Marketing in Travel and Tourism - TUI Assignment

Marketing in Travel and Tourism
Table of Contents
INTRODUCTION...........................................................................................................................3

L O 1................................................................................................................................................4
ARTICLE...............................................................................................................................4
1.1 Core marketing Concepts for travel and tourism sector...................................................4
1.2 Impact of marketing environment on individual travel, tourism business and tourist
destinations.............................................................................................................................5
1.3 Factors affecting consumer motivation and demand in travel and tourism sector...........6
1.4) Principles of market segmentation..................................................................................6
L O 2................................................................................................................................................7
2.1) Importance of strategic marketing planning...................................................................7
2.2) Importance of market research........................................................................................8
2.3) Influence of marketing on society...................................................................................9
L O 3..............................................................................................................................................10
3.1) Issues in marketing mix................................................................................................11
3.2) Importance of service sector elements..........................................................................12
Services -..............................................................................................................................12
3.3) Concept of total tourism business.................................................................................13
L O 4..............................................................................................................................................13
4.1) Nature and importance of promotional mix..................................................................13
4.2) Integrated promotional campaign.................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................16
INTRODUCTION
Hospitality industry is a major part of Travel and Tourism industry. There are various
companies that are operating in the sector that are having a common aim of providing all the
required products and services to the visitors. Tourism industry is divided into various
components. It includes lodging operations of Hotels, Resorts, services of transportation like
aeroplane, ships etc. The industry also involves operations related with food and beverage,

retail stores etc. TUI is a subsidiary of TUI group. It belongs to hospitality industry
(Moutinho, L. and Vargas-Sanchez, A. 2018). It was founded in year 1923 in Germany. The
group offers various products like package holidays, travel, cruise lines, hotels etc. TUI is
headquartered in England, UK. It offers services of travel agency. Product team of the firm is
working on Central America Summer 2020 holidays to Mexico and Costa Rica. The Report
will describe concepts of marketing, in tourism industry, role of marketing in travel and
tourism and impact of marketing on people living in society, importance of conducting
market research etc. Importance of elements of service sector, concept of total tourism etc. It
will also explain importance of marketing mix with reference to new product.
TASK 1

L O 1
ARTICLE
1.1 Core marketing Concepts for travel and tourism sector.
Marketing can be defined as a process where the organizations focus on building and
managing relationships with their customers and managing such relationships formed.
Marketing was earlier considered only in the aspect of goods and services produced but
recently, the concept is becoming increasingly popular in tourism sector as well. Here, the
marketers try to attract their customers by giving them exciting travel packages (Buhalis and
Foerste, 2015). Travel and tourism being a global market, it is very essential that the companies
adopt all the marketing practices attracting maximum number of customers. The core activity of
marketers is the identification of the needs and desires of the customers and at TUI, this is done
excellently by targeting existing and potential customers.
Market Orientation is responsibility of the managers in creating and supplying those products
that fits the customers needs in the best possible way. After the marketers have designed a
product according to the customer's requirements; they have to identify the target market and
make the customers aware of the product that they have brought in the market. Developing
excellent relations with the customers is another core marketing concept which is applicable in
tourism industry as well ((Vellas, 2016)). TUI has been able to achieve this by building a
customer base of 27 million customers.
TUI has been able to bring a revolution in the advertising trends of tourism and travel industry
and by launching their own airways, cruises etc.; they have not only brought diversification in
their present business but also reduced the mediator's cost. For e.g. : While introducing their
own aircraft, the tag line they used for advertising was ' We intend to create a new category of
flying — a holiday airline category.' This was used to make their customers aware of the fact
that the aircraft launched by them is exclusively for the holiday purpose and hence would be
way more interesting than normal airlines (Oromendía, Paz and Rufín, 2015).