surged almost 10% in the first morning, jumping 27p to 311p. Integration- when businesses/organisations combine together. Task 2- Explain the interrelationship between hospitality, and travel and tourism organisations. For P3 learners need to review the different types of interrelationships ie chains of distribution how travel products are distributed through the levels integration including both horizontal and vertical and interdependencies how different organisations rely on each other eg a tour operator has to contract rooms from a hotel. For example, in 2013. In 2007, holiday companies Thomson and First Choice Holidays decided to merge and work together. advantage of horizontal integration is that it can increase the company’s market share. If the tour operators didn't work with the airline then TUI would have to pay another airline to transport their customers making them loose money instead of making money. A chain of distribution shows how the products and services between different travel and tourism organisations move and how they all interrelate. 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. An interrelationship is when two or more business's work with and connect to each other. The relationship between Thomson Tour Operators and insurance companies is also important as it allows TUI to offer extra add ons to their customers to ensure that they're safe abroad. Preview and details Files included (1) ppt, 887 KB. This enabled Thomson (which is now part of the TUI group) to have greater dominance on the high street, online and in the UK travel industry as they now have more high street shops, employees and customers. Example of the two organizations: The two organizations are Bahrain International Airport (BAH) and Gulf Air. In 2011 ‘TUI UK had 505 Thomson stores and 215 First Choice Stores’. When companies are interdependent, it means that they are reliant on each other. Find the best essay sample on Interrelationship Between Hospitality And Travel Organisations Tourism Essay in our leading paper example online catalog! One example of an interrelationship with Alton Towers would be coach companies, as they bring customers to and from Alton Towers on a daily basis as it can be difficult for people to get to due to the location as it is not really ideal and can be hard to get to, especially for people who do not drive and also educational groups. Step 1: Identify and define the Issue or Problem → So in the very first steps, we need to Define the Problem or identifying the issue. An interrelationship is when a business works with other companies for example The British Museum in London has links with lots of components such as shops, cafe's and transport in which they have an interrelationships with without these the company wouldn't be successful as they wouldn't be able to attract people coming from long distances which would cause people not to visit the museum. Create your own unique website with customizable templates. However smaller operators are forced out of business. Chester Zoo work together with Grayway Coaches to transport visitors from all over the North West of England to their attraction. Noun ()Connection or association; the condition of being related. 861 Words 4 Pages. This enabled Thomson (which is now part of the TUI group) to have greater dominance on the high street, online and in the UK travel industry as they now have more high street shops, employees and customers. If the tour operators didn't work with the airport handling agents then their passengers wouldn't feel at ease as they wouldn't know who were looking after and transferring their luggage to the aircraft. Horizontal integration is when two or more business which are on the same level on the chain of distribution merge together or are purchased by another. There is horizontal integration and vertical integration. Interrelationship in Travel & Tourism. Click on any of these interrelationship diagrams included in SmartDraw and edit them: Interrelationship Diagram - 1. 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. Which means they would not meet their aim of making a profit. interrelationship definition: 1. the way in which two or more things or people are connected and affect one another: 2. the way…. An example is Thomas Cook and Tui own the Thomsonfly airline. 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. For example TUI group combine the services with IHG for efficient use of available resources like accommodation, transportation services, food and beverages to the customer. Loading... Save for later. 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. For example, cruise and stay packages offer customers the chance to visit different areas of a country for a week and then stay over at a popular resort for another week. ​​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. For example, travel agents help airports and airline to find tourists and buy as many tickets as they can. The new company is 51% owned by TUI and 49% by First Choice shareholders. 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. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. 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. Interrelationship Diagram Example: Work Place Interrelationship Diagram. 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 call centres then they would have less customers as some people are unable to leave their homes so they cannot see a travel agent or are not comfortable using the internet to book their holiday which means they're more likely to use a tour operator which offers call centre facilities. Categories within interrelationships include the Chain of Distribution, Horizontal & Vertical Integration and Inter-dependencies. They're also able to offer good deals and discounts which will also attract more customers as they're being offered cheaper prices. 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. Around a third of the planned savings came from combining the airline businesses. When businesses/ organisations combine together. ​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. The deal brought together two of the best-known names in the UK travel industry and came just weeks after rivals MyTravel and Thomas Cook agreed merger terms. 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. 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’. The best way to understand Interrelationship Diagram is to look at some examples of Interrelationship Diagram and start drawing your own. 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. The new company, called TUI Travel, has annual revenues of more than £12bn and 27m customers. Interrelationship definition: An interrelationship is a close relationship between two or more things or people. customers saved on average £501 when they booked a First Choice holiday through Holiday Hypermarket. For example, visitor attractions such as Alton Towers, rely on transport companies from all over the UK to bring customers to the attraction. An. It operates in 20 countries, serving more than 200 destinations. Being the new Thomson Airways, they offer a wider choice of destinations as they now have more planes and crew, their current fleet. No single component of the Travel and Tourism Industry can operate alone without relying on other parts of the industry. Read more. Example of an Interrelationship Diagram → For a Better understanding of the Interrelationship_Diagram, we are taking one example and we will refer to the above-mentioned steps for making the diagram. For example Alton Towers does not work by themselves as they work with other people. Thomson Tour Operators benefit from working with the insurance companies as they're able to offer deals within their packages to ensure that their customers feel safe when they're on holiday which will make them more likely to re book with a TUI company. Businesses cannot be successful if they work in isolation and need other businesses to work along side them to make even more profit. This may be backwards integration i.e a tour operator buys a hotel or forwards integration a tour operator buying a travel agency. Chains of distribution are changing and businesses are starting to expand their area of operation, this is called Integration. 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