Comprehensive Marketing Analysis for Travel and Tourism Sector

This report delves into the core concepts of marketing within the travel and tourism industry, examining the marketing environment and its impact, particularly focusing on London. It analyzes factors influencing consumer motivation and demand, emphasizing the importance of market segmentation. The report explores strategic marketing planning, the relevance of marketing research, and the influence of marketing on society. Furthermore, it investigates marketing mix elements, service mix, and the concept of the total tourism product, specifically using Thomas Cook as a case study. The report concludes by evaluating the integrated nature of promotional mix and planning promotional campaigns for travel and tourism destinations, offering a comprehensive overview of marketing strategies within the sector.

MARKETING IN TRAVEL AND
TOURISM
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CONTENTS
INTRODUCTION.........................................................................................................................................1
TASK – 1.......................................................................................................................................................1
1.1 Discussing the Core concept of marketing in travel and tourism sector........................................1
1.2 Assessing the impact of marketing environment of London.........................................................2
1.3 Factors affecting the motivation and demand of the consumer in travel and tourism sector........3
1.4 Principles of market segmentation and its usefulness in marketing planning...............................4
TASK – 2.......................................................................................................................................................4
2.1 Analyzing the importance of strategic marketing planning...........................................................4
2.2 The relevance of marketing research and information to managers..............................................5
2.3 Measuring the influence of marketing on society..........................................................................5
TASK – 3.......................................................................................................................................................6
3.1 Arguing issues in the elements of Marketing Mix in Thomas Cook.............................................6
3.2 Calculating the significance of service Mix elements...................................................................7
3.3 Discussing the concept of Total Tourism product.........................................................................7
TASK – 4.......................................................................................................................................................8
4.1 Evaluating the integrated nature and role of promotional mix......................................................8
4.2 Planning and justifying promotional campaign for travel and tourism destination.......................8
CONCLUSION..............................................................................................................................................9
REFERENCES............................................................................................................................................10
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INTRODUCTION
Vocalizing about the travel and tourism industry, it is being regarded as the complex and
competitive industry, which has spreads its wings all across the globe. Travel and tourism
industry needs to have effective marketing principle in place in order to succeed and achieve the
overall objectives. There are numerous parameters available in the marketing environment which
has influence over the operation of the business (Burgess, Sellitto, Cox and Buultjens, 2015).
Consequently, it becomes significant for the organization to focus regarding the marketing
strategy and policies. Pertaining to this, it is vital to formulate such strategies and policies that
render supportive hands to the firm in fulfilling the main objectives and pre-determined goals.
As a result, the main aim of the current research report is to understand varied concept
related to marketing. Further, it will also evaluate different aspects of marketing process. In
addition to this, the evaluation as well as development of marketing strategy of Visit London will
be performed in the present study as a Management trainee of the company. Intensive research
will be conducted in regards with the tourism products, amenities and services being available in
London. Talking in concern about the Visit London, it is an official website being accountable
for the promotion of the tourist’s destinations in London. In general terms, it is a comprehensive
guide which presents information about every happening in and around the city (Visit London,
2018). Furthermore, Visit London is also well known for its supports to the customers and
tourists in planning their flawless trip.
TASK – 1
1.1 Discussing the Core concept of marketing in travel and tourism sector
Marketing domain helps the firm irrespective of their types, in anticipating the
requirement and demands of their valuable target customers about their products and services in
the market. Once the needs are being identified, respective strategies are being devised so that
the identified needs are fulfilled. As an assistant manager, it is crucial to understand the desire of
the customers who visits to the firm and accommodating them with the same accomplishments
(Dickinson and et.al., 2013). The company Visit London also makes necessary efforts in
determining their target customers and envisions their wants that may ranges from holiday
packages, providing accommodation, comprehensive travelling, economic holiday packages and
many more. The main point of concern is getting knowledge about their wants and desire. This
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can be done by conducting marketing research. This can be commenced on the prevailing and the
future market. Furthermore, the criteria’s related to market research involves classification of the
consumers based upon their gender, family, economic conditions, lifestyle and social status
(Boundless, 2015). Just for an illustration, Visit London is planning a cultural package for six
days for the middle age people. The tour will cover various destinations such as Lisbon,
Denmark, Porto and Amsterdam. Consequently, the target group for this product will be people
with 40 to 50 years of age (Buckley, 2011).
After getting knowledge about the target group, the firm is in the best position to carry
out market research by taking into consideration various methods like questionnaires, surveys
and observation. Once, the target customers are identified it is being termed as ‘segment’. The
next important step is to deciding the market segmentation strategy that is the company is
planning for long holidays, activity related holidays, group holidays, family vacation or general
business trip. Since, it is a package for six days it can fall under the category of group and long
holidays (Coltman, 1989). Supplementary to this, marketing mix is required to be developed. It is
important as a manager to ensure that all the elements of marketing mix i.e. product, price, place
and promotion are taken into account effectively. The product of the firm is 6 day cultural
package and the related customers should be satisfied.
1.2 Assessing the impact of marketing environment of London
The marketing environment of business is nothing but a force that may have direct or
indirect influence on the capabilities of the travel and tourism business. Thus, there are mainly
two types of environment i.e. internal and external environment (Burkart and Medlik, 1981). The
internal environmental factors are interior to the organization and include stakeholders,
employees, weaknesses, capabilities and resources. Talking about the internal environment of
Visit London, it is very stable and workers are contended with the type of work and environment
they are getting. This can be remarked by the persistent growth of the company by 3 to 4 percent
every year. This enables their investors as well as their employees more blissful.
On the other hand, the external factors are beyond the boundaries of the organization. It
includes factors that help in lifting the opportunities towards the company and at the same time
brings along threats too. Such macro factors are economic, legal, political, technological and
environmental (Cooper, 1998). The external environment of the company which is planning for
six days cultural package may include political and the environmental aspects. Since, the tour
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will cover multiple cities, it is vital to consider the culture of that particular city so as to have a
successful and fun filled tour. Moreover, certain political as well as legal hassle should be
considered so as to bring all the comfort to the tourists.
There is micro environment as well, which is external to the firm i.e. customers, suppliers
competitors and stakeholders. They also have major impact on the operation of the travel and
tourism business. For instance, if the suppliers of tourism services ignore a specific destination
and give attention to others then the inflows of travellers in such destination will be affected
significantly (Goeldner, 2000).
Figure 1: The Marketing Environment
1.3 Factors affecting the motivation and demand of the consumer in travel and tourism sector
The catchphrase ‘consumer is the king’ is applicable in every facets of business all
around the world. Talking in respect of travel and tourism sector, the importance becomes more
intense. Consequently, the product of Visit London which is a six days cultural tour package
needs to be promoted in such a way that influences the behavior as well as the motivation of their
target group of people. Some of these factors are socio-economic, family, cultural and references
group influences (Witt and Moutinho, 1994). Related to this, there are two major factor of
motivation that is personal and social factor. Personal factors are generally related to emotions
and are psychological factors. For example, those individuals who have a desire to explore the
cultural traits of different destinations can be the perfect target group of the cultural tour
package. On contrary, it is sometimes observed that decision related to travel is inspired because
of some social impacts. For example, students studying in colleges might be interested in order
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to explore varied cultural and history of destinations and thus, can show their interest towards the
cultural tour package. If the tour organized by the firm gets fruitful than it will surely attract
other group of people and their peers as well.
1.4 Principles of market segmentation and its usefulness in marketing planning
Segmentation is important phase in the process of marketing planning. Through this,
companies identify their feasible customers having same demands and necessities. All these
groups are better known as segments (Balaguer and Contavella-jirda, 2002). Marketing strategy
of the products and services is selected based on these segments. It is vital for Visit London to
take into account that they determine right target market and segment. The segment being chosen
must be measurable, accessible and substantial. Pertaining to this, the firm can develop their
segments on the basis of geographic, demographic, behavior and psychographic. Since, Visit
London is a global firm and has its operations in various parts, the products and services will be
categorized geographically. Other than this, in the demographic segmentation, the customers are
divided based on their income, age, gender etc. In the current case, since it is a cultural package
tour so people of age group 25 to 50 will be targeted.
TASK – 2
2.1 Analyzing the importance of strategic marketing planning
 Helps in refining their purpose – Taking help of the strategic marketing planning, the
company can identify the main objective they are thriving for. Moreover, through this the
firm will be in a better position to make comparison with the other companies operating
in the same market. For illustration, the unique value preposition of Visit London is their
competency in offering economic packages to their customers (Usunier and Lee, 2005).
 Supports in identifying the needs of the customers – Talking about the E-commerce
activity, travel and tourism has 80 percent of share in it. Nowadays, with the fast pace use
of internet, people wants travel related information and services through internet. Thus,
seeking help through strategic marketing planning, Visit London can ramp up their
transactions and operations related to online.
 Provide assistance in determining opportunities – The day to day chaos and clutter can
easily be recognized and managed through strategic marketing planning. This can further
help in ascertaining opportunities available in the travel and tourism sector.
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 Benefit of money saving – More than 30 percent of the total operating budget is spent in
regards with marketing of products and services by Visit London. Since, marketing
comprises high costs, strategic marketing planning will help in allocating the resources
intelligently so that effective results can be seen at minimal costs (Wood, 2008).
2.2 The relevance of marketing research and information to managers
Throwing light towards the marketing research, it is simple an activity being performed
by an organization or agency with a view to gather information in regards with the potential
customers (Hartman, 2016). Through marketing research of travel and tourism sector in which
Visit London, many aspects can come into existence like issues related to this sector, market size
of the Europe, Purchasing power of people and opportunities available for the firm etc.
furthermore, it also renders help by providing minute hidden details regarding the sector which is
not been explored till yet.
Concentrating about the managers, the marketing research is considered as the most vital
tool for taking significant decisions about the key operations of the organizations. With the
support of marketing research, a manager finds himself in a better position to have details
regarding the segments and thus, can take efficient decisions from the information being
explored (David, 2015). Today’s scenario is very competitive and complex, a wrong judgment
and decision might prove precarious for the business. Therefore, it is crucial to take any type of
decision by thorough analysis and evaluation. The managers of the Visit London are also
required to take decisions about the global expansion of the company and must not restrict the
organization geographically. In this process, marketing research will help them in wonders.
2.3 Measuring the influence of marketing on society
The marketing has numerous positive as well as negative impacts on the society. In order
to make society aware about in regards with the consumerism, marketing is helping and
protecting the customers by adhering the strict rules and regulations imposed by the government
on varied products and services. In addition to this, marketing also helps in increasing the social
responsibility of the business so that the community is benefited by the companies. With the
marketing consumerism is increased notably and it has influenced the purchasing decision of the
people (Driussi, 2007). It becomes easy for the marketers to communicate their ideas to the
government with a view to get their level of compliance being evaluated in relation with the
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advantage of the customers. Furthermore, marketing is also supporting the society through
increasing their awareness about the public policies related to varied niche markets. It also
ensures society that their environment is protected and safe. Marketing also helps in the
formation of the legal implication in industry by increasing consciousness and acquiescence
(Chung-Herrera, Enz and Lankau, 2003). By taking into consideration ethical practices and code
of conduct, the sustainability of the business is created. Thus, it is important for the firms to
invest in marketing and should ensure that obey all rules and regulations.
TASK – 3
In the current task, investigation in regards with various marketing activities and environment
related to Thomas Cook will be done. As a marketing trainee at Thomas Cook, promotional
campaign and other marketing activities will be performed.
3.1 Arguing issues in the elements of Marketing Mix in Thomas Cook
 Product – The Company is engaged in providing solution to various issues pertaining to
travel and tourism. They have diversified products like hotels, tours and packages,
foreign exchange amenities, city tours, cruise and other travel facilities such as insurance
and many more (Lewis, 1984).
 Price – Over the years, Thomas Cook is earning revenue at an increasing rate.
Furthermore, they offer best holiday experience to their valuable customers at an
affordable rate. The company has taken into consideration mid-premium pricing policy
with a view to detain larger share in the market.
 Place – Thomas Cook is a multi-national organization and was able to extend their reach
and in every part of the world. They provide packages to their customers for varied
nations such as Spain, Italy, US, Corfu, UK, Egypt, Portugal and Greece. They have five
divisions for their operations that are Northern, German Airlines, UK and Central Europe
(Poustie, Ross, Geddes and Stewart, 1999).
 Promotion – For promoting their products and services, Thomas Cook make use of
aggressive marketing. For this, they have started many campaigns through electronic and
print media. Further, they have made use of social media such as Twitter, Facebook and
YouTube as a support for their informative campaign.
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3.2 Calculating the significance of service Mix elements
 People – Human resource are very crucial, since they are into service industry. The
employees at Thomas Cook are provided training from time to time and thus, remarked
as an efficient team. The workforce of company comprises sales team, tour guides,
managers and service personnel (Koutoulas, 2013).
 Process – Since, it is a service industry, they have numerous process that needs to be
performed on daily basis. For instance, customers are first attracted through marketing
and advertisements. The time customer reaches the desk for enquiry, the products and
services are customized by the sales executives as per the requirement of the clients
(Akoumianakis, 2010). Soon after that, documentation process begins with accumulation
of documents like Visa, Passport, currency exchange and all necessary travelling
documents. Even after the commencement of the tour, it is responsibility of the manager
to give best experience to the clients.
 Physical Evidence – Thomas Cook owns 32000 hotels in India and around 150000 hotels
all across the world. They are into airline venture as well. In addition, they have also
lunched their foreign exchange mobile app in the year 2015. Furthermore, Thomas
Cook’s goods such as bags, pens, furniture, stationery etc. all comes under the category
of physical presence.
3.3 Discussing the concept of Total Tourism product
Speaking in relation with the total tourism product, it is usually intangible and tangible
elements based on the activities at a particular destination. By combining these elements, it can
sum up that there are certain activities at the destinations which compel the customers to visit
that place. In simple words, Total tourism product encompasses all the things that the customers
make use on their ideal trips (Arturas, Jasinskas and Svagzdiene, 2015). There are basically four
fundamentals of TTP i.e. accommodation, bookings, complimentary services and public goods
like climate, natural surroundings and beaches. Furthermore, it has many functions to perform
such as engaging the customers to make them busy, developing a luxurious experience and
lastly, supports in developing social reputation at the time of stay. Thomas Cook is also
providing all the above amenities and experience to their valuable customers. They have covered
around 2000 destinations and fleet of vehicles for offering transportation services to their
customers. The company also owns airplanes and a good distribution channel system in place.
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TASK – 4
4.1 Evaluating the integrated nature and role of promotional mix
The elements in the promotional mix, helps the firm in communicating the features of the
products and services to their clients. It includes advertising, personal selling, sales promotion
and public relations (Burgess, Sellitto, Cox and Buultjens, 2015). Companies operating in the
travel and tourism sector can promote their ideas and features of new products and services
through print media and social media such as Facebook, Twitter and You Tube etc. Other than
this, they can also grab customer’s attention by presenting the information orally by way of
meetings, incentives programs, sales representatives etc. Additionally, the travel and tourism
industry can increase their demand by making use of sales promotion like contests, coupons,
discount, giving samples etc. Companies can also promote their products and services
information through public relations i.e. diffusing information to mass public such as newspaper,
magazines, seminars and speeches. The final method that can be adopted by travel and tourism
related organization is direct marketing. Seeking help through this, firm can communicate with
their clients through direct mails, door to door selling and through mobile messages (Dickinson
and et.al, 2013).
4.2 Planning and justifying promotional campaign for travel and tourism destination
Various steps needs to be considered for planning an integrated promotional campaign for Italy
by Thomas Cook and the steps are as follows:
 The first step is to make decision about the target customer group. For the tour to Italy,
the target customer group will be people of age group 25 to 35 years.
 Online survey is required to be conducted so as to ascertain about the motivational
factors.
 The next step is to reach potential customers by making use of social media and digital
marketing (Buckley, 2011).
 It is important to develop clear message so that it satisfied the client’s needs. It is vital at
this stage to explain all related details about the package in the campaign such as places
that will be covered, accommodation, transportation, attractions of the destination etc. It
is crucial that the mission and vision of the firm should be enclosed in the message of the
campaign.
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 The marketing team is than required to analyze the campaign in order rectify the mistakes
if left any.
 Finally, the marketing team has the responsibility to ensure that the campaign should be
initiated successfully and must deliver things it meant to be delivered (Bhasin, 2015).
CONCLUSION
Consequently, from the above analysis, it can be well attributed that marketing is
necessary and essential part of travel and tourism sector. If marketing strategies and its related
processes are not applied properly, the sustainability of the company and its business will be in
risk.
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REFERENCES
Books and journals
Akoumianakis, D. 2010. Electronic community factories: the model and its application in the
tourism sector. Electronic Commerce Research, 10(1), pp.43-81.
Arturas, S., Jasinskas, E. and Svagzdiene, B., 2015. RISK ASSESSMENT MODELS IN THE
TOURISM SECTOR. Amfiteatru Economic, 17(39), pp.836-846.
Balaguer, J. and Contavella-jirda, M., 2002. Tourism As A Long-Run Economic Growth Factor:
The Spanish Case, Applied Economics,34, pp.877-884.
Buckley, R. 2011. Tourism under Climate Change: Will Slow Travel Supersede Short Breaks,
AMBIO, 40(3), pp.328-331.
Burgess, S., Sellitto, C., Cox, C. and Buultjens, J., 2015. Strategies for Adopting Consumer?
generated Media in Small?sized to Medium?sized Tourism Enterprises. International Journal
of Tourism Research, 17(5), pp.432-441.
Burkart, A.J. and Medlik, S., 1981. Tourism: Past, Present, and Future. Chapters 4 and 7. 2nded.
Heinemann.
Chung-Herrera, B.G., Enz, C.A. and Lankau, M.J., 2003. Grooming Future Service Leaders: A
Competencies Model. Cornell Hotel and Restaurant Administration Quarterly, 44(3), pp.17-
25.
Coltman, M.M., 1989. Tourism Marketing. New York: Van Nostrand Reinhold,
Cooper, C., 1998. Tourism Principles and Practice. Chapter 1, 2nded. Longman.
David, M.S., 2015. The New Rules of Marketing and PR : How to Use Social Media, Online
Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers
Directly. 5thed. New York: John Wiley & Sons Inc.
Dickinson, J.E., Robbins, D., Filimonau, V., Hares, A. and Mika, M., 2013. Awareness of
Tourism Impacts on Climate Change and the Implications for Travel Practice: A Polish
Perspective. Journal of Travel Research, 52(4), pp.506-519.
Driussi, A., 2007. Pricing: the lost component of the marketing mix? Professional Marketing,
pp.6-7.
Goeldner, C.R., 2000. Tourism: Principles, Practices, Philosophies. Chapters1 and 3. 8thed.
Wiley.
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