Marketing in Travel and Tourism

This course study evaluates the core concepts of marketing in relation to the segment of travel and tourism with reference to impact of marketing environment on the business of travel and tourism. In addition to that, this discourse highlights the influential factors, in the behavior of consumers and customers in terms of travel industry. On the other hand, this critique highlights the importance of marketing segmentation and marketing planning in the travel industry. Marketing research and service sector mix is also discussed in this course study. Moreover, the concerned discourse focuses on the promotional mix and campaign of the travel destinations, with approaching proper elements of marketing mix and influence on society.

MARKETING IN TRAVEL AND TOURISM
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Table of Contents
Introduction.................................................................................................................................. 3
LO1.............................................................................................................................................. 3
1.1 Travel and tourism marketing concept................................................................................3
1.2 Influence of marketing environment in travel and tourism...................................................4
1.3 Influential factor of travel and tourism demand and motivation of consumers.....................4
1.4 Marketing segmentation in marketing planning..................................................................5
LO2.............................................................................................................................................. 5
2.1 Significance of marketing planning in tourism business.....................................................5
2.2 Marketing research and relevance for travel and tourism managers..................................6
2.3 Marketing influence on society...........................................................................................7
LO3.............................................................................................................................................. 8
3.1 Issues of marketing mix......................................................................................................8
3.2 Significance of elements of service sector mix...................................................................8
3.3 Total tourism product concept in tourism business.............................................................9
LO4.............................................................................................................................................. 9
4.1 Promotional mixes..............................................................................................................9
4.2 Promotional campaign for travel business........................................................................10
Conclusion................................................................................................................................. 10
Reference List........................................................................................................................... 12
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Introduction
Travel and tourism marketing is considered as the promotion of a particular destination and
geographical region, in order to meet the demands and supply of their target market consumers
and customers. Proper marketing needs to fulfill the demands and needs of their customers in a
proficient manner, which can help them to gain retention towards the particular area in tourism
business.
This course study evaluates the core concepts of marketing in relation to the segment of travel
and tourism with reference to impact of marketing environment on the business of travel and
tourism. In addition to that, this discourse highlights the influential factors, in the behavior of
consumers and customers in terms of travel industry. On the other hand, this critique highlights
the importance of marketing segmentation and marketing planning in the travel industry.
Marketing research and service sector mix is also discussed in this course study. Moreover, the
concerned discourse focuses on the promotional mix and campaign of the travel destinations,
with approaching proper elements of marketing mix and influence on society.
LO1
1.1 Travel and tourism marketing concept
In terms of travel and tourism sector, customer satisfaction and loyalty are key elements which
help to gain proficiency and effectiveness in the travel industry. However, on the other hand, in
order to gain proper customer satisfaction and loyalty, a concrete marketing strategy needs to
be approached. In the view of Hudson and Thal (2013, p.159), marketing in relation to travel
and tourism can be effective if the consumers and potential customers will be linked with the
services of travel industry. On the other hand, different approaches are implemented in the
travel and tourism business, in order to gain attention of the customers and consumers.
On the other hand, the concept of marketing is dependent on different determinant factors,
which might influence directly or indirectly on the marketing criterion of an organisation or an
entity. The factors, on which the concept of marketing is centralized, are:
Needs, wants and demand: In terms of travel and tourism, meeting of the market needs,
demand and wants are the utmost important factors, which needs to be proper. In the view of
Page (2014, p.27), approaching the marketing strategies based on the needs demands and
wants of the customers and both based on the market trend in the travel and tourism industry
can help to gain success.
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In addition to that, satisfaction of customers in relation to the services and cost of the services
are other important things in the travel and tourism industry. If the customers won’t get facilities
worth of the cost, it might influence the customers in a negative manner.
On the other hand, exchange, transaction and relationship also plays an important role in
establish a successful organisation. According to of Keller and Kotler (2015, p.60), exchange
relationship are delivered to the customers with an expectation og receiving a benefited amount.
thus, the marketers need to provide proper facilities and expectations o customers in terms of
services of travel and tourism.
Marketing strategy, in terms of promotion of Scotland, through Visit Scotland needs to approach
several activities, which can help them to gain the customer’s needs and demands in terms of
the Scotland tourism. In order to promote Scotland, Visit Scotland can approach a market
research and customer orientation in order to identify the basic needs and requirements of
customers. In the opinion of Huang et al. (2013, p.497), adding the values of customers in the
travel and tourism services can help to gain customer satisfaction and loyalty. In order to
promote the Scotland tourism, Visit Scotland needs to evaluate their existing services, which are
delivered to their customers. In the view of Webster and Ivanov (2014, p.140), changing with the
trend in travel and tourism industry, can help an travel organisation to gain customer loyalty and
brand retention. In context to the concerned statement, Visit Scotland needs to update their
services, based on the requirements of changing trends and services of travel industry.
In addition to that, in order to promote Scotland tourism, through the Visit Scotland, PESTLE
analysis can be approached. In the view of Keller and Kotler (2015, p.59), using the PESTLE
analysis as the marketing strategy and concept for an organisation can help to analyse and
evaluate all the possible factors, which might influence the organisational decisions and
strategies.
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Figure 1: PESTLE Model
(Source: Created by learner)
Using PESTLE analysis, Visit Scotland can identify the following factors of marketing in terms of
Scotland tourism promotion:
Political
Political factors of Scotland, such as the travel rules and regulations might impact the travelers
towards influencing the tourism factor. In addition to that, if the travel and tourism cost of
Scotland are high and expensive for the travelers from other countries, it might influence the
population size of travelers in terms of Scotland. On the other hand, as Webster and Ivanov
(2014, p.139) has commented that, other different political factors, such as political instability of
Scotland might create negative publicity and thus might decrease the numbers of Scotland
visitors.
Economical
Gradual growth in the economy of Scotland has evidenced the satisfaction of travelers, which
needs to be more enhanced in order to gain more nu7mbers of customers. On the other hand,
the economical conditions, such as the economy and financial condition of the travelers also
influence the tourism industry of Scotland. in addition to that, as Page (2014, p.27) has stated
that, the currency fluctuations also contribute towards influencing the customers.
Social
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PESTLEPoliticalEconomicalSocialTechnologicalLegalEnvironmental

Social factors, such as the culture, belief, background of customers are the other social factors,
which might influence the Scotland tourism in a certain manner. In order to enhance the
customer satisfaction in terms of social factors, Visit Scotland can provide effective work
management top their customers. On the other hand, the Visit Scotland might also introduce the
culture and delicacy of Scotland to their customers in an effective manner, which can help them
to promote the travel and tourism of the Scotland and thus ultimately promote the Visit Scotland
itself.
Technological
In this current era, people are more concern about the facilities and services, which they can get
from the travel and tourism industry (Mason, 2015, p.48). On the other hand, satisfactory
services of the travel industry also help to gain repeat customers. In terms of technology, Visit
Scotland can provide the technological advancements to their customers which can help them
to gain satisfaction and thus can have an advantage of repeat customers in future. In addition to
that, the transportation technology, such as boarding service, ticketing services, providing
internet services in accommodation can help Visit Scotland to attract large numbers of
customers.
Legal
The legal factors of security in terms of travel and tourism industry need to be proper. On the
other hand, Visit Scotland needs to be maintained and follow the legal rules and regulations of
travel and tourism in order to provide proper security and safeguarding to the travelers.
Environmental
In terms of Visit Scotland, they need to preserve the environment on order to maintain the global
concerns of environmental factors. On the other hand, Visit Scotland needs to strategise their
policies, which can help to preserve the global and natural resources and thus gain the future
scopes of tourism in Scotland.
1.2 Influence of marketing environment in travel and tourism
In terms of tourism industry, the organisations can gain efficient profit and revenue through
approaching proper marketing strategy, with promotion of the travel destinations. However, in
the opinion of Xiang et al. (2015, p.247), different influential factors, both the macro and micro
environment might influence the sector of travel and tourism. In case of Visit Scotland, the
organisation might be influenced through different factors.
On the other hand, marketing environment of Scotland, in terms of travel and tourism can
influence the travel business in an efficient manner. In the view of Hall (2013, p.42), Scotland is
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considered as one of the heritage place, in relation to the travel destinations. On the other hand,
heritage and adventurous places in the globe attracts lots of travelers to their destinations.
Thus, as Scotland, evidence to have both the heritage and adventurous place, thus, travel
marketing scope in the country is huge. On the other hand, from a report, it has been found that
Buhalis and Foerste (2015, p.153) has commented that, 154.6 Million visitors and travelers were
gained by Scotland tourism, which helped to gain attention among other different travelers and
thus helped to promote Scotland.
The growing numbers of travelers and customers in the Scotland tourism can help to enhance
the economy of Scotland, with an upward curve. As Scotland tourism has the potential to attract
the customers of travel and tourism, thus it can influence the employment sector of Scotland. In
the opinion of Leung and Law (2015, p.23), increment in the destination attraction can help the
local individuals of the area to gain employment, as the tour guide or other such employment
opportunities. On the other hand, the organisation and the country of tourist destination can also
gain high economic growth, which can help them to improve their GDP level and other
requirements.
1.3 Influential factor of travel and tourism demand and motivation of consumers
In relation to the tourism sector of Scotland, both the organisation and tourist destination can be
influenced by the influential motivational factors of consumers and customers. In the view of
Xiang et al. (2015, p.252), proper motivation of the customers can help the tourist organisations
and destinations to gain and attract large numbers of customers and thus to gain high revenue
generation through travel business. On the other hand, financial background and currency value
of Scotland might influence the mindset of customers, which can influence both the Scotland
Visit and the leisure travelers. As Xu et al. (2016, p.1138) has commented that, in order to travel
tourist destinations, customers needs to have appropriate amount of money.
If the currency value of Scotland will be expensive for the travelers of other country, the
consumers might not visit Scotland, due to lack of finance. On the other hand, it will also impact
on the business growth and revenue generation of Visit Scotland and restrict the travelers to
visit Scotland.
On the other hand, competition might be other influential factor, which can influence the
motivation of customers. If the other tourist destination of other countries in comparison to
Scotland provides more attractive offers to the customers, the chances of shifting mindset from
Scotland will be higher and thus it can influence the economy of Scotland and portability of Visit
Scotland.
1.4 Marketing segmentation in marketing planning
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As different factors and customer mindset can influence the travel and tourism business, thus
Visit Scotland needs to approach proper marketing strategy in order to attract the customers
and travelers towards the Scotland tourism. On the other hand, the growing competition and
advanced technology approach is helping the travelers to gain more information and services
from the organisations. Thus, Visit Scotland needs to provide attractive features and services to
their customers, which can be disseminated as information through the online website of Visit
Scotland.
On the hand, market segmentation needs to be done properly by Visit Scotland, in order to
identify the continuous changes in the consumer behavior. In addition to that, based on the
changing behavior of customers, in relation to the tourism of Scotland, the travelers can be
segmented into four segments: Adventure seekers, engaged sight sheers, natural advocates,
food culturalist and curious travelers. In addition to that, the market segmentation of Scotland
tourism will be based accordingly their region, nation and demographic area.
In the view of Standing et al. (2014, p.109), market segmentation helps the organisations to
identify the customer needs and requirements. In order to promote Scotland tourism, Scotland
Visit will approach the principles of marketing principles, which can help them to gain the needs
and requirements of customers and thus to promote Scotland and their organisation. Scotland
Visit will satisfy the needs of customers, which can help them to gain the brand retention and
thus can help to gain repeat customers in promotion of Scotland. According to Dolnicar and
Ring (2014, p.36), customer retention and repeat customers in tourism helps the organisation to
increase their market share and thus to enhance the profitability of tourist destination through
enhancement in economy of country.
Other than that, in order to promote Scotland, Visit Scotland can approach other different
customers based on the segmentation of following criterion:
Demographic
Visit Scotland can promote and plan the Scotland tourism based on the family income, genders
and age of the customers. Different customers from different demographic segmentation can be
offered with different process and offers.
Behavioral
Behavioral segmentation is based on the buying behaviors of the customers. In order to
promote the tourism of Scotland, Visit Scotland needs to reseach on the behavior of customers
and thus offer them according to their preferences.
Psychographic
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Visit Scotland can approach their customer’s with segmenting them based on the lifestyle
choices, attitudes, interests and values of customers.
LO2
2.1 Significance of marketing planning in tourism business
In terms of Scotland tourism, market planning can play an important role in gaining the
advantage of target customers and objectives of tourism business. Approaching proper
marketing planning in Visit Scotland can help their organisation to achieve their organisational
goals and objectives in relation to the promotion of Scotland as a tourist destination in a
proficient manner.
On the other hand, Visit Scotland can use the SOSTAC model of pr Smith, in order to gain
effective outcomes. SOSTAC model basically includes six different elements, which can help an
organisation to place proper marketing planning in order to achieve their objectives. The six
objectives of SOSTAC are:
Situation Analysis: in terms of situation analysis, Visit Scotland needs to measure the
effectiveness and the brand position of the organisation. In order to do so it needs to research
the overall travel market and needs to enhance the internal capabilities and resources. SWOT
analysis can also be approached in order to identify the position of Visit Scotland.
Objectives: Visit Scotland needs to set the objectives in a concrete manner, such as to enhance
the customer satisfaction and achieve the customer retention targets.
Strategy: based on situation analysis and objectives, Visit Scotland needs to strategise the
marketing planning and procedures, in order to successfully promote the Scotland.
Tactics: Approaching proper tactics neds tl be done by Visit Scotland, in order to establish
successful promotion of Scotland. Visit Scotland can approach communication mix, marketing
mix, e-campaigns, social networking and other mediums.
Action: in terms of actions, proper roles and responsibilities needs to be approached by Visit
Scotland with reference to details of tactics.
Control: in terms of control Visit Scotland needs to measure their effectiveness through different
performance indicators, such as KPI, customer satisfaction surveys, visitors profiling and other.
Approaching the marketing planning model of SOSTAC, Visit Scotland needs to analyse the
situation, with reference to identification of the target customers, competitor analysis and SWOT
analysis. In the view of Xiang et al. (2015, p.246), SWOT analysis can help the organisations to
identify the strengths and weaknesses of the organisation and thus can help to place efficient
strategy, if required. On the other hand, competitor analysis can help Visit Scotland to identify
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the strategies and information of rivals, which can help them to develop unique strategy, in order
to gain competitive advantage.
On the other hand, objectives of Visit Scotland need to be developed with SMART criterions,
which can help them to set the objectives with concrete focus and relevance. In addition to that,
proper strategy needs to be developed based on concrete communication, acquisition and
engagement. In the opinion of Baker (2016, p.95), proper acquisition through approaching
software can help an organisation to measure their performance and visitors, through using
technology such as Google analytics. On the other hand, customer’s engagement and effective
communication can help Visit Scotland to gain idea on the customer's needs and demands. In
the opinion of Becker (2016, p.18), organisations can approach the marketing mix tactics in their
business in order to meet the demands and requirements of their target customers.
Apart from implementation of proper tactics of marketing mix, Visit Scotland needs to approach
marketing tactics, which can help them to gain idea on their performance through, SEO or pay-
per-click. Thus, based on the tourist destination promotion of Scotland, Visit Scotland needs to
execute their planning based on the above approach of SOSTAC. In addition to that, Visit
Scotland needs monitor their marketing planning and strategies with the changing trend in
order to attract more numbers of customers to Scotland, which can help to increase the
economy of Scotland and as well as help to increase the brand image and revenue of Visit
Scotland.
2.2 Marketing research and relevance for travel and tourism managers
Market research is necessary for the travel and tourism organisation in order to identify the
market circumstances and competitors, which might influence the business of Visit Scotland. In
the opinion of Han and Hyun (2015, p.24), an effective market research can help an
organisation to gain the requirements of customers, market trends and changing demand of
travel management in the travel industry.
Different techniques and methods can be approached by Visit Scotland in order to do their
market research; on the other hand, it is required for Visit Scotland to identify the competitor’s
strategy and marketing solutions.
On the other hand, the employees of Visit Scotland needs to be properly communicated and
motivated in order to help the customers to gain quality services from the staffs of Visit
Scotland. The managers of an organisation can approach the motivational theories such as
Maslow theory of motivation or hertzberg’s two factor theories in orders to motivate the
employees to deliver quality services (Appiah et al. 2015, p.357). Approaching the motivational
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strategies to the employees of Visit Scotland, can gain customer satisfaction and thus can
promote Scotland tourism.
On the other hand, managers at the Scottish Tourism need to have proper and relevant
information, in order to place strategy in a concrete manner. In addition to that, as Standing et
al. (2014, p.103) has stated that, in order to gain a strong market position in the marketplace,
the organisations need to analyses their competitors and market trends in an effective manner.
In addition to that, in order to implement changes in the policies and strategies of Visit Scotland,
the managers of Scottish Tourism needs to access accurate and relevant information from the
market research.
2.3 Marketing influence on society
Tourism marketing is considered as the fast growing industry, with considering the rapid
changes in the customer mindset and behavior, in relation to travel. However, in the view of
Goodall and Ashworth (2013, p.62), tourism marketing on the other hand has an effective
influence in the society. Tourism of Scotland might influence the local people and environment.
In the opinion of Pulido et al. (2015, p.56), effective tourism marketing might influence the
people, living in the tourist destination areas of Scotland, with leisure facilities and better
lifestyle. With an increment in Scotland tourism, the local people can have opportunity to involve
in the employments of several projects of Scotland tourism. However, on the other hand,
tourism marketing might influence negatively in terms of social and culture. As the local people
might adapt the culture of other countries and thus can diminish their own culture.
Tourism marketing will help the local people of Scotland to interact and communicate with
travelers from different regions, cultures and countries, which can help them to gain cultural
diversification. On the other hand, the negative effect of tourism marketing is that, there are high
chances of adaptation of foreign cultures by the local people. Adaptation of another culture can
hamper the culture, tradition and native customs of Scotland.
In order to enhance the beauty of Scotland tourism, infrastructure and landscape are done,
which helps to attract more numbers of customer and travelers towards it. However, the
negative impact is that, it hampers the natural resources, in order to develop an area. In addition
to that, the local people have to migrate to another place from the destination areas.
On the other hand, as Grosbois (2016, p.252) has commented that, travel marketing helps to
enhance the nation's economy and thus helps the people to enhance their lifestyle. In addition
to that, it can help Scotland to earn high revenue through direct tax from the industry.
Consumerism is another aspect which includes the safety of travelers in other country, and thus
can influence the travel industry.
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LO3
3.1 Issues of marketing mix
In order to identify the marketing strategies and environment of Expedia, different techniques
and tools can be used. The elements of marketing mix can be implemented and approached by
the Expedia, in order to identify the current marketing strategies, such as:
Product
In terms of products of Expedia, different tourist destinations in UK, such as Skyle, London,
Scotland and other destinations, can be approached. On the other hand, as the Expedia is a
tour operator organisation, thus the products of organisation, such as hotel, food services and
such hospitality products needs to be qualitative. The tourist destinations of Scotland need to
have attractive infrastructure and scenarios, in order to gain customer retention.
Price
Price plays an important role in influencing the customers towards service use of an
organisation. Expedia provides affordable price on their hotel services, foods service and other
tourism services such as transportation cost. In the view of So et al. (2016, p.73), low and
affordable provide products and services attracts large numbers of customers and thus can help
the organisation to gain strong customer retention. Affordable tourism destinations of Scotland
can be approached by VISIT Scotland, which can help to attract more numbers of customers.
Place
Chosen place for the tourism destination will be London, Scotland and Skyla. The customers
can access information from the website portals of the organisation and as well as from the
physical store of Expendia. The attractive scenarios of Scotland can be uploaded via
photographs on the websites and thus needs to be accessible by the customers from different
regions.
Promotion
The tourism packages and offers will be promoted through SEO, social media advertising, sales
and offerings on different tour destinations. Social media advertising can help to gain more
popular and viral and thus can help to gain large population in terms of travelers.
3.2 Significance of elements of service sector mix
Service sector mix helps to communicate with the potential and target customers of an
organisation through collaboration of different service mix elements. In the opinion of Law et al.
(2014, p.734), service mix of elements includes 7 elements, such as: product, price, place,
promotion, physical evidence, people and process.
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In order to gain efficiency in the marketing strategies and planning in Expedia, the organisation
at first needs to research the market, customer and competitors effectively. Products of Expedia
needs to be qualitative and with attractive services. According to Prebensen et al. (2014, p.921),
tourism sector needs to place affordable and attractive prices, in order to gain large numbers of
customers. On the other hand, as tourism sector involves travelers and customers from different
background, region, and countries and financial background, thus price needs to be placed with
proper customer orientation.
Place in Expedia needs to be accessible by the customers. The transportation systems of the
tourist destinations, needs to be properly approached by Expedia in order to have accessible
facilities.
In addition to that, Expedia needs to promote their brand and products through several digital
media, such as social media, website and through different search engine tools. Physical
evidence in travel and tourism industry plays an important role. The destination place, pictures
on website needs to be beautiful and attractive in order to attract the customers. People in terms
of tourism of UK, needs to have knowledge of the destination places and skills of understanding
different language, which can help the travelers from other country to understand the
information.
3.3 Total tourism product concept in tourism business
Total tourism products are referred as the collaborative services of different elements and
services, which are delivered to the target customers in order to satisfy the needs and demands
of customer. In the view of Cetin and Dincer (2014, p.192), tourism product is generally
considered as the overall experience of a customer during a specific tour of a specified region.
The experiences and benefits, gained from an organisation in exchange of money are the total
tourism products, which influences the organisational growth and brand image.
In terms of Expedia, the organisation needs to provide the service of accommodation,
transportation, foods and beverages, based on the needs of customers. In order to do so,
Expedia needs to needs to provide their products, such as accommodation, transportation
services to their customers in an effective manner. On the other hand, communication needs to
be concrete through advertising in order to gain large numbers of travelers.
Quality services and products to the customers of Expedia can help them to gain high revenue
and brand image, which ultimately helps to gain repeat customers and new customers through
word of mouth and positive publicity.
LO4
4.1 Promotional mixes
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Promotional mix is considered as the promotion of products through using several promotional
mediums, such as public relations, sales, advertising, sponsorship and others. In terms of
Expedia, it can use the promotional medium of social media sites. In the view of (), approaching
social media sites in order to promote the products, can help the organisation to reach to a
larger number of customers.
On the other hand, sales promotion can help to advertise Expedia through paid marketing
advertisement. In addition to that, Expedia can use direct marketing in order to communicate
with their target customers directly through email or other medium. In the view of Jamaludin et
al. (2016, p.7), promotional mix tools can help to communicate with the customers effectively
and thus helps to gain strong relationship with their customers and thus to gain brand loyalty.
4.2 Promotional campaign for travel business
As the promotional campaigns can attract different customers from different demographic areas,
thus, Expedia can approach the promotional campaign, where the promotional tool of social
media can be approached in order to advertise their services and products.
In the view of Prayag et al. (2013, p.123) approaching the promotional campaigns can help
organisations to gain attention from the customers and thus can gain an advantage of customer
retention. Promotional campaign approach by Expedia can thus help to gain competitive
advantage through strong customer retention.
On the other hand, promotional campaign can help Expedia to contact to a large numbers of
customers and other increase the use of different media. In addition to that, campaign
advertisement on the social media approach can help the organisation to gain customer
attention. As Jin et al. (2015, p.92), has commented that, social media is one of the major tool in
this current era, which can help to advertise the products and thus to gain high brand image,
with approaching huge customers from different corners of world. Thus, approaching the social
media sites for advertising their campaign can help to gain customer retention, brand image and
to gain huge customers. In addition to that, Expedia can gain high sales and revenue through
attracting lots of customers using campaign.
Conclusion
From the above study it can be concluded that consideration of customer’s choice needs to be
there in the travel industry marketing. Approaching the marketing strategies and planning based
on the customer preference can help the travel organisations to gain customer satisfaction and
retention.
On the other hand, travel destinations needs to be properly advertised in order to gain attention
by the customers. The market segmentation is another aspect which needs to be incorporated
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properly in order to identify the needs and requirements of customers. On the other hand,
proper promotional mix elements needs to be considered in the tourism marketing, which can
help to gain proficiency in the organisation and enhance the economy of nation.
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