Marketing Essentials for Travel and Tourism: Analysis of TUI Group

This report provides a comprehensive overview of marketing essentials within the travel and tourism industry, focusing on the TUI Group as a case study. It begins with an introduction to the significance of marketing in organizational growth and customer satisfaction, particularly within the travel and tourism sector. The report then delves into the roles and responsibilities of the marketing function, including market analysis, planning, product development, branding, customer support, pricing, and promotion. It explores current and future trends in tourism marketing, such as the use of personalized emails, immersive videos, and digital platforms. Furthermore, the report examines the marketing function's relationship with other departments, such as finance, production, and research and development. The second part of the report focuses on marketing plans for organizational development and growth, including situational analysis using PESTLE factors, and the objective of increasing customer satisfaction and promoting eco-friendly tours. The report concludes by summarizing the key findings and emphasizing the importance of strategic marketing in the travel and tourism industry.

MARKETING ESSENTIALS
FOR TRAVEL AND
TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Roles and responsibilities of Marketing Function.......................................................................5
Roles and Responsibilities of Marketing to the wider context of organisation...........................6
PART 2............................................................................................................................................7
Marketing plans for Organisation Development and Growth.....................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing plays significant role in the growth of organisation and increase customer
satisfaction level. Travel and Tourism is one of the leading industries in the world. TUI Group
focuses on travel and tourism business. Promotion of travel and tourism can only be possible
using proper marketing team with Strategy. Marketing essentials describe various aspect travel
and Tourism. This report highlights Travel and Tourism strategy and factors that affect its
growth as well as development of business using marketing. Marketing faction has various roles
and responsibility and in the below report describe relation with the wider organisation context.
Report also explains use of marketing mix 7P’s by tour and Travel Company for increasing
growth of the organisation. Report describe marketing plan for TUI Group for investment in eco-
friendly tours (Cycle tour, walking tour, Food tour) and different external factors for an example
political, social, economic, legal factors affect in the growth of such kind of tours. It also
explains how tour and travel company use different analyse method to check the performance of
tour and travel and methods of monitoring and controlling.
PART 1
Marketing Concept and its Process
The Concept of Marketing basically deals in satisfying the needs of the customers
through various processes. The whole marketing department is divided into various departments
including sales, production etc. and it forces all these sectors to focus on satisfying the needs of
the customers thereby making a large profit. This concept needs a complete market research for
analysing the market.
Current Trends in Tourism
The trends for Tourism Marketing are as follows:
 The marketers are using recipient’s name in an e-mail which is increasing the clicks
at a higher rate.
 The immersive 360 degree videos are used more nowadays on online platforms like
Facebook, YouTube etc. which is attracting more number of consumers.
 The options for travel industry are increasing day by day.
 Creation of Travel Campaigns mostly digital.
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 Booking Method is becoming more advanced through digital platforms on mobiles.
The various current trends in tourism industry in UK are as follows:
 The value of the pound is falling down which is making the expenses less to visit UK
for tourists.
 There is a rapid increase in the break popularity of European city.
 The air routes are improved and are becoming much cheaper.
 There are number of Long Haul travellers from USA.
 The continental market of Europe is also being recovered.
 The booking process through Mobile App is increasing day by day.
Future Trends in Tourism
The various future trends for Tourism marketing are as follows:
 The marketers are expected to advertise the travel and tourism companies through all the
social networking sites like Instagram, Facebook etc. to grab the attention of maximum
number of socially active people.
 The companies will mail maximum number of customers who once experienced the
travel and also who have not even experienced once.
 The trend for AR and VR will be increasing to make the websites and online platforms
more presentable and looks real.
The future trends in Tourism industry are as follows:
 The travel for Business purpose and group travels will decrease because of this lockdown
due to Pandemic of Covid-19.
 The number of students travelling overseas for further studies will dwindle due to the
pandemic.
 Destination weddings will not be even planned because of the restriction to invite only 50
guests for the wedding.
 There will be a rapid increase in the rate of Air travels and people will favour the road
transport more resulting in less crowds on airports.
 The consumption of food and the shopping sector will suffer a lot in order to keep safety
and hygiene.
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Roles and responsibilities of Marketing Function
Marketing function plays a very important role in every type of organization whether big or
small. It is done to expose and expand its products and services in other countries and areas
(Quinn and et.al.,2016). TUI, a well-known company of tourism in UK also have various roles
and responsibilities which are carried out by marketing function and are as follows:
Gather and Analyse the Market Information
This is the most important role to be played by the Marketing Function because it is must
to know the changing needs of the customers which helps in marketing successfully. The
marketer must know the quantity and quality of the products required by the customers. It must
know the purpose of the consumers to buy a particular product or service. By accumulating this
information, the company produces, labels, packed and promotes the products accordingly.
Planning for Marketing
This is done to increase the production, promotion and sales of products and services.
Proper plans must be made to expand and expose the services of the company (Mishra and Modi,
2016). TUI being a well-known tourism group in UK also make various plans for expanding its
tourism services. For example, if it is providing its services in all the areas of UK, then it must
make suitable plans for its marketing such as online via some websites and offline on established
shops.
Designing and Development of Product/Services
It is the most important function of marketing as it is done by analysing the product and
services of the competitors. The main aim of TUI is to make itself more attractive by providing
innovative services and products which helps it to boost itself in the emerging market. The
services must be presentable in the best way to the target customers.
Packaging and Labelling
It involves the design of the packages and putting the label on the package. These are the
pillars of marketing. This not only ensures the protection and security of the product but also acts
as a tool for promotion. It contributes positively to the success of the company or the group.
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Branding
This helps in giving a unique brand name to the services and the product which increases
the loyalty of the customers which results in promotion of the product (Stewart and Gugel eds.,
2016). The company must decide whether to give a separate brand name to all the services or to
give the same names to all the products and services.
Services of Customer Support
The main aim of this role is to make the customers satisfied. For this, the company
provides various services like credit service, handling the complaints of the customers etc. These
services help in getting maximum number of customers and thereby growing the sales.
Product’s Price
Price decides the demand for the product. While deciding the prices, the company must
keep in mind various factors like the financial condition of the target customers, objective of
firm, policies of competitors etc. If the services become more expensive, it will become
unaffordable for the individuals having average salaries.
Promotion
This enables the customers to be aware about the company’s products, services, uses,
prices etc. The company can use various modes of promotion such as online and offline. The
marketer must be aware of the budget of the company while doing the promotional activities.
The promotion can be done using social networking sites and websites to attract a greater
number of customers.
Roles and Responsibilities of Marketing to the wider context of organisation
Marketing function build inter relationship between different departments. In short
marketing manager while performing his duties helps other department for achieving goals and
objective for the organisation growth of organisation (Hayhurst and Wills, 2018).
Finance department:
Finance department play significant role in making marketing by the manager in the
organisation as without finance cannot be possible to accomplish marketing goals. Marketing
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team collect all information regarding price and other information in the market related to similar
product and consult with finance team to provide sufficient amount for designing marketing plan.
Before announcing marketing budget mutual cooperation of finance and marketing department
needed in the organisation (Garrod and Fyall, 2017).
Production Department:
Marketing manager play significant role in product develop. Marketing team collect data
related to taste and trend of people and latter he share and consult with production team for
making changes in production to attract customer. Market find information using different
platform for example online content, customer demand and feedback, quality demand in market
etc and this information recorded and analysis after this process transfer to production
department for their acknowledgement.
Research and Development Department:
Research and development department creates innovation in product to attract large
number of customer. It also focus on developing quality which helps in the growth of the
organisation. Marketing team provide data relating to product demand, taste, consumer taste etc.
in organized way and hence R&D is able to make changes for marketing gain.
PART 2
Marketing plans for Organisation Development and Growth.
Objective
Objective of the marketing plans is to increase customer satisfaction level, eco friendly
tours as well as increase the growth of organisation using different suitable marketing strategy
(du Cros, 2018).
Situational Analysis of TUI Group
For better understanding and implementation there are different external as well as
internal factors that affected growth of the organisation. Using Pestle analysis TUI growth
affected, and impacted factors can be observed.
Political factors:
UK is one of the political stable country and hence political stability create advantages in
increasing employment and opportunities in different industries. Stable government support
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growth of Tourism industry like TUI companies to grow and expand in different part of the
country. After the Brexit, it is assuming that there will be increase in the number of
unemployment as well as inflation which will affect the growth of the tourism industry. Brexit
also close entries of European citizen for an example earlier Schengen visa which is free entry in
UK helps in increase the number of tourist in the country and after Brexit tourist number will be
fall below the expectations and hence decrease the revenue of TUI Group.
Economical factors:
United Kingdom is one the 5th largest economy in the world and industries like tourism
play significant in the growth of the country. In the country from last 5-year number of
unemployed decrease and hence people expenditure on tourism increase which support growth of
TUI group. Inflation rate in the Britain decreases which increase the customer demand for
travelling around the country with cheap flights and low hotels prices. Government decided to
decrease corporate taxes and hence it will become advantage for TUI group to expand its
business
Social factors:
UK consists of diverse population and people are more attracted towards travelling and
exploring new places which create another advantage for travel and tourism industry. TUI group
created large number of travel and tourism plans for different ages, group, and classes people so
that large number of customers can be created. Company also provides spiritual and yoga tours
for old generation and on the other hand number of tour and travel packages created for youth
attraction for an example cycling tours, festival tours etc.
Technological Factors:
Britain is one of the technological advance countries in the world which helps in
increasing efficient of different organisation. TUI group benefited by giving different training to
employees for increasing customer satisfaction example for an example in covid pandemic
company using different temperature testing methods as well social distancing guiding for
ensuing health facilities of customer and giving training to employee for proper checking and
safety of customer as well as employee. Technological advancement in vehicle reduce time of
customer helps in improve the growth of the organisation. However, Training and development
and technological expenditures decrease the profit of the organisation.
Environmental factors:
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UK government is focusing on sustainable environment and on the other hand customer
increases their interest in eco-friendly tour. TUI group invested in eco- friendly tour for an
example company has invested in cycle tour which has a health benefit as well as eco-friendly on
the other hand organisation walking heritage tour increase the revenue of organisation as well as
decrease transportation expenditure. Boat tour, Food walk and spiritual tour are another
profitable investment of the company which increases its revenue.
Legal Factors:
England is one of the developed and advance countries. Government has pass different
laws to support and ensure the safety of customers. UK government provides consumer court in
case any violation against privacy and safety measure of the customer on the other hand fixed
price of company for same product also helps in increasing customer satisfaction level. For
sexual abuse or any form of threat to customer in tour protected by company using its policy and
guidance and also provide help support, customer care number to customers.
4Ps of Marketing
Company development and growth depends on product, price, promotion, and the place
where is the product is supplied and organised and implementation of this plays a significant role
in success of the company (SHENGNAN and Nedelea, 2019).
Product:
TUI group focused on increasing customer satisfaction level and increase the growth as
well as sustainable development. TUI group launches different kinds of tour for diverse
population of UK for an example cycling tour, walking tour which has health benefit increase the
profit of organisation with less risk. As the health consciousness increase in customer so
company also invested in spiritual and yoga tour which attract large number of UK citizens and
providing place for such kind of tour again increase customer satisfaction level. Food tour and
night tour again increases profit of the organisation.
Price:
Company has high profit with low risk in eco friendly tour. Organisation set the
competitive price with additional benefit which increases its growth and development. It
attracted large number of customers with different prices for different and hence large number of
customers can be attracted. Company has luxury eco friendly tours which increase its profit and
revenue.
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Promotion:
Organisation use different platforms for reaching to customers. It attracted time to time
old customer by sending mail, greetings etc. and hence increase its loyalty and profitability. By
using social media marketing tools like Instagram, Facebook and YouTube etc. attracted large
number of customers as well giving better details and description using social media blogs helps
in increasing good-will for eco friendly tours. Media like newspaper, radio and magazine also
impact on the growth of the organisation.
Place:
Company selected ideal location like Scotland for its tour and travels which increases its
profit and decrease the time. Company has multiple attracting locations for yoga, spiritual,
cycling and walking tours which create its unique taste for the customer.
Budget:
TUI Group sets its budget for various kinds of tours. As the most of tour is eco friendly
and with less risk which decrease the operation and monitoring cost. One of the oldest companies
again create advantage in gaining investors as well customers. Organisation focus on different
kinds of tours for an example cycle tour, walking tour, yoga tour which has dual benefit on
environment and health hence control the budget of organisation. TUI Group invests 50lacs
pounds in eco tourism and as expand its business in all eco friendly places of UK. Company can
also tie with small entrepreneur which are already working in eco business and hence experience
decrease the risk of loss of money. There are number of small cycle renting shop in eco friendly
location and merging with company decrease financial burden on the company.
Monitoring and Controlling:
In this benchmarking is used to observe and control the process of organisation. In
benchmarking company sets its target and use adequate techniques to achieve it and evaluate it.
For an example Eco tourism company invested in cycle tour and sets target to increase the
number of customers using travel magazine. However, if the company observed that very limited
number of tourists attracted so it starts expanding in other platforms like digital marketing, news,
blogs etc (Hermans, 2018).
Performance Analysis:
Performance analysis is used to check the growth and deviation in the performance of
organisation. Technique such as KPI, 360feedback is used to observe performance analysis.
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KPI:
Key performance indicator is quantifiable metric which is used to check organisation
growth and deviation in it for an example if company wants to check customer numbers, using
KPI determines number of customer gain and lost can be checked which helps in finding
deviation point in the customer services (Hirayama and Nagasaka, 2017).
Percentage of Product Defects:
In the organisation defective product percentage show the deviation in work to calculate
it number of defective unit’s produce is divided with total number of units. For successful run of
the organisation this percentage is as low as possible (Abe and Kudo, 2016).
Customer lifetime Value:
In this company focus on long term customer relationship by providing best prices to
them
Sales by Region:
Analyzing which region is giving best sales and compare with the other which has low
sales can helps in customer engagement as well as satisfaction.
CONCLUSION
Above report describe various role and responsibility of marketing function in TUI Group
for an example promotion of tours using online platforms (Website, Facebook, YouTube, blogs
Instagram etc.) helps in increasing growth of the organization. Branding of the company is
another task, maintaining uniqueness of tours again increase customer attraction. Report also
explain roles and responsibility of marketing in wider context of TUI group for instance
marketing communication helps in checking customer satisfaction level as well as quality of the
product. In the above report company use on the other hand quality of service and product helps
in increasing growth of the organisation. Above report also describe a marketing plan for eco-
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friendly tourism which needs low budget contrary has large profit. Monitoring and controlling
using benchmarking again create additional advantage in the growth. Performance analysis
through KPI helps in checking customer satisfaction level as increase productivity, quality
efficiency deflection which helps in removing deviation in workforce as well as work culture.
TUI Group 4P’s discussion again explain companies’ achievement and strategy for eco-friendly
tourism.
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REFERENCES
Books and Journals
Abe, M. and Kudo, M., 2016, June. Analyzing business processes by automatically detecting kpi
thresholds. In 2016 IEEE International Conference on Services Computing (SCC) (pp.
187-194). IEEE.
du Cros, H., 2018. Planning and Tourism. The Encyclopedia of Archaeological Sciences, pp.1-5.
Garrod, B. and Fyall, A., 2017. Collaborative destination marketing at the local level: Benefits
bundling and the changing role of the local tourism association. Current Issues in
Tourism.20. (7). pp.668-690.
Hayhurst, R. and Wills, G., 2018. Organizational design for marketing futures. Routledge.
Hermans, E., 2018. Benchmarking in tourism research. In Handbook of Research Methods for
Tourism and Hospitality Management. Edward Elgar Publishing.
Hietaranta, S.M., 2018. Benchmarking food tourism experiences, strategies, and partnerships.
Hirayama, K. and Nagasaka, Y., 2017. An Application of the Most Effective KPI in Business
Management—Development and Application of KPI Pool. Holistic Business Process
Management: Theory and Pratice.14. p.37.
Mishra, S. and Modi, S.B., 2016. Corporate social responsibility and shareholder wealth: The
role of marketing capability. Journal of Marketing. 80(1). pp.26-46.
Quinn, L. and et.al.,2016. Troubled waters: the transformation of marketing in a digital
world. European Journal of Marketing.
SHENGNAN, Y. and Nedelea, A.M., 2019. ANALYSE LONDON TOURISM BY
MARKETING MIX ‘4PS’. Ecoforum Journal.8. (1).
Stewart, D.W. and Gugel, C.T. eds., 2016. Accountable marketing: Linking marketing actions to
financial performance. Routledge.
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