Comparative Analysis of Travel and Tourism Management Companies

This report offers a comparative analysis of two prominent companies in the travel and tourism industry: Thomas Cook Tour Operations and Jet2Holidays. The report delves into various aspects of their operations, including their roles, profit margins, market share, product offerings, and sales strategies. It examines how each company promotes tourism within the UK and their responsibilities towards the development of tourism. Furthermore, the report explores the chain of distribution, integration methods (vertical and horizontal), and interdependencies within each company's business model. The analysis provides a comprehensive overview of the companies' financial performance, market strategies, and their impact on the broader tourism landscape, incorporating references to relevant academic sources and industry publications to support the findings and conclusions presented throughout the report.

Running head: TRAVEL AND TOURISM MANAGEMENT
Travel and tourism management
Name of the student
Name of the university
Author Note:

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Table of Contents
1st Company.....................................................................................................................................4
Roles:...............................................................................................................................................4
Profit:...............................................................................................................................................4
Increase market share:.....................................................................................................................4
Products:..........................................................................................................................................4
Selling of leisure/business travel products:.....................................................................................5
Promote tourism with the UK:.........................................................................................................5
Responsibility to the development of Tourism................................................................................5
Chain of distribution........................................................................................................................6
Integration........................................................................................................................................6
Interdependencies............................................................................................................................7
2nd Company....................................................................................................................................7
Profit:...............................................................................................................................................8
Maximum sales revenue:.................................................................................................................8
Increase market share:.....................................................................................................................8
Products:..........................................................................................................................................8
Selling of leisure/business travel products:.....................................................................................8
Promote tourism with the UK:.........................................................................................................9

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Responsibility to the development of Tourism................................................................................9
Chain of distribution......................................................................................................................10
Integration......................................................................................................................................10
Interdependencies..........................................................................................................................10
References......................................................................................................................................11

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1st Company
The first company that has been selected in this particular report is “Thomas Cook Tour
Operations”. The following company is based in London city of United Kingdom and serves the
total world when it comes to the tourism business. The company is listed with the London Stock
Exchange and is a constituent of the FTSE 250 index. The business is controlled by the Thomas
Group of companies and is among a large number of different subsidiaries that are owned by the
group as a whole. The organization employs more than 20,000 people in the industry and has a
net income of around pound 12 million.
Roles:
Profit:
The profit of Thomas Cook was GBP 9007 million as on 2017.
Increase market share:
The market capitalization of Thomas Cook in 2017 was GBP 721.85 million.
Products:
The products of Thomas Cook consist of a vast range of holiday and ancillary products.
The international travel and tourism Company based in the United Kingdom offer holiday
packages to travelling different destinations in the world. The travel company also provides
support services like forex, visa, flights, hotels, insurance and gift cards. The company partners
with leading banks to make services like travel and foreign exchange available to consumers.

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Selling of leisure/business travel products:
Thomas Cook sells leisure and business travel to its global customer base. The leisure
travel products consist of expensive travel packages to continents like North America and Asia.
The premium leisure and business travel products target the upper class customers.
Promote tourism with the UK:
Thomas Cook tourism group is one of the main businesses of the business group that is
based in London. The business of the company deals with the tourism business where the
company offers a wide range of tourism packages and other kind of different tour packs for
different leisure travel of the people in different parts of the world (Schegg and Stangl 2017).
The company being based in the United Kingdom generally has a large range of special
discounted packages for travelling to United Kingdom. The packages of United Kingdom have
been the best sold till date. However, the Europe tour has been the most popular one conducted
by the management of the company.
Responsibility to the development of Tourism
Thomas Cook has been one of the major operators of tourism in the business and thus it
carries with it an additional responsibility for the development of the economy of the United
Kingdom and complying with the different laws (Webster and Ivanov 2014). A large number of
tourists visit the United Kingdom each year under the guidance of the company. The company is
thus able to provide a significant amount of foreign earnings for the country which provides a
boost to the economy of the country. The earnings from the tourism also contribute a significant
amount of GDP for the country. The following promotional activities of the organization both
improve their business as well as increase the profit for the country. The company creates

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employment opportunities in all the countries it operates in and involves its staff in social
development activities in those countries as well. Thomas Cook complies with the laws
pertaining to important areas like environment, human resource and financial transactions.
Chain of distribution
The chain of distribution concept highlights getting the product to the end customers. For
instance, packages are put together by the hotels and given to the tour operators those are then
given to the travel agencies and are finally sold to the customers. This chain is followed to ensure
that the customers are provided with the best packages and deals. The hotels, transport providers
and attractions act as the producers that work with the tour operators and the travel agencies and
sell the packages to the consumers.
Integration
Thomas Cook is both vertically and horizontally integrated. Thomas Cook is vertically
integrated as it is merged with other companies that are on different levels of the distribution

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chain such as coach companies, airlines, agencies and hotels. On the other hand, Thomas Cook is
horizontally integrated, as they own other brands on the same level Manos, Airtours and Neilson
along with other brands.
Interdependencies
Thomas Cook is a private travel and tour operator that organizes tours for groups of
people. While organizing tours, Thomas Cook also offers extra services, accommodation, and
transport for the people. It is essential to work and rely on others, as working in isolation for the
travel and Tourism Company will make it difficult for them to survive and provide the best to the
customers. One such example for interdependency for Thomas Cook is the merge with MyTravel
that enabled the company to save an estimated 75 million GBP thereby, combating with the low-
cost airlines and web-based travel agents.
2nd Company
The third company that has been selected in the following report is the “Jet2Holidays”.
The following company is just a brand of the major company Jet2 Airways that is based in Leeds
district of England. Jet2 is the fourth largest scheduled airline in the UK and is classified as a low
cost airline (Boniface Cooper and Cooper 2016). The company operates under the license of a
United Kingdom Civil Aviation Authority Type A operating license. The company owns a strong
fleet of 85 different jets and operates to 58 different destinations. The company thus directly
helps the promotion and spread of tourism across United Kingdom in an organized manner.

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Profit:
The net profit earned by Jet2Holidays was GBP 242.5 million in the year ending March
31, 2018
Maximum sales revenue:
The revenue generated from sales of travel and tourism products was GBP 2391.80
in the March 31, 2018.
Increase market share:
The financial statements of the travel and tourism company reports that the CAGR of
Jet2Holidays has increased by 32 percent which was GBP 1455.7 million.
Products:
The main products of Jet2Holidays consists of holiday packages of various kinds like
theme tours and seasonal tours. The additional services of the travel company consist of essential
services like car hire, travel insurance and onboard shopping. However, the travel company
unlike Thomas Cook does not provide forex services.
Selling of leisure/business travel products:
The travel and tourism company provides diverse ranges of leisure and business travel
packages. The tourists can choose from a wide range of thematic holidays like holidays with
theme parks. Jet2Holidays also offers holiday packages with accommodations like hotel resort
villas and large villas as per the preferences of customers.

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Promote tourism with the UK:
Jet2Holidays being one of leading national tourism and travel companies in the UK,
promotes tourism in diverse ways. The company targets both organizations like companies and
schools as well as individual customers. The main business of the organization is to operate
flights from different Airports of United Kingdom. The Jet2 Holidays is a packaged holiday
brand offered by the company which provides protected package holidays with accommodation,
transfer from airport to hotels, and other basic facilities to the customers within special
discounted prices. The 4000 strong employees of the company are engaged in providing the best
services to the customers to ensure success to the organization. A large number of passengers
generally enroll in the following package because of the enormous discount and offers from the
management of the company. The following organization thus concentrates both in the Airlines
business as well as the tourism business.
Responsibility to the development of Tourism
The responsibility of the management of the business in the following case can be
considered to be quite emphatic in the development of tourism activities (Xiang Magnini and
Fesenmaier 2015). The aviation service of the company is mixed with the tourism service of the
company by introducing the “Jet2Holidays”. The introduction of the following brand has been
helpful for the organization to increase their revenue and ultimately increase their profit. The rise
in the profit has been helpful for the company and also helpful for the country. The rise in the
number of tourists enrolling to the new program is believed to contribute a huge sum to the
economic development of the organization. Jet2Holidays operates within the United Kingdom
and in several other countries. The company complies with laws relating to significant areas like

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employment and environment. The company offers rural residences to tourists on demand, thus
promoting development in the rural economy.
Chain of distribution
For Jet2Holidays the transport providers, hotels and the ancillaries are the producers that
develop the tour packages and sell it to the wholesalers those are the tour operators. The tour
operators put the packages together and forward it to the travel agencies those act as the retailers.
Being the retailers, the travel agencies sell the tour packages to the customers according to their
need.
Integration
As the majority of the travel and tourism companies in the UK are vertically and
horizontally integrated, Jet2Holidays also follows the dual integration method.
Interdependencies
Jet2Holidays have parterned with the different independent travel agents for attracting
new customers, increase sales ad growing their business. The CEO of the company has put the
independent travel agents as the heart of the company thereby, giving opportunities the travke
company to grow.

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References
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Page, S.J., 2014. Tourism management. Routledge.
Schegg, R. and Stangl, B., 2017, January. Information and Communication Technologies in
Tourism 2017. In Proceedings of the International Conference in Rome, Italy.
Webster, C. and Ivanov, S., 2014. Transforming competitiveness into economic benefits: Does
tourism stimulate economic growth in more competitive destinations?. Tourism
Management, 40, pp.137-140.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services, 22, pp.244-249.