Horizontal and Vertical Integration
Horizontal Integration is the getting together multiple firms under one single firm that are doing the same business.
Vertical Integration is the mixture of one or more companies that are not in the same line of business but are operated by different companies.
Hotels, Airlines, Other Transport Providers
The table above shows the traditional chain of distribution in travel and tourism, where tour operators also known as the wholesalers use the services of hotels, airlines, etc. The Principals put together the holidays, travel products and make packages which are sold to customers in Travel Agents who are also known as the retailers. Travel agents are loosing out on selling the package holidays now because of the internet. Most of people who are booking holidays do it online rather than go to the Travel Agents themselves so this alters the chain of distrubution as wholesalers and retailers are left out and the principals still make the holidays but sell them directly to the customers rather than to tour operators and travel agents.