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

This report delves into the realm of marketing within the travel and tourism sector, utilizing the Thomas Cook case study to illustrate key concepts and strategies. It begins by outlining core marketing principles, market segmentation, and the impact of the marketing environment, including micro and macro factors such as suppliers, customers, competitors, demographic, economic, and political forces. The report further explores factors influencing demand and customer motivation, encompassing cultural, social, personal, and psychological influences. It then examines the importance of a strategic marketing plan, employing the SOSTAC model to analyze situation, objectives, strategy, tactics, and actions. The role of market information and research is highlighted, along with the societal effects of marketing. The report also addresses issues in the marketing mix elements, the benefits of the service sector mix, and the concept of the total tourism product. Finally, the report discusses the role of the promotional mix, including a promotional campaign plan for Thomas Cook, providing a comprehensive overview 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 marketing concepts in travel and tourism.....................................................................1
1.2 Effect of marketing environment..........................................................................................2
1.3 Factors which affect demand and customer motivation........................................................4
1.4 Principles regarding market segmentation............................................................................5
TASK 2 ...........................................................................................................................................6
2.1 Importance of strategic marketing plan.................................................................................6
2.2 Relevance of market information and market research.........................................................7
2.3 Effect on society due to marketing........................................................................................8
TASK 3 ...........................................................................................................................................9
3.1 Issues in marketing mix elements.........................................................................................9
3.2 Benefit of service sector mix element.................................................................................10
3.3 Concept regarding total tourism product.............................................................................10
TASK 4..........................................................................................................................................11
4.1 Role of promotional mix.....................................................................................................11
4.2 Promotional campaign plan of Thomas Cook.....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is explained as a wide activity or a term which is very beneficial for each and
every sector who are making their operations in market. It is defined as an activity in which an
organisation make delivery of good quality of services and products to their consumers. This
activity will be supportive for a company in increasing sales as well as maximizing profits and
revenues. All various practices or activities in tourism and travel sector will help industry in
getting high amount of customer satisfaction (Biggs, 2011). In relation with all this information,
the mentioned research will help in understanding the major marketing concept in tourism and
travel sector. So as to achieve large competitive advantage, it is necessary for an organisation to
make adoption of different marketing policies so as to achieve success. This report is based on
the topic of marketing in travel and tourism which is based on the case study of Thomas Cook.
Thomas Cook is a British travel company which is being listed on London Stock
Exchange, it began its international travelling company in the year 1841 and have a good name
in the field of travel. Various practices are also there in activities of marketing which will help an
enterprise to obtain information regarding the terms and conditions of market and also in regards
with competitors of the particular sector. With the assistance of the marketing plan, Thomas
Cook will be able frame several effective strategies and techniques in order to develop edge on
competitors.
TASK 1
1.1 Core marketing concepts in travel and tourism
Thomas Cook is one of the largest operator in tourism industry in UK. The organisation
is doing very good in giving various services to its customers as per their needs and wants. Since
current times, the company is showing interest for the development of various cultural package
regarding the visit of several days to various places which will include Denmark, Amsterdam,
Porto and Lisbon. In this relation, various considerations and concepts will be explored in
relation to marketing in industrial sector of tourism and travel (Butler and Russell, 2010).
The centralized action regarding the success in future of travel industry is a major point
which are used to understand the different trends and also utilize positive impact while
minimizing negative one. Now a days markets are growing at very fast rate require strategic
management which is related with continuous and fast growth. Strategy can be defined as the
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term used to make determination of basic goals of an organisation for long term. This needs to be
done in regards with the course of action being chosen as well as according to the needs for
resource allocation so as to make implementation of the goals which are being set up.
In relation with the marketing of an organisation regarding new cultural package, the
company i.e. Thomas Cook should be able to gain opportunity outside from mass migration
between tourists who will be giving their contribution in leading tourism policy at very large
scale (Croce and Perri, 2010). The package should be fixed at low price amount which will helps
in generating amount of interest between tourists in market for such products category. The
package will also contain cheap price for transport as well as accommodation at tourists places
along with breakfast, dinner and lunch.
These all things can be done by accumulating different participants in tourism market
which is conducted with approach in relation with need of uniformity with respect to
conventional products. With mass migration concept, loyalty can be reflected in relation to
subject for making choice regarding concept.
1.2 Effect of marketing environment
The marketing environment of company is described as the different items as well as
factors which will affect the capability to maintain and construct relationship with customers of
the company (Dawson and et.al., 2010). The marketing environment of Thomas Cook will get
affected by macro and micro environmental factors, which can be discussed as follows:
Micro environment: The environment which is micro in nature is related with the
different factors which will affect the marketing in an organisation. It consists of intermediaries,
customers, public, suppliers and competitors.
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 Supplier: They are defined as the persons who fulfil demand of raw material in an
organisation. In respect to the Thomas Cook, suppliers will be tour guide and hotels. All
these will have significant effect on Morocco and Egypt trip. It is due to the satisfaction
of customers of Thomas Cook who are dependent on services of such individuals
(Denicolai, Cioccarelli and Zucchella, 2010). For instance, firm's supplier will not give
high service quality, then in such situations buyer's satisfaction will get affected in
negative way. This will also affect Thomas Cook brand image. Customers: The individuals who make use of services and goods are known as buyers.
The decision in regards with package type which should be adopted by an organisation is
dependent on buyers. For instance, buyers of the age 16-25 would like to do adventurous
tours. On the other hand, buyers from family group would like both scene and
adventurous tours. Thus, demands as well as needs of buyers will also cause significant
impact on Thomas Cook holiday trip.
 Competitors: They are the person who are there in market to give strong competition to
person who make production of same types of services and goods. The Egypt and
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Source 1: Micro Environment, 2017

Morocco holiday package of Thomas Cook will get affected by different strategies of
rivalries (Dawson and et.al., 2010).
Macro environment: It contains various factors that are in external environment but have
necessary impact on firm's operations. Demographic forces: It determines various factors of population like education level,
race, age and sex. These factors also make effect on holiday trip of Thomas Cook. For
instance, customers of age 10-30 are given trip offers regarding adventure, enjoyment,
business etc. For age 30-60 marketing will be on the basis of individual's nature. They
prefer family tours as well as business trips (Evans, Stonehouse and Campbell, 2012).
The company has offered such package for Egypt and Morocco tour for various age
groups. Economic factors: The country's economic condition also have significant effect on
pricing strategy of Egypt and Morocco trip. For instance, Thomas Cook manager have
made decision to set increased price for a trip. The such thing cannot get implemented
practically by an organisation if recession condition will effect various nations.
Therefore, in such situation, organisations need not to set low price for holiday.
 Political forces: These can be explained as the political conditions in a country which
make inclusion of different factors like tax rate and changes in interest rate. For e.g.
government of the country where mentioned company is operating has increased tax rate
on holiday service. Thus, by having as objective to cover mentioned cost, Thomas Cook
must increase price of Egypt and Morocco trip. If this thing will not get adopted then
mentioned firm will suffer loss (Thomas, Shaw and Page, 2011).
1.3 Factors which affect demand and customer motivation
There are various factors which are causing impact on demand and customer motivation. Cultural: It is defined as the set of wants, behaviour and values. It makes involvement of
different factors like religion as well as social class of buyers. The service which is
provided by Thomas Cook is dependent on social class of buyers. For instance, it has
been analysed that there are many Indian customers who are pure vegetarian. Thus
company has to make necessary arrangements in regards with such type of customer. Social: It gives information about the society where there are buyers. The customer's
demand in respect with services which are given are influenced with this factor. For
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instance, Egypt and Morocco trip will be dependent on various social factors like young
person, individuals and family. It influence buyer's demand also (Su, Hall and Ozanne,
2013). Personal: It defines the characteristics of an individual. For example, some person are
having lavishing lifestyle, than their style of selecting product will be dependent on this
factor. Buyer's behaviour also get influenced by the lifestyle which is in relation with
personal factor.
 Psychological: It is defined as the way with the help of which individual think. The
buyer's demand also get affected by motivation which is a psychological factor. It has
been analysed that, if several buyers will have motivation to have trip in Egypt and
Morocco, then demand in respect with mentioned holiday package will increase.
1.4 Principles regarding market segmentation
Market segmentation is defined as the process which is used to divide buyer's group in
various sub segments. Thus, it is defined that it will be of much importance of organisation like
Thomas Cook in regards with performing market segmentation in an appropriate manner. In a
particular segment which is being made, customers will share common degree of interest
regarding products or services which is provided (Spenceley, 2012). As a important principle
regarding market segmentation, it is necessary to identify and understand difference in various
categories. This is because of fact that for market segmentation purpose, market is divided into
three categories. These are homogeneous market, diffused and clustered market.
In homogeneous market, each customer and prospect same in number of various
important ways related with business, product and service. On the other side, clustered market
involve discern-able clusters of customer and prospects regarding needs, opinions or
characteristics in relation to business, product and service. In relation with mentioned holiday
package of Egypt and Morocco, customers of the company will get segmented in regards with
geographical and demographical features (Shinde, 2010). Generally, visitors and travellers who
are from UK with high income and high living style visit tourist destination places generally for
recreation and leisure. Segmentation is also being done on the basis of psychology factor, the
desired group will make choice for such trips only if there need will get satisfied.
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TASK 2
2.1 Importance of strategic marketing plan
Marketing planning is termed as the blue print that supports in giving direction to
marketing team of an organisation. As per the given situation, strategic marketing planning
process is being identified which is used by Thomas Cook with the objective to prepare tactical
plan in regards with Egypt and Morocco trip. Importance of the strategic planning can be
understand with the help of SOSTAC model. The detailed explanation regarding same will be
explained as follows: Situation: This helps in describing the current situation of the company. Marketing
manager is being appointed by company for making plan of trip to Egypt and Morocco.
The plan regarding marketing is necessary to gain customer's attention from this plan of
holiday. Objective: In regards with current situation, Thomas Cook's objective is to attract large
amount of buyers for the given trip (Ramukumba and et. al., 2012). Strategy: The defined objective of a company, can be achieved with the assistance of
means of marketing like Facebook, television, newspaper etc. Tactic: In this area, marketing means are precise by firm and selection is made regarding
such marketing means which will assist in attracting target customer in effective way. For
instance, Thomas Cook make decision to attract young individuals for the trip. Action: In this, marketing manager of a company will take action according to the
objectives which are being designed. For e.g., there will be a formation of marketing
team who will be doing practical execution of plan.
 Control: It is the last section of the model, in this marketing manager of the company
will have full control on the plan which has been framed by organisation. In this section
of the model, manager will make assessment of success in firm which means there will be
analysis that whether the plan of marketing is being achieved or not (Paget, Dimanche
and Mounet, 2010).
Besides this, for an organisation it is very essential that they must take support of process
of strategic planning. It is due to the mentioned process which supports in clarifying firm's
direction.
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2.2 Relevance of market information and market research
Market research and information is very important for tourism industry if they want to
attract various numbers of visitors towards destination. Because it provide information about the
choices and needs of visitors so that they can provide their best services. There is given some
importance of market research and information mentioned below:
 Identify ideal customers: All marketing activity of given company is based on the visitors
and customers. Without knowing ideal customer company could invest money and time
on those people who are not interested in your companies product.
 Identify objectives of the company: Goals and objectives of organisation is depend on the
market research and information. If talk about Thomas cook who are focus on the tourism
services in Morocco and Egypt. Before they set their objectives they have to find out
needs and wants of visitors.
 Create action plan: Market research and information is helps to manager to prepare a
action plan. This plan is includes goals and objectives of tourism enterprises.
 Understand marketplace: A manager can also identify market by analysing visitors
demands and trends and it will give the opportunity to manager assess services to suit the
changing market place (Mshenga and et.al., 2010).
 Focuses on important tactics: Marketing research and information is allow to manager to
focuses on important tactics. Strategy will allow to feel confident that actions knowing
they are strategic and focussed and also helps to making rushed decisions.
 Measure return on investment: Manager always focus on increasing his return on
investment. Market information is helps to identify accountability of your actions and
force review activities which are not generate good return on investment.
 Increasing sustainability of business: Every businessmen want to sustain for long time in
the market so manager can more and more revenue for fulfilment of this objective.
Marketing strategy and information is provide better analysis for knowing about visitors
needs so manager can acquire positive outcomes for his business (Morrison, A., Carlsen,
J. and Weber, 2010). In Thomas cook if he provide quality services in destinations than
he can earn more revenue and it will help to sustain for long term in the market.
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2.3 Effect on society due to marketing
Society is greatly affected by marketing. It is the process by which company is promote
its products to the society. For this purpose enterprises can use television commercials,
advertisements, websites or print media. There is some effects which are mention below: Provide information to customers: This is began company identify their target customer
and after that they start to inform and educate to society. Marketing provides chance to
learn about new products and services to the people of society so they can decide what
products and services want to purchase. Marketing is also provide practical information
to the people such as product launch date, phone numbers and web addresses. Managing consumer expectation: Information is provided to the society apart from that
marketing is also help to manage consumer expectation. Most clients are attract towards
brand name which is arises from brand loyalty (McGehee and et.al., 2010). Enterprises
can use information of the people to learn needs and wants of different customers.
Marketing can be used for aware different customers about changes in ownership and
merger og the company which affect the quality of goods and services delivered by
enterprises. Marketing is also helps to society to make appropriate decisions when they
buy something from market. Economic benefit: Marketing provide information of various products such as their
prices, uses and benefits so people are able to take economic buying decision. It includes
promoting products and target various customers for increasing its sales. Higher profit for
a company that arises marketing strategy transfer into implementation. When consumer
are more attract towards products than it affect overall economic growth of the country.
Clients are demand marketing of new and innovative products, open new branches and
also for future growth (McCormick, 2011).
 Modelling behaviour: marketing is also helps to identify different behaviours of various
customers so company can make advertisement in such a way that they are great
influence to customers. For this purpose market analyst use market data and identify their
relation to customer behaviour so they learn about how and why clients make decisions.
Examine behaviour is also useful for economic forecasting.
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TASK 3
3.1 Issues in marketing mix elements
Marketing mix is defined as the combination of place, promotion and price. Each and
every element has its own disadvantages and advantages and it have difference from company to
company. These kind of elements are important for an organisation in various aspects. Following
can be defined as the issues in marketing mix: Product: It is that thing which is being offered by a company to buyers. In this, two types
of issues are being faced by Thomas Cook. One is in relation with development of new
product. It contains various activities which are in relation with production of new
product in efficient manner. For the development of product, manager of Thomas Cook
have to follow 6 elements. It contains commercialization, development, screening,
generation and screening. This method is very necessary as it helps in providing
information stages where product of an organisation belongs (Marchant and Mottiar,
2011). Price: It is defined as the value which is being charged by organisation in return of
product and services delivery. The main issue which is faced in this section is the kind of
pricing tactics which can be used by firm. In this situation, two pricing tactics are there
which is used by Thomas Cook manager for holiday trip. They are promotional and
geographical pricing. Geographical pricing is the pricing tactic in which strategy of
pricing is changed by firm according to geographical location.
 Place: Another marketing mix element, which is an issue for a company is the place
factor. Place is defined as the area where services and products are being offered to the
desired customers of Thomas Cook. Here, mentioned company will address issue in
regards with intensity of different channels and length of the marketing channel etc. For
instance, mentioned company's manager has made decision to make use of direct mean in
regards with service distribution to customer (Lovelock, Lovelock and Normann, 2010).
Then in such type of condition, organisation will make selection of shortest means
regarding marketing channel which can be online selling.
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