Travel & Tourism Organisations Working Together: The Power of Teamwork!

Hello future Travel and Tourism experts!

Welcome to this important chapter. You might think that airlines, hotels, and attractions are all competing, but in the tourism world, they are much like pieces of a puzzle—they all need to fit together perfectly for the tourist to have a great trip.

In these notes, we will explore the two main ways that different travel and tourism organisations rely on each other. Understanding this is crucial, because if one part of the chain fails, the whole industry in that area can suffer!

3.2 Ways Travel and Tourism Organisations Work Together

The Big Picture: Why Collaboration Matters

Imagine booking a holiday package. You need a flight, a hotel room, and an excursion. No single company usually provides all three. Travel and tourism is a complex system, and success depends on different companies and sectors cooperating. This cooperation falls mainly into two categories:

  • Interrelationships (How they link up)
  • Interdependencies (How they rely on each other)

1. Understanding Interrelationships

The term Interrelationship simply means there is a mutual relationship or connection between two or more organisations. They interact, exchange information, or coordinate their services.

What does an Interrelationship look like?

An interrelationship is the basic communication and structural link between parts of the industry. It's about working together to serve the customer.

Example:

Think of a popular tourist town like Venice. The local Gondola Operators (ancillary service providers) have an interrelationship with the Hotels (accommodation providers). The hotels recommend the gondola rides to their guests, and the gondola operators might offer hotels a small commission for referrals. They are linked and help each other out.

Types of Organisational Links

Interrelationships exist between all sectors of the industry, including:

  • Horizontal Links: Organisations at the same level (e.g., two different tour operators sharing transport logistics for a large event).
  • Vertical Links: Organisations at different stages of the supply chain (e.g., a cruise ship company [provider] working with a food supplier [non-tourism provider]).

Did you know? Good interrelationships are essential for smooth customer service. If the hotel staff doesn't know the bus schedule, the customer experience is immediately damaged.

Quick Review: Interrelationships

An interrelationship is a connection or link where organisations interact and work together, often for mutual referral or promotion.

2. Understanding Interdependencies

The term Interdependency is much stronger than interrelationship. It means that one organisation cannot function or succeed without the product or service provided by another organisation.

It means they depend entirely on each other. If one sector or organisation fails, the dependent organisations suffer badly.

The Essential Link: "I Need You to Survive"

In travel and tourism, interdependencies are everywhere, creating a complex web where the failure of one thread can break the whole fabric.

Analogy: The Mobile Phone Charger

Think of your mobile phone. It has an interrelationship with your headphones (they connect). But it has an interdependency with its charger. If the charger stops working, the phone will eventually die—it relies completely on the charger for its core function.

Key Examples of Interdependencies in Tourism

1. Tour Operators and Airlines (The Classic Example)

  • Dependency: The Tour Operator (TO) is dependent on the Airline to move the customers to the destination. If the airline cancels the flight, the TO cannot deliver the package holiday and loses the sale and reputation.
  • Mutual Dependency: The Airline is dependent on the TO for filling a large percentage of its seats (bulk bookings), ensuring the route is profitable.

2. Accommodation and Attractions

  • Dependency: A new theme park (Built Attraction) is dependent on local Hotels and Resorts to provide rooms for visitors who travel long distances. If there is no accommodation, the attraction’s visitor numbers drop.

3. Local Businesses and Infrastructure

  • Dependency: A restaurant chain in a coastal town (Food and Drink Provider) is dependent on the local Ports and Roads (Infrastructure) to bring in fresh supplies and to allow tourists to access the area.
The Importance of Interdependency Management

Because of these strong dependencies, travel organisations must work together on things like:

  • Pricing: An airline discount often requires the hotel to offer a discount too, making the package attractive.
  • Scheduling: Cruise ships must coordinate with bus services and local guides to ensure excursions run smoothly and on time.
  • Crisis Management: If a natural disaster hits a destination, hotels, airlines, and government tourism boards must share information instantly to ensure the safety and recovery of tourists. This shared risk highlights their mutual dependence.
Common Mistake to Avoid!

Students often mix up the terms. Remember:

InterRelationship = Relationship (A friendly connection)
InterDependency = Dependency (A critical need for survival)

The entire structure of the tourism industry is built on interdependencies. When you book a holiday, you are buying a product that is stitched together by many different companies relying on each other to deliver their part.

Quick Review: Interdependencies

Interdependencies mean that organisations critically rely on each other's products or services to operate successfully. If one fails, others are severely affected.

How Interrelationships and Interdependencies Lead to Success

Working together ensures the tourism product is high quality and sustainable. For example:

1. Shared Marketing (Interrelationship)

Example: A country's National Tourism Organisation (NTO) runs a global marketing campaign. They work with major international airlines to offer promotional deals to fly into the country. This relationship helps both: the NTO attracts tourists, and the airline fills seats.

2. Sustainable Product Development (Interdependency)

Example: A newly built eco-resort (accommodation) decides to source all its food from local farmers (food and drink providers). The resort is dependent on the farmers for its sustainable image and supply, and the farmers are dependent on the resort for a stable income. This creates a stronger, more sustainable local economy.

By relying on and relating to each other, travel and tourism organisations create a seamless experience for the customer, ensure stable business flow, and share the financial benefits across the supply chain.