Marketing Essentials for Travel and Tourism

This document provides an overview of the key roles and responsibilities of marketing in the travel and tourism industry. It explains the marketing environment and its interrelationships with other functional units. It also discusses the elements of marketing mix and how they are applied by TUI and Booking.com.

MARKETING
ESSENTIALS FOR
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation of Key Roles and Responsibilities of Marketing function...........................1
P2. Discussion of Roles and Responsibilities of Marketing related to wider organisational
context....................................................................................................................................3
M1. Analysis of Roles and Responsibilities of Marketing in Context with Marketing
Environment...........................................................................................................................5
M2. Analysis of Interrelationships between Marketing and other Functional Units.............6
TASK 2............................................................................................................................................7
P3. Elements of Marketing Mix.............................................................................................7
M3. Evaluation of Different Tactics by TUI to Achieve Business Objectives....................10
TASK 3..........................................................................................................................................10
P4 & M4. Development of a Marketing Plan.......................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing refers to all those activities, procedures and processes which are adopted as
well as implemented within a company in relation to appropriately and essentially make
customers familiar with their services and products (Hair and et. al., 2015). It is one of the most
essential functions within Travel and Tourism industry that allows different companies to attract
as well as retain customers, along with gaining appropriate market share. The report below is
based on TUI AG, which is one of the most recognised travel and tourism companies in London,
United Kingdom. The report covers a detailed explanation of marketing role within the firm, as
well as the marketing environment, along with discussion related to interrelationship between
marketing and other functional units of the organisation. Furthermore, the report covers
comparison of how different hospitality organisations use elements of Marketing Mix in
achieving their objectives. In addition, the report undertakes development of a basic marketing
plan to meet business objectives for TUI.
TASK 1
P1. Explanation of Key Roles and Responsibilities of Marketing function
Marketing is a process of ensuring that each customer within the market is familiar and
attracted towards the service or product which the company is offering. It helps an organisation
in communicating in niche as well as potential markets in context with their offerings and
perceived benefits for customers associated with the same (Nguyen and Wait, 2015).
There has been a major development witnessed within marketing concepts through the
years. These factors are discussed below:
CONCEPTS DESCRIPTION
Production Concept
This concept emphasised on the idea that
production within a company must be
channelised upon development of offerings
that could be produced efficiently and create
demand due to being affordable.
Product Concept It followed the philosophy that only those
products are preferred by customers that are
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available at higher quality as well as price.
Selling Concept
This focuses on the aspect that aggressive
selling measures must be adopted by
organisations in order to sell their offerings
amongst customers
Marketing Concept
Customers are the central point of attraction
and practice within this concept. This means
that companies implementing this approach
channelise each of their activities towards
achieving needs and wants of customers.
Societal Marketing Concept
Within this concept, companies adopt methods
wherein society is also benefited alongside
customers, through the value provided by the
company.
Additionally, there are several roles and responsibilities of marketing function within
TUI, which are explained below:
RESPONSIBILITIES DESCRIPTION
Research
One of the major roles of marketing function
within travel and tourism organisations such as
TUI is that it helps the firm in engaging in
market research, which undertakes research on
different spectrum and areas, such as,
preferences of customers, trends, technologies,
etc.
Brand Management Another aspect within roles and responsibilities
of marketing function within TUI is that it
helps in managing brand of the firm. It
undertakes competitive analysis which helps
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the company in identifying prospects which
would help the organisation in achieving brand
equity.
Product Development
This role of marketing function within TUI
relates with effective development of offerings
by the company. This means, the function is
responsible for producing services that are
affordable, along with perceived quality. This
is done by marketing through acquisition of
feedbacks from customers, along with analysis
of the overall marketing environment (Yan
and et. al., 2019).
P2. Discussion of Roles and Responsibilities of Marketing related to wider organisational
context
Marketing function is one of the crucial functions within an organisation that interrelates
with other functional units of the company. Furthermore, the roles and responsibilities of
marketing too have appropriate relation with these units. Some of the most prominent aspects
within the same are discussed as under:
ROLES AND RESPONSIBILITIES DESCRIPTION
Marketing and Sales One responsibility of marketing function
related to wider organisational context is to
retain the existing customer base and to
cultivate new individuals to the organisation. It
drives sales of the company due to having new
customers associated with the firm. This is
possible when the company provides services
which are asked by the customers and
appropriate market study is performed by the
marketing department in analysing the
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preferences within the market. So, maintaining
an expanding the customer base is directly
connected with enhancing sales. For instance,
there is a high preference within customers in
context with taking adventure holidays.
Marketing department would analyse this trend
and would interrelate with sales department so
that economies of scale could be well achieved
by marketing that service amongst the
respective market (Kakarot-Handtke, 2015).
Marketing and HR
HR Department of a company is associated
with managing and appointing staff within the
firm. Marketing and Human Resource
Departments have an effective relationship.
For instance, while HR department of TUI
undertakes responsibility of bringing in more
competent personnel for the organisation, even
in marketing department, whereas marketing
function plays the role of advertising and
promoting the vacant job roles within the
market. This cross functional relationship and
role of marketing function helps in achieving
the agenda of HR department within TUI in
context with getting an appropriate workforce
for the company.
Marketing and Finance Finance Department undertakes understanding
and maintaining long and short term financial
needs of the company. There is a correlation
between the marketing as well as finance
department of TUI. While financial department
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is concerned with management of funds to
serve customers effectively, marketing
function emphasises on effective advertising
and promotional activities for promoting
offerings of the company. While the former
intends to save funds and allocating a set
budget for marketing activities, the latter might
engage in procedures that could force the
finance department to alter their budget to
satisfy marketing needs. Moreover, appropriate
marketing helps the company in acquiring
more customers and hence, more financial
income (Williams, 2017). For instance, in case
marketing department of TUI requires funding
for indulging into aggressive marketing for its
airline services, finance department provides
funds and enable marketing department in
acquisition of desired amount of funds, in
order to market their exceptional services and
enhance the scope of expansion in customer
base.
M1. Analysis of Roles and Responsibilities of Marketing in Context with Marketing
Environment
Apart from organisational contexts, marketing department has several roles and
responsibilities within the overall marketing environment of the firm. Aspects within the same
are discussed below:
ROLES AND RESPONSIBILITIES DESCRIPTION
Information System This responsibility of marketing function is
subjected towards providing appropriate
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information to organisations within Travel and
Tourism sector, such as TUI. This information
could be delivered regarding different
essentials within the company, like the
offerings, planning, implementation, along
with marketing strategy which would help the
company in developing its services in
alignment with the environment.
Monitoring
A crucial role played by marketing function is
that it monitors the external and internal
environment of the company appropriately.
This helps companies like TUI to track any
changes or modifications in the dynamic
environment that could influence the current
strategies of the firm, and thus, encourages the
organisation to operate accordingly (Misni,
Nor, and Ahmad, 2017).
Segmentation
Marketing function adopts approaches like
STP and determines different segments for the
company, which assists the organisation in
choosing the most effective target segment
upon which its marketing strategies would be
directed.
M2. Analysis of Interrelationships between Marketing and other Functional Units
Different functional units within TUI operates differently to achieve set goals and targets
provided by the company. However, marketing amalgamates with all these units in order to
enhance the effectiveness of overall functioning of the organisation to ensure productivity and
profitability. For instance, Marketing coordinating with HR could bring in more competent
individuals within the company which would contribute in its growth. Moreover, coordination
6

between marketing and sales as well as finance, guides the firm in how best to allocate financial
resource and conduct marketing activities that ultimately enhances sales. Thus, the relationship
of marketing with other functional units is very necessary so that objectives and goals of the
organisation are achieved appropriately and as per set standards.
TASK 2
P3. Elements of Marketing Mix
Marketing Mix is referred to the amalgamation of all the variables within the marketing
function, which sets up guidance for an organisation related to accomplishment of several
marketing objectives within the company. It provides tools to the company to emphasise upon
and develop strategies which help them in getting a competitive edge, along with sustainability.
However, different organisations apply these elements of marketing mix in distinct
manner. Such aspects of differentiation between TUI and Booking .com is explained below:
ELEMENTS OF
MARKETING MIX TUI BOOKING.COM
Product
The product strategy of the
company is diversification.
The firm offers multiple range
of services inclusive of distinct
offerings (Kovačević, 2018).
Moreover, differentiation is
another strategy which allows
the firm in gaining a
competitive edge. In addition,
its services are designed
traditionally for different
customers as per the trends
prevailing in the market. Some
of the products which the firm
deals in are dining services,
airlines, tour packages, etc.
In comparison with TUI, this
company implements
customer-based service
development as its product
strategy. Rather than provision
of a range of services, it
introduces only those
portfolios that are desired by
the customers, for instance,
distinct tour packages,
effective accommodation
services, etc.
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Price
Competitive Pricing Strategy
is adopted by the organisation
in order to grow within its
niche as well as potential
markets. It sets its price higher
than its competitors as it
provides more and distinct
features within its tour
services.
Booking.com adopts
Differentiated Pricing Strategy
in order to set up price for its
services. It offers diverse deals
to its customers, which have
prices set according to value
for money it offers.
Place
TUI sells its offerings in two
distinct ways. It has its
personal physical outlets
where customers come and
acquire its services, such as
tour packages. Moreover, the
same could be achieved
through its own website for
customers which could not be
physically present.
The company focuses majorly
on its internet website as well
as mobile application to allow
customers to interact with the
company and acquire its
services. Moreover, its
physical stores provide same
facility, along with features
such as currency exchanges.
Promotion
Majorly, to promote its
offerings, TUI emphasises on
use of traditional media that
involves television, radio and
newspaper advertising.
However, alongside this, the
company also uses social
media, to make its services
familiar and popular within
millennials.
In order to promote its holiday
packages and distinct features
to customers, the firm uses
social media portals such as
Facebook, Twitter, Instagram,
etc., which is its major source
of advertisements. Other than
this, radio and televisions are
also used by the company to
promote itself.
People There are several personnels Appraisal programmes, along
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within different departments of
the company, such as sales,
customer service, customer
relationship management and
retail management. TUI makes
sure that effective On-The-Job
training methods are used by
the firm in order to
appropriately train the staff in
their respective roles and
ensure their growth and
engagement with the company.
with several training and
development programmes are
adopted within the company,
which ensures better
engagement of employees with
the company. In context with
customers, the company is
currently focusing upon
developing emotional
connections with its customers
through market research and
analysing needs of customers
effectively.
Process There are several processes
adopted within the
organisation along with several
methods to implement them.
For instance, for managing its
online services, the
organisation has implemented
servers which ensures tracking
and safety while tours are
being commenced. Moreover,
accountability is promoted
within the company as the firm
uses feedbacks in order to
research customer preferences
in a better manner.
Booking.com is emphasising
upon simplifying the processes
within the company for both
the staff as well as for
customers. The firm is
associated with almost 30
million hotels as well as rental
accommodation, still the firm
offers a single platform on
which bookings could be made
by customers (Booking.com's
marketing director on its new
brand advertising strategy,
2019). This platform is one of
the major sources for the
company to establish a
communication channel with
users and provision of several
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processes such as booking,
cancellations, etc.
Physical Evidence
TUI has distinct packaging of
its products within its retail
shops. Moreover, it has
incorporated website which is
user friendly and high quality
images and videos are
available for people to develop
their perceptions about the
services provided by the
company (Uhl and Gollenia,
2016).
Customisation is heavily
implemented within the
company, which means users
could choose accommodations,
holiday packages and dining
services as per their needs and
the company ensures
authenticity in physical
delivery of its service through
associating with certified
accommodations and dining
services.
M3. Evaluation of Different Tactics by TUI to Achieve Business Objectives
As per the above analysis, it could be seen that both the organisations have different
application of marketing mix within their companies. However, there are several areas wherein
application of marketing mix within TUI is somewhat weaker than that of Booking.com. Thus, in
order to gain a competitive advantage and higher profitability, which are one of TUI's most
important business objectives, the company adopts different tactics that are mentioned below:
 To promote its services, TUI indulges in digital marketing, under which, the company
adopts approaches like Search Engine Optimisation, Push notifications, social media
marketing through compelling videos, etc.
 In order to appropriately ensure effectiveness, along with accountability in processes, the
firm also encourages transparency in its processes. This tactic is placed within the
company through implementing two way communication channel with the customers,
through which they address the concerns of users in a better and transparent manner
(Malhotra, 2015).
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 To ensure betterment in its physical evidence, TUI have started using technologies like
Virtual Reality, to give real time experience to customers to develop a positive perception
of their services and better physical evidence.
TASK 3
P4 & M4. Development of a Marketing Plan
Marketing plan is a detailed and sequential outlay of an organisation's marketing
procedures, which the firm uses to communicate its offerings to customers. A basic marketing
plan describes how best the company could make itself as well as its offerings familiar with
customers. However, a strategic marketing plan delivers ways through which competitiveness
could be achieved by the organisation through its marketing (Uchino, 2018).
In context with TUI, apart from its effective booking services and tour packages, the firm
also has TUI Airways as its effective brand. The firm is currently developing a mobile
application by the name of “TUI Fly”, where customers could indulge in spontaneous booking
and check-ins. Moreover, the app provides an appropriate in-flight engagement, along with
several personalised entertainment and streaming service. For the same, strategic marketing plan
is discussed below:
 Strategic Objectives:
With TUI Fly, the company is planning to accomplish several objectives that are
mentioned below:
▪ The firm is planning to enhance its customer base by at least 5%, by the end of 3
months of launch of this product.
▪ TUI wishes to achieve a rise of 7% in its overall profitability rate by 6 months of
implementation of TUI Fly in the marketplace.
▪ The organisation is also aiming at enhancing its customer retention rate by 15%
by the end of 12 months of its provision of services through TUI Fly.
 Offerings:
The company offers a range of tour packages to its customers by its booking website as
well as through its physical outlets (Spiteri, Olstad and Woods, 2018). However, TUI Fly would
help customers to directly book packages with personalised services as per their preferences and
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purchase history. Moreover, self check-ins and bookings would help them in eradicating the
notion of long queues at the airport.
 Target Market:
It is important for TUI to find an effective target market for its new offering, so that it
could work towards strategies which provides the company with maximum returns. For this, STP
approach in context with the company is discussed below:
▪ Segmentation: This process divides the market into several segments, based on
certain characteristics that are discussed below:
 Geographical: This divides the market on the basis of geographical location.
For TUI Fly, the firm would be setting up segment of people from urban areas
of UK.
 Demographical: It divides the market on the basis of demographical
characteristics like gender, age, income, etc. For TUI Fly, the most prominent
segment will general customers of UK, belonging to age group 16-65, having
income more than £1,000.
▪ Targeting: Out of the above specified segment, the firm would be targeting
general customers of urban areas of the UK as well as having income level more
than £1,000.
▪ Positioning: TUI Fly would be positioned online, as a mobile application, as well
as would be featured within its website and social media portals, for customers to
be familiar with the same and use this application to acquire services of the
company (Pike, 2015).
 SWOT:
It is highly essential that the whole market is researched in context with determining
strengths, weaknesses, opportunities and threats for the firm and TUI Fly (Rowley, 2016). Thus,
SWOT Analysis for the organisation is mentioned below:
STRENGTHS WEAKNESSES
 TUI air planes cover more than 150
destinations.
 The company has effective diversity in
its offerings, which is preferred by
 Inappropriate organisational structure
limits its expansion in context with
different product segments.
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customers.  Weaker demand forecasting.
OPPORTUNITIES THREATS
 Rise in digitalisation amongst
millennials.
 Enhancement in travelling.
 Competition from companies like
Booking.com
 Risks associated with unstable political
environment in UK.
 Marketing Mix:
It is very important that elements of marketing mix are effectively implemented by the
company to ensure a competitive edge with its new offering TUI Fly (Puddle, 2015). Thus, the
same is mentioned below:
ELEMENTS DESCRIPTION
Product
Innovation is the product strategy adopted by
the firm for TUI Fly, wherein, digitalisation is
used to assess needs of customers and provide
them with services that satisfies the same, such
as easy and convenient flight bookings as per
their customised tour package
(Routledge.Ramos, 2018).
Price
Services available within the mobile
application would be accessible at premium
rates, due to personalisation and high quality.
Place
The firm would use PlayStore and Apple Store
to ensure that each person owning a
smartphone gets access to its mobile
application.
Promotion Major focus of the firm for promoting TUI Fly
would be on social media and digital
marketing. Portals like Facebook, Instagram
13

and YouTube would play prominent roles in
making their application popular.
People
New R&D team would be hired by the
company to research areas of effectiveness
within the application, along with new training
methods such as simulation to ensure
enhancement in competence of its employees.
For customers, Customer Relationship
Management (CRM) would be used to analyse
the trends and demands of customers.
Process
To build this application effectively,
technologies like Artificial Intelligence and
Automation is used. Moreover, repeated testing
processes will adopt by the firm to ensure
effectiveness in the application as per the
required standards (Gregg, 2015) .
Physical Evidence
The application would be User-friendly,
wherein each step towards acquisition of
service would be guided in order to enhance
effectiveness in services and the new offering.
 Marketing Budget:
PARTICULARS I II III IV V
Start-Up Capital 5400 11000 12450 13030 17140
Investment 4300 7800 5500 4465 8636
TOTAL 9700 18800 17950 17495 25776
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MARKETING
OUTLAY
Marketing 6500 7800 6900 12700 13660
Publicity 8800 12100 9900 10500 12200
TOTAL 15300 19900 16800 23200 25860
 Monitoring:
There are several measures for monitoring the marketing plan. One of the most effective
method is Key Performance Indicators. These are the elements which indicate as to whether the
plan is working according to set standards or not. Specific indicators are number of customers
acquiring the service, occupancy rate of the airlines, profitability, etc. (Haywood, 2019).
CONCLUSION
Thus, it is concluded from the information above, that marketing is a very important
function within the organisation. Analysis of its concepts, along with its roles and responsibilities
helps in assessing its roles within the organisation as well as within marketing environment.
Moreover, interrelationship of marketing with other functional units helps organisation in
achieving business objectives more effectively. Moreover, it is very important to compare use of
marketing mix in different organisation, so as to develop tactics which ensure accomplishment of
organisational goals. Lastly, a strategic marketing plan helps in developing a pathway for
marketing and providing new offerings of an organisation within the market.
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Online
Booking.com's marketing director on its new brand advertising strategy. 2019. [Online]
Available Through: <https://www.phocuswire.com/My-Method-Booking-brand-
marketing>
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