What does horizontal integration involve in tourism businesses?

Horizontal integration in tourism businesses refers to the joining together of two or more companies that operate at the same level in the market, typically within similar sectors of the industry. This strategy is employed to consolidate resources, increase market share, and enhance competitive advantages. By merging or acquiring companies that offer similar services, such as hotels, travel agencies, or tour operators, firms can achieve economies of scale, streamline operations, and garner a stronger presence within the market.

For instance, if two hotel chains merge, they can effectively share marketing efforts, reduce costs through centralized purchasing, and combine their customer bases to potentially increase bookings. This strategic approach is beneficial for addressing competition and improving profitability by creating a larger, more robust entity capable of competing effectively.

The other options do not align with the concept of horizontal integration. Acquiring businesses at different supply chain levels pertains to vertical integration, which focuses on expanding across different stages of production or service delivery. Collaboration with local governments is more about partnerships and joint efforts to enhance tourism strategy rather than merging business entities. Lastly, expansion into new geographic markets refers to a growth strategy that typically involves entering new areas rather than combining with existing companies at the same market level.