Analyzing Marketing Strategies and Impacts in Tourism

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In today's highly competitive tourism industry, strategic marketing plays a crucial role in enhancing customer experiences and differentiating brands such as Thomas Cook. This analysis examines how effective use of marketing strategies can lead to improved travel experiences by focusing on brand differentiation, leveraging digital platforms for customer engagement, and ensuring consumer satisfaction through tailored services. Key areas include understanding the impact of product-country images, the role of destination marketing organizations (DMOs), and integrating information technology in tourism. The study also considers how strategic management practices within the marketing function can influence consumer behavior at various pyramid levels and contribute to overall organizational success.
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Running head: MARKETING IN TRAVEL AND TOURISM
Marketing in Travel and tourism
Name of the student:
Name of the University:
Author note:
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1MARKETING IN TRAVEL AND TOURISM
Abstract:
The report mentions the significance of strategic marketing planning for Thomas Cook for
Morocco and Egypt package. It mentions relevance of marketing research and market
information to managers in the travel and tourism sector. Marketing involves identification of the
needs and wants of the customers and the changes in their tastes and preferences along with the
identification of the marketing strategies used by the competitors. This enables the organizations
to develop strategies that are superior to the competitors and helps the organizations in satisfying
the needs and wants of the society in a better manner. The report also mentions the influence of
marketing on society.
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2MARKETING IN TRAVEL AND TOURISM
Table of Contents
2.0 Introduction:..............................................................................................................................3
2.1 Significance of strategic marketing planning for Thomas Cook for Morocco and Egypt.........3
2.2 Relevance of marketing research and market information to managers in the travel and
tourism sector:...............................................................................................................................10
2.3 Influence of marketing on society:..........................................................................................12
2.4 Conclusion:..............................................................................................................................14
References:....................................................................................................................................15
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3MARKETING IN TRAVEL AND TOURISM
Assignment 2
2.0 Introduction:
Travel and tourism is an important economic activity in a majority of the countries across
the globe. Travel and tourism industry has a significant impact on the growth and development
of a country as it has direct, indirect and induced impacts on the countries. Travel and tourism
has become one of the fastest growing industries in United Kingdom as a result of the changes
and the demands of the people along with the changes in their priorities. Travel and tourism has
contributed significantly in the economic development of the country (Xiang, Magnini &
Fesenmaier, 2015). The travel and tourism industry in UK comprises of several organizations
that offer travel and tourism packages to the customers. There is a strong competition among the
travel and tourism companies in UK due to which these organizations extensively use marketing
techniques for diverting the focus of the customers towards their organization (Becker, 2016).
Thomas Cook is a British travel and tourism organization, which was established in the
year 2007 ("Thomas Cook | Package Holidays, Hotels and Flights, Cheap holidays", 2018). The
report emphasizes upon marketing strategies of the organization, while emphasizing upon the
holiday package launched by Thomas Cook that comprises of a trip to Egypt and Morocco. The
report shall analyze the importance of strategic management planning for Thomas Cook and
shall examine the importance of marketing research to the managers in Thomas Cook. The report
shall also identify the impact of marketing on the society.
2.1 Significance of strategic marketing planning for Thomas Cook for Morocco and Egypt
package:
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4MARKETING IN TRAVEL AND TOURISM
Strategic marketing planning refers to the management activity, which enables the
organizations to set goals, emphasize upon resources, improve operations and assure that the
stakeholders work towards the achievement of the common goals of the organization (West, Ford
& Ibrahim, 2015). Strategic management plan enables the organizational managers to ascertain
the most appropriate goal for the organization and the manner in which the goals shall be
achieved by the organization. The strategy comprises of a major goal, which is further divided
into several segments. Strategic marketing plan helps the organizations in get rid of the
organizational activities, which are of no use and waste the time and money of the organization
(Schegg, & Stangl, 2017).
Strategic marketing enables the organizations to emphasize upon the important
organizational activities by designing a proper framework for the organization, which helps the
organization in its functions such as making the customer service more effective, helping in
preparing appropriate budget plan for the organization and several other functions (Payne &
Frow, 2014). Strategic planning enables the organizational managers to have a greater insight
into target market and the needs and wants of the customers. With the increase in the level of
competition, the organizations nowadays emphasize much upon the formulation of marketing
plans, which help them differentiate their products and services from the products and services of
the competitors. Strategic plan not only helps an organization to understand the market in a better
manner but also helps the organizations in improving their overall performance (Proctor, 2014).
Strategic marketing planning shall help Thomas Cook in refining its value proposition.
The strategic plan shall enable the organization to determine the purpose or goal that it wants to
achieve. It shall also help Thomas Cook in distinguishing itself with the other rival organizations.
Strategic plan shall enable the company to refine and emphasize upon its unique value
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proposition. Thomas Cook’s unique value proposition lies in its capacity to provide tour
packages at lower costs than its competitors (Armstrong et al., 2015). Therefore, the company
can emphasize further upon its cost advantage in order to attract more customers.
An appropriate strategic marketing plan shall help Thomas Cook to determine its
target customers along with their requirements. Nowadays, a majority of the online business
activities are based upon travel and tourism. A large number of customers search for tour and
travel packages over the internet therefore; Thomas Cook must emphasize upon improving its
online operations in order to attract the customers, who are entirely dependent upon the online
travel sites for their tour requirements (Papadopoulos & Heslop, 2014).
Strategic marketing plan shall help Thomas Cook to reduce its expenses. The
organization has allotted 20% of its entire operating budget on its marketing activities (Babin &
Zikmund, 2015). Strategic marketing plan shall ensure that the organization allocates its
resources appropriately so that the organization is able to reduce its expenses and improve the
effectiveness of its marketing activities.
Appropriate strategic marketing plan shall help Thomas Cook to determine several
opportunities. Strategic plan shall help the company to determine several opportunities that are
available in the travel and tourism industry (Chernev, 2014).
SWOT analysis:
SWOT analysis refers to the planned analysis wherein the strengths, weaknesses,
opportunities and threats of an organization are measured and analyzed. It is necessary to
conduct a SWOT analysis before formulating the strategy for an organization. The following is
the SWOT analysis of Thomas Cook, which shall help in understanding the strengths and
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weaknesses of the organization in order to explore the opportunities and safeguard the company
from the possible threats:
Strengths
Thomas Cook is one of the best tour
and travel companies of UK
The company offers economical and
accessible tour packages to the
customers
The company has its global presence
and offers services such as flight
booking, hotel booking and package
holidays in several countries
The company provides employment to
more than 20000 people ("Thomas
Cook | Package Holidays, Hotels and
Flights, Cheap holidays", 2018)
Thomas Cook has a strong brand image
and goodwill and has established its
strong presence over media.
Weaknesses
Intense competition in the tourism
industry has resulted in limited brand
presence and market share of Thomas
Cook
The company has long- term debts,
which has become a burden on the
company
Opportunities
The travel and tourism sector is
witnessing high growth and is expected
to grow in future, which shall provide
Threats
The major threat to the company is the
decline in the profitability in the airline
business
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7MARKETING IN TRAVEL AND TOURISM
an opportunity to the company to grow
further and expand its business
operations (Hollensen, 2015).
Presence of untapped international
markets shall provide an opportunity to
the company to further explore other
regions.
Increase in the digitalization shall have
positive impacts on the company as
increase in the use of internet shall help
the company to penetrate the global
markets.
The uncertainties in terms of changes in
Government laws and regulations shall
adversely affect the organization
(Baker, 2014)
The emergence of a large number of
tour and travel companies that offer
lower cost services to the customers are
a potential threat to Thomas Cook.
Analysis: Thomas Cook is one of the leading travel and Tourism Company in the UK that has
served the UK population over the years successfully. The company develops tourism packages
for each season in order to attract the customers. In order make the summer holiday package to
Morocco and Egypt successful, appropriate strategic planning by Thomas Cook is essential.
Sustaining the competitive host and home country market highlights the strength of Thomas
Cook.
Strength: Over the years, Thomas Cook has been ranked as one of the best Travel and Tourism
Company in the UK. The company has gained the acclamation of being the best due to its
economic and accessible tour packages for the customers from all financial backgrounds.
Keeping in mind the financial standard of the customers, the company has tour packages for all
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the customers. This has provided an opportunity for Thomas Cook to build a large customer base
with relevant tourism products for all. In addition to the UK market, Thomas Cook has branches
around the world thereby, making a strong global presence. The presence at the global platform
allows Thomas Cook to provide service around the world in terms of flight booking, hotel
booking and holiday packages in most of the countries. Such huge global recognition and
presence has allowed the company to employ more than 20,000 people that serves the customers.
Effective service, excellent customer service, unique and accessible travel packages has helped
Thomas Cook to build a strong brand image in the market thereby, being one of the strongest in
the travel and tourism sector.
Weakness: A rise in the number of travel and tourism has been seen over the years. This has led
to fierce competition in the market. In addition to, the increased number of travel and tourism
companies in the market has limited the brand presence of and market share of Thomas Cook in
the UK market. Increased number of travel and Tourism Company has led to market saturation
thereby, making it difficult to attract customers. Thomas Cook has long-term debts that makes
business an issue. The debts that Thomas Cook has make it difficult for them to run business in
the UK market thereby, hampering their strategic goals.
Opportunities: The potential strengths of the company have led to opportunities for the
company. In the past years, the travel and tourism industry has encountered an unexpected
growth. As a result, rise in the travel and tourism industry is expected in the future as well. The
future growth prediction of the travel and tourism industry provides suitable opportunity for
Thomas Cook to grow and expand their business operations. A change has been noticed in the
taste of the customers regarding the places they want to visit. For example, customers prefer
adventurous travel packages along with packages that allow them to explore the natural
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landscapes. This provides an opportunity for Thomas Cook to explore the untapped international
markets thereby, allowing them to explore the business further. In addition to, the incorporation
of technology and digitalization will provide an opportunity for Thomas Cook to penetrate global
markets and reach out to customers more effectively.
Threats: Along with providing accommodation and other travel facilities, Thomas Cook also
provides flight-booking facilities. However, decline in the profitability in the airline industry is
one of major threats for Thomas Cook. The past years have seen a rapid change in the
government rules and regulations. Thus, uncertainties in terms of changes in government laws
and regulations shall adversely affect Thomas Cook. In addition to, emergence of large number
of tour and travel companies offering low cost services to the customers is also a potential threat
for the company.
Thus, SWOT analysis allowed Thomas Cook to investigate the internal environment of
the company that helped in strategic planning while developing summer holidays 2018 for
Morocco and Egypt thereby, fulfilling the aim and objectives successfully.
TALC (Tourist area life cycle):
Tourist area life cycle depicts the destinations that tend to create confusion for the tourists
or customers. The tourism companies refrain from disclosing the entire detail about a particular
destination however, it is necessary to mention the details to the customers (Woo, Kim & Uysal,
2015). Tourist area life cycle is a model that mentions all the possible details regarding the
destinations, hotels and the other popular site seeing areas, which enables a marketing planner to
research accordingly and prepare a report (Uysal et al., 2016). Thomas Cook uses the tourist area
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life cycle model in order to plan its marketing process at different stages and maximize the
development of the tourist destinations according to the circumstances.
Figure 1: Tourist Area Life Cycle (TALC)
(Source: Uysal et al., 2016)
The above figure suggests the tourist area life cycle for the summer holiday 2018 package
for Morocco and Egypt. According to the model, developing summer holiday package for
Morocco and Egypt will attract customers, as this is new package offered by Thomas Cook for
the customers. Both Morocco and Egypt have heritages that help in engaging the tourists visiting
the places. In order to promote the place, the locals of Morocco and Egypt provide additional
facilities thereby, marking the recognition of tourist season. As a result, involving the locals
provides an opportunity to promote local cultures to the tourists, thereby, making an apparent
impact. Increased number of visitors marks the development stage of TALC stage thereby,
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equaling or exceeding the local population. The development stage is the most important, as this
will improve the quality of life for the locals and residents of Morocco and Egypt along with
ensuring economic improvement. The tourist will develop natural and cultural attractions. After
developing the summer holiday offer for Morocco and Egypt for 2018, stagnation stage is
marked by increased tourism and repeat visitors thereby, reaching or exceeding the expectations
of the destination. Declination stage is identified by minimization of market share of the tourist
destination.
Boston matrix:
Boston matrix is an analytical tool that is used by the organizations to allocate their
resources appropriately for marketing their brand, implementing strategic management and
conducting a portfolio analysis. It analyzes the products and identifies the priorities for investing
and growing opportunities. It enables the organizations to form new strategies while considering
the present situation and past trend. Thomas Cook uses Boston Matrix for analyzing the several
tour and travel packages and finally choosing the most appropriate packages to be offered to the
customers (Medlik, 2016).
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