Integrating the Tourism Industry: Problems and Strategies

Abstract

This paper addresses two interrelated issues in tourism development: horizontal integration within tourism's component sectors and attempts at vertical integration between them. The paper employs a conceptual framework adapted from regulation theory, to assess the dynamics of these processes, particularly in relation to airlines and hotels. Through examining some of the most important examples of both horizontal and vertical integration, it indicates how these have influenced contemporary strategies in the component sectors. The paper goes on to illustrate how trends towards Fordist organization within airlines have conflicted with post-Fordist trends in hotel operations, to undermine attempts at vertical integration across the tourism industry.