Tourism Management: Case Study Analysis

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This assignment requires a comprehensive analysis of the tourism industry in Dubai. Students must examine its historical development, factors contributing to its rapid growth, key challenges faced by the sector, and potential future trends. The analysis should draw upon relevant literature, including case studies and empirical data, to provide a well-supported and insightful evaluation of Dubai's position as a global tourism destination.
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MARKETING IN TRAVEL AND
TOURISM
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The core concepts of marketing for the travel and tourism market.......................................1
1.2 The impact of marketing environment on travel and tourism businesses.............................2
1.3 The factors affecting consumer motivation and demand in the travel and tourism market...3
1.4 The principles of market segmentation and its uses in the market planning.........................4
TASK 2............................................................................................................................................5
2.1 Significance of strategic marketing planning for Thomas Cook...........................................5
2.2 The relevance of marketing research and marketing information to manager......................5
2.3 Influence of marketing on society.........................................................................................6
TASK 3............................................................................................................................................7
3.1 issues in the product, price and place elements of the marketing mix..................................7
3.2 The importance of service sector mix elements to the travel sector......................................8
3.3 The concept of the total tourism product...............................................................................8
TASK 4............................................................................................................................................9
4.1 Promotional mix....................................................................................................................9
4.2 Integrated promotional campaign for Thomas cook............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Travel and tourism has been among the fastest growing industry in the world with the
significant market share and the number of employees. Its domain is increasing in the
considerable manner with the evolution in various dimensions. Traveling of people is confined to
the visiting of holy places and at sacred monuments in the casual manner in unstructured way but
these days it has become the planned and systematic way of moving to other places for various
reasons such as for educational purposes, recreational activities, business and trade reasons,
health and fitness issues and many other such as research and development. With the expansion
of reasons and purposes that is the demand structure; supply trends have also changed that is the
organizers. Hence, for the purpose, marketing strategies are adopted by organizations and
operators working in the area to connect producers to the customers. The report is prepared to
elucidate the different components of marketing adopted by the selected organization Thomas
cook adopted to promote the package for Egypt and Morocco.
TASK 1
1.1 The core concepts of marketing for the travel and tourism market
Marketing is a global concept prevailing since many decades. The concept can be
defined as the operations and dealings to provide right products to right customers in the precise
time. It mainly functions as promotional and selling tool for the products and services of a
particular business entity (Blanke, 2007).
The concept is all about understanding needs, demands and desires of the existing and
fresh patrons. In the travel and tourism sector, this branch focuses on queries such as which type
of packages and tours the company should plan for meeting the requirements of individual , how
to attract the customers through offers and discounts, at what price and other miscellaneous
improvisations they can do in the packages (Christensen, 2010). Thomas Cook, a British global
travel company is taken into consideration to understand the concept of marketing in the travel
and tourism sector. The company is launching its summer 2016 holidays to Morocco and Egypt,
highlighting its agenda to bring financially secured packages.'
Following are the main concept that involves within travel and tourism sector are as
follows-
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Identifying the needs of target market- Here, it can be stated that business is required
to identify the requirement of target market and then provide them required products and
services so that their needs can be satisfied. For instance, people plan to visit at different
destination in regard to relax and feel themselves comfortable. Therefore, travel
organization should determine the needs of target consumers and thus fulfill their
appropriate needs such as food, accommodation and finance.
Maintaining relationship- Further, it is crucial for Thomas Cook to maintain effective
relationship with customers and provide them required products and services to achieve
goals. For instance, at the time when customer is traveling beyond the boundaries of
domestic market then at that time providing them currency at exchange rate etc. helps
them to achieve better results.
Needs and Wants of customers: With the changing dimensions in the travel and
tourism sector, needs and requirements of the customers are changing with the very fast
pace. It is imperative for the organization to keep in consideration the changing demands
and wants. In that regard Thomas cook conducts surveys and research to seek customer's
opinions and views.
Marketing: The concept of marketing has been evolved by going through different
stages and development. Thomas cooks in order to reach the maximum number of
people adopt different ways and methods of marketing. Along with conventional ways it
uses modern approaches such as digital marketing, social media marketing and other to
connect with people.
Products(Goods and services): It accounts the central part of marketing processed by
the employees of the organization. The process of marketing revolves around the
offerings of the organization provided to the customers. With the aim to maximize the
working and operations, varied range of products are offered by Thomas cook with
different options and budgets. Such as in accommodation people are offered places at
hotels, villas, cottages, in food services different cuisines are provided and along with
that customers are entertained with many leisure activities.
But in today's scenario, the company made various improvisations. More easy going
proceeding and easily accessible trips are planned by the team. They have made collaborations
with the aviation industries to offer financially secure flights. Measures are taken to provide Visa
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facility along with foreign exchange to the visitors (Devashish, 2011). Another sector which has
become the integral part of Thomas Cook is the insurance products and services, if in case of any
loss of property or life. Whereas, special offers for the trip to Morocco and Egypt is accompanied
with the seven star facilities of hotels and restaurants.
1.2 The impact of marketing environment on travel and tourism businesses
The marketing environment of Thomas Cook can be studied in two parts which are as follows:
Macro environment: It is related to external forces affecting the business environment
of Thomas Cook, PEST Analysis can be carried out for analyzing the environment.
Political Factors: The government regulations and laws are included in this sector. The
favorable proposals of government taxation policies and decision-making reflect
increases the number of tourists in the country (Kazi, 2014). Economic Factors: The exchange rates are favorable for UK residents for traveling
abroad due to strong position of currency against other foreign currencies. Thus, it helps
in promoting domestic tourism for the company. Social Factors: Nowadays, there are number of nuclear families interested to pay a good
amount of money for travel and tourism (Leisen, 2001). The growing trend of social
media networking for tourist websites surfing also gives a positive signal.
Technological Factors: Rapid marketing information systems and digitization is helping
the company in exploring more opportunities.
Micro environment: To operate effectively, various micro- environment factors act as
the internal factors which are as follows: The Company: The various marketing management departments work for the travel
group to develop offers and packages in order to attract more and more tourists Company's Suppliers: The optimistic approach of the suppliers helps in promoting
products in the market (O'Connor, 2010). Clients: The travel and tourism is a consumer-oriented industry. Exploring exotic places
and adventures spots are attractive areas to attract travelers. Competitors: Here, the company focuses on identifying, monitoring and framing
strategies for better rate of return in comparison with its competitors (Morrison, Carlsen
and Weber, 2010). The growing competitive surroundings require more promotional and
advertising tools and techniques.
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Public: Public relations of the company are favorable when its features of goodwill are
entrusted by the public (Oxford., 2008). The greater the goodwill of the company the
greater will be the attraction of tourists ultimately resulting in more profits.
1.3 The factors affecting consumer motivation and demand in the travel and tourism market
It is crucial for Thomas Cook to understand its potential buyer’s behavior and motivate them
to use their services. The following factors affect the mindset of the consumers: Cultural factors: Company deeply studies the buyer’s cultures and social class to plan
the packages accordingly. It is reflected from the study that, higher the income levels,
higher are the purchasing power of the clients (Swarbrooke, 2004). Therefore, according
to the buyers, plans are built from elite class to economical class. This type of strategy
makes easy for the visitors to opt for its packages. Social factors: This involves the demands of clients of Thomas Cook by taking in
consideration their social values and attributes. Some of the visitors prefer to travel for
performing certain rituals, some to visit archaeological domain while there are some
interested in heritage culture and beauty of the tourist spot (Taylor, 2011). Thus, these
factors are highlighted at the time of making offers and packages. The social factors are
equal weight age while framing the packages for a particular group or individual. Personal factors: Personal variable helps to judge the specific wants and preferences of
clients of Thomas Cook. For instance, on the basis of age there are different tours held for
kids, teenagers, adults and the senior citizens group (Acton, 2012). The youth are being
targeted by the company through various promotional and advertisements campaigns.
The company also distinguishes its service products on occupation or profession basis.
The business class visitors are given facilities like airport loungers and conference halls
to conduct their meetings. As each and every aspect of personal factors are clearly
identified, analyzed and monitored by Thomas Cook more tourists are attracted towards
its services (Albaladejo-Pina and Díaz-Delfa, 2009).
Psychological factors: The management meets up psychological needs of its buyers by
executing the offers accordingly. The educational institutions are interested in organizing
vocational tours and programs for their students and learners every year. In order to
introduce the world about heritage, palaces, castles, historical monuments and museums
the travel company is embarking into well planned (Anheiser, 2011). Tours focusing the
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art and culture lovers. Through these instances it can be evaluated that consideration of
psychological needs of the tourists supports the company to raise its profits.
1.4 The principles of market segmentation and its uses in the market planning
There are bifurcations or segments in the marketing structure of Thomas Cook depending
upon the needs, demand and characteristics with the objective to design a marketing mix for the
targeted segment (Cazcarro, Hoekstra and Chóliz, 2014). Now, examining the types of
segmentation which are made by the mentioned travel company:
1. Psycho graphic segmentation: The tourist’s attitude, values and interests classify them
into different homogeneous segments. Like for example, some the clients of Thomas
Cook having artistic interest and historical background prefer to visit historical
museums, palaces and monuments renowned for their art and culture of Egypt and
Morocco (Figini and Vici, 2010). While, youngsters prefer to explore exotic and
adventurous places.
2. Geographical segmentation: The Company has prepared its plan formation according to
the geographic dimensions too. It offers international packages like Asia Packages,
Dubai Shopping Festival 2016, and summer holidays in Morocco and Egypt, Europe
packages and many more.
3. Demographic segmentation: It involves the variables such as age, family status,
education and occupation. These are the factors taken in consideration while planning for
the summer holiday 2016 in Egypt and Morocco (Motohashi, 2015). Illustration: The
kids and teenagers prefer to visit amusement park so the tour operators plan to take
Dream Land, Aqua Park , Koki Park and Sindbad as best options.
4. Behavioral Segmentation: This concept is based on the simple principle of loyalty of the
visitors for a specific place. It’s somehow similar to the concept of psycho graphic
segmentation (Middleton and et.al., 2009). The preferences and choices of the tourists
are welcomed and therefore the plans and packages framed.
The tour operators take care of the concept of the tourist typologies because of the broad
range of tourist personality types. The planning operations depends upon variables like short and
long term holidays, road trips or the air travel, preferences to less crowded areas. As holidays is a
chance to escape from the daily setups and enjoy new experiences and spend quality time with
the family and friends (Albaladejo-Pina and Díaz-Delfa, 2009). The Thomas Cook provides a
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sense of luxury, cruise deals, beach breaks, connects the family and values them; meet up with
new people and thrills.
TASK 2
2.1 Significance of strategic marketing planning for Thomas Cook
Strategic marketing can be termed as the combination of different strategies in order to
carry out effective marketing plan. It helps business to develop market research and thus focus
upon the right product mix so that set objectives can be attained. Here, working as a Assistant
Marketing Manager within Thomas Cook needs to plan summer 2016 holidays to Morocco and
Tunisia. It can be evaluated that strategic marketing planning is one of the crucial aspects that
helps each and every enterprise in order to lead the business towards attaining success. However,
in regard to this it can also be said that it renders capabilities to generate tourism activities as
these help Thomas Cook in maintaining long term sustainability and creating its brand image in
the market (Blanke and Chiesa, 2013). With the help of proper strategic marketing planning
organization will be able to attract more and more customers as well as visitors towards the
destination i.e. Egypt. By considering this planning several internal factors can be analyzed in
effective manner in order to resolve the availability of various obstacles and issues (Cuccia and
Rizzo, 2011). Further, here Thomas Cook is required to adopt effective strategic marketing
planning in order to attract large number of visitors to spent their holidays at Egypt. Therefore, it
is essential for the marketing manager of Thomas Cook to plan effective strategy in order to
develop their strengths and opportunities and thus overcome threats and weaknesses.
On the same side, it helps organization in understanding its strengths as well as
weaknesses so that they can convert their strengths into core competencies and they can also
resolve their weaknesses in order to get success in competitive market. By considering SWOT
analysis, it can be evaluated that Thomas Cook is one of the most popular and well established
tour operator that provides different types of tour and travel services to its customers (Dodds and
Kelman, 2008). Also, business is required to develop Egypt as a effective tourist destination that
large number of travelers could be attracted to visit the destination. Further, company should
provide best deals in relation to food, accommodation and finance so that satisfaction can be
attained among consumers. Further, it has strong brand image in both the national and
international market as it helps company to get competitive advantage. In order to maintain
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proper development in terms of tourism activities within Egypt, organization can adopt the
method of online booking system as in the modern era mobile application are mostly used by
customers to book their travel arrangements. Thus, it helps firm to enhance their market share
and provide better satisfaction to customers as well as visitors (Fons, Fierro and Patiño, 2011).
2.2 The relevance of marketing research and marketing information to manager
Here, proper market research need to be carried out by the Thomas Cook managers so
that best information regarding the destination could be provided to consumers. Thus, it
facilitates Thomas Cook management to take effective action and provide best products and
services to consumers in regard to attain satisfaction. Also, manger uses such information in
regard to determine the market trends and thus plan effectual strategies so that customer base can
be enhanced for visiting Egypt. Furthermore, it can be stated that marketing research is the best
way through which varied information and knowledge can be gained regarding the market
conditions, target customer etc. that enables managers to take effective actions and plan
strategies in order to build long term plans (Gago, Labandeira, Picos and Rodríguez, 2009).
Managers of Thomas Cook is required to determine the needs of target market and thus provide
vest information to them through conducting proper market research so that crucial information
can be gathered effectively and efficiently. With the help of market research consumer needs and
preferences can be analyzed and thus identify the market trends so that effective strategies can be
implemented effectively (Munt, 2008). It can be evaluated that market research is the best tool
that helps in determining the facts and figures so that crucial information can be delivered to
manager. Further, such information can be used by management in order to provide best services
and products to individual and thus satisfy their needs.
Management of Thomas Cook is required to collect crucial data in order to boost the
sales of firm and develop opportunities for Egypt tourism. There are varied number of primary
and secondary sources of information used in order to carry out information and thus help firm to
gain best results in the form of customer satisfaction (Ritchie, 2006). Also, the managers of
Thomas Cook can easily determine the market trends and thus requirements of clients so that
Egypt tourism opportunities can be improved at a significant level. However, through evaluating
the market information managers of firm can determine varied international travelers who are
willing to visit the destination and thus company should provide them best services in order to
enhance its brand image in market. Here, management team of Thomas Cook need to develop
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proper market research so that attractive tour packages can be provided to international visitors
and thus sales and profitability of firm can be enhanced. Marketing team of organization
provides information to travelers in regard to attract them and fulfill their needs. It also helps in
improving the brand image of firm in market and thus enhance the market share in terms of more
number of satisfied customers.
2.3 Influence of marketing on society
Marketing is one of the most crucial aspects for the business organizations as it helps them
in attracting huge base of customers and enhancing their brand image as well. With the help of
this tour operators and government can attract the visitors and it is having different impact on
society.
Economic impact: With the help of appropriate marketing and promotion government of
country can grab the attention of visitors. It helps them in balancing the trade and payment of
country. Economic reforms and the population has improved he overall economic condition of
country. It has been assessed that the economic condition of Egypt has been enhanced since 2003
which leads to increase in number of tourists in the country. Thus, such economic growth
influences effective marketing activities of Thomas Cook as it assists them to develop effective
connection with individual and influence them to visit Egypt.
Cultural impact: Commercialization of culture leads to the loss of its faithfulness. Due to
this, perception and opinion of people are changing and it highly influences the marketing
process on society (Fons, Fierro and y Patiño, 2011). Moreover, it is essential for Thomas Cook
to protect the culture of the countery and does not impact it othwerwise it will loose its
uniqueness. Therefore, Thomas Cook need to train its employees to protect the culture of the
country and thus attract mroe number of tourists to visit the place.
Socio-cultural benefits: With the help of appropriate marketing tour operators can easily
increase the awareness of country. It promotes the domes tourism and also helps in enhancing the
tendency of social people of conservation. Thomas Cook is required to inform travellers
regarding the unique and historic scultures and monuments of Egypt in regard to promote the
country and enhance international tourists. Thus, it assists in enhancing the sales and profitability
of firm in marketplace.
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TASK 3
3.1 issues in the product, price and place elements of the marketing mix
Thomas cook is operating in the large number of countries providing the wide range of
products and services to satiate the needs and wants of different choices and preferences.
Marketing is the essential tool adopted by the organization Thomas cooks to promote its
packages and services on different grounds (Weaver, 2006). Considering different factors such as
product, price, promotion and place, marketing mix is prepared by the organization Thomas
cook. Product: With the evolution of travel and tourism sector, choices and preferences of
customers is also increasing. Considering the fact, Thomas cook provide the wide range
of products such as in the tours and trips organized for the Egypt and morocco different
packages are prepared like to explore the colossal monuments, spectacular beaches and
many other to fulfill the needs accordingly (Thomascook., 2014). Price: Along with the distinguished range of products packages are offered at different
prices conditioning the varied requirement of budget. In these budgets the services are
offered according to the prices of packages. Promotion: To reach the large number of customers in the different parts of world,
Thomas cook adopt different methods of promotion. Using different forms of methods
captures the interest of large number of people (Ashley and et.al., 2007).
Place: Promotion is done according to the destination chosen by the organization for the
package. Different places and destinations has different target customers such as for the
places having great asset of architecture and monuments seeks the interest of researchers,
students and persons having interest in exploring varied culture (Tourism today. 2014).
Similarly, a place having spectacular views of beaches and greenery captures the interest
of the persons indifferent of any segment.
All these components decide the marketing process adopting by the organization Thomas
cook. Inculcating different components price, place, promotion and place, marketing mixes are
prepared. This makes the marketing process effective and captures larger number of people
(Leisen, 2001).
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3.2 The importance of service sector mix elements to the travel sector
Organization engaged in the process of giving wide range of services and products
demands the management to be cognizant if all the factors that affect the process and methods
adopted by it. It is very essential to address all the components of services such as quality of
services, marketing methods, partnerships and many others. Quality of services: Organization always caters to improve the quality of services on
various dimensions such as the interacting with customers, advising them the providing
them information, helping out customers in case of need and in other dimensions
(Cazcarro, Hoekstra and Chóliz, 2014). Marketing methods: One of the crucial elements of the service mix is the process
adopted by the organization for the marketing of packages provided by it. Thomas cook
adopt different ways of marketing such as direct campaigning through telephonic
conversation, digital marketing with the help of virtual platform that is on websites and
social media network, viral marketing that is viraling information about the services and
packages through mobiles, word to mouth marketing that refers to the promotion of
services by the past customers who have already availed the services provided by them
(Figini and Vici, 2010). Partnerships: With the increase in relational constructs with the suppliers and other
trading partners, the services provided in improved on different grounds. Packaging: Thomas cook always caters to provide the optimum level of services by
making available all the service components at single place so that journey of travelers at
every stratum is executed with ease (Middleton and et.al., 2009). Accordingly, the
packages are made by considering all the needs and requirement of the customers and
also complying it with the budget.
Place: In the travel and tourism industry, special focus is laid to select the place and
services are extended accordingly. Keeping that in consideration, Thomas cook has
selected the place Morocco to enlarge the customer base and widen its operations.
People: In order to provide the optimum level of services to their customers, high degree
of efficiency is given importance. Thomas cook is the recognized organization who
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extended the personalized and thoughtful services by giving their employees training and
development sessions to bring adaptability with the new technology and methods.
Pricing: To cover the large number of customers under the services provided by the
organization, wide range of packages are offered by the company which includes the
economical packages along with them for the elite groups. These packages differs on the
grounds of services and products offered in them.
3.3 The concept of the total tourism product
Since the evolution of travel and tourism sector from the informal tours and trip[s to the
planned and structured trips, the domain of working of the organizations working in the sector
has changed a lot. They are working with the inculcation of several components in their services.
Thomas cook has established the prominent position in the market by adopting the concept of
total tourism in its services (Kazi, 2014). Total tourism concept refers to the method of including
all the ancillary services along with the core areas. Core areas include the accommodation and
food service operations. Along with this the tour operators has started engaging the ancillary
services such as the financial services like insurances, ticket booking and others (Albaladejo-
Pina and Díaz-Delfa, 2009). Thomas cook has adopted this concept and has included all the
services in its packages such as different accommodation facilities like hotels, cottages, villas,
apartments and guest accommodation, food services including different cuisines of the world,
financial services such as insurances, entertainment facilities like games, tripping and many other
adventurous trips.
TASK 4
4.1 Promotional mix
Thomas Cook is one of the best known tour operators and groups. They will be launching
its summer 2016 holidays promotional campaign to Morocco and Egypt. One of the major aims
behind this promotional campaign is just to enhance the visitor’s interest towards these countries.
It helps the government of both of these countries to their tourist expansion. In this concern, it
can be determine that there is a huge importance and role of promotional mix in travel and
tourism (Tourism today. 2014). The integrated nature of promotional mix highly refers to the
function of better communication. It is the best way to target more number of people towards the
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various tourist destinations. By this promotional campaign, Thomas Cook can easily inform the
target customers about the nature, benefits as well as prices of product. In this regard, majority of
people are able to know more about the visitor’s attractions of Egypt and Morocco
(Thomascook., 2014).
The integrated nature of promotional campaign and promotional mix is just to educate the
consumers about the travelling services as well as visiting attractions. Through this, they can
influence them to go and travel such places and spend their holidays. Thomas Cook has launched
holiday promotional campaign in which they give all the details about the benefits if visitors
spend their holidays in Morocco and Egypt (Fons, Fierro and y Patiño, 2011). With this,
company can set the base of their customers and motivate them to travel around these countries.
All the beneficial points regarding the tourism of these countries have been promoted here.
Further it can be determines that the main role of promotional mix is to give information to
customers, to increase demand and differentiate the services of particular destination as well as
its visitors attractions (Cuccia and Rizzo, 2011). Nonetheless, better and appropriate promotion
mix campaign will create a distinct uniqueness of Thomas Cook which will allow them to
provide better services.
4.2 Integrated promotional campaign for Thomas cook
Thomas Cook summer 2016 holidays campaign gives all the information related to the
visiting placed where an individual or families can spend their summer holidays. The integrated
promotional campaign can be planned out by following several steps such as:
Step 1
At the time of launching its campaign Thomas Cook should have better understanding
about their target market. It is the most effective requirement through which company can easily
provide essential information to their target audience (Dodds and Kelman, 2008).
Step 2
On the very next step, at the time of planning integrated promotional plan Thomas Cook
need to use appropriate advertising channels which connect them with their customers in right
way. These channels must have its wider reach as per the target customers.
Step 3
At the time of developing integrated plan it is essential to maintain consistent look so that
consumer’s take interest on such promotions. However, most of the time people do not show
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interest towards such campaign (Gago, Labandeira, Picos and Rodríguez, 2009). Further, by
maintaining consistent look of promotional campaign Thomas Cook can establish an emotional
connection with the customers.
Step 4
One of the most essential tasks for promotion is to develop appropriate content so that
consumers can easily understand this (Ashley and et.al., 2007). Total message given to customer
should be clear and concise.
Step 5
While setting the format of content and selecting the content it is necessary to make sure
that the message is to be highly integrated and effective.
Step 6
The last option which is the most important point for promotional campaign is related to
the team work. It is essential to make proper team who works for the betterment of promotional
campaign as well (Weaver, 2006).
Further, the above given stages clearly demonstrate that promotional campaign of
Thomas Cook has proven to be most successful for the government of Morocco and Egypt as
they are able to attract more number of visitors.
CONCLUSION
Report is prepared to elucidate the operations of the selected organization Thomas Cook.
Thomas cook is having its operations at different destinations around the world. They make the
tours and trips memorable for the travelers and patrons seeking services from the organization. In
this report different methods of marketing has been discussed in which it is stated that Thomas
cook inculcates several components and prepares the marketing plan accordingly. Considering
all the factors, marketing strategy is prepared. From the prepared report it can be inferred that
organization has been successful in capturing the interest of large number of people from around
the people.
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