The changing structure of the travel and tourism industry: Practice Questions

Which component of the travel and tourism industry is primarily responsible for providing additional support services such as travel insurance, airport lounges, and currency exchange?

Consider the following scenario: Two competing budget airlines decide to merge into one single entity to dominate a specific flight route. Which type of industry change does this represent, and what is a likely primary motivation?

Which of the following describes a situation where a major airline acquires a car rental company to provide a more seamless travel experience for its passengers?

When a large airline purchases a chain of hotels to provide accommodation for its flight crews and passengers, what form of integration has taken place within the industry structure?

In the context of the travel and tourism industry, what is the term used to describe an organization that combines several travel components to create a package holiday?

Define the term ancillary services and provide one example of such a service within the travel and tourism industry.

Explain how dynamic packaging has contributed to the growth of independent travel in recent years.

Explain the structural impact on the travel industry when a Global Distribution System (GDS) facilitates real-time online travel booking for independent travelers.

The structure of the travel and tourism industry is frequently altered by integration.
(a) Explain the difference between vertical integration and horizontal integration.
(b) Using the concept of a supply chain, analyze how vertical integration can lead to a more efficient workforce and increased turnover for a large tour operator that acquires its own travel agency and airline.