Saturday, October 5, 2019
Merging in the UK Package Holiday Market Essay Example | Topics and Well Written Essays - 2000 words - 11
Merging in the UK Package Holiday Market - Essay Example Both Cook and MyTravel enjoy an oligopolistic stature in the UK travel market as there are very few big players competing with one another over branded tourism products and services (HighBeam Research 1998). By the time Thomas Cook and MyTravel merged with each other to form the Thomas Cook Group, the trend in the UK travel sector was beginning to change. The concept of franchising was getting popular among giant business houses. As a consolidating approach to this changing scenario, another acquisition was soon on the cards. TUI Travel tied up with First Choice in September 2007, marking a milestone event in the UK travel industry. Following these two mergers, the entire travel sector assumed new looks in terms of operational mobility and packaged marketing initiatives. As the two major players in the global travel hunt, both operators took great care of their respective areas of interest, including hotels, cruises and charter airliners. Moreover, a seamless retail network involving major travel agencies was established to provide a convenient one-stop travel experience for vacationers. This paper is going to analyze in detail these two case studies and probe into a number of strategic issues that set off the mergers. Additionally, the paper will also look into the post-merger economic challenges and how they are going to affect the future of the travel market over the next few years. To address these issues systematically, the paper will answer three questions. 1. Why did Thomas Cook and MyTravel, and TUI and First Choice merge? What benefits have been gained from the mergers? What problems have had to be overcome, and what challenges do they face in the light of the current global economic downturn? The Mediterranean coast has always been the most sought after tourist destination in Europe. Whether it is leisure travel for rejuvenating the mind and the body or high-priority business trips, the Mediterranean destinations provide value for money for the travelers throughout the year.