Marketing Analysis: TUI's Strategies in Travel and Tourism Industry

This report provides an overview of marketing strategies within the travel and tourism industry, using TUI as a case study. It begins by defining market segmentation, including demographic, psychographic, behavioral, and geographic segmentation, and how TUI segments its customers. The report then details various marketing strategies employed in the tourism sector, such as social media marketing, video tutorials, SEO, and Facebook ads. Furthermore, it explores different positioning strategies, including customer benefits, cost positioning, quality, flexible positioning, problem-solving, parent brand, and product-specific approaches, illustrating how TUI utilizes these strategies to gain a competitive advantage in the market. The report concludes by summarizing the key findings and emphasizing the importance of effective marketing in the travel and tourism sector.

Marketing in travel
and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
Different types of segment regarding travel and tourism............................................................1
Types of Marketing strategies in tourism sector..........................................................................2
Types of positioning strategies....................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
TUI AG is known as the Anglo -German multinational travel as well as tourism firm . It's
headquarter is in Hannover, Germany. It is considered as the largest travel as well as tourism
firm within World (Park, Seunghyun 2016)
. Firms owns hotels, travel agencies, retail stores, cruise ships. TUI operates 380 hotels as well
as 16 cruise ships all over the world by ownership.
Different types of segment regarding travel and tourism
Market segmentation is considered as the process regarding to divide the target market
into the smaller as well as more defined categories (Park, Seunghyun 2016)
. It segments audiences and consumers into the group that can share characteristics that are
similar such as interests, location or needs.
Basically there are four types of market segmentation are mention below
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Geographic segmentation
Demographic segmentation- It is considered as one of the most common as well as popular
types of market segmentation. It focuses on statistical data regarding a group of individuals.
Examples of the Demographic market segmentation such as
Age, income ,gender ,family situation, education, Annual income, Family situation, location,
Ethnicity (Harahsheh, Haddad and Alshorman, 2019). If focuses on the example B2C
demographic segmentation must be a vehicle manufacture that can able to sells a car as firm
must likely target the audiences that have the higher income. While the another examples such as
brands that can able to sells an company platform regarding marketing (Tussyadiah, Wang and
Jia, 2016). It can target the managers ( marketing) within at larger firm such as 500 + employees
that have the capacity to make buying decisions regarding for their teams.
Psychographic segmentation- It categories consumers as well as audiences through factors that
are related to their characteristics as well as personalities. Such as values, attitudes, interest,
lifestyle, Personality traits and priorities and many more. These segmentation focuses on the
factors that are more difficulty to recognises as they are consider as subjective as they are not
considered as data focused as well as needs research to understand and uncover (Park,
1

Seunghyun 2016). Such as Luxury brand might choose to focuses on the consumers that values
status and quality.
Behavioural market segmentation
As psychographic and demographic segmentation both focuses on who are the clients , here
behavioural focuses on how the clients acts (Camilleri, Camilleri and Acocella, 2018). Such as
Spending habits, brand interactions, User status, Buying habits and many more.
Behavioural segmentation needed to know about the actions of consumers. These are the actions
that are related that how the consumers communicate with other brand (Park, Seunghyun 2016).
Here if focuses on the B2B with this segment might be luxury car brand that can choose to target
the consumers that can buy a high end vehicles within the past of few years.
Geographic segmentation- It is considered as the simplest type of the segmentation that can be
categorized consumers based on the borders of geographic. Examples of Market segmentation
are City, ZIP code , Climate, Nations, Radius around a specified location, Urban or rural. These
are the segmentation can focuses on the geographic boundary for example ZIP as well as type of
area such as size as well as type of climate. Such as these of geographic segmentation may be
luxury car firm as they can choose to target consumers that live within warm climates that
require to be equipped for weather such as snowy (Park, Seunghyun 2016). The marketing
platform focuses their efforts of marketing around city, urban centres that might target
consumers to work.
TUI have segmented their customers on basis of demographic segmentation. Here, they
are providing various services to people on basis of age, income, gender, etc. and offer types of
services.
Types of Marketing strategies in tourism sector
The target market strategies adopted by TUI is described below :
Social media
In today's world there is impossible to ignore of social media. They could hire to a social media
manager that have money to burn and also post the products on the platform of the social media.
By posting anything finds the relevant as well as useful information that aids audience to know
more about the business. TUI uses various platforms such as Snapchat, Instagram or twitter to
reach out the businesses or even interact with the consumers that might be looking for services
and products (Tussyadiah, Wang and Jia, 2016). It is considered as very powerful marketing.
2

Video Tutorials
TUI also used video tutorial. They shoot videos and for this they use You tube is
considered as the second largest search engine within the world after the google (Park,
Seunghyun 2016). If someone wants to learn something quickly as well as visually it is the best
way to learn something. Also, nowadays Facebook also post various video that are associated
with different topics. Instagram uses its IGTV for posting videos that are associated with Travel
and tourism videos and so many other content related videos.
SEO
TUI also uses SEO as target market strategy. It is considered as an area regarding marketing that
anyone can be passionate about. It is also focuses that various people are deathly frightened by
this area (Vellas, 2016) . Off course SEO might be frighting as it can be known as the powerful
as well as tries to learn to leverage it. People can take shortcuts with individuals.
Facebook ads
TUI promote ads on their official page on Facebook. It is considered as one of the most
powerful methods that can be used for marketing such as ads of the Facebook. By the help of the
Facebook they can reach the particular people and can do it very easily (Tussyadiah, Wang and
Jia, 2016). They can target by relationship status, Interest age, geographic location ,interest ,age
and many more. But also here the trick is to get the better outcomes that cannot be just click
about the click traffic but also focus on the re-targeting and conversation by pixels. Pixels on
Facebook can easily track anyone who comes to your site as it able to build custom audiences
that are around them.
TUI uses various types of marketing strategies such as social media platform to attract
their customers. Here, they have created an official page where all services info is available to
customers.
Types of positioning strategies
There are various positioning strategies such as
By using costumer benefits or product characteristics
It focuses on various characteristics regarding customer or product benefits. Such as some of the
motorbikes rely on the fuel economy as some of the looks, power as well as other stress focuses
on its durability.
Cost positioning strategy
3

TUI is known for its customer services as it is considered as focuses on the cost
positioning strategy as it focuses on ways by which any wasteful procedures in firm can be
eliminated as well as pass such type of the saving on their consumers. TUI invested its large
amount of money within the operational process as they are inventory, delivery as well as
ordering procedures (Sharma, Sharma and Chaudhary, 2020). Thus, the entire cost structure
examined as it is a cost saving firm so offer lower prices of travelling in air or other can be
offered to their consumers.
Quality
Most of the firms destroy their credibility within marketplace through alienating suppliers and
consumers (Reino and Hay, 2016). Some of the firms chooses to focuses on quality positioning
strategy by using various exceptional parts as well as materials to the minimum defects.
Flexible positioning strategy
It also focuses on various firms that can change the products as well as services rely on their
requirements. Every change focuses on the increase within the cost of production as it is consider
as the ability regarding manufacturing to respond to create a competition of new level. Here
flexible positioning also consider as another way for the firms that able to differentiate
themselves from their rivalries to produce a large variety regarding products as well as modify
products as well as introduce new products that can be responded the needs of the consumers
immediately (Harahsheh, Haddad and Alshorman, 2019). Various firms are also focuses on the
new technology to gives flexibility regarding their products.
Problem solver- Most of the brand focuses on various positioning their products as it is
considered as the one stop solution regarding particular problem (Gretzel, 2017). They focuses
on various pain areas as well as challenges that can faces by consumers within communication
as well as other strategies of marketing that can promote their goods.
Parent Brand
It is a strategy that focuses on establishing a brand promise and also the reputation regarding the
parent brand. As here all the products as well as sub brands are falls under the parent brand.
Product specific
There are some of the brands that focuses to cater to various market segments that uses the
strategies regarding to the product- specific that can differ their positioning than others.
Feature specific
4

Here the competition is huge as well as products are same through focusing on the particular
features that depends on the sold product (Camilleri, Camilleri and Acocella, 2018).
TUI uses cost positioning strategy to position their products and services in the market.
this allows them to charge for the services which is offered to customers. Moreover, on basis of
cost of services TUI position themselves in the market.
CONCLUSION
From the above it had been concluded that Market segmentation such as Demographic
segmentation focuses on statistical data Age, income ,gender. Psychographic segmentation
related to their characteristics values, attitudes, interest, behavioural focuses on how the clients
acts. It also focused on Marketing strategies such as Use of social media, Create video Tutorials
and uses Facebook ads with re-targeting and Understanding search Engine optimization
Positioning strategies such as Cost positioning strategy Flexible positioning strategy, Parent
Brand Product specific.
5

REFERENCES
Books and journals
Camilleri, M., Camilleri, M.A. and Acocella, 2018. Travel marketing, tourism economics and the
airline product. Springer International Publishing.
Gretzel, U., 2017. Influencer marketing in travel and tourism. In Advances in Social Media for
Travel, Tourism and Hospitality (pp. 147-156). Routledge.
Harahsheh, S., Haddad, R. and Alshorman, M., 2019. Implications of marketing Jordan as a
Halal tourism destination. Journal of Islamic Marketing.
Park, Seunghyun “Brian, Chihyung “Michael Ok, and Bongsug “Kevin Chae. "Using Twitter
data for cruise tourism marketing and research." Journal of Travel & Tourism
Marketing 33, no. 6 (2016): 885-898.
Reino, D. and Hay, B., 2016. The use of YouTube as a tourism marketing tool.
Sharma, A., Sharma, S. and Chaudhary, M., 2020. Are small travel agencies ready for digital
marketing? Views of travel agency managers. Tourism Management, 79, p.104078.
Tussyadiah, I., Wang, D. and Jia, C.H., 2016. Exploring the persuasive power of virtual reality
imagery for destination marketing.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
6

7

8

9