Marketing in Travel and Tourism: Analysis of Thomson Holidays

This report delves into the core concepts of marketing within the travel and tourism industry, specifically examining the case of Thomson Holidays and the destination of Edinburgh. It covers essential aspects such as the marketing environment, consumer behavior, and market segmentation principl...Read More

MARKETING IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Core concept of marketing for the travel and tourism business.......................................3
1.2 Impact of marketing environment on business and destination.......................................4
1.3 Factor affecting consumer motivation and demand.........................................................4
1.4 Principles of market segmentation...................................................................................5
TASK 2............................................................................................................................................6
2.1 Importance of strategic marketing planning.....................................................................6
2.2 Relevance of marketing research and market information...............................................6
2.3 Impact of marketing on society........................................................................................7
TASK 3............................................................................................................................................8
3.1 Identifying the issues involved in the different elements of marketing mix....................8
3.2 Assessing the importance of service sector mix element for Thomson Holidays............9
3.3 Discussing and applying the concept of total tourism product.........................................9
TASK 4..........................................................................................................................................10
4.1 Assessing the integrated nature and role of promotion mix...........................................10
4.2 Planning and justifying integrated promotional campaign for Thomson Holidays......10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is an important tool of promotion for any organisation. Travel and tourism
business requires huge promotion for promoting its product and services. Thomson provide tour
package of Edinburgh and also provide extra services with it. So, in order to attract more
consumers company is required to promote its services with different marketing channels. It
helps the organization in identifying tourist wants and desire and help the tourist to know about
such tours and packages. This study assists in understanding the concepts and principles of
marketing in travel and tourism. It also helps in understanding how marketing can be used as the
management tool by the company. Role of marketing mix and promotional mix in travel and
tourism business can be identified through this study.
TASK 1
1.1 Core concept of marketing for travel and tourism business
Marketing plays vital role in success of travel and tourism business. Core concept of
marketing helps the company in understanding the market demand so that they can plan
accordingly. Marketing for travel and tourism include the described Core concepts: Needs – Need is actually what customer want from market so marketing help the business
to satisfy requirements of consumers. Company should identify, what is the expectation
of consumers from such tour packages. (Nezakati, Chin and Akhoundi, 2013). On that
basis, company should plan tour for Edinburgh. It concern with need of tourist related
with Edinburgh destination so that the organization can fulfil it within time period. Demand – In this context, demand means consumer's desire from Edinburgh tour.
Demand of consumer can be related to services of tour. This marketing concept helps the
company in identifying consumer's demand. Product or service – Product or services in this case is the tour packages. Tourist focus
on features of services provided by company. (Lovelock, 2011). Quality of product and
services are point of attraction for consumers. They look for quality of services such as
travel facilities, stay facilities, etc. and this helps the organization in arranging facilities
according to customer demand for particular location.

 Satisfaction – Main aim of every company is to satisfy their consumer in order to gain
loyalty and create positive image of the company. These results to attract new consumers
in future.
1.2 Impact of marketing environment on business and destination
Marketing environment at Edinburgh is very favourable for business and traveller. This is
the second most popular tourist destination in UK; millions of overseas tourist visits this
destination in a year. Tourist at this place contributes large part in the economy. This destination
is connected with all transportation system. These help in attracting visitors form whole world.
Marketing environment include micro environment, market (within the industry) environment
and macro (external) environment (Wright, 2014). This affects both travel and tourist business
and tourist destination. The main impact is as follows: To attract more tourists – Marketing environment at Edinburgh helps the travel business
in positive way because it connects with whole world locations so tourist can easily travel
here. These help in providing security to tourist so that they can feel secure and can travel
more to such destinations. To generate more revenue – Favourable marketing environment helps in attracting more
tourist and it assist the business in generating more revenue and helps the destination in
providing employment to local peoples.
 Satisfaction to the tourist – Marketing environment help in satisfies tourist easily by
providing them favourable market conditions (Hollensen, 2015). It helps the business in
getting repeated tourist and for the destination it is long term income source.
1.3 Factors affecting consumer motivation and demand
Consumer behaviour is an important aspect in marketing of tourism. Consumer
motivation and demand can be influenced by many factors. These mainly include following
factors: Personal factors – These are also known as psychological factors which include beliefs,
personality, attitudes, perceptions, age, family, life style and profession of particular
tourist and these are the factor which might affect the motivation and demand of that
person about particular location (Hartley and Claycomb, 2013). All people have different
taste and preferences and these play important role in selection of product and services.

 Social factors – These factors also influence motivation and demand of the tourist. These
include culture, family and groups which help a consumer in creating perception about
Edinburgh. For example, if a group of people of another country does not like social
environment of Edinburgh then they will not visit the location. Ultimately this will affect
the local business as well as country's income.
 Situational factors – Consumer's motivation and demand is also affected by situational
factors which include time, social ambiance, physical ambiance, etc. These factors deal
influence the purchasing behaviour of the consumer (Sheth, 2011). Physical factor refers
to destination from where tourist buys services. Situational environment include presence
of friends and relatives at the time of travelling which help in motivating people towards
such destinations.
1.4 Principles of market segmentation
Market segmentation is the process of dividing market into various areas on the basis of
different criteria. These help the organisation to identify needs and demand of target group in
order to fulfil them by providing required product or services. Market segmentation could be
done on the basis of age, profession, income, taste and preferences. Market segmentation can be
done by the below given principles for Edinburgh: Segmentation should bases on group of peoples – For making plan to attract and aware
more people about tour and packages, company should identify the segment for dividing
the market (Becker-Olsen and et.al., 2011). They should first identify group of people on
which they need to focus. They can divide people according to their needs and wants. Selection should be based on services of organisations – From different segment of
people they should select that segment which is more likely to visit Edinburgh and should
plan tour and packages according to their taste and preferences in order to attract
maximum targeted people. They should select group of people on the basis of identified
service area. Product should develop for each target segment – By identifying consumers taste &
preferences and dividing them accordingly, company should plan separately for each
group of peoples so that maximum number of people can be covered under their plans
and consumers can also be interested in such tour for Edinburgh.

TASK 2
2.1 Importance of strategic marketing planning
Strategic marketing planning helps in achieving success. It is an important tool of
management which covers all aspects of product and services (Katsikeas, 2014). It also helps in
identifying goals and objective for particular business. There are many benefits attached with
Edinburgh to do marketing planning. Importance of such planning is as follows: To identify business area – Marketing planning is important to identify where and what
changes are required in order to provide better service to consumers. This helps
Edinburgh in identifying key areas where improvement is required. To remove unproductive initiatives – Strategic marketing planning is important for
Edinburgh in order to remove unproductive initiatives so that tourist does not face
problems related to identification of product and services (Bwo-Nung, 2008). it is
important to focus on providing beneficial and productive services & facilities to its
consumers.
 To understand target market and customers – Strategic marketing planning is important
to identify target market and target customers for company's products and services. These
help the company in getting information about particular market so that they can make
decision accordingly. For Edinburgh, target customers are tourist from all over world
who are interested in visiting these destination.
2.2 Relevance of marketing research and market information
Marketing research helps the manager to create outline for market as market information
provide base to this outline. Marketing information and research are important for the managers
because on this basis they are making decisions (Cazcarro, Hoekstra and Chóliz, 2014). These
are important for manager because of the following reasons: To identifying market opportunity – Proper marketing research and marketing
information is required to identify market opportunity available to the business. In this
context, research and information of travel and tourism market at Edinburgh help the
manager in finding out opportunities in market for growth of business.

 To understand consumer behaviour – Marketing research helps in understanding the
consumer behaviour towards particular products and services. Consumer behaviour can
be understood by taking feedback and reviews for particular services. It provides data
about likes and dislikes of consumers so that manager can plan services according to
consumers wants and needs. It helps the managers in finding alternatives for consumer’s
desires.
 To make effective decisions – These are the actual base for making any decision related
to the organisation. Market research and information helps the manager to take effective
decisions business grow with facilitating more and more consumers (Falk, 2011). On
these bases, managers can also take decision about target market and target consumers.
2.3 Impact of marketing on society
Marketing is an important tool of selecting product & services and promoting them in the
market. It affect the society in both way positive as well as negative. Following are the impact:
Positive impacts: Better standard of living – Marketing helps to aware people about features and quality of
product and services so that people can buy according to their needs. A well developed
Marketing system also help tourist destination such as Edinburgh to maximize itself
overseas so that ultimately it positively affect the society of Edinburgh.
 Consumers can make better decisions – Marketing of services provided by companies
help the consumers in making better decision (Figini and Vici, 2010). It assists the
consumers to get more information about services so that they can select suitable from
them.
Negative impacts: Waste of money – Marketing require huge money for promoting product and this is
reason for increase in cost of services and this indirectly impact the society. Main reason
for increase in price of services and product is marketing. This gives extra burden on
buyer of the services.
 Travel and tourism do not need marketing – In this type of conditions, there is no need
to market about popular destination because larger number of people is already aware
about it. So people not need to see such promotional activity for getting information
about such destination.

TASK 3
3.1 Identifying the issues involved in the different elements of marketing mix
Marketing mix is the business tool which is used with an aim to prepare an effective
marketing plan for the organization (Marketing mix, 2015). The given mix consists of four
different types of elements such as product, price, place and promotion etc. Here, while
developing the given elements there are number of issues which occurs front of the manager of
Thomson Holidays in an effective way. The detailed description about the same is enumerated in
below: Product: Thomson Holidays provides travel and tourism services to its buyers. Thus, it
delivers services like tour packages and Thomson cruises etc. The major issue which firm
faces while developing the given element of marketing mix is differentiating between its
competitors services. It is the significant issues because if not addressed then sales and
profits of company will be impacted in a negative way. Thus, with an aim to give unique
services to its buyers, firm carries out thorough environmental analysis with an aim to
assess needs and demands of its buyers. Price: Here, on the basis of selected products and services manager of cited firm will
have to make decision regarding the price for the respective product (Motohashi, 2015).
For example, Thomson Holidays has decided to use low pricing tactic for its cruise line
services. This decision of firm will be affected when the area where firm is conducting
the given tour raises the taxes upon different types of travel and tourism services. Hence,
in the given circumstances firm will be forced to raise prices upon its services. In addition
to this, another issue which incur in the given phase is regarding the type of pricing tactic
which needs to be chosen by them.
 Place: It depicts about the area from which the goods and services will be delivered by
the firm to its respective buyers (Weaver, 2006). Selecting the proper distribution channel
which fulfils the convenience related needs of buyers is regarded as one of the crucial
issue which firm faces when developing the given element. The manager of the firm has
to make decision about the same as per its financial capability.

3.2 Assessing the importance of service sector mix element for Thomson Holidays
The service sector mix elements have its importance for Thomson Holidays. The above
mentioned marketing mix elements are same for the service sector mix, but the given element
involves three other additions which are people, process and physical evidence. These given
three additional marketing mix elements has the significance Thomson Holidays. In this context,
it can be said that the effectiveness of any service firm largely relies upon its employees (Figini
and Vici, 2010). This is because; it is with the help of the talented team and skilled employee’s
only high quality of services will be delivered by the firm to its respective buyers. Due to this,
Thomson Holidays gains benefits in the form of increased profits and sales in an effectual way.
In addition to this, the process used for delivering the services also plays very critical role
as it is directly related with satisfaction level of buyers. Here, satisfaction level of buyers will be
impacted when they have to wait for the longer period of time with an aim to avail the services
from the Thomson Holidays employees. Here, workers give service of designing and developing
tour packages for the buyers. Besides this, physical evidence also has its importance for tour
operator (Nezakati, Chin and Akhoundi, 2013). Here, physical evidence includes store ambiance,
lighting and seating arrangement for customers etc. These all given things helps in attracting
large number of buyers towards the firm and due to this the profits of the enterprise will be
impacted in a positive way.
3.3 Discussing and applying the concept of total tourism product
The travel and tourism industry include hotels, travel agency and airline firms. These all
given firms offers different types of products and services to the respective customers and
thereby makes efforts to deliver the high quality of services to the buyers.
Thus, it can be said that travel product is the group of element which are combined
together with an aim to satisfy needs and demands of the buyers. With respect to the Thomson
Holidays, tourism product can be the holiday tours which is designed for its buyers. Here, while
designing the travel packages for the buyers cited firm tends to use the varied type of
components such as places, services and attraction points where customer will visit etc. These
components are designed with the purpose of giving an immense travelling experience to the
respective buyers (Impacts of Tourism, 2014). Thus, total tourism product is nothing but the
overall travelling experience which customers gets while using the services of Thomson

Holidays. Dissatisfaction of consumers also leads to affect the sales and profitability related
condition of the firm.
TASK 4
4.1 Assessing the integrated nature and role of promotion mix
Promotion mix is the combination of different promotional elements which firm uses
with an aim to spread information about its products and services among large number of buyers.
Thus, Thomson Holidays promotions mix consists of means such as social networking site,
newspaper, magazines and hoarding etc. Promotion mix can be stated as one of the 4 P's of
marketing mix. It is a crucial element that helps in promoting business operations in different
markets so that large base can be attracted. Promotion mix involves different elements such as
advertising, sales promotion, personal selling, public relations and direct marketing. However,
adopting all these elements of promoting business helps company to reach at business objectives.
For instance, marketing team of Thompson's Holidays need to undertake effective promotion
mix elements such as direct marketing or sales promotion so that target consumers can be
attracted to buy the tour package. Organization adopts direct marketing method through which it
attracts potential customers and provides them the best deals so that they can visit different
destinations. Furthermore, sales promotion activities are also undertaken by the cited firm in
order to stimulate customers to purchase the product. For instance, here, marketing team of
Thompson's provide attractive rebates and discount offers for consumers so that they can be
attracted in order to utilize the services of company.
These all assessed promotional means plays a very important role. The promotional mix
helps in increasing brand awareness among the respective buyers. These given means plays
significant role in terms of giving information about the brand among the respective buyers
(Lovelock, 2011). In addition to this, these means helps in attracting Thomson Holiday's
competitor buyers. Thus, this help in raising sales and profits of the enterprise in an effectual
way. In addition to this, the promotional means also assist in directing traffic of customers
towards the services of firm. Hence, it can be said that it is very necessary for the firm to select
its promotional means very wisely. This is because, if not selected then it will become difficult
for the corporation to perform necessary improvement in the sales and profits.

4.2 Planning and justifying integrated promotional campaign for Thomson Holidays
A sales promotional campaign has been designed for the cruise line services of Thomson
Holidays. This campaign is designed with an aim to improve the overall profits of the firm. The
promotional campaign will include following steps: Objective of campaign: The main objective of this campaign is to spread information
about the cruise line services of the cited company. Target audience: These services will be designed for elite or high income class
customers. Message to be delivered: Come and take the pleasure of high class cruise line Thomson
Holidays services is the tag line of the campaign (Hollensen, 2015).
 Budget for the campaign: Around 2000 euro will be invested in the given campaign.
However, with an aim to give information about this campaign different promotional
means will be used such as magazines which are read by elite people, social networking sites and
famous newspapers etc.
CONCLUSION
Marketing is tool of connecting people through different channels of promotion. Travel
and tourism at Edinburgh is highly appreciated tourist and destination which is popular among
young peoples. Edinburgh's tourism authority mainly focuses on security of tourist and provides
them quality services. Organisation provides all types of services which are mostly demanded
by tourist. Company promote its services overseas to attract more consumers from whole world.
Marketing play an important role in exploring company on global level.

REFERENCES
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