‘Interview’ Horizontal / Vertical Integration Understanding Integration and why it takes place

Chain of Distribution Explain? AccommodationAirline *Another Principle e.g. coach transfers, tour guide, ancillary Tour Operator Travel Agent Consumer

Chain of Distribution Scenario (In Groups) What is your 2x Tour Operators / Travel Agency / Airline called? What products and services do you offer? Aims and Objectives of your organisation? How will you be successful? How will you stay ahead of the competition? What methods do you use to sell your holidays?

Chain of Distribution What is integration? AccommodationAirline *Another Principle e.g. coach transfers, tour guide, ancillary Tour Operator Travel Agent Consumer

Integration Swap seats (Forwards / Backwards Integration) – Tour Operator 1 / Airline – Tour Operator 2 / Travel Agency – Explain in your group what positives and negatives are?

Integration Now all move to the centre of the room. Tour Operator 1 and Tour Operator 2 you are now one big organisations What are the Positives and Negatives

Check out Padlet for more real life examples Horizontal Integration 2007 MyTravel – Thomas Cook Become Thomas Cook group 2007 TUI- First Choice – Now first choice has been allocated as the brand that specialises in All Inclusive family holidays Vertical Integration 2000 JMC was integrated part of Thomas Cook then rebranded in 2002 as Thomas Cook Airways 1972 Thomson took over Lunn Poly and rebranded in 2004

Brand Power Top 2 Tour Operators (customers satisfaction) – Trailfinders 92% Tailor Made Holidays – InnTravel 89% Walking holidays specialist Worst Rated Tour Operators – Olympic Holidays 62% Mass Market Holidays – Thomas Cook 60% Mass Market Holidays