Travel Reference
In-Depth Information
Integration and consortium
membership
case with tour operators, travel agency chains, airlines,
hotel groups, etc.
Being a member of a consortium offers an organisation
the chance to benefi t from 'economies of scale', i.e.
joining together with other companies to negotiate
better prices from suppliers for goods and services.
Many UK travel agencies join consortia such as
Advantage Travel and Worlchoice (see case study in
Unit 9 on page 298).
Integrated organisations, i.e. those consisting of many
separate companies under a single group structure,
can have an advantage over their competitors due their
scale of operations. They are able to negotiate the best
discounts from their suppliers since they generate so
much business with them due to their size. This is the
