Usman Ahmed M1 Unit 1

M1 Explanation of relationships between organisations from

different sectors in the Travel & Tourism Industry
While planning a holiday, there are many organisations involved from the private, public and
voluntary sectors that all participate by exchanging their product(s) or service(s) for a
commission fee or similar type of payment where each organisation is seen to receive a
beneficial resource.

An example of the relationship between different sector organisations for packaged holidays is a
tour operator that is connected with a coach company, a museum and also a travel agent. The tour
operator could provide a packaged day out by providing transport via the coach company for a
trip to the museum and could advertise this package through the travel agent. The tour operator
would normally have to pay a fee or a certain percentage of the proceeds to the museum, Coach
Company and the travel agency as it used their services and products to make profit.

Another example could be a tour operator working with a travel agency, Coach Company, an
accommodation provider and also a tourist attraction (Stonehenge). The tour operator would
provide the travel agency with a package consisting of transport, accommodation and a tourist
attraction for a day out. The accommodation provider would also use the travel agency as an
outlet of increasing awareness for their services, therefore as a method to increase their own
profits, while also maintaining their services at a level requested by the tour operator. The
accommodation provider might not be immediately accessible or might not attract tourists due to
the competition it faces, therefore on its own it might be risking bankruptcy from poor sales, so
the offer to provide their services to a tour operator as part of a package gives them a higher
chance of selling their services and so this offer would have a strong appeal towards the
organisation. These organisations from two different sectors had all received a resource that
would be of use to them, for example, the tourist attraction of Stonehenge would most prefer to
provide an education as a voluntary sector organisation which is fulfilled through the tourists
who book the package and the private sector organisations like the travel agency and transport
provider would aim to make a profit which is fulfilled through the fees from the sale of the
package, and so through this relationship all organisations from the different sectors are seen to
have been satisfied with the income/resources they receive.

This combination of organisations from different sectors is the most preferred option as they
provide a flexible and cheaper basis for package holidays and days out, compared to a single
sector package that might not suit the customers needs. For example, the day out that was
described above used private and public sector organisations would balance the tourists financial
capability with the industries various requirements, for example, Stonehenge is a voluntary
sector organisation therefore most of its maintenance costs as a tourist attraction is funded by the
admission fees, so a lack of income would result in it being closed down as a tourist attraction
and also causing a reduction in the appeal of the attraction in terms of its target market.