Marketing Essentials for Travel and Tourism

This document provides an overview of marketing essentials for travel and tourism organizations. It covers topics such as comparison and application of marketing mix, evaluation of different tactics applied by organizations, and development of a basic marketing plan. The document also includes a company overview of TUI, a multinational travel and tourism company, and its strategic objectives.

MARKETING
ESSENTIALS FOR
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT ......................................................................................................................1
TASK 2............................................................................................................................................1
P3. Comparison and application of marketing mix................................................................1
M3. Evaluate different tactics applied by organisations to achieve business objectives.......6
TASK 3............................................................................................................................................6
P4/M4. Develop a basic marketing plan for travel and tourism organisation........................6
D2. Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives...................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an important function in an organisation as it carry exchange of goods and
services. To conduct marketing, communication plays an important role because it guide people
to perform things in right manner by right people. It also include important and critical task
which is useful in creating value of product in front of customers (Aung, 2019). Market is a place
which is full of opportunities which is depends on the size and area of business. Duties of
marketing functions are interconnected with other functional units and also justify that why they
are important. This report is based on TUI, which is multinational travel and tourism company
incorporated in 1923 and situated in Berlin and Hannover. Company deals in hospitality industry
as it is one of the biggest travel company owing five European airlines. This assignment is also
cover comparison among the strategies which is adopted by TUI for their survival and
developing competition in market. Lastly, marketing plan is developed for TUI to achieve
specific goals and objectives.
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TASK 1
Covered in PPT
TUI is the tour and travel company which deals in hospitality industry and to provide excellent
services, managers of company need to update themselves by determining the current market
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conditions. To perform its marketing function company can use various approaches which are
appropriate for performing the marketing activities.
Travel and tourism business depends on the marketing functions to attract more and more
customers towards their offerings. For travel and tourism, marketing includes advertisement,
making promotional offers to attract new and existing customers.
Societal: It states that company need to put emphasis on the needs and demands of targeted
market to become their preference and also achieve competitive advantage over their
competitors.
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Many factors are present which impacts the marketing strategies of TUI and also have influence
over the customers. These are external factors which impacts the whole industry and the
operations of business. The marketing strategies which TUI opt needs to be match with external
components. For example, in the marketplace of UK, social media and internet is the best source
of marketing because of increase in usage of internet.
4

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Their interrelationship shows that if there is any requirement in marketing department
then it is fulfilled by HR department. In context of TUI, its marketing manager will
communicated regarding the requirements of candidate and HR manager will fulfil their
requirement and hire that candidate who have effective skills, knowledge and experience. So,
cooperation and coordination among these departments are necessary.
TUI is travel organisation which require huge marketing and advertisement to keep their
customers towards themselves for longer period of time and these actions are required to be
performed in huge manner by marketing team and involve huge investment. For this, many
actions are performed by finance department as if marketing department need money to perform
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its marketing activities then it becomes the duty of finance department to provide them suitable
budget to perform their activities and by this, marketing department develop a thorough report
according to the funds.
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TASK 2
P3. Comparison and application of marketing mix
Marketing mix defines the structure which is useful in setting many activities and
strategies. As company make use of these strategies in order to promote its brand name and
products in specific market. It is an important technique which improves the image of company
in terms of offerings its products to customers to sell them in an innovative way (Avila-Robinson
and Wakabayashi, 2018). For this, organisations always come up appropriate approaches and
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plans which keeps them in competition. In tradition era, 4P's are used to conduct marketing mix
but in modern time these P's are extended and become 7P's as marketing mix and its strategies
differs according to company because each and every organisation use their promotional
strategies to gain their position in market. It is the primary step which is useful in developing
marketing plan because it require lot of research and efforts to develop plan. It is an effective
tool because managers of TUI need this framework to update their current plans and strategies.
This can be understand by following table:
Basis Definition TUI Virgin Atlanta
Product Products are the
services which are
provided by company
for exchange of
something to their
respective customers
(Dodds and Jolliffe,
2016). These are
offered by companies
to achieve sustainable
competitive edge
which is the focal
point while developing
any strategy.
TUI provide its
services in five big
divisions and each
division provide
diversified product
lines. They also sell
different kinds of
products which guides
the customers to
choose product
according to their
requirement and
demand. It also
provide many features
which made it
different from its
competitors.
Company offer its
services to huge
segment by providing
high level customised
products which helps
the company to attain
competitive advantage.
In addition to this,
airline is concerned
with high digitisation.
Price Price is an amount
which is paid by
respective customers
for the exchange of
offerings and also
TUI used competitive
based pricing strategy
because the
competitors
information is easily
They use differential
pricing strategy
because their objective
is to provide their
services to different
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valuable for them
(Becker, 2016).
available due to their
existence in market
area. Currently,
company opt product
bundle pricing strategy
which reflects that
bundle of products are
sold out at cheap price
instead of sum of
single item.
Sometimes, they also
use optional product
strategy where set of
values are based on
product and also
charge according to
independent price for
offered services.
class of customers to
afford the cost of
tickets. The amount of
tickets are also varies
according to
destination and also
offer discounts at any
occasion or festival
time.
Place It defines a venue from
which the products are
offered to potential
customers. It is a
location by which the
manufactured products
are transferred to final
destination.
To place their products
TUI use two mediums
which are direct and
indirect promotional
mediums to sell their
products. They use
direct marketing
channels to directly
sell their products to
ultimate customers by
using online services.
Indirect, when
company use
Virgin Atlantic offer
its services in more
than 400 segments.
For this, they also tie
up with various airport
authorities to organise
their operations in
smooth manner. They
use online and offline
method to sell their
tickets.
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intermediaries like
wholesalers and
retailers. They also use
intensive strategy
where they try to
develop a chain of
retailers to make sure
that products are
available easily to
buyers.
Promotion It is conducted only
when products are
reached to its potential
place and prices are
also decided. It is a
procedure in which
communication is
done by
communicating it to
general public which
include advertisement
of products,
promotion, personnel
selling and so on
(Zhang, Cheung and
Law, 2018).
TUI follow multimedia
ways to communicate
with their targeted
customers which is
concerned with its
products. Their
foremost way of
promotion is
advertising which is
done by radio and TV
and due to their broad
capacity which
influences the huge
amount of customers.
Secondly, they use
social media
advertisement as it is
cheap and also
circulate information
more rapidly and also
conduct trade events
Company promote
itself by using TV,
advertisement,
newspaper and
hoardings. They also
use practical and
classy quotes as their
promotional
techniques.
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which is their personal
selling way.
People It include the
employees who work
for company to sell
products to their
respective customers.
It include staff and its
members who
communicate a
message to general
public and it also
include training
sessions for staff
members (Eletxigerra,
Barrutia and
Echebarria, 2018).
TUI operate its
functions with the help
of sales team. These
employees are well
trained with suitable
techniques which is
helpful for the
business customers
along with their
demands. For this,
company recruit those
candidates who work
in customers service
department which
tackle the complaints
regarding the problems
of products.
Company has around
8,571 employees and
also has a customer
and operation team
which include
operations regarding
flight, communication
and management.
Process It include those
services which deliver
the goods and services
to potential customers.
It defines the process
which depicts the
distribution of
products and for this,
customers pay for the
services which are
delivered to them by
Company provide
online delivery
services in which
orders are received
through online mode
and product is shipped
to delivery service
provider. They also
conduct research
regarding the
opportunities which
For availability of
tickets to their
customers, company
use online ticket
facilities so that
customers can easily
book their tickets in
minutes according to
their convenience.
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organisations (Yin and
Poon, 2016).
are present in market
and also understand
the needs of buyers.
Physical Evidence It defines the services
which are offered by
company and that can
be seen or touch and
also facilitate
communication while
purchasing products. It
depicts the physical
appearance which is
useful in attracting
more and more
customers towards
their business such as
it consider packaging,
branding and the
environment of selling
products and services.
Here, company
provide its offerings in
various designs, size
and colour which are
identified by
customers. For this,
users get friendly
online platform which
allows buyers to view
image at high quality.
In context of Virgin
Atlantic, experience
which is offered by
company is intangible
and also depends on
the popularity of brand
reputation and how
company is offering its
services in terms of
designs, interior and
behaviour of
customers.
M3. Evaluate different tactics applied by organisations to achieve business objectives
The marketing mix tool is useful in determining the suitable strategies which are used by
TUI in order to cover various aspects and areas in which company use its knowledge to become
more effective within the market (Gowreesunkar, Séraphin and Morrison, 2018). These
strategies are helpful for TUI in achieving the best results and also become more productive in
front of its customers. These strategies are helpful in attaining competitive advantage over the
market and also give tough competition to competitors.
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TASK 3
P4/M4. Develop a basic marketing plan for travel and tourism organisation
Market planning is a process which is useful in analysing the future data and also
formulate the strategies according to them for attaining the suitable objectives and targets. It
include various kinds of activities such as evaluation of current conditions, collection of
information, forecasting and making plans according to the targeted people (Halpern, 2016).
Marketing plans is a structure and a guidelines for an organisation and also necessary for
company to develop their suitable marketing plan.
Marketing plans are linked with the strategies of company and objectives to achieve
better results. There are three strategies which an organisation can adopt which are
differentiation, cost leadership and niche (Jin and Wang, 2016).
Marketing plan
 Company overview:
TUI is the multinational tourism and travel company which was incorporated since 97
years ago. It is the largest tour and travel operators which owns around 1600 travel agencies, five
airlines and across 380 hotels and 17 cruises. Company provide its services in all the markets and
holiday areas in world and because of this, it stands at the third position in the world with huge
customer base and reputation in market.
 Strategic objectives:
 The aim of company is to carry around 50% of UK's visitors to the number of attractions
of country from one place to another and also grasp major market area. TUI has opted differentiation strategy with the purpose of continuing it and offering
suitable products and services in unique manner and also attain competitive advantage.
 Vision and Mission:
The vision of company is to provide effective and efficient services to customers as
when they next time think about travelling they always consider TUI. Their purpose is to create
and serve best services to their customers and also provide best experience. Mission of company
is to offer quality service and also motivate another companies to provide innovative and creative
services to their buyers.
 Strategy:
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By analysing the current years, company is facing many problems from the side of
competitors and to become better to achieve competitive advantage (Kolb, 2017). For this,
company bring new packages for their customers. The strategy of company is to be different and
provide suitable service in specific time period. STP:
Segmentation: It is a process of classifying the market in small groups by considering the
features and characteristics. Segmentation is done by considering the gender, age, beliefs,
income, lifestyle, behaviour and so on (Nedelea, Ali and Alamgir, 2017). For this, the segmented
market of TUI is students as they travel at many places regarding to their studies.
Targeting: It is a factor which is performed once in the market segment in which
company target specific group by analysing their offerings and suitability (Okumus and Cetin,
2018). Targets for this, is students who are coming from different countries regarding their
studies.
Positioning: It defines the method by which company will position itself among the
targeted audience. For this, TUI opt and make suitable use of social media to promote their
services and reach to the maximum number of students. Marketing Mix:
Product: It defines the new services which are provided by company to students and
specially to college students in terms of accommodation, discount tickets, cheap fair and so on.
Price: At traditional times, company use competitive pricing strategy but at modern times
new services are created for college students and for this, TUI adopt low pricing strategy. It
happens because it is entirely new product for college students to keep prices low and because of
this company slowly move towards success (Pappas, 2017).
Place: At the beginning stage, TUI is introducing and launching its package in UK
market only, but now this project proves to be successful for company as they introduce it in
another potential market.
Promotion: Digitalisation is increasing on rapid basis and because of this, the use of
internet and social media is also gets increased. Thus, TUI is currently using various social
media channels for the promotion of new packages and also reach to wide range of customers
(Tripon and Cosma, 2018).
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People: Here, new employees are hired by TUI to handle this service but they all are
expert in their work because this project is introduced at low level. Also, the existing staff is
provide orientation regarding the new package with the help of promotion and also provide brief
information.
Process: This procedure is same as before online and offline, all the information
regarding the package is available through online mode on their official website and in current
times, internet is more trending among youth.
Physical Evidence: The promotional tools and promotions which company is using to
spread the positive side of package and the same actions will work for the physical evidence.
Furthermore, online presence of organisation provide information regarding the new services.
 Monitoring and Controlling:
It refers to the supervision and seeking out the existing and new products which company
is offering for considering the effectiveness (Pike and Ives, 2018). Control measures are taken to
improve the operations and remove any sort of mistakes from it. For controlling and monitoring,
TUI can use different types of methods to learn about the growth and success of package and
take suitable control measures.
D2. Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall
marketing objectives
The effective strategy and methods which are discussed and can be change to offer better
suggestions are as follows: Product: This service is helpful for college students who came from different countries
regarding their studies, TUI can develop new package and available to general public
such as to business professionals who travel for longer period of time. Price: Low pricing strategy is opted by TUI, but this put negative impact on the
promotion as people think it as less productive and helpful service (Pike, 2016). Place: The offered services are introduced in the market of UK and for this, company can
enhance and launch it in new market which is more potential. Promotion: Social media is used as the primary tool of promotion but TUI can use
different methods such as approaching to various colleges and also guide students
regarding their services.
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 People: More staff and new members can be employed for making their services more
effective and efficient in terms of success (Suhartanto, 2018). Process: Online procedure is used to improve sales and focus on having online booking.
 Physical Evidence: For making effective physical presence, TUI make use of
advertisements and also use digitalisation to make them more attractive.
CONCLUSION
From the above discussion, it is concluded that the marketing teams' job is to perform
suitable actions within an organisation which is helpful for other departmental units to conduct
their actions. In addition to this, marketing plan is develop which include different strategies as it
affect different sectors which is useful for company to become effective and efficient in different
area. Moreover, marketing plan is developed to company by which strategic goals are attained
and monitor the actions to provide suggestions to the company.
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REFERENCES
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Zhang, T., Cheung, C. and Law, R., 2018. Functionality evaluation for destination marketing
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