Vertical and horizontal integration is a merge between the companies or a way in which companies buy each other out for greater advantage of commercial success and market dominance. Vertical integration occurs when two businesses merge or are bought in different levels in the chain of distribution and this could be a backward or forward integration for example a tour operator buys a hotel or a tour operator buys a travel agency. Tour operators will eligibly own all the different sectors or components of the chain of distribution and are able to control the whole system if they purchase or establish their own hotel, airline and travel agencies. Tour operators claim that doing this gives them economies of scale and allows them to offer better