Organisational Factors
Private enterprise - branding, TNCs, vertical and horizontal integration
Organisational developments – Governments have set up national tourist organisations to promote tourism.Tourism in the private sector is characterised by a wide variety of activities and a range of different types of enterprises (both small and large-scale).
Internationalisation of tourism – tourism has become globalised with advances in technology.
Changing consumer products and markets – Changing social patterns have prompted new tastes in world travel including holidays with an emphasis on action, adventure, fantasy, nostalgia and exotic experiences.
Changes in ownership, decision-making and control
Increasing the scale of production - the profit motive has encouraged the development of large-scale operations and an increase in the size of the companies involved.
Horizontal integration – expansion within a given sector of the productive activity. E.g. a company buying a competitor.
Vertical integration – brings together within one organization different sectors of the productive activity. E.g. a company buying a supplier.
Transnational operations – many tourist operations become global in the operations. This enables greater market potential and opportunities for expansion.
Data gathering and industry support – Organisations exist to gather data and provide support to tourism operators. These include the WTTC (World Travel and Tourism Council) and WTO (World Travel Organisation).
Organisational developments – Governments have set up national tourist organisations to promote tourism.Tourism in the private sector is characterised by a wide variety of activities and a range of different types of enterprises (both small and large-scale).
Internationalisation of tourism – tourism has become globalised with advances in technology.
Changing consumer products and markets – Changing social patterns have prompted new tastes in world travel including holidays with an emphasis on action, adventure, fantasy, nostalgia and exotic experiences.
Changes in ownership, decision-making and control
Increasing the scale of production - the profit motive has encouraged the development of large-scale operations and an increase in the size of the companies involved.
Horizontal integration – expansion within a given sector of the productive activity. E.g. a company buying a competitor.
Vertical integration – brings together within one organization different sectors of the productive activity. E.g. a company buying a supplier.
Transnational operations – many tourist operations become global in the operations. This enables greater market potential and opportunities for expansion.
Data gathering and industry support – Organisations exist to gather data and provide support to tourism operators. These include the WTTC (World Travel and Tourism Council) and WTO (World Travel Organisation).