All ecological interrelationships are also ones that occur in an ecosystem. Integration is when business or organisations combine together. Channels of Distribution- the movement of products or services between organisations. advantage of horizontal integration is that it can increase the company’s market share. interrelationship between tourism and transportation 1. a brief introduction to tourism travel & tourism is a truly global economic activity – one which takes place in destinations across the world, from leading capital cities and smaller towns and villages in rural and coastal areas, to … 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 Retail Travel Agents is extremely important as it allows the Tour Operators to increase their sales as the Travel Agents are selling their packages to customers. Used for interrelationships in Travel & Tourism at Level 2. 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. Therefore, travel agents have a great sale in a price for tickets when they sell for the higher price to their customers. 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. 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. (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. Its the movement of products or services between organisations. Learn more. Author: Created by sjkaye. For example, they will include a range of 5* to 2* hotels and apartments. For example, in 2013. 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. 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. For example say you wanted to go on holiday abroad to Spain you would have to go to a tour operator to put all the packages together. 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. If the Tour Operators didn't work with the Travel Agents then there would be less people selling the packages so there would be less customers buying them. Which means they would not meet their aim of making a profit. One reason why Chester Zoo works with Grayway coaches and other coach companies all over the UK, is to make it easier for people to visit the attraction so they have more customers and make more money. By doing this companies say it gives them economies of scale and allows them to offer better prices to customers. An Interrelationship Diagram is a visual display that maps out the cause and effect links among complex, multivariable problems or desired outcomes. 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. It operates in 20 countries, serving more than 200 destinations. Click on any of these interrelationship diagrams included in SmartDraw and edit them: Interrelationship Diagram - 1. Task 2- Explain the interrelationship between hospitality, and travel and tourism organisations. There is horizontal integration and vertical integration. ​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 COACH COMPANY approaching the SERVICE STATION STAFF for a price to use its facilities en route. The new company, called TUI Travel, has annual revenues of more than £12bn and 27m customers. Interrelationship in Travel & Tourism. Created: Sep 5, 2009 | Updated: Nov 22, 2013. 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. In 2007, holiday companies Thomson and First Choice Holidays decided to merge and work together. Preview and details Files included (1) ppt, 887 KB. An interrelationship is when two or more business's work with and connect to each other. 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. Example of the two organizations: The two organizations are Bahrain International Airport (BAH) and Gulf Air. 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. Examples of organisations working together Tour operators & Travel agents These two sectors are connected because a travel agency sells holidays for a tour operator who will put together the whole package .e.g. Interrelationship Diagram Example: Work Place Interrelationship Diagram. in a deal that would create a new force in the European travel industry. surged almost 10% in the first morning, jumping 27p to 311p. 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. 5 2 customer reviews. Thomson bought out First Choice holidays. In daily life, every issue we confront with, is often part of an issue-bundle, when we dig deep. 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. 861 Words 4 Pages. 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. This is an example of horizontal integration as both businesses are on the same level and they work together. 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. There are two types of Integration: Alton Towers can be found on the chain of distribution as a Principle and Visit Britain can also be found on the chain of distribution as a Retailer. 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. ​​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. 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. Inter-dependency- when organisations depend on one another. This is an example of Horizontal Integration since both Thomsons and First Choice are tour operators. Hospitality organisations are some of the most important service providers to the travel and tourism industry. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. 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. You can now modify the Interrelationship Diagram example below using Visual Paradigm's online Interrelationship Diagram tool. When businesses/ organisations combine together. 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. Find the best essay sample on Interrelationship Between Hospitality And Travel Organisations Tourism Essay in our leading paper example online catalog! 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. 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. 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. 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. In addition to this, tourists boards such as Visit Britain support and promote tourism to domestic and inbound tourists. However smaller operators are forced out of business. Can not work alone, effective operation and visitor attractions. Most travel and tourism bussinesses have to deal with the public and make sure they are getting exactly what they want for their holiday so this means they may have to work with other businesses to provide this service such as a car hire company, as they could include it into their packages which will benifit the customer and also the businesses. 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. Chains of distribution are changing and businesses are starting to expand their area of operation, this is called Integration. Create your own unique website with customizable templates. 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. 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're also able to offer good deals and discounts which will also attract more customers as they're being offered cheaper prices. 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. Interrelate- when two or more businesses become connected to each other. 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. This may be backwards integration i.e a tour operator buys a hotel or forwards integration a tour operator buying a travel agency. 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. 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. For example, visitor attractions such as Alton Towers, rely on transport companies from all over the UK to bring customers to the attraction. interrelationship definition: 1. the way in which two or more things or people are connected and affect one another: 2. the way…. First Choice currently employs 16,000 people while TUI employs 33,000. * {{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. For example, Thomson offer a service which allows travellers to exchange their money into the currency of their destination. 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. In 2011 ‘TUI UK had 505 Thomson stores and 215 First Choice Stores’. 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, travel agents help airports and airline to find tourists and buy as many tickets as they can. Thomson Tour Operators benefits from the Thomson Airline relationship as they can be independent and create their own profit. The best way to understand interrelationship diagrams is to look at some examples of interrelationship diagrams. Interrelationship is how the business works together and who needs whom. Both Chester Zoo and Grayway Coaches are principles on the Chain of Distribution. Thomson Tour Operators benefits from working with the Travel Agents as they're able to easily promote their packages to customers first hand. Example- two travel agents buying another out like Manos tour operator was brought by another tour operator Thomas Cook. 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. 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. No single component of the travel and tourism industry can operate alone without relying on other parts of the industry. Lunn poly which is a worldwide travel agency sells holidays for Kuoni which is a tour operator that specializes in luxury holidays. 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. Businesses cannot be successful if they work in isolation and need other businesses to work along side them to make even more profit. Working Together & Interrelationships. If the tour operators didn't work with the ancillary services then they wouldn't have as many customers as it would be harder and more complicated for them to to get all the extra add on services which they need to get everything for their holiday whereas TUI offer services which will sort these add ons out for the customers. | Meaning, pronunciation, translations and examples 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. An example of vertical integration is when the tour operator Thomson merged with First Choice Holidays in September 2007. Interrelationship definition: An interrelationship is a close relationship between two or more things or people. The travel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. 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. 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. An example of an interrelationship is First Choice and Thomsons, these two organisations merged and became a part of Tui in 2007 it was said that ‘the company will be 51% owned by TUI and 49% by First Choice shareholders’. customers saved on average £501 when they booked a First Choice holiday through Holiday Hypermarket. The companies have until recently used different names for their travel agency , airlines and tour operators, but now they are power branding their companies so that customers can see whom they are booking with. An example is Thomas Cook and Tui own the Thomsonfly airline. Thomson Tour Operators benefits from the call centres as they're able to appeal to more people and sell more packages. Noun ()Connection or association; the condition of being related. For example; If Alton Towers were not linked with coaches, they wouldn't get as many customers to their parks. A chain of distribution shows how the products and services between different travel and tourism organisations move and how they all interrelate. 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. 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. Around a third of the planned savings came from combining the airline businesses. The merge produced cost savings of £100m a year, the bulk of which came from combining back office operations of the two businesses. 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. Interrelationship Diagram Examples. 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. Thomson Tour Operators benefits from the website as they're easily able to advertise and promote the packages. Read more. 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. 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. Loading... Save for later. Thomson Tour Operators benefit from working with Thomson Cruises as they're able to offer different deals to go along with the cruise packages. 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. Categories within interrelationships include the Chain of Distribution, Horizontal & Vertical Integration and Inter-dependencies. Numerous examples include the obvious one such as predator-prey interactions or the competition for resources. Create your own unique website with customizable templates. 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. 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’. 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. For example Alton Towers does not work by themselves as they work with other people. 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. Being the new Thomson Airways, they offer a wider choice of destinations as they now have more planes and crew, their current fleet. 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. There are two different types of integration depending on how a business decides to expand. 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. The Interrelationship Of The Travel, Tourism And The Tourism Industry. When companies are interdependent, it means that they are reliant on each other. An. The best way to understand Interrelationship Diagram is to look at some examples of Interrelationship Diagram and start drawing your own. 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. 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. 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