Marketing Strategies in the Travel and Tourism Industry: Thomas Cook

This report examines the core concepts of marketing within the travel and tourism sector, focusing on the strategies employed by Thomas Cook. It delves into market segmentation, targeting, and positioning, along with the impact of the marketing environment, using PESTLE and SWOT analyses to evaluate the company's operations in regions like Morocco and Egypt. The report analyzes factors influencing consumer motivation and demand, including cultural and social influences, and assesses the application of the marketing mix (product, price, promotion, place). Furthermore, it explores strategic marketing planning, the role of marketing research, and the influence of marketing on society, including the importance of service sector mix elements and the concept of the total tourism product. Finally, the report assesses the integrated nature of the promotional mix, planning and justifying an integrated promotional campaign for Thomas Cook's summer 2016 holidays.

Marketing in travel and tourism
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Table of Contents
.............................................................................................................................................................1
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1.1 The core concepts of marketing for the travel and tourism sector..........................................3
P1.2 The impact of the marketing environment on Thomas Cook Group with Morocco and Egypt
.........................................................................................................................................................4
P1.3 The factors affecting consumer motivation and demand in the travel and tourism sector......5
P1.4 The principles of market segmentation and its uses in marketing planning at Thomas Cook
Group...............................................................................................................................................5
TASK 2.................................................................................................................................................6
2.1 Analyzing the importance of strategic marketing planning for Thomas Cook..........................6
2.2 Discussing the relevance of marketing research and marketing information to managers ......7
2.3 Assessing the influence of marketing on society.......................................................................7
TASK 3.................................................................................................................................................8
P3.1 Issues in the product, price and place elements of the marketing mix....................................8
P3.2 The importance of service sector mix elements to the travel sector........................................9
P3.3 the concept of the total tourism product to an individual tourism business............................9
TASK 4...............................................................................................................................................10
4.1 Assessing the integrated nature and role of promotional mix..................................................10
4.2 Planing and justifying an integrated promotional campaign for Thomas Cook summer 2016
holidays..........................................................................................................................................11
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12
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INTRODUCTION
The company who work for the customers who travel across the places from their usual
environment for leisure , business or for vacations is known as tourism sector. It is the largest
service industry regarding gross revenue and foreign exchange earnings. It is an major social
phenomenon which are driven by social, religious, recreational, business trips etc. The main
motives of the travel and tourism are to know the need identification of the customers, to offer the
economic price tour package to the middle class customers because it has the potential to stimulate
other sectors in the economy (Bryson and Salazar, 2012).
Thomas Cook Group is one of the popular travel and tourism company in the United
Kingdom was founded by the Thomas Cook in year 1841. The company is leading leisure travel
groups globally with good sales performance as well as serving more than 22 million customers
worldwide and listed on the London Stock Exchange. The motive of Thomas Cook is to deliver
good , trusted, personalised holidays experience to their customers by meeting up their requirements
through online tools and applications (Great Britain Competition Commission, 2011). In this
research of Thomas Cook , the report focus on various aspects such as its marketing concepts,
principles of marketing, role of marketing mix and to know its promotional activities which is used
by the company to promote its brand value as well as to attract more customers to their services.
TASK 1
P1.1 The core concepts of marketing for the travel and tourism sector
The core concepts of marketing include STP i.e. segmentation, targeting and positioning of
the travel and tourism sector. Thomas Cook is segmenting the market on the basis of demographic,
geographic, behavioural and psychographic segmentation. The company is concentrating on the age
, gender and race of the customers in demographic by offering good tour packages to the family in
the economic rates. In geographical segmentation is done on the basis of area, location etc. whereas
in behavioural segmentation, the company provides the value of money to the customers for the tour
packages and give them additional benefits (Adams and et. al., 2015). In psychological
segmentation, the organisation is focussing on the tastes and preferences, class and attitudes of the
customers to meet the needs and wants of the market.
The other concepts of marketing includes marketing mix which has four components i.e.
product, price, promotion and place. Thomas Cook is providing product and services to their
customers which can easily be personalised according to the needs of the consumers so that many
customers can get attract to the the organization. Price of the Thomas Cook is also reasonable as per
requirements of the customers and according to their price groups. Promotion of Thomas Cook is
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done by advertising, mass media and social media etc. to attract large number of customers of all
groups. Place also matter most in marketing any products and services so the distribution channel of
the Thomas Cook is large to gather many people at once.
Along with the above segments, Thomas Cook is focusing on other and major core concept
of the marketing which are as follows:
Customer Needs: It is important for the firm to understand the customer needs with respect to travel
and tourism industry. For this, organisation conducts market research which helps in knowing about
the perception and views of the clients with respect to the tourism products and services offered by
it. By meeting the needs and expectations of the consumers, Thomas cook increase their satisfaction
level.
In context to the travel and tourism sector, tourists want proper security, high quality
services, fresh and pollution free environment, full enjoyment and healthy food. All these demands
are fulfilled by the Thomas Cook in effective manner.
P1.2 The impact of the marketing environment on Thomas Cook Group with Morocco and Egypt
The impact of the marketing environment on the Thomas Cook Group is examine by the
PESTLE analysis which is as follows (Fitzen, 2009):
 Political Factors: The company is taking care of the government regulations and legal
issues which is quite stable in Morocco and Egypt. War against terror is major issue which is
affecting the political stability of the government. The organisation should focus on the
aviation fuel tax and VAT on air tickets and the company should check the government's
taxation policy.
 Economic Factors: This factor affects the buying power of the probable customers and also
affects the company's sales performance. Thomas Cook is investing more in the business as
well as customers also spending high in the tourism which can led to promote Morocco and
Egypt tour package.
 Social Factors: The company is giving safety and security while travelling to Morocco and
Egypt which is major concerns for the customers to travel place to another. Changing of
lifestyles and fashions, customers is spending more on the travel to get luxurious tour
packages.
 Technological Factors: It also helps the travel agency to boost up their sales in the
organisation by having internet access and making purchases at online i.e. booking for
tickets and holidays. For effective services, the company should aimed at providing
innovative services and distribution of products can be done through marketing information
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system, customer relationship management etc.
 Legal Factors: The company has follow laws and regulations of the country which can
include equality act and some policies. Equality act include equal price tour package to all
the ages and the gender of the economy and the company should follow the tourism and
hospitality law.
 Environmental Factors: It is the crucial factor which affects the organisation through sales
performance. To increase sales performance of the Thomas Cook, the company should
follow CSR strategies and while expanding CSR strategies, change in climate also plays a
crucial role which can give negative effects on the company's supply chain.
SWOT Analysis
Strengths:
 Customers of the Thomas cook can develop their own holidays with the help of internet.
 Clients have rights to choose hotel and flight as per their demand.
 Company has its own airlines and three charter
 It has covered around 100 destinations
 Experienced and talented employees.
Weaknesses:
 Limited market share due to the continuous progress of competition
 Long term debt which makes the organisation more susceptible to the fluctuations takes
place in market.
Opportunities:
 To expand its business in more countries.
 Addition of larger plan for carrying more passengers and offering high quality services.
Threats:
 Changing prices of fuel
 Increasing competition due to the low cost carriers
P1.3 The factors affecting consumer motivation and demand in the travel and tourism sector
To motivate their customers to buy their products and services through marketers and
promotional activities is important factor in motivating a consumer. Thomas Cook is organising
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tour packages of the Egypt and Morocco where the company is giving tour package at an economic
rates. In which the company is offering various sight-seeing to visit in Egypt and Morocco. The
customers also focusing on the feedback of the former consumer to know the feedback of the
Thomas Cook to know its products and services. Thomas Cook is providing 40% discounts on the
new tour packages i.e. Egypt and Morocco to the customers who will booked their first ten tickets .
Consumers are now preferring security and safety as the major part of travelling from the travel
agency because it is the important aspect of the travel and tourism company. So the company is also
providing proper care and safety to the customers in the travelling which will motivates the
customers to purchase its products and services (Hoyer and et. al., 2012).
Thomas Cook has a great and popular brand image in the travel and tourism sector industry
by which many consumers is easily attracted towards them. Brand value play major factor in the
travel and tourism industry because customers believes in the brand quality of the services which is
prefer according to their tastes, preferences and lifestyle of the consumers. The company is offering
tour packages at the very nominal rate to the low economic family so that they will able to share
their new tour experience with the Thomas Cook. Other facilities of Thomas Cook is to give 24-
hours staff service to the customers, stay in 4 or 5 star hotels and providing healthy food to their
customers.
Those factors which affects the consumer motivation and demand are as follows:
Cultural Factor:
It includes culture, sub culture and social class of the people. In context to the Thomas
Cook, individual gets influenced by his/her cultural values, importance, preferences, etc and due
this, he/she takes decision regarding trip accordingly. For example: Person with Hindu religion will
not like to visit Muslim countries due to their cultural values and preferences.
Social Factor:
Individuals get influenced by the perception and thoughts of their family member, friends,
other relatives while making any decision regarding the trips. For example: friends who have visited
Morocco and Egypt will provide information related to the architecture and natural places. On the
other hand will discuss problems present there.
P1.4 The principles of market segmentation and its uses in marketing planning at Thomas Cook
Group
When the broad target market divide into sub-groups in form of consumers, businesses,
tastes and preferences, area or regions or on loyalty status to gain profits for the organisation as well
as to build their brand image in mind of the people is known as market segmentation. The
segmentation is divided into four parts and they are geographic which is based on the location,
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region of the consumers. Second is demographic which is divided on the age, gender, occupation
etc. of the consumers whereas third one is categorised on the basis of the loyalty status, price of the
products etc. which is known as behavioural segmentation. Last one is categorised on the basis of
psychographic in which personality, tastes and preferences and lifestyles comes in this type of
segmentation (Cody, 2012).
Thomas Cook is targeting the psychographic segmentation which is giving benefits and
brand value as well as loyal customers to the organisation (Lamb and et. al., 2011). In
psychographic, customers emphasis on luxurious life and they need proper safety and security in
their travelling from the travel company. A tourism destination is more dependent on the
psychographic because it characteristics include lifestyle, values and social class which has strong
influence on the customers. Now the customers are product and services conscious more than price
conscious because they need comfort, good lifestyles, security and friendly connection with the
travel company. Customers are spending more on the travelling because to explore new places and
to gain new experience for a lifetime. In context to this, Egypt and Morocco is also a new
destination of the customers to explore and to achieve new experience as well as to know the
history of the Egypt and Morocco region.
TASK 2
2.1 Analyzing the importance of strategic marketing planning for Thomas Cook
Strategic marketing is the most imperative aspect as it support corporation in implementing
managerial plan in the organization. Here, organization prepare different plans so as to achieve long
as well as short term objectives in right manner. In this regard, management also consider the
external factors such as technology, economy and legal factors. This in turn Thomas cook changes
its marketing strategies so as to deliver good quality of services to large number of buyers
(Alexander, 2007). For creating summer 2016 holidays to Morocco and Tunisia, assistant manager
of Thomas cook can plan for its marketing strategies.
Under this, company can understand the market scenario which in turn effective strategies
can be implemented in order to promote holiday at international level. During that process
corporation will take decision related to customer satisfaction by selection appropriate mode of
communication. Likewise, strategic marketing planning makes it possible to establish long as well
as short term objectives (Assaker, Vinzi and O'Connor, 2011). It will also help assistant marketing
manager to remove unproductive initiative which merely create cost and do not contribute towards
success of the firm. Furthermore, with the help of strategic marketing planning customer target
market for summer 2016 holidays to Morocco and Tunisia will be assessed effectively. In addition
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to this, assistant management will ascertain the factors which affects customer base and sales
turnover. Accordingly appropriate actions are taken to resolve issues and achieving set objectives
(Heung, Kucukusta and Song, 2010).
Apart from this, management will make effective itinerary plan under which special
discount will be given to prospective buyers. It leads to attract more buyers and promote proposed
holiday package. Apart from this, brochure and internet as most effective tool for promotion will
also be used.
The strategic plan to Thomas Cook with respect to its trip and tour to Morocco and Egypt is
as follows:
 Situational Analysis: In this, organisational will have to conduct both PESTEL and SWOT
analysis. This will help in understanding the current market position.
 Objective Setting: In this, Thomas Cook will have to set objectives which it wants to
achieve from the trip of Morocco and Egypt.
 Strategy development: For achieving the above set objective of increasing profitability and
number of customers, Thomas Cook will have to develop new and innovative strategies. For
example, use of digital marketing.
 Tactical Development: In this organisation will have to do market surveys and researches
for meeting demand and supply of the services.
 Action: In this, firm will have to implement plan by fixing appropriate and high quality
hotels and airlines.
 Control: Each and every process of the strategic plan need to be monitored properly for
controlling any problem or issue at the same time.
2.2 Discussing the relevance of marketing research and marketing information to managers
The information of marketing and marketing research are two important aspect under which
all workforce need to work with integrity. Here, managers need to get information related products
and services which hare available in the market so as to increase sales turnover (Kayar and Kozak,
2010). It aids to create competitive edge and increase level of satisfaction among buyers. In addition
to this, after getting information related to marketing, effective marketing strategies can be
formulated to promote the holiday packages in the marketplace. It leads to determine growth and
success of corporation so as to achieve market share. Furthermore, marketing research and other
information related to marker is the effective tool to analyse strategies of competitors (Keller,
2009). This in turn products and services provided by Thomas cook will be different from those of
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competitors. It facilitates to cope up with changing scenario and cater need of large number of
buyers.
Apart from this, market scenario will also provide the information related to labour market.
Accordingly company will ensure about its internal environment (Magnini, Crotts and Zehrer,
2011). It leads to reduce additional cost as management will not face issue related to high attrition.
In addition to this, it is the only market research by which customer profile will be prepared and
strategic marketing planning will be done. This planing enables assistant marketing manager of
Thomas Cook to create distinctive image in the marketplace. In addition to by getting information
related to current scenario management can effectively make changes in its present services and
products. This leads to increase customer base and increase level of profitability to a great extent.
Therefore, marketing information and research are related to each other and organizational planning
rely on market research only (Molina, Gomez and Martín-Consuegra, 2010).
Thomas Cook needs to follow the below explained market research process:
 Problem Definition: In this, company has to identify the problem first, which is working as
barrier. It can relate to the high price of trips, improper allocation of resources, etc. This will
help firm in selecting appropriate strategy for summer holidays.
 Formation of objective: In this, Thomas Cook will have to formulate objectives which is
wants to achieve by handling the problem effectively. In this, there will be need of proepr
discussion with the higher authorities and management.
 Design research plan: In this, Thomas Cook will have to design proper plan with respect to
the research and problem, it is facing.
 Collection of research data: By implementing the research plan, organisation will able to
collect information with respect to the problem. It can use various techniques such as
observation, feedback, questionnaire, etc for gathering relevant data.
 Analysis of the research data: After all the above processes, all the obtained data will be
analysed properly with the help marketing tools and techniques.
 Reporting of outcome: Obtained results from the analysis will be reported to the
management and higher authorities. This will make them to take effective and strong action
for handling the issue.
2.3 Assessing the influence of marketing on society
Marketing is the most important fact behind success of every organization. Thomas cook
uses different marketing strategies just to make customer aware related to good quality of products
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and services. The field of marketing is not only beneficial for customers but also company, general
society as well as other related parities. For example, due to increasing scope of marketing,
employment opportunities are also increasing. Further, marketing makes it possible to promote
products and services in the marketplace so that all competition can review their strategies
accordingly (Morrison, 2013). It enables Thomas cook to use effective strategies thereby customer
can be increased in the marketplace. On the other hand, marketing manage customer expectation
and accordingly contribute towards delivering good quality of services to large number of visitors.
In addition to this, marketing enables management of Thomas cook to identify several issues faced
while attracting buyers.
Similarly, marketing is very important for company as this tool facilitates to increase
customer base and create competitive edge of the same in the marketplace. Likewise, higher sales
turnover aid to increase profitability of business thereby Thomas cook get several monetary as well
as non-monetary benefits. It facilitates to create more jobs and enhance tax revenue for government.
Also, through marketing process customer get products and services they desire for. It also
contribute towards making their life more easier (Pomering, Noble and Johnson, 2011). In addition
to this, company seeks customers expectations and accordingly bring changes in existing products
and services. It leads to increase level of satisfaction among buyers. Furthermore, marketing
activities of Thomas cook explore social development because marketing tend to increase sales
turnover which in turn expenses on social responsibilities will be also be increased.
There are both positive and negative impact of marketing regarding the trip of Thomas Cook
which is as follows:
Positive Impact:
 Product Information: With the help of marketing techniques, Thomas Cook is able to
provide all the information with respect to its trip to the people of diverse nations. It also
helps individuals in getting detail about the various facilities, night stay, flight arrival,
timing, etc.
Negative Impact:
 Misrepresentation: Thomas Cook misrepresents the information infront of customers for
earning more profit. But this, results to increase the expectation of visitors from the trip of
Morocco and Egypt. In the end, people felt like mistreated by the firm.
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TASK 3
P3.1 Issues in the product, price and place elements of the marketing mix
Marketing mix plays an important role to build the brand image as well as to expand their
market share and profitability of the organisation (Richter, 2012). Marketing mix further divided
into product, price, place and promotion. Thomas Cook needs to follow below explained all the
factors for increasing its profitability and number of passengers.
 Product: For travel and tourism company, the product is destination. Customers sees
destination as their product in which they need accommodation, facility and entertainment at
the destination and it all combined as the tourism products. Thomas Cook made product for
the customers to attract them, to give facilities and provide with good transportation to meet
the requirements of the customers. In product mix, there are accumulation of components of
product mix if there is any one of components is absence then product mix is incomplete. In
context to this, the company has to meet the needs and requirements of the consumers to
meet their expectations about their tourism product (Wilson and Ali, 2014).
 Price: It is a complex process for the organisation to decide its price for their tour packages
and for that they have to apply pricing strategy. The tourism package of Thomas Cook
include prices of Air travel, Bus, Railways, Hotels etc. and also its tax rates. Geographic
location and seasonality are also plays important role in the pricing strategy to match their
required price for the tour packages. In context to this, the company has to made strategy
according to the customers requirements such as in initial packages of Egypt and Morocco,
the organization have to provide tour packages with low rate so number of customers should
get attracted and buy their tourist products.
 Place: There should be differentiated distribution channel for the tourism marketing.
Thomas Cook acts as a wholesaler as well as retailer for the customers. To develop a tourist
centre, there should be good infrastructure facilities, , transportation and communication
etc. and it also seen that the customers are attracting towards natural and historical places so
that Egypt and Morocco tour can be a good opportunities for the company. Latest mode for
the organization is to attract its customer is through Internet from which the consumer can
booked their tickets and do their payment online.
P3.2 The importance of service sector mix elements to the travel sector
The service mix is the form of extended marketing mix, here, the service mix includes price,
product, place, promotion, people, process and physical evidence (Longbottom and Hilton, 2011). If
it whole groups together then it gives optimum service delivery to the customers and it is also
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known as 7P's of the marketing mix. For any tourism industry, its product is its destination which
should be of attractive prices and with comfort level whereas place can be anywhere located in the
centre of the city but nowadays booking is done on the Internet also. The promotion of the services
can be done through various mass media and social media like advertising, Facebook or online
websites. Pricing of the product is the main aspect of the marketing so the company should done the
pricing according to the customers needs and requirements so to attract more customers (Bhasin,
2011). People is the strength of the company and Thomas Cook should appoint skilled workforce.
Process of the company should also be flexible and company should meet the requirements of the
customers needs. Physical Evidence is about the after service of the company and here organisation
is also taking care of it through taking feedback, having well dressed staff etc.
It is important for the Thomas Cook to look after three factors: People, Process and Physical
evidence. These are as follows: People: It includes customers, employees, agents, staff member of the restaurant, etc. It is
important for the Thomas Cook to satisfy all the people. Training is provided by the
organisation to the workers for offering best services without any delay to the customers.
Along with this, firm hires talented agents and guides with effective communication skills
for making the trip of passengers entertaining. Process: Thomas Cook includes the process of handling complaints of visitors in the trip of
Morocco and Egypt. This helps in making the services more effective.
 Physical Evidence: Attractive places are selected by the Thomas Cook in its trip to Morocco
and Egypt. It provides attractive infrastructure, decorative rooms, healthy food with
creativity, etc to the customers for increasing their satisfaction level.
P3.3 the concept of the total tourism product to an individual tourism business
The total tourism product is a combination of components and elements which are combined
together to form a tourist product for the consumers to satisfy its needs and requirements. It plays a
key role in economic development of the organization and to get benefited by the customers the
company should provides industrial opportunities like accommodation, transportation, security,
local connectivity etc. Furthermore, it also covers operational activities like in context to fulfil the
requirements of the tour packages (Lee and et. al., 2012). The company main aim is to attract large
numbers of customers by giving economic rate tour packages and also controlling the investment
made by the company in form of getting more benefits for the organization. It is necessary for
Thomas Cook to create total tour product for effective development opportunities in Egypt and
Morocco. It will helps in to expand their market share and to built their brand image and its value in
the market according to the customers' needs.
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