The Importance Of Interrelationships Within Travel And Tourism Organisation

In this assignment I will be analysing the importance of interrelationships within the organisation British Airways (BA).

British Airways have recently interrelated with an accommodation provider known as Mr + Mrs Smith. Because they now have a relationship, Mr + Mrs Smith can now put together package holidays where customers can book accommodation and flights together. On the Mr + Mrs Smith website here’s what they had to say about interrelating with British Airways ‘’ In the 10 years since Smith began, this is the first time we’ve ‘gone steady’ with a partner like this. We don’t just get into bed with anyone, you know; we must be sure that we understand each other before embarking on an exclusive relationship. But, with British Airways being such a well-loved and trusted airline, we’re happy to get serious. It’s good for Mr + Mrs Smith to have British Airways as a partner because customers can now access their accommodation range a lot easier. It will also be cheaper for the customer to book them both together as BA and Smith have a deal together. It also benefits British Airways as they will still be making a profit.

On the Mr + Mrs Smith website it also says why they wanted a partner ‘’ when it came to find a partner with similar interests (especially one with an extensive flight network at the fingertips) to make it easier for travellers to access our collection, there was only one choice to make. On their website it also gives customers benefits of booking a holiday through British Airways and Mr + Mrs Smith. Here are some of the benefits;

• Combine and save: book your flight and hotel together
• Earn up to 10, 000 bonus Avios per booking
• Get a free Smith extra at every hotel
• All holidays are ATOL-protected Inclusive 23kg checked-baggage allowance
• Airport, online or mobile check-in.

British Airways also have a relationship with AVIS car hire. To hire a car you must be over the age of 18 and you must hold a valid driving licence. BA and AVIS have just renewed their 15-year partnership together. When you book car hire and a flight together it benefits the customer because they will be saving money. It also benefits both BA and AVIS because they can each promote each other’s service and gain each other customers. They have also both worked together to open a new Avis car rental location at Heathrow Terminal 5, British Airways’ flagship terminal which will enable inbound visitors to drive freely around the UK and visit lots of different sites.

Again, like Mr and Mrs Smith accommodation provider you can receive AVIOS points when you book them together. BA Executive Club members will continue to earn three Avios per £1 spent with Avis, with a new minimum award of 700 Avios for rentals of at least three days and 500 Avios for rentals of one or two days. The reason why they use Avios points is to persuade the customer to book, because they know they will get rewarded if they do so. I also had a look on the British Airways website and they state the benefit of booking car hire with AVIS through BA. The benefits are;

• Great rates and flexibility
• Combine your flight with a car and save
• Convenient and extensive choice of locations
• Earn Avios on every rental
• All mandatory charges included
• 24-hour customer support
• Free additional driver for Executive Club members
• Join Avis Preferred at no extra charge and beat the queues with faster pick up.

British Airways Holidays managing director Claire Bentley said: “To be extending our long-standing relationship with Avis gives our customers continued access to premium products and services, as well as competitively priced car hire and fly-drive holidays worldwide”. British Airways have a relationship with an airport parking company known as Holiday Extras. When you book airport parking through BA the customer will save money, rather than booking it separately. You can earn 5 Avios per £1 spent when you book through our airport parking partners. You can earn up to 250 Avios when you pre-book valet parking at London Heathrow. It is important they work together because it enables BA customers who are travelling to the airport via car to leave their car there ready for when they return.

British Airways also have a relationship with the CAA (Civil Aviation Authority). I found out this information on BA’s annual report 2007 – 2008. And here’s what it said; ‘’Under the UK Civil Aviation Act 1982, the CAA must balance several objectives in making air transport or route licensing decisions where applications to operate a particular route are contested. These include encouraging British airlines to provide air services at the lowest fares consistent with safety; an economic return to efficient operators and the sound development of the UK air transport industry; furthering the reasonable interests of users; ensuring that British airlines compete as effectively as possible on international routes; and making the most effective use of UK airports’’. I also found minutes of evidence from the committee of transport and here’s what they had to say about the relationship between the CAA and British Airways ‘’British Airways’ relationship with the CAA is based on mutual respect and we recognise their professional expertise. We agree with the CAA on most policy issues, though there are occasional disagreements on important issues. ’’ British airways must ensure that they do the things which the CAA have asked or else they can get in trouble. They will be breaking the law if they don’t. If British Airways didn’t follow regulations and it got let out by the media this could cause great scandal for British Airways. Customers will not want to fly with them if they know that they are unsafe. British Airways must work closely with CAA to ensure safe travelling.

I have concluded that it is extremely important for these organisations to interrelate. Most of the organisations offer reward points (AVIOS) and cheaper deals. I think that British Airways feel that they need to reward their customers because they have spent extra money. When they interrelate, it benefits both the companies involved and the customers. When the customers receive rewards and money off it builds a good relationship up for British Airways and their customers. By having good customer relations will mean the customers will choose British Airways as their preferred air transport provider. It also will result in repeat business and excellent reviews. Although the CAA do not offer AVIOS they still provide regulations to keep the customer’s safe. If they didn’t work together then there could be the risk of a plane crash, and it would put other customers off. It’s also good for the organisations to work together because they can gain customers off each other. Also, as mentioned in previous assignments no component in the travel and tourism industry can survive on their own.