Marketing Essentials for Travel and Tourism: TUI Company Report

This report provides a comprehensive analysis of marketing essentials within the travel and tourism industry, focusing on the TUI company. It explores the roles and responsibilities of the marketing function, highlighting strategic planning, competitive strategies, and market research. The report examines the interrelationships between the marketing department and other functional units, emphasizing the importance of coordination and integration for achieving organizational objectives. Furthermore, it delves into TUI's marketing mix, analyzing the 7Ps (Product, Price, Place, Promotion, People, Process, and Physical Evidence) and comparing it to other organizations. The report concludes with the development of an effective marketing plan designed to enhance profitability and future growth prospects for TUI. The analysis covers the importance of digital platforms and market segmentation in the current industry scenario.

MARKETING ESSENTIALS
FOR TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO-1.................................................................................................................................................1
P-1: Roles and responsibilities of marketing function within TUI company..............................1
P-2: Interrelationships between marketing and other functional units in the wider
organizational context..................................................................................................................3
P-3: Marketing mix of TUI for the achievement of organizational objectives as compared to
other organizations.......................................................................................................................4
P-4: Marketing Plan.....................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is essential factor in the travel and tourism industry it helps in attracting the
potential customers from the rivals. The marketing can be preferably undertaken by using the
online channels websites, e-mails, social media applications etc. Thompson Travel Group is a
famous company of the travel and tourism industry which was founded in 1965 and is
headquartered in Luton, UK. It offers attractive deals of the holiday packages with affordable
flights, cruises, hotels at the most exclusive locations. It's major focus is upon the leisure and
luxury services and has segmented the market accordingly. The project shall be highlighting the
roles and responsibilities that are performed by the marketing function in a tourism industry. It
shall determine the marketing mix of an organization which shall be applied in the formulation
of the marketing plan in order to achieve the organizational objectives of the business. Lastly it
shall be involving the formation of an effective and efficient marketing plan which can be
adopted by the company to generate profitability and future growth prospects for the company.
MAIN BODY
LO-1
P-1: Roles and responsibilities of marketing function within TUI company
The marketing function is an essential part of travel and tourism industry wherein they try
to capture the target market by developing the innovative marketing strategies. Marketing plays
crucial role in developing the competitive advantage in the market among the rivalry firms. The
main benefit that it poses to the tourism company is the fulfilment of the organizational
objectives timely and efficiently.
Some major roles and responsibilities that are performed by the marketing manager of the
TUI company are:-
 Strategic marketing planning is the most prominent function of marketing which helps in
identifying the internal and external environment that TUI is exposed, which are either
generating opportunities or threats for the company (Mishra and Modi, 2016). It also
analyses the strengths of the company upon which it can capitalize and the weaknesses
which are to be removed so that operational efficiency can be governed.
 A strategic evaluation can also be used to identify the requirements of the company to
positively build the brand image. It has to fulfil the corporate social responsibility,
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consumer welfare, maintaining safety and security measures etc. Apart from these the
various industry specific laws are to be fulfilled in order unnecessary government
interference.
 The marketing strategy to derive competitive edge like cost leadership, differentiation
and focus. Among the different strategies available, TUI believes in the differentiation
strategy. It differentiates its products from that of the competitors so that the potential
travellers can be attracted. It also uses the customer centric approach where the main
focus stays on the customer and their associated level of satisfaction (Sanclemente-
Téllez, 2017). For this they ensure after sales services and grievances to be redressed.
 The marketing function in the company helps it to plan growth strategies like expansions,
diversifications, installing new technology, modernizations etc. This is done by TUI by
considering the current status in the market of the product line and also by analysing the
stages of the product life cycle. Mergers, acquisitions, collaborative partnerships are also
evaluated if are profitable for the operations and shall provide the benefit of synergy.
 Ascertainment of the various online and offline sources that are used by the company to
generate awareness regarding their brand in the consumer groups. Nowadays, the digital
platform are used by the company to promote its products and services like social media
applications, customized websites of the company, e-mails and online ads etc.
 The research and development of the various new techniques also forms part of the
marketing function in travel and tourism industry. TUI does market research to a great
extent which helps them develop the idea of profitable routes, exclusive locations for
vacation purposes, newer technology that can be used to minimize the cost of the
company (Moorman and Day, 2016).
 The future forecasting and budgeting requirements are also an important function of the
marketing department. Arrangement of resources according to the future demands of TUI
is essential to reduce the wastage of resources. It helps in optimal utilization of the scarce
resources that are available.
 It also is responsible for deciding the channels of distribution that should be adopted by
the company. TUI generally prefers wider distribution system which means that it takes
the benefit of cost by having variety of options available.
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 Market segmentation is carried out by the marketing agents of the diverse market and its
customers (Eteokleous, Leonidou and Katsikeas, 2016). Based on this segmentation the
deals are offered which could satisfy the needs and wants of the consumers. Specific
features are offered to specific groups at specific prices, so that the target group of
customers can be attracted towards the products of TUI.
P-2: Interrelationships between marketing and other functional units in the wider organizational
context
The marketing department and other departments of a company are interrelated and
interdependent on each other. The performance of the marketing function of TUI is based on the
other organizational functions as if the operational efficiency is there in a company then only
benefit of aggressive marketing can be taken (Wang and Kim, 2017). In order to strategically
plan and implement a marketing plan, the department requires contribution from finance, human
resource, production and sales department of TUI.
It can be assessed that in the travel and tourism industry all the functions in an
organization have to perform in integrated and coordinated manner. This shall help the company
achieve the organizational objectives and develop potential growth prospects for the company.
There are various ways in which we can evaluate the interdependence of these functional areas
of TUI:-
 The strategic planning that is undertaken by the marketing officials of TUI has to be sent
to the management of the company for prior approval. The feasibility criteria is checked
and then only is accepted for implementation by the higher levels of the company.
 After the approval a forecasted budget is to be prepared which shall be discussed with the
finance department of TUI (Hill, 2017). As per the availability of resources they shall
amend the budget and accordingly provide the marketing team with the financial
resources.
 The market research of TUI helps it know the requirements of the customers and what
improvements are to be made in the existing travel products. This differentiation strategy
has to be coordinated with the production department and have to be communicated
effective about the changes in the services that are required.
 The discounts, offers, freebies that are used to market the brand effectively has to be
integrated with the operation and the sales department of TUI. It has to be ensured from
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the production department that economies of scale is attained and whether the cost per
unit is decreased (Takata, 2016). Then only the benefit could be extended to the
customers. Also, the sales department needs to know what additional services are to be
offered to which group of travellers.
 Since the marketing department shall be managing the optimized website of TUI, they are
required to communicate the feedback, response, opinion that is provided by the
customers or the latest trend that is going on. On the basis of this information the
managers and leaders of the organization shall develop strategies for the future operations
of the business.
 In order to positively position the brand in the minds of people, it has to coordinate and
integrate their activities with all other departments and their human resources. It has to
ensured that basic duties are fulfilled like the corporate social responsibility, governance,
ethical standards, compliance of laws, quality standards etc. This shall make the
customers satisfied and also avoid unnecessary government intervention (McDonald and
Wilson, 2016).
 The marketing team shall study the internal and external environment of TUI and identify
the potential strengths, weaknesses, opportunities and threats are posed to the company. It
has to efficiently communicate these to the rest of the departments so that accordingly
benefit could be assumed and the losses can be prevented.
 Any strategies that are formulated by the marketing manager must be in accordance with
the availability of the physical resources, level of technology, expertise in the human
resources, level of competition, potential risk taking capacity and objectives of the
company.
P-3: Marketing mix of TUI for the achievement of organizational objectives as compared to
other organizations
The marketing mix consists of the seven elements in the form of 7P's which are used to
design the broader strategy to market the products and services that are offered by the TUI
group. Based on this strategy the company shall be able to achieve the organizational objectives.
The marketing mix of TUI is designed in the following manner:- Product- One of the most significant elements of the marketing mix of TUI Group is the
distinct and differentiated product of the company (Saidani and Sudiarditha, 2019). It
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maintains a broad and diversified portfolio of products as per the market segmentation of
the various potential customer groups to satisfy the needs. The quality management is the
essential strategy of the company that ensures providing value for the money paid by the
customers. The travel deals are offered separately for the adults, kids, young couples
based on their needs and desires. The product portfolio of the company is based on
leisure and luxury for its travellers. Price- The TUI group is associated with the hybrid pricing strategy wherein
differentiated pricing policy is used for the different customer range. The premium
pricing is done to the highly luxurious services which fulfils the expectations, quality
concerns, branding requirements of the customer. Apart from that the company also fixes
the prices of the products psychologically such that it appears less than expected. The
prices of the products and services helps the customers derive value for the amount that is
paid. Place- The TUI travel group has prime focus on the distribution network that the
company has established and its accessibility to the potential buyers. The strategy is to
cover wider area so that the brand stays accessible to all its customers (Ravangard,
Khodadad and Bastani, 2020). TUI has established its various licensed stores and stores
in the supermarkets and hypermarkets. Apart from that it has its presence over the digital
marketing channels from where its customers can book online for its products and
services and then make the digital payment. Promotion- The promotional tactics and strategies are used by the TUI team shall be
beneficial in order to generate brand awareness and establish reputation in the market.
Nowadays mainly the company is using the digital platforms to create brand image of the
company. The majorly used tools are the social media applications, optimized corporate
website of the company and ads on the internet. This helps in generating traffic on the
website of the company and thereby increases the scope of target market of the
customers. People- TUI considers its people resource as the major contributor to the building of the
customer relationship. They conduct effective talent management activities to make them
satisfied and generate profitability for the company (Loo and Leung, 2018). The policies
are designed to train, motivate and develop the overall personality of the individuals.
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 Process- TUI follows a standardized and systematic approach which gives a consistent
growth and experience to the company. The satisfaction level of the customer also faces
an upward graph and resists to get deteriorated.
 Physical evidence- The company has also sought to develop an attractive and innovative
work culture which retains the employees with the company (Marketing Mix of TUI,
2021). Apart from that the website of the company and the packaging are also attractive
of the to gain competitive advantage.
Distinct characteristics TUI travel company Thomas Cook plc.
Product Diversified product portfolio
based on the market
segmentation.
It is majorly for the leisure and
luxury travellers.
Product consists of holiday
packages including travel,
food, hotel, insurance and hire
car.
It is for leisure travellers,
corporate business houses,
foreign exchange of currency
and credit cards (Pistol and
Bucea-Manea, 2017).
Price It uses the premium pricing to
maintain the luxury and
quality of services offered.
Psychological pricing is also
used for impacting the buying
behaviour of the customers.
Market penetration is the target
so the prices are kept at
reasonable range which can be
affordable.
Some exclusive luxury trips
have half-way premium
pricing.
Place Vast distribution network in
the form of licensed stores,
supermarkets and presence on
the digital platforms.
The company has both online
and the physical stores for
providing easy access to its
customers.
P-4: Marketing Plan
Overview
The company is offering a new holiday package which is to explore the historical
destinations in India. The prices shall be affordable using the market penetration strategy. The
target market is the old age people of UK. The package shall include travel, food, hotel and
insurance of the customers.
Vision
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The vision of TUI is to make people travel the world, explore the diversity of culture,
tradition, discover new horizons, experience the foreign lifestyles. All this broadens the thinking
ability of the people, builds knowledge and generates positive energy. The main motto is to bring
a smile on the face of the travellers with the company.
Mission
The mission of TUI group is to create the moments and experiences of the people that are
unforgettable and shall be cherished by them forever (Vision & Values, 2021). The quality is the
essence of its products such that it provides value to the customers for the money they have paid.
Objectives
The major objectives of the company are:-
 To build customer satisfaction by giving them value for their money.
 To increase the sales of the company by 10% in the next quarter. To generate competitive advantage in the industry.
PESTLE
Political
 Political instability in a particular
country generates risk and negativity
among the tourists, which shall
decrease the number of travellers
(Hollensen, 2019).
 Tax policies impact the business of
travel and tourism industry.
 Terrorists attack lead to severe drop
down of the guests and visitors to a
particular place.
Economical
 The tourism industry is highly affected
by the personal disposable income of
the potential customers of the
company.
 The propensity to consume decreases
in depression, currency fluctuation,
high fuel prices etc.
Social
 With the change in the lifestyle of
people the demand is increasing related
to newer experiences.
 Diverse location with diversified
cultures is leading to clash.
Technological
 With the advancement of technology
the customers are at ease of comparing
the products of the various companies
and choose the best possible deal.
 The online accessibility and digital
payments have contributed in the last
moment booking system.
Legal
 Significant laws are mentioned like
safety and security laws, licence laws,
health laws and ownership laws are to
complied with and if not done so then
Environmental
 Environmental protection and
sustainable development practices are
carried out by the company.
 Corporate social responsibility is to be
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heavy penalty is imposed. fulfilled.
 Climatic change also affects the
performance of the business.
SWOT analysis
Strengths
 Fully integrated business model which
helps in the coordination of all the
functions towards the achievement of
organizational objective (Perreault,
2018).
 Wide distribution network
Weaknesses
 Spread of the coronavirus pandemic
 Lack of transparency in the system
 Seasonality of travellers
Opportunities
 Collaborative partnerships providing
the benefit of synergy
 Niche market segments
Threats
 Higher leverage ratio
 Geographical uncertainties
 Down-turn in the economy
STP Segmentation: The market segmentation includes the ageing population of UK who are
the heritage travellers. The target market includes the international travellers who are
interested to explore the historical destinations in India having diversified cultures and
traditions. It market is segmented on the basis of income class, the particular product
shall be for the middle income group of people (STP Process – Tourism Marketing,
2021). Targeting: The specific market shall be targeted which fall in the age group above 60
years, who needs to enjoy the remaining moments of their life to the fullest (De
Pelsmacker, Van Tilburg and Holthof, 2018). The prices shall be affordable to attract
customers who can't afford expensive foreign trips but are keen to know the past theories
and concepts. Positioning: The positioning of the travel package in the minds of people shall be done
by the choice of attractive and exclusive travel destinations. The visit shall provide a
complete experience of the culture and its belief.
Marketing mix
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 Product- The product is a holiday package for leisure of the aged people to the historical
regions of India. It includes different modes of travelling, multi-cuisine meals, insurance
etc. Price- The deal is priced lower as to derive benefit from the market penetration strategy.
It's target market is established in the middle income group of customers who are fond of
heritage travelling. Place- The distribution channel should be wide so that dominance of the company in the
supplier quality and price can be maintained (Dimitrescu and etal., 2018). The bookings
shall be available at both online and offline stores because some elderly people might not
be tech-savvy or friendly and might need one-to-one contact with the seller to clarify with
all the doubts. Promotion- The promotion shall be done by the optimized website, social media
applications, internet ads, publications in the newspapers etc. People- The human resource shall be satisfied by the employee engagement practices and
training of the individuals in the newly built technology. Process- Standardized system of booking and payment shall be maintained for all classes
travelling in the aircraft. Physical evidence- It shall be created by attractive photos and ads of the historical
destinations involved in the tour.
Budget
Particulars Figures (in £)
Social media marketing 150£
Newspapers 50£
Optimization of company website 120£
Journals and articles 35£
Online ads publishing 50£
Monitoring and evaluation
The monitoring control activities of the newly undertaken project shall be done on the basis of a
set benchmark. This shall facilitate comparison of the actual activity with the established
standards. The deviations that are occurred shall be timely and efficiently improved by the
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company. This will help in achieving the target goals and maximize the profitability of the
company.
CONCLUSION
It can be summarized from the project that marketing is an important function of
management and has several roles and responsibilities to play in an organization that helps in the
achievement of objectives. It has shown that all the departments in an organization are
interrelated and their activities are integrated to generate results for the company. The elements
of the marketing mix can be grouped together to form the broad objectives which are to be
accomplished by the personnel. The marketing plan is formulated before the execution of a new
idea which helps in proper execution and achievement of the simultaneous results.
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REFERENCES
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Online
Marketing Mix of TUI. 2021. [Online]. Available through: <https://www.case48.com/term-
paper/Tui-Marketing-Mix-14020>
STP Process – Tourism Marketing. 2021. [Online]. Available through:
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<https://www.managementpedia.com/threads/stp-process-%E2%80%93-tourism-
marketing.137433/>
Vision & Values. 2021. [Online]. Available through: <https://www.tuigroup.com/en-en/about-
us/about-tui-group/vision-values>
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