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The relationship between Thomson Tour Operators and accommodation providers is extremely important as it allows TUI to sell packages offering a wide range of different accommodations to their customers. Thomson Tour Operators benefits from the holiday hypermarket relationship as they're able to easily advertise their deals to attract most customers to make more profit. Therefore, travel agents have a great sale in a price for tickets when they sell for the higher price to their customers. Chains of distribution are changing and businesses are starting to expand their area of operation, this is called Integration. customers saved on average £501 when they booked a First Choice holiday through Holiday Hypermarket. Example- two travel agents buying another out like Manos tour operator was brought by another tour operator Thomas Cook. Around a third of the planned savings came from combining the airline businesses. Inter-dependency- when organisations depend on one another. An example of an interrelationship is First Choice and Thomsons, these two organisations merged and became Tui in 2007 it was said that ‘the company will be 51% owned by TUI and 49% by First Choice shareholders’. Both Chester Zoo and Grayway Coaches are principles on the Chain of Distribution. ​Visit Britain is an independencies and they like to help people to get the information that they need so that more people will use them for help. Author: Created by sjkaye. An Interrelationship Diagram is a visual display that maps out the cause and effect links among complex, multivariable problems or desired outcomes. For example say you wanted to go on holiday abroad to Spain you would have to go to a tour operator to put all the packages together. The relationship between Thomson Tour Operators and Airport Handling Agents is also important as it allows TUI to ensure passenger's luggage and belongings are safe and well looked after as they work with companies such as Swissport within the various airports. If the tour operators didn't work with Thomson Cruises then they would be missing an opportunity to appeal to the growing number of people who now prefer to cruise than have a normal holiday. Thomson Tour Operators benefits from the Thomson Airline relationship as they can be independent and create their own profit. The relationship between Thomson Tour Operators and Thomson Cruises is also extremely important as it allows TUI to appeal to a new type of traveller by offering a wide range of different itineraries to various destinations. An Interrelationship is two Businesses who use each other to benefit their services and most importantly increase their income, for example a Organisation like Centre Parks will employ a proffesional catering company to provide delicious food, this gives the impression that centre parks provide exquisite food and the catering company get lots of well paid work through the popular holiday provider. If the tour operators didn't work with the excursion companies they wouldn't be making as much money as the holiday makers would use local companies which could be unreliable, unsafe and at higher prices. One reason why Chester Zoo works with Grayway coaches and other coach companies all over the UK, is to make it easier for people to visit the attraction so they have more customers and make more money. Thomson Tour Operators benefit from working with the coach transfer companies as it allows tourists to start their holiday straight away as they don't need to worry about how they will get to their destination which will make it more likely for them to book with TUI again. The COACH COMPANY approaching the SERVICE STATION STAFF for a price to use its facilities en route. interrelationship definition: 1. the way in which two or more things or people are connected and affect one another: 2. the way…. Click on any of these interrelationship diagrams included in SmartDraw and edit them: Interrelationship Diagram - 1. The Interrelationship Of The Travel, Tourism And The Tourism Industry. There are two types of Integration: Alton Towers can be found on the chain of distribution as a Principle and Visit Britain can also be found on the chain of distribution as a Retailer. These are examples of  interdependent companies as Chester Zoo rely on Grayways to bring customers from the North West to their attraction and Grayways rely on Chester Zoo to offer deals for coach trips so they're able to organise the excursions. First Choice currently employs 16,000 people while TUI employs 33,000. In addition, the website is also able to offer deals for various destinations and packages which the Tour Operators which may also be in competition with those offered by the travel agents. The relationship between Thomson Tour Operators and the Thomson Airlines is extremely important as TUI are able to use their own fleet of aircraft to transport their customers to a wide number of destinations without relying on other companies. For example, they will include a range of 5* to 2* hotels and apartments. In integration companies merge their services and form a new legal entity to govern the operations. ​​The relationship between Thomson Tour Operators and excursion companies is also important as it allows customers to book a variety of different trips and excursions which they know will be reliable and at a good price. Hospitality organisations are some of the most important service providers to the travel and tourism industry. Vertical integration is when businesses at one point in the chain purchases a business at a higher or lower level of the chain of distribution. In addition to this, the Tour Operators also sell packages alongside the holidays to offer the customer something extra with their holiday which will also attract more customers. Channels of Distribution- the movement of products or services between organisations. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. interrelationship between tourism and transportation 1. a brief introduction to tourism travel & tourism is a truly global economic activity – one which takes place in destinations across the world, from leading capital cities and smaller towns and villages in rural and coastal areas, to … This is an example of horizontal integration as both businesses are on the same level and they work together. Whether for leisure or for business, people do spend a significant amount of time at their hotel, particularly if it is of a luxury status. Create your own unique website with customizable templates. Thomson Tour Operators benefits from the website as they're easily able to advertise and promote the packages. There are two different types of integration depending on how a business decides to expand. The examples of interrelationships in that example are: The SCHOOL approaching the COACH COMPANY for its services The COACH COMPANY approaching the NATURE RESERVE STAFF for a price for tickets to the reserve for the pupils. No single component of the travel and tourism industry can operate alone without relying on other parts of the industry. A chain of distribution shows how the products and services between different travel and tourism organisations move and how they all interrelate. advantage of horizontal integration is that it can increase the company’s market share. There is horizontal integration and vertical integration. In 2007, holiday companies Thomson and First Choice Holidays decided to merge and work together. For example Alton Towers does not work by themselves as they work with other people. The companies have until recently used different names for their travel agency , airlines and tour operators, but now they are power branding their companies so that customers can see whom they are booking with. Thomson bought out First Choice holidays. Working Together & Interrelationships. No single component of the Travel and Tourism Industry can operate alone without relying on other parts of the industry. 5 2 customer reviews. Preview. Examples of organisations working together 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. Example of the two organizations: The two organizations are Bahrain International Airport (BAH) and Gulf Air. If the tour operators didn't work with the accommodation providers then they wouldn't be able to offer a wide variety of different packages. Most travel and tourism bussinesses have to deal with the public and make sure they are getting exactly what they want for their holiday so this means they may have to work with other businesses to provide this service such as a car hire company, as they could include it into their packages which will benifit the customer and also the businesses. For example, Thomson offer a service which allows travellers to exchange their money into the currency of their destination. Thomson Tour Operators benefit from working with the ancillary services as they create more trust between the customer and the tour operator as they're making it easier for the customer to get everything they need for their holiday as it is all offered in the same place. However smaller operators are forced out of business. Examples of this can be found within “The Big 4,” all of them own an airline, travel agent and a tour operator. Interrelationship is how the business works together and who needs whom. Lunn poly which is a worldwide travel agency sells holidays for Kuoni which is a tour operator that specializes in luxury holidays. This is an example of vertical integration as the companies are on different levels on the Chain of Distribution and combined to create one single travel company. Thomson Tour Operators benefits from the call centres as they're able to appeal to more people and sell more packages. They do this because no single component in the travel and tourism industry can operate alone and they rely on other parts of the industry. With the linked connections, you can better analyze the cause-and-effect relationships that exist among all factors of a complex situation, which, ultimately, allowing you to develop an effective solution to the problem. Can not work alone, effective operation and visitor attractions. 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