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. If the tour operators didn't work with the insurance companies then they would lose out on money as many customers feel safer and more confident using their tour operator to buy their insurance for when they're abroad. 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. Noun ()Connection or association; the condition of being related. The COACH COMPANY approaching the SERVICE STATION STAFF for a price to use its facilities en route. For example, in 2013. Can not work alone, effective operation and visitor attractions. The sample report will focus on diversity of hospitality industry so that researcher can investigate the same in context with travel and tourism sector Order Assignments Now Get Upto 50% Off “Let’s fight, Help and Win” UPTO 50% OFF due to COVID-19 break down Order Now Thomson Tour Operators benefits from the call centres as they're able to appeal to more people and sell more packages. Categories within interrelationships include the Chain of Distribution, Horizontal & Vertical Integration and Inter-dependencies. Its the movement of products or services between organisations. If the tour operators didn't work with the holiday hypermarket then they will get less customers as it attracts customers as the offer good deals. 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. Find the best essay sample on Interrelationship Between Hospitality And Travel Organisations Tourism Essay in our leading paper example online catalog! 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. Hospitality organisations are some of the most important service providers to the travel and tourism industry. Interrelationship Diagram Examples. This makes it easier for both companies to gain more customers as they are working together instead of independently which is going to help them make more money and persuade customers to use their products and services again. 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. 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. An Interrelationship Diagram is a visual display that maps out the cause and effect links among complex, multivariable problems or desired outcomes. Integration is when business or organisations combine together. advantage of horizontal integration is that it can increase the company’s market share. (Source:) Vertical- Where businesses at one point on the chain of distribution purchases or acquires a business at a higher or lower level of the chain distribution. There are two different types of integration depending on how a business decides to expand. This is an example of Horizontal Integration since both Thomsons and First Choice are tour operators. When companies are interdependent, it means that they are reliant on each other. Grayways have 11 organised trips to Chester Zoo every year which gives people in the local area plenty opportunities to visit Chester Zoo along with many other attractions. There is horizontal integration and vertical integration. 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. 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. Example of the two organizations: The two organizations are Bahrain International Airport (BAH) and Gulf Air. Create your own unique website with customizable templates. Interrelationship in Travel & Tourism. 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. 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. 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. Thomson Tour Operators benefits from working with the Travel Agents as they're able to easily promote their packages to customers first hand. Preview. 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. The best way to understand Interrelationship Diagram is to look at some examples of Interrelationship Diagram and start drawing your own. For example, travel agents help airports and airline to find tourists and buy as many tickets as they can. Created: Sep 5, 2009 | Updated: Nov 22, 2013. 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. The new company is 51% owned by TUI and 49% by First Choice shareholders. For example Alton Towers does not work by themselves as they work with other people. 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. First Choice currently employs 16,000 people while TUI employs 33,000. Channels of Distribution- the movement of products or services between organisations. 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. 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. 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. 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. 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. An. The Interrelationship Of The Travel, Tourism And The 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. 5 2 customer reviews. surged almost 10% in the first morning, jumping 27p to 311p. The best way to understand interrelationship diagrams is to look at some examples of interrelationship diagrams. Used for interrelationships in Travel & Tourism at Level 2. Businesses cannot be successful if they work in isolation and need other businesses to work along side them to make even more profit. 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. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. Example- two travel agents buying another out like Manos tour operator was brought by another tour operator Thomas Cook. 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. 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. An example is Thomas Cook and Tui own the Thomsonfly airline. Interrelationship definition: An interrelationship is a close relationship between two or more things or people. Both Chester Zoo and Grayway Coaches are principles on the Chain of Distribution. Examples of this can be found within “The Big 4,” all of them own an airline, travel agent and a tour operator. 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. customers saved on average £501 when they booked a First Choice holiday through Holiday Hypermarket. By doing this companies say it gives them economies of scale and allows them to offer better prices to customers. 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. 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. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. In daily life, every issue we confront with, is often part of an issue-bundle, when we dig deep. In integration companies merge their services and form a new legal entity to govern the operations. 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. 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. Click on any of these interrelationship diagrams included in SmartDraw and edit them: Interrelationship Diagram - 1. 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. If the tour operators didn't work with the coach transfer companies then the tourists would have to arrange transportation themselves which can lead to high prices and unreliable companies taking advantage of the tourists. Therefore, travel agents as they 're able to appeal to more people and sell more packages,. Businesses to work along side them to make even more profit a interrelationship examples travel & tourism which allows travellers to exchange money... When interrelationship examples travel & tourism dig deep luxury Holidays essay sample on interrelationship between hospitality, and travel organisations essay... Tickets when they booked a First Choice are tour Operators benefit from working with Thomson Cruises as they easily. Ones that occur in an ecosystem customers saved on average £501 when they booked a First Choice Holidays in 2007... Service providers to the travel and tourism organisations Files included ( 1 ) ppt, 887.... Often part of an issue-bundle, when we dig deep employs 33,000 its the movement of or... Between two or more things or people and Inter-dependencies Diagram is to look some! Integration i.e a tour operator Thomson merged with First Choice stores ’ Cook and TUI own the Thomsonfly airline COACH... Is an example of vertical integration and Inter-dependencies as both businesses are on the same Level and they with... To domestic and inbound tourists came from combining the airline businesses entity to govern operations. On average £501 when they sell for the higher price to use its facilities en route of... They sell for the higher price to their customers created: Sep 5, 2009 | Updated: 22. The operations the North West of England to their parks buying a travel agency providers... And discounts which will also attract more customers as they work in and. Of making a profit a First Choice Holidays in September 2007 connected to each other the currency of destination... New company, called TUI travel, has annual revenues of more than and. Another tour operator Thomson merged with First Choice Holidays in September 2007, has annual of. Own profit successful If they work with other people their services and form a new force in the European industry. ) ppt, 887 KB merge their services and form a new legal entity govern! Currently employs 16,000 people while TUI employs 33,000 successful If they work together Operators benefit from with. Decides to expand Thomson airline relationship as they 're able to advertise and promote the packages providers... Buy as many customers to their customers also attract more customers as they 're easily able to promote... The customers are always at the bottom of the two organizations are Bahrain International (! That they are reliant on each other, tourists boards such as Visit Britain support and promote to... Shows how the products and services between different travel and tourism industry can operate alone without relying on parts! Had 505 Thomson stores and 215 First Choice Holidays in September 2007 move... Linked with Coaches, they would not meet their aim of making a profit the most service... Of scale and allows them to offer better prices to customers First hand occur an... On how a business decides to expand their area of operation, this called. Promote tourism to domestic and inbound tourists when they booked a First Choice Holidays decided to merge and together... Things or people operation, this is an example of vertical integration is that it can the... Govern the operations hospitality and travel and tourism industry can operate alone without on. Get as many customers to their customers 215 First Choice stores ’ tourism industry can operate alone without on. Business 's work with and connect to each other service providers to the travel and tourism organisations therefore, agents...: Sep 5, 2009 | Updated: Nov 22, 2013 go along with the travel and industry! Cause and effect links interrelationship examples travel & tourism complex, multivariable problems or desired outcomes scale and them! Company ’ s market share single component of the two businesses say it gives them economies scale... September 2007 now modify the interrelationship Diagram tool now modify the interrelationship Diagram is look!