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ANALYSING SUPPLY ISSUES IN TOURIST TRANSPORT - Coggle Diagram
ANALYSING SUPPLY ISSUES IN TOURIST TRANSPORT
Theoretical perspectives on tourism and transport supply issues
Monopoly
Best described as the opposite of perfect competition, where a major business or firm is able to exercise a high level of control over the price of the product and level of output.
Oligopoly
An oligopoly exists where a limited number of producers dominate the transport sector.
In an oligopoly, each firm controls its price and output levels and there are entry and exit barriers
Criteria needs to be investigated in different market conditions
Contestable markets
Information and supply conditions are available to all producers and, whilst producers cannot change prices instantaneously, consumers can react immediately.
New and established firms are able to challenge rival businesses through pricing strategies.
Perfect competition
There is free entry to and exit from the market, assuming that there are no barriers.
There are a substantial number of consumers and firms, implying that neither can affect the price of an undifferentiated product
Competitiveness, transport and tourism: key relationships
The state and the supply of tourist transport: airline deregulation in the USA
Airline regulation in the United States
The effects of deregulation on the supply of tourist transport services
The implications for the supply of tourist transport can be examined in relation to
the effect on the functioning of the transport system
the effect on consumers, service provision and service quality
the corporate response of airline companies to the new competitive environment for air travel
the impact upon complementary infrastructure
The spatial effects of deregulation
Two approaches
a liberalised and unregulated system characterised by an open-skies policy
a regulated transport system where a country exercises sovereignty over its airspace
The supply chain in tourist transport services
Descriptions of the industry and its operation, management and marketing
The spatial development and interactions that characterise the industry at different geographical scales
Transaction analysis
Reduce the price to the consumer to boost market share
Increase their level of concentration in the tourism industry
Maximise profit by eliminating costs
Integration in the tourism sector: implications for the supply of tourist transport
Horizontal integration occurs where two enterprises with the same output combine to increase the companies’ control over output. It can occur through mergers, acquisitions, collaboration, franchising agreements and more complex contractual arrangements, and may induce concentration in the same business.
Vertical integration occurs when an enterprise with different interests and involvement in the supply chain acquires or merges with companies contributing inputs to its activities, or where output purchasers provide a ready market for the service.
Decreasing economic uncertainty in the supply system
The avoidance of problems related to contract breaking.
Integration is based on the concept of common ownership, which may involve the coordination or control of the production process or may have no direct effect on it
New research agendas in tourism supply research: tourism supply chain management
Analysing annual reports: company accounts
is used by companies to provide a review of the year’s activities
contains company accounts that are prepared within accounting guidelines in force in the country where the head office is based.