Marketing in Tourism and Travel for First Choice Company: A Comprehensive Analysis
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1 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY Marketing in Tourism and Travel for First Choice Company Student’s Name: Student’s ID: Date: 03.05.2018 Professor Name:
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2 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY Table of Contents Introduction......................................................................................................................................3 L01: Task 1......................................................................................................................................3 P1.1. Core concepts of marketing for Tourism and travel sector................................................3 P1.2. Impact of marketing environment on the individual travel and tourism business, and other tourist destinations in Spain and Turkey............................................................................4 P1.3. Factors affecting demand and customer motivation in Tourism and travel sector.............5 P1.4. Principles related to market segmentation, and key uses of marketing planning at First Choice..........................................................................................................................................6 L02: Task 2......................................................................................................................................7 P2.1. Importance of strategic market planning for selected tourism and travel business............7 P2.2. Relevance of market research, and the market information to managers in tourism and travel sector..................................................................................................................................8 P2.3. Influence of marketing in the society.................................................................................8 L03: Task 3......................................................................................................................................9 P3.1. Issues associated with price, product and place elements of marketing mix with First Choice Summer Deals 2019 to Spain and Turkey.......................................................................9 P 3.2 Importance of service sector mix elements towards tourism and travel sector................10 P3.3. Concept of total tourism product on individual tourism business at First Choice...........10 L04: Task 4....................................................................................................................................11 P4.1. Integrated nature and the role defined for promotional mix.............................................11 P4.2. Promotional integrated campaign of First Choice Summer Deals 2019 Holidays...........11 Conclusion.....................................................................................................................................12 References......................................................................................................................................13
3 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY Introduction Marketing is regarded as a crucial activity in tourism and travel sector, as it allows business to promote services and products effectively at diverse market places. In this assessment, the role would be to work as anAssistant manager of Tour Operator on First Choice for the TUI group, which tends to create summer holidays in Spain and Turkey. First Choice has been trying to emphasize on the varied market campaigns that will help to promote new holidays to Spain and Turkey in 2019. In this scenario, First Choice is trying to launch its Summer Holidays in 2019 that could promote its holiday package effectively. In quest, the TUI group also have wide range of promotional campaigns that will influence key marketing practices on society with concept of total tourism product. Further, the assessment will also develop key implications that reside on the travel and tourism sector, along with the impact market environment has on the business entity. Thus, the integrated role, and the nature of promotional mix in the marketing processes of First Choice will also be explained efficiency. L01: Task 1 P1.1. Core concepts of marketing for Tourism and travel sector According toAmaro and Duarte (2015), marketing is a process where First Choice of TUI group will promote its key services and products to the market, based on the needs and demands of the users. Besides, it is vital for any business unit to develop the key marketing concepts, which will help to support the business operations in long-term. As opined byBattour Ismail and Battor (2011), the organisation should assess the customer needs and wants effectively. In order, the idea of marketing will tend to emphasize the needs of the customers, and this in turn will help in developing the services and products according to the expectations of customers. First Choice must conduct a market research that will identify their customer preferences, and this in turn will sustain organisation’s attempt to plan the customised services. According toDelaplace, et al. (2014), the concept of marketing also focuses on the high value proposition towards their key customers. Besides, this is where most businesses have to
4 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY emphasize on creating value proposition for their key customers. In order, the concept of marketing also produces products, which are mostly obligatory for customers with combination of intangible and tangible products. Further, Customer retention is a key notion where First Choice should adopt the marketing strategies that will help them to retain the customers for a longer period, and hence, this is an effective principle for retaining customers (Dickinson, Lumsdon and Robbins, 2011). On the other hand, the market area also focuses to maintain long- term healthy relations with customers. Thus, First Choice could send various emails that will help to organise public events in order to make relations with customers better. P1.2. Impact of marketing environment on the individual travel and tourism business, and other tourist destinations in Spain and Turkey Because First Choice is considered as a key player in tourism and travel sector, it has showed wide presence in the ongoing market. In this question, an in-depth research on Micro and Macro factors of Spain and Turkey are been made: Micro factors According toDolnicar and Ring (2014), First Choice offers a complete solution as travel operator to its viable customers. It is witnessed that suppliers at Spain provides tourism package to First Choice within certain hotels. Besides, the Tourism package intended by First Choice in Turkey and Spain indicates that most of the suppliers are supportive hugely. Because First Choice faces competition due to high availability of firms, it could be analysed that the company should set distinct market situations where business units has to assess the competitor’s strategy. Macro factors The macro-environment will be evaluated with Pestel analysis. As opined byTruong and Hall (2013), the political condition of Spain and Turkey is highly secure, and this helps to support their economic growth. Both the country has contributed high percentage of GDP, and this is why they receive more than 15 million visitors annually. It is effective that the business growth operates in an economy that works with rapid pace. Both Spain and Turkey enjoys good relations with EU, and this has been significant for First Choice to make their Summer Plans in 2019. Besides, Turkey and Spain also constitutes wide cultural patterns and this has provided a distinct
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5 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY area of cultural experiences to tourists of First Choice. As discussed byTham, Croy and Mair (2013), the existing cultural variety of culture have showed a positive effect of operations of First Choice. As opined byThakran and Verma (2013), in the present era, technology is developing at rapid pace and countries such as Spain and Turkey have no exceptions towards the technological developments. Besides, the far off nations are well associated to the present world, and this helps in sustaining the growth in tourism sector. Because Spain and Turkey has a fair set of laws that governs labour, industrial property, copyright and pricing, it can be intended that the domestic tourismingaininghighmomentum(SwarbrookeandHorner,2012).However,the environmental factors in Spain and Turkey are also positive, as this will get attracted them to a positive environment. Hence, this would also support the growth area of First Choice. P1.3. Factors affecting demand and customer motivation in Tourism and travel sector According toRichard and Zhang (2012), the manager of First Choice will consider various areas for developing the tour packages in Spain and Turkey. Some of the key factors, which may affect demand and customer motivation in Tourism and Travel sector are as follows: Tourist Destinations: In Spain, Barcelona is known hugely for afternoon siestas,beaches,great architecture and late night partying. Madrid, being the Capital of Spain has places such as the Time Square, Lunch at Plaza de Santa Ana, and local evening bar hopping. In order, Turkey is known for its places like Istanbul, which is known as the city having high skylines whereas Cappadocia is another dream destination that is known for valleys, mountainous formations and caves. Tours attractions: As opined byMunar and Jacobsen (2013), the key element that influences decisions of individuals is the selection of a place to visit. In Turkey, the modern-day covers the area that is stood at the crossroads of history, leaving it to wealth of sights for huge visitors. Probably, the popular places in Turkey are Hagia Sophia, Ephesus,Anzac Cove,Basilica Cistern,Troy and Bodrum Castle. Spain on the other hand has attractions such as Alhambra, Sagrada Familia,Mallorca,Toledo,Ibiza and others. Both the countries are rich in historical and scenic beauties, which will surely attract customers in abundance.
6 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY Hospitality services and Connectivity: The countries offer huge range of services on hospitality based on their culture and tradition. Besides, their MNC groups are also offering diverse kind of food Cuisine, according to the demand of tourists. They also provide their local dishes, which will help to attract customers. Connectivity: Because tour operators and airlines companies are offering effective transportation services from outside of Spain and Turkey, the visitors from the world can reach to several destinations without any kind of difficulty. P1.4. Principles related to market segmentation, and key uses of marketing planning at First Choice In case of effective selection of the target visitors, the manager of First Choice has developed a plan that will attract customers for tourist destination ofSpain and Turkey. For demographic segmentation, the factors include business, age, and gender. As opined byMolina, Gómez and MartÃn-Consuegra (2010), most customers will be included in age group 18-40, as manager will be focusing on young age. For Psychographic segmentation, it will consider lifestyle of people that wants to learn about ancient history of Turkey or feel free and enjoy in beaches of Spain. Thus, the geographic segment is carried out as per religion, nation and locationMiller et al. (2010). However, First Choice is focusing on people that are of Islamic religion such that they can assess the best of Islamic traditions in Turkey. As opined byMinazzi (2015), market segmentation is regarded as a criterion for strategic market planning that plays a decisive role in promotion of tour packages for First Choice. In terms of segmentation, First Choice is trying to focus on young age group people that have interest in the historical traditions of arts in Turkey. Besides, the manager also wants to attract individuals that wish to enjoy the beach climates, parties andflavoursof Spanish culture (Middleton et al. 2009). Thus, the element that tends to support First Choice’s management are mostly the local authorities, which tends to develop effective market strategy to influence visitors from UK and globally.
7 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY L02: Task 2 P2.1. Importance of strategic market planning for selected tourism and travel business As opined byMariani et al. (2014), the market climate of Tourism and travel keeps on changing, and the strategic planning for First Choice is vital since it entails scrutiny of the environment for the organisation, competitors and internal strengths. Besides, the general market should come with a sustainable course that is aimed for making First Choice of TUI competitive for maximizing the performance in the industry. Because First Choice is a UK-based operator and subsidiary of TUI group, it has been effective from the very beginning on making travel and tourism plans (Jacobsen and Munar, 2012). However, First Choice has a vision that would work with leadership direction, management framework and remain competitive in market. However, the use of SWOT analysis is been made to understand its importance in tourism market. Strengths Marketleaderwithnewholiday packages Technologically advanced by making ongoing decisions Offers comprehensive services, and can penetrateWesternmarketofEurope with high dependency Weaknesses Loss beared with £69million in revenue as of 2009 Besides, a 13.5% reduction is showed in package process due to the decrease of sales for First Choice Opportunities Wider expansion with M&A (Mergers and Acquisitions) Wideopportunitytodeveloprisein Synergy profits Threats Threat with Thomson Airlines from the low cost airlines like Ryanair Terrorist attacks or threats that might change customer’s perception on safety while travelling Table 1: SWOT Analysis of First Choice (Source: Author)
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8 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY P2.2. Relevance of market research, and the market information to managers in tourism and travel sector In tourism and travel sector, the market research is highly useful because relevance of market research is the function that bridges link between customers and consumers. Besides,Heung, Kucukusta and Song (2010)argues that market research will specify the information that is authenticand have a reliablepurpose in addressing issuesrelevantfor the organisation. However, the process also includes data analysis, data collection, and communication relative to departments. According toFesenmaier, et al. (2011), market information also shows the use of development of the market entry strategy. For this, First Choice should try to evaluate their competitors and should know whether they enter through franchisees mergers or through acquisitions. Further, the market data will also be employed to know the best market information system, which will set success of industry’s s standards. The managers should also forecast the trends that will be defined on demographics (Evans, Stonehouse and Campbell, 2012). Hence, First Choice of TUI group must use the market research, which will help to understand demand of tourism products that they have in portfolio on a wider industry scale. P2.3. Influence of marketing in the society As opined byAmaro and Duarte (2015), there are several effects of marketing on a society, apart from the profit-driven role in business. Besides, marketing is in wake for consumerism that helps in protection of the key customers with adherence to the strict regulations of services and goods. Marketing also helps to raise awareness for the society on the public policies that pertains with niches in market. However, marketing also aids in formalizing legal ramifications in the industry that is set with raising compliance and awareness (Battour Ismail and Battor, 2011). Thus, it can be said that marketing also creates sustainability for business, which has to administer with ethical business practices and with code of conducts. This also shows change in customer perceptions, which are mostly covered in marketing research to work in scenario planning.
9 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY L03: Task 3 P3.1. Issues associated with price, product and place elements of marketing mix with First Choice Summer Deals 2019 to Spain and Turkey The tourist industry is the most rapidly growing industries in present days, and this industry only deal with providing different tour packages around the world. On that note, this industry has the highest scope nowadays for improvement. According toDelaplace, et al. (2014), marketing mix plays a very crucial role in this industry, and this marketing mix will help this industry to be enriched with different aspects of successes to define Summer Deals in Spain and Turkey. However, there are various issues of this marketing mix, and this will undoubtedly affect the entire industry of tourism (Dickinson, Lumsdon and Robbins, 2011). First Choice will have to frame this marketing fix process while dealing with these types of issues, which are described below: Product As opined byDolnicar and Ring (2014), this is the most vital point of this industry and plays a crucial role to satisfy the customers. Besides, basic needs and demands of each client are different from each other, and this is the central problem in front of developing products for the holiday package in Turkey and Spain. Price Customers are susceptible in term of price and tend to compare different products based on their quality and quantity. As argued byTruong and Hall (2013), this price problem is now the most vital point for First Choice to make a high quality product by maintaining an affordable price range. Place First Choice ties their email addresses and other important contact details in their website to provide proper information to their customers regarding any enquiry about the tour details. Promotion
10 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY First Choice knows that in order to reach to a big number of people, social media is the only way to attract customers (Tham, Croy and Mair, 2013). This is why they promote their tour details in social media and internet. P 3.2 Importance of service sector mix elements towards tourism and travel sector According toThakran and Verma (2013), this service sector has a large number of beneficial elements, which will help them to attract different peoples around the globe and this would be the best way to make their travel sector popular. People People are the most important and crucial factor for this tourism sector and this maintains various experiences to keep a long time relation with them. However, it is vital for First Choice Company to support a necessary deal for people and work according to it. This is the only way to have to maximum exposure from people. Physical Evidence Physical evidence is another important part of this First Choice Company, as they need to show the proof of their quality to their customers. According toSwarbrooke and Horner (2012), this can be the most important point to deliver an image in front of customers to develop their affection to visit the place. Physical evidence is like images, video and other important documents and this makes the work easy for the First Choice Company to display them on social media also. Besides, these evidences are like the proof of the environment of the destination. Process The process consists of different types of different types of Strategies, plan and other necessary legal documentation related to work. As opined byRichard and Zhang (2012), there are different processes to follow by various companies to maintain growth in their economic growth. P3.3. Concept of total tourism product on individual tourism business at First Choice At present, the tourism sectors are the highest growing sector of UK, and it has enormous due to its development. Employee recruitment also becomes an essential part of this industry and has a tremendous opportunity for the growth of this sector, which has no limit. As opined byMunar
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11 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY and Jacobsen (2013), tourism product is a mixture of different products related to the customer’s choice, and this is only the way to make long time relation with them. L04: Task 4 P4.1. Integrated nature and the role defined for promotional mix Promotional mix plays the most critical role in this advertisement of products of any company, and this is a probable way to display the company’s products to different customers. On that note, here is a likely list of presenting the different promotional mix: The advertisement is the best way to reach people through different news portals and social media, and on that note, this could be a tool for various companies to promote their products through online and offline. According toMinazzi (2015), this promotional management must play a significant role to sell the desired product and attract people towards this company. Salesperson and representatives are responsible for sale of diverse company’s products to different parts of the world, and this personal approach to customers will play a critical role in maintaining an excellent relationship with customers. These advertisements also deliver creative ideas and other necessary methods to make any product saleable at market. P4.2. Promotional integrated campaign of First Choice Summer Deals 2019 Holidays Integrated promotional campaigning process was the most vital point for the First Choice in early days when it was needed for the company to connect with different audiences. As opined by Mariani et al. (2014), this promotion process is for those people that want to visit Spain and Turkey during their holidays. Besides, the management team need to do a comprehensive survey based upon the number of online booking and other relevant information on the company’s website. Facebook, Twitter and other critical social platforms are needed to deliver the proper information to the loyal customers. According toFesenmaier, et al. (2011), digital marketing also plays another important part in this promotion while media channel promotion also attracts customers around the world. However, if any customer inquires message and wants to know about the process of application, then the management team will be responsible for taking care of the question of that person. The
12 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY management team also deliver statistics to support the overall workflow from the last few years. They also had made sure not to repeat any previous errors (Jacobsen and Munar, 2012). However, destination images must show proper identification of a destination, which will increase the attraction of the customer.On that note, the overall impression of the First Choice must show the top-class quality of their products and their marketing team will have to maintain proper behaviour with customers. Conclusion This can be concluded that this assignment can emphasise the overall role of marketing for this Travel and Tourism sector and this plays a crucial role in the market study for First Choice. This company needs to pay more attention to their management strategy to maintain possible workflow to be perfect and the website needs to respond seamlessly if any customer asks for any help. Spain and Turkey will be in focus for this First choice as this company wants to attract large amount of customers in these two countries to grow their business.
13 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY References Amaro, S. and Duarte, P., 2015. An integrative model of consumers' intentions to purchase travel online.Tourism management,46, pp.64-79. Battour, M., Ismail, M.N. and Battor, M., 2011. The impact of destination attributes on Muslim tourist's choice.International Journal of tourism research,13(6), pp.527-540. Delaplace, M., Pagliara, F., Perrin, J. and Mermet, S., 2014. Can High Speed Rail foster the choice of destination for tourism purpose?.Procedia-Social and Behavioral Sciences,111, pp.166-175. Dickinson, J.E., Lumsdon, L.M. and Robbins, D., 2011. Slow travel: Issues for tourism and climate change.Journal of Sustainable Tourism,19(3), pp.281-300. Dolnicar, S. and Ring, A., 2014. Tourism marketing research: Past, present and future.Annals of Tourism Research,47, pp.31-47. Evans, N., Stonehouse, G. and Campbell, D., 2012.Strategic management for travel and tourism. Taylor & Francis. Fesenmaier, D.R., Xiang, Z., Pan, B. and Law, R., 2011. A framework of search engine use for travel planning.Journal of Travel Research,50(6), pp.587-601. Heung, V.C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism: Implications for future research.Journal of Travel & Tourism Marketing,27(3), pp.236-251. Jacobsen, J.K.S. and Munar, A.M., 2012. Tourist information search and destination choice in a digital age.Tourism management perspectives,1, pp.39-47. Mariani, M.M., Buhalis, D., Longhi, C. and Vitouladiti, O., 2014. Managing change in tourism destinations:Keyissuesandcurrenttrends.JournalofDestinationMarketing& Management,2(4), pp.269-272. Middleton, V.T., Fyall, A., Morgan, M., Morgan, M. and Ranchhod, A., 2009.Marketing in travel and tourism. Routledge.
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14 TOURISM AND TRAVEL FOR FIRST CHOICE COMPANY Miller, G., Rathouse, K., Scarles, C., Holmes, K. and Tribe, J., 2010. Public understanding of sustainable tourism.Annals of tourism research,37(3), pp.627-645. Minazzi, R., 2015.Social media marketing in tourism and hospitality. Heidelberg: Springer. Molina, A., Gómez, M. and MartÃn-Consuegra, D., 2010. Tourism marketing information and destination image management.African Journal of Business Management,4(5), p.722. Munar, A.M. and Jacobsen, J.K.S., 2013. Trust and involvement in tourism social media and web-based travel information sources.Scandinavian Journal of Hospitality and Tourism,13(1), pp.1-19. Richard, J.E. and Zhang, A., 2012. Corporate image, loyalty, and commitment in the consumer travel industry.Journal of Marketing Management,28(5-6), pp.568-593. Swarbrooke, J. and Horner, S., 2012.Business travel and tourism. Routledge. Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in travel, tourism and hospitality.Cornell Hospitality Quarterly,54(3), pp.240-247. Tham, A., Croy, G. and Mair, J., 2013. Social media in destination choice: Distinctive electronic word-of-mouth dimensions.Journal of Travel & Tourism Marketing,30(1-2), pp.144-155. Truong, V.D. and Hall, C.M., 2013. Social marketing and tourism: What is the evidence?.Social Marketing Quarterly,19(2), pp.110-135.