Marketing Analysis and Strategies for Travel and Tourism Industry

This report delves into the core concepts and principles of marketing within the travel and tourism sector. It analyzes the impact of the marketing environment on individual businesses and destinations, examining factors influencing consumer motivation and demand. The report explores market segmentation principles and their practical applications in marketing planning. Furthermore, it assesses the importance of strategic marketing planning, marketing research, and the influence of marketing on society. The role of the marketing mix, including product, price, place, and promotional elements, is discussed, with an emphasis on applying the total tourism product concept to a specific tourism business. Finally, the report evaluates the integration of the promotional mix, culminating in the planning and justification of an integrated promotional campaign for the Sheraton hotel.

MARKETING IN TRAVEL AND
TOURISM

Table of Content
TASK 1
Concepts and principles of marketing in the tourism sector
P1.1 Discuss the core concepts of marketing for the travel and tourism sector
P1.2 Asses the impact of the marketing environment on individual travel and tourism businesses
and tourist destinations
P1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector
P1.4 Analyse the principles of market segmentation and its uses in the marketing planning
Task 2
The role of marketing as a management tool in the travel and tourism
P2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism
business or tourist destination
P2.2 Discuss the relevance of marketing research and market information to managers in the travel
and tourism sector
P2.3 Asses the influence of marketing on society
Task 3
The role of the marketing mix in the travel and tourism sector
P3.1 Discuss issues in the product , price and place elements of marketing mix
P3.2 Assess the importance of service sector mix elements to the travel sector
P3.3Apply the concept of the total tourism product to an individual tourism business –
Task4
Promotional mix in travel and tourism

P4.1 Assess the integration nature and role of the promotional mix
P4.2 Plan and justify an integration promotional campaign for the Sheraton hotel
Task 1 Concepts and principles of marketing in the tourism sector

1.1 Discuss core concepts of marketing for the travel and tourism sector
Thomson Management wishes to bring to the market new tourism packages covering destinations
like Denmark, Amsterdam, Lisbon and Porto. A new product launch can be only if the market is
studied to identify the demand and factors influencing the demand.
Markets are formed by businesses and consumers, businesses sell goods and services to
consumers or other businesses on a market. Any business has a direct or indirect competitor, and
any product or service encounters competition from a similar or alternative product or service.
 Consumer’s satisfaction- The variety of products or services of Thompson travel and
tourism sector has produced different tour packages. Consumer will consume only the goods
that will address its need and expectation for this Thomson has to improve the services and
goods supplied. The variations created in the existing packages are to cater the needs of
various customers.
 Branding- The awareness among buyers will be created by amending the existing products
or services offered by this particular entity. This concept has to be created for goods and
services offered by an enterprise. The branding implies promotion, packing, deliveries,
presentation of existing products by applying marketing tools.
 Selling concept- This is regarded as one of the important concepts to be selected by an
organisation as marketing of products are don in order sell to variety of customers. This is
beneficial for Thomson wishes to offer pilgrimage packages to cater the social and religious
needs of different customers. The superstitious needs of all the customers will be fulfilled
which helps kin increasing support of all the customers.
 Value creation- The products supplied to variety of customers in exchange of the prices
charged by the owner. The worth of the products created by enhancing the frequency of
using the products.
 If it will decide to use a selling concept Thomson must concentrate their selling campaigns
towards educating and drawing the customers. In such a case their main thought is creating a
“one size fits all” product and trading those products. There are five alternative concepts
under which organizations carry out in accordance with the marketing: production, product,
selling, marketing, and social marketing concepts.
Production argues that consumers will prefer products more accessible to always be available, so
the company improves the efficiency of the distribution and properties.
This theory is one of the oldest, which is guided by the sellers. Production concept is useful in
two cases. First, when a product is lower than the demand. In this case, managers need to think
about how to increase production. Second, the cost of producing the product is too high, and in
order to optimize them to be increased outputs.

Thompson holidays need to focus on se
1.2 Assess the impact of the marketing environment on travel and tourism business
Thomson Management should consider that marketing campaigns are expensive, an
effective marketing strategy and campaign can bring long term benefits, while a miss targeted
campaign will result in a massive spend with a low return on investment.
Tourism marketing campaigns can promote the destinations, the products, the services or all of them
at the same time. In our case the destinations are Denmark, Amsterdam, Lisbon and Porto, and the
products are 6 day holidays pack with or without flights included.
Thomson has to consider analysing various factors like:
 Competition in supply and sale of goods, provision of services. Market can be secured only
by the companies that best meets consumer needs. Competition forces constantly against
several factors such cost savings, the technical and technological progress. Thomas Cook
will give tough competition to this enterprise who offers variety of products or services.
Thomas Cook will provide different categories prices along with different kinds of prices.
 Political environment is the responsible for the legal framework (laws regulating economic
relations, advertising, consumer protection, environmental protection, and tax law). Health
and safety rules and regulations need to be followed by Thompson in order to survive in the
current travel and tourism industry. These legislations need to be adopted by this enterprise
in order to provide comfortable and safety environment for all the clients.
 Analysis of the political environment will help avoiding political crises and economic crises
caused by political factors. Political changes and instabilities like modifications in
authorities’ policy, unbalanced economy or terrorist acts can affect the company in a
negative way. Terrorist attacks and increasing air pollution in the destinations will in turn
decrease the total arrival count of various buyers. The pilot survey need to be conducted by
this enterprise in order to enhance their current working conditions.
 Economical factors like market structure, productivity, inflation rates , services
merchantability, will affect what will be bought, how much will be bought and at what price
they will be purchased. Interest rates, people's income levels and unemployment rates will
also be economical factors that will affect the market and the companies operating in the
market environment. The inflation rates will induces the variable cost to be incurred by
Thompson holidays that indirectly increases the cost of packages. The increasing cost of
visa and service taxes increases the prices offered to various customers.
 Social and cultural factors like demographics (birth rate and migration, population activity,
lifestyle changes) cultural values, beliefs, and national traditions will influence how
products and brands are received by consumers, how much will be bought and sold, what

resources will be available, what managerial still and selling stile will be used etc. The
religious needs of the customers by added as one of the features of the tourist packages
along with their images in the brochures. The additional feature added such as visiting
temple and pilgrimage centres, shopping destinations.
 The natural environment, geographic location, and climate can create difficulties in
delivering services, providing logistics, supply accommodations, provide safety to
consumers etc. Nations who have geographic environmental limits have to import large
amounts of food which is overpriced and, to some extent, effects the national reign. The
weather conditions of all the tourist destinations are mention on the brochures supplied by
Thompson holidays in order to aware their potential about all kinds of tourist places. The
Island beauty of Amsterdam will attract wide number of visitors.
Marketing the destination should coordinate with the regional development plan, to optimise
the tourism activities and to maximise the economical benefits for the region. The marketing
campaign has to consider the type of destination, urban, mountain, sea side resort etc, and the main
social specifics of the area. A good promotion of the destination will raise customer awareness and
will facilitate product marketing and sales.
Marketing the new holiday products have to take advantage of all the supporting marketing
campaigns created to promote the destinations, even if they were created by Thomson Management,
by government, tourism organisations or even competitors. Good product marketing will facilitate
the sales against direct and indirect competitor products.
1.3 Discuss the factors affecting consumer motivation and demand in travel and tourism sector
To be able to sell our holiday products for Denmark, Amsterdam, Lisbon and Port, we need to know
the tourist motivation for taking a holiday and what are the determinant factors in choosing the
destination and product.
People have various reasons to take a holiday and are motived by different desires and factors like:
the need for interpersonal relationships and esteem, need of intellectual or physical activity’s and
challenges, desire to escape stressful situations or the desire to “have a good time”
When a tourist customer buys a product his decision will be influenced by various factors like :
 Cost of holiday and available budget are key determiners for most consumers. The price is
that things which will determine the future of the business enterprise. The price sensitive
customers are usually affected with the higher prices. The prices set according to specific
destinations as in case of Amsterdam the prices can be higher as this has island beauty which
attracts wide number of customers.
 Location of the destination, access to transport means and cost of transportation will affect

the budget and time send travelling. Wide number of transportation such as roadways,
waterways and airways will decided the amount of tourist packages offered to various
buyers. The Lisbon is relatively less cheap than Amsterdam which directly affects on the
packages. The economical situation will affect consumer’s budgets or will to spend. During
an economical crisis people are concerned about their financial reserves, as a result they
tend to reduce their holidays, look for cheaper alternatives or eliminate the holiday at all.
 Demographics like age, sex, marital status, will influence the type of resort and activities
bought. The customers are welcomed at different destinations without seeking their age,
religion, caste or creed as social equality has promoted.
 Marketing campaigns generated by various government or private organisations have the
power to influence the consumer perception. The promotional campaign will be organised
by this entity by using various mediums such as online website and several social media
platform. The social media has selected as one of the important function which helps in
catering needs and the expectations of different customers simultaneously.
 Political environment, international treaties and visa requirements can support or restrict
freedom of travelling. Right to live in the Amsterdam will facilitate different buyers of
different race and caste freely.
1.4 Analyse the principles of market segmentation and its use
Different tourist destinations enclosed by an entity while designing variety of tour packages
in order to attract wide variety of customers towards this entity. New holiday products toward
Denmark, Amsterdam, Lisbon and Porto have to address the needs and wants of the customer. Each
destination will appeal to a different type of customer.
Market segmentation will categorise and address better the customer needs. Segmenting the market
according to various criteria like, age, sex, education, marital status etc, will help us interpret and
anticipate the customer behaviour, as a result we can establish clear marketing strategies.
The age Consumer is regarded as an important tool in gathering huge number of audiences
as the beauty of different places is that direct weapon in order to attract wide number of customers
towards all the places.
The targets audience of Thompson holidays is young consumers who demands cool and
exotic destinations looking for good time and making new friends. They will be interested more
in destinations similar to Amsterdam. Port and Lisbon will appeal more to older people and
families looking for more quiet destinations where they can enjoy a relaxing time and the
sunshine.
Health and safety acts followed by the travel company will attract old age Parents who will
travel along with their children. They will be concerned by the safety of the children and any

activities that could interest them. Denmark heritage and architecture will appeal to culture
seekers most of them degree educated professionals. Women will welcome spa facilities and
shopping activities, while the man will be more interested in sports and physical based
activities. Income segmentation and professional status can help define the customer
affordability.
Thompson Holidays need on to focus on all these macro environment factors which
enhances the existing business situations. Demographic segmentation where customers are
sorted according to age, gender, religion, lifestyle, income, race, among others. Geographic
segmentation useful when addressing clients in a specific area. Behavioural segmentation means
separating consumers on according to psychology and their way of living life and habits.
Dynamic segmentation is used when considering various factors needed to satisfy customers.
Task 2 The role of marketing as a management tool in the travel and tourism
As an Assistant Marketing Manager we are responsible for doing marketing research and creating
marketing plans, for this reason we need to understand the role of marketing in the management of

tourism businesses, the importance of strategic marketing, the relevance of marketing research in
developing marketing plans and the influence of marketing on the society.
2.1 The importance of strategic marketing planning for a selected travel and tourism business
or tourist destination
The Travel and Tourism businesses are operating in a global competitive market, travel and tourism
businesses are facing direct competition from “next door” businesses and global competitors at the
same time. Destinations in one country are competing with neighbouring towns and with
destinations from all over the globe at the same time. We also have to consider that travel and
tourism is an industry based on a social activities as a result the are influenced by various social
changes, changes that are also influenced by technological changes, political changes, economical
changes, social trends etc.
To survive to this continuous changes a Thomson Management needs to understand the changes on
the market and adapt to them, if Thomson Management wishes to grow it needs to understand
exactly its position on the market, what it wants to achieve and to identify the suitable strategies to
achieve its goals.
For a destination strategic planing focuses public and private resources, facilitate infrastructure
development strategies, will outline the needed legislation and regulations, outline the marketing
and promotional strategies, will establish investment needs etc.
Analysis tools like SWOT, PESTEL, TALC will allow Thomson to better plan their future products
and services by identifying the main strengths, weaknesses and external factors that can affect the
product, the company and the market.
 Strengths are all those internal factors that give the company an competitive advantage, it
can be anything for an unique product, well trained staff, excellent logistics, extra capital
availeble etc.
 weaknesses will be all those internal factors that put the company at a disatvantage, and
they nedd to be addressed as soon as possible.
 Opportunities are external factors that are not depending on the company but can brig
benefits if acted on them; retreat from the market of a main competitor, taxation relief from
government, economical changes etc.
 Threat will be all the external factors that can influence the company in a negative way; a
new stronger competitor on the market, new taxes, political instability etc.

Strategic planing allows a Thomson to plan its growth and to achieve its goals, strategic planing
will define the market positioning of the company, according to its strengths, weaknesses,
opportunities on the market and threats on the market.
As an example, during a recession time when the forecasts are presenting a decrease in demand for
tourism products, Thomson can chose to strategically position on the low cost market this way can
provide more affordable products and base its strategy on high volume of sales on lower values;
Thomson can target specific niche markets and base its growth on lower volume of sales but at
higher margin; it can chose to increase the marketing and promotional campaigns to gain more
market presence over its competitors etc.
The travel and tourism industry recognises for catering different kinds of services to its
variety of customers. The tourism sector known for serving different variety of products in order to
fulfil the higher expectations of different buyers. The recessions in the existing market will
decreases the overall customer base in the existing industry. The cost will increases the tour package
rate that decreases the sales and the revenue generated by an enterprise.
For Thomson Management the strategic planing has to be done considering various factors like the
strengthens and weaknesses of the company and of the destinations presented, the stage of the
product or destination on the product life cycle, political changes, social change, environmental
changes, the threats and the opportunities existing on the market etc.
Strategic planing is establishing a direction in witch the company is heading and acts like the
common nominator inside the company for establishing policies, development plans, budgets etc.
2.2 Relevance of marketing research and market information to managers in the travel and
tourism sector
For Thomson Holliday management to be able to establish strategies and plan its future actions and
budgets, there is a need of information about the market and the destinations that wishes to be
introduced, for this information to be available and relevant, research has to be done and various
research techniques have to be used.
Marketing research and data Thomson's management to design products that are addressing the
market demand, to devise strategies and to respond to market changes. For the strategic level
management of Thomson Holidays, market research and market information is necessary to plan
the correct strategies and to take the correct actions in regards to investments, expansion,
partnerships, products ad services introduced etc, Market research and market information helps

strategic management to avoid pitfalls like expanding during a market or destination down-trend,
introducing products that are not on demand, run campaigns that are targeting the wrong customer
segment etc, at the same time marketing research and information help identify market up trends,
can help decide on what targets are achievable, what products will be profitable, what growth
strategies are viable, what partnerships are needed to increase market share etc.
The manager of Thomson holiday need to conduct the overall market research which helps
in identifying various theories and matters that needs to be focused upon in order to improve the
existing conditions. The market research will help in identifying market trend in the external market
after analysing the internal capabilities of the organisations. There are various ways in which market
research will help the managers of Thomson holidays which is given as below:
 Internal capabilities of an organisation are analyses that help in enhancing the external
market.
 It will results into introduction of new products or services.
For the operational level, market research and market information is essential to achieve the
targeted objectives, to adjust the supply according to the seasonal demand, to adapt on sort term
changes imposed by competitors actions, to budget activities an departments, it helps draft the
operational plans needed to be followed by the functional level marketing, the service standards, the
purchase strategies, the sell policies and promotions, etc.
For the functional level marketing information helps deal with day to day issues like anticipating
and satisfying customer expectations, anticipating stock fluctuation and staffing needs in
accordance to anticipated demand etc.
2.3 The influence of marketing on society
When deciding on a marketing campaign for Thomson we need to consider that marketing is not
only reacting to the market but it also influences the market. Marketing principles state that
marketing has to satisfy the consumer needs but at the same time the end scope of marketing is to
sell, this means changing the consumer perception about products and services so that he will be
more inclined to buy the ones sold by Thomson. Or this reason marketing is not only satisfying
consumer needs and wants but it also influence them and some times it creates them. To be able to
understand this idea we will use as an example Thomsons new cultural package; the basic needs
that need for a consumer looking for a holiday is that of relaxation and recreation, for the cultural
tourists this needs paired also with a need/want for information, learning or self affirmation; this
basic needs and wants can be satisfied also by visiting also other locations that are maybe cheaper,
closer to the consumers home, or even more rewarding. Thomsons marketing campaign needs to

sale its new product to the consumer, this means changing customer perception, it means
convincing the customer not only that that he needs and wants to go to the destinations promoted by
Thomson but also that he wants the 6 day product above what other competitors may offer.
As we can see from this simple example, marketing is influencing and changing consumer
perceptions and their affinity towards a product and a destination, if we consider that tourism is a
social activity we can see how by influencing the consumers marketing is influencing the society.
To be able to present its products Thomson needs to present the destinations to its customers this
affects not only the consumers ideas on their need and wants but also its perception in regards to the
destination. Marketing campaigns have the power to influence how visitors are seeing the
destination before actually arriving at the destination, this will reflect also in their behaviour at the
destination.
Because of this interactions between marketing, markets and destinations marketing is one powerful
tool that has the power to influence societies at both origin and destination.
Task 3 The role of the marketing mix in the travel and tourism sector