Verified Document

Tourism And Hospitality Industries: Management Integration Of Essay

Tourism and Hospitality Industries: Management Integration of Travel and Hospitality Companies

Vertical integration has been a major trend in corporate business in profit-based and consumer-based industries over the past several decades, particularly as more specialized and dynamic good and services are being offered with wider global distribution. There have been many examples of vertical integration in the travel and hospitality industry within the past several decades, although due to the volatility of industries based upon consumer activity with disposable income during the recession since 2008, it is a somewhat risky maneuver, particularly in the acquisition of transportation companies.

The general principle of vertical integration, however, leads to greater profit margins as two or more related ventures are purchased by the same entity, thus lowering overhead and eliminating external expenditure. Vertical integration is particularly of benefit for the development of travel and hospitality packages that seek to offer savings to customers in order to bolster business.

Horizontal integration is also a relatively common form of hospitality and business...

Horizontal integration is the acquisition of a business entity by another business entity with similar functions, such as the purchase of a luxury hotel chain by another luxury hotel chain. One example of this is the when budget airline Go! was bought out by EasyJet airlines, another budget airline. When horizontal acquisition occurs, the brand images may or may not merge under the parent company, depending on what marketing projections indicate will be most beneficial. On some occasions, the brand being purchased may be financially less viable than the purchasing business entity but have stronger brand recognition, meaning that the company is purchased for its brand rather than its material resources or financial assets.
In 2007, Four Seasons, a luxury hotel group, was bought out for $3.37 billion dollars by a group of investors including Kingdom Hotels International owner Prince Alwaleed of Saudi Arabia and Bill Gates. The Four Seasons Group was a massve real estate holding with immense brand recognition, with 74 properties in 31 different countries and…

Sources used in this document:
References

Hargrave, A. (2011)"The Ownership of Travel and Tourism Organisations: Takeovers" http://www.bized.co.uk/educators/1619/tourism/business/activity/ownership.htm

George Lafferty, Anthony van Fossen, Integrating the tourism industry: problems and strategies, Tourism Management, Volume 22, Issue 1, February 2001, Pages 11-19.

John Tribe, The competitive, technological, political and sociocultural environment, The Economics of Recreation, Leisure and Tourism (Fourth Edition), Butterworth-Heinemann, Oxford, 2011, Pages 173-204.

Ludwig Theuvsen, Vertical Integration in the European Package Tour Business, Annals of Tourism Research, Volume 31, Issue 2, April 2004, Pages 475-478.
Cite this Document:
Copy Bibliography Citation

Related Documents

Hospitality Industry Role of Hospitality
Words: 735 Length: 2 Document Type: Essay

SaaS applications only require an Internet connection and browser to operate, hence their popularity in industries where customers are forcing change, as is evident in the hostility industry today (DiPietro, Wang, 2010). SaaS-based applications are created using Active Service Pages (ASP), AJAX (Asynchronous JavaScript and XML) or J2EE-based programming technologies, all of which are being continually optimized for performance over the Internet (Mathies, 2010). These programming technologies are also

Innovation and Growth in India S Hospitality Industry A Comprehensive...
Words: 2789 Length: 9 Document Type: Analysis

Table of contents1. Introduction2. Literature Reviewa. Emerging trendsi. Increase in hotel projects fueling the marketii. Government effortsiii. Insight into Indian hospitality sectoriv. Key areas of innovationv. Technological integrationsvi. Strategies for cost competitivenessvii. Elevations the revenue management process3. Conclusion4. List of graphsa. Number of approved hotelsb. Foreign Tourist arrivalc. Market concentrationIntroductionIn recent years, the service sector in India has witnessed rapid and substantial growth, presenting hotels with many enticing marketing prospects.

Hospitality CRM Systems Customer Relationship
Words: 1125 Length: 3 Document Type: Research Paper

Effects of CRM on the Hospitality Industry At a very strategic level, CRM has made the hospitality industry much more attuned to the preferences, wants and needs of guests. It has also created a more responsive industry by capturing the needs of customers more efficiently and economically than was ever possible before. Specific areas that have changed the most include more of a focus on making multichannel strategies, from websites to

Hospitality Trends and Problems in
Words: 2618 Length: 8 Document Type: Term Paper

There are some cases where there can be a guest service agent who might be handling japans guests but may not understand what the guest exactly needs and hence will need to ask for help and may lead to a long period of waiting. This leads to decrease in the efficiency of the services the resort offers since there can be a time when there is no one available

Tourism of a Country Is
Words: 2869 Length: 11 Document Type: Essay

9). It is also dubious to present the research on food and drink and other interlinked issues "as academic reflection on hospitality" (Brotherton & Wood, 2000, p.139) by scholars belonging to various disciplines such as Visser (1991) and Beardsworth & Keil (1997). In this context, it should not be forgotten that hospitality is a false identification of an industry that has existed for only twenty years and which has transitioned

Tourism After September 11
Words: 11294 Length: 45 Document Type: Term Paper

Terrorist Attacks on New York City Consumer Behavior and Risk Terrorism and Consumerism in the Melting Pot How has September 11 Impacted Americans Economic Impact of terrorism Outlook for the New York Economy Examination of the Effects on Business Regaining Consumer Confidence Sampling Procedures Survey Construction Survey results Recommendations for Further Studies Survey of Consumer Patterns After The September 11 attacks on the World Trade Towers Survey Results presented Graphically Store Owner Interviews The Impact of the Terrorist Attacks on New York City: One

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now