Marketing in Travel and Tourism: Case Study, Thomas Cook Group Report

This report delves into the core concepts of marketing within the travel and tourism sector, using Thomas Cook as a primary case study. It explores fundamental principles such as needs, wants, market analysis, demand, and the significance of networking and relationship building. The report examines the impact of the marketing environment, including political, economic, social, and technological factors, on travel and tourism businesses in destinations like Morocco and Egypt. It also analyzes factors influencing consumer motivation and demand, such as internet access, attractions, budget considerations, and the range of travel options available. Furthermore, the report discusses market segmentation strategies, including geographic, demographic, psychographic, and behavioral approaches, and their application in marketing planning. The report also highlights the importance of strategic marketing planning, marketing research, and the role of marketing in society. It covers the elements of the marketing mix, including product, price, place, and promotion, with a focus on the service sector mix and the concept of a total tourism product. Finally, the report examines the integrated nature and role of the promotional mix, providing insights into planning and justifying integrated promotional campaigns for a company like Thomas Cook.

Marketing
In travel and tourism
1

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Core concepts of marketing for travel and tourism sector.....................................................3
1.2 Impact of marketing environment on individual travel and tourism businesses within
Thomas Cook Group and tourist destinations..............................................................................4
1.3 Factors affecting consumer motivation and demand in travel and tourism sector................5
1.4 Principles of market segmentation and its uses in marketing planning at Thomas Cook
Group...........................................................................................................................................6
TASK 2............................................................................................................................................7
2.1 Importance of strategic marketing planning for Thomas Cook.............................................7
2.2 Relevance of marketing research and market information to managers in Thomas Cook
Group...........................................................................................................................................7
2.3 Influence of marketing on society..........................................................................................7
TASK 3 ...........................................................................................................................................7
3.1 Issues in product, price, place elements of marketing mix....................................................7
3.2 Importance of service sector mix elements to travel sector...................................................7
3.3 Concept of total tourism product to an individual tourism business.....................................7
TASK 4............................................................................................................................................7
4.1 Integrated nature and role of promotional mix......................................................................7
4.2 Plan and justify integrated promotional campaign for Thomas Cook...................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Travel and tourism sector in UK is regarded as one of the fastest growing industry across
the world. Marketing is considered as indispensable component within the industry. Through
effectiveness in marketing planning, exchanges between visitors and destinations, tour operators
and travel agents has been started in an appropriate manner (Fyall and Morgan, 2009). Morocco
and Egypt are renowned travel destination that possesses treasure of nature and wildlife. In the
present report, marketing in travel and tourism sector has been discussed with respect to
Morocco and Egypt. The study entails to understand concept and principles of marketing in
tourism sector. Further, it covers the role of marketing as management tool in travel and tourism.
TASK 1
1.1 Core concepts of marketing for travel and tourism sector
Marketing involves the activities of firm that are attached with buying and selling of
products and services. It includes advertising, delivering product and selling to the customers.
The core concept of marketing has been enumerated in the manner below: Needs: In the present competitive environment, it is essential for the individual to seek for
movement towards the desired location in order to gain relaxation. There is greater
requirement for the market to make identification of individual’s needs and make efforts to
attain them in an effective manner (Gretzel, Hwang and Fesenmaier, 2012). In travel and
tourism sector, basic need of customer involves food, financial services as well as
accommodation. Thomas Cook offers such kind of amenities to the travelers. Wants: There are different customers of Thomas Cook from across the globe. Various
customers possess several wants and desires in relation with travel options, accommodation,
entertainment options as well as food delight. The company has several options regarding
this. Market: This is regarded as the target market for the company. There is presence of two
types of market which includes; indirect and direct. The former involves targeted audiences
and customers (Hudson, 2010). However, indirect market covers intermediaries. In case of
Thomas Cook, direct market will be for travelers and patrons. Further, indirect market
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comprised of suppliers of hotels, accommodation, industry as well as providers of financial
services. Demand: Analysis and development of operations are carried out on the basis of demand
which is regarded as the most crucial part of marketing in travel and tourism sector (Gretzel
and Yoo, 2008). Firm carries out assessment of target market, customers and develops
strategies in accordance with it. Profit: This concept is referred to as estimation of business profitability after taking out all
the expenses that will incurred in the marketing related activities.
 Networking and relationship: Key requirement of marketing is related with development of
relationship with customers as well as suppliers with the aim to enhance the share of market
(Le Serre and Chevalier, 2012). Through development of satisfying relation with patrons
and distributors, firm is able to survive for longer time span. Such can be improved through
deliverance of quality products and effective services at reasonable prices.
1.2 Impact of marketing environment on individual travel and tourism businesses within Thomas
Cook Group and tourist destinations
Marketing environment has potential impact on the business of Thomas Cook. Further, it
assists in persuading the visitors towards colossal monuments of Egypt and unique as well as
interesting places within Morocco. The impact of marketing environment has been enumerated
below: Political environment: The regulatory authorities of Morocco and Egypt invite visitors
for exploring the natural beauty. This is done through liberalization of rulers and
regulations in relation with visas and other related formalities while entry
(Machlouzarides, 2010). In addition to this, the legislative heads persuades investments
by offering opportunities of business to traders by liberalizing the norms within formal
agreements. Economic environment: The economic conditions of Egypt as well as Morocco has
enhanced since 2003. This is after when the economic reform was undertaken by the
government through liberalization of economic policies. The emergence of customs and
tariffs has effectively favored travel and tourism industry in order to enter with ease in
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the nation. Such has potential to benefit destinations as well as tour operators who are
engaged in organizing trips for these nations. Social factors: It is comprised of choices and preferences of the local customers and
visitors. Marketing is carried out by keeping in view such factors into account. Thomas
Cook has to plan trips and develop packages in accordance with the choice of the people
and social norms related with destination (Middleton and Clarke, 2012). There is greater
role of liberalization in affecting the marketing strategies adopted by tourist’s
destinations and operators. For instance, Egypt and Morocco is considered as the land of
ancient civilization and people desires to explore magic, mystery as well as pleasure.
Thomas Cook developed planned packages by keeping such aspects in mind.
 Technological factors: With the increase in globalization, there is greater pressure exerted
on the marketers to connect with larger stream of people in an appropriate manner. The
improvement in technology with respect to communication as well as marketing assists in
developing sound relationship with customers (Singala, Christou and Gretzel, 2012). For
example, through viral marketing association with suppliers on virtual platform can be
developed. With the customer interface and demonstration of packages as well as
facilities on website, better understanding can be developed in relation with facilities
offered by operators.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector
Through emergence of travel and tourism sector in several dimensions the perception
regarding demand and supply has changed significantly. The level of motivation among
customers as well as demand highly depends on large number of factors. The change in demand
is encountered due to presence of several factors. Further in order to accomplish the needs of the
customers and travelers the operators and suppliers are enhancing the standard of services. It has
increases the competition within the industry to a significant level. It also increases the
competition within the industry to significant level. Internet: With the increase in association among people the customers and patrons are
able to gain information in effective and precise manner through wide range of sources.
This assist in taking appropriate decision through analysis all the factors (Steinberg,
2002). Egypt and Morocco are regarded as one of the honored tourist destination across
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the globe. The information regarding the place, operators as well as other facilities can be
gained through internet. The extent of marketing can be determined through number of
visitors. Attract and entertainment: Every nation possess large number of resources that has
potential to attract the visitors. It involves scenic beauty, the archaeological heritages,
water places and monuments. The country is blessed with such resources that assist it in
attaining success by attracting large number of tourists. Budget: The individuals who possess high disposable income wishes to move from one
place to another on very frequent basis. In addition to this the people having less financial
resources does not restrict themselves from visiting new places (Swarbrooke and Horner,
2012). Taking such into account Thomas Cook has developed holiday packages as per the
range of budgets and choices. The firm has involves large number of amenities within
low budget as well.
 Range of options: The customer makes selection of the operator that offer wide range of
facilities in a particular package. Taking such into consideration Thomas Cook offers
wide range of facilities like range of options for accommodation, food delight, financial
services, airport facilities as well as transport and travel choices.
1.4 Principles of market segmentation and its uses in marketing planning at Thomas Cook Group
Marketers make selection of several strategies in order to promote their offerings. In this
relation strategy that can be used is in relation with market segmentation. It is referred to as the
division of the market into various sections and involves promotion of product and services by
adopting different techniques (Morgan and Ranchhod, 2010). Thomas Cook makes utilization of
this strategy and makes promotion of tour packages in different countries through various tools.
Segmentation of market can be done in following manner. Geographic: Under this the division of the market is done on the basis of geographic
division as well as political boundaries. Demographic: The preferences and choices of people are subjective by nature. Thus
marketing is carried out based upon the demography (Goeldner and Ritchie, 2006). In
this the division of market is done on the basis of age, income, occupation and gender.
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 Psychographic: It divides the market on the basis of factors such as social status, choices
as well as lifestyle. Thomas Cook need to consider such factors while making
determination of segment where it can make sales.
 Behavioral: Under this segmentation of the market is done based upon the behavioral
aspect of the individuals.
Taking the above factors into account the development of marketing strategies is done.
For example, marketing plan is designed in accordance with the geographical division. The plan
devised for different countries would vary. For instance, Egypt is blessed with ancient
monuments and old civilization whereas Maldives is enriched with scenic beauty that includes
lakes and coasts. The development of promotional strategy is done accordingly. In addition to
this there are certain places which serves the interest of particular group of people (Müri and
Sägesser, 2003). Egypt is the place that attracts researchers as they can save mysteries and
explore the monuments. Thomas Cook has developed differentiated marketing plan in order
attract large number of visitors.
TASK 2
2.1 Importance of strategic marketing planning for Thomas Cook
Strategic marketing planning is done by every organization to create and implement the
effective marketing strategies in order to achieve the various desired objective. Preparation of
Strategic marketing planning will assist the Thomas Cook in the following ways-
 Identify promotional opportunities: - Strategic marketing planning will aid the company
to identify and grab the various opportunities that are present in the business
environment. This in turn will help the company to move towards the growth rate.
 Able to identify the place where they expand: - Strategic marketing planning will assist
the Thomas Cook group to identify the area where they should expand or start its new
business. By conducting marketing planning company will be able to analyses the target
audience where they can expand its business.
 This strategic plan will aid the company to remove the unproductive initiatives in order to
reduce the cost of the company. At the same time it will help the Thomas Cook to focus
on the areas that are of highly importance.
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 Formation of strategic plan will assist the Thomas Cook to understand and collect the
information about the target market and customers. The information collected acts as a
base for the company to achieve its long term desired objective.
 Contour product development: - Strategic marketing planning will aid the company to
contour product development (Meneses and Telxeira, 2001). Plan prepared by the
Thomas Cook will assist them to undertake the factors into consideration than will help
the company to move towards the growing position.
 Able to satisfy its customers: - Thomas Cook will be able to satisfy its customers by
considering the strategic marketing plan. Formation of this plan will help the Thomas
Cook to find out want customers actually wants. In lieu of which company will be able to
satisfy its customers by providing them what they want.
 Better decision making: - by using the strategic marketing plan Thomas Cook will be able
to make better decision by analysis and understanding the market conditions. Analyses of
market conditions will assist the company to find out what the demand of the customers
are and what they actual want.
2.2 Relevance of marketing research and market information to managers in Thomas Cook
Group
Marketing research is done by almost every organization in order to collect various
information and to analyses the external market condition (McCabe, 2005). This research is also
done by the organization to prepare various strategies to achieve its desired objectives.
Marketing research and marketing information aid the managers of the Thomas Cook
Group to achieve the various things. Marketing research will help the managers to prepare
various strategies that in turn will assist him the achieve the desired goals. In addition to this
company will also be able to understand about the various schemes that are offered by the
competitors.
Marketing research will also help the Thomas Cook group to analyze and select the target
market and the target audience. This in turn will aid the company to prepare its various offers
and scheme that in turn can prove to be beneficial for the company.
Marketing research and market information collected by the manager will assist the
manager of Thomas Cook group to know the needs and requirement of the customers. After
collecting this information Thomas Cook will be able to offer the customers what they want and
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what are liked by them. Offering to the customers what they want will create a good brand image
in the mind of the customers.
Marketing research and marketing information collected will aid the manager of Thomas
Cook group to prepare its various marketing strategies (Marsh, 2013). This in turn will aid the
company to attract more and more customers towards the products and services offered by them.
Information collected by the company through marketing research will also help the manager of
Thomas Cook group to decide the price of the products (like rates of the tickets) in such a way
that it attract the customers towards the product offered by them.
2.3 Influence of marketing on society
Marketing will create awareness in the mind of every individual about the various products that
are available in the market. This in turn will assist the society to choose the one best product by
comparing it with the other products that are present in the market. Marketing will also assist the
society to choose the product that is affordable to them (Berman, 2011). Marketing will also aid
the society to know about the various features of the products. Marketing will also help the
company to create its brand image in the mind of the customers. Society will be able to know the
various offers and scheme that are offered by the company. Marketing will also aid the company
to find out the various places that are good for business, holiday or live.
TASK 3
3.1 Issues in product, price, place elements of marketing mix
Thomas Cook offers attractive as well as cost effective travel and tour packages to their
customers. As per the case scenario Thomas Cook makes plan for the summer holidays of 2016
to provide the remarkable experience their customers of tourists in Morocco and Egypt. In this,
principles of marketing mix such as product, price, place and promotion provide assistance to
Thomas Cook in framing the attractive tour packages for their customers. Marketing mix plays a
vital role in achieving success in the strategic business arena. Marketing mix of Thomas Cook is
enumerated below:
 Product: Thomas Cook offers travel packages to the wide group of customers who having
varied desires and expectations. By taking into consideration such aspect Thomas Cook
frame attractive tour package to attract different segment of customer's. Besides this, they
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also offer attractive destinations such as Morocco and Egypt which provide memorable
experience to them (Tsiotsou and Goldsmith, 2012). Thomas Cook faces problem in relation
to the identification of customer needs while they preparing the product.
 Price: It is another important which closely affect sales and profitability aspects of an
organization. Usually, customers are highly sensitive in relation to the price factor. Thus,
Thomas Cook has prepared different tour packages such as gold and silver premium by
taking into consideration the budget of customers.
 Place: Thomas Cook is primarily located in UK and having few branches in the other part of
world. On the basis of this aspect Thomas cook offers tour package or destinations to their
customer by locating their branches in the different parts of the world (Vrana and
Zafiropoulos, 2006). In addition to this, they also provide convenience to their customers by
offering the tour packages through the means of online.
 Promotion: Thomas cook undertakes marketing campaign to promote their attractive tour
packages and destinations. They make use of different marketing tools such as social media
marketing, viral marketing and to attract the existing and potential customers who have
different needs. Through this, Thomas Cook is able to make contribution in the attainment
of organizational goals and objectives.
3.2 Importance of service sector mix elements to travel sector
Service marketing mix also plays a vital role in achieving success in the travel and
tourism sector. Service marketing mix includes process, people and physical evidence. Process
consists of the ways through which Thomas Cook prepares the travel packages for their
customers. Thomas Cook undertakes research and development activity to identify the needs and
expectations of their customers. Through this, Thomas Cook is able to frame attractive tour
package for their customers. In addition to this, employees also play an important role in
attracting large number of customers. Tour operator, guide etc are the main personnel of an
organization who directly deal with the customers. Moreover, customer satisfaction is highly
dependent upon the service provided by the personnel. Thus, company needs to hire skilled and
efficient personnel to deliver quality services to their customers (Alexander, 2007). Along with
it, Physical evidence also having high level influence upon the decision making of customers.
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Thus, Thomas cook undertake all these elements while they make plan in relation to the serving
of customers.
3.3 Concept of total tourism product to an individual tourism business
Travel and tourism industry is one who works with the integration of the other industries.
Travel and tourism industry includes accommodation, food and beverage, financial services and
transport industry. Travel and tourism companies do work on an individual basis. They also
includes other industries and there by them by offer employment opportunities to them. Total
tourism product refers to the combination of service which Thomas Cook offers their customers.
They offer attractive destinations to their customers on the basis of their needs (Bitner and
Booms, 2002). In addition to this, they also make arrangement for their customer in relation to
accommodation as well as food and beverages. Along with it, they also make flights
arrangements for their customer. Besides this, they also offer sight seen services and guide who
make familiar their customers with the place which are visited by them. Thus, travel and tourism
industry offer the combination of services which is recognized as total tourism product.
TASK 4
4.1 Integrated nature and role of promotional mix
Promotional mix includes several elements that assist in making promotion of product
and services with the aim to make people aware about product and services. Further it also
attracts them in a significant manner. The role of promotional activity assists in providing
information to people in relation to products and services available with the firm. It is effective
in increasing the profitability and sales of the organization in an effective manner. The different
promotional mix elements involve: Advertising: Under this advertisement is provided by firm on several social media sites as
well as newspaper. This is with the aim to offer information regarding tour packages to
customers (Ferrell, 2012). This has huge impact on the sales of organization. Through
advertisement company can promote business and can develop unique image of brand in
the market. Thus satisfaction among target market can be ensured in an effective manner. Personal selling: Thomas Cook laid emphasis on personal selling of tour plans to wide
range of customers by developing personal relationship (Craig and Campbell, 2012).
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With this organization can make determination of need and preferences of customers.
Thus customized tour packages can be offered that would result in increasing the sales.
 Sales promotion: For the purpose of promoting products and services company provides
wide range of offers as well as discounts to clients. This results in improving business
sales in an effective manner.
4.2 Plan and justify integrated promotional campaign for Thomas Cook
Integrated promotional campaign developed by management of Thomas Cook in order to
promote summer 2016 holidays in Egypt and Morocco. This is as follows: Step 1: The Company has proper knowledge about the target market at the time of
launching the promotional campaign. Through this tool business can offer appropriate
information to the target market and can satisfy their requirements. Step 2: After making evaluation of target market Thomas Cook can adopt suitable
channel of advertising so that effective relationship can be build with the audience
(Crooks and et.al, 2011). Step 3: While making development of integrated plan there is greater requirement for the
firm to look upon promotional campaign so that travelers needs can be fulfilled. Step 4: Moreover there is need for the organization to engage suitable content in relation
with details of tour packages so that understanding can be developed among customers. Step 5: It is essential that the message provided possess proper format so that it can
ensure effectiveness and greater integrity (Dent, 011).
 Step 6: At the last stage team work is needed in order to integrate marketing campaign so
that desired outcomes can be achieved. By carrying out work in coordination in team
strengths can be developed and further weaknesses can be resolved in an effective
manner.
CONCLUSION
It can be concluded from the study that role of marketing in travel and tourism sector is
very crucial. With the assistance of this firm is able to attract large number of visitors in an
effective manner. Thomas Cook makes implementation of large number of marketing tool with
the aim to increase its sales and enhance awareness in the people. Along with this market
segmentation is done by the organization for the business of developing strategic plans as this
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would result in fulfilling the needs of target market. Further by delivering wide range of products
and services such as customized tour packages customer's needs and wants can be satisfied.
13

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