Marketing in Travel and Tourism: Thomas Cook Case Study Report

This report provides a comprehensive analysis of marketing strategies within the travel and tourism industry, using Thomas Cook as a case study. It begins by outlining the core concepts of marketing, including customer needs assessment, value-driven products, customer relationship management, and customer satisfaction. The report then examines the impact of the marketing environment, both macro and micro, on travel and tourism businesses, considering political, economic, social, and technological factors, as well as competitor and supplier influences. It delves into factors influencing consumer motivation and demand, such as destination characteristics, transport facilities, support services, and value for money. The report further explores market segmentation principles, including demographic, geographic, and behavioral segmentation. It emphasizes the importance of strategic marketing planning, market research, and information for managers, and discusses the influence of marketing on society. The report also addresses issues related to the marketing mix (product, price, place, and promotion), including the importance of service sector mix elements and the concept of the total tourism product. Finally, it examines the role of the promotional mix and the development of an integrated promotional campaign, providing a well-rounded view of marketing practices in the travel and tourism industry.

Marketing in Travel and Tourism

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Core Concepts of Marketing............................................................................................1
1.2 Impact of Marketing Environment on Travel and Tourism Businesses..........................2
1.3 Factors Influencing Consumer Motivation and Demand.................................................3
1.4 Principles of Market Segmentation..................................................................................3
TASK 2......................................................................................................................................4
2.1 Importance of strategic marketing planning for a selected travel and tourism business. 4
2.2 Relevance of marketing research and information to managers......................................5
2.3 Influence of marketing on society....................................................................................5
TASK 3......................................................................................................................................6
3.1 Issues in the product, price and place elements of the marketing mix.............................6
3.2 Importance of service sector mix elements to the travel and tourism sector...................6
3.3 Concept of total tourism product......................................................................................7
TASK 4......................................................................................................................................8
4.1 Role of Promotional Mix.................................................................................................8
4.2 Integrated Promotional Campaign...................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Marketing assist the organisation in boosting the awareness of organisation in the
market. Through this, target customers gets attracted which eventually helps in boosting the
sale. Same is the context of marketing within travel and tourism sector which aids in
assessing the needs of customers in better manner. Present report is prepared with reference
to Thomas Cook who is creating a summer holidays to Egypt and Morocco. Discussion is
done on core concepts of marketing, role of marketing as a management tool, significance of
marketing mix and promotional mix.
TASK 1
1.1 Core Concepts of Marketing
Marketing is a key aspect of any business that aids in boosting the awareness of the
company within target customer. It aids in attracting more of people towards the company
and also assist in meeting with the needs of customers. Within the context of travel and
tourism sector, following are the core concepts of marketing:
 Assessing needs of Customer: Thomas Cook need to identify the actual needs of
customers so that package can be offered accordingly. Through this process, business
can develop the product which directly satisfy the requirement of customers. To gain
information regarding needs of travellers, measures like survey, feedback and
interactive marketing can be taken into account (Collison and Spears, 2010).
 Valued Products: Another crucial concepts of marketing for Thomas Cook is to
develop products which offer value. Customer always look for value for money
product and same need to be considered to cater the attention of varied customers. For
this, diversified products and variety of options can be included in holiday package.
 Customer Relationship: It is yet another crucial aspects of marketing for Thomas
Cook. Cited company need to develop relations with customers in order to get repeat
purchase. For this, the company can offer lucrative scheme to its regular customer
along with variety of flexibility in packages (Kotler, Bowen and Makens, 2006). This
way, Thomas Cook can able to enhance its sales volume.
 Satisfying Customers: Needs of customers should be satisfied so that attention from
them can be received again and again. Cited organisation must focus on offering
packages that includes high amount of flexibility. Also, sound customer service leads
to satisfying the needs of customers in effectual manner.
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1.2 Impact of Marketing Environment on Travel and Tourism Businesses
Business of every sector is influenced by marketing environment and so is travel and
tourism sector. Basically, macro and micro environmental factor affects the operation of
Thomas Cook and destination like Egypt and Morocco.
Macro Environment
 Political: Government of mentioned destination has undertaken steps with reference
to liberalising the policy of VISA in order to increase tourism. Also, regulatory bodies
made laws with regards to consumer protection, health and safety of travellers,
medical emergency and other related aspect (Ashworth and Larkham, 2013). All these
must be followed by Thomas Cook in order to gain support from government.
 Economic: Change in exchange rate and fluctuations in foreign exchange affects the
profitability of the company. Also, demand and supply of tourism in Egypt and
Morocco is highly affected by recession and market conditions.
 Social: With the rise in time, customer are more demanding leisure and recreational
tourism activity which declines the demand of Egypt and Morocco (Middleton and et.
al., 2009).
 Technology: From rise in technology, business in tourism sector gain high amount of
support. Through this, customer interaction and selling of packages becomes in real
time that aids in making smooth business transaction. Thomas Cook is able to sell its
products directly through its website which aids in boosting the sale of company.
Micro Environment
 Competitors: There is a fierce competition in tourism sector that affects the operations
of Thomas Cook. Companies like Thompson, Cox and Kings and other related are
also offering lucrative package to Egypt and Morocco which affecting the business of
Thomas Cook.
 Customers: Currently, there is high bargaining power of buyer due to variety of
options. Hence, Thomas Cook need to develop packages with best price and facilities.
 Suppliers: Cited organisation focuses on offering all set of products under one roof.
For this, it has made business relationship with wide number of suppliers of different
nature (Evans, Stonehouse and Campbell, 2012). Through this, it is able to offer best
deal on the packages of Egypt and Morocco with respect to hotels, flights, taxi,
foreign exchange and insurance.
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1.3 Factors Influencing Consumer Motivation and Demand
Within the context of travel and tourism, there are varied significant factors that
influencing motivation and demand of tourism package. These factors have been enumerated
below:
 Nature of Destination: This has been found that Morocco and Egypt are famous for
its cultural and heritage tourism. It possess variety of antique monuments and
civilisation that certainly caters the attention of wide range of travellers. Hence, it is
most suitable place for people who like to explore cultural places (Timothy, 2011).
However, the demand of this destination can be declined if customers are more
inclined towards adventurous or urban tourism.
 Transport Facility: Travellers even look for transport facility while deciding upon
destination. It is evident that Egypt and Morocco possess significant transport facility
of air and rail that offers great comfort to tourist. Convenience in transport is one of
the key factors that influences the decision of customers largely.
 Support Service: In addition to transport, tourist look for wide range of support
service in order to make their trip more interesting. This support service includes
shopping malls, theme park, food, sound accommodation, recreational activity and
other related (Law, Leung and Wong, 2004). Cited destination possess wide range of
support service that aids in attracting more of travellers towards it.
 Value for Money: Wide range of customers looks for value for money even in
tourism context as well. Thomas Cook offers wide range of facilities in tour package
which certainly aids in meeting with the needs of customers. The company offers
options in hotel, flights, recreational activities, foreign exchange, insurance and other
related.
1.4 Principles of Market Segmentation
The company cannot focus on all of the market due to resource constraint and
therefore it need to divide whole market into small sections, known as market segment, which
aids in meeting with needs of specific customers. In this context, there are following set of
segmentation that can be considered by Thomas Cook:
 Demographic: It includes factors like age, gender, income class, occupation or any
other related basis. From this, market can be divided into specific group from which
Thomas Cook can able to focus on few segments. For instance, it is focusing on
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middle and upper class customers in terms of income group to gain high attention
from it (Ashworth and Larkham, 2013).
 Geographic: Through this, cited organisation in able to divide market in terms of
continent and country. Based on it, tailored products are developed by the company
by considering the buyer behaviour and requirement of one particular country
(Vargas-Hernández, 2012). This aids in implementing the policy of adaptation instead
of standardisation which helps in boosting the sale.
 Behavioural: In this, company is able to segment the market on the basis of interest
and belief of customers. From this, it offers packages in terms of honeymoon, family,
recreational and related. This set of segment support Thomas Cook in reaching to
need of customers in appropriate manner.
Hence, segmentation supports Thomas Cook in developing appropriate packages that directly
meets with the requirement. Through this, customer satisfaction is attained that helps in
gaining repeat purchase from it.
TASK 2
2.1 Importance of strategic marketing planning for a selected travel and tourism business
In relation to the summer 2018 holidays to Morocco and Egypt Thomas Cook need to plan
appropriate strategic marketing. By setting proper marketing policies and strategies they are
able to enhance their reach up to the customers and maintain their brand image in this
competitive business environment (Willis, 2011). Total marketing planning is being
processed by following several stages as follows: Market analysis: Knowing current market trends with changing needs and demands
of customers helps Thomas Cook in providing quality services to their consumers.
With the help of proper analysis of market they are able to know the customer
preferences and try to provide them similar kind of services (Hall and et.al. 2012).
The overall analysis also includes analyzing human resource as well as various laws
and government legislation's need to be followed by company for Morocco and
Egypt.
 Internal analysis: It is also important for Thomas Cook for carry out SWOT analysis
to review their current situation. It helps them in analyzing their strength, weaknesses,
threats and possible opportunities while planning summer 2018 holidays to Morocco
and Egypt.
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 Strategic formulation: Marketing planning plays a most important role in any travel
and tourism business. It helps in enhancing customer reach as well as their sales. All
their strategies are developed by the top management team of company. Once they
have gone through the overall market analysis as well as internal analysis
management of Thomas cook plan out to incorporate ANSOFF's matrix (Cook and
Marqua, 2014). It is the best suitable technique they can use for their strategy
formulation and identify market penetration, market development, product
development and diversification. It is the most effective way to attract more number
of people towards their tour plan of summer holiday 2018.
2.2 Relevance of marketing research and information to managers
In order to compete within this competitive business environment firms need to go
through the proper market research. It supports their top management team to take best
decisions and establish their prominent position in the market. There are numerous benefits of
marketing research and information to managers such as:
They can easily analyze current market trends and desires of customers and it helps
them in plan out their tour package accordingly (Moutinho, 2011). They can make several
variations in their overall summer holiday package of Morocco and Egypt through proper
execution of all the operations in several departments. Moreover, they needs to use planned
approach where they should gather various resources by appropriate market research
regarding living and tourism in Morocco and Egypt. A proper resource allocation can be
done with the help of appropriate marketing planning and it provides proper execution of
strategies and policies. In addition to this, it is also necessary for them to keep upgraded with
time. In this case, they need to build better relations with customers by incorporating latest
technologies in their business operations. Through this, they can bring out best and
innovative changes in their business.
Further, it can be determined that Thomas Cook can easily plan out their strategies
with the help of setting proper contingency plan and it reduces their risk of failure (Choi and
Sirakaya, 2006). With the help of all the above mentioned changes Thomas Cook can easily
maintain its positive brand identity in the mindset of their customers and also increase their
profitability of firm.
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2.3 Influence of marketing on society
By appropriate marketing plan Thomas Cook can develop its prominent position in
the market. In this concern, it can be determined that there their marketing is processed by
various elements such as tour operators, agents etc. They are only capable of attracting huge
base of customers towards their services (Dolnicar, 2007). Other than this, there is a huge
economic impact of marketing on society.
Most of the travel agents are working towards attracting customers just to increase
tourism and improve the overall economic situation of the society. Through this, they can
improve their country’s employment rate and also increase in exchange rate value due to
foreign exchange earnings. In addition to this, marketing of travel and tourism needs to be
done just to impact the overall culture of country (Willis, 2011). It increases the domestic and
international tourism and provide right information to people regarding different culture and
essence of nature. For the same, various promotional campaign can be run. It attract huge
base of customers towards their services and enhances tourism of different countries. In this
concern, it can be stated that marketing of Thomas Cook have social as well as cultural
impact on society.
TASK 3
3.1 Issues in the product, price and place elements of the marketing mix
At the time of preparing any type of marketing plan, Thomas Cook need to process its
marketing mix and identify all its associated component’s. However, at the time of
developing this plan company is facing certain issues such as: Product: This is the first most important aspect of marketing mix where company is
facing major issue regarding changing needs and demands of customers. For the
same, it is being quite difficult for Thomas Cook to match these rapidly changing
needs by offering various services such as: Several travelling facilities with proper
accommodation services (Taylor, 2011). Here, they can offer several discount offers
and many more.
 Price: Another major issue faced by company is related to their pricing as customers
do not afford any type of expensive services. However, they offer various services
such as different luxury hotels, villas with total family holiday package. So all these
packages are developed by them by keeping all financial factors into considerations.
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 Place: The most important factor for any travel agency is to select right place as per
tourist’s attractions. It helps them in making their best marketing strategies
accordingly and attracting huge base of customers.
3.2 Importance of service sector mix elements to the travel and tourism sector
Service sector mix element is regarded as one of the most important phase of
marketing mix. Some of its most important elements which needs to be considered by
Thomas Cook are as follows: People: They plays a most important role for entire businesses serves in any filed. By
keeping them satisfied only companies can grow their business as well as sales. Here,
Thomas Cook is entailing several measures in order to attract huge base of customers. Product: It is considered as a number of offerings provided by Thomas Cook at the
time of planning their summer holiday package of 2018 to Egypt and Morocco
(Dolnicar, 2007). Within any travel industry marketing differs as per the nature of
services provided. At the same time, employees need be properly plan their strategies
such as finance, marketing, human resource and many more.
 Process: The whole working process needs to be get improved so that quality services
can be reach to customers. For this, all their team members needs to share various
ideas among each other. It is the best way through which they can import any new
plan with their working. Other than this, appropriate training to be provided to all staff
members just to increase their efficiency level (Millis and Law, 2013). Promotion: By keeping interactive marketing into process Thomas Cook can attract
huge base of customers. For this, they can also maintain direct interaction with
customers and travelers. It is the most effective ways to keep in direct touch with
them and provide them appropriate information regarding various tour packages. It
boost the satisfaction level of consumers as staff members can easily fulfill their
needs and demands. It proves to be beneficial for them to consolidate large number of
customers with it (Middleton and Clarke, 2001).
By setting appropriate marketing mix elements for Thomas Cook brand image of company
can be enhanced and customer base can also be increased.
3.3 Concept of total tourism product
As per today’s monopoly of business each unit likes to work in an integrated manner.
Here, Thomas Cook also follow total tourism concept in which they use to provide entire
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collaborative services to all their customers. In this, they also come with association with
other companies. Here, they can provide entire package to their customer and leads to
enhance their satisfaction level. They can get associated with other firms in both horizontal
and vertical manner. With the help of vertical integration they can provide better experience
to consumers with association to similar nature of firms (Cook and Marqua, 2014). On the
other hand, horizontal integration refers to providing accompanying services such as visa-
passport services as well as ticket booking, accommodation, travelling places etc. In this
concern, one of the most effective ways for Thomas Cook is just to plan out their strategies to
get associated with that particular firm who use to entertain people by providing them wide
variety of entertaining services such as: Adventures trip can be plan out with various sports
activity etc. By signing this partnership Thomas Cook can attract more number of customers
and enhance its sales margin (Okumus and et.al., 2007). Hence, total tourism product is
considered as most effective ways for enhancing productivity of Thomas Cook.
TASK 4
4.1 Role of Promotional Mix
Promotional mix can be referred to the practice of systematic strategy of conducting
advertising by the company. With the help of it, Thomas Cook is able to boost its awareness
among target customers and able to enhance the sales volume in significant manner. In this
context, the business can conduct advertising on varied social media websites, digital
platform and in print media. From this, marketing message will increase significantly that
aids in meeting business goals. It also helps in attaining an edge over the rival organisation.
Further, cited organisation can take support from email marketing and tele-marketing in order
to reach to large set of customers (Law, Leung and Wong, 2004). From this, high attention
from target market will attained that certainly supports in boosting the sale volume. In
addition to it, sale promotion is yet another crucial aspect of promotional mix. In this,
Thomas Cook can offer lucrative schemes, discounts and special vouchers so that more of
customers can be attracted towards it. All these measures will help Thomas Cook in boosting
the awareness of organisation.
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4.2 Integrated Promotional Campaign
Thomas Cook Announcing
Summer 2018 Holidays
Morocco and Egypt
From the intoxicating essence of ancient-modern
metropolises, rousing landscape and beauty, Morocco and
Egypt promises to offer everlasting experience of
hospitality and tourism. From cruise on might Nile to
Sahara dunes, Morocco and Egypt looking forward to host
ancient Jerusalem.
Visit Morocco and Egypt to redefine the meaning the
holidays and leisure
Enjoy 11 days 10 night exclusive holiday experience at
Morocco and Egypt
Key attraction:
Ait Ben Haddou
Dades Gorge
Merzougs desert camp
Tamalakoute Berber Village
Beaches in Essaouira
Red sea
Saqqara Necropolis
Mt Sinai
Valley of the Kings
Kom Ombo
Give a miscall on 01733-224808 to get best deals on Summer Holiday 2017
For more info, visit: www.thomoscook.co.uk/summerholiday2017
Or write us at [e-mail]

CONCLUSION
With the help of this entire study it can be articulated that Thomas Cook can easily
maintain its prominent position in market by keeping their strategies into consideration as per
the changing needs and demands of customers. Also, just to attract huge base of customer
they have developed a best summer holiday plan from Egypt and Morocco.
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