An example is Thomas Cook and Tui own the Thomsonfly airline. 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. When companies are interdependent, it means that they are reliant on each other. Thomson Tour Operators benefits from the call centres as they're able to appeal to more people and sell more packages. Preview. In travel and tourism one company can not survive on their own they have to work with other companies in order to get other custom. The best way to understand Interrelationship Diagram is to look at some examples of Interrelationship Diagram and start drawing your own. Integration- when businesses/organisations combine together. In integration companies merge their services and form a new legal entity to govern the operations. Thomson Tour Operators benefit from working with the accommodation providers as it allows TUI to create more appealing packages to different types of holiday makers. Working Together & Interrelationships. Example of the two organizations: The two organizations are Bahrain International Airport (BAH) and Gulf Air. Create your own unique website with customizable templates. 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. The relationship between Thomson Tour Operators and the coach transfer companies is important as it allows TUI customers to feel relaxed as they don't need to stress about transportation to their resort as the tour operators organise this with various local coach companies at the destination. surged almost 10% in the first morning, jumping 27p to 311p. If the Tour Operators didn't work with the website then less packages would be sold as technology is developing and more customers find it easier and more comfortable to use the internet to book their holidays so they're more likely to use a tour operator which has a website. Lunn poly which is a worldwide travel agency sells holidays for Kuoni which is a tour operator that specializes in luxury holidays. Create your own unique website with customizable templates. 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. 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. For example, travel agents help airports and airline to find tourists and buy as many tickets as they can. An Interrelationship Diagram is a visual display that maps out the cause and effect links among complex, multivariable problems or desired outcomes. Interrelate- when two or more businesses become connected to each other. interrelationship definition: 1. the way in which two or more things or people are connected and affect one another: 2. the way…. The relationship between Thomson Tour Operators and the Thomson website is also important as it allows customers to be sold Thomson packages from the comfort of their homes. Thomson Tour Operators benefit from working with the excursion companies as they're able to make more money by offering their customers add on deals which will allow them to enjoy their holiday even more and persuade them to book another holiday with TUI. By doing this companies say it gives them economies of scale and allows them to offer better prices to customers. Find the best essay sample on Interrelationship Between Hospitality And Travel Organisations Tourism Essay in our leading paper example online catalog! Chains of distribution are changing and businesses are starting to expand their area of operation, this is called Integration. The relationship between Thomson Tour Operators and additional ancillary services is important as it allows customers to buy additional services that they'll need when on holiday. However, customers can still book their holidays with First Choice as they have separate websites and travel agents but they will usually fly on a Thomson plane with a Thomson crew. 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. 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. * {{quote-magazine, date=2013-08-10, volume=408, issue=8848, magazine=(The Economist), author=Schumpeter , title= Cronies and capitols, passage=Policing the relationship between government and business in a free society is difficult. 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. This is an example of horizontal integration as both businesses are on the same level and they work together. 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. For example, they will include a range of 5* to 2* hotels and apartments. 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 new company is 51% owned by TUI and 49% by First Choice shareholders. Therefore, travel agents have a great sale in a price for tickets when they sell for the higher price to their customers. In addition to this, tourists boards such as Visit Britain support and promote tourism to domestic and inbound tourists. 5 2 customer reviews. 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 website as they're easily able to advertise and promote the packages. Channels of Distribution- the movement of products or services between organisations. A chain of distribution shows how the products and services between different travel and tourism organisations move and how they all interrelate. 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. However smaller operators are forced out of business. Another interrelationship is Thomson and First Choice these are both very rich and big company's.They work together to make sure they are making lots of profit, for example they rely on each other to make sure people get their flights and make sure everybody is happy. The relationship between Thomson Tour Operators and the First Choice holiday hypermarket is important as it allows customers to compare prices between Thomson/First Choice and other tour operators however, as First Choice work with the holiday hypermarket they will only advertise deals that show the Thomson tour operators having the better deals. Hospitality organisations are some of the most important service providers to the travel and tourism industry. You can now modify the Interrelationship Diagram example below using Visual Paradigm's online Interrelationship Diagram tool. Thomson Tour Operators benefit from working with the airport handling agents as their customers will get clarity knowing that their tour operator is handling their luggage rather than the airport making them gain the trust of their customers, which will more than likely persuade them to book with TUI again. Categories within interrelationships include the Chain of Distribution, Horizontal & Vertical Integration and Inter-dependencies. In 2011 ‘TUI UK had 505 Thomson stores and 215 First Choice Stores’. Free. Loading... Save for later. The relationship between Thomson Tour Operators and call centres is also important as it allows customers to book their holiday from the comfort of their homes but still having the re assurance of a travel agent. The merge produced cost savings of £100m a year, the bulk of which came from combining back office operations of the two businesses. No single component of the Travel and Tourism Industry can operate alone without relying on other parts of the industry. Task 2- Explain the interrelationship between hospitality, and travel and tourism organisations. The Interrelationship Of The Travel, Tourism And The Tourism Industry. Interrelationship Diagram Example: Work Place Interrelationship Diagram. Which means they would not meet their aim of making a profit. Chester Zoo work together with Grayway Coaches to transport visitors from all over the North West of England to their attraction. customers saved on average £501 when they booked a First Choice holiday through Holiday Hypermarket. The customers are always at the bottom of the chain. Read more. Interrelationship Diagram Examples. Businesses cannot be successful if they work in isolation and need other businesses to work along side them to make even more profit. For example; If Alton Towers were not linked with coaches, they wouldn't get as many customers to their parks. 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 Alton Towers does not work by themselves as they work with other people. in a deal that would create a new force in the European travel industry. Thomson Tour Operators benefits from the Thomson Airline relationship as they can be independent and create their own profit. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. Zoo and Grayway Coaches to transport visitors from all over the North West of England to parks. 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