Marketing in Travel and Tourism: Thomas Cook Group Analysis

This report provides a comprehensive analysis of marketing strategies within the travel and tourism industry, using Thomas Cook as a primary case study. It explores core marketing concepts, including customer needs, product offerings, and the importance of value and customer satisfaction. The report delves into the micro and macro marketing environments impacting Thomas Cook, specifically examining suppliers, competitors, and customer behavior, alongside demographic, economic, and political forces. It assesses factors influencing consumer motivation and demand, such as cultural, social, personal, and psychological aspects. Market segmentation, including demographic and psychographic approaches, is highlighted, alongside the principles of marketing planning using the SOSTAC model. The report discusses the importance of strategic marketing planning, marketing research, and their relevance to managers within Thomas Cook. It also assesses the influence of marketing on society, examines the product, price, and place elements of the marketing mix, and emphasizes the significance of the service sector mix. Furthermore, it analyzes the nature and role of the promotional mix, concluding with key findings and recommendations for enhancing marketing effectiveness in the travel and tourism sector.

Marketing in Travel and Tourism
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
P1.1 Core concept of marketing for the travel and tourism sector .................................................4
P1.2 Impact of the marketing environment on individual travel and tourism businesses within
Thomas Cook Group .......................................................................................................................5
P1.3 Factors affecting consumer motivation and demand in the travel and tourism sector ...........6
P1.4 Principles of market segmentation and its uses in marketing planning at Thomas Cook
Group ..............................................................................................................................................7
TASK 2 ................................................................................................................................................8
P2.1- Importance of strategic marketing planning for Thomas Cook or Morocco/Egypt trip........8
P2.2- Relevance of marketing research and market information to managers in Thomas Cook.....9
P2.3 – Assess the influence of marketing on society.....................................................................10
TASK 3 ..............................................................................................................................................11
P 3.1 Issues in the product, price and place elements of the marketing mix.................................11
P 3.2 Importance of service sector mix elements to the travel sector ...........................................12
P 3.3 Total tourism product to an individual tourism business......................................................13
TASK 4...............................................................................................................................................13
P4.1 Nature and role of promotional mix .....................................................................................13
P4.2 Promotional campaign for a travel and tourism business or destination...............................14
CONCLUSION AND RECOMMENDATIONS................................................................................14
REFERENCES...................................................................................................................................16
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ILLUSTRATION INDEX
Illustration 1: Core concept of marketing for the travel and tourism sector ........................................5
Illustration 2: SOSTAC model for strategic marketing planning.........................................................9
3

INTRODUCTION
Market of travel and tourism is continuously increasing due to awareness of people towards
various destinations. Tourism industries are promoting their products and services among the people
by using various promotion techniques such as displays, advertising, print, etc (Riege and Perry,
2000). Marketers of this sector conduct interviews, surveys, etc for understanding the customer's
expectations.
In the present study, Thomas Cook which is an organization which deals intravel and
tourism industry of UK is taken into consideration. This study consists of concepts which are
related to the marketing of various travelling packages, impact of marketing environment on
Thomas Cook and its tourist destinations i.e. Morocco and Egypt (Pizam and Mansfeld, 2000).
Along with these factors, the report also includes importance of strategic marketing planning, its
influence on society and importance of service sector and promotional mix. In the end, the study is
concluded with the key findings and meaningful measures.
TASK 1
P1.1 Core concept of marketing for the travel and tourism sector
Marketing is all about to understand the needs and wants of users as well as interpret the
reasons for selection of products or services (Vargo and Lusch, 2004). In this context, core
concepts of marketing in travel and tourism industry are as follows: Customer’s wants and demands: In travel and tourism sector, demand and wants of the
customers are most important (Srivastava, 2011). The needs and wants of travelling and
tourism are for relaxation and entertainment between the people has increased. It leads to
rose and the demand of travel and tourism in community.
 Products and markets: In travel and tourism sector, products are in the form of services and
they are intangible. There are many kinds of travel organizations in UK which are offering
different holidays packages for Morocco and Egypt (Sharma, 2016). In this regards,
companies are developing the market and creating various segmentations.
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Illustration 1: Core concept of marketing for the travel and tourism sector
(Source: Kozinets, 2002)
§
 Value and customer satisfaction: Both these terms are dependent on each other. In travel
and tourism, if a traveller gets worth of his money then it will raise his satisfaction level
automatically. Exchange process: It is a base of marketing which affects travel and tourism. If exchange of
services does not take place, then it will make impact on sales and profit of these
organizations. Therefore, it is required to maintain the exchange process of services of travel
and tourism.
 Relationship: It is a part of marketing which is used to develop a long term relationship
with service users. It is created with the intention of maintaining performance and survival
in the marketplace (Kozinets, 2002).
Hence, with the help of these core marketing concepts, travel and tourism industry of UK has
been able to develop and maintain a good relationship with its customers and other business
partners.
P1.2 Impact of marketing environment on individual travel and tourism businesses within Thomas
Cook Group
Marketing environment can be divided into micro and macro types. The impact of this on
individual travel and tourism business of Thomas Cook and tourist destination at Morocco and
Egypt has been analysed as follows:
Micro environment
 Suppliers: The service providers play an essential role in success of a business and
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therefore, for a company, it is important to maintain a good relationship with vendors. The
suppliers of Thomas Cook Company are providing services of accommodation facilities,
transportation, food and beverages and many others. From the research, it has been found
that company has extended payment times for some vendors with the intention of
developing new ways of working (Lawson, 2016). Impact of the same on Thomas Cook
business is that the suppliers are delivering good services to customers for Egypt and
Morocco destinations.
 Competitors: There are various rivals of Thomas Cook who are offering homogeneous
services to target market at reasonable prices for Morocco and Egypt destinations (Jobber
and Ellis-Chadwick, 2012). Due to this, the customers are starting to switch towards other
travel and tourism agents for buying travelling packages at low prices. Customers: Demand of visitors for Morocco and Egypt destinations have been increasing
day–by-day. It has leads to affect business of Thomas Cook in positive manner. By seen rise
in demand, company has increased the supply of services for both destination places.
Macro environment
 Demographic forces: Various demographic factors such as age, income, economic status,
education level, gender etc affect the business of Thomas Cook. For example, younger age
travellers like to visit Morocco and Egypt destination. This thing has influenced the business
of company and increased the number of visitors at such kind of places (Kotler, Bowen and
Makens, 2006).
 Economic forces: Rate of inflation, wages rate, interest rate, cost and prices of local
products and services etc of Morocco and Egypt destinations has made various kinds of
impacts on Thomas Cook business (Middleton and et.al., 2009). For example, price of
accommodation facilities in Egypt is high and due to this, firm has to give large amount of
funds to hotels for their services. It has cut down profit ratio of company and reduced
revenue amount.
 Political forces: Different ruling parties, peer and pressure groups etc comes under political
forces. It has greatly affected the business of Thomas Cook (Vorhies and Morgan, 2005). For
instance, according to health and safety policies of Morocco and Egypt, government of that
place has provided security to travellers in the form of insurance.
P1.3 Factors affecting consumer motivation and demand in travel and tourism sector
There are various factors affecting consumer motivation and demand in the travel and
tourism sector which are as follows:
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 Cultural factors: Personal values, traditions, beliefs etc are major elements of cultural
factors. These are affecting consumer motivation and demand in travel and tourism sector.
For example, most of the travellers visits Morocco for worship (Moutinho, 2011) .They have
their own beliefs and motives behind travelling Egypt.
 Social factors: The impact of social factors on consumer motivation and demand in travel
and tourism sector can be understood by an example. Most of the families visit Morocco and
Egypt destinations to learn architecture and past history of that place. The motive behind
this is to make their children know about history of such locations and increase their
knowledge level.
 Personal factors: In today's world, life style of people has become more complex and busy.
Therefore, after a long time of work, they want to visit Morocco and Egypt destinations for
getting relaxation and enjoy (Doolin, Burgess and Cooper, 2002).
 Psychological factors: For learning motives, many of the travellers have the perception to
visit and understand history of those places. On the other hand, some visit to these places
with the intention of see the beauty and traditions of Morocco and Egypt.
Therefore, the above factors affecting consumer motivation and demand in travel and
tourism sector, especially Morocco and Egypt destinations.
P1.4 Principles of segmentation and its uses in marketing planning at Thomas Cook Group
Market segmentation is a strategy where a huge target market is divided into different
subsets as per needs, priorities and interests of consumers. For Thomas Cook, benefits of this
concept are taking advantages of competitiveness, increase market share, decrease customer
retention, raised profitability, more effective advertisement, and increment in sales etc (Gemma,
2014). There are four types of market segmentations: demographic, behavioural, psycho-graphic and
geographic. As per given case scenario, Thomas Cook uses two types of market segmentation:
demographic and psycho-graphic. On the other hand, marketing planning is a framework which
defines retailing efforts of a company. The purpose of this planning is to explore steps that will be
taken by a firm to achieve its goals (Bhasin, 2013). With the help of it, enterprise is able to develop a
strategy or a plan to meet the business objectives in more effective way.
Principles of segmentation play an important role in marketing planning of Thomas Cook
Group (Palmer and McCole, 2000). As per the given case study, it has clearly understood that
company wishes to create a summer 2016 holidays plan to visit Morocco and Egypt. In this context,
a proper marketing planning is required. For promotion, various kinds of methods will be used. But
before it, firm will be needed to create different market segmentations so that an effective planning
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can be developed. For example, Summer 2016 Holiday plan at Morocco and Egypt will be created
for people under the age group of 20 to 30 years. In this context, a plan will be developed by
marketing team of Thomas Cook Group (Morrison and Teixeira, 2004). The decided market
segment will help the company to formulate strategy in right manner so that it can be easy to attract
more and more customers to buy new Summer 2016 Holiday package.
TASK 2
P2.1- Importance of strategic marketing planning for Thomas Cook or Morocco/Egypt trip
In strategic marketing planning, the managerial staffs of Thomas Cook develop and
implement the strategies for accomplishing their objectives. As per the assistant marketing manager
of Thomas Cook, I suggest firm to make use of SOSTAC model for effective planning which is
explained as below: Situation: In this step, Thomas Cook needs to find out its present economic position for
deciding proper investment in its trip of Morocco and Egypt by using PESTLE and SWOT
method. Objectives: In this, Thomas Cook is intended to set its objectives such as earning profit and
maintaining good relations with the passengers for this Morocco and Egypt trip (Álvarez,
Martín and Casielles, 2007).
 Strategy: For accomplishing the above objectives, Thomas Cook has to develop appropriate
marketing strategies for influencing more and more people to buy tickets for this summer
holiday trip.
Illustration 2: SOSTAC model for strategic marketing
planning
(Source: Isard, 2015) Tactics: For developing appropriate strategies, company needs to conduct market surveys
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and other researches for understanding the expectations of customers (Tsiotsou and Ratten,
2010). Action: After proper development of strategies, firm implements them for achieving their
targets. The action includes booking of good hotels, airlines, selecting quality food, signing
agreements, etc (Chaffey, 2015).
 Control: In this step, Thomas Cook properly monitors and checks the services provided by
hotels, airlines, etc and control issues faced by the passengers.
Importance:
 It helps company to focus on important factors rather than unproductive initiatives.
 It enables Thomas Cook to design its trip carefully and properly.
 It leads to identify the future career plans of the firm (Importance of strategic marketing
planning, 2014).
Purpose:
The purpose of Thomas Cook for this marketing planning is to achieve its planned
objectives by applying proper strategies and tactics.
P2.2- Relevance of marketing research and information to managers in Thomas Cook
Marketing research is a process of collecting, examining and interpreting the information
related to the market and its trends. As assistant marketing manager of Thomas Cook, I suggest the
use of DODCAR model for appropriate research in this area and it is analysed as follows: Define research problem: In this step, Thomas Cook has to find out the issues and problems
which are occurring during the Egypt and Morocco tour (Anwar and Sohail, 2004). Set objectives: In this step, company needs to set its objectives to resolve those problems
and issues which are occurring at the time of marketing planning. Designing research plan: After setting objectives, Thomas Cook needs to design its
research plan as per the issues (Marketing research in tourism, 2016). Collection of research data: By using various techniques such as observation, feedbacks,
interviews, surveys, questionnaires, etc. firm has to collect the required information. Analysis of research data: The obtained information is being analysed by the enterprise
with the help of various marketing tools and techniques.
 Report the outcomes: In this final step, the top authority, strategic and marketing managers
are being informed about the outcomes. As per those outcomes firm needs to create
strategies for its Egypt and Morocco summer holiday tour (Vargo and Lusch, 2004).
Importance
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The importance of marketing research for Thomas Cook is explained below:
 It helps Thomas Cook in collecting information related to customer’s demands,
expectations, needs and desires (Kozinets, 2002).
 This leads to identify the popular destinations and locations among the people.
 It results in identifying the appropriate marketing strategy for Thomas Cook's summer
holiday tour plan.
 It provides information regarding the facilities and activities preferred by the passengers.
 It assist firm in selecting new trends such as cruises, Green Tourism, Wine & Food Tourism,
spa, beauty farm, camping, etc (Kotler and Armstrong, 2010).
P2.3 – Assess the influence of marketing on society
The influence of marketing on society is in both positive and negative manner. It provides
economic benefits such as higher tax revenue, creation of more jobs and many more advantages to
the society and nation as well. On the other hand, marketing results into unneeded purchase,
wastage of money and time which is not good for the consumer (Jobber and Ellis-Chadwick, 2012).
Thomas Cook is also using various marketing techniques for influencing people to purchase
tickets of Morocco and Egypt trip. It provides all information related to the tour destinations,
quality services, hotels, accommodations, etc. to the people by using websites, advertisements, etc
(Middleton, Fyall, Morgan and Ranchhod, 2009). But this type of marketing has both positive and
negative impact on the people and society which are as follows:
Positive Impacts: Improving Living Standard: Information provided by Thomas Cook regarding the tour is
encouraging people to know more about Morocco and Egypt destinations which is
somewhere improving their living standard and knowledge.
 New and Better Tourism Products: Thomas Cook is providing latest and inventive tourism
products such as spa, beauty farms, resorts, marine parks, camping, etc for attracting more
people (Moutinho, 2011). This information makes customers to buy tickets and take
advantages of all these services.
Negative Impact: Falsehood: Thomas Cook is providing extra and false information in very creative manner
for influencing people. But this misrepresentation later result to affect their mentality which
is not good for the company’s image.
 Wastage of Money: If the quality of services and tourism products are not appropriate as per
the given information, then in such condition, trip fails to satisfy the demands and needs of
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customers. It, in the end make them to think trip as wastage of money (Doolin,Burgess and
Cooper, 2002).
TASK 3
P 3.1 Issues in the product, price and place elements of the marketing mix
Marketing mix is a business tool which is used by the company for promoting its brand,
products and services in the market. It consists of four P's which are price, place, product and
promotion. Firm used to face various problems while deciding the price, products and place
elements of the marketing mix (Palmer and McCole, 2000). Issues faced by Thomas Cook while
taking decisions regarding place, price and tourism products of its summer holiday tour of Egypt
and Morocco are described below: Product: Tourism products are used to be intangible as they are only experienced by the
people so it is difficult to influence people for using these services. Thomas Cook also faces
problem in selecting and deciding the product and their services because it is important to
select such items which can satisfy the passengers. It is difficult to select one brand from the
various available varieties of tourism products (Marketing mix of tourism industry, 2016). Place: The most important thing for travel and tourism sector is to select places for tour and
trips. Thomas Cook faces problem in selecting such kind of places where passengers like to
visit and enjoy their trips. Egypt and Morocco are natural, attractive, historical, beautiful and
entertaining places where customers want to go (Morrison and Teixeira, 2004). It also face
trouble in selecting appropriate channels for providing services for Egypt and Morocco.
 Price: The price of the tour needs to be inexpensive for attracting more passengers from
diversified groups. Thomas Cook faces problem in deciding the proper price for satisfying
needs and desires of customers along with earning profit. It also needs to do effective
research for knowing the pricing strategies of its competitors and as per the results it has to
select the best one which is quiet a difficult task (Some of the major current issues
confronting tourism, 2006).
P 3.2 Importance of service sector mix elements to the travel sector
Service marketing mix is used by the industries to convey their organisational message to
the customers. The main elements are people, process and physical evidence. People plays essential
role in planning, developing and implementing marketing strategies for the Egypt and Morocco
summer holiday trip (Frew, 2000). Travel agents, guides, staff of hotels, restaurants, etc helps
company in providing quality services to the passengers. Marketers helps firm in understanding the
expectations of the customers by conducting surveys and other research. Similarly, sales staff helps
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in dealing with customers and maintaining good relations with them. Tourist guide selected by
Thomas Cook helps in making the trip entertaining and memorable for the passengers (Swarbrooke
and Horner, 2001). Effective communication and interaction with the people helps the firm in
creating good brand image and market position.
The main thing of travel and tourism sectors is to have appropriate operational process. This
operational process generally depends on the size and structure of travel and Tourism Company.
Thomas Cook provides the information related to excursion on the convenient places so that people
can get all the information about it. Along with it, firm signs the contracts and agreements, plans the
costs for tickets, uses computerised reservation system for booking tickets, etc (Mihalič, 2000).
These all things help in managing the operational process effectively and appropriately.
Physical Evidence consists of comfortable seats, designs of the hotels and resorts, natural
beauty of destinations, public utilities, rules and regulations and many more. These all tourist
attractions helps Thomas Cook in providing quality services to passengers and satisfying them
(Riege and Perry, 2000). Proper information of tourism products on the brochures helps firm in
providing all information about the trip to the passengers.
P 3.3 Total tourism product to an individual tourism business
Total tourism products are set of physical resources, activities and services that are provided
by companies to the people. Combination of all these products helps an individual in taking better
experience of his tour (Theobald, 2005). Quality of food, accommodation, infrastructure,
transportation, etc helps Thomas Cook in satisfying the needs and expectations of the customers.
Moreover, it is said to be a complete experience of an individual during his travelling and staying to
Morocco and Egypt. On the basis of quality of facilities and services, people decide that their tour
was as per their expectations or not. The quality of tourism products makes passengers to select the
same travel firm next time again or change it (Tapper and Font, 2004). The level of products is at
substantial utility, a generic, expected, enriched and potential. It is important to consider all these
level of products for providing high quality services to the people.
Latter help individuals in enjoying their trip and making it memorable. Quality of tourism
products also depends upon the creativeness and innovativeness of the staff members who are
selecting them (Pizam and Mansfeld, 2000). Total tourism products include destinations, its
attractiveness, conditions to stay on location, etc. It is series of places or locations which travellers
are going to visit in their tour to Egypt and Morocco. The price of these total tourism products and
services need to be affordable according to the passengers so that they can enjoy their trip to the
fullest (Álvarez, Martín and Casielles, 2007). Items provided by Thomas Cook are required to be
eco-friendly as now-a-days people are more conscious about their health and surroundings. By
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following sustainability, Travel Company can satisfy the passengers more than their expectations
which results to increase in its market position and reputation.
TASK 4
P4.1 Nature and role of promotional mix
Promotional mix includes 4 P's of marketing mix. The given case study has related to
launching of Summer 2016 holidays promotional campaign at Morocco and Egypt by Thomas Cook
(Frew, 2000). In this context, the role and nature of promotional mix for this campaigning are as
follows:
 Personal selling: In this, the company use face to face promotion tool to sell its products to
customers. The aim behind this method is to encourage consumer to buy the services at least
for one time (Swarbrooke and Horner, 2001). With the help of personal selling method,
Thomas Cook can appoint some employees for promoting new Summer 2016 holidays
campaign where staff members will meet to the travellers and influenced them.
 Advertising: It is a method of communication which is used to sell or promote a specific
good or service. The following tool will help Thomas Cook to promote its new Summer
2016 holidays campaign in its target market. For advertisement, company can use digital as
well as traditional methods (Mihalič, 2000). Creative advertising on Morocco and Egypt will
include information about new Summer 2016 holiday and services delivered by Thomas
Cook to customers.
 Direct marketing: It is another kind of advertisement where a company can directly
communicate with consumers with the help of online web portals, emails, text massage,
phone calls etc. In the context of Thomas Cook, organization can either use sending mails or
message to its target customers or inform them about new Summer 2016 holiday
campaigning.
P4.2 Promotional campaign for travel and tourism business or destination
Promotional campaigning of Thomas Cook for Morocco and Egypt destinations are as
follows:
 Personal selling: Thomas Cook will prepare a marketing team of expert employees. These
team members will meet with the existing customers of company and informed them about
new Summer 2016 Holiday package (Theobald, 2005). It will help in influencing customers
to at least buy a new Morocco and Egypt holiday package.
 Advertising: Thomas Cook will use traditional and digital methods for advertisement. For
example, company will create a page on social media and give ads in newspapers. These are
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two ways by which customers are mostly connecting (Tapper and Font, 2004). At the time of
advertisement, needed information will be provided to them about new Summer 2016
Holiday package.
 Direct marketing: In this context, Thomas Cook will collect contact numbers, email ids and
residential address of existing customers. After this, the promotional message and emails
will be created for sending it to service users which contain all information about new
Summer 2016 Holiday package.
CONCLUSION AND RECOMMENDATIONS
It is concluded from this study that effective marketing plays an important role for travel and
tourism industry in promoting their trips and tours for influencing people. Thomas Cook is doing
marketing of its Summer holiday trip at Egypt and Morocco. While making marketing plan, it takes
all the factors of marketing and service mix into consideration. Promotion campaign of the tour is
also attracting people to join it for taking all the advantages of quality services and products. It
needs to keep the environment clean and safe at the time of marketing. It needs to provide real and
true information about the trip for influencing people.
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