Marketing in Travel and Tourism: Strategies and Analysis for Thomson

This report offers a detailed analysis of marketing strategies within the travel and tourism sector, using Thomson as a case study. It begins with an introduction to core marketing concepts, including demands, needs, wants, exchange, transaction, and the impact of the marketing environment, both micro and macro, on travel businesses. The report then explores factors influencing consumer motivation and demand, followed by an examination of market segmentation principles and their application in marketing planning. Strategic marketing planning and the importance of market research are discussed, along with the issues related to product, price, and place elements in the marketing mix, and the significance of service sector mix elements in the travel and tourism sector. The concept of the total tourism product is also considered. The report concludes with an overview of the nature and role of the promotion mix, including the development and justification of an integrated promotional campaign for Thomson's summer offerings.

MARKETING IN
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1.1 Important concepts of marketing...................................................................................1
P 1.2 Impact of marketing environment on travel and tourism businesses............................3
P 1.3 Factors affecting motivation of the consumer and demand..........................................4
P 1.4 Principles of market segmentation and its uses in marketing planning........................5
TASK 2............................................................................................................................................5
2.1 Importance of strategic marketing planning.....................................................................5
2.2 Relevance of market research...........................................................................................7
TASK 3............................................................................................................................................8
3.1 Issues relating to product, price and place element in the marketing mix.......................8
3.2 importance of service sector mix elements in the travel and tourism sector....................9
3.3 Concept of total tourism product to an individual tourism business. ............................10
TASK 4.................................................................................................................................10
4.1 nature and role of promotion mix...................................................................................10
4.2 Plan and justify an integrated promotional campaign for Thomson summer ...............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

Illustration Index
Illustration 1: Core Marketing concepts..........................................................................................1

INTRODUCTION
Travel and tourism is considered as one of the important industry which contributes the
highest to GDP in UK. It is one of the fastest growing sector contributing to employment, growth
and development. Thomson is among such well known companies situated in UK. It has its own
airlines, cruise ships, restaurant, retail stores etc. The report makes a comprehensive analysis of
different marketing strategies developed by Thomson to provide the best to its customers.
Further, marketing mix for the company will be performed where its application will also be
discussed. In the end, promotional plan for the company will be developed that can help in
tapping maximum number of clients.
TASK 1
P 1.1 Important concepts of marketing
It is important for every company that it has its marketing concepts clear so that it can
deliver the best to the clients and serve its purpose. The rise and fall of a company total;ly
depends upon whether the clients are happy with product and services or not. Based upon the
knowledge collected from concepts of marketing, the services can be rendered. Some of the
important elements of marketing are mentioned below:
 Demands, Needs and wants: The demand may differ from person to person further
leading to change in satisfaction and dissatisfaction level as well. It is important to full
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Illustration 1: Core Marketing concepts
Source: Top Five Core Concepts of
Marketing, 2016

the demand of the customers in order to stay competitive in the market and reflect higher
market share. Hence, Thomson must understand the customer's requirement and provide
the travel and tourism services accordingly. In the respect of this company, friendly
approach must be initiated as it will help in creating positive image of the firm (Daymon
and Holloway, 2010). The strategies can be formulated in order to survive in the
competition. Hence, being a travel and tourism company, it is important to provide all
types of packages from cheap to expensive and for near and far destinations. It can also
provide accommodation to make theory stay pleasurable and comfortable further
providing basic amenities of travel as well. It takes care of its customers by providing
luxurious amenities at affordable prices.
 Exchange, transaction and transfer: These are the central focal points of marketing
which is highly dependent on values, exchange offer, desirable cost and competition.
Customer can negotiate with the rates offered by Thomson and hence can attract larger
amount of customers. It helps in drawing better relationship from the point of view of
exchange, transaction and transfer various rates to the customers.
 Services and market: The services to the customer must help in deriving higher
satisfaction level of both physical as well as psychological needs. The services are
actually provided at the market place where large number of competitors are available as
Thomson belongs to perfect competition market. The services provided are of high
quality at affordable prices (Fernández-Morales, Cisneros-Martínez and McCabe, 2016).
The company can extend offer based upon the demand of the client. Different packages
and discount rates can be offered. Further, they are also given tailor made services based
on the affordability and willingness of the client to make purchases.
 Relationship and network: The services offered by the company must provide higher
satisfaction level. However, another significant aspect of a company is to generate higher
profits as well. Higher satisfaction level helps in developing long term profitability to the
entity as well. Thomson have been able to expand its network to approximately 180
countries which has helped to generate higher profits and presence as well.
 Utility, cost and satisfaction: The capacity of the products and services offered helps in
assessing that whether the needs and demands of the customers are fulfilled or not. It is
important to provide value for money services so that the satisfaction level is high.
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Thomson, being a travel and tourism company, it is important to provide comfortable
accommodation and other leisure activities as well considering important aspects of
services such as, price, safety and enjoyment
P 1.2 Impact of marketing environment on travel and tourism businesses
Thomson is planning to arrange summer holiday packages at affordable rates for 2019
covering two most beautiful destinations, Turkey and Spain. It is important to understand both
micro and macro level factors in order to increase the output from Thomson.
Micro environment:
There are basically internal factors which plays important role. Some of the micro
environmental factors are discussed below:
 Customers: Customers play vital role in the functioning of the company as acceptance of
the client is directly proportionate to the profits generated by the entity. The main
requirement of the customers lies in quality of services provided, ethical and fair dealing
with each and every customers (Kotler, 2012). Moreover, the services must also be
provided at affordable prices. It helps in enhancing the level of customer's satisfaction
further helping the company to grow as well.
 Suppliers and competitors: these are the people who are involved in supplying the
services to Thomson. Better relationship with the suppliers help in getting the services at
affordable prices which further creates value for money for the customers as well.
Another important aspect is to focus on the competitors and prepare strategies so that it
can create an edge over others.
Macro environment
These are the external factors which are beyond the control of the company. However, it
has significant impact on the functioning of the entity and its profits as well. Some of the
important external factors are discussed as follows:
 Technological change: It is important to enhance the technology as and when it arises in
the market. It helps in enhancing the services (Lusch and Vargo, 2014). The company can
render online services to the clients. Further, the company is already equipped with large
aircraft and ships that can help in accommodating more people while travelling.
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 Political and legal factors: The policies of the government that are made in UK are
required to be abided by Thomson. Further, another rules may be set in Turkey and Spain
which is required to be followed by Thomson.
 Economic aspects: The business of Thomson can be affected by rate of interest and
currency value fluctuation as well. For instance, if high interest rate is prevailing in the
country then it can lead to fall in demand of the customers as well. Moreover, inflation
rate also have great impact on the functioning as well.
P 1.3 Factors affecting motivation of the consumer and demand
A high demand is attracted by travel and tourism industry further rising the requirement
of companies belonging to this sector as well. If any demand is not fulfilled then it can lead to
affecting the motivational level of choosing the company for the next time. The behaviour, mid
set and expectations decide the level of purchasing they will make from the particular company.
Marketing analysis activity is considered by Thomson to understand the ongoing trend in the
market. Some of the factors are mentioned below:
 Socio cultural factors: These are the factors that can influence and motivate customers
to choose Turkey and Spain as their travel destinations. There is an inclusion of society,
environment, social class etc. People tend to choose the destinations with higher social
beliefs and customs (Pappas and Apostolakis, 2016). Turkey and Spain have different
types of culture which influence people to visit the places. Spain is considered as one of
the most travelled destination in Europe.
 Personal factors: It helps in determining economic, business, lifestyle of the customers
etc. However, every person have their own choices regarding trips, travels and facilities
they require during their stay and travel. Hence, these important aspect are considered by
Thomson while planning trips to turkey and Spain. The services must also be customized
ass per the demands of the travellers so that higher satisfaction level can be achieved,
 Purchasing power: It is the ability of the person to pay for the particular trip. It is
important that the trip is reasonable to them so that every services can be afforded by the
traveller. Different range of offers are provided to the customers so that the best can be
chosen by them.
 Economic conditions: Economic conditions of the country helps in determining that
what is the purchasing power of the customers. The firms in the market tends to supply
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the best to its customers. The forecasting of the demand helps in developing better
holiday plan to the customers.
P 1.4 Principles of market segmentation and its uses in marketing planning
In order to target the customers in better manner, Thomson have divided them in different
segments. It is important to perform this activity in effective manner so that highest number of
customers can be attracted to avail the services. Some of the segmentation criteria followed by
Thomson are mentioned below:
 Geographic segmentation: The segmentation is performed in this division based on
geographical segments. It can be based on countries, cities, places and different regions.
 Behavioural segmentation: The segmentation is done according to attitude, behaviour,
knowledge and loyalty level of the customers. The organization is able to concentrate on
customers which are more loyal to the company (Sheth and Sisodia, 2015).
 Psychographic segmentation: As per this strategy of segmentation, Thomson divide the
customers according to lifestyle, hobbies etc and hence, concentrate on people who love
to travel as their leisure time activity.
 Demographic segmentation: Here, segmentation is made based on family, age, gender,
income etc. Different travel plans can be shared to attract large number of customers. For
instance, the package for young must have adventure sports and exploring activities as
compared to the one who are older in age.
TASK 2
2.1 Importance of strategic marketing planning
Strategic management is essential as regards to profitability of the concern. Managers
used to make the bunches and bundles of required decisions which is important in order to gain
competency over the rivals. It involves strategies which are utmost useful to organisation's
success. It is worth mentioning that strategies is nothing but planning for predictable and
unpredictable circumstances. Managers plans towards the objectives and try to meet that in due
course of time span which will measure the firm's efficiencies and credibility.
Now, the tourism company will maintain strategies along with the competitors. Thomson
tourism planning its strategies to organise its holiday packages in Turkey or Spain. The
company will now maintain its offers which is in accordance with the countries, say, the
government policy which company has to follow or may be the amount of tax that be levied on
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packages. Now, the marketing research comes into picture that managers need to tackle out.
They will understand and evaluate the research including customer perception, desires,
disposable income available to spend on travelling expenses and many more including the
government norms and political norms. Another one which is important to take in economic
stability of country, it will space out the irrelevant things and focus on main aspect. Next, comes
in strategic management is legal norms that consists of taxation policy of the government. If
taxes are more in tourism company, customers may not attract and hence, no revenue will be
generated. Lastly, holiday packages to offer to potential and prospective customers should be
made according to the concern country, as such if holiday packages are more to customers than
its income, then eventually, marketing strategy will fail automatically. Therefore, holiday
packages should be analysed according to concern country.
Influence of marketing on society is utmost important to tourism company as different nations
has different perceptions and beliefs. Currency rates also play major role on company as
it is a key factor. If curreny rate in concern country is lower than another, customers will not be
entertained and company will be unable to flourish and will incur more of its cost rather than
generating revenue which is required to go in long run.
SWOT Analysis of Thomson tourism company
Strengths :
 Transforming from mere ticket issuers to travel consultants.
 Lower cost of packages.
Weaknesses :
 Affected by taxes.
 Low return.
Opportunity :
 Increasing customer base.
 Discovering newer packages to new and existing customers.
Threats :
 Internet is destroying the local tour operators.
 Extinction of traditional techniques.
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2.2 Relevance of market research
Market is an important activity which involves the activities that can help in assessing the
needs of the market and providing services according to it. Market trends is checked and services
are rendered according to it. The current martinet conditions and willingness can be assessed if
effective market research is being conducted. Researchers can perform market research in the
following mentioned two types:
 Primary research: The research which is conducted for the first time is known as
primary research. It can involve preparing survey for the customers, taking interviews to
assess the trend of the market, etc.
 Secondary research: It is the type of research where it has already been conducted ones
and the data is then collected through various sources (Strauss, 2016). The sources can
include, data collected from books and journals, online sources, blog posts etc.
It is advised to Thomson that it must conduct both type of research son that adequate
amount of services can be provided to the customers which ultimately will generate higher
profits to it. It can employ fresh candidates who have that energy and zest
2.3 Effect of marketing on society
For gaining attention from the public the company should make certain schemes:
1. If the company makes advertisement on social media sites then the people will be much
aware about the company's policies and rules Sales promotion includes all forms of
sponsored communication apart from activities associated with personal selling. It, thus
includes trade shows and exhibits, combining, sampling, premiums, trade, allowances,
sales and dealer incentives, set of packs, consumer education and demonstration
activities, rebates, bonus, packs, point of purchase material and direct mail.”
2. The awareness among the public will be much and the people are going to invest more
amount of work and the company may get profit.
Different tourist destinations
Most travel destinations and related tourism products have at least one set of high and
low seasons (Hjalager, 2010). As a rule, the low season brings lower rates, cheaper flights and
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less interest overall. If the Thomson company provides the low cost packages to the people then
the people will be much interested in investing their money.
1. As most of the people are interested in spending their time in holidays so they spent more
amount of money and invest more in tourism industry and the company gains more profit
to satisfy the customers needs . As more and more needs of the customers are satisfies
then the sales of the company will increase and it leads to more profit in the organization.
These are the various factors through which the effect on marketing on society can be done and
as such people get more knowledge and when the company reach the level of customer
satisfaction then the company may get more profit and the company may lead to high growth and
success in the long run,
TASK 3
3.1 Issues relating to product, price and place element in the marketing mix
There are total 7 P's of marketing and each and every P affect the marketing strategies . The
Thomson company also focuses on the basic criteria and thus the company as much effect
on the marketing mix.
The effect on product mix on Thomson can be as follows:
 The main product of this company is providing services to the customers and mainly the
tour company focuses on the needs and wants of the customers and according to that the
company produces the serviced to the customers . Providing good services to the
customers will indirectly lead to customer satisfaction and it leads to high growth in the
business (Gupta, 2011). If the services which are provided by the company is not good
then the customers are not satisfied and it lead to low image of the company.
 The next factor which affects the marketing mix is the price element.
 The packages which are been provided by the company should be such that it should
meet customer satisfaction and there should be some package tour schemes provided by
the company so that the company gains much and the customers invest according to their
needs . All the prices of the package should be based on the number of days of the
holiday trip. Based on number of days the tour prices should be dependent so that more
amount of customers are attracted and company main gain profit. The major issue which
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is seen is tat the company is not ready to adjust the amount of money according to the
needs of the customers so the company is not gaining much
 The place element affects the Thomson company in the following ways
 Before providing the package list to the customers the company first organize its list in a
proper manner and according to it the company works. In the package tours company
must mention the places so tat the customers are aware about their work and the Spain
and turkey packages should be such that the beaches should be visited by the people so
that they enjoy the holidays and give proper and a good feedback to the company (Lunge
and et.al., 201). If the feedback is given proper then the company will expand a good
brand image is been created profit is been increased.
3.2 importance of service sector mix elements in the travel and tourism sector
The services which are provided by the company should be such that it attracts more amount of
customers and it leads to more profit in the company.
 If all the cost including accommodation, food and other facilities then the customers are
ready to invest as they don't have to give extra charge for any visit during the company.
 The second major element is interactive marketing: it is seen that now a days every
business is done online and people are more interested in doing online transactions as
people prefer to pay the large amount of money through e banking system and thus
interactive marketing means the marketing service which provides the platform for doing
online business or online transactions (Garner-Muñoz and Perez-Amoral, 2011).
 Now a days people prefer to use online service because people ave less time to move
from one place to another. With the growing up of technologies there are different ways
through which we will pay our money on one click of our mobile pones or e banking
system.
 The services provided by Thomson should be such that more and more customers are
attracted towards that business and invest their money so that te company will lead to
high growth and it leads to profit maximization.
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 If the services provided by the Thomson company is good and the customers are well
satisfied then the customers will give a feedback and for that after sales service of the
company should be there.
If all these services are been provided by the Thomson then it will lead to high growth in the
long run and achieve maximum profit.
3.3 Concept of total tourism product to an individual tourism business.
The total tourism business can be different from individual tourism business in the following
ways:
 Total tourism business is such which provides the total services to its customers and
which mainly deals wit giving best services to its customers and satisfying the needs of
the customers and achieve maximum profit . Now a days people need comfort in their
work so people invest much and they need comfort and as such the people are interested
in giving more money but in return they need comfort. Total tourism sector provides full
comfort to the customers as they are ready to invest much in this sector (Zaei, 2013).
 Individual tourism business does not focus on all the services . It only focuses on criteria
and only manages and deals with it only .For eg: if it focuses on the good accommodation
facility to the customers then the other facilities which are provided by them will not up
to the mark of the customers and the customers are not fully satisfied so that they will
not invest much in this sector as they are not fully satisfied by their services.
 Thomson should also focus on the total tourism concept so that more no of customers are
attracted and more profit is being earned .
TASK 4
4.1 nature and role of promotion mix
Nature of promotion mix
1. Promotion is a form of communication with an additional element of communication
to accept ideas, products, services and hence cogent communication becomes the
heart of promotion, the third element of marketing-mix (Baker, 2014).
Promotion is an important marketing strategy and is the spark plug of the marketing-mix.
Promotion helps people know that the right product at right price is available at the right place.
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In a competitive market, without promotion, practically no sale is effected. Promotion is the
process of marketing communication to inform, remind and influence consumers in favor of a
product or service.
Nature of promotion mix:
 It communicates marketing information to consumers and sellers.
 It convinces the buyer and influences the behavior to take the required action.
 Promotional efforts act as powerful tools of competition, providing the cutting edge of its
entire marketing mix.
Role of marketing mix:
1. Increase brand awareness: The brand image of the company is increased when the promotion
of the company is done and the Thomson company should also focus on promotional mix
elements to expand their business. The various promotional tools can be advertisement, online
services and providing online service to the customers. In case of travel and tourism company
should (Ziegler, Dearden and Rollins, 2012). If the promotional element works then the company
will have a good brand image of social media in online travel information search.
2. Provide information: The company should provide all the information related to the tour
package such as cost of each tour package , number of days, number of locations they will show
and other information also related to the travel .
3. Increase customer traffic: If the company creates more awareness among the public then
people will invest more and the number of customers will increase and it leads to more customer
satisfaction and it leads to more profit for the company (Zaei, 2013). If the services are provided
by the company is good then only the customers are attracted and customers are ready to invest
in that business.
4. Build sales and profit: If the image of the company is good and the cost of the package tour
is also low then people will invest much and the ratio of sales increases and if the sales increases
then the profit will automatically increase and the overall growth of the company increases.
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4.2 Plan and justify an integrated promotional campaign for Thomson summer
The various integrated marketing campaign which the company should adopt are as follows:
 Television
 Personal selling
 Sales promotional
 Advertisement through newspaper
These are the methods through which marketing of the services can be done. The main aim of
marketing is the customer satisfaction and maximum profit. These are explained below:
 Advertisement through television: This is a good way of promotion for all the
companies and it is widely used as all the people used television and it is the cheapest
way of doing promotion.
 Personal selling: Personal selling is also known as face-to-face selling in which one
person who is the salesman tries to convince the customer in buying a product (Liu, Feng
and Yang, 2011). It is a promotional method by which the person uses his or her skills in
an attempt to make a sale. In this method the companies interact directly to the customers
and promote their services.
 Sales promotion: Sales promotion includes all forms of sponsored communication apart
from activities associated with personal selling. It, thus includes trade shows and exhibits,
combining and providing free samples to the customers set of packs, consumer education
and demonstration activities, rebates, bonus, packs, point of purchase material and direct
mail (Ghimire, 2013).
 Advertisement through newspaper: It is the best mode of marketing . Low income
group of people can also use this mode of marketing and as such it is low cost mode of
communication between the seller and the buyer.
These four methods are used for the promotion of the marketing of the products and
services used in the travel and tourism industry.
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These promotional tools helps the companies to expand its business in the long run and
the growth of the company increases . It will lead to a good brand image and position of the
company remains at the top (Zeng and Gerritsen, 2014).
The Thomson company should make the promotional campaigns in such a way that
maximum number of customers are attracted towards their services and the company may
expand and gain maximum profit.
The company should make such promotional schemes so that less cost is involved in it.
CONCLUSION
Based on the above report, it can be concluded that, it is important for Thomson to
understand the core marketing concepts so as to deliver the best to the clients. Marketing efforts
are being made to promote their new summer package for 2019, covering two importqat
destinations, that is, Turkey and Spain. Marketing mix technique is used so that services can be
placed in effective manner. Internal and external factors are analysed to successfully implement
the new plan of travel.
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Garner-Muñoz, T. and Perez-Amoral.T., 2011. Internet usage for travel and tourism: the case of
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Hjalager;A.M,2010. A review of innovation research in tourism. Tourism management, 31(1),
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Kotler, P., 2012. Kotler on marketing. Simon and Schuster.
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Pappas, N. and Apostolakis, A., 2016. Financial Crisis and Tourism Activity: Evidence from the
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Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
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Strauss, J., 2016. E-marketing. Routledge.
Zaei.M.E. 2013. The impacts of tourism industry on host community. European journal of
tourism hospitality and research. 1(2). pp.12-21.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.
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