Tourism: Marketing and Tour Operator

In the tripism industry, travel agents, duty good turn operators etcetera atomic number 18 considered the intermediaries (distributors). Their main task is to bring purchasers and sellers in the field unitedly and reduce effect and supply/ give birthership costs between buyer and seller, instead of completely eliminating an intermediary (such as a distributor). Benefits of term of enlistmentism Intermediaries? For the maker * they are able to sell in bulk (for example hotels) and magnate be able to transfer a certain risk to the * tour operator depending on the contracts made * reduce promotion costsFor the Consumer * avoids search and transaction costs (by purchasing inclusive tour) * gain from specialist knowledge of tour operator * often gain most from lower prices Disadvantages of Tourism Intermediaries? The employment of intermediaries by producers, such as hotels, will result in the spill of margins and in the loss of influence in the distribution process. ?For the consumer choice whitethorn be reduced and prices increase, especially with the further concentration and consolidation of tourism intermediaries. 1. 2 Integration, consolidation and concentrationThe term integrating is an economic concept to disembowel habitusal linking arrangements between angiotensin converting enzyme makeup and another. (Cooper Fletcher 2005) Horizontal integrating? This occurs when ii tour operator or two travel agents amalgamate, either through and through merger or takeover. The main reason is to ensure the extended geographic spread of outlets to ensure representation in al regions ? Vertical desegregation? A certain linking occurs along the production process. For example airlines establish their own tour operating company (British Airways. But the most common form of vertical integration within tourism intermediaries is when a interlocutor/ tour operator purchase or merge with a travel role chain. ?One good example of wide range of integrated ac tivities is the cut conglomerate Groupe Accor 3. 4 Integration strategies as means of expansion strategies Tour middleman or tour operator can strengthen their commercialise position by integration. Integration takes place whencompanies merge or one company buys another. As it was outlined in Chapter 1 already, there are two main forms of integration 1.Vertical integration It takes place when two companies of various aims on the distribution chain merge. Examples could be, when a supplier merges with a wholesaler/tour operator or a tour wholesaler merges with a retail agent.? We speak of backward vertical integration, when a wholesaler merges with or buys an airline or with a hotel. With this move a greater subdue over the source of supply is desired. ?We speak of forward vertical integration, when a tour wholesaler merges or buys a travel agency. In this slip of paper greater control over the distribution network is wanted.? Lubbe 2000) 2. Horizontal integration It means that tour wholesalers/ tour operator merges on the same level of distribution. For example a tour wholesaler buys another tour wholesaler to improve their market share and reduce competition. In general, horizontal integration always leads to economics of scale, in functions such as human resources, purchasing, and hence to cost savings and price reductions. Through cost savings an organisation may become more cost effective, allowing them to develop a bankrupt range of products and to achieve better quality control.? (Lubbe 2000)