Tourism Marketing Strategies and Challenges

This assignment delves into the complexities of tourism marketing. It examines various strategies employed to promote tourism destinations, including market segmentation based on traveler preferences and motivations. The impact of factors such as risk perception (post-9/11), security concerns, and crisis management on tourism marketing is analyzed. Additionally, the influence of technology, particularly the internet and travel agencies, on the tourism industry is discussed.

MARKETING MANAGEMENT FOR
TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A) EXTERNAL ANALYSIS OF THE MARKET (MACRO AND MICRO) AND INTERNAL
ANALYSIS REGARDING THOMSON HOLIDAY GROUP......................................................1
External analysis of Market.........................................................................................................2
Porter’s five force mode..............................................................................................................3
Internal Market analysis..............................................................................................................4
B) OBJECTIVES SET FOR THOMSON HOLIDAY GROUP.....................................................5
C) IDENTIFICATION OF SEGMENTATION, KEY TARGET AUDIENCES AND BRAND
POSITIONING FOR THOMSON HOLIDAY GROUP.................................................................6
D) MARKETING MIX (7 PS) INCLUDING DIGITAL COMMUNICATION FOR THOMSON
HOLIDAY GROUP.........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In order to enhance competitive advantage in today’s increasing globalized world it is
becoming more important for firms to go through the appropriate marketing management. In this
regards, travel and tourism sector is taken into consideration. This is one of the fastest growing
sectors and for the same their marketing teams requires to effectively designing their products
(Gooroochurn and Sugiyarto, 2005). The present study is based on the appropriate understanding
for the development of better marketing plan. In this concern, Thomson holiday group Plc. is
taken into consideration which has owned by the charter airline Britannia from start. They
guarantee a supply of flights for its holidays as well as flights. There is several independent
travel agencies have also been acquired by company. It is an international airline sector which
provides various tours and vacation packages to all their consumers.
In this regards, the present study is based on the marketing management of Thompson
group. It provides appropriate description about several policies entailing the determination of
market size and market segment structure. Further, the nature of customer needs in travel and
tourism industry also being identified. This study gives appropriate description about situation
analysis of company which covers macro and micro environmental factors. Appropriate
evaluation of current situation of company and its marketing objective is being presented.
Moreover, whole study entails with an aim to provide better description about several key
aspects of marketing mix as well as appropriate development of marketing plan for Thomson. A
Marketing Plan for Thomson Holiday Group includes digital communication as well.
A) EXTERNAL ANALYSIS OF THE MARKET (MACRO AND MICRO)
AND INTERNAL ANALYSIS REGARDING THOMSON HOLIDAY
GROUP
This is considered as most effective techniques which help in analysing suitable
information about the company. With the help of using this tool, Thomson Holiday Group can
easily analyse their current market situation as well as various opportunities which can be
attained by them (Collison and Spears, 2010). Thomson Holiday Group is an airline industry
which provides several holiday packages as well as such as adult, family and luxury holiday. It
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can be easily analysed by the way of going through macro and micro environmental factors such
as:
External analysis of Market
PESTLE Analysis
Political Factors: It is highly essential for Thomson to follow several policies and laws
developed by the government of country. There are several policies associated with the
airline industry and it is highly essential for Thomson to know about the government
policies of their country as well (Li and Petrick, 2008). All such factors like
environmental, taxation tread law, local council etc. These rules and regulations needs to
be followed by company in order to effectively survive in today’s highly competitive
environment. Further, it can be stated that political instability generates negative publicity
as well. On the other hand, terrorism has led serious tourism crisis and also affecting the
financial conditions of the country.
Economic Factors: Due to several economic factors consumer base of company might
leads to decrease (Pesonen, 2013). It can be easily explained by several economic factors
such as interest rate, economic growth, inflation rate, money exchange rate etc. At the
time of inflation pricing of company get increased which slow down the number of
customers of the company. Moreover, due to the increasing interest rate also company
needs to charge high prices from their consumers. In this concern, it can be stated that
economic factor also affects the overall growth rate and demand of company as well
(Floyd and et. al, 2004).
Social factors: Consumers needs and demands are changing day by day and due to this it
is becoming highly difficult for companies to fulfil such altering requirements of their
consumers. It is highly related with the cultural aspects, population growth rates as well
as life style of social people (Blanke, 2007). For the same, Thomson also requires to
make sure about this kind of factors such as languages, religion festivals, demography
factors etc.
Technological factors: Thomson holidays are an international group with having its
reach worldwide. For the same, they ensure to adopt latest technological equipment’s to
better communicate with their customers. It includes overall research and development
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activities of this group. Further, digital technology should be adopted by company as it
provides them high chance to reach out more number of customers and provide them high
quality services. It makes them more productivity and enhances the level of customer
satisfaction as well (Dolnicar, 2007). Use of latest technology in aircrafts would not only
lower fuel consumption but it also
Environmental factors: This factor includes all those actions which Thomson needs to
take into consideration in order to maintain various issues regarding environment. It
covers all the ecological aspects such as weather change, climate change etc. Due to this
factor, Thomson faces several problems. Further, it can be stated that it might leads to
decrease the overall costing of company (Middleton and et. al, 2009). Further, company
strongly supports the species protection, nature protection and landscape protection.
Legal factor: Thomson requires following all the legal framework of country developed
by government such as employment, discrimination law, consumer law, health and safety
law etc. However, all of these regulations are followed by them which positively affect
their business operations (Richardson and Fluker, 2004). Due to this, they are able to
create their positive brand identity in the mind-set of customers.
Porter’s five force mode
This is another most important model which helps Thomson in analysing best and most
suitable information as per the given competitive advantage of the industry.
Threat of new entrants (Moderate): For a new company to launch itself within any new
tourism industry is highly difficult as it requires a huge investment and innovative ideas
to sustain its presence (Underberg-Goode, 2014).
Bargaining power of buyers (High): Within the changing time period, needs and
demands of customers are changing day by day and it is becoming highly difficult for
companies to meet out these demands. Due to the increasing needs and demands buyers
of the selected industry are forced to comply with such changing needs (Hall, Timothy
and Duval, 2012).
Bargaining power of suppliers (Low): Thomson Holiday group is having its own
suppliers and due to this, there bargaining power of suppliers is low.
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Threats of substitutes (High): Due to the increasing growth within the same sector there
is a huge demand of strategic differentiation. Nowadays consumers are looking for new
experiences as well as diversified attractions (Bordoni, 2011). This is the major reason
due to which threat of substitute in this industry is very high.
Competitive rivalry (Medium): Due to the increasing globalization airline and tourism
industries are involving various competitors. All of them are trying to perform better than
others and it is the reason due to which competition level is increasing. However, due to
the high entry cost competitive rivalry is at medium range in this industry.
From both of the above discussion external environment of Thomson holiday group can
be easily identified. Further, it is the best effective way through which management team of
company can easily prepare appropriate marketing plan.
Internal Market analysis
Strengths
1. Strong brand image
2. Exclusive holiday packages
3. Consumer trust
4. World’s largest charter airline with
nearly 00 destinations
5. Offering various services flights and
offerings all around the world
Weaknesses
1. Revenues from tourism is highly
dependent on economy
2. Flexibility of packages leads
dissatisfaction among customers
3. Heavily rely on technology
4. Potential risk to cost of financing
Threats
1. Huge competition within the similar
industry
2. Increasing fuel and operation cost
3. Terrorism threats
4. Climate change
5. Aviation cost flow fund of capital cost
Opportunities
1. Contracts with private corporations for
mutual benefits
2. Business expansion opportunity due to
the increasing competitive advantage
3. Doing investment
From the above table it has been concluded that company is having its strong brand
image in the market due to which they are able to develop customer loyalty among all the
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consumers. Thomson holiday group is offering various flight services and providing several
offers to their consumers as well (O'Connor, 2010). Company always try to build better working
conditions by providing them several rewards and appropriate feedback. It is regarded as their
major strength through which company keeps their workers satisfied and provide quality services
to their consumers. Further, these are some of the most common strengths of company as their
exclusive holiday packages, largest charter airline services etc.
On the other hand, one of the major weaknesses of company is that they highly are highly
dependent on the technology due to its international approach. It may affect the overall business
activities of the organization (Leisen, 2001). Due to the technological dependence in case of
having any type of issue related to the interruption whole business activity might get affected. In
addition to this, total revenue generation of company is highly dependent on the economy. Due
to the increasing competitive advantage company can easily attain high revenues as they are
having an opportunity to expand their business. Moreover, it can be stated that Thomson can
easily expand their business due to the globalized world. However, there are several threats faced
by them such as huge competition within the same industry as well as increasing fuel cost.
Further, the whole discussion entails the internal analysis of company in order to implement
appropriate marketing plan (Devashish, 2011).
B) OBJECTIVES SET FOR THOMSON HOLIDAY GROUP
Thomson Holiday group provides various airline services as well as holiday packages to
all their customers. TUI Travel is their parent company which is categorized as an international
group. The main tagline and slogan of company is “Don’t just travel, travel with a smile”. They
are highly focused with providing quality services to their customers. Company wants to become
one of the leading providers of tourism and holiday packages (Law, Leung and Wong, 2004).
They are one of the best and largest tour operators in the world due to which their main objective
is just to provide high quality services to all their customers.
One of the most common objectives of Thomson group is just to maximize their brand
image so that to attract majority of customers. They want to become one of the world’s largest
holiday airlines. There are several competitors of Thomson such as Easy Jet, British Airways etc.
For the same it is highly essential for company to maintain better image in the company so that
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they can enhance their sales margin as well (Rizzi, 2014). Moreover, some of the most common
ways are to keeping them happy and satisfied is provide them quality products and services.
C) IDENTIFICATION OF SEGMENTATION, KEY TARGET AUDIENCES
AND BRAND POSITIONING FOR THOMSON HOLIDAY GROUP
Thomson Holiday Group serves different tour and holiday packages to all the whole
population of the country. In order to maintain appropriate marketing plan company requires
keeping appropriate marketing mix. For the same, they have decided to segment their market on
the basis of tourism and vacation packages.
Segment Tourism and vacation packages
Target Group Customers looking for customized holidays
Positioning Exclusive and customized packages for every
customer
Segmentation is a strategy through which company can segment their market on the basis
of demography, geography, psychographic and behavioural. Thomson segmented their market on
the basis of psychographic segmentation as customers purchase such products as per their
interest (Concept and Meaning of Tourism Product, 2015). All the buyers require motivation and
for the same it is essential for Thomson to find out the customer behavioural. As per their
different holiday Packages Customers usually selects that which package they requires to buy. In
this concern, it can be stated that company has made their segmentation on the basis of
Psychographic technique.
After going through the segmentation process it is highly essential to pass the next
criteria which is targeting. Thomson basically targets those customers who are looking for
customized holidays. In is the most effective way to keep customers satisfied. Their marketing
plan is totally based on the promotion of customized packages so that to attract more number of
customers (Timothy, 2011). In addition to this, they can also position their exclusive and
customized packages for every customer. Through this, they are able to develop their reach
towards the different customers.
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D) MARKETING MIX (7 PS) INCLUDING DIGITAL COMMUNICATION
FOR THOMSON HOLIDAY GROUP
In order to implement best suitable marketing plan company requires going through
setting their appropriate marketing mix.
Product: As per the nature of organization different firms adopt different strategies just
to provide high quality services to all their customers. However, different organizations
are providing different products to their customers as per the nature of industry. For the
same, various holiday packages are provided to all the consumers by which they can
develop and effectively maintain their sales margin (Concept and Meaning of Tourism
Product, 2015). For their holiday packages, they are offering adult holiday, family
holiday as well as luxury holiday. Under this, Thomson serves their premium collection
to adults and they are able to book these products and services from the online website of
company as well. On the other hand, in their luxury holiday, Thomson provides platinum
holidays to all their customers. Moreover, Thomson provides services of both domestic
and international flight.
Pricing: There are mainly three types of pricing strategies which is used by different
organizations. These strategies are based on competitor pricing as well as product cost
and consumer cost (Blanke, 2007). Thomson usually relies on the consumer and
competitors based pricing strategies. They usually keep their product prices moderate as
per their competitors but they provide them high class services with the same. It boost up
their confidence level that company keeps their quality high. In this regards, it can be
stated that Thomson keep their product pricing strategy as per their competitor’s strategy.
It is the best effective way to enhance high competitive advantage. Thomson understands
that customers are always looking for some discount offers. In case of having high price
volume their sales volume will be low and if the pricing will be low their sales volume
will be high (Collison and Spears, 2010). Further, this is the major strategy followed by
Thomson through which they are able to maintain huge customer base and develop
loyalty among them as well.
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Place: Company is having its existing both physically and online. All those customers
who are not able to reach their physical stores can easily book any type of service from
the online store of company.
Promotion: There are different promotional mixes among which all of them followed by
Thomson. They usually promote their products on the basis of advisement through TV,
Magazine, newspapers etc. There are various strategies such as personal selling, sales
promotion, public relations, direct marketing etc. It is regarded as most important tasks of
any organization as they requires going through effective and suitable promotion
technique (Gooroochurn and Sugiyarto, 2005). It is the best way through which they are
able to reach more number of customers and provide them appropriate information
related to their products and services. With the help of adopting digital communication
techniques they are able to reach out to their intended audience. It is the most effective
and best way nowadays on the basis of which Thomson can easily communicate with all
their customers worldwide and provide them effective and huge base of services. Various
discount offers are also promoted through such digital media channels. Moreover,
company can easily use e-mail services to provide effective information about any new
trend to loyal customers (Leisen, 2001). Further, they can promote their customized
holidays through social media as it helps them in reaching to their intended audiences.
People: Thomson comes under one of the biggest brands of the holiday packages and due
to this they require to provide quality services to all their customers. For the same, their
target customers are adults as well as families. However, this is another most important
element of marketing mix of company as it refers to customers, employees and
management. Company knows that customers play a most important role within their
organization. In order to keep them satisfied by the end of 2012 they have employed
almost 10,000 employees. Further, company always gives training, job rotation, job
enrichment and motivation etc. of their employee.
Process: It is total criteria of providing or transferring a good service to all the customers.
In this, Thomson allows high speed internet for providing quick services to customer
(Pesonen, 2013). With the help of using internet, company is able to attract more number
of customers by keeping them better communication. However, appropriate contact can
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be made among worldwide customers and they are able to maintain positive relationship
as well.
Physical evidence: The whole infrastructure of company depends called their physical
evidence. It is highly essential to have attractive physical evidence so that they can
become more successful in attracting customers (Dolnicar, 2007). It is all about furniture,
lightening, air conditioners etc. Due to having biggest tour operators customers trust
direct related to their physical evidence. Thomson is having its attractive physical
evidence due to its stability in the market.
CONCLUSION
From the above whole study it has been founded that Thomson Holiday’s is having its
positive brand identity in the mid-set of customers. With the help of setting appropriate
marketing mix and marketing plan Thomson is able to target more number of customers. They
mainly target those customers who are looking for customized holidays. For the same, they have
segmented their market on the basis of Tourism and vacation packages. Further, it has been
founded this company can easily enhance their sales margin and overcome with the weaknesses
by the way of developing appropriate marketing plan as per the changing needs of customers.
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REFERENCES
Books and Journals
Blanke, J., 2007. The Travel & Tourism Competitiveness Report 2007: Furthering the Process of
Economic Development. World Economic Forum.
Bordoni, L., 2011. Technologies to support cultural tourism for Latin Latium. Journal of
Hospitality and Tourism Technology. 2(2). pp.96 – 104.
Collison, M. F. and Spears, L. D., 2010. Marketing cultural and heritage tourism: the Marshall
Islands. International Journal of Culture, Tourism and Hospitality Research. 4(2). pp.130
– 142.
Devashish, D., 2011. Tourism Marketing. Pearson Education India.
Dolnicar, S., 2007. Management learning exercise and trainer's note for market segmentation in
tourism. International Journal of Culture, Tourism and Hospitality Research. 1(4).
pp.289 – 295.
Floyd, M. F. and et. al., 2004. The effect of risk perceptions on intentions to travel in the
aftermath of September 11, 2001. Journal of Travel & Tourism Marketing. 15(2-3).
pp.19-38.
Gooroochurn, N. and Sugiyarto, G., 2005. Competitiveness indicators in the travel and tourism
industry. Tourism Economics. 11(1). pp.25-43.
Hall, C. M., Timothy, D. J. and Duval, D. T., 2012. Safety and security in tourism: relationships,
management, and marketing. Routledge.
Law, R., Leung, K. and Wong, R., 2004. The impact of the Internet on travel
agencies. International Journal of Contemporary Hospitality Management. 16(2).
pp.100-107.
Leisen, B., 2001. Image segmentation: the case of a tourism destination. Journal of Services
Marketing. 15(1). pp.49 – 66.
Li, X. R. and Petrick, J. F., 2008. Tourism marketing in an era of paradigm shift. Journal of
Travel Research. 46(3). pp.235-244.
Middleton, V. T. and et. al., 2009. Marketing in travel and tourism. Routledge.
O'Connor, N., 2010. Crisis Management in the Tourism Industry – Beating the Odds.
International Journal of Contemporary Hospitality Management. 22(4). pp.582 – 584.
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Pesonen, J., 2013. Information and communications technology and market segmentation in
tourism: a review. Tourism Review. 68(2). pp.14 – 30.
Richardson, J. I. and Fluker, M., 2004. Understanding and managing tourism. Pearson Education
Australia.
Rizzi, M., 2014. Travel visa impacts on destination choice and perception. Worldwide
Hospitality and Tourism Themes. 6(4). pp.305 – 316.
Timothy, J. D., 2011. Cultural Heritage and Tourism. Channel View Publications.
Underberg-Goode, M. N., 2014. Cultural heritage tourism on Peru's north coast. Worldwide
Hospitality and Tourism Themes. 6(3). pp.200 – 214.
Online
Concept And Meaning Of Tourism Product. 2015. [Online]. Available through:
<http://marketinglord.blogspot.in/2012/10/concept-and-meaning-of-tourism-
product.html>. [Accessed on 8th April 2016].
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