Travel and Tourism Marketing in the Travel and Tourism Sector

This report explores the core concepts of marketing and applies them to the specific destination of London. It analyzes the tourism-marketing environment of London, assesses its impact on travel and tourism businesses, and discusses the factors affecting consumer motivation and demand for London as a tourist destination. The report also examines the principles of market segmentation and how they can be used in destination marketing planning for London. Furthermore, it critically analyzes the importance of strategic marketing planning for London as a tourist destination and discusses the role of marketing research in the planning process. The report also assesses the positive and negative influence of marketing on society. Finally, it identifies the elements of the marketing mix and discusses the issues of designing and developing the product, price, and place elements for a chosen UK tour operator. The report also assesses the integrated nature and role of the promotional mix in regards to the selected operator and plans and justifies an integrated promotional campaign for the chosen UK tour operator.

E 164 Andrei Stefan Anghel Travel and
Tourism Marketing in Travel and
Tourism Sector

Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................4
Discussing the core concepts of marketing and apply to your selected destination of London
(consider the selected destination as the product to be promoted) [P1.1]..................................4
Briefly, analyses the tourism-marketing environment of London and assess its impact on the
travel and tourism businesses and destination itself [P1.2]........................................................4
Discuss the factors affecting consumer motivation and demand for London as a tourist
destination, for both business and leisure travellers [P1.3]........................................................6
Analyzing the principles of market segmentation and discuss how you can use these in
destination marketing planning for London [P1.4]....................................................................6
Task 2.........................................................................................................................................7
Critically analyzing the importance of the strategic marketing planning for London as a
tourist destination and discuss the importance of marketing research in the planning process
(2.1)............................................................................................................................................7
Discussing the relevance of marketing research and market information to travel and tourism
sector managers at London Tourism [2.2]...............................................................................11
Assess the positive and negative influence of marketing on the society (2.3).........................11
Task 3.......................................................................................................................................12
Identify the elements of marketing mix and discuss the issues of designing and developing
the product, price and place elements for your chosen UK tour operator [P3.1].....................12
Using your chosen UK tour operator, asses and discus the importance of service sector mix
element (3.2)............................................................................................................................13
Apply and discuss the concept of the ‘total tourism product’ using your chosen company to
illustrate the various components that are integrated [P3.3]....................................................13
Task 4.......................................................................................................................................14
Assessing the integrated nature and role of the promotional mix in regards to the selected
operator....................................................................................................................................14

Plan and justify an integrated promotional campaign for your selected UK tour operator (4.2)
..................................................................................................................................................15
Conclusion................................................................................................................................15
Reference List..........................................................................................................................16

Introduction
Travel and tourism industry is one of the fastest emerging markets in UK owing to the
changing needs and demands of the target market. The hospitality sectors not only contribute
towards the economic growth of the nation, but also gaining supremacy in the competitive
market due to application of effective marketing strategies and techniques. The chosen
company for the particular assignment is Visit London.
Task 1
Discussing the core concepts of marketing and apply to your selected destination of
London (consider the selected destination as the product to be promoted) [P1.1].
The core marketing concepts are definite, relevant, clear and acceptable for understanding the
process of marketing (Luca, Hibbert and McDonald, 2016). Five core marketing process are
illustrated below:
Needs, Wants and Demands: need is a desire, which every people have. Sometimes visiting
London becomes a desire for person. London attracts sightseeing, events, theater, tours,
restaurants and hotels.
For this desire, people make their ability and try to visit London and when they can fulfil that
ability, it comes under demand.
Marketing offers: For visiting London we can give offers any (one of those) like Sightseeing
pass, Theatre tickets, Restaurant deal, Oyster card, Bus tour, Hotel Deal etc.
Value and Satisfaction: London is a place where if a person goes for visit definitely he/she
will be satisfied. There are good events, attractive places, full of shopping area, entertainment
and lot more to visit. There are so many good London Holiday apartments, which is very
much suitable for family people with kids.
Exchange, Transactions and Relationship: These three are required in our day-to-day life
and as well as it has consider when people visit London also. There are so many extra things
which makes London very special than other countries such as Royal wedding, Chelsea
Flower Show, Museums at Night etc.
Markets: Markets are the thing, which helps to know every offer about London which buyer
is providing the seller and fixing the deal.
Briefly, analyses the tourism-marketing environment of London and assess its impact
on the travel and tourism businesses and destination itself [P1.2].
The marketing environment takes into consideration macro and micro factors, which has a
direct influence on the business operation and choice of destination for London Tourism. The
influence of marketing environment is illustrated below.

Micro Environment
Customers: As per consumer aspirations and wants, the business operation of Visit London
would alter. For example, consumers may prefer short tours more instead of long tours during
the summer season. Customers are the ones who have an impact on the economic
productivity of an organization. Positive word of mouth from the consumers would assist
Visit London in gaining supremacy in the competitive market (Huang, R. and Sarigollu,
2014)
Suppliers: Visit London Suppliers gives accommodation facilities, transportation and
availability of foods in the London tour packages. If the suppliers provide good quality food
and accommodation facilities at a cost-effective rate, it would readily satisfy the consumers in
a successful manner.
Employees: The Company comprises of educated staffs that have the skillsets of addressing
consumer needs, wants and complaints. Effective opportunities for promotion and training
programs enhance employee retention for the organization.
Media: Visit London takes active participation in managing the media, so that they can
maintain a positive image in the eyes of the public. The company stresses heavily on public
relation and advertisements for maintaining their supremacy in the competitive market
Competitors: Visit London should monitor the proceedings of the competitor for sustaining in
the challenging tourism industry. The company should have a USP that separates them from
its competitors.
Macro Environment:
Economic: The financial conditions are subjected to interest rates, bank rates, inflation rates
etc, which automatically decides the fate of tourism companies in the competitive market. For
instance, enhancement of interest rates would automatically reduce the number of tourists
visiting London.
Political: Rise of antisocial and terrorism activities have created an element of doubt in the
mind of the consumers for visiting London. The management must tighten the security and
safety measures for avoiding such occurrence in the mere future.
Social: Acts of redundancy and governmental cuts would potentially reflect upon restricted
income of disposal for the consumers (Balabanis, 2015). The cutting on spending would
ensure the fact that the tourism company would also have to reduce budgets and ensure cost-
effective services to the consumers.

Environmental: Natural calamities and climatic alterations could affect the sustenance of a
tourism company in a negative manner. Earthquakes and floods may have an impact in the
mindset of tourists in visiting London.
Technology: Visit London provides digital and online services to the target market in regards
to online booking, reservation etc. The management also tends to improve the company
website by providing more information to the consumers.
Discuss the factors affecting consumer motivation and demand for London as a tourist
destination, for both business and leisure travellers [P1.3]
It is the responsibility of the tour operators to meet the perceived perceptions of the
consumers, which leads towards consumer motivation. Some of the factors that lead towards
consumer motivation are illustrated below:
Cultural Factors: Consumer behavior includes buyer’s culture, sub culture and social class.
Culture plays major role and it varies country to country, region to region. Seller has to very
careful to understand that (McDonald and Wilson, 2016). Each culture is having different
subculture such as religions, nationalities, racial etc. Every society is having different social
classes and all social classes are not similar income, wealth, education, occupation etc.
Social Factors: This factor includes reference group, family, roles and status. Some times
people get influenced by others and plan for trip like London, this is called reference group.
Their family members like wife, children, etc influence buyer behaviors. In family, each
person serves different role so for visiting London everyone must have same decision.
Personal Factors: Depending on age, occupation, economic situation, lifestyle, personality
consumer behavior gets change. Seller has to balance all these and sell the product.
Psychological Factors: It includes motivation, perception, learning, beliefs and attitudes. For
getting motivated most important is need and when the need becomes motive then it’s most
urgent to lead the consumer to seek satisfaction. Select, organize and interpret information if
we can organize a meaning full way it’s call perception. Consumer is having belief on the
brand image of company, which helps to seller to convince buyer.
Analyzing the principles of market segmentation and discuss how you can use these in
destination marketing planning for London [P1.4]
Market segmentation refers to an activity, which takes active participation in categorizing the
broader market into smaller segments involving consumers of similar traits. The intended
segment of Visit London is consumer market. Different types of market segmentation are
listed below:

Demographic Segmentation: This type of segmentation would take into consideration the
type of family, age category and size into consideration before prioritizing the target market.
Psychographic Segmentation: This section would take into consideration the lifestyle and
priorities of the London consumers (Takata, 2016).
Geographic Segmentation: The geographic segmentation would consider the location of
London and the extent to which it is feasible to the consumers for visiting several tourist
destinations.
Behavioral Segmentation: This section would consider the behavioral styles and decision-
making ability of the consumers.
The marketing process involves several steps such as analysis of situations, setting of
objectives, development of tactics and strategies and controlling. Upon implementation of
segmentation, the management of Visit London could target the customers based their age,
behavioral patterns and lifestyles. Segmentation would allow the management to identify the
perceived aspirations of the consumers and the London tour packages would be planned
accordingly for enhancing consumer experience (Becherer and Helms, 2016). For instance,
the company will plan summer holiday packages, which consists of several museums
historical places etc, avoiding direct exposure from the scorching heat of the sun. Similarly,
the younger tourists will prefer adventure tourism packages such as mountain climbing,
trekking, paragliding etc. The company needs to align their strategies according to the
changing needs and demands of the consumers.

Task 2
Critically analysing the importance of the strategic marketing planning for London as a
tourist destination and discuss the importance of marketing research in the planning
process (2.1)
LO2 Understand the role of marketing as a management tool in travel and tourism
A strategic marketing plan from the perspective of any company is very useful as it helps the
organization t plan and mitigates issues that derive after the analysis once the plan has been
applied. This is a tactic which business person applies in order to extract market information
and analyse the same in order to set proper goals or agendas for the betterment of the
business. Alike these business houses, “Visit London” applies the same as it is most
important for a company which is into travel and tourism industry to collect market data and
analyse the same in order to set business goals and design their products (visitlondon.com,
2018). The plans have to be implemented in such a way so that it stays flexible and frequent
updates can be done because the contemporary market is very dynamic. Thereafter, in order
to survive in the challenging market, the company has to apply strategic marketing plan in a
flexible and adoptive way.
The strategic marketing planning methods can be applied by figuring out the internal data of
the company. Thereafter, a SWOT analysis is very important in order to figure out the
strength, weakness, opportunity and threat of the company.
SWOT analysis of Visit London:
Strength
1. Affordable and accessible
2. One of the largest organization
3. Global presence
4. Diverse workforce
5. Strong brand value
Opportunity
1. Growing industry
2. Expanding globally
3. Technologically advanced
Weakness
1. Limited market share
2. Long-term debts
Threat
1. Uncertainties of Brexit
2. Competition from low-cost service
provider
3. Dynamic government regulations

Product lifecycle
Introduction: In this segment of the analytical tool, the company will introduce the product.
In case of Thomas Cook, the products are subjected to address the needs of a diversified
customer base. In order to address that, the company will introduce short term summer tour
plans and will try to design the product in such a way so that minimum exposure to direct
sunlight can be experienced. The safaris, trekking and paragliding tours will be targeting the
young people for the whole year. On the contrary, winter tours will be comparative longer.
Growth: In order to gain growth, the company will try to nurture the products by keeping it
flexible as per the customer’s need. The advertisement campaigns are to be conducted so that
it attracts sand educates the customers about the products (Borsato, 2014). Once the product
is growing, it gets a strong and wide customer base. In case of Thomas Cook, will do
advertising and promotional campaign so that the customs are informed about the offering the
company makes while looking for a holiday package.
Maturity: In the growth segment, the product has given all the opportunities to prosper and
once that has been done, the product gets customised in order to address the need of the
diversified customer base. In case of Thomas Cook, the customer could be a married couple
looking for a honeymoon package where the need is very much personalised. The company
has to address the need of the customer by changing the product design. Once the product has
got enough growth and company is getting more than what they were expecting out of the
product, it is said to have matured.
Decline: The need and demands of the customer is ever-changing. When the product is doing
well in the market, over the years, the customers get use to the offering and starts searching
for newly customised products. That is when the product starts getting declined by the
customers.

Figure =Product life cycle
(Source = Li et al. 2015)
BCG matrix of Visit London:
The components of BCG matrix are four quadrants denoting a star, question, Cow and dog.
The dog denotes low market share and growth. Question points what is the challenge for the
company while star denotes the cash flow (Torquati et al. 2018). The cow or source of
income denotes the reasons because of which the company gets the growth. The BCG matrix
of Thomas Cook has been described below:
Cash Cow: The source of income of Visit London is economic tour packages. This has the
most market share and attracts the most customers. The company due to the market changes
in UK has adopted this strategy.

Figure: BCG Matrix
(Source: Becherer and Helms, 2016)
STAR: The star service of Visit London is the winter tour packages. In the BCG matrix, the
winter tour packages can be placed as it is the most prospering and potential segment.
Question Marks: The question marks for Visit London are the summer packages introduced
by the organization. The packages have high investment but the returns are not as expected.
The packages have less market share and revenue is lower than any other packages. In order
to mitigate the issue, the company should do the marketing of the package properly.
Dog: The adventure packages of the company can be denoted as the dog of the company as
this department of the company is not getting a high market share and does not demand much
investment as well.
Discussing the relevance of marketing research and market information to travel and
tourism sector managers at London Tourism [2.2]
Marketing Research is the process where customer, consumer and end-user join with
researcher for obtaining information. The relevance of marketing research and market
information of tourism sector are discussed below:
Define the research problem: During the strategy formation time travel and tourism sector
manager needs identify the problem.

Objective setting: After understanding the problem company has to set proper objective, so
problem time they can easily solve it, company should not be blank in front of customers.
Company must have ability to handle all type of bad situation.
Design the research Plan: company has to do research like how to collect feedback or
information from customers and what customers feels about the company.
Collect the research data: This is very much important point for the organization growth. For
collecting information from end-user company can use observation, feedback forms,
questionnaire, face to face interviews and many more. This method has to be used last of the
trip and company has to see that end user should not feel irritated or offended.
Analyse the research data: After collecting data company has to analyse what all need to be
corrected like positivity and negativity about company, and they must evaluate the obtain
information by using marketing tools and techniques.
Report the finding: At the end, company has to prepare a report and send it to top
management for create better strategy for future trip.
Assess the positive and negative influence of marketing on the society (2.3)
There are two ways, positive and negative influence of marketing in society. Those are
discussed below:
Positive ways are as follows:
Product information: For provide information company can use their own website for
advertising, and their they can mention about the decided flight for journey, flight timings,
decided tour month, hotels, visiting spots, number of days and night to stay there and various
facilities and services. For awareness of people they can give ad to the newspaper, television,
radio, posters etc. If everything is there in company’s web-site it can help to save customers
time.
Better standard of living: Company has to use high level of marketing which helps to
influence better stander of living people in society. Company must give better quality service
which will attract people to buy ticket in holidays and get tempt to go for a trip.
Positive environment: Through advertising company can create a positive environment of the
society. Trips helps to remove stress, motivate people, and bring lot of happiness to them. It
makes them fresh and helps them to start something new in life.
Negative ways are as follows:
Misrepresentation: For expecting more profit and attract more people company try to give
more additional benefits to customers but they feel that they are mistreated by the company.

Unrealistic Expectation: People’s expectation always becomes more when they do payment,
as per provided information if they don’t get expected quality then it creates a negative
impact on company.
Task 3
Identify the elements of marketing mix and discuss the issues of designing and
developing the product, price and place elements for your chosen UK tour operator
[P3.1].
Marketing Mix is a set of marketing tool, which has to be used to perform marketing
objective and target. Marketing Mix is includes 4Ps, which are described below:
Product: Actually, product is produced to satisfy needs of customer, product is maintained
with two features. It is intangible or tangible. Intangible is service and Tangible is goods.
Here we will discus about intangible. In London, there are so many sightseeing, day trip,
attractions, and museums at night, which attracts customers (Schulz, Martin and Meyer,
2017).
Price: In marketing mix, price plays a major role. Price is a component which customer pays
for to enjoy it. For enjoying holiday people pay money and goes to London and buy day trip
passes, sightseeing passes, theatre tickets, speedboat tour tickets etc.
Place: Place is actually location which helps to identify where the product is, and is it still
available or sold. According to buyer choice seller has to suggest the suitable place for him.
Here buyer and seller can physically meet and interact with each other and close the deal.
Promotion: Promotion does by the sellers for boost brand recognition and sales. Promotion
is having four various elements like Sales Organization, Public Relation, Advertising and
Sales Promotion. To giving some attractive offers or discounts or facilities sellers tries to
attract customers to go for a trip who all are already planning for a it. Not only those travel
agencies gives television advertisements, radio commercials, print media, and internet
advertisement which is very much helpful to reach customers and they are also gets better
deal.
Using your chosen UK tour operator, asses and discus the importance of service sector
mix element (3.2)
Service marketing mix is also called as extended marketing mix, which varies on company to
company. Companies only communicate to their organizational and brand message to
customers. This mix includes Product, Place, Promotion, Pricing, People, Process and
Physical Evidence. The service sector mix would lay emphasis on optimization of service
delivery with the extended components of the service sector mix.

People: Doing more sales and achieve individual goal is not the companies’ vision or
principle. For growing business seller has to impress customers and seller must create
happiness on customer’s mind. Sellers need to give best quality of service and they must have
best talents to gain customer loyalty and trust (Lancaster and Massingham, 2017).
Process: Process is the way to give best service to the customer and it’s an important aspects
of seller service blueprint. In this competitive world every companies are giving
to their best to the consumer and every companies are always in the race to deliver services
quickly.
Physical Evidence: Seller can sale his service to showing all offers, attraction, boarding
passes many more. It is completely depends on the seller how he will use physical evidence
to convince the buyer.
Apply and discuss the concept of the ‘total tourism product’ using your chosen
company to illustrate the various components that are integrated [P3.3]
Tourism is a single component but in those hotels, airlines, travel agency and trekking agency
are included. It is a group of elements brought together to satisfy the customer’s need.
There are five main components are discussed below:
Attraction: Attraction is an element, which motivates to tourists. It can be landscape,
seascape, beaches, climate etc. in London the view from the shard, tower of London, hop on
hop off bus tour, Madame Tussauds, Coca-cola London eye, Buckingham Palace etc. that
attracts customers (Ferrell and LeClair, 2015).
Accessibility: It is nothing but the transport facilities of London. Such as airports, harbors,
motor ways and rail network which helps to reach destination. For most of tourists, choose
the destination depending on travel accessibility. They depends on safety, convenience,
comfort, speed, time and cost.
Amenities: Customers attracts by seeing amenities also. Such as all types of accommodation,
restaurants, cafes and bars, transport at the destination like rental car or taxis etc. every thing
is highly available in London.
Images: Which reflects the qualities of product, design, style, attraction and it has built an
interest in the customer’s mind. It gives positive effects on buyer’s behavior. The sellers can
show prospectus or catalogue to the customer, which would allow the consumers to get
correct idea about their tour, which will help them to better decision making.
Price: Price of every tourism product is not static, its changes depends on physical distance
of travel, nature of accommodation (deluxe or economy), season of the year (peak time or off

Market Goals
MARKETING MIX
pick time). Accordingly, buyer has to choose their travel timing, destination, or anything
whatever they like (Saad, Hassan and Shya, 2015).
Task 4
Assessing the integrated nature and role of the promotional mix in regards to the
selected operator.
Promotional mix is one of the marketing mix which includes 4 Ps. It includes public
relations, advertisements, sales promotion, and personal selling. Basically Promotion mix
helps to reach company’s goals and objective, and it’s helps to grow business.
Promotion mix is a part of marketing mix, which is described below:
The promotion mix describes, there are different options available in marketing mix to boost
the revenue and grow business for long term basis. Promotion mix is always used for special
intention of marketing. Promotion helps to create awareness in society, raising the demand of
service, segmentation of market and evaluate the product compare to competitors and helps
for steady the sales. This promotion is actually an additional support (Liu, 2018).
In promotional mix we can use various technique, such as advertising, Public Relation, direct
selling etc. For advertising we can use paper ad, television ad, radio ad etc. Public Relation or
Publicity is an information about the product and services carried by a third party in an
indirect way. This includes free publicity as well as paid efforts to stimulate discussion and
interest. Direct Marketing is a channel-agnostic form of advertising that allows business and
nonprofits to communicate directly to the customer, with methods such as mobile messaging,
email, interactive consumer websites, online display ads, catalog distribution, promotional
letters and outdoor advertising. Integrated marketing is “a vendor can easily maintain and
control all segment from London” (Mulder, Groot and Pfeiffer, 2014).
The salesperson has to use his special promotional techniques. For different action there will
be different technique. The major intention must be to facilitate the buyer motivation to
purchase the service. The integrated hand-outs is a vital to lay stress requirements of the
buyer. Promotional mix has to have intention to make something special that buyers must feel
excited to travel.
Plan and justify an integrated promotional campaign for your selected UK tour
operator (4.2)

Channels
Promotion Mix
Advertising Public Relations Personal Sales Sales Promotion
Figure: Promotional Campaign
Source: As created by author
Advertising is a part of marketing, with accessible and potential customers and purchaser.
It is also an audio or visual form of marketing communication that employees an openly
sponsored, non-personal message to promote or sell a product, service or idea. Marketing
planning is a communication which can be in internet, TV, broadcasting etc (Aras et al.
2017).
Public Relationship means create a relationship in society and turned more to reputation and
symbol of the firm. It is the practice of managing the spread of information between an
individual or an organization and the public. It gives exposure to public interest.PR
achievement depends on journalist conference, TV consultation via business speaker, web
based publicity, press etc. Personal sales is an technique which sales representative must have
explicitly contracting the customer. This sales raise depends on person to person (Fan, Lau
and Zhao, 2015).
In industry promotion mix has two schemes. Push scheme and Pull scheme. The push scheme
is to relocate upward direction of sales channels and pull scheme is affecting the buyers.
The Promotional Mix increase customer’s desire which hike the demand for production. Both
the scheme is dependent on each other. This promotional mix is having so more few aspect,
those are described below:
Differentiation: Differentiation means, industry requires to put effort and do something new
which normally competitors will not think. The special plan must be like which can imitates

the strength, limitations importance and opportunities of London (Seraphin, Gowreensunkar
and Ambaye, 2016).
Appealing Marketing: Appealing marketing is a promotion which offers that we can give
some special discount on holiday package similar to our competitor’s price and price should
be measured by the place and similar way we need to continue with some other strategy.
Conclusion
On the contrary, it could be concluded that the tourism industry is growing at an alarming
rate owing to the interest of tourists in visiting several tourist destinations. Visit London is
applying several innovative marketing strategies and techniques for gaining competitive
advantage in the market. The company tends to build the tourism packages according to the
tourist aspirations and necessities.

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