Marketing in Travel and Tourism: Case Study of Thomas Cook Group

This report provides a comprehensive analysis of marketing strategies within the travel and tourism industry, focusing on the context of the Thomas Cook Group's summer 2018 holiday plans for Morocco and Egypt. It begins by defining key marketing concepts such as production, product, selling, ...Read More

MARKETING IN TRAVEL AND TOURISM
STUDENT NAME:
STUDENT ID:
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Table of Contents:
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................3
LO 1. Understanding the techniques and values of marketing in the travel and tourism industry..3
P1.1 Key concepts of marketing used in tourism business..............................................................3
P1.2 Collision of marketing process on travel and tourism sector and some travelling locations
with respect to Morocco and Egypt.................................................................................................5
P1.3 Factors that harm consumer influences and demand in the travel and tourism industry........5
P1.4 Analyzing the role of segmentation of market and its effectiveness in planning at Thomas
Cook Group.....................................................................................................................................6
Task 2:.............................................................................................................................................7
LO 2: Importance of the marketing as a management technique in travelling industry..................7
P2.1 Influences of strategic planning of marketing:........................................................................7
P2.2 Marketing research on travel and tourism business................................................................8
Task 3...............................................................................................................................................9
P3.2 Significance of service sector mix elements to the tourism industry....................................10
P3.3 Notion of entire tourism product to Thomas Cook...............................................................10
Task 4.............................................................................................................................................11
LO 4: Use of promotional methods in travelling industry.............................................................11
P4.1 Importance of promotional strategy in marketing.................................................................11
P4.2 Planning and justifying the promotional campaign:..............................................................12
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
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Introduction:
The tourism and hospitality industry is one of the most important in the whole economy.
In recent years travel and tourism have become an integral part of creating an impact on the
developing growth of a country’s economy in terms of traveling sector. Money making and
producing opportunities in career are the core benefits of tourism. Tourism marketing is
considered to be the operation of the techniques and principles of marketing field in a field of
tourism. The management of Tour Operator Thomas Cook plans to create a summer 2018
holidays for a Morocco and Egypt. For many countries and regions across the globe, it is the
most vital way of welfare. Travel and tourism plan to continue to grow the wide economy by
increasing economic growth. The study shows the impact of marketing on travel and tourism
sector, uses of marketing promotional mix and the campaign to develop this sector gradually.
Figure 1: Thomas Cook Logo
(Source: Thomascook.com. 2017)
Task 1
P1.1 Key concepts of marketing used in tourism business
According to Navickas and Malakauskaite, (2015, p.12) in order to increase the
marketing growth rate in the business of tourism for creating huge identity and importance of it
globally, following concepts have discussed below:
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Production concept: Products that are available widely and comparatively cheap are
preferred by the customers most. This concept is more operation oriented.
Product concept: Products that offer the high quality, conduct, or creative traits are
mostly favored by the customers. The product concept has faith on its consumer and says that
loyal consumers are those who get variety of product options and advantages from the company.
Selling concept: When the tourism company belligerently promotes or sells their service
or product, the consumers buy their products more. Apart from this, marketing is also done
widely to attract the target audience on a large number.
Marketing concept: This concept believes in pull strategy of marketing where it states
that the brand needs to be strong enough to attract the consumers automatically in choosing the
particular brand over their competitors through huge marketing.
Social marketing concept: The customer and society’s wellness will be preserved by the
company on focusing the requirements of target markets and by delivering outcomes better than
the competitors in terms of other tourism businesses.
Figure 2: Key Concepts of Marketing
(Source: Xu et al. 2016, p.1124)
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P1.2 Collision of marketing process on travel and tourism sector and some
travelling locations with respect to Morocco and Egypt
As stated by Morrison, (2013, p.22) travel and tourism marketing is carried by travel
agencies, destinations, and the suppliers in order to get the better results and encourage people to
opt for traveling on their holidays.
Events: Travel marketing gets on rapid profit scale when a destination has a special event
like vacation markets, annual festivals, etc. The raised media attention and global attention on
Thomas Cook Group is a form of low-cost marketing. Travel marketing use branding as well as
paid form of marketing to gear up with the event schedule in order to increase the return on
investment, and attending the popular event in public areas as well as tourism markets
(Thomascook.com. 2017).
Seasons: In travel and tourism industries, the low season brings cheaper air tickets while,
in high season, price associated with travel with respect to Morocco and Egypt mainly will
increase. A number of suppliers and tourism authorities will pile their marketing plans with both
the seasons spending budget which affects all type of marketing methods, as well as marketing,
occurred during each period.
Currency Rates: Fluctuations in the currency rate between different countries will occur
due to international travel supplier and marketing based on the destination as per the company
Thomas Cook Group. The rate of dollars when go down against the pound, market reduction
takes place in the particular destination. The increasing attack of terrorism in Morocco and Egypt
affects tourism rate to visit the country which ultimately creates a huge loss to the tourism sector.
P1.3 Factors that harm consumer influences and demand in the travel and
tourism industry
As mentioned by Liu and Chou, (2016, p.298), consumer behavior gets affected in
tourism industry due to certain reasons which have been discussed below:
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Web: The rapid growth of the technology has changed the style of searching information
by the people about travel and tourism services. In the context of travel purchases, a difference
between online shoppers and non-shoppers has been examining.
Safety and sophisticated consumers: Cross-cultural differences exist in consumer
perceptions which show that safety measure is the important service quality among the
international travelers. In terms of advertising, travel and tourism marketers needs to realize that
behavioral composition in TV ads impact older consumers’ perception by influencing on the
product and service of tourism.
Pricing: On the basis of deviations in price, value and quality of a product or service in
travel and tourism sector will cause a huge effect on the pricing and investments made in this
sector. This will also cause the customers to adopt for other agencies offering better services at
moderate price.
Environment: Physical environment is the place where the customers purchase the
products from. The traveling environment influences the tourist’s post-absorbing reactions. The
situational environment is when the traveler reacts as per his situation where he I going with his
or her friends, families or office team. Consumer behavior has a direct link with the state of
mind. It is quite easy to influence the customer with a good mood for a tourism agency.
Economic factors are considered to be sensitive in terms of environmental change which affects
the consumers greatly in choosing a destination for traveling.
P1.4 Analyzing the role of segmentation of market and its effectiveness in
planning at Thomas Cook Group
According to Pike, (2015, p.15) every tourist is different from others and acknowledging
this also states that tourism industry cannot look for individual preferences separately leads to the
basis of market segmentation. In the tourism industry, market segmentation can be posted by any
unit operating: hotels for accommodation, travel agencies, an attractive point of tourists and
restaurants. The advantage of market segmentation involves a tourist destination specialized by
individual tourists to meet their expectations. So in order to make the market segmentation of a
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tourism sector useful with effectiveness in its marketing planning, some functions have been
discussed:
The segment in Thomas Cook Group made unique where the members of one segment are
similar as well as distinct from each other (Thomascook.com. 2017). It is matched with the
strengths of the tourism destination. Identification of the segment is mandatory where the female
travelers can be located easily along with others who are influenced by relaxation while
traveling. In order to communicate with the destination management in terms of advertising in
magazines effectively, the segment is made reachable. The market segmentation is maintained
with a suitable size for having an advantage of distinct requirements.
Task 2:
P2.1 Influences of strategic planning of marketing:
For smooth functioning of a business, strategic planning is required that will a vital role
in the development of business. The term business development refers to the growth that mainly
depends on total capital investment and its market opportunities. In other words it can be said
that, in order to lead a business there must be a balance between objectives as well as
opportunities of venture and it needed to be maintained properly for getting better outcome.
These strategies planning for the business can reach in the competitive market and achieve the
goal. According to Kavoura and Stravrianea (2014, p.312), for the systematic process the
business need objective for the past three succeeding years and develop it in order to direct the
plan and gain the profit margin. This usage will also give a success and reduce the risk factors.
The control over the business is the test of venture, sovereignty, different trainings, creating
infusion, evaluation and reaching the unit of goal. The objectives of the top management can be
achieved by this business tools for reaching the goals and renovating the process.
As opined by Law, Buhalis and Cobanoglu (2014, p 745), strategic planning is the
designation in order to create a healthy one to survive but although sometime its function get
distract. The implication for the strategic planning for tourism it too volatile and therefore it is
required a high chance of planning. A dynamic planning is the process where systematic and
revision factors affect the position the business in terms of tourism. The points that are needed to
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keep in mind for a strategic planning are encouraging the administration and create new
opportunities. Customer’s viewpoints and their desires are in the first priority.
P2.2 Marketing research on travel and tourism business
Marketing strategy is all about dynamic planning that pinned up on the board which is
focused and something the actions that are taken become part of the daily life. For managing the
tourism department's all that is needed is communicating with the customers that make
customers know all facts and detailed information regarding their destination plans and met their
needs. We all know that tourism business is mostly medium size with a limited budget so
planning and proper generation is required. In this business, guaranty for generating a positive
return on investment is crucial. Therefore, a tourism business needs some of strategy like:
Identification of direct customers: Specifying the ideal customer is important for the
dedication in marketing activities. Spending money and time without knowing the ideal
customers are really do not necessary as they are not willing to work with. If the messages are
not specified then they have no chance of making any type of sale as possibly they can.
For achieving marketing goals what the points to identify: Within a limited budget of
the business they need to set a proper goal and objective which will make a big part of marketing
accountability and also report on return of investment.
Understanding competition in the marketplace: A strategic marketing plan permit to
assess the competitive atmosphere and trends of consumers and their demand. It gives them
opportunity on align offers to suit changing in market place and ideal customers within it.
Measuring return on investment: If positive return on investment is not generated then
there is no point to invest on the marketing activities. Strategy of planning a holiday leads to
accountable only when there are a good number of returns on investment.
P2.3 Influence of marketing society:
Travel and tourism business are destinations and travel companies to get the word and
encourage the tourist to visit the desired location. It is primarily economic and several factors
from the man made to the nature. There are different factors for that influence the market are:
Events: When a person happen for a special event like holiday or annual festivals or a
large scale is ratcheted up accordingly. According to Neuhofer, Buhalis and Ladkin (2014, p
345) No-cost marketing is the form of promotion by which an organisation can increase their
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business and get a global extended. Paid marketing are also coincide with the events to
maximize return .Travel marketing use branding from the event organized and joint initiatives
for the years prior to the event to create a firm associated between the destination and plan.
Seasons: Tourism products have a relation with high and low season policy as they
maintain a rate on the bases of it. Such as, low rate means low season, cheaper flights and less
interest overall. High season cost of travelling expenses related to flight and transport all are
expensive. Therefore, many the suppliers’s marketing plan with high season and low in low
season spending budget. This affects the market that takes place during this period and effort the
market economy also.
Currency rate: International suppliers and event marketers effects the currency rates
between the countries. The marketing increased with the revitalize the market or it reduces as
losses and waiting for the process which begins until the currency rates normalized.
Travel trends: The trends which are developing from one year to the next to determine
the market after and their product which are advertised. Destination weddings spa or golf
vacations are some of trends which are becoming more popular among the people. Therefore,
they need to establish travel media, tourism survey and monitoring the marketing for the
professionals. As a result, all is need to be develop campaigns and create partnership with
different organizes for such events.
Task 3
Covered in PPT
Task 4
P4.1 Importance of promotional strategy in marketing
In marketing mix, the four P model plays an important they are : product , pricing ,
promotion, place.
Product that sells the product should be either tangible or intangible services that fulfill
the wants of the customers. Prices strategies and policies are the important mix in the travel and
tourism management for integrating the nature. It refers to time, cost of travelling are spent on
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attending an event or purchasing a product. According to Horner and Swarbrooke (2016, p 270)
value of the product or services expressed in terms of money which the consumer pays oe is
expected or offered the product or services. Airline, railways are charges a fare for the services
that are offered. The pricing has to match the product and keep the product price consumers
friendly. Pricing needed to be set first for offering better packages than their competitors.
Rahmani, Emamisaleh and Yadegari (2015, p.100) stated that services that needed to be targeted
on tourist market so that the range cannot be tangible.
It is the major aspect in tourism business where they have to see what their competitors
are charging. It is known to all that for running the business smoothly the marketers need to put
the products in right place at right time. On other hand, promotion is the also plays a major role
in tourism. It plays a major role in all the way market and advertises business. According to
Smith and Front (2014,p 960), marketing plays different roles like placing ads in tourist
magazines and offering coupons in guides. Different hotels in the areas and leaving a flier in
each hotel room doors. Connecting the customers or tourist place is the role for marketing mix.
Drawing attention of the tourists is main aim of the tourism services. Therefore for integrating
such service the promotional and price strategies are to be integrated.
P4.2 Planning and justifying the promotional campaign:
Planning for the holiday and spending a quality time with the family we planned a
holiday for you by making easy for the travelers to enjoy the trip. The customers can access their
websites easily for booking hotels. The campaign is widespread across social media. Low rates
rooms are available. It is possible for them to attract the attention of their customers by offering
opening discounts coupons for the members who will book this package with ten days. Spa and
different culture activities are available. We also plan for a dinner night with different
continental dishes within the package system. All will be available for the cheaper rate for
limited period and terms and conditions are applied in some of the schemes. As compare to
other, they are providing these facilities in high rate with no offer and discount facilities.
Therefore clients are requested to attend such attractive program and enjoy their trip.
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EXCITING SUMMER HOLIDAY
PACKAGES 2018 BY
PLANNING AND JUSTIFYING THE PROMOTIONAL CAMPAIGN
Summer Holiday Package
 Thomas Cook has come up with an exclusive
package that includes destinations such as
Morocco and Egypt.
 The package includes visiting of 4 nights and 5
days which has several benefits and that are also
mentioned in the itinerary.
 Different places of Morocco such as Atlas
mountains, Jemaa el- Fnaa and Bahia Palace
will be covered in the journey.
 The package also includes destinations such as
Giza pyramid, Great Sphinx of Giza and Valley
of the Kings.

Conclusion
Travelling and tourism business are at present the number one business in our
economy. For maintaining such the strategies like planning, developing the ads campaigns
and makes the first priority of the customers that will make the demand more. Marketing mix
includes pricing, promotion, product and place are four promotion mixes which will enhance
the marketing process and attract the client. The destination which the client select for the
holiday and relax their free time is to be furnished so that a more and more clients indulge on
this tourism. As a result, increases in economy and growth of business can be achieved by
the company.
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