Vertical IntegrationVertical Integration

Travel Agents/Tour Travel Agents/Tour Operators/AirlinesOperators/Airlines

What is VIWhat is VI

Vertical integration is where different Vertical integration is where different links in the distribution chain are links in the distribution chain are connected by either part or full connected by either part or full ownership.ownership.

This means where a travel agent and This means where a travel agent and a tour operator and or an airline are a tour operator and or an airline are part of the same group.part of the same group.

A good example of this is Thomas A good example of this is Thomas CookCook

Thomas CookThomas Cook

Go on link below.Go on link below. Thomas Cook | holidays, flights, tours, city Thomas Cook | holidays, flights, tours, city

breaks, experiences, car hire and all other breaks, experiences, car hire and all other holiday essentialsholiday essentials

Write down the following:Write down the following:1.How many people work for TC?1.How many people work for TC?2.Draw a diagram showing the organisation 2.Draw a diagram showing the organisation

of TCof TC3 Go on Google and locate branches in and 3 Go on Google and locate branches in and

around Stocktonaround Stockton4Who have TC just merged with?4Who have TC just merged with?

Other groupingsOther groupings

Thompson- Travel agents, airline and Thompson- Travel agents, airline and tour operatortour operator

Read article below. Why might Read article below. Why might mergers of travel companies be a mergers of travel companies be a bad thing for consumers?bad thing for consumers?

Thomson Holidays Owner To Lose 10Thomson Holidays Owner To Lose 100 Travel Agent Shops |Sky 0 Travel Agent Shops |Sky News|BusinessNews|Business

The competition The competition commissioncommission

What does it do?What does it do? Competition Commission - Our roleCompetition Commission - Our role Why would this effect the travel Why would this effect the travel

industry?industry?