Marketing Essentials for Travel and Tourism

This document discusses the importance of marketing in the travel and tourism industry, focusing on the role of marketing in TUI. It covers the current and future trends in travel and tourism marketing, the interrelationship of marketing with other departments, and the evaluation of tactics used by TUI to achieve business objectives. The document also includes a strategic management plan for TUI.

Marketing Essentials for
Travel and Tourism
Level

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Introduction to concept of marketing and marketing process, including current and future
trend in travel and tourism marketing in general and tour operation industry in particular-......1
Explanation of roles and responsibilities of marketing function-...............................................2
Explanation how roles and responsibilities of the marketing relate to wider organizational
context of TUI-............................................................................................................................3
Analysis of how marketing influences and interrelate with other functional department of
TUI-.............................................................................................................................................3
Importance of Marketing ............................................................................................................4
Interrelationship of marketing with other departments...............................................................5
PART 2 ...........................................................................................................................................5
Management Report:...................................................................................................................5
Evaluation of various tactics which are applied by tour operator such as TUI for
demonstrating how specific business objective could be achieved-...........................................9
Strategic Management Plan:.......................................................................................................9
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing essential is very important for travel and tourism industry. It is helpful for
company to gain huge consumer attraction and success in marketplace.
TUI is known as TUI group. It is Anglo-German travel and tourism organization. It had
its headquarter at Hannover, Germany. TUI is one of the largest travel, leisure and tourism,
company across the world. Company had revenue of 18,928.1 million till 2019. The above report
includes the role of marketing and how it interrelated with other functional areas of TUI. An
introduction to concept of marketing and marketing process along with the including current and
future trends in travel and tourism industry. Explanation of role and responsibilities of marketing
function. Explaining how roles and responsibilities of marketing are related to company in wider
context. Report carried forward with analyzation of how marketing influence and interrelates
with other functional department of the TUI. Analysis of importance and value of marketing role
in context of the TUI. Critical analyzation and evaluation of significance of the effective
interrelationship among marketing function and various functional department of the TUI.
Report ends with the preparation of management report with the use of marketing mix and
evaluating various tactics which can be further demonstrated for achieving specific business
objectives. Preparing strategic marketing plan.
Part 1
It has been covered in PowerPoint Presentation.
PART 2
Management Report:
Marketing Mix-
Marketing mix is composed of various variable of the market which are mixed by
organization for generating desired response in targeted segment. It is associated with 4P's of the
marketing, 7P's of the service marketing and 4C's theories which are developed in 1990. This can
be described below-
7P's of Marketing
Mix
TUI Expedia
Product  TUI sold their products under
five categories each of them
 Expedia deals for booking
airline and cruise tickets,
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are served as isolated product
line. All of them are sold
under brand name TUI.
 They had wide range of
variety in their product range
with highly differentiated and
various features that are
offered to consumer.
 High quality products are
given by company.
reservation in hotels,
packages for vacation and
car on rents etc., along with
that they have number of
email products as well.
 They had limited product
range with common features
which their competitors also
offers to their tourist.
 Quality is not much
preferred by company.
Price  The pricing strategy which is
used by TUI is competitive
based pricing strategy.
 They had high price for
product and services which is
provided by them to their
consumer as compare to its
competitors.
 It uses product bundle pricing
for some products which are
clubbed together and sell at
lower price.
 The premium pricing policy
has been used by Expedia in
which they render the best
possible price to their
customers (Hall and
Williams, 2019).
 The had low pricing for its
middle class section and
best possible price for upper
class people (Dileep and
Mathew, 2017).
 It does not use bundle
pricing all of its products
are old at same price
whether wide range of
products are opted.
Place  It sells their products by two
marketing channels. Firstly it
directly sold to consumer by
 Expedia took help from
multiple system for
rendering service in their
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their website online and
secondly it sold to the agents
(Okumus and Cetin, 2018).
 TUI had it's head quarter
across Hannover, Berlin and
Germany and its group has
over 1600 travel agencies,
150 aircraft, 380 hotels &
resorts and 16 cruise liners
across various countries.
global distribution policy.
Amadeus and Sabre
reservation are to be used
for booking flight and
hotels.
 It has maintained its global
presence which had reached
local site in the United
States, Canada, China,
Belgium, France, Hong
Kong, Germany and
Australia etc., It has been
performing its operation
through several countries.
Promotion  Multiple media channels are
utilized by TUI for promoting
products (Pike, 2017).
 It mostly advertises on social
media website which mainly
focusing on Facebook,
YouTube and Twitter etc.,
 They also use various sales
promotion in which they take
part into trade exhibition and
events across countries,
render discounts offer on their
product & service to their
consumer.
 They also use multiple
channels for promoting and
advertising their products.
 Expedia uses Facebook and
Twitter for promotion and
advertising and follow up
their consumers (Stalmirska,
Whalley and Fallon, 2019).
 Mostly Expedia launches
frequent campaigns so that
they can deeply engage with
their customers. They had
launched online campaign
known as Friend trips
(Kumar and Mishra, 2019).
People  Friedrich Joussen is the CEO  Rich Barton, first CEO of
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of TUI.
 It has spread over 150
locations and 71473
employees are employed in
company (De Bruyn, Meyer
and Meyer, 2018).
 TUI also has diverse
workforce as this company
operate their business across
several locations and having
tourist of various culture and
religions.
the Expedia said that word
Expedia comes from
combinations of the speed
and exploration.
 It has spread across 60
countries and employee
over 15000 individuals.
 It has diverse workforce
from several cultures and
religion of different
countries.
Process  TUI operates 5 brands under
brand name of TUI.
 They are operating business
in all over the world.
 It comprises 1000 experts in
travel industry and several
management experts (Pappas,
2016).
 Under this brand name
Expedia host brand catering
for its huge consumer base.
 Company has maintained
relationship with its supply
team across world.
 Their teams work closely to
achieve their overall
objective.
Physical Evidence  Physical evidence of TUI can
be seen through its website,
social media sites and its 5
brand categories.
 It has over 60 million
traveller every month across
the world.
 Expedia physical evidence
can be shown up on their
online website, application
and host of the subsidiary
organizations.
 Expedia has 40 million
travellers each month.
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Evaluation of various tactics which are applied by tour operator such as TUI for demonstrating
how specific business objective could be achieved-
TUI has been rendering wide range of product and service range which is helpful for
company to attract tourist easily. Company also mainly emphasis on providing high quality
service to the tourist who are spending their holidays with them. Along with high standard
service, pricing of product has been significantly raised (Chiguvi, Madondo and Tadu, 2019).
Whereas Expedia has limited range of products for their consumer along with that they are
keeping pricing as per the society class- low pricing for middle income group and premium
pricing for high income group. Thus, TUI had gained its aim and objective effectively by
rendering high quality product and services to the tourist. They are gaining huge consumer
loyalty base due to that. With its unique features product they more and more consumer interest
has been gained toward company's product hence huge profit and revenue has been achieved by
company. The company is using social media website and campaigns for promotions which is
the best promotion strategy and by this they are gaining huge consumer support towards their
services. Expedia is also using social media platforms and majorly concentrating on the online
campaigns. They had maintained strong relationship with the suppliers and travel agent which is
helpful for them in maintaining smooth flow of business throughout marketplace. Overall these
tactics are helpful for company to gain huge profit and revenue further. They had gain huge
success over a period and had expanded across the world. Company has also achieved
competitive advantage among its competitors in marketplace and could sustain in market for
long term (Chang, 2017).
Strategic Management Plan:
Mission: To become market leader in travel and tourism.
Objective:
 To enhance sale of adventure package by 30% within 6 months.
 To increase number of customer 50% by 2021.
Situational Analysis:
SWOT Analysis-
SWOT analysis is strategic planning tool used for helping organization to identify
strengths, weaknesses, opportunities and threats which are related to the business competition
and its planning. The SWOT analysis of TUI has been described below-
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Strength-
TUI group has fleet of the aircraft and charter plan which are flying across more than 150
destinations. Company has total revenue of 18,928.1 million till 2019. The profit of company has
been growing significantly over a period. They are selling majority of holidays are directly sold
to individuals. Company is offering unique customized holiday package to their customer by
which they gain huge consumer attraction. Company had achieved strong leadership position in
the long haul travels. TUI employs over more than 50,000 employees all over the world. They
had across 30 million of consumer to the company and had developed dominance in this industry
(Sani and et.al., 2017).
Weaknesses-
The major weakness of company is it had intense competition from its rivals among
marketplace so that its state that company had less brand loyalty of consumer for its product and
services. As company is global tourism brand they are facing social & cultural issues in many
countries, and they had to follow culture, tradition and ethics of that country so that they can
huge consumer's attraction in wide range (Bricker, 2017).
Opportunities-
They can introduce various application for booking and reservation 0f holidays, even for
booking flight and hotels as well. This application and technology will further helpful for
company to reduce their labour and having smooth flow of business across their operation and all
departments. TUI could start operation in emerging market so that they can build potential image
in marketplace globally.
Threats-
The major risk which is faced by company is pricing environment which had become
major challenge to the company due to its competitive advantage. There are many of rivals
present in marketplace which is major threat of company, and they had to implement and access
their strategies as per the competitive rivals. TUI has involved risk such as Foreign exchange as
company is dealing across various countries, it also has interest risk due to huge business
operation and as deals in several countries it also had to ensure about each and every country
economic policies (Nedelea, Ali and Alamgir, 2017).
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PEST Analysis-
PEST analysis is tool which is helpful in conducting thorough external analysis of
business environment of any industry for which data is available. The PEST analysis of TUI has
been described below-
Political Factor-
The Political issue of each and every country widely affect who, when and where an
individual will be travelling. The Brexit has huge impact on exchange rate, tax and visa
requirement. As TUI is travel and tourism company the exchange rate widely affect company as
they had to deal across the world. The terrorist attacks had also affected the travel and tourism
companies as fewer travellers to visit the country where terrorist attacks have been happened.
Economic Factor-
Currency and exchange rate affects the value for money to the customers. Brexit had an
extreme impact on the company and the costing of holiday. TUI had to mai8ntain its costing as
per the market situation as there is rescission in market due to the situation of Brexit the
purchasing power of consumer has been declined. It is multinational brand with operations
across 180 countries it also supports economic growth of several countries through travel and
tourism. They also provided job stability in several countries as well (Sarpong, 2018).
Social Factor-
The social attitude and lifestyle if an individual changes time to time as per the market
trend. Due to rise in solo traveller TUI had to develop more solo traveller package so that they
can keep up with emerging trend ad gains huge consumer attraction. They had developed brand
image and consciousness among marketplace and consumer so that they could gain huge loyal
consumer base. Travellers also wants to have instant access to the travel package through
website so that it can save their time and further they can pay for that also on website.
Consumers are now along with travel need their safety also so TUI must take care of their
consumers safety so that they feel safe to travel with company.
Technological Factor-
TUI could introduce advance technologies in their companies operation so that they can
easily access with consumers. They can include various application, social media, gaming and
virtual experience into their tour and business operation so that they can render their traveller
with amazing experience of tour and could have smooth flow of operation in business. With
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online and internet sale interaction among consumer has been declined the TUI must be aware of
interacting with their customer and replying to their messages quickly and getting feedbacks
from them further(Becker, 2016).
Marketing Mix:
Marketing mix is set of the action or tactics, which company utilize for promoting its
brand or product in marketplace effectively. The 7Ps of marketing mix can be used for
explaining this which are described below-
Product-
New product has been launched by TUI in market place which is “Adventure Holiday
Package”. Under this package they are providing the adventure trip to age group of 20-35
individuals. They are including 7 sites which are full of adventure. In the package they are
providing them amazing thriller experience of tracking, camping and thrilling ride to the nature.
This trip will be of 7 days and all expenses are included in the package itself and it could be the
solo trip (Aung, 2019).
Price-
They had kept minimum pricing for the package as the age group which they are focusing
could not pay such high amount for the package. With the minimum pricing they can have gain
huge consumer attraction of each age group which have been mentioned by them. With
minimum pricing they are including all over package expense of travel, and they are rendering
standard services to the customers.
Place-
They will be selecting the places which can attract individual effectively. The place
which is full of thriller, adventure, camping and natural attraction so that the consumer could
have an amazing experience of trip. They will also be selecting various sea adventure that will
gain huge consumer's interest easily. Attractive and adventurous places are being selected by
company to attract wide range of consumer to their package.
Promotion-
The effective promotion strategy will be used by company. They will be launching
several campaigns in the colleges so that the more and more youth can be attracted toward their
packages they will be also advertising on social media channels with amazing adventurous and
thrilling video so that consumer are attracted towards them and get involved in the tour and had
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amazing experience. They will also be launching the campaigning in the malls so that other
generation can also be attracted towards their package.
Process-
They will be having online sale and marketing and thus individual could purchase the
package online and offline basis. TUI will also be offering discounts to first three travellers so
that more and more individuals are being attracted for purchasing this tickets quickly and hurly.
People-
The age group of 20 to 35 people are entitled for this package. They are mainly
concentrated under the package. They can opt this package and have thriller experience across
world.
Physical Evidence-
The package is available on company's website and social media channel where an
individual could easily purchase the package.
STP:
TUI will segment middle class and upper class people throughout its new products
marketing strategy. They had introduced new product which is developed for the middle class
and upper class people who can have their weekends well spend. The target group is age group
of 20 to 35 who can opt this adventure holiday package and enjoy the trip. They above age group
is also not eligible for this package as they can have set the age criteria for that package due to
the thriller which are induced in this package. Positioning of this product is that they are
rendering premium offering to their traveller and letting them to enjoy the standard services
which will be given by them to their customers (Alves and Azevedo, 2018, September).
Monitoring and controlling:
` TUI will be using the KPI key performance indicator for analyzing the performance of
company's product. By this they can analyze whether there product is performing well in the
market or not if they can have another measure so that they will be updating it and having
success further. TUI could sustain in market with the new product with appropriate strategy and
plans (Al-Janabi and Mhaibes, 2019).
Budget:
Expenses Amount
Advertisement £200
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Rent £5000
Salary £10000
Total £15200
CONCLUSION
From the above study it can be concluded that the Marketing plays a major role in growth
and development to travel and tourism organization. All company's department are interlinked
with each other and had huge impact on company's overall success. Company could easily gain
huge success and consumer attraction towards its products and services. The travel and tourism
company could gain huge success if they are implementing effective marketing strategies so that
they can get huge success further. By effectively analyzing market situation travel and tourism
company could compete with its rivals effectively in market place and sustain for long term.
There is huge competition for companies in marketplace to compete with them companies had to
implement effective strategies and policies with complete market watch that they can lead in
market. By implementing these policies and strategies company can gain huge success and
achieve its objective and goals effectively.
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