vertical integration

[gem17]

what is vertical integration and what are the advantages and disadvantages of it?

[BenDToy]

I assume you are referring to the business concept and not something to do with travel, despite the category in which you posted. I am not willing to do your homework for you, but I can steer you a bit. VI is the integration (buying up) of upstream and downstream businesses ie customers and suppliers. Sample advantage - you keep more of the margins with the same owners. Sample disadvantage - these may not hold on to their customers and suppliers because they in turn are subsidising the profits of a competitor.

[gem17]

actually i was looking for the travel concept but thanks anyway. i know what it is. just wanted the advantages and disadvantages.

[gem17]

i think stoo_pid would be perfect to answer this question

[stoo_pid]

Flattery will get you everywhere gem17!  Sorry, only just seen this, hope its not too late.

There is a lot more to this question than you could answer here but to start you off:

Destination
Advantage - Increased numbers of visitors
Disadvantage - External leakage is likely to be high

Customer
Advantage - Standards of service consistent
Disadvantage - Price fixing

Company
Advantage - Reduced costs
Disadvantage - None really (that's why they do it!)

If you have more time you could contact Tourism Concern in London (or if you live there you can visit their library).  Click on this link for details:

http://www.tourismconcern.org.uk/resources/information-requests.html