Marketing in Travel and Tourism: TUI's Strategies and Analysis

This report provides a comprehensive analysis of TUI's marketing strategies within the travel and tourism sector. It begins by exploring core marketing concepts, including customer needs, exchange, and relationship management, as applied by TUI. The report then examines the impact of the marketing environment, both micro and macro, on TUI's operations, particularly concerning its summer 2019 holiday packages to Turkey and Spain. It further delves into factors influencing customer demand and motivation, such as socio-cultural, personal, and economic factors. The analysis extends to marketing segmentation, detailing geographic, behavioral, psychographic, and demographic segmentation strategies. The report also emphasizes the necessity of strategic planning, using SWOT analysis to evaluate TUI's strengths, weaknesses, opportunities, and threats. It discusses the importance of marketing research and information systems, assessing the influence of marketing on society. Furthermore, the report examines the marketing mix elements, including product, price, place, and promotion, and applies the concept of the total tourism product. Finally, it addresses the nature and role of the promotional mix, justifying the need for an integrated promotional campaign for travel and tourism, specifically for TUI's holiday packages.

MARKETING IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core marketing concept of Thomson. .............................................................................1
1.2 Consequences of the marketing-environment..................................................................3
1.3 Elements that are affecting customer's demands and motivation....................................4
1.4 Marketing-segmentation and its use in developing plan..................................................5
TASK 2............................................................................................................................................6
2.1 Need of strategic planning for TUI..................................................................................6
2.2 Discuss the relevance of marketing research and marketing information system to
managers in travel and tourism industry................................................................................7
2.3 Assess the influence of marketing on society...................................................................8
TASK 3............................................................................................................................................9
3.1 Different issues related to product, price, place in the marketing mix.............................9
3.2 Assess the importance of service sector mix elements in the travel and tourism industry10
3.3 Apply the concept of total tourism product to an individual tourism business or tourist
destination.............................................................................................................................11
TASK 4..........................................................................................................................................11
4.1 Nature and role of promotional mix...............................................................................11
4.2 Justification of integrated promotional campaign for travel and tourism......................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Core concepts of marketing.......................................................................................2
Illustration 2: SWOT analysis..........................................................................................................6

INTRODUCTION
In services industry, tour and travel sector has earned more development than others.
There are millions of people that are availing these services every day. In UK, it is fastest
growing sector that highly contributes to economy, employment and growth of GDP (Schroeder
and et. al., 2016). Due to hike in demands and precedence of the people. Using the marketing
methods and techniques, sector influence people to travel around the world. Marketing is key
activity this sector so that firm can deliver prime-services and better customers experience by
interacting with them in suitable manner. Using it they can create maximum consumers
satisfaction and can increase their sales and revenue. Thomson now known as TUI was found in
1923. It is is a multinational as-well-as largest leisure travel and tour industry that has its own
airlines, cruise-ships, hotels, restaurants, retails stores and travel agencies (Becker, 2016).
Around 180 destinations worldwide, 67000 employees, they own 6-European airline and 9-tour
operator in Europe.
This study is about the marketing strategics developed by TUI for year 2019 summer
holidays to Turkey and Spain. With this, scenario, in the report discussion will be about
marketing concepts, principles and its role in travel and tourism sector. Further, various tools
required for in this sector management is explained using discussion and analysis. After that
marketing-mix for TUI group is carried out where its importance and application are mentioned.
At last, promotional plan has been developed to influence people towards TUI for the summer
2019 holidays at Turkey and Spain where factors affecting demands and supply are mentioned.
TASK 1
1.1 Core marketing concept of Thomson.
For every company their core concepts must be clear, definite and relevant (Medlik,
2016). Further, they are based on various choices that are preferred by customers. Using this
knowledge company can provide the services accordingly. Core concept of marketing involves
many elements some of these are discussed below:
 Demands, needs and wants: Every person has different demands, needs and wants
which are based on their perspective. In order to remain in market, competition and for
getting success, Thomson must understand the requirements of customers and should
provide services accordingly. For this company must provide, friendly approach, safety,
security and many more things that create positive image of firm. On this basis, the cited
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firm formulate their strategies by focusing on competition level and requirements of
customers. They provide better holiday package at affordable cost at the time of
vacations and non-vacation. Further, comfortability is provided by accommodation and
travel amenities so that customer can feel safe and secure. Thus, Thomson cares about
customers by offering them attractive packages at economical to luxurious rates.
Illustration 1: Core concepts of marketing
(Sources: Jaideep, 2017)
 Exchange, transaction and transfer: These are centre points of marketing which are based
on values, communicating, delivery, exchange offer, desirable cost and competition.
Further, transaction are based on time, place and laws. Thomson provides the negotiation
rates and are committed to their decisions. For the customer they always try to fulfil their
unexpressed expectations. This shows that, they have better relationship in terms of
exchange, transaction and transfer rate of customers.
 Services and market: Company must provide the services such as provides high
satisfaction in customer physical and psychological needs (Pappas and Apostolakis,
2016). Market is place where these services can be provided. It must have high quality,
different services and affordable prices. Therefore, the company use to offer packages
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having different services which can be based on clients choice and description. Moreover,
hey have ability to influence customer so that they can willingly make purchase.
 Relationship and Network: For any firm relationship is greatly required as it provides
long-term profitability and higher customer satisfaction. Relationship and networks ties
cultural, economical, social, and technical so that there are less issues for the company.
The cited company has network over 180 counties and they have better relationship their
which provides profit to the customers and firm.
 Utility (value), Cost, and Satisfaction: It is about the capacity of product, price offered
and fulfilment of needs and demands (Fernández-Morales, Cisneros-Martínez and
McCabe, 2016). Organization must provide more values, less or affordable price into
more satisfaction areas. For the travellers, the firm provide accommodation and other
leisure services so that they can enjoy the beauty of that places. Thomson identify
customers needs so that they can develop better tour packages considering their price,
safety and enjoyment.
1.2 Consequences of the marketing-environment
Destination:
Thomson/TUI is planning to arrange summer 2019 holiday package for its customers at
two destination places, Turkey and Spain. So there is necessity to understand macro-and-micro
factors that can increase the consequence in functioning of TUI.
Micro Environment/ internal factors.
 Customers: For the organisation, it plays crucial role as without customer company
cannot fulfil their own demands. They are necessary to generate revenue and have can
have great impact on company. Customer requires best quality, ethical and fair services
with reasonable prices so that their satisfaction level can be enhanced. Therefore,
Thomson always consider these key points of customer while making holiday package.
 Suppliers and competitors: The company must focus on its competitors and their
strategies in market along with suppliers as they both are necessary to remain effective in
market (Mossaz and Coghlan, 2017). They maintain better relationship with suppliers and
provide best competition so that their services are not affected by local services
providers.
Macro Environment/ external factors.
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 Technology: Using it they can enhance their services. Getting online can support them in
many ways. The firm is having larger aircraft and ships so that more people can travel.
 Political and legal: It is based on policies, regulations and rules that are made by UK
government and EU that can impact on TUI. They should abide all the laws at the
destination country.
 Economic: Taxes, interest rates and bank values can affect the business of TUI. For
example, if there is high interest rate, then there will be fall in customer rate. Moreover,
inflation rates can also affect the company.
1.3 Elements that are affecting customer's demands and motivation
Customers always have higher demands in travel and tourism sector. However, if they are
not fulfilled it can affect their motivation level. Their behaviour, mindset decides things for
purchasing. It also help to fulfil their demands, needs and wants. Thomson uses marketing
analysis to understand the requirement of customers and prevailing trends.
Socio-cultural factor: These are the factors that influence and motivates customer to visit
Turkey and Spain. It includes society, environment, social class, sub-culture of them. Most
people like to visit the places that have higher social values, belief and customs (Baker and
Saren, 2016). These places are full of different cultures which influence people to visit their.
Moreover, Spain is among largest visiting places in Europe.
Personal factor: Through this, business, economic condition, lifestyle of customers can be
determined. Moreover, travellers have different choices regarding trips, travel and
accommodation facilities. Before making the plan these things must be considered so that they
can provide customised services to its customers. With this aspect, Thomson can influence more
customers.
Purchasing power: It is the ability of travellers to pay for the services they are going to acquire
offered by company (Tsaur and Teng, 2017). It must be reasonable to so that customer can avail
it. Considering this aspects, Thomson provides offer at different ranges and services so that
fruitful outcomes can be received. They have categories from normal to luxurious so customer
can purchase as per capacity.
Economic conditions: Purchasing power of people can be determined by economic conditions of
prevailing market. Therefore, firms make an analysis about present condition that assist them
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about forecasting the demand of new holiday package in country. For example, people of UK
spends more amount in luxury tour and travel services.
1.4 Marketing-segmentation and its use in developing plan.
For targeting customers, Thomson classify them in segments. It is systematic and more
specific method to determine the needs, demands and wants of customers. It should be done in
effective manner so large number of consumers can be attracted and assist in categorizing the
board market into small segmentation. Following market-segmentation criteria was made for
Thomson group:
 Geographic segmentation: Division is made based on geographical basis such as counties,
cities, places and region. Moreover, customers are also served on the basis of a particular
area like famous destination places. Here, the Thomson has offered similar summer
holiday package at Turkey and Spain which is primarily to UK based travellers.
 Behavioural segmentation: This segmentation strategy is based on attitude, behaviour,
knowledge, loyalty level and perceptions of customer (Hansen and Mossberg, 2017).
With the help of this, the organisations mainly concentrate on customers that are having
higher loyalty towards particular brand. Therefore, in present environment, the enterprise
can also attempt to target towards its brand loyal consumers.
 Psycho-graphic segmentation: Based on this strategy, Thomson make division based on
lifestyle, attribute, hobbies and interestingness. They shape customer's decision regarding
purchase of any service. Therefore, the firm can target customers that are fond of travel
and leisure activities. Based on this, they can offer new package of holiday trip towards
their targeted consumers.
 Demographic segmentation: Segmentation based on family, age, gender, income or size
etc. On this basis, they can offer different plans and attracting offers in which most of
things can be included for customers. For example, for younger people they can organize
package filled with adventure, parties and exploring areas. Thomson can also provide
customised services of packages and holiday trips for different age groups.
TASK 2
2.1 Need of strategic planning for TUI
To achieve company's goals, top management of companies makes strategic market
planning which is a long-term process (Cheng and et. al., 2017). For the firm they should build
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the their strategies considering marketing-tactics, their goals and customer's expectation in target
areas. Being assistant marketing manager, I suggest SWOT analysis for strategic marketing
planning for summer 2019 holiday package at Turkey and Spain which will offer high
competition and is described below:
Strength
Thomson is having strong brand image in the market. Due to their superior management
team that performs effective operations they are leading traveller agencies in the world. They
provide a variety of travel and tourism packages and other services. They have well-responsible
corporate governance that have higher marketing skills and economies of scale. Past many years
they are continuously build their strength which provided them strong financial stability, brand
value and higher market position.
Weaknesses
Thomson is highly affected due to their heavy reliance on technology. Besides this,
diversified customer's services have created confusion to the customers.
Opportunities
6
Illustration 2: SWOT analysis
(Sources: Why Use SWOT Analysis?. 2017)

Technology advancement provides opportunity to Thomson to expand its business by
online marketing into various countries. They can provide more services by getting market
specific. Investment made in destination places can help the company to reduce expanses.
Threats
Competitors of Thomson also provide similar travel packages. This provides customer
choices to chose various services available in market. Further, they are affected by the consumer
demand & capacity commitment. Failure of the plan also affects the company at greater level.
Importance of strategics marketing planning:
 Through this company can make planning and can implement appropriate strategics for
accomplishing their objectives.
 Using this staff of the organisation can know their roles and responsibilities.
 Effective planning helps to use resources in more appropriate manner.
 More focus can be provided on customer expectation and services provided to them.
2.2 Discuss the relevance of marketing research and marketing information system to managers
in travel and tourism industry
Market research
It is defined as that research which is done before introduction of any company, form or industry.
. It is done to check the market trends and the needs of the present customers and according to
their needs and wants new establishment is been done. Market research is done to see the current
market conditions and the willingness of the customers (Sheth and Sisodia, 2015). Researchers
are being appointed to do the market research. It is divided into two types.
 Primary research: It means the research which is done for the first time is known as
primary research. Earlier no research is being done on that topic.
 Secondary research: This means that the research which is done earlier and the data
which is collected from internet or any other source is known as secondary research.
These research are done so that new inventions can be done with the latest technologies and
according to new machines it is being done.
New and fresh researchers with high knowledge are being appointed to do the research work.
Benefit to managers in terms of market information
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 Understand where your target customers are: From market information we can see that
what the target group of customers are in the upcoming industry. Estimate the size of the market you can serve: The market researches should be such
that the size of the market is being seen and according to the set target a size of market is
being maintained and thus the target group is being set and the market research is being
done on that basis (Daymon and Holloway, 2010).
 Create a marketing plan to target them effectively: The marketing plan should be made
in such a way that mangers are highly attracted and as such marketing tools are also used
to increase their goals and objectives.
2.3Assess the influence of marketing on society
The authors propose a political theory perspective for examining the impact of the modern
aggregate marketing system on consumer welfare and society. Specifically, they suggest that the
benefits marketing delivers to consumers are similar to the conditions required for representative
democracy. Marketing influences the society in two ways ie internally and externally. Internal
factors which influence marketing are as follows.
The following are the factors which influences the company Consumerism: This factor plays an important role in the overall development of the
company and to influences the society at a large pace. This company mainly deals with
the travel and tourism so the policies relate to package and the cost policies should be low
as compared to different countries so that more and more customers are attracted towards
their company and the public will invest much and the company will again more profit. If
the company will make small and durable packages then the public will invest and they
will be well aware about the company's policies and as such it influences the society at a
large rate.
 Environmentalism: If the company takes certain initiatives then the normal public should
also be included in that task (Kotler, 2011). If the company wants to do some activities
related to the cleanliness of the country then public should also be participative and
follow certain steps and as such awareness among the public is being made. We should
also take certain positive steps to keep the environment clean and green. Different types
of advertisement should be made from the company to create awareness among the
public to make the city in a safer position.
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TASK 3
3.1 Different issues related to product, price, place in the marketing mix
The company mainly deals with the travel and tourism sector and the following three things i.e.
product, price and place is influenced very much in the marketing mix.
Issues related to product are as follows:
 Product features: This influences the marketing mix in the following way. If the
services are not provided by the company in a proper manner then it influences the
marketing mix. If only one price is fixed for all tour and travels then the customers are
not ready to buy that package and the growth of the business will be at a very low rate
(Boone and Kurtz, 2013). Tangibility and intangibility of the product: The tangible and intangible factor is
influenced in a way that the customers should be attracted towards them. For example if
any country is famous for its monuments and the tour package does not include the places
of monuments then the tangibility of that product is not seen and the public will not be
influenced by them.
 Pricing element. Price is the main element in the marketing mix of the product and thus
to determine the price of any product the different pricing strategies should be followed.
Pricing strategies:
 Various pricing strategies should be followed to attract more and more customers. . If the
company does not give any discount to its customers during the holiday time then the
public will not invest in the company packages and it will be a great loss to the company.
High cost If the cost of the package tour is high then the middle class customers are not ready to
invest in such tours and there will be a great loss for the company. So the pricing should
be done in such a s way that all the people can afford to but the package tours and thus
the growth of the company increases.
Place
The package should be included in such a way that the main location should be shown to
the public to increase their interest in the travelling time.
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 If the good location is being shown to the public then the people will be more attracted
towards that company (Rossi, Allenby and McCulloch, 2012). The places which the
company wants to show to the customers should be mentioned in the package list so that
the people have the knowledge of visiting that place. Thus the three elements have issues
related to the marketing mix.
3.2 Assess the importance of service sector mix elements in the travel and tourism industry
The services which are provided by the company should be such that more and more
customers are being attracted towards that company.
 If the cost of the accommodation facility is included in the price of the package then the
people may be highly attracted towards that service. If the company has good relations
with the management of the other hotels in the country then the customers are more
attracted towards that company because when the package tour is organised and the
customers are highly attracted (Kotler, 2012). If the services of the hotels will be good
then the customers are highly attracted towards that company.
 The second major element of service sector is known as interactive marketing. It means
the marketing which is interactive in nature means the online advertisement which is
made by the company is known as interactive marketing. The various advertisements
which are seen online and the feedback which is given by the public is also influenced by
the company also.
 If the public gives good comments then the company will make more and more tour
packages and thus the image of the company increases and it leads to higher growth into
the market.
 The services should be such that more and more customers are highly attracted which
leads to high growth in the market and the needs of the customers are also satisfied.
 The after sales service which is provided by the company should be good so that
customers can enquire anything after the services rendered.
3.3 Apply the concept of total tourism product to an individual tourism business or tourist
destination.
 The services which are provided by the company in the total tourism package should be
good and the cost involved in the total tourism package should be low as compared to the
normal packages.
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 The different packages are made by the company and the packages should be such that it
fulfils the need of every customers and the people should be attracted towards that
package. The services in the package includes the accommodation facility the cost of the
package, the places which the company decided to show to the people should match the
needs of the customers so that more and more people invest their money and it leads to a
high economic growth for the company and it gains profit (Lusch and Vargo, 2014).
 The package tour should be big as well as small and the cost of each package tour should
be organised according to that basis.
 The package tour which is mainly made in the time of holidays should be less costly
because the company should provide some kind of discounts to its customers and the
facilities should also be very good and up to the expectations of the customers.
Individual business does not provide services up to the needs and wants of the customers
so the customers are not attracted and are not ready to invest their money in such tourist
sector and most of the people wants to invest in total tourism sector because of its high
quality of services and the cost of that sector is also according to the level of the
customers (Straus , 2016).
 The tourism industry's main motive is to attract more and more customers which will lead
to more profit of the company and achieve success. The biggest advantage of the
Thomson Company is that the services which is provided by that company is of high
quality and the people are highly motivated by this sector and invest their money.
TASK 4
4.1 Nature and role of promotional mix
Promotional mix is a blend of different communication methods that are used by the
organization to represent its company. It is important to have effective implementation of
promotional activities as this the way through which the customers get attracted to it. Thomson
have been able to attract its customers through its innovative promotional policies. Some of the
methods used by Thomson are mentioned below:
 Offline promotion modes: It gives advertisement to the newspaper after every week
displaying attractive offers so that customers get in touch to the company. Moreover, it is
also involved in advertising Thomson in newspaper and radio as well (Cheng and et. al.,
2017).
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 Internet and online promotion: Thomson is also active in promoting the company on
social platform which helps in attracting young customers. It also opts for direct mailing
technique where it e mails sample itineraries to the potential customers to attract them.
There are certain factors that are important to be considered by the company. It is
necessary to opt for appropriate channel of communication so that potential customers can be
tapped easily. Providing adequate budget to the marketing activities help in attracting large
number of customer base. For instance, a large amount of finance is required to advertise the
company on TV and Newspaper. However, minimum amount of investment is required to
promote Thomson on digital platform. Further, another important factor to be considered is
developing a market plan that is effective enough and prove to be useful for the company. In end,
monitoring the measures of marketing taken buy the company after every specific period. It
helps in finding out the loopholes and take corrective actions as per the variance found.
4.2 Justification of integrated promotional campaign for travel and tourism
The main objective of any promotional campaign is to increase the customer base which
in turn helps in elevating the profits of the company as well. The main effect of any campaign in
judged on some important factors, which are mentioned as under:
 Method of implementation: It is important that the activity is effectively implemented
so that the main objective of the program can be fulfilled.
 Cost of the program: It is important to take for the company which are effective yet
value for money as well so that maximum number of clients can be attracted to the entity.
 Developing public relations: It helps in developing relationship with the costumer and
increases brand awarenesses of the company as well (Schroeder and et. al., 2016).
Appropriate implementation of marketing program helps in increasing the customer base.
Being in travel and tourism company, it is important to have adequate brochures so that
customers can be attracted through attractive discounts and tour packages. It helps in increasing
the profits of the company.
CONCLUSION
From the above report it can be concluded that marketing efforts made by Thomson are
very effective for its new summer 2019 holiday package at Spain and Turkey. Further, discussion
about different tools of promotion are made to maintain higher competition level in market.
Along with this, the organization has planned to develop new summer holiday package by
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identifying customer expectation and choices. Additionally, with the assistance of marketing-mix
elements, they have tried to establish the product in effective and specific manner. Micro and
macro elements are used overcome various challenges and establish the product successfully.
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