Marketing in Hospitality: Thomas Cook Travel Case Study Report

This report provides a comprehensive analysis of the marketing strategies employed by Thomas Cook Travel, a major player in the hospitality industry. The report is structured into four tasks, beginning with an introduction to marketing concepts within the service sector and specifically for Thomas Cook. It examines the impact of the marketing environment, including SWOT and PESTLE analyses, and the importance of market segmentation. Task 2 delves into the marketing mix, pricing strategies, and their relevance to service industries, emphasizing the company's pricing policies and distribution channels. Task 3 focuses on the role of the promotional mix, including advertising campaigns, sales promotion, and public relations. The report also outlines a plan for an advertising campaign and analyzes the roles of sales promotion and public relations. Finally, Task 4 explores the relevance of market research, suitable media for marketing, and the implementation of a marketing plan, offering insights into how Thomas Cook Travel operates within a competitive environment. The report concludes with a summary of the key findings and recommendations.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Concept of marketing for a relevant industry in service sector........................................1
1.2 Impact of marketing environment on service industries..................................................2
1.4 Rationale for developing various market segments..........................................................4
Task 2...............................................................................................................................................4
2.1 Importance of marketing mix...........................................................................................4
2.2 Analyse pricing strategies and policies in relation to service industries..........................5
Task 3...............................................................................................................................................6
3.1 Role of promotional mix..................................................................................................6
3.2 Plan an advertising campaign for a service industry operations......................................6
3.3 Analysing role of sales promotion and public relations play in efforts of promotion......7
Task 4...............................................................................................................................................8
4.1 The Relevance of market research...................................................................................8
4.2 Market research for an appropriate product or service.....................................................8
4.3 Suitability of different media for marketing an appropriate product or service...............9
4.4 Implementation of marketing plan.................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing plays an important role in enhancing the business activities at marketplace.
This division of a company perform various activities which are related with promoting products
or services, determine needs of consumers, identify sources from where raw materials can be
purchased on low cost and more (Seetanah and Sannassee, 2015). All these activities aid
organisations in reducing cost of production, enhancing performance level of business as well as
increasing sales performance. In this context, present report is based on role of marketing in
hospitality industry for which Thomas Cook Travel has been taken. It is one of the largest travel
industry in entire world as well as takes second position in UK. This report is divided into four
tasks in which first three tasks based on report and last one is an individual portfolio. It reveals
role of marketing mix, its elements, pricing and place.
Task 1
1.1 Concept of marketing for a relevant industry in service sector
The concept of Tourism marketing is an application of important principles and
techniques for promoting tourism of a nation (Kim, Vogt and Knutson, 2015). In context with
Thomas Cook, which is a British Travel Company of UK was started its business in 19 June,
2007. It was founded by Thomas Cook & Son and MyTravel Group plc. Growth of business of
this company is totally dependent on effective creation of network which further helps in
achieving high cooperation also. This firm has adopted various tools and techniques in order to
boost overall profitability of business.
Some important concepts of marketing related with Thomas Cook can be explained as
below:
 Production concept: In this concept, it is main responsibility of marketers to integrate
demands of customers on time as well as on affordable price rates (Smith and Puczkó,
2014). It helps in reducing the barriers of enhancement of sales performance if demand of
marketplace is more than supply of commodities.
 Product concept: It is an important concept in which tourist industries are needed to
serve best quality of services or products to travellers. This would help in gaining high
satisfaction of customers as well as their retention for longer period.
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 Selling concept: It entails with tools and techniques used in selling the products or
services of a company. So, Thomas Cook Company needs to focus more on its objectives
and serves customers accordingly.
 Marketing concept: Under this concept, it is necessary for manufacturing products or
services as per demand of tourists which would help in generating large amount of
profitability for future context.
1.2 Impact of marketing environment on service industries
Impact of marketing environment of an industry belongs to hospitality can be analysed by
evaluating factors of micro and macro situation. On Thomas Cook Travel Company, this could
be analysed by evaluating SWOT as micro factor and PESTLE as macro one as explained
below:-
SWOT (Micro)
Strengths- Thomas Cook is second largest firm in UK which offers
various types of tour and travel packages to travellers of
national and international countries on affordable price rates.
Weaknesses- Due to large number of competitors, this firm has limited
market share. Persisting of long-term debts also creates a big
impact on profitability of business of this company.
Threats- Uncertainties like Brexit poses much threat for travel
industries. Along with this, changes of economical and
governmental rule also creates an impact of business strategies.
Opportunities- Taking business on other international countries gives an
opportunity to Thomas to expand its business more.
Implementation of digitalisation in operations also aid this firm
to reach most customers all around the world.
PESTLE (Macro)
Political- Due to introduction of tourism tax, government has levied £1
per night for each traveller who visited in local hotels
(Gummesson, 2014). Thus, due to increment of domestic price,
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interest of foreign clients are becoming less in UK.
Environmental- Due to natural calamities like Hurricanes in Caribbean,
Tsunami, Foods and more create huge impact on business of
tour industries.
Social- Due to high level of unemployment, acceptance of social
region of high cost tourism has decreased at significant rate.
Technological- Usage of internet gets opportunity to Thomas Cook to promote
its business in a wider manner. Through technologies, travellers
can make plans of visiting a destination by comparing price and
other facilities of different operators easily.
Legal- This firm has to corporate its business with all legal laws like
Anti-Trust law, Data Protection and more.
Environmental- Changes in currency exchange rate, increase price of oil and
other natural resources etc. generates crucial situation for rising
economy of Thomas Cook.
1.3 Evaluation on relevance of consumer market in industries
In order to enter into new market area, service industries are needed to segmented
targeted customers in an efficient manner (Lim, 2014). It will help Thomas Cook in
understanding the needs of travellers easily. There are several characteristics which effects
business of travel industries like:-
Demographic: In this segment, customers are defined on the basis of demographic
factors like age, sex, education, family size and more.
Geographical: It includes factors like size and scope of market region as well as density
of population. Therefore, travel industries focus more on understanding the features of market in
context with geographical nature.
Behavioural: Characteristics of consumer market is classified on the basis of customer's
status, lifestyle, purchasing power and brand's loyalty.
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1.4 Rationale for developing various market segments
There are various reasons for developing market segments by Thomas Cook Travel
Company like by this it can frame strategies related to marketing in a more specific manner. This
firm has segmented consumers on the basis of similar characteristics. Demands and needs of
fragmented part of market can be determined easily. Through this needs of consumers can be
integrated as per their choice on time. It helps in following manner:-
Growth Opportunity: By fragmented market into choice of customers, it is easy for a
company to integrate necessities and demands of clients in much more easy way (Seetanah and
Sannassee, 2015). It will help in increasing brand value of Thomas Cook which will further aid
in increasing growth of business.
Better Communication: With the help of market segments, Thomas Cook can make
better relationship with customers by effective way of communication.
Increasing satisfaction level of customers as per needs and wants: Every visitor has
own taste and desires, so handling them in different ways aid in completing the same in an
effective way.
Task 2
2.1 Importance of marketing mix
Component of marketing mix Related with Thomas Cook Travel Company
Product This firm serves various tremendous packages
to travellers of both domestic and international
clients. It includes holiday packages for leisure
travellers like international, domestic, senior
citizen and more along with services like
foreign currency exchange, corporate house for
business man etc. It provides many kind of
coupons which a client can exchange for stays
or meals at accommodation.
Pricing Strategies As compared with other brands, price rates of
Thomas Cook is reasonable and affordable. At
present situation, in order to attract minds of
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clients, this firm is providing various kinds of
offers like a half way premium. It has a large
distribution channel which includes near about
33,000 employees, 3,000 stores and approx
100 aircraft.
Channel of Distribution Headquarter of this company is at
Peterborough, England. At present this firm
offers various tour destinations like UK, Egypt,
India, Spain, Italy, Portugal and more.
Promotional elements and recommended For advertising travel packages, marketing
managers of Thomas Cook used to give ads in
newspapers, magazines, TV and internet.
Being active on social sites like Facebook,
Twitter, Travel Blogs and own website helps in
making good connection with travellers.
2.2 Analyse pricing strategies and policies in relation to service industries
Thomas Cook Travel Company mostly focuses on giving best journey to clients of
national and international clients (Kim, Vogt and Knutson, 2015). It will help in getting retention
of customers for a long period of time. In addition to this, to get interest of customers towards its
services, this firm offers various kinds of packages on reasonable and affordable prices. This
would aid in enhancing brand value of also. Similarly in this context, Thomas Cook uses single
pricing strategy and different type of coupons to clients who book packages through online
services. In addition to this, half way premium pricing, discounts in off season, luxury services
and accommodations are some tremendous services of this firm which help in keeping interest of
travellers in a more concise manner.
Task 3
3.1 Role of promotional mix
Promotion is the most integral part of marketing mix in which a company mostly focuses
on using best techniques to attract minds of customers (Martínez, 2015). It plays an important
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role in enhancing brand of an enterprise as well as in reaching right customers. In Thomas Cook
Travel Company, this firm has used various types of promotional mix as given below:-
Advertisement: This technique helps in building brand of a company through which high
turnover can be gained. Therefore, Thomas Cook used to promote its services on own websites,
social sites and magazines, newspapers and more.
Direct Marketing: In this section, Thomas Cook used to sell its packages directly to
clients which helps in maximising its profitability.
Sales promotion: Under this era, this company used to sale its products on different
premiums, contest, discounts and more.
Personal selling: This strategy help in developing good relationship with customers and
effective communication with them.
Public Relation: Thomas Cook can apply mobile marketing, written materials and public
service activities etc. to integrate strategies and set a good relationship with consumers,
stakeholders and legislators of a company.
3.2 Plan an advertising campaign for a service industry operations
Planning an advertising campaign is used for achieving long term objectives for future
context (Ali, Amin and Cobanoglu, 2016). This would help in keeping cost low as well as in
reaching right audience. Therefore, a Thomas Cook Travel Company needs to focus more on five
steps for advertising an add in following manner:-
1. Map it out
2. Make budget plan
3. Define targeted customer
4. Evaluate Media Choice
5. Include other activities into mix
3.3 Analysing role of sales promotion and public relations play in efforts of promotion
The concept of marketing relates majorly with identifying need and demand of customers
as well as new trends of marketplace. It can be stated as a protocol set which is used in building
customer relationship by effective way of communication and delivering high value to them. In
context with hospitality industry like Thomas Cook Travel, role of marketers are described as
integrated the profitability of enterprise and demand of customers in an efficient manner.
Organisations come in tour and travel business earn much profitability than others in present
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time. Therefore, these service industries play an important role in uplifting economy of a country
(Getz, and et. al., 2014). In context with sales promotion, it is use in enhancing sale or purchase
of a product. It includes various types of activities like contests, trade shows, premiums, coupons
and more which are used by marketers to gain interest of customers.
 Offers: This firm has used to give free gifts to visitors while they boarding its services
for visiting most amazing place of the world in high economical way. It provides various
types of combination like one night free in luxury hotel with 10 to 15 days of travelling.
 Free Transportation: To gain attention of travellers and make their journey more
comfortable, Thomas Cook has provided free transportation to visitors while taking
leisure services for a journey.
 Purchasing in Bulk: Under this kind of sales promotion, this company has offered
customers that if they purchase same commodity in group then price value of the same
will get less (Del Chiappa and Baggio, 2015). This would help visitors in buying a thing
on low cost while in context with tour operators, it aids in gaining high revenues from
such outlets from where they purchase.
 Limited Offer: In order to gain high attention of visitors of national and international,
this travel company has offered its discount and tour packages for limited period only. It
would aid in enhancing profitability in more economical way.
 Coupons: Various types of coupons which can travellers exchange with accommodation
like one night free or mid day meal free are being given by Thomas Cook.
Task 4
4.1 The Relevance of market research
Marketing research helps a firm in identifying the problems in business which impact on
sales performance, quality and profitability of a company. Investigators use various sources to
gather information which further access by management in order to broadcast data for obtaining
best outcomes. In tourism industry, it is most important concept which entails with formulating
new strategies and policies in order to attract minds of customers towards its products or
services. In context with Thomas Cook Tour Company, marketing research aid in entailing
position and value of business of this firm in a large manner. It also help in determining
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problems occurred in business on the basis of daily routine as well as finding techniques to
resolve the same in effective manner.
4.2 Market research for an appropriate product or service
For conducting a proper research, investigators can use various sources and methods like
Primary and Secondary. Concept of these approaches can be explained as beneath:
Primary Research: Under this kind of approach, investigators are used to gather information by
conducting a proper survey on large population through various methods like questionnaire,
email, telephonic service and more (Welsh and et. al., 2014). It gives reliable and original data
but consumes much time and money for obtaining desired result. In addition to this, project
makers use to conduct whole activities in own manner.
Secondary Research: In this type of research, project makers used to collect information which
is gathered by others and available on internet, newspapers, magazines and other published
books.
A questionnaire format for Thomas Cook Travel Company
Questionnaire
Name:
Status:
Gender
Age:
Phone no.:
Email id:
Q1) Have you enjoyed with the trip of Mauritius holiday package?
 Yes
 No
Q2) How many times you have visited on a certain destination included in the plan of
Thomas Travel?
 One time
 Two times
 Three times More than three
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Q3) With whom you want to go on visiting place like Mauritius and Singapore?
 Group
 Family
 Friends Others
Q4) How do you get to know about holiday packages of Thomas Cook Travel Company?
 Tourist information centre
 Word of mouth
 Recommendation Other
Q5) Any advice or suggestion related with facilities and leisure tour packages of this firm?
4.3 Suitability of different media for marketing an appropriate product or service
Thomas Cook Travel Company has a large distribution channel and connected with various
kinds of media in order to promote its services in vast area of market place. It includes television,
radio, newspaper, print media and other audio-video sources of social media. These sources help
in influencing interest of travellers towards its amazing tour packages and accommodations
(Knani, 2014). In addition to it, this firm has consistently activated on social media to connect
with national and international clients as well as building good relations with them. Among
various sources, best media used by this organisation are print and social media. Through these,
this firm has gained attention of large customers towards its affordable tour packages. It has also
provided its complete information on own website about offers, pricing strategies and
tremendous holiday packages.
4.4 Implementation of marketing plan
Thomas Cook has given various tour packages to travellers on affordable and reasonable
prices rates along with different types of coupons and discounts. It has designed each visit in an
amazing way like Singapore by determining needs and demand of travellers in a proper manner.
In addition this, it has provided various types of facilities and accommodation in keeping mind of
visitors (Lu and Stepchenkova, 2015). The main goal behind implementation of a marketing plan
is to provide leisure services at affordable cost.
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