Collaboration in Travel and Tourism Industry: A Case Study of Thomas Cook British Airways

This report discusses the sustainable competitive benefits of collaboration in the travel and tourism industry, using Thomas Cook British Airways as a case study. It covers the chain of distribution of tourism and travel products, horizontal and vertical integration, interdependencies, and the role of Alton Towers and Hilton Hotel. The report concludes with recommendations for marketing and promotion.

Running Head: TRAVEL AND TOURISM
TRAVEL AND TOURISM
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Authors Note

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Executive summary
The report highlights sustainable competitive benefits that take place when the organization
implements values by collaborating with other companies for enhancing their companies. These
provides them with products and services that other companies are not able to replicate and
becomes costly for them to imitate. In this context, the study present the collaboration of Thomas
cook British airways, with international travel agencies and Alton Towers to accomplish
strategic competitiveness and to earn more than average returns from business.

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Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Chain of distribution of the tourism and travel products.............................................................3
Horizontal Integration..................................................................................................................6
Vertical Integration......................................................................................................................7
Interdependencies.........................................................................................................................8
Conclusion and Recommendations..................................................................................................9
Reference list.................................................................................................................................10

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Introduction
Travel and Tourism Industry today faces major challenges for obtaining objectives of
human well being and sustainable development of business. The study focuses on Thomas Cook
British airways that is a tour operator as well as airline company, also has resorts and hotels of
their own along with partnership with several travel agencies in United Kingdom. However, the
other companies that are engaged with Thomas Cook are Thomas Cook, Air tours, Club 18-30,
Cresta Tours, direct tourism, staying lodges and different Thomas cook stores. Based on these,
the study concentrates on interrelation of different tour and travel operators such as Alton
Towers, Hilton Hotel and Thomas Cook to help the tourist to have the best service.
Analysis
Chain of distribution of the tourism and travel products
Several airlines are reliable on the network of delivery as they are highly dependent on
the tour workers and travelling agents for selling their seats on the airplanes. However, some of
of the tour operatives owns airplane such as Thomas Cook. Through the airlines, they are able to
provide services to the customers as a portion of the packaging trip. On the contrary, even if the
tour operators do not have an airplane of their own they can depend on their tour operatives for
which the customers get an opportunity to use the services in their package trip that are
conventionally traded through different travelling managers.
For instance, touring operatives that is also a network of service owned by Thomas cook
as they own airline, tour operators and club, retailed stores, they own their own subsidiary
facilities related to currency exchanges and traveling assurance.

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Another kind of chain is known as simpler chain of distribution that implies that some of
the self-cuisine trips like bungalows and hotels located in United Kingdom are usually traded
through leaflets and organization that generate the region as popular end point for holiday. The
bungalow in this context will be highlighting the district and booking of accommodation, which
they could book through the organization. In this context, the organization would handle
payment, and manage the issues with the consumers.
The company is currently offering new products and services such mobile itinerary
management and planning procedure for launching mobile booking system for distributing the
producers in an effective way.
Figure 1: Rate of distribution of Travel and tourism products in United Kingdom
(Source: Hefnawy, Bouras & Cherifi, 2015)

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Integration
During the previous days, the primary method to book a trip is by dealing with various
business that offers diverse part of the packages. The network of service may change while the
business are beginning to increase their zone of operation that is called incorporation. There are
two major types of combination horizontal and vertical incorporation where the business at the
identical stage builds a partnership with the network of distribution or may be bought by other.
For example Thomas Cook building partnership with both the tour operators. On the contrary,
vertical integration can take plan while the chain of distribution buys higher or lower level of
chain of Distribution, for example, Thomas Cook chains up with Alton Towers and Hilton
hotels, as they are higher on the part of hain of distribution (United Kingdom International Tour,
2018).
Therefore, making partnership with the industry they allow their travel agents to resell the
tourism activities and offers them a chance to earn the commission through booking
(aviationstrategy.aero, 2018). These are also done through the development of destination
websites.

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Figure 2: Prospects of United Kingdom travels and tourism
(Source: vanguardngr.com, 2018)
Through cultural pass program, through Marchitecture, and to outline an array of
offerings for highlighting the beauty and significance of United Kingdom architecture. They also
distributes their product through their gift shops from where customers and tourists can
exclusively purchase products that are inspired by the collections of museum and the exhibits.
The gifts shops consisted of accessories including books, jewelries, home decor and pother
accessories that increase the awareness of the customers about the taste of United Kingdom
culture and heritage (United Kingdom Museums, 2018). They also build collaboration with the
travel agents to entice the customer for visiting the museum.

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Figure 3: Channels of Distribution of travel and Tourism
(Source: Graham, 2016)
Horizontal Integration
This integration has taken place when United Kingdom airlines build partnership with the
International tourism in United Kingdom and United Kingdom museum to attract more
customers (Serrano-Hernández et al., 2017). Horizontal integration takes place when two or
more business are working on the similar level of distribution. This can be helpful in expanding
the market share of the company. Example of horizontal integration is British Airways, which
was taken over by easy jet. These organizations merging may also have a negative impact on the
customers as ir allows them to dictate the prices.

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Figure 4: Horizontal Integration
(Source: Serrano-Hernández et al., 2017)
Vertical Integration
Thomas cook British airways has empowered its model of business with a vertically
integrated process that includes hotel and international travel agencies located in United
Kingdom. Through the innovative model, they are able to provide incredible prices owing to
strong power of purchasing of travel related products and services from all around the globe
(vanguardngr.com, 2018).
Princples
prviders of Accomodation Hilton Hotel
attraction: eg, Alton Towers
transportantion eg. airway coaches
ancillary : Bus and cars
Wholesaler
s
operators of Tours
mass market eg:
Specilaist: Thomas Cook
Retailers
Travel agents: Thomas Cook
online: Trivago
call centres
Customers
Business: Jet airways
Leisure
VFR
Additional requiremnet

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Figure 5: Vertical Integration
(Source: aviationstrategy.aero, 2018)
Interdependencies
Interdependencies in between organization takes place when companies are not able to
work in separation and rely on each other for active process. However, specific visit attraction
depend on the transporter industry for bringing the customers to the attraction. For example,
Alton towers as there are no communication vehicles for travelling directly to Alton towers.
Hence, in case some group of students or scholar wishes to visit Alton towers, they are required

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to move through coach. Visitors panels also supports the organization that are usually reliable on
anothers by generating their organization’s local as well as international guests.
Alton Towers
A specimen of Interdependency can be at Alton Towers showing the business within resident
area, such as:
 The system of transport like coaches, as they may avail offers and concession while
transporting people to and from the Alton Towers. Hence, the company has the benefits
and can utilize this to retain increased consumer.
 Housing through B&B’s through Alton Towers owns its lodging where there are only
391 room that is occupied fast. Furthermore, customer may require more accommodation
to stay,
 Restaurant may be another requirement although there are food available within the
Alton towers that closes at 5pm. There consumers may be in need of food prior to
travelling back residential place,
 Minor business stores within the location zone could also provide advantages due to
Alton towers as the tourist facilities there are brochures about various belongings that is
to be done in that part (Graham, 2016).
Role of Hilton hotel
The Hotel is an international chain of complete service of hotels and resources they
provide accommodation for people across almost 80 various countries. The Hilton hotels are
reliable on various tour operators and travelling agents. For instance, Thomas cook at times uses
the Hilton hotels for provide accommodation to the customers. This helps the Hilton Hotel to

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develop more bookings from the people thereby generating more profit. The Hotel is also
reliable on travel agencies as they have promote hotels in their leaflets which is a major factors
for the hotels,
Conclusion and Recommendations
The relationship in between Thomas cook British airways management agents and United
Kingdom international Tour is important as it allows TUI to confirm the luggage of the tourists
and their belongings are in safe condition as they work together with these companies. If these
operator would not work together with the airport management agent’s tourism and visitors
would not have felt safe. They can also develop their department of marketing by establishing
new promotion and packages including system of transport and accommodation for retaining the
customers to avail their services.

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Reference list
Graham, A. (2016). Airport strategies to gain competitive advantage. In Airport Competition (pp.
109-122). Abingdon: Routledge.
Serrano-Hernández, A., Juan, A. A., Faulin, J., & Perez-Bernabeu, E. (2017). Horizontal
collaboration in freight transport: concepts, benefits and environmental
challenges. SORT-Statistics and Operations Research Transactions, 1(2), 393-414.
vanguardngr.com (2018). Thomas cook British airways moves into hospitality, tour packaging -
Vanguard News Nigeria. Retrieved from https://www.vanguardngr.com/2011/05/United
Kingdom-airways-moves-into-hospitality-tour-packaging/
Hefnawy, A., Bouras, A., & Cherifi, C. (2015, October). Integration of smart city and lifecycle
concepts for enhanced large-scale event management. In IFIP International Conference
on Product Lifecycle Management (pp. 687-697). Berlin: Springer, Cham.