Marketing in Travel and Tourism - Thomas Cook Assignment

Marketing in Travel
and Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 core concepts of marketing for the travel and tourism sector...............................................1
1.2 Impact of the marketing environment ..................................................................................2
1.3 factors affecting consumer motivation and demand in the travel and tourism sector..........3
1.4 principles of market segmentation........................................................................................4
TASK 2............................................................................................................................................5
2.1 Importance of strategic marketing planning.........................................................................5
2.2 Relevance of marketing research and market information to managers...............................6
2.3 Assess the influence of marketing on society.......................................................................6
TASK 3 ...........................................................................................................................................7
3.1 Discussing issues in products, price and place elements of marketing mix..........................7
3.2 Assessing importance of services sector mix........................................................................7
3.3 Concept of Total Tourism Products to Thomas Cook .........................................................7
TASK 4 ...........................................................................................................................................7
4.1 Integrated nature and role of the promotional mix ...............................................................7
4.2 Integrated promotional campaign.........................................................................................8
REFERENCES .............................................................................................................................11

INTRODUCTION
Thomas Cook is a leading travel and tourism company. The agency was started by
English man Thomas Cook in 1855. The company work on the principle to provide the best
services to potential customers. Entity organized their first trip in 1841 by rail carrying 500
customers. Till now, they have managed to plan many tours and travel packages in various parts
of the world (Assaker, Vinzi and O'Connor, 2011). Study will discuss core concept of marketing,
assess impacts of marketing environment, discuss factors affecting consumer motivation and
demand and analysis the principles of market segmentation and its planning at Thomas Cook. It
will analysis importance of strategic marketing planning, relevance of marketing research and
information to manager and assess the influences of marketing on society of travel and tourism
sector. It will also discuss issues of products, place and price elements of marketing mix, assess
importance of services sectors mix and apply the concept of total tourism products in travel
business.
TASK 1
1.1 Core concepts of marketing for the travel and tourism sector
Thomas Cook is a famous name in travel and tourism sector. They have a portfolio
covering all the travel brands that have significant value in market. Company is to provide
services in different cities like UK, Ireland, North America, Germany and continental Europe.
Marketing concept used by Thomas Cook is to identify consumers, their needs and wants to
ensure that they offer right holiday package to accurate clients at right time at correct value
(Brotherton, 2012). Company has merged with My Travel who are working together to keep
control and has taken high efforts to stay on top. They focus on design of brochures of
company.
All the organisations keep an eye on the customer as they are the one because of which
company is growing. Thomas Cook also look at its customers constantly, collect feedback and
reviews about services, so that company can make correction and improvements where they are
lacking. Making right goods at correct time and at accurate place is another focus. They keep a
track on products' performance and also update the information. (Evans, Stonehouse and
Campbell, 2012).
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Main aim of Thomas Cook organisation is to satisfy customers by booking flight tickets,
arranging cabs at pick up point, providing discount coupons to retain old customers, keeping in
touch with its regular clients by emails, calls and collecting regular reviews from consumers.
Company believe in providing equal, fair employment, diversity, provide jobs to any category of
people, if they are qualified. There is culture of trust and loyalty among employees of Thomas
Cook which show to their customers which helps to build a strong customer relationship.
1.2 Impact of the marketing environment
Being a renowned and famous company, there are various micro and macro factors
affecting the marketing environment (Mehmetoglu, and Norman, 2013).
Political factors: - These are the elements related to regulation, rules, trade restrictions, tariff,
and policies. Morocco's government has brought changes in many of its labour and employment
rules which have increased the availability of more employees for Thomas Cook. Egypt receives
a strong support from US which is a big challenge for the state as they are dependent on other
countries for finance.
Economic factors:- The economic factor influence on demand on mainly, income, price and
profits (Moutinho, 2011, 2011). as been a great fall in the value of currency of Egypt which is
not a good sign for the successful running of Thomas Cook. The company gets a fed due to
fluctuation in the rate of currency, unemployment rate, change in income etc. of many countries.
Socio-cultural factors: - Egypt is like many other countries having high rate of population and
gap between different sections of the society. There are many tourist attraction places and has
become “mass tourism” place which attract high rate of tourists. Marrakesh, a major tourist
attraction place in Morocco, which attracts a huge number of customer. People here are friendly
and helpful (Perch-Nielsen, Sesartic and Stucki, 2010).
Technological factors: - The easy internet access in countries like Egypt and Morocco, it has
become comfortable for the travellers to search places, restaurants, clubs, beaches nearby easy
transportation which attracts a huge number of customers.
Micro Environment:
Competitors: - An organisation has to face competition from many travel and tourism
companies. To be differentiated, they try to be providing unique services to its customers, by
reviewing their feedback and meeting those wants and needs. An organisation run their own
flights at some stations in the countries of Morocco ,Egypt.
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Buyer: - Thomas Cook faces a problem from its purchasers because they will not accept prices
tagged with the package and try to negotiate price (Sikdar and Vel, 2010). Company also search
for other tour packages which could be threat.
1.3 Factors affecting consumer motivation and demand in the travel or tourism sector
Thomas Cook values its customers, adds to it itinerary, most attractive places which
motivates and satisfies its consumers. Designing and planning team will cover all attraction
places in Morocco, Egypt. They will design right package (Sivesan, 2012).
Tourist attraction places
Morocco has cute and colourful painted towns and cities. It is home of UNESCO's world
heritage. Attractions are Marrakesh Medina, Hassan Ii Mosque, Oudaias Kasbah, Fes el Bali,
Tangier, Chefchaouen, Volubilis, Babal-Mansour, Aitben Haddou, Dades Valley, Essaouira, Erg
Chebbi and many other places.
Egypt is a home of ancient Pharaohs, an eye-popping destination for tombs and temples.
It has so much to see for travellers like Pyramids of Giza Luxor's Karnak Temple, Islamic Cairo,
Aswan, Abu Simbel, Museum, White Desert, Siwa Oasis, Alexandria, St, Catherine's Monastery,
South Sinai, many other tombs and temples (Spenceley, 2012).
Weather
Located in Northern Africa, the weather here is usually hot. The place is dry and many of
its areas are desserts. There are some parts in north which have rainfall. The Best time to visit
this place is during April-November.
Morocco is year-round destination, means every place a different weather. One has to
plan according to the place he has to visit as the country has varying climate in the regions of
desert, coast and mountains. Best time to visit this place is April and May as the weather is warm
and dry (Xiang and Gretzel, 2010).
Local people
Most people living in Morocco and Egypt communicate in French, Spanish and Arabic.
Both are Arab Muslim countries. People here are honest, cheerful, helpful. They have welcoming
attitude towards the guest from around the world and respect for people.
Hostel and travel service
Travel companies in Morocco, Egypt provides hotels with luxurious, semi luxurious,
many other local hotel apartments to its visitors. The hotel suites have the windows with a view
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of colourful town, archaeologist, ancient history which attracts many visitors. Thomas Cook can
book the rooms of reliable hotels according to the budget of the people (Sikdar and Vel, 2010).
Easy transportation facility
Food
Egyptian food is not very famous but their food is delicious. Some of popular dishes are
Koshary, Sambousak, Molokheya and Kebabs. Morocco cuisines are the greatest in the world.
Even vegetarians can find food easily over there.
Connectivity
The airports of Egypt are well connected regionally and internationally. A person visiting
here will easily get Thomas Cook flights are connected to different cities in the Egypt like
Hurghada. In Morocco, Thomas Cook is fly flights in Marrakesh, Agadir (Brotherton, 2012).
1.4 Principles of market segmentation
Market segmentation is defined as the process of division of market into small group of
people on basis of their wants, needs, preference and how they respond to marketing strategies. It
helps to study market in precise manner which assists to easily locate customers and fulfil their
needs.
Thomas Cook is most familiar name and a leader in the travel industry. They operate in 6
geographic segments in 21 countries with 22.5 million customers. Selection of an appropriate
segment has helped firm in growth and development (Sivesan, 2012). A proper segmentation
will help Thomas cook to plan holidays in Egypt and Morocco easily.
Geographic segmentation
The market is divided into groups based on the location of the people either village or
city. Thomas Cook focuses on British clients, belong to Muslim community as they will show
more interest in visiting and would also be more concerned in knowing about these locations.
Egypt and Morocco have a long list of beautiful places to be visited by people. Thomas Cook
launch advertisements, poster and pamphlets with offers to attract more customers.
Demographic segmentation
The division of the customers can be done on the on basis of age, gender, lifestyle social
class, income, taste and preference. Thomas Cook manager should concentrate the clients who
are travelling a lot. Tourists who have more earning and prefer to travel every time during
holidays. Company should also focus on providing family package, s as Egypt is a historic place
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which may be liked by families (Xiang and Gretzel, 2010). Entity should concentrate the
students who are interested in history and want to explore their knowledge in past times by
providing special discounts. Even architecture, researchers can visit these places, explore their
knowledge. Both the cities are welcoming of people and all the luxury that one need, so anyone
can visit these places.
Psycho graphic segmentation
The customer reactions, interests and opinions which is based on lifestyle, education and
income. It is essential to target those groups which are interested in visiting the old historical and
archaeological places (Sikdar and Vel, 2010). While planning packages for places like Egypt and
Morocco, it is crucial to target those people who are interested in history. Keeping in mind the
targeted customers and their interest and desires, Thomas Cook can earn a lot of revenue and
profits.
TASK 2
2.1 Importance of strategic marketing planning
Strengths:
One of the largest and oldest travel company, Thomas Cook offers its services in Egypt
and Morocco. It is a travel firm which provides services of airline, foreign exchange, booking
tickets at hotels and flights. They provide affordable packages to the people visiting Egypt and
Morocco. Such company provides negotiable as well as tailored plan to its customers. It covers
more than 100 destinations all over the world. Most reliable agency from customer view
(Brotherton, 2012).
Weaknesses;
Due to large number of competitors it is difficult for firm to sustain in the market. There
are many agencies entering into tourism line of business thus providing huge competition to
Thomas Cook management of offices at different of parts of the world has also becomes difficult
for Thomas cook (Cookenceley, 2012).
Opportunities:
They have sufficient or ample amount of financial resources which may help them in the
fing for merger and acquisition. Growth in tours or travel industry is also a great opportunity for
company. Being the largest travelling agency in UK, there are chances of expansions in other
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parts of the world. With new technology, there is wide scope for providing services digitally like
booking tickets while sitting at home (Moutinho, 2011).
Threats:
The company faces a huge loss in the airline sector. Entity always face uncertainties from
government. Low cost services providers are threat for the company. Entry and exit barriers into
the airline sector are so difficult that company has to keep a check while investing in this.
2.2 Relevance of marketing research and market information to managers
Market research is the process to gather, record and analyse data. Thomas Cook plan for
holiday packages as per the requirements of their customers. They invest a huge amount in
research to find out the new and attractive places for their consumers. The steps will help to
make their services unique and differentiated from others (Sikdar and Vel, 2010). They work to
make their services better. By evaluating the needs, wants of the clients who are travelling to
Egypt, Morocco, like what tourists like, what kind of food can prefer, types of hotels, places
would like to visit, company can tailor its plan accordingly. Entity can collect reviews and
feedback from their customers.
Firm try to maintain connection with its consumers through mails, social sites, messages,
websites and postal mails. Entity also offer discount coupons to its regular and friendly
customers (Xiang and Gretzel, 2010). Thomas Cook treats everyone fairly and if any kind of
discrimination is seen, then they take strict actions. Company have a powerful set of values. All
employees are expected to follow those rules and policies which helps in defining good
operations of the company. The main function of Thomas Cook is identifying customers and
plan holidays. They regularly focus on improving their existing plans to deliver more services as
well as generate more revenue.
2.3 Assessing the influence of marketing on society
Marketing has reach far beyond then we can think. It can be defined as proper planning
and execution of 4P's which are price, place, promotion, person, satisfaction of individuals and
meeting the objectives of organizations (Perch-Nielsen, Sesartic and Stucki, 2010). Marketing is
process by which business promote their products to customers and encourages them to buy their
products. It involves marketing product through various tools of advertisement, website,
pamphlets, mails, poster etc.
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Consumerism refers to process of protection of customers from unfair practices like hiked
prices, violating their rights etc. If customers are not satisfied with the services of Thomas Cook,
then they can fill a suit against them.
Corporate social responsibility of Thomas Cook lays emphasis on positive aspects and
removal of all negative factors which may influence their work like carbon footprints.
To enhance and expand its work there are various partners with whom Thomas Cook
works like travel foundation, enable holidays, WRAP etc. (Evans, Stonehouse and Campbell,
2012).
TASK 3
3.1 Discussing issues in products, price and place elements of marketing mix.
Covered in Power point presentation
3.2 Assessing importance of services sector mix
Covered in Power point presentation
3.3 Concept of Total Tourism Products to Thomas Cook
Covered in Power point presentation
TASK 4
4.1 Integrated nature and role of the promotional mix
Promotional mix combines several methods, techniques and other tools involved in
communication of various processes for representing a company, its products as well as services
to target consumers in particular market. A successful promotional mix provides determination
of success related to marketing mixture and facilitate in attracting as well as retaining customers.
A promotion combination has majorly six components. First can be advertisement that includes a
short and creative representation for company's product that is broadcast through television or
radio which tends to promote ideas and other aspects which are related to their offerings. There
are various benefits which can be associated with this promotional techniques, as it leads to
provide them an opportunity to broadcast their offerings to mass audience which have an impact
on creating influence on their decisions for selecting particular travel agency for their travelling
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programmes. Many travel companies make their endorsement done through famous personalities
that attracts many customers, as their brand name is well recognised.
Secondly, personal selling includes persuading buyers through oral presentation that
involves direct conversation with them. It is conducted through sales representative, meetings,
incentive programmes and distribution of samples among customers. It leads to know the
customer personally which provides an idea regarding their expectations and needs, expectation
from company which leads them to provide an opportunity for formulating strategies which can
be beneficial for gaining those segment of customers in an effective manner. Through personal
selling, customer can provide honest feedbacks which can be very beneficial for company in
order to improve to their services which might lead to improve their services in modified and
advanced manner which can highly satisfied their target customer and can create a huge base of
customers.
Another one is sales promotion in which a company introduces several offers for a specific time
period in order to increase their sales. It is done through providing discounts, offers that help to
retain existing customers as well as attract other buyers for buying their products. It leads to
provide marketing of product in market and promote it through reduction in price which is
preferred by every potential customer present in market (Dibb and Simkin, 2013). The fourth
aspect of promotional mix is public relation, which includes building up of an effective relation
with buyer through spreading information from various mediums such as reports, newspaper
periodicals, magazines etc.
This leads to retain customers and build up more loyalty which is based on good terms. It
is very important to develop a positive image in market that can provide an advantage over other
competitors and will persuade buyers to prefer them over others. It tends to attain existing
customers which will lead to make their base stronger, providing a chance for earning more
profitability over others. Apart from this, direct marketing is also very advantageous that
includes several aspects such as establishing a direct communication with customers through
messaging from mobiles, emails, letters and websites. Apart from this, door to door
advertisement is also preferred. It is used in current scenario as it leads to attract business
travellers who travels for corporate purpose and are more engaged with mails therefore affiliated
marketing will be very effective.
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4.2 Integrated promotional campaign
Promotional campaign for Thomas Cook must attract the target segment of the market.
As the particular audience are the visitors who are from international zone of time and are
interested for visiting Morocco or Egypt and wanted to have their first-hand experience.
Company must understand their needs in order to decide motivating and attracting factors which
affects their decision making power for visiting these destinations (Kotler, 2015). With all such
information, it should be much easier for Thomas Cook to decide selection of effective channel
which can be preferred for reaching those individual across the world. The perfect source of
marketing which can be used for advertisement campaigning can be Social Media Platform such
as Facebook, you tube, snap chat, Instagram etc. that can attract global customers and can be
applied instantaneously for attracting targeted market segments. Apart from this, the pricing
strategy which is used for these individuals, can be penetrating plan which will be affordable by
all travellers belonging to different income levels.
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CONCLUSION
It can be concluded that core concept of marketing in travels and tourism sector, impacts
on marketing environment and various factors which are affecting customers' motivation and
demand. It can be also concluded that importance of marketing research and marketing
information to manager of Thomas Cook and its influences on society. It can be concluded that
issues of products, prices and place elements of marketing mix and importance of services
sectors mix elements to travel and tourism sectors. It can be also concluded that integrated
natures and roles of promotional mix.
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REFERENCES
Books and Journals
Assaker, G., Vinzi, E. V. and O'Connor, P., 2011. Modeling a causality network for tourism
development: an empirical analysis. Journal of Modeling in Management. 6(3). pp.258 –
278.
Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach.
Routledge.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Mehmetoglu, M, and Norman, O., 2013. The link between travel motives and activities in nature-
based tourism. Tourism Review. 68(2). pp. 3-13.
Moutinho, L., 2011. Strategic management in tourism. CABI.
Perch-Nielsen, S., Sesartic, A. and Stucki, M., 2010. The greenhouse gas intensity of the tourism
sector: The case of Switzerland. Environmental Science & Policy. 13(2). pp.131-140.
Sikdar, A, and Vel, P., 2010. Getting the customer interested in your innovation: role of
distribution and promotion strategies. Business Strategy Series. 11(3). pp. 158-168.
Sivesan, S., 2012. An empirical study on the promotional mix and brand equity: mobile service
providers. Herald Journal of Marketing and Business Management. 2(1). pp. 47-50.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Xiang, Z. and Gretzel, U., 2010. Role of social media in online travel information
search. Tourism management. 31(2). pp.179-188.
Online
Marketing Mix., 2018. [Online]. Available through . :
<https://www.mindtools.com/pages/article/newSTR_94.htm>.
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