Marketing in Travel and Tourism: Thomson Group Case Study Analysis

This report provides a detailed analysis of marketing strategies within the travel and tourism sector, focusing on the Thomson group's approach to planning tours for summer holidays. It explores the core marketing concepts, the influence of the marketing environment on individual tourism businesses, and factors affecting consumer motivation and demand. The report also examines the principles of marketing segmentation and its application in planning, the significance of strategic marketing planning, and the impact of marketing on society. Furthermore, it delves into the issues of the traditional marketing mix, the importance of service sector mix elements, and the concept of the total tourism product. Finally, it covers the integrated nature and role of the promotional mix and its effective justification, along with the importance of investigation programs in gathering relevant information for managers.

Marketing in travel
and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concepts of marketing in travel and tourism sector......................................................1
1.2 Influence of marketing surrounding on individual tourism business....................................3
1.3 Factors influencing consumer motivation and demand in tourisms sector...........................4
1.4 Principles of marketing segmentation and its uses while planning.......................................5
TASK 2............................................................................................................................................6
2.1 Significance of strategic marketing planning for Thomson..................................................6
2.2 Relevancy of marketing research and information to manager............................................7
2.3 Impact of marketing on society.............................................................................................9
TASK 3..........................................................................................................................................10
3.1 Issues in traditional marketing mix.....................................................................................10
3.2 Importance of service sector mix elements for tourism industry........................................10
3.3 Concept of total tourism product to an individual tourism business...................................11
TASK 4..........................................................................................................................................11
4.1 Integrated nature and role of promotional mix...................................................................11
4.2 Covered in Poster................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is an ongoing process which is very indispensable for entire corporate world
because it supports in promoting their goods and services across international boundaries in
order to attain their objectives. Therefore, due to adopting effective promotional strategies,
tourism sector is also growing in a fastest way. Basically, marketing for travel and tourism
industries consist of designing advertisements and various promotional offers that will encourage
customers towards travelling business (Garín-Muñoz, 2011). This assignment is going to
highlight strategies or policies of Thomson group during planning tour for summer 2019
holidays to turkey and Spain. In fact, Thomson travel unit was owned by Thomson business firm
of Canada by having its headquarter in Luton UK and in recent days they are struggling very
hard for becoming a lead player in tourism industry. However, project consist of core concepts of
marketing by showing influence of surrounding on individual travelling group. Later on, it shows
influence of macro or micro factors on consumer motivation as well as demand towards industry.
Furthermore, report will throw few lights on issues encountered by traditional mix as well as
significance of extended marketing mix in service sector. Lastly, it covers nature of promotional
mix and its effective justification as well as importance of investigation programmes in gathering
relevance information for managers is also outlined.
TASK 1
1.1 Core concepts of marketing in travel and tourism sector
Thomson group is one of the famous tour operating organization which is popularize for
its impressive and reasonable holiday packages for roaming around the world. It was founded as
a part of Thomson travel unit in around 1995 and its original name was Thomson tour operation
which was renamed in almost 1997 (Pérez-Amaral, 2011). In initial years this company was
struggling very hard for becoming a lead player in tourism industry by making impressive plans,
policies, strategies, schemes, affordable vacation packages, planning for summer holidays,
winter, cruises, last minute packages etc. As a assistant marketing manage of this successful
group it is very essential to pay full attention on necessary terms which is needed during
planning process for dealing with customers. However, marketing is a term which consist of set
of institutions, activities, and an effective process that will aid while interacting with customers
and exchanging products or services to precious consumers by fulfilling their needs or wants in
1

an effective way. Basically , there are numerous of marketing concepts which are executed by
tourism industry while encouraging their goods at marketplace. It covers several decisions which
are taken by business for outlining obstacles of promotion. Therefore, it is very indispensable to
get aware about numerous kinds of concepts of marketing because it will assist in understanding
target consumers whosoever are interested in buying specific items which includes; desires of
buyers, strategies of competitors as well as functional coordination (Goeldner and Ritchie, 2012).
Thus, various core concepts of marketing that are related with tourism sector are outlined as
follows:- Needs, desires and demand:- First and foremost step of Thomson group is tp identify
wants or basic needs of tourist in order to fulfilling it in a minimum duration. However,
manger of an enterprise is going to asses the taste, preferences, choice and likes of
customers for attracting them towards their offerings. Value, satisfaction and quality:- An organization needs to focus on their quality or
maintain their standardization so that customers may accept services which is offered by
Thomson group. Marketing department of an enterprise trying to understanding the
expectation and demand of various travellers by analysing their choices and try to
modified their existing policies for making best possible products as compare to their
rivalries (Goodall and Ashworth, 2013). Goods and services:- Thomson group is focussing on their summer and winter packages
by serving their customers in a best manner as per their needs and demands. Along with
this managerial team trying to make effective policies to overcome their barriers which
was faced by them during serving customers. Market:- This factor falls under external category which is analysed by merchandising
team of an enterprise. In fact, it will assist as well as shows corrective path for
understanding strategies of competitors and other forces to prepare new schemes of
development.
 Exchange, transaction and relationship:- According to this if an individual is going to
buy some products in exchange of capital then it is known as exchange relationship
between purchaser and seller (Hahm and Wang, 2011). On contrary to this, when items
are transferred to the buyer by using some modes of transportation then it is consider as
transaction.
2

At the end it has been understood that core concepts of merchandise plays a very vital
role in attaining objectives of a company as well as supports in gaining trust or loyalty of
domestic and foreign clients.
1.2 Influence of marketing surrounding on individual tourism business
Thomson holidays is consider as a one of the biggest or famous tour operator in tourism
industry due to their impressive and unique ideas of operating their business. In fact this
enterprise is still developing and coming up with numerous of different holiday packages which
will be influenced by macro environment (Hall, 2013).
Advertising is an imperative capacity of an association which help in advancing different
items and administrations. There are sure ways which are utilized by organization for creating
impactful advertising condition and furthermore increment travel and tourism segment exercises.
The business is controlled and overseen by promoting division that will dissect outer obstacles
and make flute player answer for manage it. There are two ecological factors which affect
business operations of Thomson group, for example; extrinsic and intrinsic components.
Micro and macro environment :-
Smaller scale condition identifies with all the inside components which straightforwardly
influences business operations and capacities. It is controlled and overseen by organization. On
the opposite side macro environment incorporates outer variables which can't be controlled and
overseen by organization and it straightforwardly or in a roundabout way impacted business
exercises. These are vital for each association that assistance in assessing condition changes
which happen outside and inside administration. They required to create compelling
methodologies which help in keeping up the firm edge in advertise (Hall, Timothy and Duval
2012). Along with this there are number of factors which makes marketing department more
significant are explained as follows:-
 Helps in identifying strategies of competitors.
 Determining choice, taste and preferences of consumer for further modification in their
holiday packages.
 Assessment of societal change.
 Understand the basic needs or wants of tourist.
 Highlight the fluctuations in currency rate.
3

Therefore, all these components plays a very vital role in achieving objectives of an
organization because it shapes the association in an effective manner by considering relevant
information and data.
The travel and tourism area contributing over 7% to the nation economy and procure
approx. 18 million voyagers for each annum. For instance; Egypt has given sound condition
place and areas to their travellers. It has exceptional geographic highlights. This part will
likewise include more than approx. 13% to nation economy. Therefore, for attaining set of
objectives or goals managers of refereed organization needs to segment their market for
understanding behaviour or choice of domestic and foreign products (Hays, Page and Buhalis,
2013).
1.3 Factors influencing consumer motivation and demand in tourisms sector
There are so many factors which affects the motivation of tourist to travel Turkey and
Spain. Factors which affect motivation for travelling are internal and external factors:
Internal factors
Intrinsic motivation: This refers to the behaviour of individual which occurs from
internal values. In other words, motivation is something which affects behaviour within a person
just because it is satisfying theory. The inner values opt tourist to have a intangible rewards
like(fun, assurance etc.). Motivation of inner values assures one's capabilities on various
emotional fronts. Some of intrinsic motivation are:Attitudes of tourist: Somehow the knowledge of person about place affects in positive and
negative way whether to visit once at that place or not.Values or beliefs: Every tourist has a specific mode of thinking for travelling at a particular
country or place and tourist values and beliefs about that is socially and on personally basis it is
acceptable.Tourist's perception: Perception means their senses says something, person is having a
observation, listening power, with that a individual make perception about a place , person or
something (Hudson and Thal, 2013).Personality of tourist: somewhere nature of the tourist plays a effective role in selecting a
place for travelling and nature does affects motivation in tourism.
External factors:-
4

Family and Age: Today, if family is having a double in income then they plan to have
travel to Turkey and Spain. If a family is dependent on single person as earning than they plan to
have a visit to some domestic places only. Somewhere the family and the income of the family
does affect the motivation of individual to travel.
Culture or social class: Thus the culture of people affects their thinking too. The family
who has visited to Turkey and Spain, than they will motivate others to have a visit for once at
those places where they travelled (Kayar and Kozak, 2010.).
The factors which affects demand for tourism are as follows:
Income of consumers affects the plan to travel Turkey and Spain in near future, not
availability of funds affects the plan of travelling and plan drops for near future.
Taste of consumers too affects the travel like (food or culture etc.). each families has
different like and dislike, somewhere this also affects in travelling.
Availability of complimentary goods, if prices of air travels increases than the idea of
travelling to Turkey and Spain drops again.
1.4 Principles of marketing segmentation and its uses while planning
Market segmentation thus helps in segmenting the market and it also helps in marketing
planning. Thomson has used segmentation of market with marketing planning. It is very
effective to use marketing segmentation with market planning in travel and tourism.
Market segmentation, targeting and positioning helps Thomson to clarify his problems
about the market. With principles company has divided his products and services according to
market. Organisation is targeting different groups in his planning, marketing planning include
(details about current situation of company, whom to target, short term goals, marketing tactics,
cost of all these).
Thomson will look for the current situation he is having of his company and will segment
the market into small groups and than target market according to his goals and objectives,
somehow Thomson is going to use different marketing tactics to have a great share of market for
his tourism industry and organisation will look for the cost they are spending in all these
principles and marketing planning (Molina, Gómez and Martín-Consuegra, 2010).
Company can have a great large market share in travel and tourism sector. Organisation
will work according to the needs and preferences of customers. Thomson can tailor his services
according to requirement of consumers. Thomson specially motivates the customers to visit
5

Turkey and Spain in near future. Through planning and marketing segmentation he looks who
are making plan to visit in near future, Thomson motivates those to have a visit of such place for
a once. Company provides many other products and services to different customers. Cost
effective services are provided by Thomson and they earns in a good range.
Thus it is required for travel and tourism company to have a positive feedback from tourist and
the organisation is having that. Although, Thomson's travel and tourism company is a brand in
UK, they also have existing distribution channel for different products for tourist.
TASK 2
2.1 Significance of strategic marketing planning for Thomson
Planning is very indispensable for every organization because it helps in minimizing
barriers or obstacles which create problems while accomplishing business activities. In fact
strategic planning provides corrective path to entire association as well as aids in minimizing
further mistakes or errors. Basically, marketing surrounding in tourism sector is totally dynamic
which is not easy to predict due to its complexity (Morrison, 2013). Therefore, as assistant
manger it is essential to make effective schemes by appropriate planning process for building
structure of an enterprise. Thomson is multinational company which was established in around
1965 by Roy Thomson which provides qualitative goods or services to their desired domestic or
foreign purchasers. But this enterprise is also having some sort of strength and weakness or
opportunities and threats . Thus, an effective SWOT assessment of referred association is
described as follows:-
Strength:-
 One of the oldest organization in travel
and tourism sector.
 Gain maximum experience as well as
trust or loyalty of numerous of
travellers.
 Having customization and flexibility
features which is very beneficial for
them in attaining set objectives.
 Prepare impressive and affordable
Weakness
 lack of communication between
employees and employers due to large
number of enterprise.
 They are having number of long term
debts due to implementation of long
term projects.
 Failure in estimation due to occurrence
of uncertainty.
 Absence of direct contact with clients.
6

holidays packages.
 Provide last minute services. Always come up with innovative and
creative ideas.
 Lack of skilled or knowledgable
labours.
Opportunities:-
 Expansion in business due to increment
in customers demand.
 Maximization in demand of tourism
industries.
 Competitive marketplace. Introduction of free trade policy is also
one of the major benefit for companies.
Threats:-
 Emergence of huge competitors.
 Introduction of similar products by
rivalries.
 Presence of tough competitors at
international marketplace.
 Lack of capital.
Assessment of SWOT is an appropriate technique for understanding current situations of
company in order to conduct further changes accordingly. Along with this it also helps in
enhancing performance of entire associations by identifying hidden barriers and assist toward
improvement as well as to increase profitability. Hence, some major advantages of Thomson
group are described below:-
 Helping in overcoming obstacles or barriers.
 Make an appropriate or effective planning of marketing campaign.
 Increasing productivity of an organization by satisfying customers.
 Eradicating conflicts and disputes between superiors or subordinates for maintaining the
peaceful environment (Moutinho, 2011).
 Get aware about available competitors.
Hence, it has been observed that strategic planning is very necessary for success and
growth of an enterprise by eliminating all the issues and barriers.
2.2 Relevancy of marketing research and information to manager
Investigation is an ongoing process whose main objectives is to gather accurate
information and data which is used by enterprise during decision making process. Marketing
research is imperative in travel and tourism division for Thomson group. This will help in giving
them data which are identified with contenders, purchaser taste, most recent market patterns,
7

necessities. Investigation give a plan to organization for recognizing openings and dangers at a
marketplace. All these data is utilized for assessing consumer choices, checking entire execution
and understanding whole procedure of administration. The way toward promoting is extremely
straightforward, it incorporates information accumulation, assessment of discovering,
information investigation and conveying data to all organization office.
Advertising research is utilized by various division to gauge all market passage
procedures of an association (Park and Oh, 2012). Managers of Thomson will utilize this
strategies for identifying its rivals and create key way to deal with showcase. This will help in
recognizing different sorts of methodologies which help with going into new market and
furthermore increase most extreme benefit. It will help in fragmenting entire process, situating
and focusing on specific bundle in market, for example, Egypt and Morocco. It likewise give
more data which will help an organization in refreshing its data framework.
Supervisors of referred to organization will utilize different sort of advertising capacities.
They likewise increase inside information of entire market and are required to create reasonable
key arrangement for the firm. This is right action which help in getting ready new plans and
arrangements for the organization. It helps with rising arrangement of big business and enable
directors in knowing extensive market to range and openings.
Therefore it has been observed that marketing research and information is a key to
success because it will shape the entire association by guiding towards corrective path. Along
with this, it is very much beneficial for managers in tourism sector. Advantages of investigating
accurate information is expressed beneath:- Decision making process:- Initially, it will guide or assist managerial team during
decisional process by providing precise data. Eliminate chances of errors:- According to this an organization get succeeded in
overcoming their hidden issues by accomplishing task and activities in an appropriate
manner.
 Allocating funds:- Precise information regarding requirement of capital to specific
department is necessary for organization in order to accurate estimation of funds for
accomplishment of assigned task.
8

2.3 Impact of marketing on society
Products and services are finally consumed by society because they are end user;
therefore because of this marketing plans have a greater impact on entire community. Major
objectives of merchandising activity is to convince maximum number of consumers by attracting
towards their impressive holiday package of turkey and Spain. Marketing is a continuous process
through which an organization trying to promote their services and goods with the use of various
appropriate tools for example; advertisement, publicity by websites or television, pamphlets etc.
entrepreneur of Thomson group spend huge amount on their merchandising department for
enhancing their company position at marketplace as well as try to maximize their market share
(Elements of marketing mix, 2014). Apart from this marketing department have a greater impact
on society by providing numerous of benefits which is mentioned as follows:- Informing tourist:- First and foremost step is to provide accurate information or data
about turkey and Spain packages by using various modes of advertisement. It means
selling department of a company is responsible for informing drawbacks or advantages of
goods which is served by enterprise while trip. Managing expectations of customers:- Besides offering precise information and data
they are also trying to understand the needs, choice, preferences of domestic as well as
foreign clients. Actually it is very essential for getting aware about expectation of tourist
before planning tour of turkey and Spain in order to plan everything accordingly. Norms,
beliefs, rules and regulations protect marketers from exploitation, frauds or misleading
claims. Economic benefits:- Maximization in sales of tourist industries employs number of
individuals which resulted in development in economy of a nation.
 Influence consumer behaviour:- If an enterprise can implemented effective marketing
strategies then sales executive get succeeded in changing decision of travellers and attract
them towards their trip by highlighting impressive and attractive destinations in turkey or
Spain.
As per above advantageous it has been understood that promotional department plays a
major role in acquiring attention of visitors for tour of turkey and Spain 2019 in order to gaining
interest of maximum travellers towards trip. Therefore, as a assistant manger of Thomson group,
9

it is required to understand the importance or significance of marketing function towards society.
TASK 3
3.1 Issues in traditional marketing mix
Marketing mix is a cluster of traditional and promotional mix which plays a major role in
capturing attention of millions of visitors by highlighting positive quality of turkey and Spain
trip. Major motive behind adoption of various P'S is to get success and development in dynamic
environment. But nowadays due to emergence of number of competitors and fluctuations in other
factors creates various issues in marketing mix which influence tour operator team. Therefore,
barriers which was identified are 4 P'S of traditional mix are described as follows:-
(Source:- Harrizson, 2017) Product:- Differences in products which was offered by Thomson group during their tour
of turkey and Spain 2019 as compare to other players have a greater issues which
emerges. Along with this in appropriate or later services have a greater impact on
customers minds. In fact it may hamper their image at marketplace due to dissatisfaction
of tourist (The marketing mix 4P's and 7P's explained, 2015).
10
Illustration 1: Marketing and Selling

 Price:- Changes in prices due to reformation in other factors like costing of products or
services, modification in government rules, norms and regulations affects fare of trip.
Thus it may influence decision of various customers. Place:- Instability at locations like dangers or threats due to terrorist attacks, imbalance
because of change in governing policies, contentions or disputes between nations due to
some confusion.
 Promotion:- Inappropriate strategies of promoting turkey and Spain 2019 trip is a greater
issues on this marketing mix which influence development of an organization/
Therefore due to changes or alteration in micro and macro factors affects entire
marketing mix in various manner.
3.2 Importance of service sector mix elements for tourism industry
Service mix is a combination of three other P'S which is also known as extended
marketing mix whose main objective is to highlight hospitality which is provided by
organization to customers as well as employees performing at workplace. Thus, it has been
observed that service sector mix elements are very significant in tourism industry due to number
of reasons that are explained below:-
 Society are end user so it is essential to satisfied their needs and wants.
 Provides safety and security during tour.
Apart from this roles of three elements of this sector is mentioned here:- People:- Compensation, remuneration, training and growth sessions, promotions of
employees, participation of labours ion decision making process is essential for satisfying
subordinates as well as fulfilment of customers demand. Process:- Consider core concepts during upliftment and growth of goods and services.
 Physical evidence:- This element is intangible in nature.
3.3 Concept of total tourism product to an individual tourism business
Total tourism product is specially designed goods whose main objective is to offers best
quality as well as facilities to their consumers by covering all the necessary accommodation,
transportation and other services such as spa, parlour, parks for entertainment and so on.
Basically this concept is very essential or significant for tourism sector or Thomson group due to
various reasons that are highlighted as follows:-
11

 Tourism is bundle of numerous of products which were offering hospitality facilities, air
tickets, departure summons and arrival facilitate with vehicle facilities and so on.
 Several facilities in one package.
TASK 4
4.1 Integrated nature and role of promotional mix
Promotional mix is a cluster of number of tools or modes by which an enterprise may
attract number of tourist by implementing various unique ideas. Manager of tour operator adopt
this method for seeking attention of large number of population as well as disclose all the visible
and invisible terms of products offered by them. Therefore, combination of several tools is
known as a promotional mix and these technique are explained as follows:- Advertisement:- According to this component an organization use various sources for
promoting their services which they are going to offered in their tour. Along with this
they use various elements such as; giving add on Facebook and different social sites or
son on (Harrizson, 2017). Television , radio, magazines, newspapers and internet:- In today's modern world entire
society are circulated with advanced equipments and machines. Thus, usage of
technology is very much beneficial by attracting large number of population living in
different geographical region. Personal selling:- According to this process, managers and sales executive of an
enterprise promote their products by offering themselves as well as directly deal with
various clients. On contrary to this, Thomson group also offers special discount,
advantages on flights tickets etc.
 Public relation:- Mangers needs to create positive relations with local and foreign
clients by offering best services in an efficient way. In fact mutual understanding
between customers and sales executive plays a major role in establishing their goodwill
at marketplace by gaining loyalty of entire society.
All these above promotional mix plays a major role in encouraging trip of turkey and
Spain 2019 in most of the local areas.
12

4.2 Covered in Poster
CONCLUSION
From the above report it can be summarised that marketing activities plays a major role
in tourism sector by adopting various modes of promotions and techniques for obtaining
attention of millions tourist. Major motive of this assignment is to highlight tools which was
utilized by managers of Thomson group for designing tour of turkey and Spain 2019 in an
effective way. Initially assignment explained various concepts of merchandising department that
is; needs, wants, desires, transaction etc. as well as throw lights on necessity of information
gathered by investigation team for decision making process. Major base of this project is
Thomson group and consist of all the strategies, schemes or marketing policies uses by manager
of referred association for planning trip of turkey and Spain. Thus, learner get updated by
effective use of marketing mix or its roles in tourism as well as service industry for satisfying
needs of domestic and foreign tourist. At the end of this assignment, it also explain advantages
of promotional strategies or its campaigning process in gaining trust or loyalty of numerous of
visitors.
REFERENCES
Books and Journals
Garín-Muñoz, T and Pérez-Amaral, T., 2011. Internet usage for travel and tourism: the case of
Spain. Tourism Economics. 17(5). pp.1071-1085.
Goeldner, C. R. and Ritchie, J.B., 2012. Tourism: principles, practices, philosophies (No. Ed.
12). John Wiley and Sons, Inc.
Goodall, B. and Ashworth, G. eds., 2013. Marketing in the Tourism Industry (RLE Tourism):
The Promotion of Destination Regions. Routledge.
Hahm, J. and Wang, Y., 2011. Film-induced tourism as a vehicle for destination marketing: is it
worth the efforts? Journal of Travel & Tourism Marketing. 28(2). pp.165-179.
Hall, C. M., 2013. Wine, food, and tourism marketing. Routledge.
Hall, C. M., Timothy, D. J. and Duval, D. T., 2012. Safety and security in tourism: relationships,
management, and marketing. Routledge.
Hays, S., Page, S. J. and Buhalis, D., 2013. Social media as a destination marketing tool: its use
by national tourism organisations. Current issues in Tourism. 16(3). pp.211-239.
13

Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Kayar, Ç. H. and Kozak, N., 2010. Measuring destination competitiveness: an application of the
travel and tourism competitiveness index (2007). Journal of Hospitality Marketing &
Management. 19(3). pp.203-216.
Molina, A., Gómez, M. and Martín-Consuegra, D., 2010. Tourism marketing information and
destination image management. African Journal of Business Management. 4(5). p.722.
Morrison, A. M., 2013. Marketing and managing tourism destinations. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Park, J. and Oh, I. K., 2012. A case study of social media marketing by travel agency: The
salience of social media marketing in the tourism industry. International Journal of
Tourism Sciences. 12(1). pp.93-106.
Online
Elements of marketing mix. 2014. [Online]. Available Through:
<http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/marketingmixrev1.shtml
>. [Accessed on 7th November 2017].
The marketing mix 4P's and 7P's explained. 2015. [Online].
<https://www.mindtools.com/pages/article/newSTR_94.htm/>. [Accessed on 7th
November 2017].
Harrizson, 2017. [Online]. Available
Through<https://www.b2binternational.com/publications/chinese-marketing-selling/>.
[Accessed on 7th November 2017].
14

15

16

17