Marketing Report: Travel and Tourism Industry Analysis

This report provides a comprehensive analysis of marketing principles and strategies within the travel and tourism industry, focusing on the context of Thomas Cook. It begins by defining the core concepts of marketing, including needs, wants, products, utility, exchange, relationships, and market prospects. The report then examines the impact of both micro and macro environmental factors on the operations of a travel company, particularly in relation to new travel packages to destinations such as Morocco and Egypt. It delves into factors influencing consumer motivation and demand, such as customer behavior, pricing, and climate. Furthermore, the report discusses the principles of market segmentation, highlighting its importance in creating targeted marketing plans. The report also explores the marketing mix elements (product, price, place, and promotion) and the significance of the service sector mix. Finally, the report includes a discussion of integrated promotional campaigns for travel and tourism businesses.

MARKETING
IN
TRAVEL AND TOURISM
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Discussing the core concept of marketing for travel and tourism sector ..............................3
1.2 The consequence of marketing environment on the operations of Thomas Cook.................5
1.3 Factors affecting consumer motivation and demand in travel and tourism...........................6
1.4 Principles of market segmentation and its uses in marketing planing ..................................7
TASK 2............................................................................................................................................8
2.1 Importance of strategic marketing planning for a selected travel and tourist destination ....8
2.2 Relevance of marketing research and marketing information to managers ..........................9
2.3 The influence of marketing on society..................................................................................9
TASK 3..........................................................................................................................................10
3.1 Issues in the product, price and place elements of the marketing mix ...............................10
3.2 Importance of service sector mix elements of the travel and tourism sector ......................11
3.3 Concept of total tourism product to an individual tourism business ..................................11
TASK 4..........................................................................................................................................12
4.1 The integrated nature and role of the promotional mix ......................................................12
4.2 Plan and justify an integrated promotional campaign for travel and tourism business or
destination..................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
In the present context, travel and tourism is the highest flourishing sector of the economy.
More than 7.5% growth in travel and tourism sector has been witnessed. In addition to this, there
is hike in expenditure of tourist with £5.8 billion in availing travel services of UK. Further, UK
witnessed more than 9.9 million foreign tourist in the mid of April and June 2015. This states
that there are ample amount of growth opportunities for tourism business (Uzama, 2009). The
travel and tourism business have positive impact on the economic development of nation. In this
respect, travel and tourism have contributed more than 277 million jobs to world's economy in
the year 2014. Further, it has rendered US$7.6 trillion to global economy. In this report,
implication of marketing in enhancing the performance of travel and tourism industry will be
explained in the context of Thomas Cook. It is a British travel tourism organization offering
luxurious and affordable travel services in different parts of the globe. In this report, impact of
macro and micro factors on the functioning of cited company will be explained. Further,
integrated marketing campaign for new package of company, summer 2016 to Morocco and
Egypt will be designed.
TASK 1
1.1 Discussing the core concept of marketing for travel and tourism sector
The core concept of marketing is an important aspect that helps the marketer of Thomas
Cook in underpinning desires, needs and significance of target customers. Further, company can
make viable changes in its products and services (Adams and et.al., 2015). The important core
concept of merchandising is explained as follows:
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 Needs and wants: To ensure success in the long run, it is crucial for the marketer of
company to identify needs and wants of target customers. This will further help in
designing products as per the market demand. Thereafter, by considering the need aspect,
company can provide services which are required by the customer. By understanding the
wants, organization can fulfill the peculiar needs and requirement of customers through
exercising various options (Marshall and Villiers, 2015). For instance, the consumer may
need a holiday with its friends to satisfy its social needs. However, for this aspect,
Thomas Cook can provide walking tour to historical places, adventurous or leisure tours.
 Products: This includes the services and the products which will be provided by the
company to its prospective customers. It further regards to core product as well as
services related to its. Since, its inception the company is planning to offer holiday
package of summer 2016 to travel places like, Tunisia, Morocco and Egypt (Son,
2011). In addition to this, company can offer services like, pick and drop facility to
tourist from airports, safari, cruise etc that may or may not be extraneous from the basic
tour package.
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Illustration 1: Core concept of Marketing

 Utility, satisfaction and cost: It states the capability of tourism product to fulfill needs
and requirement of prospective tourist. Further, customer prefers the products which are
likely to provide maximum utility. Therefore, higher utility means maximum satisfaction
to the consumer. This further help in enhancing brand loyalty among customers. Further,
for providing superior quality product, Thomas Cook can charge competitive prices
which will help the company in recovering the cost and earning desired amount of profit
(Inkson and Minnaert, 2012).
 Exchange: It is important concept through which customers can avail desired services by
paying demanded price by the organization. Therefore, it must be beneficial for both the
parties.
 Relationship and networking: To ensure success of the marketing campaign, more
consideration should be given on building fruitful relationship with prospective
customers. This will also help in retaining the brand loyal customers and will also attract
new customers.
 Market and prospects: The term markets regards to location or area where organization
wants to provide its services. It consists of diversified range of consumers having specific
needs. Further, it is the function of marketer to identify suitable market for its services to
avail maximum sales and revenue. However, for this aspect, it is significant for the
marketer to identify a suitable prospect who is happy to avail services offered by the
company.
1.2 The consequence of marketing environment on the operations of Thomas Cook
By considering the provided scenario, it has been articulated that, cited company is
intending to provide a brand new summer package to famous holiday destinations like, Egypt
and Morocco. However, to ensure success of its operations in the new market, it is feasible for
the organization to study micro and macro factors that can affect its operative ability. This
analysis will also assist the marketer in identifying new opportunities which can be grasped by
the organization. In addition to this, various threats can be ascertained and significant steps can
be taken to avoid them.
Micro environmental factors: They are the intrinsic factors that impact operations of the
company directly.
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 Customers: The changing needs and preference of target customers can impact the sales
of Thomas Cook. Therefore, to satisfy the customers, marketer of the company should
consider the prevailing trends in tourism sectors, needs of customers etc. In addition to
this, best quality services, value for price paid by customers, creative aspect of travel
package etc should be ensured (Adams and et.al., 2015).
 Competitors: The marketing strategy employed by the key rivals of company like,
Expedia, Cox and kings, Greenwich Tourism etc can impact the success of marketing
campaign of Thomas Cook in target nation, Egypt and Morocco. Further, they can
provide similar packages at lower rate and can reduce the demand of the organization.
 Suppliers: They provide valuable products and services that are important input for
Thomas Cook for providing effective travel services. The major suppliers of Thomas
Cook are, Virgin Atlantic Ltd, British Airways etc. that help the organization in booking
air tickets of their customers. Thereafter, local travel service provider of Egypt and
Morocco involves hotels, restaurants; buses etc. which can impact functions of the
company. The suppliers can increase their prices and increase the overall cost of tour
package.
Macro Environment
 Political factor- One of the major macro factor that affect the tourism businesses with the
Thomas Cook group and tourist destination with Egypt will focus on political factor. The
political factor will frame the necessary legislation and taxes regarding the visiting of the
travellers in their countries. Therefore, political factor in the destination plays an vital
role.
 Economical factor- Another macro factor that affect the marketing activities include
economical factor. Tourism is consider as one of the effective medium that support the
Egypt in growing their economy. In the year 2009 the international economic downturn
has declined the the growth of Egypt GDP to 4.5%.
 Social factor- Another factor that affect the operations of Thomas Cook include social
factor. The population of Muslim in the Egypt region is high as per the Christians. Thus,
it will affect the operations of Thomas Cook.
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 Technological factor- Technological factor will support the Thomas Cook in enhancing
their operation and as well as their services in the different region that would support the
company enhancing their brand image.
 Legal factor- Travel and tourism is consider as highly effective sector that contribute in
enhancing the economy of the tourist destination. In the recent year with the changes in
legal factor and regulation it may affect the operation of the company. Thus, legal factor
need to be consider the most.
1.3 Factors affecting consumer motivation and demand in travel and tourism
The tour operator Thomas Cook wishes to create a summer holiday package to visit
Morocco and Egypt therefore working as assistant marketing manager they must focuses on
assessing different factors and element that directly affect the consumer motivation and demand
in travel and tourism (Tsiotsou and Ratten, 2010). The enumerated factors are:
 Different behaviour of customer- The foremost factor that impact or influences the
consumer motivation and demand in the travel and tourism include behaviour of different
customers who are preferring or choosing the summer packages of Thomas Cook. As, the
behaviour of customers are distinct from one another thus, assistance marketing manager
must focuses on measuring the demand and preferences of each customers and then
create the summer 2016 holiday package (Buda and McIntosh, 2013).
 Pricing element- Another factor that influences the demand of customers and also affect
the consumer motivation level include pricing factor. As, this factor is being considered
as key factor in influencing the demand of customers thus, it need to be considered by the
management of Thomas Cook while creating the holiday packages to visits Morocco and
Egypt. For instance enabling high prices by the Thomas Cook for the summer holiday
package to visit Morocco and Egypt will result in influencing the demand in travel and
tourism sector as visitors prefer affordable prices for visiting the such places (Marshall
and Villiers, 2015).
 Climate and weather of tourist destination- Another factor that affect consumer
motivation and demand in travel and tourism include climate and atmospheric condition
of Morocco and Egypt. For example, visitors or travellers of cold climate region will
highly prefer to visits such places as climate and weather condition in Egypt and
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Morocco is Dry that are liked by many visitors. However, the temperature will suits the
customers and travellers from different countries (Adams and et.al., 2015).
1.4 Principles of market segmentation and its uses in marketing planing
In the contemporary environment marketing plays significant role in merchandising
product and services in the overall market. However, it also plays vital role within the
organizational environment so that they can easily accomplish their objectives. Therefore, for
effective marketing it is essential for assistant marketing manager of Thomas Cook to measure
the other aspect of marketing that is segmenting, targeting and positioning of the services so that
they can easily captures the marketplace. The principles of segmentation is essential in creating
the summer 2016 holiday plan to visits Morocco and Egypt as there are different segment
customers with different needs that need to be identified by the assistant marketing manager of
Thomas Cook. Segmentation is defined as an effective approach of marketing that mainly
focuses on dividing the whole market into different segment that possess similar needs and
requirement. Segmenting the market is also essential for Thomas Cook as it results in identifying
the different need and perception of their customers. The segmentation of market mainly
bifurcated into demographic aspect, geographical, pschographic etc (Marsh, 2013). these are also
consider as type of segmentation that need to be consider by the marketing manager of Thomas
Cook so that they must devise the summer package according to the needs and wants of the
customers. From the above different segment the selected segmentation would be demographic
segment under which Thomas Cook will target their premium class customers among the age
group of 18-35 years those who prefer to visits the new places. For instance; as marketing
manager of Thomas Cook while creating summer holiday package to Egypt and Morocco they
would target their demographic customers with the age group of 18-35 year those who prefer to
visits new tourist destinations.
Therefore, overall segment of marketplace is effective as it uses in ensuring marketing
planning for the summer 2016 holiday package to visit Egypt and Morocco. The significance or
use of segmentation result in reducing and lowering the risk factor as it will specify the segment
to whom Thomas Cook will target and promote their services and travel products. Furthermore,
through enabling segmentation assistant marketing manager of Thomas Cook can easily
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determine the needs and preferences of customers and thus provide effective services that would
result in satisfying their demand (Berman, 2011).
TASK 2
2.1 Importance of strategic marketing planning for a selected travel and tourist destination
It is essential for assistant marketing manager of tour operator Thomas Cook to focus on
strategic marketing planning as it mainly focuses on providing effective decisions that basically
shows that how Thomas Cook can compete in the competitive market and serve their customers.
Therefore, strategic marketing planning mainly include assessing the strengths, weaknesses,
opportunities and threats of the Thomas Cook so that they may easily overcome their threat and
weakness to sustain in the competitive environment (Inkson and Minnaert, 2012). Thus, it can be
said that strategic marketing planning also plays significant role in the Thomas Cook as it result
in
 Assisting the company so that they may lead to the correct direction and thus, also result
in framing and creating effective holiday packages for their customers so that they can
survive in the competitive scenario.
 Strategic marketing planning also result in gaining in-depth knowledge and information
related with the different segment customers so that it result in creating the packages
according to their requirement.
Apart from this the strategic marketing planning also assist the Thomas Cook
management in determining or streamline their travel services and products so that they should
create effective products and services that support them in making higher profit (Christie and et.
al., 2014). However, this process also support the Assistant marketing manager of Thomas Cook
in measuring the strategies and marketing mix of their rival companies that they can create
effectual summer holiday packages for their customers. For instance; while creating the summer
2016 holidays to Morocco and Tunisia marketing manager would measure the customers
preferences through conducting proper marketing planning by focusing on the needs and
requirement of the customers. Although considering the strategic marketing planning also
support the assistant marketing manager to determine their current position in the overall market
so that they should plan the summer holiday package to Morocco and Tunisia in the proper
manner. Despite of this strategic marketing planning is consider as time consuming procedure for
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the Thomas Cook as it requires consuming huge time as it mainly investigate the who market
area (Wong and Song, 2012).
2.2 Relevance of marketing research and marketing information to managers
Market research is a process of an organized collection and analysis of facts and figures
about a specific target market or for an environment. Therefore, marketing research play a
significant role in the Thomas Cook to meet the needs and requirements of the customers. There
are different methods for conducting the market research that is through primary and secondary
research. Under primary research assistant marketing manager of Thomas Cook can easily gain
information from the market through circulating questionnaire among the market customers. For
instance; with the help of circulating questionnaire in the market they can easily acquire the
information regarding their customers that support them in creating the summer 2016 holiday
packages. Another type of research may include secondary research that can be conducted
through assessing the already collected data by the government. Example of secondary research
is that assessing the packages of competitors so that marketing manager can collect the
information regarding the needs and wants of the customers. The relevance research in the travel
and tourism of Morocco and Tunisia has factors like measuring current demand and tourism
trends by giving eco-tourism. Customers is giving more importance to eco-tourism because
customers prefer conservative and preservative environment with great scenic view. Other
factors include forecasting and demand measurement in which segmentation of customers can be
classified into their income basis such as higher income class and economic income class
(Morrison, 2013). In high income class, customers prefer premium quality services because
customers need good accommodations in terms of service and quality, they doesn't matter of
prices whereas in economic income class, customers check the prices which should be nominal
and come under their budget. In high income class, customers are quality – oriented whereas in
economic income class, customers are price- oriented. Customers want comfortable and friendly
environment in higher income class whereas customer want low budget tour with more benefits
in economic income class (Swarbrooke and Horner, 2012). As an assistant marketing manager,
Thomas Cook should make innovations in their accommodations, service and sales to increase
their customers and market share as well as to maintained its brand value.
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2.3 The influence of marketing on society
In the contemporary environment marketing concept not only influence the customers
perception and preferences but it also influences the society and marketplace under which
Thomas Cook operates their operations. Through marketing assistant marketing manager of
Thomas Cook would easily providing education and information regarding different tourist
destinations that are preferred by the visitors as it support the customers and society in meeting
their needs and expectation (Singh, 2008). For example, the importance of marketing to the
Thomas Cook is that it support in promoting and advertising their services as well as different
summer packages to the market customers. The marketing activities will also benefit the
Morocco and Egypt in enhancing their destination image in the world so that large customers
prefer to visits these places. However, marketing will also benefit the Morocco and Egypt in
increasing their tourism prospect through marketing the destination in the overall world.
However, the help of marketing Thomas Cook will also enhance the image of tourist
destination that is Morocco and Tunisia in the world that contribute in their economy that often
result in enabling sustainability. Furthermore, framing the marketing strategies for Thomas Cook
will positively influences the society as marketing through different social media sites as well as
promotional tools like sales promotion, direct marketing etc. will benefit the firm in enhancing
and generating the profit that ultimately the society under which they operates by enabling social
corporate responsibility through developing and society and community under which they
operates (McCabe, 2010).
Moreover, marketing also influences the society through informing their customers
regarding the travel product and services that are provided by Thomas Cook so that customers
can easily purchase their services to meet their leisure and luxurious needs by visiting Morocco
and Tunisia. Although it also result in enhancing the knowledge and information of customers
(Hall and et. al., 2012).
TASK 3
3.1 Issues in the product, price and place elements of the marketing mix
The essential elements of marketing mix include product, price and place assessing all
these elements is essential for Thomas Cook so that they should launch their summer 2016
holiday package to visit Morocco and Egypt. There are numerous issues and problem associated
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with these elements of the marketing that need to be analysed and measured by the assistant
marketing manager of Thomas Cook (Morgan and Ranchhod, 2010). The different issues in the
element of marketing mix include-
 Product- The foremost element in the marketing mix include products it means assessing
the features and different attractive places existing within Morocco and Egypt that must
be visited by the travellers and customers. For example, assistant marketing manager of
Thomas Cook while launching the summer 2016 holiday package to visit Morocco and
Egypt the issue regarding the product or destination will arise related with the intangible
services that is quality of services provided by the Thomas Cook at the destination etc.
 Price- Another element of marketing mix include price that refers to setting the price of
summer holiday packages that must attract the customers. pricing factor is the key factor
that need to measured by assistant marketing manger of Thomas Cook properly as
deciding or setting effective prices will result in gaining or generating higher profit
margin to the company (Middleton and Clarke, 2012). The certain issues arises while
pricing the package of Thomas Cook ensure lower or affordable pricing of competitors
travel packages and services. Customers while choosing the Thomas Cook summer
package will measure price of package with competitor at act as issue in setting price. For
example, while setting the price of the created summer 2016 holiday packages assistant
marketing manager must considers assessing the competitor pricing so that they can set
suitable prices for their packages that can be purchased by the different segment
customers.
 Place- Furthermore, place is also consider as effective element of marketing mix that
must be consider by assistant marketing manager of Thomas Cook. Place will focus on
accessing the location through which Thomas Cook will provide their travel services and
holiday packages to their customers. The common issue arises in place element is
regarding the location through which they can serve their customers by providing holiday
packages (Beldona and et. Al., 2012). For example, assistant marketing manager of
Thomas Cook must ensure proper and suitable place for providing or rendering the
services to their customers. Basically physical outlets of the company is consider as
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effective option through which marketing manager must distribute and renders their
services to the customers.
3.2 Importance of service sector mix elements of the travel and tourism sector
The different service sector mix elements to the travel and tourism sector focuses on
characterizing the services that are provided by the Thomas Cook in the summer holiday
packages of Morocco and Egypt. The characteristics of services that are provided by Thomas
Cook include attractive places, secondary services, transport services that must attract different
segment customers.
The different service sector mix element include interactive marketing that means
advertising through with the help of using various social media sites and pages that attract large
market customers (Singh and et. al., 2012). However, this element will support the assistant
marketing manger of Thomas Cook in lowering their overhead or overall cost associated with the
marketing their summer holiday packages to Morocco and Egypt. Therefore, significance of
interactive marketing is that is also enhances and increasing the sales of their packages through
using modern tool of marketing that is social media, radio, TV ads etc.
Another service sector mix element focuses on process that is mainly utilized by Thomas
Cook assistant marketing manager so that they may provide leisure tour packages to their
customers so that they might get pleasant and leisure stay within the destination (Hyde, 2008).
3.3 Concept of total tourism product to an individual tourism business
The concept of total tourism product include variety of well-defined real and abstract
element that mainly relies on the services and activities of the destination that is Morocco and
Egypt. The assistant marketing manager of Thomas Cook mainly focuses on accessing the total
tourism products of destination so that they can easily create the tour package for their
customers.
The concept of tourism product also focuses on measuring the attractions of the
destination that are mainly focused by Thomas Cook for their summer holiday packages. Thus,
offering numerous attractive locations and places to visits will ensure that assistant marketing
manager of Thomas Cook to enable all these services and element in their tourism products
(Mehmetoglu and Normann, 2013). For instance; Egypt possess rich heritage and cultural aspect
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that mainly attract the customers therefore manager must focus on using these elements in their
brochure so that they may attract large customers and visitors.
TASK 4
4.1 The integrated nature and role of the promotional mix
Promotional mix is defined as the activities which is used to sell the products and to
achieve their organizational goals. In context to this, Thomas Cook is also doing promotions on
large scale to attract their customers (Tsiotsou and Ratten, 2010). There are various factor of
promotional mix such as sales promotions, personal selling, advertising etc. Advertising: It is one of the major tool of promotions mix and it is effectively used by
Thomas Cook. Thomas Cook is doing advertising through many mediums like mass
media, leaflets, adverts etc. Social networking sites is a huge factor in advertising,
Thomas Cook can used this mediums for advertising. For example, advertisement
through social media sites are effective for the Thomas Cook as it support them in
enhancing their reach to the vast customers and also result in enhancing their image. Sales promotion: It can be media related or can be non-media related communication.
Thomas Cook is increasing consumer demand by doing sales promotions through
coupons, contests, discounts on the future tour, sponsorship etc (Buda and McIntosh,
2013). Public relations: Thomas Cook can done promotions through third party in a deviant way
by giving press releases, newspaper and magazines articles, charitable contributions,
speeches, issue advertising etc.
 Direct marketing: Thomas Cook is also focusing on direct marketing promotional mix
one of the offline campaign that connected to the customers. Thomas Cook is using
methods like email, online display ads etc (Marshall and Villiers, 2015).
The importance of promotional mix in Thomas Cook is to enhance its brand image, to
attract large number of customers, to diversify its products, to reinforce the company existence
and to increase its market share. In addition to this, role of promotional mix also helps the
customers in purchasing their summer holiday packages buy their products and services that
often result in satisfying their needs (Son, 2011).
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4.2 Plan and justify an integrated promotional campaign for travel and tourism business or
destination
In the contemporary scenario, promotional campaign plays a vital role in promoting of
the business through various resources such as advertisements, social media, sales promotion,
press releases and direct marketing etc (Adams and et.al., 2015). As an assistant marketing
manager, the promotional campaign for Egypt and Morocco can be done through advertising like
social media marketing. Social networking sites is important and large part of the advertising
because sites like Facebook and Twitter advertise and promotes their products by communicating
things direct to the customers. Company can also advertise through mass media like TV
campaign, leaflets and brochures which aims on core elements of Thomas Cook's product
(Hudson, 2010).
For example, Sales promotion of the Thomas Cook include coupons in which first ten
people will have special offers like 50% discount on trip to the pyramid, giveaways like free t-
shirts, canvas bags etc. Public relations includes free publicity to the customers and to gain
interest by giving articles in the newspapers of Egypt and Morocco. If Thomas Cook has to
maintained public relations, then it can be make through comfortable, well treated and
entertained environment. Press releases and charitable contributions are also the parts of public
relations. Company also focuses on direct marketing aspects like emails, online displays,
interactive consumer websites etc. Thomas Cook can communicate with their customers through
emails or direct mail which connects with online business windows (Uzama, 2009). By giving
various discounts on the trips, Thomas Cook can display online ads on the different websites to
attract more customers because in this era, more people are active on social media which can
increase more customers for the company.
CONCLUSION
It can be summarizes that marketing plays a significant role in promoting the travel
products and services of tour operator in the contemporary environment as it will result in
promoting their travel product and services in the effective and efficient manner. Furthermore, it
can be stated that there are various factors that mainly influences the customers and visitors who
are selecting their services and holiday packages. Lastly, the report has also summarizes the
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nature and role of promotional mix for Thomas Cook as it support them in marketing their
services in the large marketplace.
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