Marketing Essentials for Travel and Tourism

Marketing Essentials for
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explaining roles and responsibilities of marketing function within Thomas Cook...............1
P2 Discussing how roles and accountabilities of marketing relate to wider organizational
context.........................................................................................................................................3
LO 2.................................................................................................................................................4
P3 Comparing the ways in which different organization apply the marketing mix....................4
LO 3.................................................................................................................................................6
P4 Marketing plan.......................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is defined as procedure of selling and promoting a product or services in
market, which help to satisfy the needs and fulfill the expectations of customers. This process
contribute to increase sales and bring many advantages for companies. By combining current
and future marketing trends, in recent time organizations gaining a lot of benefits. The current
assignment will be based on Thomas Cook, which included in category of leading travel
agencies in the UK. Brand offers the best and unforgettable travel services to its customers and
other people as well. The study will explain accountabilities and roles of marketing function in
firm and also define how it relates to wider organizational context. Furthermore, the assignment
will justify a comparative form in context of two companies that apply marketing mix to achieve
their business objectives. The report will clarify basic marketing plan in regard to firm to meet
its marketing objective.
LO 1
P1 Explaining roles and responsibilities of marketing function within Thomas Cook
Marketing function or department within any company, play a vital role in term of
developing effective plans, strategies and promoting a product or service in market by using the
most influencing tools (Davila and Ditillo, 2017). The department has different roles and
responsibilities within the organization that are;
Roles-
Identify customers-
The most significant role of marketing function within chosen company is to determine
potential and right customers for its travel services (Iglesias and et.al., 2020). They identify
people who are interested in exiting offers of Thomas Cook and seeks to use from longer period
of time. By determining prospects buyers, they support firm in term of selling offers, products
and services which in return enhance experience and satisfactory level of each traveler.
Retain buyers-
Marketing department play another role in firm by retaining potential travelers and
gaining attention of new, which turns into increasing customer base of company. They create
value for individual consumer by conducting effective communication practice via digital
marketing sources such as Facebook, Twitter etc. After determining right buyers, marketing
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function contribute to retain them, which is actually very essential for organization in term of
increasing strong customer base.
Market research-
Furthermore, they also conduct market research in systematic and productive manner to
gather useful and beneficial information that may relate to customers, rivals, key market trends
etc. By conducting detail market investigation, the function help to reduce uncertainty around
decisions which management may made to promote and sell items (Søilen, 2017). Market
research help marketing team to define its target customers and business growth opportunities.
Accountabilities-
Monitor competitors-
Marketing function is responsible for major activities, for example, they accountable to
monitor rivals and their actions. It provides many benefits to Thomas Cook, in term of collecting
important information about competitors and identifying what they plan to offer for increasing
their sales. There are varied types of tools, models and approaches accessible in the business
world, which department may use to monitor its rivals and collect data about their tactics.
Generate brand awareness-
Along with above, they have a huge accountability in context of company, which drives
their attention towards taking use of new methods that help to generate brand awareness at
international level. It allows administration to make their venture viable and profitable within
Travel and Tourism sector against its rivals (Abou-Shouk and Soliman, 2021). By using
customer loyalty programs, arranging events and campaigns, marketing department helps
company in term of generating brand awareness, which contribute to increase customer base.
Product promotion planing-
Marketing department is accountable to create appropriate plan which they may use to
promote travel services of Thomas Cook at global level. Planing is the key elements that
contributes in success and growth of company in effective manner. Marketing section is
responsible to create content that influence each customer and gain their attention towards travel
service purchase. It included several activities, practices and require hard work to make
everything perfect.
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P2 Discussing how roles and accountabilities of marketing relate to wider organizational context
The above roles and responsibilities of marketing department is related to Thomas Cook
in term of collaboration, which they conduct with varied functional units.
Marketing collaborate with HRM-
Both departments work together for commercial purpose. Marketing department by
conducting market research gain benefit in term of key customer's information. Furthermore, it
enables section to collect data about job requirements in market, which they may share with
human resource department. This role is interrelated with organizational context in form of
sharing benefits with HRM. It enables HR manager to develop plan in context of employees
requirements accordingly. The collaboration provides valuable benefits to company as well in
term of increasing workforce and productivity while operating in its sector.
Marketing coordinate with IT-
Marketing department collaborate and coordinate with other functional departments as
well along with above, which in return maximize productivity and profitability of Thomas Cook
They both coordinate with each other in term of providing support, for example IT support
marketing section to solve their technical issues as they are able to handle these problems.
Information technology team have knowledge about how to update system and use it in
manageable manner. It enables department to promote and advertise services at global level,
where potential travelers are seeking to get best travel offer.
Interrelation between marketing and finance department-
Marketing section is responsible to promote Thomas Cook services in market, which
gain benefits and these benefits are interrelated to wider organizational context in term of giving
chance to finance department for managing overall account of firm which has increased after
service launch (Krizanova and et.al., 2019). Collaboration and coordination between these two
departments contribute to increase sales, profits margin and productivity of firm.
Importance of interrelationships between marketing and other departments-
From above discussion, it can be analyzed that interrelationship between marketing &
other functional department is quite beneficial and essential for company as it enhance customer
satisfactory and experience level after obtaining services of Thomas Cook. Interrelation of these
sections provide organization chance to generate more revenue, gain competitive edge and hold
its position in sector for longer. It enables firm to achieve set aims and objectives in effective
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manner, which is not possible for each brand to do. Furthermore, along with above advantages,
interconnection between marketing and other sections provides benefit in term of accomplishing
functional and operational activities that may conduct at workplace. It can be said that
interrelation of these departments relay on the basis of dependency, which allow each of them to
complete daily work and provide desirable outcomes. It helps to increase the speed of
understanding, working and completing work.
LO 2
P3 Comparing the ways in which different organization apply the marketing mix
Particulars Thomas Cook TUI
Products The company deal with different types
of holiday packages, provide luxurious
destination, hotels, mobile sites and
insurance services to their customers.
It offers high quality tour package to
their customers. It offers produces
online and then sells to wholesalers who
can easily sell to different retailers as
well.
Price Thomas Cook uses half-way premium
pricing strategy in order to attract right
customers. Further, during off seasons,
it also provides good discounts to meet
target (Polat and Arslan, 2019). In
addition to this, tour packages of a
company is also available at reasonable
rates.
It uses premium pricing strategy which
encourages customers to purchase the
products. Also, it provides different
offers and discounts to their customer
during on and off seasons that helps to
gain high competition. This in turn
assist business to enhance the overall
brand image.
Place Currently, company have its location at
223 different places in85 cities. It also
deals online as well as offline. Recently,
the company also acquired holiday
lifestyle company as well as Sterling
Holiday resorts.
It uses own outlets that has been
established in UK and other nation, to
offer travel services to target customers.
Furthermore, it has 1200 franchise
partners and 1600 travel outlets where
skilled applicants are offering the best
offers to customers. Through these
distribution methods, firm satisfy each
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traveler, which is quite beneficial for
organization growth.
Promotion It uses both modern and traditional form
of marketing tools such as launch ads in
magazines, newspaper, YouTube, TV
and Internet. It also sponsors big events
in order to increase its brand visibility.
In contrast to Thomas cook, TUI uses
multiple media sources such as social
media etc, in order to promote its
services and new offers at international
level. It uses traditional marketing
sources as well in term of advertising
services through television and radio,
which is quite beneficial in form of
promoting offers quickly.
People Being a big service brand, it focuses
upon their customers and employees.
Another key people includes in its sales
team or tour guides (Blut, Teller and
Floh, 2018).
In order to gain competitive advantages,
company focused on increasing
productivity for which they plan to hire
new people and train existing
employees. All the current workers have
been trained in persuasive approaches,
which in return increase their abilities
and skills that they used to improve
brand image and boost performance
level in Travel & Tourism sector.
Process It has a good process such that during
enquiry, customization is done as per
customer requirement. It also ensures all
partners in order to deliver best
experience to their customers. This is
considered as a backbone process for a
firm.
In term of process, TUI has installed
varied systems at workplace that help to
make all services accessible for
travelers. The action that firm has taken
contribute to increase customer
satisfactory level. Furthermore, along
with this act, company also implement
online service system.
Physical Currently, company has more than To show existence in industry, TUI uses
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evidence 32000 hotels in India and 15000 outside
India. It also merchandises like bags,
pens, books, caps that shows as a
physical evidence.
billboard and advertise its services
through social media pages where it has
created official accounts.
LO 3
P4 Marketing plan
Executive summary
The marketing plan is based upon Thomas Cook who offer a tour package to visit South
India with many benefits. The plan covers situation analysis in which pest and swot conducted
that helps to determine the internal and external factors that may affect the new package. Also,
the plan provides competitive analysis in which two or more companies has been compared in
order to differentiate itself. Moreover, with the help of marketing mix, company determined
marketing strategy which helps to promote business products. Lastly, budget has been defined,
along with monitoring, reviewing.
Company overview
Thomas Cook is a British global travel whose headquarter is in UK. The quoted firm is
operating at global level with more than 21000 employees. Currently the company is highly
affected due to pandemic because of decreases in tourists. Therefore, to attract visitors, chosen
group will offer new travel packaging which covers South India for 7 days. In this travel
package, company benefited customers by offering free lunch every day, along with spa and
luxurious accommodation services. This in turn assists firm to raise the financial service and
come back on competition as well.
Vision: To become a leader of travel agency.
Mission: To offer exceptional service to all people.
Situational analysis
In order to analyze the external environment of a company, Pestle analysis will be used
which is as mentioned below:
Political factor: Fluctuation in the political factor affected the performance of a company
in negative manner. Also, due to terrorism attack and pandemic decrease traveling and this affect
the business in negative manner (Othman and Jamal, 2017). That is why, Thomas Cook chooses
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India as a destination because has a stable political condition and tourists will also enjoy the
place as well.
Economic factor: The factor deals with economy of a country, as per the current
scenario every country have low economy due to pandemic crisis. Therefore, offering such
package will help to provide employment opportunities to many people. Apart from this, due to
inflation rate company's performance is also affected in negative manner, that is why company
have to develop strategies.
Social factor: Travel and tourism sector is completely relied upon people's perception
and therefore, company decide their packages by considering disposable income of people.
Moreover, there is an increasing demand of travel and to meet the same, Thomas Cook keep
offered new travel package in order to attract customers.
Technological factor: This somehow affect the business in negative manner because
people use Internet which has allowed people to search plans as per their desired (Visentin and
Bertocchi, 2019). Therefore, to keep it in mind, Thomas Cook also offered online services that
attract customers.
Legal factor: The company is operating at global level and that is why, company
complies with different laws and regulations that helps in smooth functioning of a business.
Further, while designing travel packages, firm ensured that it adhere with health and safety laws,
employment law, intellectual property etc.
Environmental factor: Sudden change in the climate might affect the tour package in
opposite manner. Also, company must complied with sustainability act in order to minimize the
impact of environment upon company.
To examine how the micro environment factor affect the internal environment of a
company, SWOT framework will be used. Such as:
Strength Weakness
 It has a strong brand image and
considered one of the leading leisure
travel agencies in UK.
 It has a strong financial position that
helps to manage business (Aksu and
BAYAR, 2019).
 It occupied a limited market share due
to intense competition.
 Due to economic slowdown, travel
agency have experienced a huge break
down of tourist.
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 The offer and prices of Thomas Cook
are affordable and accessible as
compared to others.
Opportunities Threats
 Having a strong financial performance,
company become the largest travel
agency within Europe and UK.
 In order to expand business, quoted
firm also boost its share prices.
 It has to invest within technologies in
order to boost up their performance.
 Uncertainty in airline industry is
considered as the biggest threat for
Thomas Cook (Bhargav, 2017).
 Strong competition in market is also
affected the business in opposite
manner.
Competitive analysis
Particulars Thomas Cook TUI
Products/services The company offered different
travel and tourism packages to
their customers by analyzing the
demand of customers. Also, it
deals in insurance services for
personal accidents, medical
expenses. Further, it offers site
tours, hotels and cruise facilities
as well.
The services offered by TUI is
easy to use and it designed
packages through effective
market research.
Price It adopted mid-premium pricing
strategy
It uses competitive pricing
strategy to attract customers.
Promotional Tool Uses only modern form of
promotional tools which includes
social media, offers, discounts.
It uses both traditional and
modern form of marketing tool
i.e. TV ads, social media,
newspaper, magazine.
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USP Dealing at different areas is
considered its USP and also offer
all-inclusive holiday packages.
Offer inclusive holiday package
is USP.
Segmentation: Company uses demographic segmentation in which it will target people from 30
to 55 age group. This in turn assists to attract range of people towards it and also promote the
tour package as well.
Targeting: It will use differentiated marketing in which specific group market will be targeted.
Positioning: Including different service (free of cost) within tour package will consider
positioning for Thomas Cook.
Marketing mix
 Product/service: Thomas Cook will offer new tour package of India for 7 days. In this,
different services will includes such as traveling, spa, rides, lunch, luxurious
accommodation etc.
 Place: Currently the company is in UK, but the tour package is belongs to India. Also,
people from different country will enjoy the services (Camilleri, 2018).
 Price: In order to launch the new package, company will use penetration pricing strategy
in which low rates will be offered that helps to attract customers. As people are also
ready to buy packages because of attractive benefits.
 Promotion: In order to promote the new package into market, Thomas Cook uses only
modern form of marketing which includes post, blogs and use of digital marketing. Also,
company keep post upon Facebook regards to new tour package that helps to attract
customers.
 People: To launch tour package successfully, there are key people who contributed such
as employee, customers, board of directors, suppliers etc,
 Process: The process of new tour package is simple to use such that people will easily
enjoy the offered services. Like, they can pay amount in installment and this simple
process attract customers.
 Physical evidence: Building, logos, brochure, post of Facebook, employees and
customers are considered as a physical evidence.
Budget
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Particulars Amount (£)
Personnel 120
Traveling 200
Accommodation service 300
Stationary 80
Promotion expenses 200
Miscellaneous expenses 450
Total 1350
Monitoring and review
It is necessary to monitor and review the entire marketing plan quarterly. For that, quoted
business will use benchmarking tools in which specific goal will be defined for each quarter in
order to identify the performance. Also, marketing manager should ensure to review the
performance at each quarter, if there is no increment in sales, then modifications can be done to
attain the set objectives.
CONCLUSION
By summing up above analysis, it has been concluded that marketing department by
creating effective tactics and using beneficial approaches has increased profits margin of
company and also enlarge its customer base, which is very essential to maximize in context of
gaining competitive edge. Furthermore, from above discussion, it has been identified that by
conducting market research and utilizing social media channels like Facebook, Instagram etc.
marketing section has contributed to generate excellent brand image. Moreover, by collaborating
and working with HRM, Customer service department, IT and finance section, they enhanced
the productivity of firm even better than last few months or years. It has been determined that by
applying suitable and effective marketing tactics, both companies are gaining benefits and
attracting as well as retaining customers for longer period. Through marketing plan, organization
has successfully achieved its marketing objectives because it has used varied approaches and
techniques to achieve these.
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REFERENCES
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