EPT 4/2016 (36) | ISSN: 1644-0501 | www.wnus.edu.pl/ept | DOI: 10.18276/ept.2016.4.36-10 | 115–124 INTEGR ATION IN TOURISM DiSTRIBUTION CHANNELS AND BARGAIN POWER OF TOUR OPER ATORS OVER ACCOMMODATION ESTABLISHMENTS: TUI AND THOMAS COOK CASES Mustafa Boz Canakkale Onsekiz Mart University, TURKEY e-mail:
[email protected] Keywords tour operators, mergers in tourism, vertical-horizontal integration, tourism marketing, sustainable tourism marketing, accomodation establishments Abstract Nowadays, large international tour operators, play an important role in tourism distribution channels. They can significantly affect international tourism flow and dominate accomodation establishments and other businesses particularly in mass leisure tourism. Through mergers and acquisitions in tourism industry market structure also changes. This study is supported by secondary research focusing on mass tourism distribution channels and the pricing problems arising between tour operators and accomodation establishments. First of all, vertical and horizontal integration in tourism industry is stated through TUI Group and Thomas Cook Group cases which are two of the largest tour operators in Europe. Afterwards, bargain power of tour operators over accommodation establishments is tried to expose. In conclusion, some recommendations are given in the light of literature. introduction After fifties, due to changes in economic, socio-cultural, and political life such as shorter working weeks, increase in revenues, liberalization of economies and politics, development in infrastructure, and superstructure like new transportation, communication, and accommodation facilities, the middle and lower income level public were able to afford holidays. The number of international tourist arrivals rose from 25 million in 1950, to 435 million in 1990, 675 million in Economic Problems of Tourism 4/2016 (36) 115 mustafa boz 2000, 942 million in 2010, 1.1 billion in 2013, and 1.14 billion in 2014 (UNWTO, 2012; UNWTO, 2013; Scowsill, 2015).