Travel and Tourism Marketing: Strategic Planning at Thomas Cook Group

This report provides an in-depth analysis of marketing concepts and principles within the travel and tourism sector, using Thomas Cook Group as a primary case study. It discusses core marketing concepts such as consumer needs, value proposition, and customer retention, and assesses the impact of the marketing environment, including micro and macro factors, on Thomas Cook's operations in destinations like Morocco and Egypt. The report also examines factors influencing consumer motivation and demand, the importance of strategic marketing planning, and the role of the marketing mix, including product, price, place, and service elements. Furthermore, it evaluates the integrated nature of the promotional mix and proposes an integrated campaign for Thomas Cook's summer 2016 holidays. The analysis incorporates various marketing concepts like production, product, selling, and societal concepts, emphasizing the importance of customer satisfaction and relationship marketing. Desklib provides access to similar solved assignments and study tools for students.

TRAVEL AND TOURISM MANAGEMENT

TABLE OF CONTENTS
Introduction .........................................................................................................................................3
LO 1 Understand the concepts and principles of marketing in the travel and tourism sector..............3
1.1 Discuss the core concepts of marketing for the travel and tourism sector.................................3
1.2 Assess the impact of the marketing environment on individual travel and tourism businesses
within Thomas Cook Group and tourist destinations with reference to Morocco and Egypt..........4
1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism
sector.................................................................................................................................................5
1.4 Analyze the principle of market segmentation and its uses in marketing planning at Thomas
Cook.................................................................................................................................................6
LO 2 Understand the role of marketing as a management tool in travel and tourism..........................6
2.1 Analyze the importance of strategic marketing planning for Thomas Cook..............................6
2.2 Discuss the relevance of marketing research and market information to managers in the travel
and tourism sector.............................................................................................................................7
2.3 Assess the influence of marketing on society.............................................................................7
LO 3 To understand the role of the marketing mix in the travel and tourism sector ...........................8
3.1 Discuss issues in the product, price and place elements of the marketing mix..........................8
3.2 Assess the importance of services sector mix elements to the travel sector...............................8
3.3 Apply the concept of the Total Tourism Product to an individual tourism business..................9
LO 4 Be able to use the promotional mix in travel and tourism .........................................................9
4.1 Assess the integrated nature and role of the promotional mix....................................................9
4.2 Plan and Justify an integrated campaign for Thomas Cook summer 2016 holidays to Morocco
and Egypt........................................................................................................................................10
Conclusion .........................................................................................................................................10
References...........................................................................................................................................11

INTRODUCTION
Marketing is also a crucial activity in travel and tourism sector because it allows the
business entity to promote the products and services properly at different market places. Thomas
Cook has been emphasizing on varied marketing campaigns so as to promote new and attractive
holiday packages. In the present case, Thomas Cook is launching its summer 2016 holidays to
Morocco and Egypt and in order to promote the holiday package, Thomas Cook is organizing
different campaigns and promotional events (Alegre and Cladera, 2009). Thus, in such respect,
researcher has discussed relevance and importance of market research to Thomas cook Group.
Furthermore, researcher has also stated the impact and influence of marketing practices on society
and along with that, the concept of total tourism product is also stated. Similarly, the core concept of
marketing for travel and tourism sector is stated along with the impact of marketing environment on
individual business entity. Lastly, researcher has assessed the integrated nature and role of the
promotional mix in marketing processes of Thomas Cook.
LO 1 UNDERSTAND THE CONCEPTS AND PRINCIPLES OF MARKETING IN THE
TRAVEL AND TOURISM SECTOR
1.1 Discuss the core concepts of marketing for the travel and tourism sector
Marketing is the process where in Thomas Cook promotes its products and services to the
consumer market segment as per the needs and demands of end users. It is essential for the business
unit to develop an understanding of various marketing concepts. This in turn helps in supporting
business operations for long run.
Consumers’ needs and wants: The organization needs to identify consumers’ needs and
wants. As the present case, demands of customers are related to better travel and tourism services.
The concept of marketing emphasizes on identification of consumers’ needs. This in turn helps in
development of products and services according to the customers’ expectations. Thomas cook
should conduct research so as to identify consumers’ preferences (Crooks and et.al, 2011). This in
turn supports the organization’s efforts to devise customized services.
High value proposition: The concept of marketing focuses on delivery of high value
proposition to its customers. The business units should emphasize on creation of entire value
proposition for its customers. The concept of marketing believes in producing products that are
required by consumers through combination of tangible and intangible products.
Customer retention: One of the important concepts of marketing is consumer retention. The
business unit can adopt effective marketing strategies so as to retain customers for long run. It can
be therefore said that the marketing principles help in efficient retention of customers (Gooroochurn
and Sugiyarto, 2005).
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Relationship marketing: The marketing aspects also focus on maintaining long-term and
healthy relationship with its customers. Thomas cook can sent e-mails, organize public events so as
to enter into sound relationship with its customers.
According to “American Marketing Association”, marketing is the activity that includes
several processes for promoting the products and services properly at market place. Through
marketing, customers can get information about all the products they want to have.
Concept of marketing:
 Production concept – Consumers prefer products that are widely available and inexpensive
and the concept includes different operations of the organization other than any other
concept. In such respect, Thomas Cook should include different aspects that are essential for
travel and tourism development.
 Product concept – Product concept states that consumers prefer to have quality products so
as to meet their needs and demands. This also aids the business entities to enhance the level
of customer loyalty. Hence, Thomas Cook should emphasize on producing those packages
that are beneficial for the customers.
 Selling concept – Selling and promotional strategies of the business should be innovative
and useful so that customers can get the product as required. Thomas Cook should
emphasize on different sources so as to sell the packages.
 Marketing concept – As per marketing concept, valuable goods and services should be
delivered to the customers so that brand image of the company can be developed. This is
also useful in terms of creating competitive edge over the rivalries. Online marketing
method can be applied by Thomas Cook under this concept. Societal concept – While fulfilling the needs and demands of clients, it is essential for
Thomas Cook Group to consider social values and norms. Thomas Cook has to consider
values and beliefs of clients so that customers can promote it on higher extent.
Customer Satisfaction
Customer Satisfaction is the aspect that shows that company is able to meet all the needs of
customers. It is also related to repeat purchase where in customer shows loyalty towards the
company products and services.
1.2 Assess the impact of the marketing environment on individual travel and tourism businesses
within Thomas Cook Group and tourist destinations with reference to Morocco and Egypt
Thomas Cook is a prominent player in travel and tourism sector who has created wide
presence across the globe. The marketing environment at different tourist destinations needs to be
analyzed. An in-depth analysis of micro and macro environmental factors for Morocco and Egypt is
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presented underneath (Hankinson, 2005).
Micro environmental factors:
 Suppliers: Thomas cook provides a complete solution as a travel agent to its customers.
The suppliers at Morocco provide a tourism package to Thomas cook within hospitality
sector. The tourism package devised by Thomas Cook within Egypt and Morocco indicates
that suppliers are highly supportive in nature (Gretzel and Yoo, 2008).
 Competitors: Thomas cook tends to face limited competition due to availability of limited
number of firms. However, in order to face challenges offered by distinct set of market
situations the business unit needs to evaluate competitors’ strategy. It is through
implementation of competitive advantage that the organization is able to maintain its
position in present world.
Macro environment factors:
The business unit needs to evaluate macro-environmental factors so as to formulate effective
strategies for the success. It is through PESTEL analysis that Macro environmental factors related to
the city can be evaluated.
 Political: The political conditions within Morocco and Egypt turn up to be highly secure in
nature. The stable political condition tends to support economic growth and development. It
can be therefore said that the political conditions within Egypt and Morocco are highly
supportive in nature for Thomas cook to achieve economic growth (Rodriguez, 2013).
 Economical: It is essential for the business unit to operate in an economy where growth is
happening at rapid pace. High and stable economic growth is considered to be supportive
factor for Thomas cook in Egypt and Morocco.
 Social: Egypt and Morocco constitute of varied range of cultural patterns. Thomas cook can
provide distinct set of cultural experiences to tourists. The existence of variety of culture is
considered to be positive factor for supporting operations at Thomas cook (Destination
marketing, 2015).
 Technological: In present era technology is developing at rapid pace. Egypt and Morocco
are no exceptions to present technological developments. It can be therefore said that the far
off countries are easily connected to each other in present world. This in turn helps in
supporting growth in tourism industry.
 Legal: The legal regulations within different countries are expected to highly impact travel
and tourism sector. The lenient legal regulations help in supporting operations within
business unit. Thomas cook as a leading player in travel and tourism sector is expected to
achieve high level of growth due to linnet legal policies. Thomas Cook should emphasize on
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legal policies and framework so that while developing new packages, issues may not arise.
Legal concerns should be clearly discussed in the organization.
 Environmental: The environmental factors in Egypt and Morocco are highly positive in
nature. The tourists tend to get attracted due to positive environmental conditions which
support growth of Thomas Cook (Evans, Stonehouse and Campbell, 2012). In contemporary
scenario, issues related to environment has been increasing; therefore it is vital for Thomas
Cook to emphasize on CSR and other activities for reflecting concern towards environment
protection.
1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector
The management of Thomas Cook considers various while developing tour packages for
Morocco or Egypt. In this context, different factors associated with tourist destination are explained
below that affect the consumers’ motivation and demand of tourism products and services: Tourist destination: Morocco and Egypt are situated in the westernmost and easternmost
corners of North Africa. These two Muslim nations have recorded significant growth in
travel and tourism business. This is because Morocco and Egypt have impressed different
tourists from all over the world through ancient architecture and colourful culture
(Gooroochurn and Sugiyarto, 2005). Tours attraction: It is considered as most important element that influences decisions of an
individual regarding selection of a best place to visit. In this context, it is evaluated that
Morocco is identified as most important place to examine and feel Islamic architecture. In
the context, Morocco's imperial cities of Rabat, Meknes, Fés and Marrakech have been
ranked as the country's foremost attractions from different tour operators. In addition to that
The old town of Meknes has been placed as UNESCO World Heritage Site. On the otehr
hand, Egypt is identified as one of most popular destination of world that is also termed as
master peace of ancient engineering that includes Sphinx and pyramids that attracts several
individuals who want to explore historical things. Hospitality services: Both countries are offering wide range of hospitality services based on
Islamic culture and traditions. In addition to that various multinational hotel groups are also
offering all kind of food cuisine as per the interest of tourist that plays important in selection
of best place for visiting (Garín-Muñoz and Pérez-Amaral, 2011). Connectivity: Several airline companies and tour operators are offering wide range of
transportation services from outside the country to Morocco and Egypt so as visitors from
all over the world are to reach these destinations without any difficulty. It plays important to
attract visitors from all over the world.
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 Marketing activities: Marketing activities of Thomas Cook are essential and effective;
therefore this leads the clients to change their preference for travel and tourism services. Cultural factors: Cultural factors motivates the consumers and this increases their interest in
visiting different countries and tourist destinations. Moreover, clients coming from oversees
emphasize on cultural values and historical aspects; thus this encourages them more to get
more packages for diverse countries.
 Purchasing power of consumers: Demand for travel and tourism increases when consumers
have the ability to purchase the packages. Hence, prior including new service provision,
Thomas Cook has to make sure that packages and services are concerned with purchasing
ability of employees.
1.4 Analyze the principle of market segmentation and its uses in marketing planning at Thomas
Cook
Segmentation is the process of dividing the market place into different parts or segments on
the basis of growth potential of the market place. Hence, it can be said that segmentation is the
concept under which Thomas Cook decides appropriate market where in business should sell its
products and services.
For selection of target visitors or tourists, the management of Thomas Cook are able to
develop an appropriate plan to attract consumers for tourist destination of Morocco and Egypt. In
this context, approach of market segmentation plays important role. Geographic Segmentation: It is an important criteria of market segmentation which is
carried out as per the location, nation and religion. For the tourist of destination of Morocco
and Egypt, Thomas Cook is focusing on people related to Islamic religion so as they can
assess best experience of Islamic culture and traditions (Isa and Ramli, 2014). Demographic Segmentation: The factors of this segmentation can be termed as age, business
and sexuality. In the context of present investigation, managers are focusing on young age
people who are interested in history and culture.
 Psychographic segmentation: It is done by considering lifestyle of people such as
researcher, architecture and students who want to learn of ancient architecture and history.
Market segmentation is termed as most basic criteria of strategic marketing planning that
plays important role in promotion tour package of Thomas Cook along with tourist destination. On
the basis of market segmentation, company is focusing on the young age researcher and architecture
who have special interest in historical traditions and arts so as they can increase their learning of
about different aspect Islamic culture traditions (Hassan and Craft, 2012). Furthermore, this element
also supports management of Thomas Cook and local authorities of both destination for developing
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appropriate marketing strategies and selection of best promotional tools to influence interest of
visitors from all over the world.
LO 2 UNDERSTAND THE ROLE OF MARKETING AS A MANAGEMENT TOOL IN
TRAVEL AND TOURISM
2.1 Analyze the importance of strategic marketing planning for Thomas Cook
In general, strategic marketing planning can be defined as the way through which company
develops, plan and implement the smart and effective marketing strategy. Further, it importance can
be understood effectively by understanding its process. However, its process consist of three main
phases which are discussed in the below section: Identifying segmentation criteria: First phase is all about segmentation techniques through
the means of which target market is divided into different parts. Market scenario: On the basis of which in second stage marketing planning profile of
different parts of segmented market is prepared. By the means of these phases managers are
able to analyze the segmented market and as per the nature of product, best suitable
segmented market is selected in which firm can focus on attaining the growth of business at
quick pace (Cook and Marqua, 2014).
 Strategy formulation: Lastly, in the final stage of the process, on the basis of market
segmentation, strategy is formed in which importance of market segmentation comes into
existence. However, having no inputs or valuable information, the market strategy of the
firm could be developed in wrong way which could lead to generate adverse results and
Thomas Cook may face huge monetary and non-monetary loss.
Therefore, with the help of market segmentation, managers of Thomas Cook gets the idea
about the target market so that they can accordingly develops the strategy to market products and
services in effective and efficient manner (Evans, Stonehouse and Campbell, 2012).
2.2 Discuss the relevance of marketing research and market information to managers in the travel
and tourism sector
Market research is the process in which Thomas Cook emphasizes on terms and conditions
of market along with the level of competition. Market research is also vital in terms of analyzing
needs and desires of clients; thus according to that companies can bring requisite products and
services at market place.
According to the present corporate world, managers make strategic decisions on the basis of
market research and information. It is the duty of top level management of Thomas Cook to conduct
market research on constant basis so that they can easily understand the changing needs and wants
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of market and make sure that the strategies and tactics employed are addressing the course of
business in positive way. Further, with the market research, managers of Thomas Cook comes to
know about the behaviour of consumer (Hankinson, 2005). With changing trends and environment
consumer buying behaviour also changes thus, it is important for the cited firm to carry out market
research on routine basis so that they can bring modifications within the services offered. Therefore,
it can be said market research is important for the managers in travel and tourism sector. Further,
with the help of this, it helps the management of Thomas Cook to compete in such a competitive
market and retain its position for long term.
Strategic marketing is essential for Thomas Cook because that could allow the business
entity to develop essential business and marketing strategies. Strategic marketing seems to be
effective for the business entity since that enhances the opportunities of growth and success.
2.3 Assess the influence of marketing on society
There are several ways through the means of which marketing influences the society.
However, thinking and life style of people are changed due to advertisements of the products. In
this regard, it is important for the management of the companies to develop or design suitable and
reliable advertisements which does not hurt the social aspects of the people as well as company can
create awareness about its products in effective and efficient manner (Rodriguez, 2013).
At times, marketing creates negative image (at the time when it fails to meet the needs and
desires of customers and also, negative impression is developed among customers regarding
business products and services) within the minds of the target audience which directly leads the
failure of the company. Nowadays, to promote the products, companies undertakes attractive ways
which at time affects the children’s negatively. In advertisements a very high lifestyle is shown and
people try to imitate lifestyle in their personal life. Even they have little money they imitate a
lifestyle shown in the advertisement. Therefore, it can be understood that marketing create negative
image within the minds of people living in the society. But marketing is integral part for the
businesses because it helps in creating awareness about the products and services that available for
the consumers (Hassan and Craft, 2012).
However, on the basis of entire discussion, it can be concluded that marketing activities have
positive impact on society because that encourages and drives the customers to purchase the
products. Similarly, Thomas Cook has been promoting all the packages appropriately at market
place with marketing strategies which makes people aware about new packages and services.
Marketing activities plays crucial role in changing the decisions of customers; hence as a result,
demand for service enhances.
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LO 3 TO UNDERSTAND THE ROLE OF THE MARKETING MIX IN THE TRAVEL AND
TOURISM SECTOR
3.1 Discuss issues in the product, price and place elements of the marketing mix
Tourist industry is growing with the high speed and thereby offer large number of
destination or tour packages to their customers. In this, marketing mix plays a vital role in achieving
success in the dynamic business arena. There are several issues which are related to marketing mix
place adverse effects upon the growth and success of an organization. Thus, Thomas Cook needs to
be taken into consideration the following issues while framing the marketing fix are as follows: Product: It is the most important element of marketing mix which plays a vital role in
satisfying the needs and wants of the customers. Nevertheless, different customers have
different needs and desires which creates difficulty in front of the marketer in making
suitable product in terms of holiday packages (Hassan and Craft, 2012). Price: Usually, customers are very price sensitive in nature as well as compare the price the
product with the quality and feature. Thus, price aspect also impose problem in front of
Thomas Cook in relation to setting the appropriate price for the product or services. Place: Thomas Cook make use of email and other forms of electronic communication to
provide information about the tour packages to their customers.
 Promotion: Thomas Cook undertakes social media marketing to promote the tour packages
around the globe (Gooroochurn and Sugiyarto, 2005).
Branding is another issue that may generate at the time when Thomas Cook fails to develop
inappropriate strategies for brand promotion. Thus, while selecting branding policy, it is vital for
Thomas Cook to consider customer’s desires. While promoting the products and services, Thomas
Cook should emphasize on Ansoff matrix because it has numerous strategies respectively. Product
Life Cycle is such a concept in which Thomas Cook introduces new products and services for the
customers so as to survive for longer span at the market place.
3.2 Assess the importance of services sector mix elements to the travel sector
The service sector consist of several beneficial elements that are important for the travel and
tourism sector. The marketing of the services have inter-related relation with the different elements
of tourism sector: People: They are considered as the important aspects of Thomas Cook. However, currently
market is very intensive because of the people and their varied expectations; however then
also Thomas Cook has been paying huge attention towards employee management.
Therefore, it is important for the management of Thomas Cook to assess the requirement of
the people and accordingly develop the services for attracting large number of audience.
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 Physical evidence: In respect to Thomas Cook, services offered like packages are considered
to be intangible in nature. Therefore, it is important for Thomas Cook to showcase all the
essential information that clients is required so that better perception towards the destination
can be developed (Crooks and et.al, 2011). Generally this element represents the
environment in which the client is offered with the packages. Therefore, cited firm should
ensure that the packages they offer are attractive as well as according to the needs and wants
of customers.
 Process: In the selected organization, tactics and strategies play crucial role in order to make
the customers convinced so that they can be retained for long periods. In this regard, proper
process is being followed at Thomas Cook which consist of effective planning, organising
and controlling of different activities so that quality can be offered to the target audience (Isa
and Ramli, 2014).
3.3 Apply the concept of the Total Tourism Product to an individual tourism business
Looking at the present condition of UK, tourism sector can be defined as the highly growing
sector in terms of market share as well as employment opportunities. It is the combinations of
different products which are offered on the basis of customer expectations and requirements. The
concept of total tourism is that it ensures to meet each and every components of customer
expectations and ensure highest level of satisfaction so that they can be retained for long term
periods (Hankinson, 2005). Considering the demand, Thomas Cook will offer package in summer
2016 from Morocco and Egypt so as to meet the expectations of customers in the best possible
manner. Further, they are included in the form of accommodation services, transportation services
and other services.
LO 4 BE ABLE TO USE THE PROMOTIONAL MIX IN TRAVEL AND TOURISM
4.1 Assess the integrated nature and role of the promotional mix
Promotional mix involves certain elements that acts as an aid in making promotion product
and services in an effective manner. This is in order to aware people regarding products and
services. This attracts the personnel to a greater extent. The several promotional mix includes: Advertising: Under this advertisement is offered by the organization through several social
media sites and newspaper. Such is with the aim to provide information in relation to tour
packages to customers. Such highly affects the sales of the business to a greater extent. The
role of advertisement can be greatly viewed towards promotion of business. Further it acts
as an aid in developing unique image of brand in the market. This ensures satisfaction
among target market in an effective manner (Cook and Marqua, 2014).
Advantages:
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1. It encourages customers to get the product in more quantity
2. It helps business entities to capture larger market share
3. It is vital for making the customers aware about products and services
Disadvantages:
1. Advertisement sometimes influences customers negatively
2. Most of the small scale industries formulates inappropriate strategies for promotion
3. It creates competition among internal work processes. Personal selling: Thomas Cook focuses on personal selling of tour plans in order to attract
numerous customers through development of personal relationship. Through this business
can determine needs and preferences of buyers.
Advantages:
 Convey more information
 Changes mindset of customers Helps in acquiring feedback from clients
Disadvantages:
 Limited reach
 Enhances training costs
 Expensive process
4.2 Plan and Justify an integrated campaign for Thomas Cook summer 2016 holidays to Morocco
and Egypt
 Objective: Integrated promotional campaign has been developed with the aim to promote
the summer 2016 holidays in Egypt and Morocco.
 Strategy to achieve the target: Further, after making the evaluation of the target market,
Thomas Cook is required to undertake effective channel of advertising in order to make best
relationship with consumers and attract target audience (Alegre and Cladera, 2009). Through
this, products can be promoted effectively at market place. Moreover, after developing the
integrated plan it is essential for business to look upon the promotional campaign so that
tourist’s requirements can be fulfilled.
 Promotional channel: It is important that message possess suitable format so that greater
integrity is ensured. At the end, team work is required in order to develop integration among
marketing campaign so that best results can be attained (Rodriguez, 2013). Through carrying
out work in coordination it helps in developing strengths and overcome weaknesses so that
best results can be attained.
 Budget: Budget for the present campaign is 250 pounds where in all the activities should be
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