Strategic Marketing in Travel and Tourism: First Choice Case Study

This report provides a detailed analysis of marketing within the travel and tourism sector, with a specific focus on First Choice. It begins by discussing core marketing concepts such as needs, wants, demands, products, value, satisfaction, and quality, emphasizing their importance in the tourism industry. The report assesses the impact of the marketing environment on First Choice, considering both internal and external factors, and explores factors affecting consumer motivation and demand in travel and tourism, including personal budgets, safety, environment, and social factors. Furthermore, it analyzes market segmentation principles and their application to First Choice's marketing planning, highlighting demographic, geographic, psychographic, and behavioral segmentation. The report also examines the importance of strategic marketing planning for First Choice and discusses the relevance of marketing research and market information to managers in the travel and tourism sector. Finally, it evaluates the role of the promotional mix and provides a plan for an integrated promotional campaign for First Choice Summer Deals 2019 holidays, incorporating elements such as advertising, sales promotion, public relations, direct marketing, and personal selling.

MARKETING IN TRAVEL AND TOURISM

MARKETING IN TRAVEL AND TOURISM
Contents
Introduction............................................................................................................................. 3
Task1...................................................................................................................................... 4
LO 1. Understand the concepts and principles of marketing in the travel and tourism sector..........4
P1.1 Discuss the core concepts of marketing for the travel and tourism sector...........................4
P1.2 Assess the impact of the marketing environment on individual travel and tourism businesses
such as First Choice and tourist destinations with reference to Turkey and Spain......................7
P1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism
sector............................................................................................................................... 8
P1.4 Analyse the principles of market segmentation and its uses in marketing planning at First
Choice.............................................................................................................................. 9
Task 2................................................................................................................................... 11
LO 2. Understand the role of marketing as a management tool in travel and tourism...................11
P2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism
business (First Choice) or tourist destination (either Turkey or Spain)....................................11
P2.2 Discuss the relevance of marketing research and market information to managers in the
travel and tourism sector with reference to First Choice........................................................12
P2.3 Assess the influence of marketing on society...............................................................13
Task 3................................................................................................................................... 14
LO 3. To understand the role of the marketing mix in the travel and tourism sector.....................14
P3.1 Discuss issues in the product, price and place elements of the marketing mix with reference
to First Choice Summer Deals 2019 to Spain and Turkey.....................................................14
P3.2 Assess the importance of service sector mix elements to the travel sector........................14
P3.3 Apply the concept of the total tourism product to an individual tourism business such as
First Choice.................................................................................................................... 14
Task 4................................................................................................................................... 17
LO4: Be able to use the promotional mix in travel and tourism.................................................17
P4.1 Assess the integrated nature and role of the promotional mix.........................................17
P4.2 Plan and justify an integrated promotional campaign for First Choice Summer Deals 2019
holidays.......................................................................................................................... 19
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Conclusion............................................................................................................................. 22
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Introduction
The present report is going to discuss about the travel and tourism sector for being an
important business and crucial turnover to the global economy. The rate of progress and
growth for a nation are largely dependent upon the growth of the tourism sector of the
country Further the report is going to discuss the detailing of the various concepts that are
utilized and applied within the travel and tourism sector.
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Task1
Executive Summary
This report elaborates the core concepts of marketing in reference to tourism sector. An
assessment of the impacts of marketing plan of First Choice in context of Spain was done
here. Apart from this, the factors affecting the consumer demand in this sector were discussed
here along with the principles of marketing segmentation in context of First Choice.
Introduction
Marketing is the backbone for every business. In this report, a discussion on the core
concepts of marketing in context of tourism sector is done. In addition to this, an assessment
of the impacts of the marketing on the First Choice with reference to Spain and Turkey.
Moreover, a discussion on the factors influencing the consumer demand in the tourism sector
has been carried out. The report ends with an analysis of the principles of segmenting the
market and its uses in marketing plans of First Choice.
LO 1. Understand the concepts and principles of marketing in the travel and tourism
sector
P1.1 Discuss the core concepts of marketing for the travel and tourism sector
The concepts of the marketing revolves around the features, such as needs, wants and
demands, products, value, satisfaction & quality, relationships, transaction, exchange and
market. Marketing in context of tourism starts from the demand and need of the customers
and ends after they achieve a level of satisfaction. It is the duty of the manufacturers to
provide the quality products and services so as to develop a brand and earn customers'
loyalty. Since the tourism market is ever-changing, therefore it is the prime responsibility of
the service providers to study and analyse the current trends and changing needs of the
customers. Consumers are more interested in comparing the value of the service with its
quality. Before making any payment, customer usually evaluate the worthiness and
usefulness of the service. The figure 1 shows the core concept of marketing as a cyclic
process (Armstrong, et.al, 2015). The travel industry of the Turkey and Spain are the fastest
growing in the world. Therefore, First Choice has to adapt to the situation and should work in
accordance with the cycle of as mention later in this section.
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Needs
Need are the quintessential for survival. It is more of a state of deprivation. The needs of
consumer plays a crucial part in the tourism mechanism. If a business fails in identifying the
needs of the customers in tourism sector, then it may have some serious consequences. If
needs are not fulfilled, then this may leads to dissatisfaction. The need are necessary to
sustain the global demands of the tourism.
Wants
Specific wants are the source of travel motives that a consumer desire to experience. Wants
include, desert safari, bird century visit, camping in the woods, etc. Tourism businesses must
understand the demands of the tourist and plan their strategies in accordance with them only.
The present situation have led to ever increase in the satisfactory level of the customer.
Demands
The customer demands are the inner feelings for experiencing the new things. It is
characterised by the willingness to buy need or want. These can be influenced by external
pull factors. In addition, demands are highly influenced by the wants of the tourism industry.
Products
To satisfy the customers’ needs, wants, and demands, businesses in tourism sector have
designed and launched various services, such as enclave tourism, resorts, water cities, fun
parks, etc. These are further bifurcated into services as per the socio-economic status of
consumers (Armstrong, et.al, 2015).
Value, Satisfaction, Quality: Customer compare the value of the commodity with its
quality. If the two matches, then this leads to satisfaction of the customer. If this goes in the
opposite direction, then it may create dissatisfaction.
Exchange, Transaction
Exchanging the interest of the customer and there needs through the customer are looked
upon the tourist establishment. Before making any payment, customer usually evaluate the
worthiness and usefulness of the service.
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Figure 1: Core Marketing Concepts
(Source: By Author)
The important techniques and principles are promoted for instance through photography,
destination blog, article and many more. They often play the major role in awarding the
people of the destination extraordinary features.
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P1.2 Assess the impact of the marketing environment on individual travel and tourism
businesses such as First Choice and tourist destinations with reference to Turkey and
Spain
Marketing environment is composed of both internal and external factors that directly or
indirectly influence the business. First Choice is a travel and tourism organisation that
functions as a subsidiary of TUI Travel. Due to the market uncertainties, the company is
reshaping its marketing strategies in Spain. Marketing environment is influenced by the
customers’ need, rising competition, pricing strategy of rivals, other demographic and
psychological factors. Understanding the interrelationship between the business and the
customers is important. The strategic and marketing mechanism of First Choice operates
within three types of marketing environment.
Macro Environment: It comprises political, economic, and social factors.
Micro Environment: It includes business-related internal factors, such as business plans,
marketing strategies, workforce segment, etc.
Market Environment: Market environment, consumers, suppliers, and third parties.
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P1.3 Discuss the factors affecting consumer motivation and demand in the travel and
tourism sector
There are many reasons for people to travel, such as family living in other city, work trips, to
recreational and pleasure. Destination and mode of travel depend on multiple factors that
affects the consumer behaviour. Those factors have been discussed below:-
Personal Budgets: The mode of travel and travel destination choices are based on the
savings of individuals. Some might prefer to travel via flights, whereas a few might have
desires to travel via ships. All depends on budget. Similarly, for booking the hotels, some
might choose suite or luxury rooms, whereas some may book cheap motels.
Safety and Security: It is the motivating factors. Nobody wants to travel to Syria right now
because of the terrorist activities of ISIS. One may not feel safe in such environment. On the
other hand, Switzerland, London are the most famous travel destination because travellers
feel safe in there.
Environment: Countries having a soothing environment and are full of natural resources are
most opted travel location. It drives the travellers to come and live in harmony with nature.
Personal Factors: It includes tourist personality, attitude, lifestyle, perception, age, reference
groups. These are also called individual explicable variables.
Social Factors: Factors like family, culture, beliefs, social status, etc., define the traits of an
individual. Therefore, these factors have a strong effect on individual’s behaviour.
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P1.4 Analyse the principles of market segmentation and its uses in marketing planning
at First Choice.
It is a well-known fact that the service sector is quite dynamic and unstable sector. The
market keeps on diversifying and changing. Therefore, market analyst and business
strategists have bifurcated the market into different segments (Buhalis and Foerste, 2015).
“Market segmentation” is the process of segmenting the market into different sections in
which consumers of similar traits are grouped in one section. The whole principle behind the
segmentation is to satisfy the needs of the different customers in the best way possible. In
context of First Choice, the segmentation could be done on the basis of socio-economic status
and varying needs and wants of the customers.
Forming a business plan in order to grow the business in Spain requires a focus on different
sub-group. This will help in the growth. It is important that First Choice should focus on
more than one sub-section as the needs might be varying.
(Figure 2: Market Segmentation and Factors for Segmentation)
(Source: Mbaskool.com, 2016)
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There are four crucial variables in market segmentation that are explained below:-
Demographic Segmentation: this is based on the income, age, gender, education, economic
status, etc.
Geographic Segmentation: This is based on the nations, region, state, postal codes, etc.
Psychographics Segmentation: This is based on physical characteristics of people, such as
lifestyle, social group, etc.
Behavioural Segmentation: This is based on the past purchasing behaviour of the
customers.
Market segmentation is important because of the following reasons:-
 It assists in the product development in reference to the wants of the consumers.
 It strengthen the hotel-consumer relationship
 It sets the objectives of the marketing
 It helps in budget allocation, planning and controlling the market variables.
Conclusion
This report elaborates the core concepts of marketing in reference to tourism sector. An
assessment of the impacts of marketing plan of First Choice in context of Spain was done
here. Apart from this, the factors affecting the consumer demand in this sector were discussed
here along with the principles of marketing segmentation in context of First Choice.
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Task 2
LO 2. Understand the role of marketing as a management tool in travel and tourism
P2.1 Analyse the importance of strategic marketing planning for a selected travel and
tourism business (First Choice) or tourist destination (either Turkey or Spain).
For First Choice, there are numerous benefits of strategic marketing planning that are
intrinsically connected with the success and growth of the organisation (Buhalis and Foerste,
2015). The importance of the strategic marketing and its utilization over the First Choice
marketing plan in Spain are discussed as follows:
 It helps the organisation in directing the business growth. It includes establishment of
robust goals that assist the business to focus on specific areas, such as cost, customer-
related goals.
 During initial period, operating in Spain might require some initial processes which
are unproductive now. Therefore, strategic planning helps in removing them and
enhances the efficiency by improving focus on essential factors.
 The framework defined under strategic marketing plan gives a reference for
budgeting, defining the action plan, and providing customer service.
 It provides a thorough understanding of target audience and market. This helps the
management of First Choice in decision-making process.
 In short, strategic management plan helps in driving the essential funds, resources,
and achieving marketing goals.
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P2.2 Discuss the relevance of marketing research and market information to managers
in the travel and tourism sector with reference to First Choice.
Market research is the biggest factor to sustain any business as market research helps the
company to understand the needs and demands of the customers. For a tourism company like
First choice the demands of the customers leads the company to their motive and runs the
business efficiently. The following points briefly discusses the importance of market research
● Before investing in a business it is wise to invest in market research and know the
demands of the customers and work accordingly. It gives clarity to the company in
understanding the market and attract more customers.
● Market research should always be done in keeping the relevant topics in mind and the
data collected should be compared and analysed which can help to hinder the growth
of the company.
● Research helps in understanding the present tactics of business and modify them to
have an advantage over the competitors.
● The managers of the tourism company needs to extract the relevant data from the
market research and make strategies to develop the quality of service provided to the
customers.
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P2.3 Assess the influence of marketing on society
An important part of the marketing is that it cannot take place without the existence of
society. The marketing is itself made for exploiting the society in order to benefit the
population and expand the growth opportunities. The process of management within a
business operations of First Choice are always targeted towards identifying the ways through
which they can fulfil the customer demands and reach beyond their expectations. The role of
promotion and marketing is one for the crucial elements of marketing which deals with the
running trends over the society. There are other factors within the marketing operations
which include direct marketing, advertising and sales promotion along with public relations.
Further, the marketing have been an integral part of the society (Buhalis and Foerste, 2015).
This is because the people have become habituated over getting influenced through reading
and advertising over the audio and visual medium. It is the people who feel that they need to
get aware through the marketing of different tour and travel destination. As per the business
environment the marketing strategies are set and made to attract the maximum of the target
population to a particular destination.
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Task 3
LO 3. To understand the role of the marketing mix in the travel and tourism sector
P3.1 Discuss issues in the product, price and place elements of the marketing mix with
reference to First Choice Summer Deals 2019 to Spain and Turkey
P3.2 Assess the importance of service sector mix elements to the travel sector
P3.3 Apply the concept of the total tourism product to an individual tourism business
such as First Choice
Role of the marketing mix in the travel and tourism sector
Date: June 22, 2018
Marketing mix is considered to be one the essential components for any business field. It is
the crucial tool for developing an effective marketing strategy. In this article, the issues in
different elements of marketing, such as price, product, place, and promotion have been
discussed in context of First Choice Summer Deals 2019. Along with this, an assessment
of the importance of mix elements in tourism sector has been done. In the last, the
application of the different concepts of the “total tourism product” to First Choice has been
done.
Issues in the product, price and place elements of the marketing mix
The elements of the marketing mix have their individual weaknesses that underemphasize
certain important marketing tasks. First Choice Summer Deals 2019 is the service offered
specifically for Spain and Turkey, there might be some issues mentioned below in product,
price, and place elements of marketing mix (Töytäri and Rajala, 2015).
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Product: Identification of the needs of the customers is the main issue. Missing out even a
single feature (complimentary breakfast) can divert the attention of the customers. Next is
branding strategies is another challenge for the First Choice.
Price: The problems here is that customer compares the price of the service with the
quality and when they find the similar product at lower price they will deviate towards it.
Price sensitivity of customer is the issue.
Place: This is the platform where the buyers look for the service of First Choice. This
could be a website or offline mode of bookings. The issues arise in place is the right access
of the distribution channels, competitors strategies, ease of availing the services.
Importance of service sector mix elements to the travel sector
Tourism is basically a part of the hospitality industry that provides services to the
customers in return of certain amount of charge. As a result tourism industry sustains and
functions with the other service industries such as hotels, restaurants etc. So for a travel
agency such as First Choice while travelling to a new country the tourists need to be
provided with accommodation and fooding services. It is not possible for any company to
buy hotels in every city so the tourism company deals with certain chain of hotels and
always keeps the customers in those same hotels (Schegg and Stangl, 2017). Today Spain
have accomplished being the most prevalent decision of the traveller goal. Besides, the
planning cost in the end came to be viable after the stream of traveller helped in catching
the top level augmentation towards the economy of the country.
This ensures that the tourists get same level of service all the time. Thus the mix of the
service industry ensures better and all-round service provided to the customers and enhance
their travelling experience. First Choice has got linked with the top hotels in Spain and
Turkey as a result tourists travelling with First Choice has the luxury to experience the best
hotels of the city. Thus this mix in service business helps in the development of the whole
hospitality industry together.
Concept of the total tourism product to an individual tourism business such as First
Choice
Every tourism product include different aspect of offering travelling experience and First
Choice similarly covered various aspects of travel offerings to the tourist from different
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parts of the world. To an individual business consumer are willing to take the most of the
benefits associated with the customer benefits and also make an impact over the budget of
the customers. A single stop solution for all the other aspects of travelling such as
sightseeing to accommodation and fooding and providing transportation service.
For instance when First Choice designs a voyage through Spain at that point factors, for
example, cost of going to well-known visitor spots around Barcelona or Madrid or cost of
visit amid the celebrations will be higher so remembering that the touring should be
finished. There are in excess of one online networking stage because of which the objective
populace extended to limitless open doors in a little timeframe (Horner and Swarbrooke,
2016). For the present scenario, Spain and Turkey are going to be the host of offer in them
whole package service and products in the forms of summer deals.
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Task 4
LO4: Be able to use the promotional mix in travel and tourism
Executive Summary
This report tried to explain the promotional mix of an organisation dealing in the tourism
sector i.e., First Choice. An assessment of the key function and the role of promotional mix
was done in here. In addition, an integrated promotional campaign had been planned for the
First Choice Summer Deals 2019 holidays.
Introduction
The aim of this report is to make an attempt to use the promotional mix in the tourism sector.
To do that an assessment of integrated nature of the promotional mix is done along with its
role in context of First Choice. Also, a plan for the integrated promotional campaign for First
Choice Summer Deals 2019 holidays is created in this section.
P4.1 Assess the integrated nature and role of the promotional mix
The promotional mix can be referred to the combination of different tools and elements that
are brought into use by the business organisation in order to promote its services. In context
of tourism sector, this can comprise the use of persuasive communication with prospective
consumers, use of media, etc. Businesses are using some uniqueness in their promotional
strategies. For example, hotels are offering the complementary free breakfast for their
customers along with a major discount on room booking (Wilden and Gudergan, 2015).
Tourism sector is a service sector where promotional mix is quite significant.
By making use of integrated nature of the promotional mix, consumers can be made aware of
the product specifications. Information like who develop the product, what are the guidelines,
terms and conditions associated with the product, etc. The significance of an integrated
promotional campaign is given below:
 Large number of contacts with the consumers.
 Excessive use of specialized media
 Widespread the use of internet
The promotional mix can be classified into two components:-
Traditional Marketing: This includes telephonic promotions, public relations, advertising
campaigns, news coverage, etc.
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Direct Marketing: In this, the hotels, bars, restaurants, etc., promote their services by
providing various discount offers, gift cards, coupons, etc. The advantage of this type of
marketing approach is that it forms a two-way communication between the promoters and
consumers (Töytäri and Rajala, 2015).
The role of promotional mix can be elaborated as follow:
 It helps in garner the attention of loyal customers.
 It creates and advance the brand awareness
 It increase the customer base by increasing the customer traffic
 It builds profits by increasing the sales.
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P4.2 Plan and justify an integrated promotional campaign for First Choice Summer
Deals 2019 holidays.
The most effective promotional campaign are witnessed by Turkey and Spain have where the
nation experienced a high boost in the economy through the tourism sector. First Choice is
totally involved within the marketing campaign and the highlight the discoveries that are
most likely to gain the tourist attractions. The process of forming a social interaction and
blurring them through the single platform of promotional campaign would help in gaining the
most recognition of its made offers and its advantages over the available competitors. The
prime aim for the planning is to provide the tourist with never before experience and also
adopt the most attractive form of offers. The economy of each nation is additionally
influenced profoundly by the development of the tourism business which came to be alive
after the relaxation exercises got its build-up (Isik et al. 2018). The ascent in pay level of the
general population has empowered them to accept the open door of going on the travel easily
of transport and web communication through promotional campaigning.
Further, First Choice Summer Deals 2019 holidays program are promotionally integrated to
maximize the flow of tourist over the destination through bailing their service and benefit
them by providing unmatchable experience.
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POSTER
TASK 4
LO4: Be able to use the promotional mix in travel and tourism
P4.1 Assess the integrated nature and
role of the promotional mix
The promotional mix can be referred to the
combination of different tools and elements
that are brought into use by the business
organisation in order to promote its
services. In context of tourism sector, this
can comprise the use of persuasive
communication with prospective
consumers, use of media, etc. Businesses
are using some uniqueness in their
promotional strategies. For example, hotels
are offering the complementary free
breakfast for their customers along with a
major discount on room booking. Tourism
sector is a service sector where
promotional mix is quite significant.
By making use of integrated nature of the
promotional mix, consumers can be made
aware of the product specifications.
Information like who develop the product,
what are the guidelines, terms and
conditions associated with the product, etc.
The promotional mix can be classified into
two components:-
Traditional Marketing: This includes
telephonic promotions, public relations,
advertising campaigns, news coverage, etc.
Direct Marketing: In this, the hotels, bars,
restaurants, etc., promote their services by
providing various discount offers, gift
cards, coupons, etc.
CONTINUATION OF P4.1
The advantage of this type of
marketing approach is that it
forms a two-way communication
between the promoters and
consumers.
The role of promotional mix
can be elaborated as follow:
• It helps in garner the attention
of loyal customers.
• It creates and advance the
brand awareness
• It increase the customer base
by increasing the customer
traffic.
It builds profits by increasing the
sales.
P4.2 Plan and justify an integrated promotional campaign for
First Choice Summer Deals 2019 holidays.
The most effective promotional campaign are witnessed by Turkey and
Spain have where the nation experienced a high boost in the economy
through the tourism sector. First Choice is totally involved within the
marketing campaign and the highlight the discoveries that are most likely
to gain the tourist attractions. The process of forming a social interaction
and blurring them through the single platform of promotional campaign
would help in gaining the most recognition of its made offers and its
advantages over the available competitors. The prime aim for the planning
is to provide the tourist with never before experience and also adopt the
most attractive form of offers. The economy of each nation is additionally
influenced profoundly by the development of the tourism business which
came to be alive after the relaxation exercises got its build-up (Isik et al.
2018). The ascent in pay level of the general population has empowered
them to accept the open door of going on the travel easily of transport and
web communication through promotional campaigning.
Further, First Choice Summer Deals 2019 holidays program are
promotionally integrated to maximize the flow of tourist over the
destination through bailing their service and benefit them by providing
unmatchable experience.

MARKETING IN TRAVEL AND TOURISM
Conclusion
The report began with explaining the promotional mix of an organisation dealing in the
tourism sector i.e., First Choice. Later on, an assessment of the key function and the role of
promotional mix was done in here. Before ending, an integrated promotional campaign had
been planned for the First Choice Summer Deals 2019 holidays.
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Conclusion
The present study is completed for highlighting the various aspects of marketing within the
tourism industry and how does it play an important role in expanding the economy of a
nation. For the present study the Turkey and Spain has been chosen as the location with
respect to understanding the activities of the First Choice tour company of TUI group. The
summer deals of the First choice are planned and promoted through the implementation of
various elements of marketing mix. In the First Choice will acquire the most extreme benefits
in the wake of meeting with the client necessities and create different openings. To start with
decision will embrace the patterns for the present time and procuring the greatest benefits.
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