Marketing assignment management help online on: Travel and tourism in UK

Introduction

The paper will contain and describe all the key essential required information that will focus on all the key aspects areas on “Travel and tourism industry” in perspective of UK that will provide in depth descriptive analysis information and discussions that will cover all the required key essential information into different sections about the topic. In the beginning the first section of the report will start with small introduction about the topic “meaning and current scenario of the travel and tourism in UK” that will also contain and provide information about key elements and all the required topics that will needs to discuss within the paper in the below in other different sections. With respect to introduction in the further sections, the report will focus and discus all the key topics in depth descriptive and detailed manner as per the requirement which will cover and provide complete information and visibility about the Travel and tourism from UK perspective and key areas that affect the organization in consecutive manner. At the end in conclusion the report will concludes entire discussions that will discuss in the below sections in summarize manner. Thus this report will cover all the key essential required information in the area of travel and tourism that will provide complete information from UK perspective. The report will discuss in the beginning how the Travel and tourism concept originated in the world and discuss the past, present and future of the entire concept of travel and tourism from UK perspective. In the next section the report will discuss how vertical and Horizontal Integration impact and affect the entire the travel and tourism concept and how its impact the mind of customers. This section will also discuss the other key areas of vertical and horizontal integration and its positive and negative impact on the customers. At the end in the last section the report will contain information about who are the key contributors and entrepreneurs who changed the Transatlantic and UK airline industry.

 Discussion

 Introduction of travel and tourism Industry in UK

The travel and tourism industry is the one of the biggest and fastest growing industries in the UK.

Concept of tourism: Tourism contains and involves number of activities that associated with person travelling and staying outside, visit different places for different purpose fulfil requirements through direct and indirect manner, and the whole process is called tourism.  As per the secondary data the total value of travel and tourism in 2002-2003 in the UK was £ 91.8 billion. World Tourism organization has confirmed that tourism is the fastest growing sectors and affecting the world economics. There are different types of tourism involves:

–          Leisure tourist

–          Business Tourist

–          Visiting, friends and relatives (VFR) tourist

–          Incoming tourist

–          Domestics tourist

–          Package holidays tourist

–          Independent tourist

–          Outgoing tourist

–          Adventure tourist

Numerous private organizations operate its businesses in the area of travel and tourism industry in UK.

LOG 1: The development of travel and tourism

Describe the origin of travel and tourism

The business or concept of travel and tourism originated with trade between communities. With development in the area of agriculture field enhance the business/ trade of agriculture products in the Asia, Europe and many other countries as per requirement of the human wants and needs. The concept of the travel introduced and developed to seek or search for food, shelter, avoid danger situations and fulfil the basic requirements and needs of human. With time it changed as per the requirements and human wants. People used this concept for trade and many other needs to satisfy with time to time. Environmental changes and growth of technologies, cities, countries and many other key essential factors that associate and affect the people’s life style, attitude, behaviours, nature and many other key areas develop and introduce the concept of travel and tourism. In the modern time the concept of travel and tourism known for popular business and symbol of pleasure, knowledge, joy, happiness, family time, holiday time, relaxation and many other synonym that represent the people expression of joy. Initially, people travel for foods, shelter and fulfil their basic needs that came from employment and trade. These requirements introduced the concept of travel home-town and native places for celebrate the festivals, happiness, joy and relaxation after long work that people has done to collect required things that help to sustain the life in the complex life. This mentality introduced the concept of travel and tourism concept and people started spent their valuable and leisure time to visit new places and gain some new experiences with their family, friends and close relative with whom they want spent and feel relax and collect some good experiences and happiness that provide relax and break from the busy work schedules.

Thom Cook was known as father of the concept of tourism that organized his first trip in 1841 from Leicester to Loughborough that coved of 22 KM distance for 570 members. Thomas Cook played role of an agent where he was buying tickets in bulk and selling all these tickets to the customers on a non profit basis that gave him idea to package tours in a profitable manner. The key role he played was to organize all the arrangements of travel and tourism that were accommodations, transport and many other key things that required in the travel and tourism to the customers. He organized the first tour in 1855 for Paris exhibition. With time introduced concept of Hotel Voucher in 1867 by Thomas cook and circular note in 1873 that contributed highly in the travel process, in this way the round of first world tour happened in 1872.

In the twentieth century the major development and change in the area of travel and tourism happened in USA. Many trade and scientific associations and organization organized many events that enhance the overall effectiveness and business of the concept of travel and tourism. (Ideviate.org, 2010)

Wide geographical variances and existence of locations attract and make the popular of travel and tourism business in the modern time. Having started the concept of travel and tourism business in Asia, Africa and Middle East in ancient times, the major development in the business happened in nineteen and twentieth century in Europe. (Girl, 2012)

Milestones   

LOG2: Integration in the travel and tourism industry

Recognize horizontal and vertical integration in travel and tourism and make clear its positive and negative effects on travel and tourism consumers.

Horizontal Integration is shows and represents the control and ownership within a company when a travel company owns or has control on the numerous other companies at the same level in the distribution chain or in the same sector or industry is called Horizontal Integration. Example: In UK many small tour and travel companies are now part of two giant originally independent companies: Nielson and club 18-30 now became the part of Thomas cook group and some special and Holidays cottage group merged with the Thomson.

In Vertical Integration company has control on the numerous other companies that operating their businesses at different levels in the chain of distribution or in different industry and sectors.

For example: Tour operator Thomas Cook owning its own travel agencies and airlines and operating its tour and travel businesses via providing range of products and services to its customers.

TUI travel UK Owns Thomson and first choice tour operating its businesses and the Thomson travel agency chain (TUI UK also control the Germen based TUI AG)

Comparative analysis of Vertical and Horizontal Integration

–          Vertical integration is beneficial in perspective of the Travel companies create bulk discounts and saving for suppliers and companies perspective so, in this way public has less interest and it has no impressive from customers’ perspective. It reduces the number of companies and provides less choice when buying the holidays packages by the customers.

–          Customers also have less information about the tour operator that owned by the travel agency that is selling the tour packages. (Tandtpublishing.co.uk, 2012)

Vertical integration has high control over the companies so it has different distribution networks in different sectors whereas horizontal integration focuses on the same level of distribution chain. Therefore vertical and horizontal integration is important for the travel and tourism industry. It has the major positive impact that is known as charter airlines, ground handlers, accommodation and other important parts. (Pearsonschoolsandfecolleges.co.uk, 2012)

The vertical integration has certain advantages such as:-

It reduces the cost of transportation; it improves the coordination of supply chain. Thus it also helps in providing high level of opportunities with regards to increased controls over inputs. This way, it can increase high accessibility of distribution channels and also it can lead to expansion of core competencies. (Bohman, 2007)

On the other hand, the horizontal integration takes place between the companies with respect to similar activities. It helps in mass advertising and deals for better commissions whereas the vertical integration ensures the proper management for the internal costs and for the better quality of products. (Hull, 2012)

Vertical integration deals with the greater level of investment and also it meet the potential network of supply chain with respect to its own demands. (Budeanu, 2012)

 LOG3: Entrepreneurs and revolution in the airline industry

 Identify the entrepreneurs who changed the transatlantic and UK airline industry:

 Most importantly, the UK airlines are based on privatization concept or privately owned. The main UK airline involves British Midland and Virgin Atlantic is scheduled airlines. Monarch, Britannia Airways and there are many chartered airlines services providers provides its services in the area of travel and tourism. These are mainly contract based provide services in specific holiday seasons and run on the basis of timetable set by the operators that provides services to the customers or tourists. There is difference between the scheduled and charter services that involve movement of the flights in the markets. In this area major tour operators has their own charter airline services and some has venture with low-cost (scheduled) market.  Hundreds of other airlines from all over the world fly in and out of the UK and paying for the services they use. (Digitalcommons.law, 2012)

Mr. Richard Branson from airlines focused on the world’s most powerful and recognizable brands. It helped him to establish the strong foundations of business. There is great measure of success and also it focuses on proper management. (Rifkin, 2012)

Thus he started the low cost airline and operated in the strong aspects. Thus the airline industry provides better transportation and also it meets with the important approaches. (Watch, 2010)

 Conclusion

In conclude, in the above sections covers all the required key essential information that provide in depth information about the concept of travel and tourism in terms of its originated and its key contribution in UK. The requirement and activities define the concept of travel and tourism concept and business that person plays in their day to day life. In UK travel and tourism is very popular and growing business industry that generates the larger part of total revenue. Vertical and Horizontal both has its pros and cons but vertical integration in more beneficial from travel agent and supplier perspective this is the reason that customers and tourist prefer less and vertical integration has less impact on the customers market.

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