Marketing in Travel and Tourism: TUI Group Report Analysis

This report delves into the application of marketing principles within the travel and tourism sector, utilizing the TUI Group as a central case study. It begins with an introduction to marketing concepts and their relevance in the industry, followed by an examination of the marketing environment, including micro and macro factors that influence consumer behavior and demand. The report explores marketing segmentation, targeting, and positioning strategies. Strategic marketing planning and the importance of market research are then analyzed, along with the impact of marketing on society. The report further examines the product, price, and place elements of the marketing mix, alongside the significance of the service sector mix. It concludes with an assessment of the integrated nature and role of the promotional mix, including the planning and justification of a promotional campaign for a travel and tourism business.

Marketing in Travel and
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Marketing in tours and travel sectors....................................................................................4
1.2 Impact of marketing environment ........................................................................................4
1.3 Factors affecting consumer motivation and demand............................................................5
1.4 Principles of marketing segments.........................................................................................6
TASK 2............................................................................................................................................7
2.1 Importance of Strategic marketing planning ........................................................................7
2.2 Relevance of marketing research .........................................................................................8
2.3 Influence of marketing on society ........................................................................................9
TASK 3............................................................................................................................................9
3.1 Issues in the product, price and place elements of the Marketing mix.................................9
3.2 Importance of service sector mix elements.........................................................................10
3.3 Concept of the total tourism product to an individual tourism business.............................11
TASK 4 .........................................................................................................................................11
4.1 Assess the integrated nature and role of the promotional mix............................................11
4.2 Plan and justify an integrated promotional campaign for a travel and tourism business or
destination.................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The project report is all about marketing of tours and tourism industry . Under this report
we have taken one of the biggest tours and travel agency TUI Groups. It is multinational travel
company which is situated at Germany. It stand largest travel company that provides amazing
facilities to their customer (Buhalis and Foerste, 2015) . Its hotels, airlines and ship facilities are
fabulous as they delivering superior customer satisfaction . The project report consist of basic
concepts and principles of marketing that are associated with the tourism sectors. Role of
marketing in these sector and how they are valuable to the customers.
TASK 1
1.1 Marketing in tours and travel sectors
Marketing : It refer to those philosophy that company must consider that the need and
requirement of its consumer and provide valuable satisfaction by providing product and services.
Most of the sectors are adopting such kind of concepts but is more profitable and important in
the field of tours and tourism. Its consist of :
1. Product concepts : These are based on the assumption that TUI Group of company must
provide good quality of product to its customer so that customers are satisfy and happy to
use it.
2. Production Concepts : Manufactured those product which contain superior features and
does not harm the people while using it.
3. Social marketing concepts : The demands of the society has to be fulfilled by the
company though providing employment and healthcare facilities.
4. Marketing Concepts : The company may used appropriate marketing techniques or
promotion tools so that more and more customers can be beneficial from their services.
5. Selling concepts : How the company is selling its products in the market whether the
product carry any kind of offer or discount that can help to overcome to buy it for second
times (Crooks and et. al., 2011).
Changes that emphasis on travel and tourism marketing : So many people travels
every year for business or pleasures that are contributing mostly to travel and tourism industry .
The success is mainly depend on promotion and strategies made by the company and how it has
been followed.

1.2 Impact of marketing environment
Marketing Environment : It comprises of both micro and macro environment and as
well as the internal and external environment that mostly impact individual in tours and travel
sectors. It is mostly seen that without identifying the market if any decision is being adopted it
may leads to failure of company performance.
Micro environment consist of :
 Customers: For any business industry customer are more important aspect that has to be
centred around . The marketing plan should be focused to attract and retain them by
meeting their desire wants and need.
 Competitors : Under the market there are many other competitor who offers many
schemes and discount facilities to its customer to attract them, so planning has to done
according to its strength.
 Suppliers : They are those who provide raw material to the company . The behaviour of
supplier will directly impact the business performance in achieving their objectives.
 Intermediaries : These are those who can provide value to chain management in supply of
services to their customers (Evans, Stonehouse and Campbell, 2012).
Macro Environment : It contain external factors
 Demographic : It include all those factors that impact the income level,age group
and facility that are related to the customer situation.
 Society : The society has to be considers by the company that it should be
valuable and with the motive to increase the moral of the people.
 Politics : It includes all the policies that are made by regulatory bodies for the
development of tours and travel industry. The taxation system and tariffs allowed
to them has to followed accordingly.
 Culture : The marketing strategies of travel and tourism industry must be focuses
on different culture and may avail necessary offers with interesting package .
1.3 Factors affecting consumer motivation and demand
As the structure of tourism is raising the it is difficult to identify determinant of
industry .It consist of :
 Industrial Revolution
 Urbanisation

 Development of transport
 Starting a organised form of tourism industry
 Holiday provision should be made and many other facilities has to be made available by
industries to its valuable customers.
Consumer motivation can be increased by using all the factors that are necessary for
making change. Innovation in the product should done on regular basis which leads to motivate
the performance standard . The TUI Group should evaluate these factors which affects consumer
growth, satisfaction and motivation that they get from businesses process (Goeldner and Ritchie,
2012).
Some of the basic factors are :
 Market condition and money supply : The customer motivation can decrease if there is
less supply of money and recession kind of situation exist. Under this condition they are
not able to get the services .
 Services : The TUI Group offers superior service as customer care and continuous
feedback and review should be collected from the employees.
 Cultural impact : As in UK most of the customer can avail the facilities of tours and
travel in holidays and cultural events organised in other countries .
 Social : According to the family, groups,role and status we can not decide the future of
tourism industry they all have to manage properly at the same time.
1.4 Principles of marketing segments
Marketing segmentation : It is said to be the process of dividing a customer and
industry into small or sub groups based on same type of behaviour and attitude or other
characteristics. Due to different segments that are having separate target has to do better in terms
of providing good varsity of products and services.
Targeting : The next stage in segmentation is to target one of the market that are depend
upon several factors like how well the existing market is being served by others. How large is the
segment ?
Positioning : It refers as creating perception in the minds of the people about their brand
,so that they are able to buy their services at minimal cost .
Under the company TUI Group market are divided as :

 Demographic : It separates the market on the basis of age, caste ,income level and
lifestyle of customers.
 Psycho graphic : The attitude and style or personality that are carry by customers towards
the tours and tourisms industry.
 Geographic: Under this according to the market area or region we have design the
segments to the customers so that they can make use of facilities from anywhere they are
in the country.
 Behaviouristic : on the basis of attitude and behaviour of customer towards the product
and services offers to them has to be considers.
TASK 2
2.1 Importance of Strategic marketing planning
Strategic Planning : It refers to the process by which organisation wants to achieve its
destination in effective way . The try to overcome the barriers that comes in between the
destination and forward moving. It helps to identify the identity of the tours and tourism industry
with proper strategies should be made to increase the customer base in coming future (Hall,
Timothy and Duval, 2012).
Role :
 Setting organisation Direction : The industry is try to plan for future and set desire path
on which travel and tourism industry can fall.
 Understanding the organisation : The TUI Group try to develop culture for both insider
and outsider .
 Concentration of efforts.
The TUI Group has some strengths, weakness opportunists and Threats :
Strengths :
 It is a brand name with more than large market share.
 It is one of the most reliable and best industry after Thomas Cook.
 It has capture large portion of areas in the country.
Weaknesses :
 They must have to face debt obligation sometimes.
Opportunists :

 They are trying expand their operation in entire country in London as well as outside the
country.
 Online facilities are creating much more easy option to change its earlier image .
 Demand are increasing regularly.
Threats :
 Economic uncertainty with other competitors challenges.
 Try to avoid various similar schemes that are already exist in market.
2.2 Relevance of marketing research
Market information system : It is the process which is designed to support the
marketing decisions making. It includes gathering of Data , analysing and disseminating or
evaluating information about prices and other valuable information required in the marketing of
the tours and travel industries.
With the proper marketing research ,the TUI Groups is able to identify the needs and
choice of customers and make sure that how well the services can meet the customer requirement
in the current and situation. The marketing information system helps to assist and identify the
target customer. Moreover it provide useful ideas about information that resist future existence in
fulfilling the demand of customers for travelling agency.
There are certain benefits of marketing research are :
 Customer centric approach as market research : It focused on unsatisfied needs and
wants of customers residing outside the country which can help to satisfied the
requirement of the customer to enhance brand loyalty.
 Concentration or key activity: One of the important benefit is to help and support the
loopholes that are arises in the company (Huang and et. al., 2013). So that manager and
team leader should focused on improving those needs.
 Growth opportunities : The marketing research provide direction or way to the
manager. So that the productivity and profitability of the company can be increased in the
future. Manager can help to determine those areas in maximising revenue for the
company.
 Future oriented : The marketing research done while keeping the future result in minds
that a customer needs to grow demand for those services.

2.3 Influence of marketing on society
The TUI group Of industry are started to target more young bloods and youth as well as
budget traveller those are available in the society by their luring capabilities like : low cost
carriers, increase the leading areas of airline routes by their customer to rise the online
distribution of seating capacities (Moutinho, 2011). The TUI Group has started to give travelling
experiences to its customers by providing valuable and economical package.
Some of the other facilities that are given to influence the society are :
 Offering trust among and consistency and assured various experiences to their
customers.
 Build relationship between its regular customers and travel agency or good presentation
of images and services are the main reason why to go for TUI Groups.
 They are providing goods customer care facilities, fair competitive price and financial
security that every customer expect from all companies.
 They are also helping in the CSR activities that will improve possible image to the
customers.
 A direct debit card payment facilities is being provided to those who are taking budget
holidays.
 They organisation has reduce energy consumption by more them 25% in its retail and
office segments (Xiang and Gretzel, 2010).
 They raise money for the charitable trust and help the children by making offer to travel
in regional areas of the country.
 The company should highlight its CSR activities as marketing campaigns and earn
respect that target society development.
TASK 3
3.1 Issues in the product, price and place elements of the Marketing mix.
These three P's of the marketing mix are very important in context to the travel and
tourism of any country. We will be discussing all these three factors step wise step so that we
could get an idea that what are the issues related to the marketing mix. Tourism sector may be
considered as the sector through which foreign exchange can be earned in large number. TUI
carry out travel and tourism activities across all over the world and owns travel agencies, hotels,

airlines, cruise ships and retail stores (Xiang, Magnini and Fesenmaier, 2015). So for the TUI
group marketing mix is a important factors has to be considered.
Product
Products are the combination of real and unreal elements. For a tourism aspect destination can be
the product which a company or agency offers and after that its location's scenery,
accommodation and the facility as well as the entertainment at the destination all this form the
tourism product. So all this has a very crucial role in the tourism sector because if the destination
has some bad reputation like there might be a tourist spot where tourists quite often experience
robbery so this brings the negative side and affects the tourism activities of the nation(Sotiriadis
and Van Zyl, 2013).
Price
Pricing is a vast process and includes the prices of the services that are offered to a tourist like
fair of travel from bus, train and an aeroplane. Other than this price of hotels and all the things
which are included in the tourism package. So TUI group should make a note that their tourists
gets the best price and also get best facilities in exchange of money they are paying
Place
The main issue which comes in the mind of the tourist is that what are the places where they
should visit so the TUI group should make a list and give it to the clients so that they get to know
what are the places they are going to visit,is it some historical places, beaches or nature.
3.2 Importance of service sector mix elements.
Service sector mix is the extended marketing mix and comprises of other three extended
service marketing mix which include People, Process and the Physical evidence. Contribution of
the local people is the next important thing after destination because it is the citizen of that
destination which makes its image in the minds of the tourists who are visiting their. People may
include comprises of chef, service staff of the hotel which makes sure that the tourist feel
comfortable and does not face any problem (Quintal, Lee and Soutar, 2010). The local residents
of the destination has role of welcoming the guests and produce a positive image of their town.
The police cops and other government bodies need to take care that tourist are safe from any
criminal activity. Process is the way how the services are delivered to the customer or the tourist.
TUI group need to put this in mind that they should provide services in a fully hygienic
environment. If a customer is not feeling well so they should provide them medical assistance as

quick as possible. Physical evidences include providing other beneficiary services to the staying
guests. For example, a person staying at a hotel of TUI group hotel should also get other services
like good music and good lighting while he is having dinner.
3.3 Concept of the total tourism product to an individual tourism business.
Travel and tourism is a industry which comprises of different industries such as hotel,
airlines, travel agency, trekking agency and etc. Each of this provides individual product or they
combine together to provide travel experience. All this is combined to satisfy the tourist and
helps in the coordination. lets take example of a tourist business and its total products like the
accommodation business which has a great scope. Accommodation consists of the hotels, guest
room and local houses. So this can be the first product of this business after that its staff, food,
facilities are the total product of these. TUI group will totally focus on the total product of the
accommodation business so that they could set new trends in the market.
TASK 4
4.1 Assess the integrated nature and role of the promotional mix
Promotional mix refers to promote goods and products in the market by using effective
methods and strategies. In which including many methods those are help to provide all
informations regarding products and services related to the travel and tourism sector to
customers or visitors. Promotional mix through play various role to promote in the market such
as public relations, its help to build effective relationship with public in which easy to identify
public problems and issues those resolve in the effective manner. Its help to sale products and
services in the market according to customers demand and their affordability level so through the
travel and tourism company should properly analysis their demand after that provide some
special offers to them (Pan and Li, 2011). Promotional mix help in advertisement and sales
promotion in the market also help to attract high number of customer towards travel and tourism
facilities and services. In which use various method to promote products such as online
marketing, internet and direct marketing. Online marketing and internet marketing refers to the
sale services and promote by online systems because at this time all persons are connect by the
internet services and they are easy to attract towards travel and tourism services by internet
service. Direct marketing refers to the directly sale services and give proper information about

company's offers and services in which customers are easy to understand and properly get
informations relating to the company.
4.2 Plan and justify an integrated promotional campaign for a travel and tourism business or
destination
To spend their business and provide proper information to customers about Egypt and
Morocco, so there may be use various type of promotional and advertising method those help to
provide proper and actual information to customers according to their demand, promotional and
advertising methods such as offline marketing and online marketing method for promoting
offers in the market and increase awareness in the market about company's offers (Li and et.al.,
2010). TUI company through using these methods through promote new offers and packages at
online networks also offline networks. Online interworking in provide all informations and
updates regarding company and their offers to customers because at this time all persons are
using internet and they mostly afford online booking so it best method. Through the company
also use the offline marketing networks in which company can use e- brochure, sampling,
coupons, pamphlets and so more, by using these methods easy to directly provide travel and
tourism services ad facilities to customers in the market by using these methods customers are
easy understand the offers and if they having any issues so they can easy to resolve them or ask
to employees of the company. To best promotion of new offers relating to the company so by the
company made an effective official site there which provide all information so customers are
easy to use and properly understand (Jalilvand and et.al., 2012). The company also use the social
media such as Facebook, Twitter and so more these all are also promotional tools of the
company.
CONCLUSION
This is to conclude that travel and tourism is a industry where marketing has crucial role
because when a tourist destination needs to be developed the travel agencies like TUI group
carry out the campaign and convene the tourists that why they should visit that place and what
are tourist spots they can visit. They can use marketing mix and the extended service marketing
mix for this purpose.

REFERENCES
Books and Journals
Buhalis, D and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value.Journal of Destination Marketing & Management.4(3). pp.151-161.