Reviewing Organisational Cooperation in Travel and Tourism
Throughout this course, we've explored how different travel and tourism organisations work together. Now it's time to review what we've learned and prepare for assessment. Cooperation between organisations is vital for the success of the travel and tourism industry, creating better experiences for tourists and more profitable businesses.
Key Definitions:
- Cooperation: When organisations work together towards a common goal.
- Integration: When organisations combine parts of their operations.
- Partnership: A formal agreement between two or more organisations to work together.
- Chain of distribution: The path that products take from producer to consumer.
📊 Vertical Integration
When businesses at different levels of the chain of distribution join together. For example, a tour operator buying a chain of travel agencies or an airline.
Example: TUI Group owns travel agencies, airlines, cruise ships and hotels.
📋 Horizontal Integration
When businesses at the same level of the chain of distribution join together. For example, one hotel chain buying another hotel chain.
Example: Marriott International's acquisition of Starwood Hotels.
Types of Working Relationships
Travel and tourism organisations can work together in many different ways. Let's review the main types:
👥 Formal Partnerships
Written agreements between organisations with clear terms and conditions.
Examples: Joint ventures, franchises, management contracts
🤝 Informal Cooperation
Looser arrangements without formal contracts.
Examples: Local tourism businesses recommending each other, information sharing
🚀 Strategic Alliances
Partnerships where organisations remain independent but collaborate on specific projects or goals.
Examples: Airline alliances like Star Alliance, hotel loyalty programme partnerships
Benefits of Organisational Cooperation
When reviewing how organisations work together, it's important to understand the benefits they gain:
- Cost reduction: Sharing resources, bulk purchasing and economies of scale
- Market expansion: Access to new customer bases and geographical markets
- Risk sharing: Spreading financial risks across multiple organisations
- Knowledge exchange: Sharing expertise, technology and best practices
- Improved customer experience: Seamless service across different parts of a trip
- Competitive advantage: Standing out in a crowded marketplace
- Innovation: Combining ideas and resources to create new products and services
Case Study Focus: Airline Alliances
The three major airline alliances Star Alliance, Oneworld and SkyTeam show cooperation at a global scale. Star Alliance, founded in 1997, now includes 26 airlines operating in 195 countries. Members share airport lounges, coordinate flight schedules and offer joint loyalty programmes. Passengers benefit from seamless connections between airlines, while the airlines benefit from shared costs and wider market reach. However, challenges include maintaining consistent service standards across different airlines and navigating different regulatory environments.
Challenges and Limitations
When assessing how organisations work together, we must also consider the challenges:
⚠ Internal Challenges
- Different organisational cultures and working practices
- Communication difficulties between partners
- Unequal power relationships
- Conflicts over shared resources or profits
- Loss of individual brand identity
🛡 External Challenges
- Competition laws and regulations
- Different legal systems in international partnerships
- Economic fluctuations affecting different partners differently
- Changes in consumer preferences
- Environmental and sustainability concerns
Evaluating the Effectiveness of Cooperation
When reviewing partnerships in travel and tourism, we need to consider how to measure their success:
- Financial measures: Increased revenue, profit margins, cost savings
- Market measures: Market share, customer acquisition, geographical expansion
- Operational measures: Efficiency improvements, reduced duplication
- Customer measures: Satisfaction ratings, repeat business, positive reviews
- Strategic measures: Achievement of long-term goals, competitive positioning
Case Study Focus: Destination Marketing Organisations (DMOs)
Visit Britain works with local tourism boards, accommodation providers, attractions and transport companies to promote UK tourism. Their partnership with the GREAT Britain campaign has helped increase inbound tourism. By coordinating marketing efforts, sharing research data and pooling resources, they've created a stronger, more consistent message about Britain as a destination. The partnership has been particularly effective at targeting specific markets like China and the USA with tailored campaigns. Success is measured through visitor numbers, spending data and social media engagement.
Preparing for Assessment
When answering questions about how organisations work together, remember these tips:
📝 For Knowledge Questions
- Define key terms clearly (integration, partnership, etc.)
- Identify different types of cooperation
- Describe examples of organisations working together
- Explain the benefits and challenges of partnerships
💡 For Analysis Questions
- Compare different types of partnerships
- Explain why organisations choose specific partners
- Analyse the factors that make partnerships successful
- Evaluate the effectiveness of real-world examples
Common Assessment Questions
Here are some typical question types you might encounter:
- Explain the difference between vertical and horizontal integration. [4 marks]
- Describe two benefits of strategic alliances for airlines. [4 marks]
- Analyse the challenges faced by international hotel chains when working with local partners. [6 marks]
- Evaluate the effectiveness of destination marketing partnerships in promoting tourism. [8 marks]
- Discuss how a specific travel organisation has benefited from working with other organisations. [10 marks]
Remember to use specific examples from your studies to support your answers. Case studies are particularly valuable for higher-mark questions that ask for analysis and evaluation.
Exam Technique: PEEL Paragraphs
For longer answers, structure your paragraphs using the PEEL approach:
- Point: Make your main point clearly
- Evidence: Support it with specific examples or case studies
- Explain: Explain how your evidence supports your point
- Link: Connect back to the question or lead into your next point
Final Review Tips
As you review this topic, try these study techniques:
- Create a mind map showing different types of partnerships and their characteristics
- Make flashcards with key terms and definitions
- Collect real-world examples from news articles or your own travel experiences
- Practice explaining benefits and challenges using specific examples
- Try answering past paper questions with a timer
Remember that examiners are looking for your understanding of concepts, your ability to apply them to real situations and your skills in analysis and evaluation. Good luck with your revision and assessment!