Marketing Essentials for Travel and Tourism: TUI Marketing Report

This report provides a detailed analysis of marketing essentials within the travel and tourism industry, using TUI AG as a case study. It begins with an introduction to marketing and its significance, followed by an explanation of the key roles and responsibilities of the marketing function, including market research and information provision. The report then delves into the marketing environment, analyzing the roles and responsibilities of marketing within the organizational context. It emphasizes the interrelationship between marketing and other functional units like Human Resources and Finance. Furthermore, the report compares the marketing mix applications of TUI and Booking.com, evaluating their strategies for product, price, place, promotion, people, process, and physical evidence to achieve business objectives. Finally, the report culminates in the production of a basic marketing plan for TUI, designed to meet its marketing objectives, providing a comprehensive overview of marketing strategies in the travel and tourism sector.

MARKETING
ESSENTIALS FOR
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explain the key roles and responsibilities of the marketing function within a selected
Tourism Organisation..................................................................................................................3
M1. analyse the roles and responsibilities of marketing in the context of the marketing
environment.................................................................................................................................4
P2. Discuss the roles and responsibilities of marketing relate to the wider organisational
context. .......................................................................................................................................5
M2. Analyse the significance of intelligent should between marketing and other functional
units within a selected Tourism Organisation.............................................................................5
TASK 2............................................................................................................................................6
P3. Compare the ways in which different tourism organisations apply the marketing mix to
the marketing planning process to achieve business objectives..................................................6
M3. Evaluate different tactics applied by travel and tourism organisation to demonstrate how
business objectives are achieved.................................................................................................9
TASK 3............................................................................................................................................9
P4. produce a basic marketing plan for a travel and tourism organisation to meet marketing
objectives of the organisation. /M4. Produce a detailed, coherent, evidence-based marketing
plan that applies the marketing mix to meet marketing objectives for a travel and tourism
organisation. ...............................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing refers to the process and all those activities which are adopted by businesses in
order to appropriately establish their presence in the market and customers familiar with their
products and services (Bai, Hung and Lai, 2017). Basically marketing is a process that
interrelates with the brand similarity and popularity within the given marketplace along with the
offerings of the organisation which respective brand belongs. Marketing is considered as one of
the most essential function within the businesses irrespective of their industries and marketplace.
In similar context marketing refers to significant operation within a travel and tourism
organisation belonging to the hospitality industry. The present report below is based on TUI AG,
highly recognised travel and Tourism Organisation in London, United Kingdom. In the report
below a detailed explanation of marketing role within the entity and their interrelationship with
other function is provided. Father mod the report covers comparison between different elements
of marketing mix of TUI and its competitors. Lastly a basic marketing plan is developed for
meeting the business objectives of TUI.
TASK 1
P1. Explain the key roles and responsibilities of the marketing function within a selected
Tourism Organisation.
Marketing is a function which includes a process which ensure that every potential
customer within the market is familiar and attracted towards the offerings of speak respective
company. marketing function helps and entity in increasing their communication with niche and
potential market places in regards to the products and services provided as well as received
benefits for the customers associated with the brand. The marketing function of organisations
and for this report TUI has a number of roles and responsibilities to perform which brings
efficiency and effectiveness towards the entity and establish a strong brand name in the market.
ROLES OF MARKETING FUNCTION:
 Market research- The first and the most basic rule which is performed by marketing
function of TUI within the travel and tourism sector is of conducting marketing research.
the respective rural health company in engaging and gaining the most significant and
relevant information from the market as the research is undertaken on different spectrum
and areas.
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 Information provider- The second most relevant role of the marketing function Hindi
travel and tourism sector and which it performs for the respective organisation that is TUI
is of providing information to all different functions to which the respective knowledge is
relevant. For instance while researching the market different trends are identified by the
marketing team and these trans are communicated to the production department for
developing the best and most attractive offers and travel packages for targeted customers
(Hooper and Lennon, 2016).
RESPONSIBILITIES OF MARKETING FUNCTION:
 Brand Management- One of the major responsibility of marketing function within TUI
is that it helps the company in managing its brand and undertake competitive analysis
which enables the organisation to determine prospects that are useful in attaining brand
equity.
 Product Development- This is the responsibility of marketing function within TUI of
developing effective and strong offerings for the customers. This means that the
department is responsible for producing affordable and most attractive service with
received quality for the customers.
M1. analyse the roles and responsibilities of marketing in the context of the marketing
environment.
In respect to the organisational context marketing have a number of roles and
responsibilities but it also have different roles to perform within the overall marketing
environment of the firm. Some of these roles and responsibilities are as follows:
 Information system- The responsibility of marketing function in regards to information
system is related to providing the most appropriate data and information to organisations
such as the TUI within the travel and tourism sector. The provided information can be
delivered for any different aspect that will be useful for the company (Pappas, 2017).
 Monitoring- The marketing function role and responsibility in regards to monetary is
crucial where it keeps track on external and internal environment of TUI and helps to
make any changes and modifications in the dynamic as well as regularly evolving
environment.
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P2. Discuss the roles and responsibilities of marketing relate to the wider organisational context.
Marketing department is a unique unit of the organisation which also holds an active part
in leading it towards success and growth. One of the unique feature of Marketing department
which it holds in every organisation irrespective of their industries and sectors is off integration
and inter relationship with different functional units present in the organisation. In the similar
context, TUI is the leading organisation belonging to travel and tourism industry holding number
of different functional units such as Human Resource Department, Research and development
Department, Sales Department and Finance Department (Rahmiati and et. al., 2020).
Marketing Department is interrelated with these different functional units of TUI which is
done by integrating its rules and responsibility which the separate departments. Therefore, this
interrelationship and interdependency of marketing function on other units like Finance, Sales
and Human Resource is elaborated below in the next section.
INTERRELATIONSHIPS OFMARKETING FUNCTION WITH OTHER FUNCTIONAL
UNITS OF TUI:
 Human resource and Marketing Department- The role and responsibility of Human
Resource Department of TUI is to fulfil the company’s needs of having a strong and
potential workforce. The role of marketing and Human Resource Department interrelates
when the company is in need to recruit new members for filling the vacant position. The
marketing unit helps Human Resource Department to advertise and promote the
information about the breaking job position and in search in the best professional for the
brand (Plantinga, 2017).
 Finance and Marketing Department- The role and responsibility of finance department
in TUI is to take care of all the funds available with the brand and allocate them in the
most effective manner to offer the best returns to the company. The correlation exist
between marketing and Finance Department of TUI when budgets are allocated to
Marketing department for their respective promotional activities with regards to enhance
companies popularity and brand awareness in the market.
M2. Analyse the significance of intelligent should between marketing and other functional units
within a selected Tourism Organisation.
Every functional unit within TUI operates differently and work with the unique
characteristics to achieve particular set of objectives and targets that are provided by the
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management of the organisation. But marketing function integrates and amalgamate with all
these different working units in the organisation for providing the most effective overall
functioning of the organisation and ensuring productivity. Therefore, relationship developed by
marketing with other functional unit is very necessary for accomplishing different goals in the
most appropriate manner and as per the given standards.
TASK 2
P3. Compare the ways in which different tourism organisations apply the marketing mix to the
marketing planning process to achieve business objectives.
Marketing mix refers to the tool for the framework which is used to integrate all the
variables within the marketing function and set up a appropriate directive approach for the
organisation to accomplish all several marketing objectives. The framework provides different
tactics and tools to the entity for emphasising upon their strategies in order to gain higher
competitive advantage and sustain the longer period of time within the industry (Walker and Lee,
2019). The marketing application of TUI and one of its competitor that is booking.com is
explained below in the table.
Elements of Marketing Mic TUI Booking.com
Product The company uses
diversification as its product
strategy. The product offered
by the firm array of multiple
range of services including a
of distinct offerings. Also
differentiation is another
strategy which allows the
form in gaining competitive
edge.
In comparison to TUI
booking.com implements
customer based services as its
product strategy.
Booking.com only introduce
those portfolios that are
desired by the customers
rather than focusing on larger
and wider portfolio.
Price TUI adopts competitive
pricing strategy in order to
grow with in its potential
market.
Booking.com adopts
differentiation pricing
strategy in order to set up
prices for its products and
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services offered.
Place The company sells its
offerings in two distinct ways
1 is its outlets that are
physical stores where
customers can visit and
acquire their desired services.
The second is its website for
customers through which they
can make purchases.
Booking.com is unique and
only deals through virtual
platforms and internet. The
company has established its
website as well as an mobile
application for interacting and
keeping in touch with all the
customers as well as potential
buyers (Sotiriadis, 2018).
Promotion Promotional strategies and
tools used by TUI are more of
traditional media such as
television, radio and
newspaper advertisement.
The company also uses social
media to make it services and
brand awareness but 800
main focus is kept on
traditional means of
promotions.
On the other hand
booking.com uses more
modern techniques and
approaches to to promote its
offerings such as its holiday
packages and distinct features
offered are huge attraction for
customers. Along with that
company make efficient use
of digital media to promote
and advertise it offerings in
the market.
People There are number of
employees present in in
different departments and
functional units of TUI. The
company makes sure that
effective on the job and off
the job training that are
essential for the workforce is
provided to them in respect of
Booking.com make use of
number of appraisal
programs, training sessions
and other rewards for keeping
the moral and motivation
standards of employees high.
Along with it another motive
of doing so is to keep them
focused towards their roles
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ensuring growth and
development of the company.
and responsibility and render
the best performances to the
company in regards to their
respective field and expertise.
Process Number of processes adopted
by TUI along with techniques
and methods to implement
them. online that is virtual
and physical both types of
processes are used within the
entity for running the
operations smoothly and
effectively. For instance
company use social media
and digital tools to collect
feedback from their
customers and also to gain
knowledge about their
preferences (Khare, Dixit and
Sarkar, 2020).
Booking.com is focused
highly upon simplifying its
processes within the company
for both people and for
customers. The entity is
engaged and associated with
more than 30 million hotels
and other rental
accommodation service
providers around the world.
Still the organisations offers a
single platform for bookings
and enjoy other related
services with the brand.
Physical Evidence The most relevant and value
adding physical evidence of
TUI is its distinct packing of
its products within the retail
shops, the company's website
and the physical outlets
through which it conducts
sales activities.
Customisation is heavily
implemented in the processes
of booking.com that enable
users to choose there
accommodation, holiday
packages and other related
services as per their needs
and desires. These aspects in
shores authenticity and offers
a physical evidence for its
services by associating it to
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certified accommodation and
dining service providers.
M3. Evaluate different tactics applied by travel and tourism organisation to demonstrate how
business objectives are achieved.
in the above section the marketing mix elements and their application used by Vini and
its competitor is separate and indirectly different. But from the evaluation conducted above it is
identified that application of marketing mix within TUI is it somewhat weaker than that of
booking.com. the four for making improvement and gaining competitive advantage the company
needs to adopt different tactics which are as follows:
 In order to promote its services TUI need to indulge in digital marketing by adopting
different approaches like search engine optimisation, social media and push notification.
 In order to improve its physical evidence, TUI needs to start using different technologies
like virtual reality for offering real time experiences to customers and develop a positive
perception in their mind-sets for the entity (Rasulovich and et. al., 2019).
TASK 3
P4. produce a basic marketing plan for a travel and tourism organisation to meet marketing
objectives of the organisation.
Marketing plan is a detailed and sequential blueprint of an organisational marketing
processes that is used by the entity to communicate and promote its offerings in front of
customers. In context with TUI apart from its effective bookkeeping services and tour packages
the organisation offers several different services such as TUII Airways pitch reflects over its
brand. Abhishek marketing plan describes the steps and processes about how best the company
can make itself and its offerings familiar with the targeted audiences and potential buyers. The
present marketing plan is developed for promoting the application of TUI richest known as TUI
Fly.
The application will offer is ease and comfort to customers as we can indulge in
spontaneous booking and check-ins through it. Along with it the application will also provide
other benefit to the customer such as appropriate in flight engagement and several personalised
entertainment and streaming services.
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STRATEGIC OBJECTIVES
 The firm is planning to enhance its customer base by 10% after 10 months from the
launch of there application.
 To achieve a rise of 8% in profitability at the end of six months after executing the
application in the marketplace.
 To increase customer retention ratio by 15% at the end of the year once the application
has introduced and started flourishing.
OFFERINGS
The organisation TUI offer several and different range of tour packages to different types
all categories of customers through its booking website and several booking outlets the company
has established in different areas where it operates. However, the application TUI Fly which is
being introduced would help customers and all potential buyers to directly book the packages by
using digital media and gain a personalized service experience preferences and purchasing
history if any. Along with it the application is also helpful in in enabling customers to self check
in and bookings through which the notion of long queues at the airport and other service areas
can be e eradicated easily offering comfort and flexibility to people (Xesfingi and et. al., 2018).
TARGET MARKET
For establishing and understanding about the target market of the organisation belonging
to any industry and for this plan TUI the STP that is segmentation, targeting and positioning
model is used.
 Segmentation is a process through which market is divided into several groups and parts
based on certain characteristics. TUI have divided its market through geographical and
demographic segmentation strategies. Under geographical segmentation the company
divided the market on the basis of locations. Under demographic segmentation the
company divided its market on the basis of demographical characteristics such as gender,
age and income of the individual.
 Targeting is the second stage which is supported by segmentation process as from the
specified segments in the above stage the form would be targeting general customers of
urban areas of the United Kingdom initially have income level of more than £1000.
 Positioning is the process of placing the product in the market by using appropriate tools
and techniques. TUI Fly will be placed in the market buy online platforms as a mobile
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application and will be featured on the website as well as social media platforms of of the
organisation for customers to get all the appropriate information and be familiar with
application and how to acquire services through it.
SWOT
 Strengths- The company and its air travel services cover more than 150 destinations
around the world offering it accessibility to larger customer base. Another strength of the
entity is effective diversity in its product and services that are preferred by customers.
 Weaknesses- The biggest weakness of a TUI is its in appropriate organisational structure
which limits its expansion in context of product segmentation. Another weakness is
company has a very ineffective and weak demand forecasting system.
 Opportunities- The present opportunity in front of TUI is the rise taking place in
digitalization amongst millennials and enhancement of travel and tourism industry on a
very rapid pace (Almeida, 2017).
 Threats- The first and foremost thread which is being faced by TUI is increasing
competition within the industry and uncertainties caused by the unstable and an ethical
political environment of United Kingdom.
M4. Produce a detailed, coherent, evidence-based marketing plan that applies the marketing mix
to meet marketing objectives for a travel and tourism organisation.
MARKETING MIX
 Product is the new application which is being developed that is known as TUI fly there
as the strategy behind the product is of innovation. Digital technologies and tools are
used to assess the needs of customers and also to provide them a solution through it.
 Price of the product that is the services which will be provided to customer through the
application on their mobile phones will be accessible at premium rates due to features of
High quality services and personalized experiences.
 Place reflects upon the distribution channel which will be used by TUI to make its
product accessible to customers. The company would be using PlayStore and istore to
ensure that each potential customer gets the access to the mobile application of the brand.
 Promotion is advertisement of the new offering and TUI have its major focus on the
form for promoting the application through social media and digital marketing platforms
like Instagram, YouTube and Facebook.
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 People refers to employees of Vine where the company have established new are in the
team to research areas of effectiveness within the application and also have engaged in
several training sessions for stimulating the efficiencies and competencies of existing
people (Proctor, 2020).
 Process involved in building the application effectively by using technologies like
artificial intelligence and automation. Moreover, repetitive testing is also adopted by the
form for ensuring the best results and effective application development as per the
required standards.
 Physical Evidence in regards to the application will be reflected by its characteristics and
its user friendliness because it features as through the application each step towards the
acquisition of services would be guided in order to enhance effectiveness experiences of
the user and the new offering (Campos, Pinto and Scott, 2019).
MARKETING BUDGET
PARTICULARS I II III IV V
Start-Up Capital 5400 11000 12450 13030 17140
Investment 4300 7800 5500 4465 8636
TOTAL 9700 18800 17950 17495 25776
MARKETING
OUTLAY
Marketing 6500 7800 6900 12700 13660
Publicity 8800 12100 9900 10500 12200
TOTAL 15300 19900 16800 23200 25860
MONITORING
There are a number of measures and techniques available for measuring and monitoring
the marketing plan and its results. The chosen and one of the most effective method for TUI is
KPI that is key performance indicators. These are the factors which indicate as to whether the
plan and the determined steps are working according to the state standards or not. There are
several number of specific indicators such as occupancy rate of the airlines, number of customers
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