Marketing in Travel and Tourism: Thomson Analysis and Report

This report provides a detailed analysis of marketing principles within the travel and tourism sector, using Thomson as a case study. The report begins with an introduction to the sector's economic significance and the role of marketing. Task 1 analyzes core marketing concepts such as needs, wants, demand, market offers, value, satisfaction, and market segmentation. Task 2 assesses strategic marketing planning, particularly for Thomson, and evaluates the significance of marketing research and its influence on society. Task 3 examines the marketing mix elements and their application in the service sector, along with the concept of total product in tourism. Finally, Task 4 assesses the promotional mix and plans an integrated promotional campaign for Thomson. The report covers a range of factors influencing customer motivation and demand, including personal, cultural, and psychological aspects. It also emphasizes the importance of market segmentation and the strategic use of the SOSTAC model for marketing planning, offering a comprehensive overview of marketing strategies in the travel and tourism industry.

MARKETING IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Analysis of concept of marketing in context to travel and tourism sector.......................1
1.2 Evaluation of affect of marketing environment on the sole business proprietor..............3
1.3 Determination of the factors influencing the motivation of customers and demand. .....5
1.4 Analysis of principles of market segmentation and its utilization in marketing planning.5
TASK 2............................................................................................................................................5
2.1 Analysis of significant of strategic marketing planning for Thomson.............................5
2.2 Discussion on relevance in marketing research and information.....................................5
2.3 Analysis of influence of marketing planning on the society............................................5
TASK 3............................................................................................................................................5
3.1 Determination of problems in elements of marketing mix in context of Thomson........5
3.2 Assessing the significance of marketing mix in service sector........................................5
3.3 Application of the concept of total product of tourism....................................................5
TASK 4............................................................................................................................................5
4.1 Assessing the promotional mix nature and integrated role..............................................5
4.2 Planning of integrated promotional campaign for Thomson............................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
Around the world, the most significant sector that provides major contribution towards
the growth of economy of every country is found to be travel and tourism sector. It is also
recognised as one of the fastest growing sector in UK as it has provided major contribution of
89.8 billion in 2016 to the GDP. It has played major role in increasing the economic
development of the people by providing employment(Zeng and Gerritsen, 2014.) . Various
business firms are regulating in this industry which accomplish their goals and objectives
through application of some specific marketing techniques and methods that usually benefit them
by influencing people from different countries. In this report, analysis of Thomson limited is
done which is market leaders in travel and tourism sector of UK and consists of around 3000
employees in international and overseas market. Mainly it has covered one third of market
segments of industry in UK. It is the objective of management to create a summer holiday trip in
Turkey and Spain. Apart from this, concept of market is explained in this report to provide clear
understanding about the techniques and methods through which the firms will be able to
accomplish its objectives. Some factors are also discussed that provides major influence on the
motivation of customers in market. It also consists various marketing principles, elements and
promotional mix which are being evaluated by effective research.
TASK 1
1.1 Analysis of concept of marketing in context to travel and tourism sector.
Marketing is analysed as most significant elements that provides directions to the
organizations for promotions of their products and services to its potential and existing
customers (Horner and Swarbrooke, 2016). With effective marketing strategies and policies
every business firm like Thomson, will be able to influence its target market segment and
customers. In this, some specific and important marketing concepts are analysed with relevance
to travel and tourism sector which are:
Needs, wants and demand: This major concept of marketing is based on the facts that needs
and demands of customers plays a significant role in marketing. In the travel and tourism, this
relates to the fulfilment of expectation of travellers by the firms like enjoyments, appropriate
quality and best travelling experience. In this, Thomson tour operators should develop
appropriate and affordable tour packages for Turkey and Spain and accomplish the needs of
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customers. It should also provide quality services like food, accommodation, travelling and
comfortable environment to the people.
 Markets offers: This concept refers to the products and services which are offered by the
firms to its customers. In this, decision has to be made by the firm regarding the services
to make them more effective and valuable for customers (Xiang, Magnini and
Fesenmaier, 2015). For example; while designing the tour packages for the Turkey and
Spain, managers must include some attracting offers like discount coupons, tour guide,
free tickets on major bookings etc.
 Value and satisfaction: It is considered as the major concept which related to creation of
value for services among the buyers and providing satisfaction. In this, it is important that
services which are offered by firm must create some effective some times so that the
firms will be able to satisfy the customers.
 Exchange, transactions and relationship: This concept states that the firm will be able
to get the revenues in exchange if they appropriate quality of services to its customers.
While designing the tour packages for the destinations, they have to make an agreement
with hotels in which they provide accommodation facilities to their clients (Hudson and
Thal, 2013). Further, the elements of relationship states that the firms should develops an
effective relationship with its service users and this will be possible only by providing
them satisfaction.
 Markets: It provides a clear understanding about the market segments in which the
Thomson will present its products and services. Effective research has determined that
firm has developed an effective strategy in which it has targeted the premium customers
which have buying powers and willingness to travel in other countries.
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1.2 Evaluation of effect of marketing environment on the sole business proprietor.
In present business environment, various internal and external factors are considered that
provides major impact on the business operations of the company in travel and tourism sector
(Buhalis and Foerste, 2013). In this context, Thomson's marketing environment is continuously
being affected by these factors and the organisation has to develop effective marketing strategies
for the smooth functioning of business operations. Below given are some major factors that
affects the marketing such as:
Micro environmental factors: These are factors that exist within the company and affects the
decisions of company in designing the tour packages and marketing in various economic regions
in countries.
 Suppliers: These are considered as important parties which has effective relationship
with company and provides various services to the company (Hays, Page and Buhalis,
2013). In this context, the suppliers of Thomson will be accommodation, food and
transport service providers etc. they have major impact on the business practices
(Thomson Holidays, 2017). One of the major supplier of Thomson travel is considered as
Riu merengue hotel, Morromar apart hotel which provides services to the customers of
3
I
llustration 1: concepts of marketing in travel and tourism
(Source: Concept of Needs, Wants, Demand in Marketing, 2017)

Thomson to stay in a luxury environment. Thomson grew to become the market leader in
the package holiday market in less than 10 years and currently operates with
approximately 30% of the UK package holiday market share.
 Customers: These are considered as major parties which an organization has to consider
in there marketing environment and should design the products and services to satisfy
there needs and demands (Vila, Darcy and González, 2015). For example: Thomson will
provide best and effective quality services to its customers for whom they designing there
program of Turkey and Spain than they will be gain the positive response of its
customers.
Macro environment: These are considered as external factors that provides major effect on the
firms business operations and marketing . In this context, the Thomson has to analyse these
macro environment factors at the time of framing various policies like
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Illustration 2: marketing environment
(Source: Marketing environment, 2017)

 Technology: It is most significant factors that must be considered by the organization
which describes that firms has to implement some effective technologies changes in their
business operations (Dolnicar, Grün and Schmidt, 2014.). In order to increase the
marketing, they should use their own websites to provide information to their customers.
 Politics: These are considered as the major policies of the government which are
associated with the security also provides major impacts on the marketing. In this, the
firms has to make provides appropriate safety to its consumers and should make
insurance while travelling.
 Economic factors: These are considered as the economic conditions that relates to the
fact that organization should consider all the aspects like interest rates, bank rates etc.
High interest will causes impact on customers and increases there expenditure.
1.3 Determination of the factors influencing the motivation of customers and demand.
In this analysis, it is considered as significant for the organization to focus on providing
satisfaction to consumers in travel and tourism sector (Bujosa, Riera and Torres, 2015). The
packages developed by company should be suitable and transparent to customers and does not
consist of a hidden motive. In this context, there are some factors have been analysed which
provides major effective on the customers' motivation and demand in travel and tourism sector
are as follows:
 Personal factors: These are considered as major factors which reflects the personal
reasons of consumers that affects there decision in making policies and practices. These
personal reasons may include business, economic situation and lifestyle or education of
consumers (Raj and Griffin,2015. ). For example, the customers wants to understand
about the cultural heritage and architecture of country then it will provide him motivation
to make the booking etc.
 Cultural factors: These factors basically involves various factors which influence the
thinking perception of customers to motivate them towards the organization. These
factors mainly includes social class, beliefs and perception of customers that provides
them motivation to spend their holiday at Turkey and Spain.
 Psychological factors: This relates to the fact that an individual's perception and its way
of thinking provides major impacts on its motivation (Goodall, and Ashworth, 2013). In
this context, Thomson has to analysed the perception of its customers and designs
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suitable packages that satisfy there demands and influence them positively. For example:
it is the perception of customer that the places of Spain are attractive and beautiful then it
will influence and motivate him to travel to the country.
1.4 Analysis of principles of market segmentation and its utilization in marketing planning.
 The market segmentation is the marketing activity in which the firm will select an
effective segments by making effective research practices. This will be considered as
beneficial for Thomson to get the potential customer for its products and services which
are capable to pay the prices and have a willingness to travel in other countries. There are
some principle of marketing segmentation have been discussed below such as:
 Demographic segmentation: These are considered as selection of market segment on
the basis of age, family and size etc. In this type of segmentation, firm will design its
marketing policies by differentiating its customers and analysing there perception
towards the organization.
 Psycho graphics: In this type, the organization will select its market segment on the
basis life style and interest of consumers (Becker, 2016.) . While designing the schemes
the organization will analyse the life style and behaviour of consumers. For example: For
business class people, they have to develop high facilities and special hotel booking etc.
 Behavioural Segmentation: This is also a major segmentation in which the firms
decision related to targeting potential customers is based on behaviour and decision-
making process of consumers.
TASK 2
2.1 Analysis of significance of strategic marketing planning for Thomson.
In travel and tourism sector, the strategic marketing is considered as combination of firms
objective of marketing and strategies used utilized by the firm to achieve these objectives. In this
context, as an assistant manager of Thomson, it has been suggested that the firms should use the
SOSTAC model for the strategic marketing planning to Thomson for the designing the holiday
packages for the Turkey and Spain which is determined below:
 Situation analysis: In this, for making effective market decisions and developing
strategies, the firms has to analyse the firm has to analyse its market positions and the
factors that affects there are business operations and consumers perception in market
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(Dolnicar and Ring, 2014). In this context, Thomson will analyse its current market
strengths and weakness on the basis of SWOT analysis and analyse that they have an
effective market reputation that helps them in attracting the customers and development
of effective policies.
 Setting objectives: Thomson has to set objectives by analysing what it wants to achieve
from this trip. The basic objective of Thomson is earning profit and to achieve this, it has
to develop effective marketing strategies.
 Strategy formulation: In this, for the achievement of objective, the firms has to develop,
form effective appropriate market strategies. This will enable the Thomson to attract its
customers and earning more profits in their business operations.
 Tactical development: In this element of model, the firm will analyse its solutions to
implements it policies through effective market research and study of various
environment that helps them in getting an effective strategy for the promotion of various
effective accomplishments and effective communication channel through which they will
be able to provide information to their customers (Reino and Hay, 2016).

Apart from this, there are some points have been discussed that determines importance are:
 It supports in making effective and appropriate strategies for achievement the defined
objectives.
 It helps to identify and roles the roles and responsibilities of the employees.
 Suitable for the allocation of resources and utilised in appropriate manner.
 Supports in booking of quality hotels and flights for comfort of passengers
2.2 Discussion on relevance in marketing research and information.
Marketing research is recognised as the process which joins the customers and other parties on
the basis of which the firm will get the information required to design the tour packages for the
turkey and Spain (Smith, 2014) . In this context, It has suitable for the organizational to apply
DODCAR model to analyse the relevance of marketing research and information. These model is
explained in context of Thomson such as:
 Design and identify the issues: In this, Thomson is required to analyse the problems that
affects them in making strategies and taking decision related to selection of suppliers.
7

 Setting objectives: After recognising the issues , it is essential for the firm to develop
appropriate objectives so as to resolve the problems. It is important as it provides a
direction to overcome the consequences (Xu, Tian and Zhang, 2016).
 Design the research plan: In this, Thomson develop the plan related to the research in
that particular field.
 Collection of plans: Thomson applies that plan and receive the information by utilizing
various appropriate methods which involves observation, questionnaire, face to face
interviews and feedback forms etc.
 Analysis of data: In this step, firm assess and evaluate the information they have
gathered by using tools and techniques of marketing.
 Report the findings: And in end, the Thomas cook reports the obtained outcomes to the
top management and creates strategies for trip
Significance of marketing research for thomson
 Through effective marketing research the firm will be able to get the reviews of
customers towards their tour packages.
 It provides them information about the customers requirements related to the services like
accommodation, food and travelling etc.
 It also provides them information about the environment of countries in which they are
planning the tour packages for the customers.
2.3 Analysis of influence of marketing planning on the society.
There are some positive and negative impacts have been analysed that strategic planning will
make society are explained below:
 Product Information: For providing information to consumers about the services,
Thomson will utilize its website and Television advertisement for providing all the
information regarding the tour such as decided flights, timings, hotels, Turkey and Spain
tourist destinations, days and nights, various facilities and services, etc. This is to be
provided at in the appropriate cost to the customers which also saves the time by
providing simple and easy access.
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 Better standard of living: Thomson has to utilize effective policies of marketing which
provides them support in increasing the living standard of people in society. Information
about the quality services of the summer holidays influence people to buy tickets. This
trip aware them about the various things which somewhere increase there standard of
living.
TASK 3
3.1 Determination of problems in elements of marketing mix in context of Thomson
These are considered as the elements of marketing mix which plays an important role in
introducing nay new product or service in market. While deciding this application of elements
like products price, place and promotion the international firms have to face various challenges
and issues such as rise in cost, wastage of time, rise prices of services, improper utilization of
resources and inappropriate communication etc (Xu, Buhalis and Weber, 2017). In this context,
the Thomson has to face various challenges related to the place, price of the tour programs and
services to be provided in the trip.
Apart from this, the company will also face problems in deciding various practices that
have to apply in order satisfy the needs of consumers. Services which are offered by Thomson
are not in physical appearance which makes the people to consider them twice before making
any plan. Thus, the firm has to face problem in deciding and selection of tourism services as per
the decided budget. These major services cover destination attractiveness, ease of destination,
services, accommodation and other things which are not possible to manage ta last moment.
3.2 Assessing the significance of marketing mix in service sector.
Apart from the above analysis, there is great significant of marketing mix in the services
which determines the functions that organization has to perform in relation to prices. In this
context, Thomson has realized that the quality of services which are offered by them should
relates to the customers needs and wants. These services include of Thomson includes, Hotels,
food which are most important to influence the customers. It makes an impression on people
while selecting a tour operators in the future. Quality and value of these services makes people to
prefer the same company next time also and helps in building good brand image among them.
Apart from this, the places selected by the organization are beautiful, natural and historical
which are mostly preferred by the people Moreover, it has uses the those facts that supports in
increasing the growth of sales and providing services effectively (Mossaz and Coghlan, 2017 ).
9

For the promotion of program, company has to use various methods like advertisements, sales
promotion, telemarketing and publicity etc. this type promotional methods will support them in
influencing the people and society to make bookings in their program. Thus, these some
importance of marketing mix in service sector which are considered as suitable by every firm.
3.3 Application of the concept of total product of tourism.
In context to travel and tourism sector, there are various components which are required
to form a total tourism product (Siguaw and Simpson, 2015). They can be attraction,
transportation, accessibility, accommodation, amenities, food and pricing. The concept of total
tourism product is combination of various organisations such as food and beverage, Aviation,
hotels, trekking, and many more. In case of Thomson group that provides attractive holiday
packages to the customers reduces their efforts of searching different firms for having an
amazing experience. The services offered by the company are extra-ordinary and higher than the
typical traditional services which are limited to travelling and staying.
Further, Thomson is a one-stop platform on the basis of age demography. The holiday
packages of the organisation are designed by considering people for all age group. For instance:
visits to pilgrimages for elderly people, museums for completing the demands of mid-age,
amusement parks for kids and adventures for youth. Thus, this is a significant factor, considering
which people decide to select packages rendered by different organisations. That is why, firms
are advised to develop total tourism product. This will increase the customer figure and hence,
profitability will be enhanced.
TASK 4
4.1 Assessing the promotional mix nature and integrated role.
Just like marketing mix, promotional mix also plays major role in increasing the company sales.
Thomson group should make best use of it. The major elements of this tool are as follows:
 Advertising: In this element of the promotional mix, various ideas, thoughts related to the
products are expressed to the public by using various mass and print media channels.
These means can be TV, radio, hoardings, pamphlets, brochures, etc. In context to the
present scenario, Thomson can make good use of this technique to advertise the summer
holiday plan. This method of promotion covers a large audience that can be targetted
(Petrova and Mason, 2014).
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 Public Relations: This method of adverting is used by the Thomson to sale the products
and services by the third party. It is also known as travel agent. Thee agents possess good
relations with the consumers. Sometimes, entities performs some activities that can bring
the name of firm in limelights. For example: Social initiatives taken for various causes.
 Personal Selling: In this method of promotion, oral representation and communication is
used by the organisations to sell their services and products. This type of technique is
generally used by the tour agents that roam around the world to promote the services of
the company. Further, they have large networks that can benefited the entity.
 Sales promotion: This tactic is used to generate immediate traffic and cash-flow. There
are several method which can be used for such type of promotion such as free sample
service, tie-ups with aviation sector, etc. (Siguaw and Simpson, 2015)
In addition top this, there are several other techniques of marketing such as direct, event
& sponsorship, internet, etc.
4.2 Planning of integrated promotional campaign for Thomson.
 Circumstance Analysis: Market research will be done in this phase. This will be
performed to analyse the rising needs and demand of customer from the services of the
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Illustration 3: Elements of promotional mix
Source: Horner, 2012

entity. All other business operations will be carried out on the outcomes generated in this
step.
 Promotional Goals: On the basis of the results gained from the context analysis, goals for
the entity are setted. These promotional goals should be based on SMART criterion.
Further, segregated objectives should also be developed in this phase.
 Promotional Strategy: The goal established for the promotion of the services can be
achieved by preparing an effective strategy so that work can be processed in right
direction. It consumes the maximum time of the process
 Co-ordinated Communication: In this phase, the prepared strategies are communicated
with the different departments. It helps in maintaining transparency in the operations that
can bring effectiveness in the operations.
 Implementation: After the evaluation of the prepared strategies, they can be implemented
in the business. All the factors are required to be consider while execution.
 Control and Evaluation: After implementing any strategy in the organisation, it is
necessary to evaluate its effectiveness. This monitoring should be done so that,
ineffective tactics can be modified or altered.
Justification:
If Thomson Group will plan this method of implementation of promotional strategies,
then it will help in achieving business objectives. Firstly, it will ensure the appropriate
development of tactics by research. Further, setting of goals will provide a guideline to be
followed. Also, effective communication will assist in rendering right information and reduce
errors. Monitoring of strategies will help in identifying the flaws in the plan that can be removed.
On behalf of the results, the modifications and the alterations in the plan can be made.
CONCLUSION
In this report, it has been summarized that there is great significance of marketing in
travel and tourism sector as it provides major support in influencing the people towards the
country. It is a continuously growing sector as per the increasing awareness among the people
towards this industry. In order to influence the individuals and society, various international tour
12

operators like Thomson are using various marketing innovative strategies. Thomson is
considered as most successful tour operator which is designing the tour to Turkey and Spain and
it has considered various marketing elements through which it will be able to achieve its
objectives. Apart from this, for satisfying the needs of customers there are various strategies have
been developed by the firms which supports in increasing the demand of tourism in UK.
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