to meet
the needs of the leisure industry.
Reasons why companies have inter- relationships is to provide a better service to their customers.
Receive greater protection for smaller, independent organisations influence government policy on important issues affecting the sector. Arrange discount packages and deals that will appeal to their customers raise awareness and promote the sector.
Example of a interrelationship between two sectors within the
travel and tourism industry
Tour operators & Travel agents These two sectors are connected because a travel agency sells holidays for a tour operator who will put together the whole package .e.g. Lunn poly which is a worldwide travel agency sells holidays for Kuoni which is a tour operator that specializes in luxury holidays.
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 is 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.
Integration
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 of a holiday is that the business is able to control its costs and ensure that their customers receive a guaranteed high standard of service.