Marketing in Travel and Tourism: Thomas Cook Group PLC Report Analysis

This report provides a comprehensive analysis of marketing principles and their application within the travel and tourism industry, specifically focusing on Thomas Cook Group PLC's summer 2017 tour packages for Morocco and Egypt. The report begins with an executive summary and table of contents, followed by an introduction that highlights the growing importance of the travel and tourism sector and the role of marketing. It then delves into the core concepts of marketing, emphasizing the significance of understanding customer needs, market trends, and the marketing environment. The report explores the micro and macro environmental factors influencing the business, assessing the impact on customer demand and motivation. Furthermore, the report examines market segmentation principles, strategic marketing planning using SWOT analysis, Boston Consulting Group Matrix, Ansoff Matrix and Porter's Five Forces, and the application of the marketing mix and promotional mix to enhance the company's profitability. The report provides a detailed overview of consumer behavior, decision-making processes, and the importance of market segmentation in relation to achieve the goals and objective of the firm. The strategic marketing plan is vital for Thomas Cook Group, PLC to sustain in the competitive tourism industry. This is because strategic market planning helps the company not only to fulfil the requirements of the clients but also analyse the progress and development of the organisation. The report concludes by emphasizing the importance of strategic marketing planning, and the role of strategic market planning to help the company not only to fulfil the requirements of the clients but also analyse the progress and development of the organisation.

MARKETING IN TRAVEL AND TOURISM
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Executive Summary
This report deals with the marketing of summer 2017 tour packages of Morocco and
Egypt for the company Thomas Cook Group, PLC. In this report, the concepts and
principles of marketing have been applied for the designing of a marketing mix for the
tour packages of Morocco and Egypt. The strategic marketing plan has been analysed
with the help of SWOT analysis, Boston Consulting Group Matrix, Ansoff Matrix and
market competition have been analysed with the help of Porter's Five Forces analysis.
Further, the role of marketing mix has been discussed in regard to the tourism industry
followed by the successful application of the promotional mix for increasing the profits of
the company.

Table of Contents

Introduction
Travel and tourism are a business, which is gaining more worldwide importance
these days with people wanting to visit the places where they have never been. Various
travel and tourism organisations are crafting new plans and strategies which aim to give
happiness to customers and expand their business in the process. In the present report,
a detailed discussion is provided related to the topic of the importance of marketing in
the sector of travel and tourism and the skills which are needed to employ the
promotional mix in the business of travel and tourism. At first, a discussion is given
explaining the chief principles and concepts of marketing related to travel and tourism.
The next point is about understanding the importance of marketing role as managing
tool, this is done with the explanation of PLC, Boston Matrix, Ansoff's matrix. The last
point deals with the application and assessment of marketing mix in this sector (Hudson
and Hudson, 2013, p.5).
LO1 Comprehension of marketing principles and concepts regarding travel and
tourism
P1.1 Basic marketing concepts related to the sector of travel and tourism
The idea of visiting different places has always attracted the attention of people. With
this objective in view, many travels and tourism companies have developed which
strives to fulfil these wishes and demands of people. In the world of the 21st century
with more people wanting to see the world apart from their homeland has led to the
growth and development of travel and tourism business. However, in order to strike the
right chord to make this business a success, there are some basic marketing principles
which need to be assessed by every travel and tourism agencies.
The main motive of successful marketing orientation is a proper assessment of various
essential factors like customer demands, wants, satisfaction, exchange process, the
trend of travel and tourism marketing and market value. The business of travel and
agency deal chiefly with people, playing the role of the service provider which enable

their customers to visit various different places (Thomascookgroup.com, 2016). Hence,
the travel organisation must always keep itself updated about the present and changing
trends and demands of people. The travel organisation acts as a guide for people,
providing tickets to explore places of different parts of the world. As per the case
scenario, for example, Thomas Cook Group before providing a vacation in Morocco and
Egypt must know the places well enough to be able to attract its prospective customers.
Along with this, the agency is also required to make proper plans regarding travel
packages and expenses which can be beneficial for tourists as well as for the agency
(Gustavo, 2013, p.13).
P1.2 Evaluate the influence of marketing environment related to businesses of
individual travel and tourism
Considering the market environmental factors is really important as it influences
the success rate of every business. Taking the given case scenario into consideration,
the Thomas Cook Group is a British travel and tourism company which has established
its business operations worldwide for more than a century. The success of the Thomas
Cook for serving its customers with numerous product and travel offerings, however,
lies with its microenvironment and the macro environmental factors in which the
company runs its business operations. There are six components involved in the
microenvironment of a tourism organisation like Thomas Cook that includes suppliers,
customers, competitors, marketing intermediaries, hospitality enterprises like
tourist attractions, hotels, marketing facilitators. (Refer Appendix 1)
The six micro environmental factors are very much crucial which ensures the
development and betterment of travel and tourism business. For example, knowing the
demands and wishes of its prospective customers is very much important in order to be
able to fulfil and satisfy their demands (Jamal et al. 2013, p.4600). Thus, it leads to the
importance of hospitality enterprises which includes hotels, tourist attractions, and
marketing facilitators. As per the scenario, Thomas Cook Group, in order to attract the
attention of customers, must try to look and reserve for hotels that will be affordable as
well as convenient. The agency of the company must also be aware of the famous as

well as attractive unexplored visiting places of Morocco and Egypt (Horner and
Swarbrooke, 2016, p.21).
Having a strong section of market intermediaries also helps much in this field. In the
sector of travel and tourism, marketing intermediaries play an important part as they are
the dealers who act as a connecting link between the customers and the company.
Micro environmental elements, on the other hand, describe the external factors which
affect the operation of the business. There are basically six macro factors which
influence the function of travel and tourism business. These are demographical,
political, economic, social, technological, cultural and legal (Holden, 2016, p.57).
The factor of demography suggests the demographical location.
As for instance, considering the location and possible tourist attractive spots of Morocco
and Egypt, Thomas Cook group should try to make their packages enticing accordingly.
However, in order to do this, the company must consider the economic factor which is
necessary to assess the profit, growth, in assessing expenses. Political and legal
factors imply the possible regulations and policies related to travel and tourism in
Morocco and Egypt, which must be abided by the company if they do not want to face
any problem (Hudson and Hudson, 2013, p.71).
P1.3 Aspects which affects demands and motivation of customers in travel and
tourism
The sector of travel and tourism depends chiefly on people so the company must
conduct a thorough in-depth research to assess the consumer markets. The factor of
motivations of tourists and determinants is very much essential in order to make plans
that will help to attract and satisfy its customers. Motivation is a psychological aspect
which acts as a tool in attracting the attention of customers urging them to garner
interest in purchasing vacation packages (Getz, 2013, p.28). Motivation plays a very
crucial role in improving business in this sector.
The factor of consumer behaviour and consumer decision-making process is also
essential. The process of consumer decision making possesses five stages which
include requirement recognition, searching information, assessment of

alternatives, purchasing and after purchase behaviour (Heath, 2014, p.142). It
means that the company must do an analysis to find the requirement and need of
customers and the way by which it can attract customers. The company must also do
an information search which enables the company to provide options to customers
which can fulfil their needs. The company must be able to give options to customers, for
instance, customised packages according to financial conditions, individual preferences
of customers. Purchasing and post-purchasing attitude of customers are very important
because this decides whether they will again opt for vacation trips from the same
company. Positive experience from the customer will urge them to become loyal
customers encouraging other customers at the same time to try for the service (Mok et
al. 2013, p.89).
There are chiefly two types of consumer behaviour models which need to be considered
by the travel and tourism company like Thomas Cook Group. They are an Industrial
consumer and Individual consumer (Thomascookgroup.com, 2016). For assessing
the organisational consumer behaviour, the buying method and possible expectations is
to be considered, which signifies purchasing dealers, engineers, and lastly buyers.
Individual model, on the other hand, signifies the pricing, income and substitution.
P1.4 Assessment of the market segmentation principles, its employment in
marketing planning
The market segmentation is very essential in relation to derive the success of the
product in the market. In addition to this, this will be helpful in relation to develop the
strategies of the firm so that firm is able to achieve the goals and objective of the firm.
The Thomas cook is taking various effective steps in relation to achieve the perfect
segmentation in the manner are as-
In order to achieve the process the firm need to use the SOSTAC model so that market
function can able to run their activities effectively. These are defined in the following
manner are as-
S- In the first step the firm is carrying their activities in order to carry out the process of
situational analysis by analysing the various techniques such are SWOT and PESTLE.

O- In this firm need to take the various kind of the approaches in relation to determine
the success to the firm so that aim can be desired.
S- This is very helpful in relation to determine plan of action, they need to take the
various kind of the step in order to work in relation to segmentation, positioning,
targetting strategy.
T- in this the strategy to the firm is need to be executed so that this is able to function in
the market in the appropriate manner. This will be helpful in order to achieve the long
term growth in the enterprise.
A- This is very helpful in order to implement the plan in the appropriate manner. They
are taking various kind of the initiative in relation to work towards the financial, human
and operation resources.
C- this is the last step, it is to be defined in order to find out the gap between actual and
planned performance. If there is any deviation between them than corrective action is
need to be taken.
The Thomas cook has defined the segmentation process in the defined manner rare as-
Demographic- They need to plan the tour as per the need of all the person in the family.
They need to beware about the family and children so that there can be facility in
relation to entertainment source. This kind of the activities will be helpful in order ot
grows the business activities.
Geographic- This is need to be understand the Thomas cook should give those places
where they can enjoy activities of the firm. Couple would prefer to go on adventure,
child will prefer to entertainment places etc.
Behavioural- this kind of the segmentation can focus on the various kind of the activities
such are as behaviour, attitude, lifestyle of the customer etc. this is need to be
determine in the effective in relation to achieve the growth of the firm so that business is
able to expand the activities in the large manner.
LO2:
2.1: [M3, D1, D2]
Strategic marketing planning is vital for Thomas Cook Group, PLC, in order to
sustain in the competitive tourism industry. This is because strategic market

planning helps the company not only to fulfil the requirements of the clients but
also analyse the progress and development of the organisation (Morrison, 2013,
p.1). Thomas Cook Group, PLC utilises this in the marketing of its products by
researching the market, analysing its organisational status, as well as conducting
a market plan to gain a competitive advantage (Refer to Appendix 1).
SWOT
SWOT analysis of Thomas Cook Group, PLC has helped it to know its
organisational status, for creating a marketing strategy.
Strengths Weakness
● Largest travel organisation in Europe.
● Has several international travel packages.
● Increased brand name due to the
sponsorship of the Olympics.
● High brand awareness due to social
media.
● Intense competition from rivals and
new entrants in the market.
● Refusal to pay compensation to EU
customers.
Opportunities Threats
● High scope of penetration due to digital
marketing
● High share prices due to business
expansion
● Largest travel company in Europe
● Liabilities due to refusal to pay
compensation to European Union
(EU) consumers.
● Price wars due to reduced market
shares by the company.
● Uncertainty in the airline sector.
Table 2: SWOT Analysis of Thomas Cook Group, PLC
(Source: Dibb et al. 2012, p.3)
Thomas Cook Group PLC is in the maturity stage of the product life cycle. As
per the SWOT analysis conducted, it has been found that the company provides
services by promoting Morocco tourism package through product
differentiation. It enables people to travel to places at low prices, which other
companies do not provide (Kozak and Martin, 2012, p.188). This enables

Thomas Cook Group, PLC to penetrate the market better, getting more than
20,000 consumers by providing hospitality services at best hotels along with
attractive sightseeing of the country (Refer to Appendix 2).
Boston Consulting Group (BCG) matrix has been used to provide an analysis
of the status of the various businesses done by the organisation. It has been
found that Thomas Cook Group, PLC is in the stars or the leader quadrant of
the matrix. This has been further proved by the maturity stage position of the
company in the product life cycle, where the firm is serving consumers through
unique service packages, at low price rates, increasing the profits of the
company (Karande, 2015, p.85). This allows it to invest in its other business units
like the airlines and communications sector, creating a large market share for the
company (Refer to Appendix 3).
The market diversification and services of the company have been analysed with
the help of Ansoff matrix. As per the matrix, the organisation can develop
services and launch new products in the existing market through promotion and
advertisements, followed by communication of the service and sale of the
package. On the contrary, it can sell this in the new market by doing these along
with creating brand awareness about the company. This can help it to penetrate
that market, which can be enhanced by penetration price strategy (Aziri and
Nedelea, 2013, p.1). The company can further use their core capital to expand
their business to new markets, enabling it to develop a global market for itself,
along with developing its new service packages to diversify itself in the new
markets.
Thomas Cook Group, PLC competes with various other companies of which Cox
and Kings are its prime competitor. The competitive advantage of the company
has been analysed with the help of Porter's Five Forces Analysis.
Porter’s Five Forces Analysis
Threat of Rivalry Thomas Cook faces a high
degree of threat from the
competitive rivalry. This has

been proved by the fall in profits
in 2011, due to the increasing
rivalry in the industry, especially
with Cox and Kings.
Threat of Substitutes The company faces the
medium threat of substitutes.
Even though its rival companies
are producing similar products,
Thomas Cook Group, PLC
manages to stand out due to its
unique travel packages, being
sold at low prices.
Threat of New Entrants There is a low threat of new
entrants since the new entrants
face the problem of a financial
barrier, which is not the case of
Thomas Cook Group, PLC
(Dobbs, 2014, p.32).
Threat of Buyer’s Power The organisation faces a high
threat of buyer’s power.
Moreover, the internet has made
information easily available to
buyers, increasing the buyer's
power over the company.
Threat of Supplier’s Power Thomas Cook Group, PLC faces
the low threat of supplier's
power. It has successfully been
able to negotiate with suppliers
and owning some facilities such
as the airlines, has made it have
more power over suppliers,

giving it a competitive
advantage.
Table 3: Porter’s Analysis of Thomas Cook Group, PLC
(Source: Created by Author)
Therefore, it has been observed that even though the company enjoys a
competitive advantage in the market, it needs to concentrate on the threat it
receives from the power of buyer's and rivalry existing in the industry (Dobbs,
2014, p.32).
2.2: [M3, D2]
Market research and information is vital for the managers of Thomas Cook
Group, PLC since it helps them to know the various needs of consumers along
with the brand status of the company. This helps the managers to decide a
develop and launch products in the tourism industry, by targeting a certain
section of consumers and designing packages for them through various
models and research methods such as Porter’s Five Forces Model, and STP
analysis. It further helps the managers to define their market position by
seeing the factors influencing the company (Dolnicar and Ring, 2014, p.31). The
managers of Thomas Cook Group, PLC have noticed a rise in demand for
customised packages. The managers are further seen to use this information and
research to devise a specific marketing plan, and promoting the same by
deciding an appropriate communication mix for increasing demand of the
product. This, in turn, helps the organisation in increasing profits, giving the
company a competitive edge.
2.3: [M3, D2]
Marketing of tourism packages has been seen to have an immense influence on
the society. It has been seen that Thomas Cook Group, PLC has promoted
tourism of several places enhancing the social and economic development of
the both the visiting and the host countries. Not only will the marketing and
promotion of the Morocco and Egypt summer tour 2017 packages, will inform the