Marketing in Travel and Tourism Concept Doc

Marketing in Travel
and tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Core concepts of marketing for travel and tourism sector...............................................4
1.2 Impact of marketing environment on Emirates................................................................5
1.3 Factors affecting consumer motivation and demand in the travel and tourism sector....6
1.4 Principles of market segmentation and it's uses in marketing planning...........................7
2.1 Importance of strategic marketing planning.....................................................................8
2.2 Relevance of marketing research and market information to managers .........................9
2.3 Influence of marketing on society....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Travel and tourism is a huge business which targets a large number of customers by
satisfying their needs and demands regarding flights, hotel and recreational options. Marketing
for travel industry involves the use of advertisements and various promotional offers to attract
customer towards travel business (Boniface, Cooper and Cooper, 2016). In this report the chosen
organisation is Emirates. It is a airline based in Dubai, (UAE), which is the largest in the Middle
East. It has a good financial status with a healthy and increased level of AED 20.4 billion. It is
the fourth largest airline in terms of revenue in kilometres flown. Current issues faced by the
business is the outside competition which is getting bigger . The fear is maintaining large
customers base by providing superior quality of services. The project covers the core concepts
of marketing for the respective industry and impact of the marketing environment. It also
discusses the factor affecting consumer motivation and demand as well as the principles of
market segmentation and it uses in market planning.

TASK 1
1.1 Core concepts of marketing for travel and tourism sector
Marketing for travel and tourism sector helps to identify the needs and wants of the
BUYER to offer products accordingly. Core concepts of marketing are described as follows- Needs, wants and demands: Needs and wants of the consumer vary from customer to
clients. It is very essential for emirates to identify the need of the customer and provide
service accordingly (Core concept of marketing, 2019). For example, buyers want
specific facilities such as hygienic food, cleanliness as well as well as the crew members
should be pleasant in nature. If these needs and demands are fulfilled Emirates can earn
high customer satisfaction along with huge profits. Consumer’s value and satisfaction: With this company considers that passengers get
high satisfaction by using their services. They should get high level of satisfaction in
terms of price paid for the service (Buhalis and Foerste, 2015). In context to Emirates
Illustration : core concept of marketing, 2019
(Source: Core concept of marketing, 2019)

customer satisfaction can be measured by increasing the number of travellers for the
airline. Exchange transactions and relationships: Marketing exists when people wants to satisfy
their desires through exchange. Customers are ready to pay the amount to avail the proper
service. In context to emirates they should offer such services to customers which fulfil
their demands even by charging little higher price. Marketing environment: It refers to the place where company wants to offer its services.
Emirates provides its services of airline at the international level and makes a stiff
competition to other airlines.
 Product offer: It refers to the products and services offered by emirates as per the
demands of the consumers in context to high quality and price. Company should offer
services which promotes high level of customer satisfaction while increasing their travel
routes.
1.2 Impact of marketing environment on Emirates
It is very important for the company to analyse the macro and micro environment factors
that have impact on its functioning operations-
Micro environment- These are the internal factors which are present within the
organisations and are in control of management (Hall, Timothy and Duval, 2012). Various micro
environment factors of Emirates are described below- Customers: Customers are the important part of the company as they use the service of
the Emirates and generates profits. Main needs of the travellers is to get quality service
at a fair and reasonable amount. Emirates should consider the needs of the customers
when offering services to target more number of customers in order to reduce impact of
micro factors. If the customers are not satisfied with the service they will switch to other
airline services. Competitors- Major competitors of Emirates is Qatar and Etihad airways. In order to
compete in this dynamic business environment it is necessary for Emirates to formulate
appropriate strategy considering price and quality of service in order to overcome from
the competition (Huang and et. Al, 2013). If the competitors offerings are much better
than Emirates they will create a negative image of respective company in the minds of
customer and will lose large number of passengers.

Macro environment- These factors are outside the organisation and are not in control
which affects the functioning of Emirates. Political factors: It consists of various rules and regulations, policies and laws framed by
the government which impact the functioning of Emirates. It operates its flights to many
regions of the world such as Africa and south east Asian countries with a currently stable
political government. Hence sudden political change in these countries could affect the
demand of the flights. As increase in the custom duty by the government may impose
greater price for the services of Emirates and could reduce the demand. But if the tax
policy are in favour of the airline service it will charge normal amount from the
customers and will increase its demand.
 Economic factors: It refers to the change in the interest rate, exchange rate etc. Emirates
is an international airline so the revenues collected are in form of different currencies.
Any fluctuation in exchange rate could lead to high revenue fluctuations. This affects the
company's overall growth and will become difficult for them to compare the profits or
losses with previous year. Increase in the currency of one country compared to other will
also allow company to earn huge profits compared to other country.
1.3 Factors affecting consumer motivation and demand in the travel and tourism sector
Customers demand and motivation for the products and services are directly connected
with their behaviour. There are various factors which motivate the passengers and puts impact on
the services of Emirates. They are described as follows: Economic condition of the traveller: It refers to the purchasing decision of the consumer
in accordance with their disposable income. In this context if the income of the customers
are high then they will spend more on travel facilities and use the services of the airline
which provide them quality service at maximum satisfaction. Psychological factors: Customers psychology plays a important role in designing their
needs and preferences. Various psychological factors such as motivation and perception
of the individuals towards the service of particular airline allow them to use the service.
Emirates by providing high quality service should create good perception in the minds of
consumer to avail the service again and again (Middleton and Clarke, 2012).
 Personal and social factors: It refers to the personal likes and dislikes of the consumer
regarding the product or the services as well as their demands are also influenced by the

impact of various groups like family and friends who changes their perception regarding
the service. If the travellers are satisfied with the service of Emirates they will suggest
their family and friends also.
1.4 Principles of market segmentation and it's uses in marketing planning
Market segmentation refers to the division of the market according to the needs
preference of customer segments which helps in proper formulation of strategies to satisfy
customer needs. Segmentation greatly helps in proper market planning as it helps in identifying
the needs of potential customers and fulfilling it accordingly by developing effective strategies.
Market is segmented on different basis which is described below- Behavioural segmentation- In this, market is divided on the basis of behaviour, attitude,
knowledge of the customer towards the service offered by the company. In this context,
Emirates should provide quality services at reasonable price in order to make loyalty
towards the service offered by the company and target large number of passengers. They
should also offer high level of comfort to the customers during the journey. This will help
in proper market planning as services can be offered according to behaviour of different
people (Park and Oh, 2012). Geographic segmentation- In this segmentation company divides the business activities
to serve customers of a particular state, country or region. For instance Emirates hub is
Dubai international airport which fly from Dubai to all the destinations around the world.
But basically its has segmented its services at the international level to serve the
customers in abroad. It helps in proper market planning which enables them to identify
the needs of customers of increasing more flights or travel routes which will serve the
advantage of attracting more passengers. It greatly affects marketing planning as they
have to properly analyse the demands of customer in different countries or regions and
provides service accordingly. It crates problem for Emirates to effective make marketing
plan. Psycho graphic segmentation- In this, Market is divided on the basis of lifestyle and
psychology of the customers which influence them to purchase. In this Emirates should
provide luxurious travel services to its customers to target high potential customers which
have high concerned regarding their lifestyle. It helps in market planning by as by proper
selecting the services to be offered them during journey and makes them feel privileged.

 Demographic segmentation- Market is divided on the basis of age groups, gender,
income level of the customers. In this context, Emirates can offer different service for age
group such as for older age people they can offer concession in prices as well as food
facilities accordingly for them (Swarbrooke and Horner, 2012). This would help in proper
marketing planning by properly offering the services according to the segmented group
which enables customers to enjoy service.
Chosen market segment for the firm is demographic segmentation in which respective company
provides services for children's, young and old peoples specifically to make them highly
satisfied.
2.1 Importance of strategic marketing planning
Strategic marketing planning is a continuous process which enables company to
formulate marketing plans and strategies and its proper implementation in the target market.
These strategies are formulated by top management which helps Emirates in achieving their
goals and objectives, to attract the number of potential customers and expand their business
operations globally.
Importance of strategic marketing planning for Emirates
 It determines the respective company to plan their business decisions through proper
analysis of micro and macro environmental factors which have major influence on
business operations. It enables Emirates to offer the services according to the needs of the
customer and provide such offerings which help entity to face stiff competition in the
market.
 Strategic marketing planning is helpful for Emirates in identifying internal competencies
which will enable them in overcoming the weaknesses and in gaining competitive
advantage.
 It helps the Emirates to properly formulate strategies regarding the resources allocation,
time period, costs and profits which provides proper direction to the company regarding
their business activities and enables in achieving goals within specified time period
(Vellas, 2016).
2.2 Relevance of marketing research and market information to managers
Marketing research helps to identify needs and preference of customer and helps them to
provide services which meet the requirement of the customers. In order to sustain in this

competitive dynamic environment Emirates should conduct market research and took the
benefits which are as follows-
 Marketing research enables to identify the core activities of the business and determines
in removing loopholes of the company. By this way manager focus on areas which
needs improvement and continuous modification should be made in services of Emirates
to increase the satisfaction level of customers.
 It helps the manager of Emirates by grabbing the available opportunities and provides
new direction to company which allows Emirates to maximise the profits and enhance
brand image in the market (Huang and et. al., 2013).
 Marketing research allows to identify the future needs of the customer . In this context,
Emirates can incorporate certain changes in their service offerings and certain innovation
can be made by company according to the requirements of customer.
 It also provides information to the managers regarding the level of competition in the
market and helps in proper formulation of strategies by proving quality in airline
services to the passengers and can stay ahead of their rivals.
2.3 Influence of marketing on society
Marketing is a way through which customers are made aware regarding the product or the
service offerings. Various advertising and promotional techniques are used by the company in
order to make the product reach to the ultimate consumers. But there are ethical issues in
marketing which Emirates must be aware of-
 There is an emerging ethical problems in the market research as with the wide use of
internet it is easier to collect the data and connect with the customers directly. This
sometimes lead to collection of unethical data which creates problem for emirates in
offering services to customers (Hudson and Thal, 2013). This creates a problem for the
society
 Ethical issues in advertising and promotion is a major concern for Emirates. While
promoting or advertising its services, it should not disregard the service of competitive
airlines and should not offend customers of different religions which disregard them to
use the service of emirates. Such types of activities may influence the individual in the
society if the specific advertisement is based on their culture or religion.

 Emirates should not indulge in anti competitive practices while showing the prices of the
service in advertisement at a lower cost and influences the customer in the society as
when the customer gets attracted towards it service they find it costlier which was not
represented in advertisement. This is a type of making fun of individuals in the society.
CONCLUSION
From the above report it has been concluded that marketing plays a very important role in
identifying customer needs and preferences and enables product or service to reach to ultimate
consumers. It also allows travel and tourism industry in providing quality services to the
customer. Marketing research also allows the managers to formulate effective strategies for long
term success and growth. Impact of marketing environment on Emirates has been analysed as
well factors affecting the demand for the services of emirates have been determined to improve
the services and provide maximum satisfaction to the consumers.

REFERENCES
Books and Journals
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of destination marketing & management. 4(3). pp.151-161.
Hall, C.M., Timothy, D.J. and Duval, D.T., 2012. Safety and security in tourism: relationships,
management, and marketing. Routledge.
Huang, Y.C., and et. al., 2013. Exploring user acceptance of 3D virtual worlds in travel and
tourism marketing. Tourism Management. 36. pp.490-501.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Middleton, V.T. and Clarke, J.R., 2012. Distribution channels in travel and tourism: creating
access. In Marketing in Travel and Tourism (pp. 302-322). Routledge.
Park, J. and Oh, I.K., 2012. A case study of social media marketing by travel agency: The
salience of social media marketing in the tourism industry. International Journal of
Tourism Science. 12(1). pp.93-106.
Swarbrooke, J. and Horner, S., 2012. Business travel and tourism. Routledge.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Online
Core concept of marketing. 2019. [Online]. Available through:
<https://www.slideshare.net/sangram96maratha/01-the-core-concept-of-marketing>.