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Integration & consortia
1. Integration and Consortia
• Horizontal and Vertical Integration mean that a company can gain
competitive advantage because they control the different stages of the
chain of distribution.
• Independent travel companies can join a consortium (a group that
protects its members through collective security). Examples are the Hays
Travel Independence Group and the Freedom Travel Group.
• Consortia offer benefits such as access to reservation
technology, centralised payments and access to ABTA.
• How does Thomson use Integration and Consortia to gain competitive
advantage? Merged to become part of TUI one of the world’s largest
travel companies. ThomsonFly merged with First Choice Airways to
become Thomson Airways the third largest British carrier. How will this be
an advantage?
2. • How does the National Trust use integration
and consortia?
• NT linked with English heritage, can use
membership in venues for both organisations.
EG. NT members can get into Stonehenge
which is run by English Heritage.
• Joint membership with National Trust for
Scotland etc