Relationship In Travel And Tourism

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• Travel agents – using agents as a sales outlet for the tour operator’s holidays and agreeing commission payments and booking procedures.
• Transport providers – negotiating and agreeing contracts with airlines (charter and scheduled), rail operators, coach companies, taxi operators, etc. To supply transport services for holidaymakers.
• Hotels and other accommodation providers –negotiating allocations of bed spaces that form the accommodation element of the package holiday.
• Ancillary service providers – contracting with companies to supply representative services, transfers, ‘meet and greet’ arrangements, insurance, car hire, activities, excursions. (Ingle et.al., 2010). Even the large, vertically-integrated travel groups have to liaise on different functions within their own organizations, since individual parts of the group are usually separate companies in their own right, e.g. staff from Neilson Holidays, part of the Thomas Cook Group, would negotiate with staff at Thomas Cook Airlines to agree seat allocations for a season.

Horizontal and vertical integration& merging in travel agencies Ingle et.al., (2010) mention that as competition in the travel and tourism sector has intensified, tour operators have taken over or merged with other travel and tourism businesses as a way of maintaining or increasing their market share and maximizing their profits. This is most noticeable in the tour operator/travel agent relationship, where: • TUI Travel UK

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