Vertical integration in the tourism sector

Abstract

[eng] This paper studies the impact of the economic strategy of vertical integration in the tourism sector. It is divided in two main parts, a theoretical framework, which includes definitions, types of vertical integration, benefits and drawbacks, as well as when is right for a company to follow the vertical integration strategy or not. Then the second part is a practical analysis of one of the largest tourism groups in the world, the Case Study of TUI Group, which includes a brief evolution of the mergers, take-overs, and long-term contracts that TUI Group has gone through, with the different points of view of the company, the consumers, and the European Commission. All that followed by the conclusions achieved after the research of the study.