Marketing Principles and Practices in Tourism Sector Analysis Report

This report analyzes marketing principles and practices within the tourism sector, focusing on The Travel Corporation (TTC), including its brands Contiki and Trafalgar. The report examines how TTC applies the marketing concept, develops its marketing philosophy, and manages situational factors (COMP) to position its products for different target markets. The analysis includes an examination of the organizational background of TTC, its multi-brand approach, and the similarities and differences between Contiki and Trafalgar. The report further explores how situational factors influence customer buying decisions and product development, discussing how TTC has tailored products to suit various target markets by considering the perspectives of both the customer and the organization. Finally, the report assesses the components of a Contiki product and how consumers evaluate its qualities and value, influencing their product expectations. The report provides insights into how TTC's marketing strategies contribute to its success in the tourism industry.

Running head: MARKETING PRINCIPLES AND PRACTICES IN TOURISM SECTOR
Marketing Principles and Practices in Tourism Sector
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Activity: The Travel Corporation
The specific learning outcome for this activity: After studying section 1 and 2 students should be able to demonstrate their
knowledge of the unit by relating their learning to the following example:
 How The Travel Corporation [TTC], through their brands, has adopted the marketing concept.
 How TTC develop a unique marketing philosophy, manage situational factors [COMP] and position their products to
appeal to different target markets.
Organisational background: Contiki Tours began in 1962 as Tiki Tours, by a New Zealander, John Anderson, who, according to
his autobiography, simply wanted to see Europe as economically as possible. To achieve his goal, Anderson, put the deposit on a
large van, modified the van, printed some flyers, converted 11 prospects, and went on a 12 week tour of Europe. In doing so he
spread the cost of his sightseeing, fell in love with a fellow traveller, overcame a number of challenges, and in the process started
what has become one of the world’s most recognisable tour companies. Anderson, initially positioned Contiki Tours to appeal to
travellers between the ages of 19 – 29, however, this was later enlarged to 18-35-year-olds. Anderson’s autobiography outlines the
marketing challenges of improving revenue, reducing costs [as a percentage of sales], and building the value of the business. In
time, the popularity of the Contiki products attracted the attention of The Travel Corporation, who subsequently purchased Contiki
Tours.
According to The Travel Corporation website [ www.thetravelcorporation.com ]; TTC are a 90-year-old, family owned organisation
who are committed to the long-term and sustainable multi-cultural tourism, they are debt free and free from some of the pressures
facing many public companies. They have a multi-brand approach with a portfolio of approximately 30 distinct brands serving
different market segments; the brands span guided tours, holiday packages, luxury hotels and river cruises, they operate in 70
countries across 5 continents, have 10,000 staff, and welcome 2 million customers per year.
The Travel Corporation philosophy: the TTC website outlines
 A simple philosophy … to create enriching experiences for our travellers by combining an unbeatable mix of exceptional
service and quality at great value.
 A clear set of values … We are committed to establishing lasting relationships with our customers by exceeding their
expectations the first time and every time, through consistently delivering outstanding quality of service, experience and value.
In addition to the Contiki Tours brand another well-known brand in The Travel Corporation’s portfolio is Trafalgar Tours. There are
similarities and differences between the Contiki and Trafalgar brands. The core products appear similar, however, to appeal to
different target markets, plus - the expected products and the augmented products are quite different.
Theoretical background: Regardless of the organisation, marketing practitioners must manage a number of product and brand
considerations; different organisations have different approaches based on the characteristics of the customer, the organisation,
the market, and the product [COMP]. However, the type of market demand often plays a major role in determining how an
organisation crafts their strategic approach to the market. Market demand is generally regarded as either homogeneous or
heterogeneous. Homogeneous demand is when all consumers have similar needs and one product will enable the organisation to
achieve their marketing objectives, often when demand is homogeneous, organisations will adopt a low-price strategy with limited
product augmentation to gain volume and market share. Heterogeneous demand is when the needs of the market segments are
dissimilar and market share can only be achieved through distinct products for each market segment, often when demand is
heterogeneous organisations adopt an augmented product strategy where each product is embedded with qualities that are
sufficiently attractive that the selected customer segments are willing to pay a premium to obtain.
Please answer the questions on the following pages:
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Q1: Outline your understanding of the marketing concept as the foundation of a marketing philosophy. Discuss how this
may influence The Travel Corporation, and how it may view and interact with TTC customers.
Answer: From the aforementioned case study, the marketing concept has been developed. The case study succinctly elucidates
the marketing strategies and criteria pertaining to the business development in tourism sector. However, it was no conventional
strategy to have focused on the innovative marketing strategy for the entire understanding with its different understanding of the
process. This outline would thus concentrate in the basic understanding on the marketing process. Contiki Tours in association
with TTC has been making good business in the New Zealand market. While understanding the background of the marketing
concept of Contiki Tours led by John Anderson, this has been regarded of the cases. In this context, this has been regarded of the
fact, pertaining to the effective understanding that this has to be regarded because of its general understanding. The following was
the marketing philosophy undertaken and idealized by John Anderson: “to create enriching experiences for our travellers by
combining an unbeatable mix of exceptional service and quality at great value.” In this context, this has been regarded
pertaining to the factor that was highly expertise with due case of the specific understanding of the forces.
While talking about the services and values and its productive ensemble in terms of tourism business, this has to be
regarded pertaining to the effective understanding of the process that was highly effective for the business purpose. In order to
philosophize the business strategies, there are several procedures, for the amalgamation of highly effective business cases.
Though there are remarkable differences between Contiki and Trafalgar brands, the specific reason behind the successful
understanding has been the basic consideration of the cases. Since Contiki has latter merged with TTC, the latter needs to take
care of individual business trend thus focusing on the entire business idea. As a matter of fact, the core value of the tourism
business ought to be maintained.
This would influence The Travel Corporation in a positive manner. Due to the practice of multi-brand approach, this has to
be regarded of the fact that the specific reason for the entire criteria has to be taken into certain understanding of the specific
marketing strategies. The multi-branding criteria of TTC have actually excelled the business process of such a family business.
Because of the specific understanding this has to be regarded, the specific understanding has to be taken into the entire process of
its different core process. This philosophy has not only facilitated the business process in terms of marketing of the company, but it
has also provided ample opportunity to work with various employees focusing on multicultural workforce attitude. Because of such
impactful decision to pursue the job, there has been a thorouogh process for the entire understanding of the issues to find out its
deliberate business changes according to the need of the local market.
Q2:A recurring theme of this unit is how situational factors [COMP] influence the buying decision process of the
customer and the total product that is produced by the organization. After visiting and analyzing the Contiki and Trafalgar
websites discuss how TTC has developed products to suit different target markets. Ensure that you demonstrate your
knowledge of COMP factors and provide the perspectives of the customer and the organisation.
Answer: So far the marketing concept is concerned, any brand, irrespective of industry and business type is a longitudinal
representation of the value propositions of the goods and the services- in short the value proposition of the product that is quite
unique in nature. Since this has been regarded of the product value the proposition needs to be taken into serious account. In
order to identify the relationship between brand, branding and the COMP factors, the external and internal marketing factors of the
organization would be taken into consideration. Having studied the marketing aim of Trafalgar, it can be cited in the following
manner:
i) Bringing back people to the pub
ii) Changing the ambience of the pub into the ambience of a restaurant so that it would cater higher number of the
customers
iii) Increasing effective market share so as to ensure the growth of the business
iv) Providing more facilities to the people coming to take service from the company and promoting the service quality to
the people
v) Ensure the provision of secure atmosphere to the customers who are coming with their families
vi) Respectful and responsive treatment towards the visitors
While considering the positioning of the market statement of the company, it can be stated that the Trafalgar tends to provide
profitable and good quality of service to the greater number of the customers. Following positioning statement of Contiki would
ensure effective business quality of the company:
i) “to anyone aged 18-35 , Contiki is the tour operator that provides an unparalleled life changing experience”
ii) “ to anyone aged 18-35 , Contiki is the tour operator that provides an enjoyable and memorable lifetime experience”
From the positioning statement of these two companies it can be stated that both of them are up to providing quality services
that would be cherished by the customers for a long period of time. With the changing face of the social media this has been
regarded pertaining to the effective understanding of the cases for the impactful understanding of the entire case. The target
market of Contiki has effectively been based on the demographic market segmentation however; this would be focusing on the
specific understanding of how the market segment would be channelized to the successful integrity with TTC.
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On the other hand, the target segmentation for Trafalgar has been geographic one focusing on the people of a specific
region i.e. Sydney. However, considering the core objective i.e. to provide the best quality service to the customers would help
TTC carry out its own business objective by continuous product development programme. So far as the COMP factors are
concerned, the product development process would be influenced by the different market segments. TTC might face some
troubles pertaining to the specific understanding of the difference in market segment identified in different countries. In this
context, this has been regarded of the fact that in most of the cases the specific reason for the entire business practice needs
to be taken into consideration pertaining to the entire understanding of the process. TTC would, effectively, purpose to the
reflexive changes of the product depending on the usage of the concept. In order to understand and analyse the perspective of
organizations and the customers, this would be focusing on the specific understanding of the process pertaining to the
assessing the specific need for the marketing criiteria . In this case, the tool of COMP factor would the most apt one to analyse
the entire procedure. COMP constitutes of Customer, Organization, Market and Product. Since the customers approach to
different brands depending on their choices, awareness and attitudes towards using a specific product type, the brand
reputation is highly influenced by that choice. The brands working with TTC offers guided tours, holiday packages, luxury
hotels and river cruises. It can thus be said that TTC has designed the service in such as way that in most of the cases the
customers are highly satisfied. The designing criteria have stringently focused on the customers’ point of view.
On the contrary, there has been organizational viewpoint as well that would focus on the market segmentation of the
company. In this context, focus on brand equity is highly important. For ensuring the customers faith upon brand, rudimentary
quality service provision becomes important and TTC actually provides the same.
Q3: The total product has three parts product considerations, product layers, and product components. Study a Contiki
[or a Trafalgar] product. Discuss how a ‘typical’ consumer would, in the first time-zone, estimate the qualities and value of
the 6 product components. Then discuss how this would help them to form product expectations that would be evaluated
in the third time-zone.
Answer: Since there is a difference in the mix of consumption of the product in different countries, this has to be regarded for the
entire case to find out how effective this would be for the brand decision. In this concept there is a clear understanding of the
products for the excepted case where the product is highly impactful for the entire understanding of its maturity stage. In order to
ensure customer loyalty, Contiki has been focusing on the short span tour conduct in Europe that every customer would love to
visit. Within the shorter span, the customers can visit multiple countries in the continent thus enjoying the heritage and natural
beauties. As a matter of fact, this has to be regarded pertaining to the effective understanding of the fact that has been posed with
its objective to ensure customer loyalty. Following the Contiki reviews, it was regarded that the basic structure is to provide a
specific understanding of the process pertaining to the quality of service the customers are provided by Contiki.
So far the product layers are concerned, it can be stated that the core product that refers to the essential need to address
to the customer is the tour to be conducted by the company. The actual products are the service provisions such as guided tours,
holiday packages, luxury hotels and river cruises. The augmented product is the additional knowledge and the services an
individual customer receives during the tour.
While talking about the component of the products, three layers of components would be taken into consideration. These
three components are –
i) Core Component
ii) Packaging component
iii) Support Service component
The core component is nothing but the design and platform of the product being discussed. In terms of tourism services, the
core component of the product is attraction, accommodation, accessibility and amenities. Since this has been regarded of the
factors for the entire understanding of the cases for the basic criteria of the issues related to different product understanding.
The packaging product is its brand equity and the support service product would refer to the extra services pertaining to the
effective brand services.
Q4:The circle of satisfaction outlines the outcomes of interactions between an organization and its customer[s]. After
reviewing the TTC, Contiki, and Trafalgar websites and the unit information; explain how transactional satisfaction,
collective satisfaction, and cumulative satisfaction influence the decision making of future consumers and how TTC
manage customer reviews.
Answer: Circle of satisfaction considers being the specific understanding in terms of creating its values with the customers.
Followings are the elements of the circle of satisfaction:
i) Quality
ii) Value
iii) Episodic satisfaction
iv) Cumulative satisfaction
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v) Trust
vi) Loyal Behaviour
vii) Competitive Advantage
viii) Increase profitability
In terms of creating the circle of customer satisfaction, the following theories and concepts are taken into account:
i) Expectancy disconfirmation theory
ii) Overall Customers satisfaction
iii) Affective response
iv) Perceived Value
v) Fulfilling Important Needs
vi) Fulfilling Changing and New Needs
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