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Agreements in the Package Holiday Industry and Market Opportunities

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Considering that package holidays contain different holiday elements, ten it is accurate to state that different companies involved in traveling and tourism have to be involved in the holiday package industry. Tese companies could be flight companies, htels and accommodation service providers as well as rental service providers. Dfferent companies that deal with different aspects of the travel and tourism sector team up to provide all inclusive holiday packages to holiday makers (Ryan, 1991). Tese companies normally have to come to a certain level of understanding before they with a holiday package.

Fr instance, ahotel or hotel chain may come to an agreement with a certain airline to offer certain holiday elements through a third party: atour operator. Te economies of scale determine the buying power of tour operators. Te same economies of scale also allow the tour operators to have a considerable level of control in the sale and distribution of holiday packages to travelers (Davies and Downward, 1998). Mst of the agreements in the UK package holiday industry are collusive in nature. Tese agreements normally the homogeneity of the products or services on offer, fequency of interaction and minimal uncertainty (Ryan, 1989).

Tis means that if companies offering different elements of holiday services think that they can work together and get maximum benefits from the collision, tey normally form a kind of a merger. Tese kinds of mergers are what give rise to tour operators who then offer services from different companies in a single package (Sheldon, 1986). Snce there are different kinds of tour operators, te market is also divided according to kind holiday packages that they prefer.

In the UK, te market is divided as follows: U residents who tour within the country, U residents who travel out of the country for their holidays, ad non-UK tourists who tour the country (Davies and Downward, 1998). Te largest tour operators in terms of market share include Thomason Travel Group Ltd, Artours, frst Choice Limited, Tomas Cook Group and Carlson Leisure (Gratton and Richards, 1997). Te table below shows the market share for various travel and tour groups offering package holidays the U.

UK market is both oligopolistic and competitive. Tis is because the market has both large companies and small ones offering the same kind of services. Te big companies are the ones that are. ..

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preview essay on Agreements in the Package Holiday Industry and Market Opportunities
  • Pages: 7 (1750 words)
  • Document Type: Essay
  • Subject: Tourism
  • Level: Undergraduate
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