Marketing in Hospitality: Strategies for Thomas Cook Travel (Report)

This report provides a comprehensive analysis of marketing strategies within the hospitality industry, using Thomas Cook Travel as a central case study. It begins by discussing fundamental marketing concepts relevant to the service industry, including production, product, selling, marketing, and societal marketing concepts. The report then examines the impact of the marketing environment, both micro and macro (PEST analysis), on the industry and the relevance of consumer markets, including the application of the 'Black Box' model to understand consumer behavior. It explores the rationale for developing different market segments, such as demographic, geographic, behavioral, and psychographic segmentation. The core of the report focuses on the application of the marketing mix (product, price, place, and promotion) to Thomas Cook, along with detailed discussions on pricing strategies and policies. The role of the promotional mix is analyzed, with specific attention to public relations, sponsorship, personal selling, advertising, direct marketing, and sales promotion. The importance of market research to service industry operations is also highlighted. The report concludes with a plan for an advertising campaign for the service industry and explores market research, media suitability, and implementation of marketing plans for appropriate products and services.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Discussing concept of marketing for relevant service industry........................................1
1.2 Impact of marketing environment on industry.................................................................2
1.3 Relevance of consumer market in the industry................................................................3
1.4 Rationale for developing different market segment.........................................................3
TASK 2............................................................................................................................................4
2.1 Importance of components of marketing mix..................................................................4
2.2 Pricing strategies and policies in relation to industry.......................................................4
TASK 3............................................................................................................................................5
3.1 Role of promotional mix..................................................................................................5
3.3 Role of sales promotion and public relations...................................................................6
4.1 Relevance of market research to service industry operations..........................................6
PART 2............................................................................................................................................7
TASK 4............................................................................................................................................7
3.2 Plan an advertising campaign for service industry operations (Flyer).............................7
4.2 Market research for appropriate product and service.......................................................7
4.3 Suitability of different media for marketing of product or service..................................8
4.4 Implementation of marketing plan for appropriate products and services.....................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In hospitality industry, marketing takes place to increase the systematic work
performance. In this regard, different tools and techniques have been used that are carried out to
focus on maintaining a creative work performance (Liu and Pennington-Gray, 2015). For
instance: social media, personal selling, public relations, etc. In order to focus on the present
report, it is based on Thomas Cook Travel which deals in travel group in all over the world. In
order to gain insight information of the report, it covers different concepts of marketing for
relevant service industry. Furthermore, it applies marketing mix for chosen industry. Moreover,
it analyses the role of sales promotion regarding public relations which play promotional efforts.
TASK 1
1.1 Discussing concept of marketing for relevant service industry
To develop effective results, there are different concepts of marketing determines in
relevant services. They are as follows:
 Production concept: It is one of the oldest concepts which ascertain that consumers
generally prefer products that are widely available in market and inexpensive. For
example: train or bus ticket sold by Thomas Cook.
 Product concept: This concept hold that consumer favour those products that offers with
more quality and innovative services. Hence, manager focuses on making superior
products to improve it (Zervas, Proserpio and Byers, 2017). For instance: Marriott is
using discount on different packages.
 Selling concept: It is one of the important elements in which businesses consider their
products which they want to sell not that which demand by marketing.
 Marketing concept: As per this concept, businesses make challenge to each other to
accomplish their goals and objectives. They consider being effective plan to create,
deliver and communicate customer value to selected target market (Bruns-Smith, Chong
Ph D and Verma Ph D, 2015).
 Societal marketing concept: This concept hold with organisational tasks which
determine needs, demand and interest to deliver desired level satisfaction. For example:
Thomas Cook Group considers services as per customer’s demands and needs.
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1.2 Impact of marketing environment on industry
In the market, macro and micro both level consider factors that create impact on
hospitality industry. They are as follows:
Micro environment factors Suppliers: Suppliers of chosen business have power to control success. This is because;
they provide raw material to make finished goods to industry (Loveland, Thompson and
Gibson, 2016). Resellers: When product produce in the business, seller take it to sell in market.
Therefore, they are considered as intermediaries so that marketing success impacted. Competition: When two or more than two businesses sold the same products and services
in business, competition get high so that it impact on chosen enterprise.
 Customers: B2B and B2C consider different kinds of customers which play large role to
consider impact on business.
Macro environment factors (PEST)
Basis Positive Negative
Political Political stability creates a
positive impact on Thomas
Cook.
On the other hand, there are
several rules and regulations
has been considered by
government which create
negative impact in chosen
business (Solnet, Kralj and
Baum, 2015).
Economic In the UK, high demand of
tourism element creates a
positive impact.
Inflation, taxes, etc. rise cost of
company and reduce their
profits.
Social Consumer preference
important consideration in
airline and hotel brands
(Naderian and Baharun, 2015).
Changes in economic trends,
social trends create negative
impact on Thomas Cook.
Technological Advance technology of the Changes in technological
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country impact positively. perspective require more cost
investment which reduce
effectiveness of business
(Healy and Wilson, 2015).
1.3 Relevance of consumer market in the industry
In respect to determines consumer behaviour, Black Box is relevant tool that assists to
maintain effectiveness in systematic manner within Thomas Cook Group. It is common way for
marketers to think about consumer behaviour and set activities to solve issues and problems.
Problem solving is process in which following elements includes: Consumer characteristics: In respect to determine consumer characteristics there are
several elements included such as belief, attitude, values, knowledge, motives, lifestyle,
perceptions, etc. On the basis of these elements Thomas Cook group need to ascertain
their functions and operations. Main advantages to implement it is that customers needs
and requirements would be assess (Leung, Bai and Stahura, 2015). However, negative
impact occur when business not consider their demand and requirement.
 Decision making process: Furthermore, in decision-making process, there are certain
elements included that helps to determine creative results to operate functions and
operations. Therefore, it includes problem solving, information search, alternative
evaluation, purchase, post purchase and evaluation (Jones, Hillier and Comfort, 2016).
1.4 Rationale for developing different market segment
In respect to develop different market segments, following elements included to focus on
rationale aspects: Demographic: Demographic segmentation extremely important to different department
of marketing where all age group of people easily buy products and services on the basis
of age, gender, income, ethnic, background, etc. Geographic: Geographic segmentation is important for Thomas cook group. Therefore,
they break whole team in different sections such as climate, density, market size, etc.
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 Behavioural: This type of market segmentation consider divide whole population in
small activities on the basis of usage and decision-making pattern. It is based on
behaviour of each individual (Radojevic, Stanisic and Stanic, 2015).
 Psycho graphic: Psychographic segmentation is one of the important perspective in
which several elements included such as lifestyle of people, their activities, interest,
opinion, etc.
TASK 2
2.1 Importance of components of marketing mix
In respect to determines systematic work performances, it can be stated that Thomas
Cook group need to develop marketing mix which assists to develop significant advantages.
Components of marketing mix Application to Thomas Cook Group
Product Thomas cook consider different kinds of
tourism activities. In this way, they launched
series of coupons which exchanged for meals
and accommodation.
Price Thomas Cook Group consider reasonable price
on competitive pricing. They provide luxury
products and services at exclusive pricing.
Place Thomas Cook group consider their functions in
different areas of the world with physical and
online bookings.
Promotion In order to promote services, Thomas Cook
consider different tools such as advertising,
online promotion, adventure holidays,
magazine promotion, etc.
2.2 Pricing strategies and policies in relation to industry
In order to develop effective results in market, there are different pricing strategies and
policies implemented in relation to travel and tourism industry. With this regard, Thomas Cook
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develop their operations with single pricing across the world with high street and online
channels. It is the largest UK travel retailer that offer same price for holidays packages bookings.
It applies to increase customer attraction and satisfaction. Along with this, they also adopted
premium pricing to capture greater market share in tourism industry (Perera and Perera, 2018).
TASK 3
3.1 Role of promotional mix
In respect to determine promotional mix, it can be stated that it play major role in the
success of business. Therefore, following elements consider in it: Public relations: Manager of Thomas Cook group has duty to provide and control
different types of services with maintaining public relationship. In respect to deal with
services, it assists to create good favour with public due to certain reasons. Sponsorship: The chosen organisation consider sponsorship with certain celebrity so that
effectiveness will be increasing that assists to perform functions and operations. In this
way, customers could be attracted with brand development (Šerić, Gil-Saura and Ruiz-
Molina, 2014). Personal selling: Personal selling in hotel industry depends on presentation of tangible
products and intangible services. It is the main advantage to attract maximum people in
the industry. It also builds face to face relationship with customers. Advantages of this
system is that two way communication assists to increase selling and profits. Advertising: Thomas Cook group also develop advertising which assists to attract people
and attain competitive advantages as well. With the help of newspaper, magazines, online
marketing, etc. (Kandampully, Zhang and Bilgihan, 2015). Direct marketing: Direct marketing consider with print media which assists to sold
unique opportunities to make presence of physical aspects in real way. With the help of
innovative products and services, it develops and attain creative work performances. It is
also known as traditional system that used by chosen business in starting time of
business. For instance, flyers, booklets, brochure, etc.
 Sales promotion: Sales promotion consider advertising of same property which develop
in several ways. In this regard, different ways exist in front way of Thomas Cook to
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increase customer satisfaction. For instance, travel agents, membership rewards, etc.
(Walker and Walker, 2016).
3.3 Role of sales promotion and public relations
Sales promotion and public relations consider important role in success of hospitality
industry. In this regard, following steps included in it: Discounts: It is one of the important method of sales promotion. In this regard, Thomas
Cook group need to provide discount on holiday packages when customer booking it. Gifting: Another way to make sales promotion is provided gifts on bookings. Therefore,
it increases customer attraction and satisfaction as well. Coupons: Coupons are also important way to attract maximum number of people at
workplace. In this way, it is important to make systematic work performances with
providing coupons at workplace (Zervas, Proserpio and Byers, 2017). Financing: Financing is also important way to make combination of various factors.
Companies have huge resources which increase systematic results. EMI on different
financing option available which help to develop purchasing decisions.
 Sampling: Sampling consider free services which enable to create excellent outcomes
towards products and services which enhances awareness towards it. Customers who
carrying this perspective added lifetime value so that sampling consider higher cost to
make successful results.
These elements consider importance for producer, intermediaries and consumer as well.
For producer, it is the best way to attract customer in business. Therefore, they are able to
communicate advantages of products to several customers. On the other hand, for intermediaries
it is advantage to attain their target with selling more products and services. Consumers highly
attracted with using these tools and repeat purchasing also happen easily.
4.1 Relevance of market research to service industry operations
In respect to conduct market research, main aim of Thomas Cook group is that they want
to sell right product, at right place and right time. It is also important to go back and find
consumer getting maximum satisfaction. Following are certain importance determines: Identifying problems and opportunities in the market: In respect to conduct market
research, the chosen organisation able to assess problems and opportunities exist in
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market. It has advantage that it assists to provide competition level, customer satisfaction,
sales performance, etc. On the other hand, it consists more cost and time for research. Formulate market strategies: Furthermore, market strategy also develop with conduct
research. This is because, market competition is widely existed in the environment which
reduce effectiveness of the company. Main advantage to the chosen enterprise is that
alternative solution exist in front of them to attain effective results. However, more
training need to provide to all members of staff. Determine consumer needs and requirement: Market research also benefited to Thomas
Cook group that help to assess customer demand and requirement. Large scale production
needs for mass distribution consider with information gap. Hence, it assists to collect
relevant information from structured distribution. Advantage is that business could easily
fulfil customer demand and requirement. However, most investment needed to conduct
research (Walker and Walker, 2016).
 Effective communication mix: In order to create market research, effective
communication mix also develop at workplace. Therefore, organisation able to study
about media mix, advertising effectiveness and integrated communication tools.
PART 2
TASK 4
3.2 Plan an advertising campaign for service industry operations (Flyer)
Covered in flyer
4.2 Market research for appropriate product and service
In respect to carry present questionnaire, market research considers with Thomas Cook
group to sell right product and service in the market. In this regard, effectiveness increasing
continuously to operate desired functions in market. On the basis of answer, products and
services will be develop at workplace. This research conduct to sell new tour package in UK for
several attraction
Questionnaire
Name:
Age:
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Gender:
1. How are you satisfied with using Thomas Cook group?
 Highly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly dissatisfied
2. From where you access services of chosen enterprise?
 Online
 Offline
 Both
3. Which is main element attract you in selected firm?
 Product and services quality
 Pricing
 Delivery
 All of above
4. Do you take tourist agent to take services from Thomas Cook?
 Yes
 No
 cannot say
5. How much you take plan from Thomas Cook Group?
 Transportation
 Accommodation
 Restaurant
 Entertainment
 Any other
4.3 Suitability of different media for marketing of product or service
In respect to determine different media of marketing of products and services, following
elements could be used at workplace:
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Media name Description Advantage Disadvantage
Newspapers Newspaper is popular
medium of marketing
of products and
services. In this way,
different thing
included towards
product or service with
advertising.
It can be fit into mass
communication.
Long term effect cannt
be generated
Magazines It is also popular and
wisely used
advertisement.
Magazines could be
published in different
areas such as college,
university, social
areas, etc.
It is long life
considered.
Limited curriculum
activities included.
Direct advertising There are several ways
to consider direct
advertisement such as
sales letters, fax, cards,
etc. (Zervas, Proserpio
and Byers, 2017).
With the help of direct
advertisement,
personalised contact
could be made which
is more effective.
It is only meaningful
when customers able
read and understand.
Outdoor or Mural
media
Outdoor advertisement
consider with all types
of goods and services
which is excessively
used by manufacturers
and dealers. For
instance, Kiosk,
Outdoor media not
require special time
and efforts to read and
watch.
Direct effects unable
to measured.
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banners, etc.
4.4 Implementation of marketing plan for appropriate products and services
In order to create marketing plan for appropriate products and services, following
elements could be included: Business objectives: Thomas cook group consider their different objectives to monitor
progress. Objectives also provide guidance to take important decisions which involves
finance, personnel, marketing, etc. They require quantitative measurement to attain their
desired results. It is important to take objectives with market conditions with resources. Market environment analysis: Marketing environment analysis include identify impact
of environment factors which include economic, social and political. Changes in these
elements determine opportunities. Demographic and lifestyle trends: Changes in demographic and lifestyle elements have
major impact on participation in chosen business. Important trends in this way includes
population growth and movement, rural community growth, number of adult women
employed, etc. (Liu and Pennington-Gray, 2015). Economic conditions: Economic conditions create significant impact on tourism markets.
This strategy is effective for unemployment rates which significantly adjusted when
unemployment enhances in Thomas Cook. Law and government actions: As complex industry, tourism significantly affected by
positive and negative laws with certain actions of government agencies. Liability is also
issue and decision regarding build health codes. When public facility change, it could
affect associated private enterprise. Technology: Thomas Cook group also needed technological development which
increasing rapidly. New creation of products develop by this element which make
advance communication (Bruns-Smith, Chong Ph D and Verma Ph D, 2015). Competition: High competition of market consider to analysis existing and potential
competitors. Main objectives is to analysis strength and weakness of marketing strategies. Marketing mix: Marketing mix include product, price, place and promotion. In this way,
Thomas Cook Group set new holiday package for customers in UK. For it, company
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determine competitive pricing to attract customers. It distributed in different areas of UK.
Advertisement on social media used to carry creative work performances. Evaluation: It is important to evaluate marketing efforts that are continuously evaluated
to improve effectiveness of marketing strategies. Therefore, it helps to easily find
difference between actual results and expected performance to make successful results.
 Implementation: At last, Thomas Cook implement their plan to maintain effective results
and outcomes. On the basis of demographic elements, it can be stated that it increases
systematic work performances to develop target market (Bruns-Smith, Chong Ph D and
Verma Ph D, 2015).
CONCLUSION
From the above report, it can be concluded that marketing in hospitality industry consider
important role in success of business. In this regard, several activities and tasks determines to
attract maximum number of people. Present report based on Thomas Cook group which consider
operations and functions that develop significant advantages in the business. Therefore, report
covers promotional mix, marketing mix and other tools to develop effectiveness in the business.
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REFERENCES
Books and Journals
Bruns-Smith, A., Chong Ph D, H. and Verma Ph D, R., 2015. Environmental sustainability in the
hospitality industry: Best practices, guest participation, and customer satisfaction.
Healy, T.G. and Wilson, A., 2015. Social media marketing in the hospitality industry: is it worth
the effort?. In The 14th International Research Symposium on Service Excellence in
Management (pp. 1-10).
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management. 28(1). pp.36-67.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Leung, X.Y., Bai, B. and Stahura, K.A., 2015. The marketing effectiveness of social media in
the hotel industry: A comparison of Facebook and Twitter. Journal of Hospitality &
Tourism Research. 39(2). pp.147-169.
Liu, B. and Pennington-Gray, L., 2015. Bed bugs bite the hospitality industry? A framing
analysis of bed bug news coverage. Tourism Management. 48. pp.33-42.
Loveland, J.M., Thompson, S.A. and Gibson, L.W., 2016. Where do managers fit in the profit
chain? Assessing managerial job performance in the hospitality industry. Journal of
Human Resources in Hospitality & Tourism. 15(1). pp.86-102.
Naderian, A. and Baharun, R., 2015. The role of service quality and relationship marketing in
hospitality industry. International Journal of Economics, Commerce, and Management.
3(3). pp.1-15.
Perera, G.R. and Perera, I., 2018. Influence of Social Media Marketing on the Brand Image of
Organizations in the Hospitality Industry of Sri Lanka. In Media Influence:
Breakthroughs in Research and Practice (pp. 371-383). IGI Global.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
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Šerić, M., Gil-Saura, I. and Ruiz-Molina, M.E., 2014. How can integrated marketing
communications and advanced technology influence the creation of customer-based
brand equity? Evidence from the hospitality industry. International Journal of
Hospitality Management. 39. pp.144-156.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism Research.
39(2). pp.271-292.
Walker, J.R. and Walker, J.T., 2016. Introduction to hospitality management. Prentice Hall.
Zervas, G., Proserpio, D. and Byers, J.W., 2017. The rise of the sharing economy: Estimating the
impact of Airbnb on the hotel industry. Journal of Marketing Research. 54(5). pp.687-
705.
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