Marketing in Hospitality

This report examines the role of marketing in the hospitality industry, focusing on Thomas Cook Travel Agency. It analyzes the impact of the marketing environment, the relevance of the consumer market, and the importance of market segmentation. The report also analyzes the 4Ps of marketing mix, different pricing strategies, and the role of sales promotion and public relations in promotional efforts. Finally, it highlights the significance of marketing research in the travel and tourism industry.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
AC1.1 Marketing and its concept................................................................................................3
AC1.2 Impact of Marketing Environment Using Micro and Macro Environment....................4
AC1.3 Relevance of consumer market with travel and tourism.................................................5
Ac1.4 Rationale for developing different market segments........................................................5
TASK 2............................................................................................................................................6
AC2.1 Importance of marketing mix using 4 P's .......................................................................6
AC2.2 different price strategies and policies in relation with Thomas Cook Travel Agency....7
TASK 3............................................................................................................................................7
AC3.1The role of the that sales promotion and public relation in promotional efforts..............7
a) explaining the five types of sales promotion..........................................................................7
b) five ways that public relation can be used as the part of the promotional tool in the
hospitality organisation...............................................................................................................8
TASK 4............................................................................................................................................9
AC4.1 Importance of marketing research in travel and tourism industry...................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journal.....................................................................................................................10
Online........................................................................................................................................10

INTRODUCTION
Tour and travels are basic need of an individual. During vacations, people plan tours and
need some agency and this report deals with Thomas Cook Travel Agency which is the largest
travel group and second largest in UK. They provide customer's comfort during tour and even
value for their money as their main priority is to maintain social and public relations rather than
earning. The entire report is dealing how the marketing help in tourism and travel. The report
shows 4 P's marketing mix and how they will affect the growth of company. It also shows
different segments which helps to target marketing and positioning. The report also shows
different marketing strategies of Thomas Cook Travel and how it will affect the growth of
company. It also analyses role of sales promotion and public relations in promotional efforts.
The report deals and explains five different ways that public relations can be used as a promoting
tool in tourism and travel and it also explains the importance of market research in Thomas Cook
Travel.
TASK 1
AC1.1 Marketing and its concept
Marketing is widely used term and is a process through which services and products
move from store to customers. The criterion of marketing is to satisfy the needs of customers. It
has four concepts of marketing which are discussed below:
Production Concept: it is the oldest concept of marketing. In the context of Thomas
Cook Travel Agency, it also uses production concept, as it hold the consumers to use their
services which is easily available and inexpensive (Suess and Mody, 2017). Managers of
Thomas Cook Travel help the customers to use their holiday packages and their main aim is to
provide time consuming life ' to customers and value their money.
Product Concept: this is widely use in marketing concept. Thomas Cook Travel focuses
on their services and tries to offer the most quality performance or innovative features to
customers. The managers also try to offer superior services and improve them by time to time.
Selling Concept: the main aim of this concept is to sell what they make rather then make
what the market needs. Similarly, in Thomas Cook Travel agency, they want customers to use
their services because they provide it in very low rates and their business is customer oriented
and they also work towards responsible tourism programs.

Societal Marketing Concept: this concept helps to know needs, wants and interest of
target market and same to delivered to users. Thomas Agency did same, they offer services
according to needs of customers and plan tours according to users need.
AC1.2 Impact of Marketing Environment Using Micro and Macro Environment
Thomas Cook Travel is also affected by macro environment i.e. PESTLE which is
discussed below:
POLITICAL FACTORS ECONOMIC FACTORS
 Coalition government spending cuts
which result in 0.7 million job
losses.create reverse impact on
customers
 Negative impact on
employeesRemaining staff gains back
their trust and confidence.
 It may influence demand, cost, prices
and profit.
 As income increases demand also
increases
 public sector cut are major reason
SOCIAL FACTORS TECHNOLOGICAL FACTORS
 12% people spend nothing, 35% are
very cautious, 30% as quite cautions
because of decrease in disposable
income.
 Income decreases, spending become
more cautious
 supply become very high as demand
decreases
 seasonal holidays are offer otherwise
there will be no work
 sometimes face low economyForce to
provide bargains for leisure.
 Improvement in internet.
 Reduce cost and increased operational
efficiencyOther technologies support
the growth.
 New technological implementations led
to change in working behaviorIncrease
in demand of labor force.
ENVIRONMENTAL FACTOR LEGAL FACTORS
 High carbon emissionHeavy number of  Affect company law

passengers traveling cause polluting
environment.
 did not secure data in computersMay or
may not protect intellectual property.
AC1.3 Relevance of consumer market with travel and tourism
Customer market is defined as to complete needs of users and satisfy them with
customer's orientation. The relevance of customer market in travel and tourism is necessary as it
will help to keep the long term relationship (Griffin and et.al 20170.
Customer orientation is a key to achieve business goals. If the agency will not fulfill the
need of customers then it may affect in their profit margin as well as income. To deliver
maximum value of services with least amount of expenses the company is try to follow the rules
and regulations. To determine the need of people and their uses, Thomas Cook Travel offer
many discount to complete their fulfilment.
Consumer market is very important in travel and tourism, to know basic needs of
customers are initial way for growing business. Many people want adventurous trip and some
wants normal it all depends on people to people (Stefanini and.et.al 2018). To know wants and
apply it to their business is the solution of growth and development and if it is not done
according to the need of customers then they may affect the financial status of a company and
suffer heavy loss.
Ac1.4 Rationale for developing different market segments
There is need to develop different marketing segments as it help to know different types
of need of different people live in various areas such as in Geographic area, the population is
wide and there is chances of developing new ideas and it may help in growth of business. This
type of market segment is important because people belong to different regions have different
needs and to know and complete their need industry must be establish.
In Demographic segmentation, it helps to divide the market into many types such as age,
gender, marital status and with the help of this tour and travel agencies, it can identify and plan
tours according to needs as they may target youngsters and can plan adventurous tour with
different discount offers with low rates. For married couples, they plan tours with natural views
and luxurious hotel (Litvin and et.al. 2018).

Third is Behavioral segmentation, it is based on customer’s behavior, their usage and
preferences and decision making. This market is basically divided on their knowledge and using
way. So travel agency offer them according to their need like branded hotel as their preference is
to live in brand hotel.
Last one is Psycho-graphic segmentation; these divide users according to their lifestyle,
personality and attitude. It influences buying decisions and habits of person. Those who want to
live in air conditioner room so agency offer them same room. Segmentation simply means to
fulfil the need according to customer's need and usage.
To target different types of people, Thomas Cook Travel Agency, first analyse needs of
customers but they can easily target young people because they did not want any luxurious item,
they prefer tours with full of adventure and planning. And targeting them is a good option as it
helps to attract more customers through advertisement and social sites and will help to maximize
profit and selling power.
TASK 2
AC2.1 Importance of marketing mix using 4 P's
Marketing may be defined as placing proper product in right place at proper time with
proper affordable price. It is an easy plan. The use of marketing mix is an excellent way to
making sure that product is in right place or not. It helps to know products or services can offer
and how to plan for successful product offering.
There are four P's which Thomas Cook Travel agency is also used which are mention below:
Product: Thomas Cook always offers those services which help to attract people and these products
and services should meet specific need of customers. Product is planning to understand need of market and to
solve those problems that product is attempting to solve (Law and et.al., 2018). To sell a particular product,
team should identify and understood the potential buyers which help them to sell their product.
Price: it is the last amount which customers have to pay after enjoying tour. Price should be
penetrating means lower the price attraction power will be increases and help to attract more customers.
Similarly, Thomas Cook travel done, it offer all the tours in such a low level which help to increase the
buying power of customers. Prices are affected by distribution plans, value chain cost and markup. If the plan
of tours is so high and no one can afford it then there is no usage of that tour and no one can enjoy it

Place: Thomas agency should choose better place where mostly young generation live, because
targeting them is quite easy and the plans may easily pass with them and these people wants to enjoy and
they did not affected by luxurious things. So placement strategy should also be the most affect plan for a
business.
Promotion: all the above strategies come under this concept. These may include advertising, sales
promotion, special offers and discounts which help to make good public relations. Whatever the channel is
used it is necessary to promote it in well conditions so that people come to know about planning of tours and
travel. Promotional ways must attract people and encourages them to use their tours.
AC2.2 different price strategies and policies in relation with Thomas Cook Travel Agency
Thomas Cook Travel agency uses many price strategies to attract more customers as its main aim is
to establish good relationship with public and helps to let people know about different places through their
tour(Law and et.al., 2018). For this reason, the agency uses price penetration, where they offer different
schemes with new offers for youngsters and married couples.
They even start a scheme of get one couple pass free with 2 couples. They also plan low and
affordable price so that many people come and can enjoy tour. Thomas Cook Travel agency uses its
marketing strategies like they offer discounts according to age, for young generation they have plenty of
plans, for married couple they have couple passes and many more. They even apply policies related to
advertisements, they even highlights their plans in social sites to attract more customers and to increase their
sales to exert more profit.
TASK 3
AC3.1The role of the that sales promotion and public relation in promotional efforts
a) explaining the five types of sales promotion
There are 2 types of sales promotions which are consumer sales promotion- the
promotional activity which the company does to make the presence in the consumer mind.
Trade sales promotion – this type of promotion concentrate on the dealers, distributors and the
agents.
Discounts- this type is the most basic one because everyone is aware about it. It may be
in offline stores or online stores. When discount offers are there the number of consumer
increases at that time. It attracts customers

Gifting- this type of sale promotion is very common on occasions. This is mostly done
by large stores to their regular customers. Customers also wait to the occasions for the gift. The
free gifts make excitement in then customers mind.
Coupons- this is used where the price are skimmed and for attracting customers they
make certain amount of coupons. If customer has coupon in his hand then he can definitely get
the price off which are on that.
Sampling- this type of the promotion is mostly used for perfumes, deos,and eatables.
Through this the company is making awareness about product. It is the best way to introduce
product .its cost much but it is very successful method. Once the customer likes the product then
he will stick to the product.
Exchange offers- this is mostly used in festival season because customer income
increase at that time and due to the festive offers they purchase more.
Sales promotion is very important for producer because they earn profit through sales.
The increase in sales makes their profit more. This makes opportunities of their financially. Sales
promotion is good for them because number of sales will increase their commission. They will
earn more and their profit will increase (Litvin and et.al. 2018). Sales promotion works best for
consumers because through this their opportunities of purchasing will increase. These all
methods are for the consumer only .it makes their purchase more.
b) five ways that public relation can be used as the part of the promotional tool in the hospitality
organisationPublic relation can be increased through various methods:Making presence in
the public events- for attracting public, they are making their presence in the area where
they can reach the public easily (Law and et.al., 2018). By this, they their audience views
about the company and the regular feedback help them a lot. It makes them to know better
that what changes is the company has to make in their offers, policies, services and all
other points that the company wants to cover, like in the Thomas cook tours they make
their presence and get feedback from their target audience which make them at the top.
Discounts- if you are regular customers then by giving regular discounts they can make the
good relation with the customers and retain them to purchase from their shop only. In thomas
cook tours and travels also they are offering the discounts : traveling with 2 couples and one
couple entry is free.

Social media marketing- now a days making the presence In the social media is very necessary.
Through this only the Thomas cook tours and travels make awareness in the eyes of the
consumer.
Blogging- it makes the company to reach the audience . Through this we can regularly interact with the
consumer.
TASK 4
AC4.1 Importance of marketing research in travel and tourism industry
Every company do research which shows the true position of it. Research main work is to analyse the data
and maximize the number of the customers. The research involves on the competitors the latest position in
the market and feedback from the customers about the product the launched. Market research tells the
company that the company has just launched in the market is fulfilling the need of the customer. The
research involves the company about the services like telephonic, face to face, online are various. This type
of the research help us to know that what is the customer's background from this company will get to know
about the target audience, which type of the people will likely to consume it. All type of the products are not
for all the people (Ma and et.al. 2019). Some are for the upper class or other are for the middle class because
all class people can't afford it. By making the research the company get to know about making changes in the
product which are needed in this. The focus is to how well the product can maximizes the sales. Research
results tell us about making changes In the strategies. In tourism industry also the research is very important
because it is seasonal and making their time memorable is the work of travel industry. In this the industry
makes them feel like home. They make research about how much can be the growth in the customers.
CONCLUSION
From above report, it is concluded that marketing is essential in every field of industry. Tours and
travel is basic need of every individual. People plan some tours during their vacations so they need one tour
organizer and this report is dealing with Thomas Cook Travel Agency, which is a largest travel group in
world and second largest group in UK. The success is depend on its quality of services offering and this
report focus on maintaining public relation. The report also presents 4 P's of marketing essentials and also
explain its impact on environment using both micro and macro factors. It also show the relevance of
consumer markets and help to know how different segments help to determine the needs of customers.
Report also shows different marketing strategies and policies which help to earn more income. It also focuses
different types of sales promotion and how these promotion help to producer, intermediaries and consumers.
The overall report show the need of tour and travels in an individual .

REFERENCES
Books and Journal
Griffin, T. and et.al 2017, June. Virtual reality and implications for destination marketing.
In 48th Annual Travel and Tourism Research Association (TTRA), International
Conference, 20-23 June 2017.
Law, R., and et.al., 2018. Systematic review of hospitality CRM research. International Journal
of Contemporary Hospitality Management, 30(3), pp.1686-1704.
Lee, K. W. and Yuan, J. J., 2018. Hospitality and Tourism Industry Segments: Toward a New
Taxonomy. e-Review of Tourism Research, 14(1/2).
Litvin, S.W., and et.al. 2018. A retrospective view of electronic word-of-mouth in hospitality
and tourism management. International Journal of Contemporary Hospitality
Management, 30(1), pp.313-325.
Ma, M. ,and et.al. 2019. From finance to marketing: Initial public offering ownership overhang
and marketing in the hospitality industry. International Journal of Hospitality
Management, 76, pp.71-82.
Meadows, G., 2017. Shared decision making: a consideration of historical and political
contexts. World Psychiatry, 16(2), pp.154-155.
Stefanini, C .J.and.et.al 2018. Let's have lunch! A study on the relation between hospitality,
service quality and experience marketing and guest satisfaction in restaurants. Revista
Brasileira de Pesquisa em Turismo, 12(1), pp.57-79.
Suess, C. and Mody, M., 2017. Hospitality healthscapes: A conjoint analysis approach to
understanding patient responses to hotel-like hospital rooms. International Journal of
Hospitality Management, 61, pp.59-72.
Online
Marketing and hospitality.2018.Availaible through<https://www.prospects.ac.uk/careers-advice/what-can-i-
do-with-my-degree/hospitality-management>