Marketing in Travel and Tourism Sector: Strategic Analysis Report

This report provides a comprehensive analysis of marketing strategies within the travel and tourism sector, focusing on the case of Thomas Cook. The report delves into core marketing concepts, examining consumer needs, value creation, and the importance of customer satisfaction. It explores the impact of the marketing environment, including micro and macro factors influencing the industry, such as political and technological considerations. The report further investigates factors affecting consumer motivation and demand, including personal choices, group influences, and economic conditions. It highlights the significance of market segmentation, discussing geographic, psychographic, behavioral, and demographic segmentation strategies. Strategic marketing planning is emphasized, along with the relevance of marketing research and its influence on society. The report covers the importance of strategic marketing, the relevance of market research, and the influence of marketing on society within the travel and tourism sector. The report discusses how Thomas Cook uses marketing strategies to create value for customers, analyze the market environment, and segment the market for its holiday packages in Morocco and Egypt.

MARKETING IN TRAVEL
AND TOURISM SECTOR

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
TASK 1 .....................................................................................................................................3
1.1 Core concepts of marketing in travel and tourism sector................................................3
1.2 Impact of marketing environment on travel and tourism sector......................................4
1.3 Factors affecting consumer motivation and demand........................................................5
1.4 Principles of market segmentation and its use in marketing plan....................................6
TASK 2......................................................................................................................................7
2.1 Importance of strategic marketing planning.....................................................................7
2.2 Relevance of marketing research and market information to managers..........................8
2.3 Influence of marketing on society....................................................................................9
TASK 3....................................................................................................................................10
.............................................................................................................................................10
TASK 4....................................................................................................................................19
CONCLUSION........................................................................................................................19
REFERENCES.........................................................................................................................20

INTRODUCTION
Marketing is a continuous process which helps the organisations in creating values for
customers which thereby assist in creation of good relations with them along with retention
for a long term. The marketing helps in enhancement of sales volume and revenue generation
with maximum customer satisfaction. The travel and tourism sector is a sector that is growing
rapidly with a faster pace. The revenues generated through travel and tourism sector
contributes largely for the development of economy (Beaver, 2015). The present report is
based on marketing with special reference to travel and tourism industry. In this context, the
organisation selected for study is Thomas Cook which is a famous tour operator company
based in London. The said firm is successfully operating in the global market and has
achieved big success on the basis of its exclusive services. The present study has been carried
on the studying the plan of mentioned enterprise for summer holiday package which is
planned in Morocco and Egypt. For this, the company is making marketing efforts with a
focus on business environment in both countries.
TASK 1
1.1 Core concepts of marketing in travel and tourism sector
The core concepts in travel and tourism sector that is related with marketing has
various elements that helps in studying the preferences of customers. This study is used by
the organisations working in these sectors so that they can make their services and products
based in this study. The major elements in this concept which are studied in the marketing are
as follows:
 Demands and needs of customers: The market is composed of a numerous
customers who have different needs and demands. To serve this large number of
consumers and satisfy them is a complex task for which it is necessary to make
marketing plans. Therefore, companies in travel and tourism sector like Thomas Cook
use to make strategies to study the market and customers. This gives knowledge of
current trends prevailing in market (Boniface, 2012). On this basis, the organisation
makes holiday plans that can serve customers’ in by effectively attaining the travel
needs having all the facilities. The organization ensures to make the travel and
tourism plans as per the changing needs and demands of the consumers. Thus, the said
firm used to provide different packages of holiday trips to customers.

 Creation of value for customers: The customer should be provided with high quality
services so they can feel that the services were worth the money they paid. They
should not have doubts regarding the service or feel cheated in any way. Thus it can
be concluded that customer satisfaction and good quality service go hand in hand
(Horner, 2012).
 Market and services: Various travel and tourism companies make customized
packages which offer complete trip at desired destinations with facilities of travelling
to comfortable accommodations. Thomas Cook provides wide range of affordable
packages and premium packages for customers after the analysing their individual
needs and demands. They plan for rendering services at different holiday destinations
with various offers that can attract consumers. For this, they make contact with
various service providers as well who can act as a link between customers and
company.
 Exchange process: Some customers have variety of demands which leads to change
in the offers and packages. This may lead to hike in the price of the packages however
the emphasis is laid more on the customer satisfaction as the customers are usually
ready to pay a bit more when it comes to fulfilling their demands (Hudman, 2013).
 Wider role in travel and tourism sector: Thomas Cook provides a wide range of
services and has slowly expanded its market in taking care of the customer’s
accommodations and entertainment as well. In short it has expanded its services in
providing a complete holiday plans at favourite destinations and relived customers
from long and weary travel planning.
 Value and satsifaction: The marketing in travel and tourism is an important work
which must be done with a consideration on value of services and satisfaction level
provided by it. This will help in improving the image of mentioned company with use
of better tools.
1.2 Impact of marketing environment on travel and tourism sector
Thomas Cook is planning to come up in market with a new plan of Summer Holiday
package to give a complete trip and leisure facilities at Morocco and Egypt. For this, the
company has made a plan to assess the market environment of both places so that new plan
can be incepted with more developed efforts (Gilbert, 2011). The study of market

environment can be done by studying various micro and macro factors to know different
favourable and unfavourable factors which are as follows:
Micro factors Customers: The customers are the major segment that should be focussed while
planning for any strategy. The current strategy of holiday planning at Egypt and
Morocco needs to be made with an emphasis on customers’ likes and demands. The
target customers can be those who are interested in historical places. Some customers
have variety of demands which leads to change in the offers and packages. Besides
this, the package should be made available at standard rates that can be affordable for
customers so that it can be easily accepted by customers (Jackson, 2016). Competitors: Thomas Cook should also monitor the moves of its competitors in
market. It is apparent that many tour operating companies offers various packages on
cheap prices. There are many competitors in market for said organisation like TUI
which provide attractive packages of holiday. Therefore, it is necessary for Thomas
Cook to launch the plan with some innovation.
Macro factors Political factors: For entering into a new market with any product or service, it is
necessary to know the political and legal environment of that country (Moutinho,
2011). This will help in designing plans and strategies according to the political
factors because of which the organisation can better understand the impacts on plans.
The mentioned firm should make a SWOT analysis for the said country so that it can
take all the steps carefully. Further, it will be wise for the organisation to make an
analysis on various competitive policies of Egypt and Morocco as well so that fair
competition can be maintained.
 Technology: The technology has a great role in present business world especially in
context of marketing field. The marketing of various new products and services can
be done with the help of assorted ways through digital platforms. The cited business
firm can give the knowledge of new Holiday plan at Egypt and Morocco through e-
brochures, social networking sites and by its official website as well (Hudson and
Thal, 2013).
1.3 Factors affecting consumer motivation and demand
The customers have a variety of needs and demands where they use to decide about
purchasing of products and services. The decision is taken by looking on various factors like

price, quality, utility etc. On this basis, Thomas Cook can make a market study so that latest
trends in market related with various forces that creates demand and supply can be identified.
Thus, the organisation can make a customised product that has all the features as per need of
consumers. The cited firm can have a study on market to know the factors that can affect
customers’ demand and needs which are as follows:
Personal choices: In context of holiday trips, the consumers make plans and choose their
destinations as per their hobbies and interests (Evans, Stonehouse and Campbell, 2012). For
instance some may have interest in historical and cultural places while some are nature lover.
On this basis they choose the place and make plans for travelling. The cited enterprise should
target customers on this basis and make plans for availing packages on their interest basis.
Impact of groups: It is apparent that a person mostly takes decision after consulting it from
his various social groups, friends and family members. They have the power of impacting the
decision of that individual as per their personal experiences. Therefore, it is necessary that
company makes good marketing plans so that organisation can make a good image of the
services provided so that more customers can prefer the said firm for travel and touring
purposes (Huang and et.al.,2013).
Economic conditions: The economic conditions of country help in getting knowledge about
present purchasing power of people. This will help in making forecasting about the
consumers so that new plan of holiday package can also be made. This will also be of enough
helpful in fixing process of this package.
Consumer behaviour: The consumers' behaviour fluctuates frequently as different customers
have variety of demands and preferences. The changes in their demand and purchase patterns
are affected by price of the product or service, latest trends, variety of choices etc. All these
factors paly an important role in affecting the behaviour of conumers in making decision for
purchase of product or service whcigh must be considered by Thomas cook while placing the
summer holiday package before clients.
1.4 Principles of market segmentation and its use in marketing plan
Various companies use to make segmentation of market so that they can enter into
market with more systematic plan. This segmentation helps in targeting customers on
assorted basis so that the firms can have a more systematic plan for individual customers on
the basis of their choices and preferences (Molina, Gomez and Martín-Consuegra, 2010). The
segmentation refers to the classification of market into various subsets on the basis of

geographical, psycho graphical and behavioural phases. Thomas Cook can also make
segments for its new plan which can have following segmentations:
Geographic segmentation: The said segmentation criterion makes division on the basis of
geographical location of customers. The present plan is based on travel and tour of Egypt and
Morocco. Hence, the mentioned organisation will make segmentation by selecting customers
who can be more interested in these countries like who are more in more proximity to these
nations.
Behavioural segmentations: This segmentation strategy makes classification on the basis of
various preferences, behaviours, attitudes and knowledge of customers. This also includes
those customers who are brand conscious and loyal to them. Thus, the cited firm can divide
customers by knowing their perceptions along with a focus on brand loyal customers
(Dasgupta, 2011).
Psycho graphic segmentation: This segmentation makes classification on the basis of
various choices, interests, lifestyle of customers etc. On the basis of these factors, consumers
use to make their purchasing decisions. Thus, the mentioned enterprise can also make target
customers to those who are interested in travelling and touring.
Demographic segmentation: this segmentation includes customers in wider sense as this
makes division based on the age, gender, income, ethnicity, education level etc. In context
Thomas cook, the company can provide various tailor made packages for customers. In
current plan also it can avail the services with some modifications to meet the needs of
consumers (Goodall and Ashworth, 2013).
TASK 2
2.1 Importance of strategic marketing planning
Strategic marketing is generally done by the top management which aims at achieving
the goals of the organisation by various marketing strategies. It is necessary to know the
market before plunging into making plans. Knowing the demands of your customers makes it
easy to direct plans. Keeping in mind the above point it is necessary for the travel and tourism
business to fulfil the demands of the customers satisfactorily. Thomas Cook is planning its
new and attractive holiday package to Morocco and Egypt. It has put into task various
marketing strategies aimed at potential customers who would gladly try it out. They aim at
expanding their business globally and deal with any problems that might hamper with their
business (Xiang and Pan, 2011). To ensure their effectiveness in business is the best among
all competitors they use SWOT analysis which are as follows.

Strengths  Thomas Cook has a well-built goodwill in the market. It is one of
the foremost travelling agencies in the world.
 It renders a variety of service by availing travel and tourism
packages as well as holiday packages along with many other
services. Cited company has continuously built its strength over
past years that consist of its strong financial statements and brand
portfolio.
Weaknesses  The company has been criticised in past years for its business
model which may affect its present image for new product.
Opportunities  The company has huge market with various technological
developments that can help in marketing and promotional tools
greatly.
 The cited firm has opportunity to develop its business model and
base it on new practices.
Threats  The level off competition is very fierce in market which makes
very difficult for Thomas Cook to compete and survive.
 Other rival firms and tour operating agencies are offering similar
packages that have better offers to attract customers (Hays, Page
and Buhalis, 2013).
The PLC or product life cycle is also a good tool while making strategic marketing
plan. This includes various stages that a new prouct or service will go through. The primary
stages included in PLC for new service of Thomas cook will be:
 Introduction: This is the initial stage of Summer holiday package where company will
introduce its service by creating awareness about it among customers. This will help
in developing market for new service.
 Growth: This stage will attempt to make brand recognition in market so that it can
capture large market share from the said product. This will include various techniques
of promotions, and highlighting features of product.
 Maturity: This stage demonstrates higher growth of sales to diminish slightly. The
competition become fierce here in similar products that makes market share of
product to be distributed among various competitors.

 Decline: This features the declining stage of product where it becomes necessary for
organisation top add new attributes in product that can draw attention of customers.
The firm, can also go for reducing prices. If the firm will not adopt any new strategy,
the product can loss the complete market.
2.2 Relevance of marketing research and market information to managers
The marketing research and market information are useful tools that are helpful in all
strategies of marketing. The utility of these two measures increases while planning for launch
of any new product or services. For the purpose of introducing a new product, company use
to make a market study to collect various information that can aid in formulating strategies
for new product or service. Besides this, the information of market is collected so that
assorted data and information about customers’ preferences, choices and current trends can
be acquired. Further, this also supplies constructive information about competitors as well so
that plans can be made accordingly. Thomas Cook can also take aid of this approach and gain
various advantages as below:
Customer oriented approach: The market study and research is completely a customer
focussed strategy that helps in getting a lot of information on customers’ choices and tastes
(Morrison, 2013). The said company can also embrace this study and collect data and
information of market. On this basis, organisation will be able to focus on right target
customers by identifying potential consumers. Moreover, those customers who have interests
in travelling, have good income level and brand conscious can be targeted for new summer
holiday package with customised facilities.
Concentration on CSFs: The mentioned firm should make plans by identifying its critical
success factors which becomes easier by studying the market. Thomas Cook has been a good
brand in providing travelling services with cheapest and comfortable prices. Therefore, the
company can concentrate on this factor to create hype in market by providing similar
facilities along with new holiday package. Besides this, before introducing products, it is
necessary to find loopholes in it so that they can remain defect free (Thakran and Verma,
2013).
Growth opportunities: By studying the market, organisation can have various ideas to
improve upon its current strategies. The quoted business entity can also make plans to bring
improvements in its current business model and policies.

Future opportunities: The research and study done on market provides various opportunities
to make plan for present business strategies along with future ones. The aforesaid business
organisation makes such strategies to make efforts that can help in growth of business by
increasing its customer base (Beaver, 2015).
Reserach informations: The said vcompany can collect various information of market
through differebt types of methods that includes primary or secondary data collection. The
reseraches on market can be done through collecting data through primary data colection that
includes questionnaires, surveys and interview methods. Likewise, for secondary data
collection, company can go for searching desired information through online articles,
journals, previous researches etc. All these information will be helpful in accomplishing
researchs in desired manner with significant informations.
2.3 Influence of marketing on society
Thomas Cook is availing a large number of facilities to its customers in different
fields. The company has expanded its services in various areas of travelling, holiday plans
along with amenities of comfortable stays at hotels etc. The information about all these plans
and offers are communicated to the society through marketing done by company. Besides
this, the company provides facilities of booking through online medium which is available 24
hours which means that customers are relieved of the load to stand in queue for booking and
payment. The payment is also received on advance basis with the booking. The said firm also
makes sound customer relations so that company can maintain sound relations and make
more brand loyal customers to retain them for longer terms. All these facilities make
customers attracted towards the services of organisation. Moreover, the clients can be
contacted easily and their feedback can also be collected through online website of company
(Boniface, 2012). This is a useful tool for firm to make improvements in the organisations
working processes. All the services made available to customers are offered through
marketing which ultimately benefits the customers and various other stakeholders. For this, it
is necessary that company follows right ethics of markting so that consumers can get right
information. The organisation must adopt transparency in their work so that clients cannot get
confused with it. In addition, they must be encouraged for sustainable tourism through
markleting which will ultimately impact the entie society.The company develops its position
and make more efforts to give customers high quality services. The use of various modes of
marketing has made it easier for clients to use the facilities of enterprise in more comfortable
way. The customers can easily get the knowledge of various new offers and facilities that are
made to attract consumers.

TASK 3

Product: The major product in current scenario is summer holiday package to Egypt and
Morocco which is offered to customers by Thomas Cook. By this service, the organisation is
presenting intangible product of company in market. For this, the firm should focus on
product life cycle so that strategy can be made for entire life of product along with individual
plans for all stages. At introductory stage, company should make more efforts towards
marketing strategies. When company reaches to its maturity stage, the enterprise can make
changes in its pricing strategies to make customers intact with product. At the declining stage,
strategy should be made in a way that can give better outcomes.
Price: The pricing strategy is the most sensitive step for companies as a wrong step of pricing
may lead the product to vanish forever from the market. There are various pricing strategies
like skimming the cream, economic pricing etc. In context of Thomas Cook, the package of
summer holiday can be launched by applying the skimming price strategy. This strategy
focuses on fixing price of a product and service at a higher level during introductory stage.
Once the product has enough penetrated the market company can lower its prices so that
customers can also remain attached to products or services. Thus, the organisation can make
good profits at initial stages and maintain demand sin market. Apart from this, it is also
necessary to concentrate on competitor’s strategies so that necessary modifications can be
made in pricing strategies as per the situation to sustain competition.
Place: The place aspect plays an important role as it by locating the company at right place
will make the services more accessible by customers. This will be obviously beneficial for

organisations and customers as well. The services and products of mentioned firm can be
made available in various airports and information about new offer can be made available
through different online platforms. In addition, it is necessary that managers of mentioned
firm take more careful steps while planning for Egypt and Morocco as holiday destinations as
these cities are prone to terrorist activities.

People: The people aspect refers to the employees of organisation who are useful assets for
company. The development of workers is necessary with the help of their training and
development so that they can offer better services to customers by presenting themselves inn
efficient way. Thus, they can be developed to provide quality services before consumers.
Packaging: The packaging is an aspect that represents the company silently. In context of said
product, the packaging element can be in the form of brochures published by company which
highlights the features and various detailed information about the holiday package to Egypt
and Morocco.
Partnership: For launching a product at new place, it is necessary to make good contacts and
partnership with local businesses so that their help can be taken in successful establishment of
product in market. Thus, the Thomas Cook can make contact with similar industries of
mentioned countries to get positive responses from customers.

TASK 4
CONCLUSION
The report is based on marketing which is based on the travel and tourism sector. The
chosen organisation Thomas Cook which is mainly an air transport organisation is offering a
summer holiday package for Egypt and Morocco. The report has discussed various macro and
micro factors like political and technological environment which suits the business of travel
and tourism in context of said firm. Besides this, the report has articulated various
promotional tools like advertisement through print media, digital mediums etc.

REFERENCES
Books and Journals
Beaver, A., 2015. A Dictionary of Travel and Tourism Terminology. CABI.
Boniface, B., 2012. Worldwide Destinations. Routledge.
Dasgupta, D., 2011. Tourism marketing. Dorling Kindersley, New Delhi.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Gilbert, D., 2011. Government Intervention in the Marketing of Tourism Products.
International Journal of Public Sector Management. 3 (2). pp.17 – 25.
Goodall, B. and Ashworth, G. eds., 2013. Marketing in the Tourism Industry (RLE Tourism):
The Promotion of Destination Regions. Routledge.
Hays, S., Page, S.J. and Buhalis, D., 2013. Social media as a destination marketing tool: its
use by national tourism organisations. Current issues in Tourism, 16(3). pp. 211-239.
Horner, S., 2012. Business Travel and Tourism. Routledge.
Huang, Y.C. and et.al.,2013. Exploring user acceptance of 3D virtual worlds in travel and
tourism marketing. Tourism Management. 36. pp. 490-501.
Hudman, L., 2013. Geography of Travel and Tourism. Cengage Learning.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing, 30(1-2),
pp.156-160.
Jackson, L., 2016. Ameliorating the negative impacts of tourism: a Caribbean perspective.
International Journal of Contemporary Hospitality Management. 18 (7). pp.574 – 582.
Molina, A., Gomez, M. and Martín-Consuegra, D., 2010. Tourism marketing information and
destination image management. African Journal of Business Management. 4(5). p.722.
Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. CABI.
Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in
travel, tourism and hospitality. Cornell Hospitality Quarterly. 54(3). pp. 240-247.
Xiang, Z. and Pan, B., 2011. Travel queries on cities in the United States: Implications for
search engine marketing for tourist destinations. Tourism Management. 32(1). pp. 88-
97.
Online
Markgraf, B., 2017. Eight P's in Marketing Tourism. [Online]. Available through: <
http://smallbusiness.chron.com/eight-ps-marketing-tourism-42140.html>. [Accessed on
15th January 2017].