Interrelationships: This is when two or more different component businesses connect to each other by doing business together. This usually involves helping each other out in their sales and results in better business for both/all businesses. For example an attraction such as a event attraction; Glastonbury Festival has other services such as transport by coaches across the UK to get there and alternative accommodation services e.g. local B&B in the area all help encourage people to visit and has positive effect on all the different businesses.
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Channel of distribution: The channel of distribution is a chain showing the motions that are needed to go through when booking holidays/trips and the pathway we use to get the principles to the consumer. It shows us how it gets to the consumer through a certain pathway. This is the movement of products or services between the different organisations. Here is the chain of distribution:
Integration: Integration is where two businesses/organisations combine to achieve better business. This can happen in several different ways such as horizontal and vertical distribution. Horizontal integration is businesses in the same level on the chain of distribution working together which is very common to promote positive business. Vertical integration however is businesses from different levels on the chain of distribution. This may involve different types of businesses working together to put together packages for the customers. For example two different plane companies helping to promote each other to the public is horizontal distribution; Or if the principles (e.g. transport, accommodation) sell their services to tour operators that put together package holidays this is vertical integration.
Integration: Integration is where two businesses/organisations combine to achieve better business. This can happen in several different ways such as horizontal and vertical distribution. Horizontal integration is businesses in the same level on the chain of distribution working together which is very common to promote positive business. Vertical integration however is businesses from different levels on the chain of distribution. This may involve different types of businesses working together to put together packages for the customers. For example two different plane companies helping to promote each other to the public is horizontal distribution; Or if the principles (e.g. transport, accommodation) sell their services to tour operators that put together package holidays this is vertical integration.
Interdependencies: This is where two different organisations depend on one another. It is important for the organisations to depend on one another as it isn't likely for them to work alone without depending on other organisations without failing to meet their main purpose. For example holiday resorts abroad rely on flight transportation to bring them inbound tourists so they are dependent on the flight companies. Without them they wouldn't meet their aim; to make a profit.