Integration in Tourism Distribution Channels and Bargain Power of Tour Operators over Accommodation Establishments: TUI and Thomas Cook Cases

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Economic problems of Tourism- Ekonomiczne problemy turystyki, vol.4, no.36, pp.115-124, 2016 (Peer-Reviewed Journal)


Nowadays, large international tour operators, play an important role in tourism distribution channels.
They can significantly affect international tourism flow and dominate accomodation establishments
and other businesses particularly in mass leisure tourism. Through mergers and acquisitions in
tourism industry market structure also changes.
This study is supported by secondary research focusing on mass tourism distribution channels and
the pricing problems arising between tour operators and accomodation establishments. First of all,
vertical and horizontal integration in tourism industry is stated through TUI Group and Thomas
Cook Group cases which are two of the largest tour operators in Europe. Afterwards, bargain
power of tour operators over accommodation establishments is tried to expose. In conclusion, some recommendations are given in the light of literature.