Strategic Marketing in Travel and Tourism: A Thomas Cook Perspective

This report delves into the multifaceted world of marketing within the travel and tourism industry, employing Thomas Cook as a central case study. It begins by dissecting fundamental marketing concepts and principles, examining the impact of marketing environments on businesses, and assessing consumer motivation and demand factors. The report then explores market segmentation strategies and their application in marketing planning. Moving beyond foundational concepts, the analysis progresses to examine the role of marketing as a strategic management tool, evaluating strategic marketing planning, the significance of market research, and the broader societal implications of marketing. The report further investigates the marketing mix, discussing product, price, place, and promotional elements, along with the application of the concept of total tourism. Finally, the report concludes with an assessment of integrated promotional campaigns in the travel and tourism sector, exemplified by Thomas Cook's Summer 2017 holiday promotions, offering a holistic view of marketing practices within the industry.

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MARKETING IN TRAVEL AND TOURISM
Marketing in Travel and Tourism
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MARKETING IN TRAVEL AND TOURISM 2
Table of Contents
Introduction.................................................................................................................................................2
Task 1: Understanding the concepts and principles of marketing in the sector of tourism and travel........3
1.1 The evaluation of key concepts of marketing for the travel and tourism sector...............................3
1.2 Assessment of the effects of marketing environments on individual travel business which is
Thomas Cook and its operation in Morocco and Egypt...........................................................................4
1.3 Evaluation of various factors that affect the motivation of consumers and the demand in this
sector.......................................................................................................................................................6
1.4 Evaluation of the principles of market segmentation and its application in the marketing planning
of this organization..................................................................................................................................6
Task 2: Understanding the roles of marketing as a management tool........................................................7
2.1: Analysis of the essence of strategic marketing planning for Thomas Cook or either Morocco/
Egypt as a tourist destination..................................................................................................................7
2.2 Discussion on the relevance of marketing research and market information to managers in the
Thomas Cook...........................................................................................................................................9
2.3. Assessment of the implication of marketing on society...................................................................9
Task 3: Understanding the function of marketing mix in the industry.......................................................10
3.1 Discussion of the issues product, price and place elements............................................................10
3.2 Assessment of the essence of service sector elements to the service industry...............................11
3.3 Application of the concept of total tourism to a tourism business..................................................11
Task 4: Application of promotional mix in travel and tourism...................................................................12
4.1 Assessment of integrated nature and role of the promotional mix.................................................12
4.2 Planning and justification of an integrated promotional campaign for Thomas Cook Summer 2017
holidays.................................................................................................................................................13
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

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Introduction
Marketing works to ensure that there is a common platform to which the buyers and sellers can
engage. To derive maximum benefits from marketing and its related operations, it is essential to
align the organization's marketing strategies and the functional strategies. Just like it is witnessed
in other sectors, marketing has a profound role in the travel and tourism sector. The present
elements of marketing environment usually have implications on various business operations.
Any business in the travel and tourism sector should try their best in the fulfilling the needs and
expectations of its customers through the implementation of appropriate strategic and tactical
marketing decisions. This project will use Thomas Cook Group to evaluate various marketing
concepts and the different aspects of the marketing in the service industry.
Task 1: Understanding the concepts and principles of marketing in the sector of tourism
and travel.
1.1 The evaluation of key concepts of marketing for the travel and tourism sector.
Over the years, the global economy has experienced a range of mixed events. For instance, the
debt crisis was experienced in 2008 followed by the Euro debt crisis while on the order hand the
developing nations are experiencing growth and development in their economy. As the
developing countries are growing, they have to provide more clients who can afford to spend on
lifestyle and travel-related activities. The increase in the disposable income in the developing
nations has led to improvement in the consumer expenditure. Also the travel and tourism sector
has experienced increased competition leading to the development and as a result encouraged
new smaller entrants in the market space (Bennett & Strydom 2001). Due to the efforts of the
players in this sector, there has been increased provision of high-quality products and services,

MARKETING IN TRAVEL AND TOURISM 4
and this has led to the attraction of more customers. Before the increased economic growth the
products offered were diverse in nature, but recently the business in this sector have started
producing more homogenous and standardized products. It is notable that the number of
customers in the developed world and decreased forcing companies such as Thomas Cook to
developed improved marketing strategies to attract more customers.
The marketing activities of any organization are more than creating a need from clients. The big
organizations in the tourism and travel are shifting to market approaches that are trade oriented.
The role of the market division has become central due to the increasing give customers a first
priority and the need for market variations. Most businesses in this sector are changing their
market strategies aligning them with long-term market objectives. The companies have provided
more regulations concerning the value delivery of services to the customers to enhance the
customer satisfaction and consequently realizing business objectives (Bennett & Strydom 2001).
The need to enact stricter regulation is that the customers themselves can directly experience
various services such as vacation and tourism services. This means that business is holding more
value in the customer choices. Due to the increased competition, the current business such as
Thomas Cook and new entrants in the market have tried to develop new and innovative ideas that
attract and retains customers.
In the 21st century, the market dynamics have become highly dynamic. There is high
competition among the service providers. Various emerging micro-enterprises have taken the
market. ICT has had a profound effect the development of markets since you will witness
technology in every marketing operations and management options. Due to the increased
disposable income in developing economies, there has been an increase in the number of
customers (Lamb et al 2012). Another factor have been the shift while adopting sustainable

MARKETING IN TRAVEL AND TOURISM 5
development needs. In planning the business venture in both Morocco and Egypt, Thomas Cook
will need to consider these aspects.
1.2 Assessment of the effects of marketing environments on individual travel business
which is Thomas Cook and its operation in Morocco and Egypt.
Businesses carry out their operations in marketing environment which is categorized into micro-
environment and macro-environment. Marketing environment can be defined as various factors
that directly or indirectly implicate the proposed marketing activities. Micro-environment entails
the internal variables such as customers, competition and other factors that are within the
organization's control. Macro-environment entails those factors that are not within the business
control such as demography, political, social, and cultural and technologies in the area of
destination (Bearden 2006). The company needs to evaluate strategic analysis and planning to
develop approaches that help the company deal with both the micro and macro environments.
In Morocco, the environment is well developed on the tourist sector. It has been evidenced that
the tourism sector contributes approximately 8% of the GDP. The sector also hosts 18 million
visitors every year. Morocco is suitable destination has some free trade agreements in place, and
the economic and political environment is quite stable favoring the conduction of business. Also
the country has a good relationship with the EU. The country has ensured to develop its
infrastructure and is in line with various international standards. Another thing is that the
company has put in place some fair rules that control copyright, labor and pricing and industrial
property. There is a considerable gain in demand for tourism from the domestic customers. There
has been a cordial relationship between the governments which has led to the development of
policies that promote the growth of tourism sector. Thomas Cook should however not that there

MARKETING IN TRAVEL AND TOURISM 6
are many competitors in the market and they include luxury hotels, tourist agencies owned by the
government and privately owned tour operators.
The tourism industry in Egypt is quite developed and characterized as being vibrant and diverse.
There is a large number of tourist attraction sites, cultural heritage and unique geographical
features essential for tourist attraction. It has been evidenced that the country can quickly recover
as seen from its recovery from the recession which is a promising factor for market entrants in
the tourism industry. The travel and tourism sector usually contribute about 14.8% of the total
GDP. Considering all the factors in both Egypt and Morocco, Thomas Coop Group has a perfect
environment to make their investments. This means they can start the planning process and
develop the scope of its marketing campaign.
1.3 Evaluation of various factors that affect the motivation of consumers and the demand
in this sector.
Consumer behavior is a core factor due to the presence of many different wants and needs. This
brings up the need for the marketing team to profile the needs of the consumer through the
evaluation of factors that affect the behavior and demand a process which has been established
on the principle of market orientation (Bearden 2006). Consumer behavior constitutes those
consumer actions that directly or indirectly are considered in the process of establishing and
fulfilling the customer wants and needs.
This concept involves decision making on various issues that have implications on the consumer
behavior such as motivation, attitudes, perception and learning ability. Other factors that
determine the consumer behavior is their social status, reference groups, families and the cultural
groups they belong to. Another issue worth evaluating the process of making decisions by the

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consumers. This process entails recognition of the problem followed by their search of relevant
information (Adcock & Ross 2001). From the pool of information gathered, the consumers then
evaluate the available choices. The customer then evaluates on the choice of purchase which is
impacted by the present conditions. The model that defines consumer behavior in travel and
tourism sector is leisure motivational scale (Dey & Sarma 2006). This model entails intellectual
motivation, social motivation, and the need for competency and has a mastery of skills through
various activities. There is also the stimulus, avoidance motivations that ensure that the clients
enjoy the services. The final objective of having marketing is to ensure consumer satisfaction
and for them to have value for money.
1.4 Evaluation of the principles of market segmentation and its application in the
marketing planning of this organization.
Since a market entails a variety of categories of people, the company need to plan the market to
ensure there is the maximum satisfaction of consumer need and wants. There is market
segmentation which entails the process of categorizing the market according to various factors
such as similarities, relationships, and groups. This is to ensure that the company can emphasize
on the appropriate resources to the given area to ensure that the company attains competitive
advantage. There is various forms of market segmentation and include geographical,
psychographic and demographic segmentation. Geographical segmentation entails categorizing
the marked according to the geographical areas and managing resources as per the consumer
characteristics (Adcock & Ross 2001). Psychographic segmentation involves bases the category
according to the attitudes, values, culture emotions, perceptions and beliefs of the consumer.

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Lastly, there is demographic segmentation that profiles customers according to gender, income,
social status, and educational level among other factors.
In market segmentation, there are qualitative and quantitative methods of market segmentation.
In this industry, there are variables established on behavior, needs, and motivation. The
typologies involving interactive tourists are based on the interconnection of the environment and
tourists and their destinations (Dey & Sarma 2006). There is also the cognitive-normative tourist
typologies which are interlinked with the psychographics of the customers. Firms use these
typologies in market segmentation process, and therefore there can be an appropriate allocation
of resources.
Task 2: Understanding the roles of marketing as a management tool.
2.1: Analysis of the essence of strategic marketing planning for Thomas Cook or either
Morocco/ Egypt as a tourist destination.
There is dynamism of this industry with time which brings the need for strategic planning in the
organization and that of the destination. The strategic market planning involves the evaluation of
the organization's environment and strengths, competition, and the overall market condition. This
will aid the organization to have an understanding of its capabilities before commencing the
development of the appropriate market entry strategy. It also defines the direction to be followed
in addition to the provision of the vision, leadership direction and the management structure to be
used (Middleton & Clarke 2012).
Thomas Cook Group has been in operational in the travel and tourism industry since its
establishment in 1841. The company has various branches globally and has emerged as one of

MARKETING IN TRAVEL AND TOURISM 9
the best in the industry. For a better strategic analysis, it is essential to evaluate the company's
SWOT analysis.
Strengths: The Company has a huge history of success and has vast coverage having employed
people who are diverse. The company has been involved the acquisition and merger such as that
with MyTravel and Kuoni. Thomas Cook has a vast product portfolio necessary for customer
satisfaction accompanied by different established brands.
Weakness: The market environment has shown instability. There has been stiff competition and
reduced market share. There has been instability in the financial market leading to losses due to
exchange rates.
Opportunities: There are some openings that can be explored such the growth in online booking
and the global increase in demand. The financial report shows that the company is making
progress.
Threats: These include economic uncertainty and the increase in competition from low-cost
agencies and organization offering similar services. The company is prone to losses due to low
profitability caused by an increase in competition.
2.2 Discussion on the relevance of marketing research and market information to managers
in the Thomas Cook.
Marketing research and information is essential in travel and tourism industry. Marketing
research ensures that the company links with customers and the public. The company uses
information is defining and identifying new market opportunities. Market information is used by
the firm to develop strategies for the market entry. Through market research, Thomas Cook

MARKETING IN TRAVEL AND TOURISM 10
evaluates factors such as competitors to make decisions on mergers, franchises or acquisition. It
can also be used in segmentation, targeting and brand positioning. Market research data is sued
in enlightening the managers on the best information systems. The data can also be important in
forecasting on the market trends based on demographics. Market research can also be used by
Thomas Cook in the evaluation of relevant products and understand the general trend in the
industry.
2.3. Assessment of the implication of marketing on society.
Marketing is essential for the protection of consumers in compliance with the government rules
and regulations on products and services. There is also the increment of social responsibility
which means that the society benefits. Market increases consumerism since the decision to buy is
influenced by the markers' decision making (Housden 2014). Marketing is essential in raising the
public awareness of various government policies and also helps in the safeguarding of the
environment. Marketing helps in formalizing legal implications in the market by ensuring there
is compliance and creating awareness. Through ethical practices and code of conduct, marketing
helps in the development of sustainability. The marketers help in the achievement of the
expectations of the government and consumers' (Swart & Roodt 2014). Due to this importance,
the organization should invest in marketing and ensure compliance with regulations.
Task 3: Understanding the function of marketing mix in the industry.
3.1 Discussion of the issues product, price and place elements.
Marketing mix entails a policy framework implemented for the success of marketing activities. It
ensures entails variables such as product, price, and place. The product is the first element with

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the objective of satisfying the customer requirements. It entails activities such as product
services, packaging, branding (Housden 2014). Planning and the development of various
products. The other element is pricing which entails pricing strategies that establish what the
consumers must give for the product or service. This is viewed as the most competitive strategy
and includes factors in pricing such as payment, delivery, pricing objectives and other policies.
The place in the marketing mix involves deals making available goods and services to the
consumers at the appropriate time. It entails place and time utility. This aspect deals with
distribution channels and the physical distribution.
The marketing mix is dynamic with time due to variation in the market nature. Both controllable
and uncontrollable factors affecting marketing mix exists. Uncontrollable factors are market
oriented and include competition, customer behavior and also the government behavior.
Controllable factors involve those factors that can be solved by the management and include
product, pricing, branding, promotion packaging and distribution policies (Swart & Roodt 2014).
3.2 Assessment of the essence of service sector elements to the service industry.
Service marketing mix entails to the combination of elements used in the communication of the
brand to the consumers. Services have unique features such as they are intangible, heterogeneous
and are a consumer as the production time. There are seven Ps in service mix and include
product, place, people, processes and the physical evidence.
The location of the service is essential in that it determines the comfort and attractiveness of site
of the service. The place in this industry is realized through the customization of the service to
meet the needs for the customer satisfaction. The pricing strategy for service is essential since it
determines the direction of the demand and supply. It also provides the firm with the competitive

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edge. The place strategy is essential in that it helps the company to provide accurate information
to the customers before they commence their journey. Promotion is important as it helps in
addressing and providing accurate and timely information to its clients (Koutoulass 2001). The
travel experience determines the physical evidence, and there can be the evaluation of post
purchase experiences. Service mix determines both the performance and brand loyalty. Service
mix marketing helps in the creation of brand awareness to ensure customers make informed
decisions.
3.3 Application of the concept of total tourism to a tourism business.
Total tourism product entails the intangible and tangible components established on a specific
destination. Total product constitutes three components. First, there are integral services that can
be sold alone such as accommodation, bookings and air transport. The second one is public
goods which include beaches, scenery, and climate. The third one includes complementary
services.
Thomas Cook Group has a total tourist product that provides the required experiences. For
instance, the company has 2000 destinations globally and has a fleet of vehicles to deliver
customers to their destinations. It also has more than 100 airplanes to transport to all destinations
internationally (Donovan & Henley 2003). The company has a comprehensive distribution
system to deliver their products such as stores, agents, websites and their call centers to enhance
the customer experience. Thomas Cook's product portfolio is broad to provide the needs of
various brands.

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Task 4: Application of promotional mix in travel and tourism.
4.1 Assessment of integrated nature and role of the promotional mix.
Promotional mix incorporates methods, techniques, and tools of communication in the
presentation of a firm, products and services. A successful promotional mix establishes the
success of marketing mix and aids in the attraction and maintaining clients. There are various
components of the mix promotion. They include:
Advertising: It entails the presentation of the promoting message, goods or services to the
customers through the utilization of various media such as print media, the internet, social media,
etc.
Personal selling: It entails persuading the customers through the use of oral presentation. Sales
representatives, samples and sales meeting can be used.
Sales Promotion: It entails the use of media and non-media marketing channels. This is used to
enhance the demand and improve product presence.
Public Relations: It involves the stimulation of supply through sharing information in the media
in methods such as reports, magazines, speeches and periodicals among others.
Direct marketing: These components allow the firm to directly communicate its message to the
consumers. The techniques used include mobile messaging, emails, letters, websites and direct
emails among others (Donovan & Henley 2003).
4.2 Planning and justification of an integrated promotional campaign for Thomas Cook
Summer 2017 holidays

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In the planning of an integrated promotional campaign, Thomas Cook should consider the
audience. Understanding the motivation of these customers is essential. There is a need to
conduct an online survey. This can be done through online booking systems and the website. The
right channel to get to the customers can be decided using the correct information. The most
appropriate choices would be Twitter, Facebook, and Instagram. The company can also adopt
digital marketing.
The next stage is the creation of a message that is consistent, coherent and efficient. The areas to
be visited for summer 2017 will need to be considered in the design of the message. The message
should portray appeal to attract the customers. There should be the integration of the message to
get to the target audience. The other step will involve the evaluation of campaign and correct
present errors.
Conclusion
The general situation of travel and tourism entails areas such as hotel and airport operations that
are very competitive. The project has evaluated various areas of marketing using Thomas Cook
as the case study. The role of marketing involves the organization, the sector, and the society.
There is various travel and tourism sector uses some tools. This was to use traditional marketing
strategy and marketing mix to implement the market approach.
References
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Bearden, I. 2006. Marketing: Principles and Perspectives. Academic Internet Publisher, Inc.

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Donovan, R. & Henley, N. 2003. Social Marketing: Principles and Practice. Pp57-90.
Melbourne: IP Communications.
Bennett, J. & Strydom, J. 2001. Introduction to Travel and Tourism Marketing. Lansdowne: Juta
and Company Ltd.
Dey, B & Sarma, M. 2006. Tourist Typologies and Segmentation Variables with Regard to Eco-
tourists. Tourism Management, 3. P. 31-39.
Housden,M. 2014. Marketing Information and Research. 2nd ed. Oxford: Butterworth-
Heinemann.
Koutoulass, D. 2001. The theoretical determination of the tourist product as a presupposition for
tourism marketing. Doctoral Dissertation. University of Aegean.
Lamb, C., Hair, J. & McDaniel, C. 2012. Essentials of marketing. 7th ed. Mason, Ohio: South-
Western Cengage Learning.
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of business tourist retention. Serve Bus, 9(30, pp. 491-513
Thomas Cook Group, (n,d). About Thomas Cook. [online]. Decision analyst. Available at:
http://www.decisionanlyst.com/publ_art/marketsegmentaton.dai [Accessed February 11,
2017]