Marketing in Travel and Tourism: Strategies for Thomas Cook's Success

This report delves into the marketing strategies within the travel and tourism sector, utilizing Thomas Cook as a case study. It begins by outlining core marketing concepts such as needs, wants, and demands, and then analyzes the impact of the marketing environment, including micro and macro factors, on Thomas Cook's business and tourist destinations. The report further explores factors influencing consumer motivation and demand, market segmentation principles, and strategic marketing planning using the SOSTAC model. It examines the importance of marketing research, the influence of marketing on society, and the elements of the marketing mix, including product, price, place, and promotion. Additionally, it addresses the service sector mix and the concept of the total tourism product. The report concludes with key findings, recommendations, and a promotional campaign analysis.

Marketing
in
travel and tourism
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Core concept of marketing ........................................................................................................3
1.2 Impact of marketing environment on Thomas Cook business and tourist destination .............4
1.3 Factors affecting consumer motivation and demand ................................................................5
1.4 Principles of market segmentation and its uses in marketing planning ....................................6
TASK 2 ................................................................................................................................................6
P 2.1 Importance of strategic marketing planning for Thomas Cook or Morocco/Egypt...............6
P 2.2 Relevance of marketing research and market information with reference to Thomas Cook. 8
P 2.3 The influence of marketing of Thomas Cook on society........................................................8
TASK 3 ................................................................................................................................................9
P 3.1 Issues related to the product, price and place elements of the marketing mix.......................9
P 3.2 Importance of service sector mix elements to the travel sector............................................10
P 3.3 Concept of the total tourism product to an individual tourism business..............................10
TASK 4...............................................................................................................................................11
4.1 Nature and role of the promotional mix...................................................................................11
4.2 Promotional campaign for a travel and tourism business or destination.................................12
CONCLUSION..................................................................................................................................12
Recommendations..............................................................................................................................13
References..........................................................................................................................................14
Bibliography.......................................................................................................................................16
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INTRODUCTION
Travel and tourism is one of the fastest growing sector in UK due to the increasing demands
and changing priorities of the people. This industry is contributing to the national growth and
development of UK and helps in improving its economic condition. Industry accomplish its goals
and objectives by using various marketing techniques and methods for attracting people towards
them (James, 2000).
Thomas cook is a UK based travel and tourism company which was formed on 19 June
2007. Thomas cook is taken into consideration in this file for explaining the marketing strategies of
travel and tourism sector. This study focuses on the summer holidays trip to Morocco and Egypt
which is being launched by Thomas Cook. It consists of core concepts and principles of marketing,
marketing with the help of management tools. Along with these, it includes marketing mix and
promotional mix. In the end, the whole report is summarised by using key findings and
recommendations.
TASK 1
1.1 Core concept of marketing
The core concepts of marketing are very definite, clear, relevant and acceptable to
understand concept of marketing process. The marketing basically involves five core concepts
which are described below:
Needs, wants and demands
11 Wants-
This is basically a desire which is selected from the needs. According to the wants of
customers like tours should be enjoyable, knowledgable and they have wonderful travelling
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experience. Thomas Cook tour operators provides various tours packages for both Egypt and
Morocco tours which fulfils wants of the customers (Dwyer and Forsyth, 2007).11 Needs
It is a wish or a desire which can be related to security, physiological and esteem etc. The
needs of the customers like while time of travelling they need proper accommodation, food and
transport facility. According to theses needs, Thomas cook provides good quality of food at proper
time of breakfast, lunch and dinner, for comfort for customers they use best transport facilities
according to the region like camel at dessert area etc. and they also provide best accommodation
facilities (Tsiotsou and Ratten, 2010).11 Demands
Demand comes when needs are arise and wants are crop up because it is situation in which
customers have both willing and ability to buy products. In tours customers demands like they
demands for special regional food and demand for security. Thomas Cook make their holiday
packages with insurance facility like car accident or adventures tour insurance etc.
Product
The products of Thomas Cook are the tour packages for the customers. The cited firm is
focus on summer holidays trip to both Morocco and Egypt. The company's products are according
to the demand of the customers.
Value
Value means capacity of service like holiday packages from which customers derives the
definite level of satisfaction. For example, if customer’s satisfaction is low it means holiday
packages for Egypt and Morocco are of low value to customers (Tsiotsou and Ratten, 2010).
Satisfaction
The term satisfaction cannot be measured or quantifies because it is a state of mind. If
services of Thomas cook fulfils the requirements and demand of custom then customers will be
more satisfied with the services of cited firm which are like holiday packages for Egypt and
Morocco (Morrison, 2006).11 Quality
Focus should be given by Thomas Cook to provide quality services to the holiday packages
planned for Egypt and Morocco. This would include includes attractive destinations, adventures
activities, special food, transport and accommodation services.
Exchange
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It is a basis of marketing because Thomas Cook creates the tours accoreding to the
customers demand and in market they are exchanged for money.
Transaction
The term transaction means the deal which generally takes place between parties like
Thomas Cook and customers of the exchange.
Relationship
It is all about making contact with the customers. It can be done through a phone call,
meeting, mails so as to attract them towards the planned holiday packages for Egypt and Morocco.
The company can also provide brochure which consist all detailed information related to travelling
(Business Marketing. 2016).
Market
It is a place where exchange of services is done. In this Thomas Cook and customers make
contact with each other.
1.2 Impact of marketing environment on Thomas Cook business and tourist destination
The marketing environment involves both micro and macro environment factors which gives
impact on both Thomas Cook business and destination places (Egypt and Morocco). The impact of
marketing environment is described below:
Micro environment Customers- According to needs and demand of customers, the business of Thomas Cook
will be effected. For example, customers wants 6 days tour rather than 4 days tour in which
all natural and attractive places should be cover. It gives impact like while making the
changes in tours of Egypt and Morocco, business of Thomas Cook is in profit or loss.
Suppliers- Suppliers of Thomas Cook provides accommodation services, transport services and
food facilities in holiday packages. The suppliers also gives impact on the business practices. For
example, when suppliers of Thomas Cook will provides best quality services and facilities to
customers who are visiting Egypt and Morocco than Thomas Cook will be able to gain trust of
customers which will also more customers towards them (Koning, 2014). Competitors- The competitors of Thomas Cook also affects the business practices of cited
firm because if competitor's are also providing same services to customers in low prices then
customers of Thomas Cook will switch to its competitors, so, cited firm have to also focus
on their competitors.
Macro environment Technological forces- With the help of technology, Thomas Cook can make their own
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website which will be beneficial for them. Through their website, customers can select and
book their holiday packages for Egypt and Morocco. They could provide online and digital
services to customers. Political forces - the government policies which are related to security also affects the
business of Thomas cook because for security purpose they offer personal health and car
accident insurance while travelling Egypt and morocco. Economic forces- The economic conditions like interest rates, bank rates etc. affects the
tourism demand and business of thomas cook. For example, due to high level of interest
rates customers number will be decreases (Sharpley, 2006).
 Demographic forces – The demographic forces like customer's buying behaviour, culture
and interest level also affects the business operations and practices of cited firm. For
example, changes in buying behaviour towards the tour packages of Thomas cook, then
company to adopt the changes and create the tours according the customers demand
(Tsiotsou and Ratten, 2010).
1.3 Factors affecting consumer motivation and demand
There are few factors which affects the consumer motivation and demand in the travel and
tourism. The factors are described below:
Cultural factor
This factor involves culture, sub culture and social class of the customers. The culture of
customer motives him to know other country's culture and subculture because his own culture
taught him the importance, value and preference of culture. The sub culture includes tradition,
custom and religion of that country. For example, Muslim people who have interest in their
customs, it will motive him to visit Hassan ll and Koutoubia mosque and worship.
Social factor
The social factors influence and motives customers to visit other places like Egypt and
Morocco. The social factors includes family, friends, reference groups, status and roles which gives
motivation to customers. For example, a few family members who visited Morocco will describe
the architecture, and natural places which attracts them. The description related to that place will
influence customer to personally visit that place to see the beauty of Morocco (Francesconi, 2011).
In the same way, the preferences of family include spouse, parents and children will also play a key
role to decide over the place to be visited.
Personal factor
The personal reasons and factors also motives customer to travel Morocco and Egypt. The
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personal reasons may includes business, economic situation, lifestyle or education. For example,
Customers may be having luxurious lifestyle and wants to know history and architecture about
pyramids then it will motive him to see it physically to understand its importance (Morrison, 2006).
Psychological factor
This factor involves motivation, perception, learning and attitudes. In this perception is
process through which customers interprets the information about place which he receive from
others. For example, he may be motivated by the beauty and tradition of Morocco. This will attract
and motive him to visit that place (Thomas Cook. 2016).
1.4 Principles of market segmentation and its uses in marketing planning
MARKET SEGMENTATION
Market segmentation is a marketing activity which categorize the broad market into small
segments which involves consumers of same traits.
DISCUSS THE BENEFITS OF SEGMENTATION FOR THOMAS COOK
Through segmentation, Thomas Cook can target customers according to age, lifestyle, country or
purpose. With the help of segmentation, firm can understand the need of customers and
according to that need they can plan tour packages of Egypt and Morocco. The marketing
activities will be create according to segmented customers to attract them. For example, firm
will plan summer holidays package which covers educational places like historic, museums etc.
for the students or people who are interested in this place (SOSTAC, 2015.). While considering
the age and gender factor age of 18-26, they mostly wants adventure and excitement, so, firm
can plan the tours by includes adventures activities like paragliding or mountaineering etc. The
firm will combine the marketing segmentation with marketing planning according to customers
(Evans, Stonehouse and Campbell, 2012).
TYPE OF SEGMENTATION AND WHICH ARE USING THOMAS COOK
The types of market segmentation are defined below:
Demographic segmentation according to family, age or size etc.
Psycho-graphic segmentation includes customer's lifestyle and interest etc.
Geographic segmentation according to geographic criteria like region, country etc.
Behavioural segmentation based on usage, behaviour and decision making process of customers
(Erskine and Meyer, 2012).
Thomas cook is considering the demographic and psychographic segmentation to target the
customers.
TASK 2
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P 2.1 Importance of strategic marketing planning for Thomas Cook or Morocco/Egypt.
MARKETING PLANNING
Marketing planning is a design process which includes information like product and its prices,
quality, competitors, target market, marketing mix and marketing budget of the company. This
planning process helps to produce the product according to customer's demand.
PROCESS OF STRATEGIC MARKETING PLANING WHICH IS SOSTAC MODEL
Strategic Marketing is a combination of marketing goals of an organisation and strategies
used for achieving them. As per the assistant marketing manager, I suggest SOSTAC model for
strategic marketing planning to Thomas Cook for the summer holiday from Morocco to Egypt
which is described below.
Situation Analysis: For analysing the current situation, Thomas Cook needs to apply Pestle and
Swot analysis which helps in identifying its current market position and economic condition
and results to decide appropriate investment in summer holidays of Morocco and Egypt
(Kimmm, 2012).
Objective Setting: Thomas Cook has to set objectives by analysing what it wants to achieve from
this trip. The basic objective of Thomas Cook is earning profit and to achieve this, it has to
develop effective marketing strategies.
Strategy Development: For achieving the objective, Thomas Cook has to form effective, creative
and innovative marketing strategies for inviting more customers in the summer holiday
packages (SOSTAC Planing. 2016).
Tactical Development: Company needs to do market surveys and researches for achieving
strategies which helps in getting information related to the demands and priorities of customers,
strategies of competitors etc.
Action: In this step, Thomas Cook implement its plan by signing agreements with the airlines and
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Illustration 1:
SOSTAC model
Source: (SOSTAC. 2015)

hotels which they have selected for their tour (Koning, 2014).
Control: In this Thomas Cook determines that whether the passengers are getting quality of services
from the hotels or not.
WHAT IS IMPORTANCE OF STRATEGIC MARKETING PLANING
 It helps in deciding the appropriate strategies for accomplishing the decided objectives.
 It leads to identify the roles and responsibilities of the staff members.
 Resources are allocated and utilised in appropriate manner (Law, 2000).
 Selection of quality hotels and flights for comfort of passengers
PROPOSE OF THE MARKETING PLANNING( 4 ELEMENTS)
The process of marketing planning includes four key elements which are discussed below:
 Goals- In the planning process, one or two goals of marketing planning are defined. For
example the goal of Thomas cook is to lead the market place.
 Objectives- The smart objectives are designed in the process like specific, measurable,
achievable, realistic and times specific. For example, objective of Thomas cook is to
increase customer size from 20k to 30k in one year (Tsiotsou and Ratten, 2010).
 Strategies- in process few strategies are defined which will help to achieve the objectives of
Thomas cook.
 Tactics- This is a action step of planning process. Which includes marketing tools to
promote the company's product.
P 2.2 Relevance of marketing research and market information with reference to Thomas Cook.
P2.2
DEFINE MARKETING RESEARCH
Marketing research is that process which joins customers, consumers and end users to the
researcher by the help of obtained information.
DISCUSS THE PROCESS OF MARKETING RESEARCH FOLLOW DODCAR MODEL
As per the Assistant Marketing Manager I like to suggest DODCAR model for marketing research
with respect to Thomas Cook and it is explained below. Define the research problem: Firstly, Thomas Cook needs to identify the problem which it
is facing during the strategy formation for summer holidays Objective setting: After identifying the problem, company needs to set objectives so that it
can solve the problem occurring during the planning. Design the research plan: In this, Thomas Cook designs the plan related to the research in
that particular field (Lordkipanidze, Brezet and Backman, 2005).
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 Collect the research data:Thomas Cook implement that plan and collect the information by
using various methods which includes observation, feedback forms, questionnaire, face to
face interviews and many more. Analyse the research data: In this step, firm analyse and evaluate the obtained information
by using marketing tools and techniques. Report the findings: And in end, the Thomas cook reports the obtained outcomes to the top
management and creates strategies for trip (Mehmetoglu and Norman, 2013).
WHY MARKETING RESEARCH IS IMPORTANT FOR THOMAS COOK?
By conducting marketing research, the company gets various information related to the
choices, demands and priorities of customers. It found that customers want quality services in
affordable price. By the obtained results, Thomas Cook can apply various things to its holiday
package such as “pay what you want to”, “unstoppable elders”, “sustainable environment”, etc.
Company can also offer travel with pet opportunities to the customers to attract people of diverse
fields (Morais and et. al., 2012).
P 2.3 The influence of marketing of Thomas Cook on society
HOW DOES MARKETING INFLUENCE THE SOCIETY?
With the help of marketing, society is gaining the information and knowledge about the
company's product. By using the marketing tools like promotion and advertising, society is able to
aware about products benefits, advantages and purpose of using the product (Morrison, 2006). The
promotional activities describes that particular product is designed by considering both needs and
requirements of society.
HOW MARKETING HELP Thomas Cook?
The marketing activities will aware, attract and influence them to purchase the company's product.
In the marketing activities of Thomas cook, company is promoting their Summer holiday
package of Morocco and Egypt. In which they will show beauty of both places. By watching
the beauty of both places, customers will influence to visit the places by using the cited firm
tour packages.
positive and negative impacts of marketing
The influence of marketing related to the trip of Thomas Cook on society is in both positive
and negative manner which is explained below.
Positive ways are as follows. Product Information: For informing people about the summer holidays, Thomas Cook used
its website and Television advertisement for providing all the information regarding the tour
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such as decided flights, timings, hotels, Morocco and Egypt spots, number of days and
nights to stay there, various facilities and services, etc. This is available in the minimum cost
to the customers which also saves the time by providing simple and easy access (Morrison,
2006). Better Standard of living: Thomas Cook is using high level of marketing which helps in
influencing the living standard of society. Information about the quality services of the
summer holidays forces people to buy tickets and enjoy their weekend. This trip aware them
about the various things which somewhere affects their living standard.
 Positive Environment: By advertising, Thomas cook helps in creating positive environment
of the society. As Morocco and Egypt trip leads to bring freshness by removing stress,
motivates people and brings lots of happiness to them. It helps people in bringing some
change in their life and to enjoy it which somewhere takes them away from their daily stress
and worries (Pechlaner, Dal Bò andVolgger, 2012).
Negative impacts are as follows. Misrepresentation: For attracting more people and earning more profit, Thomas Cook tries
to add some extra things to their tours which makes people to expect more. But this
misrepresentation leads to feel people as they are mistreated by the company.
 Unrealistic Expectations: During the booking of tickets, people starts expecting more from
the company. But if the quality and services are not according to the provided information
during the marketing then in such conditions it creates negative image of the firm on the
passengers (Dwyer and Forsyth, 2007).
TASK 3
P 3.1 Issues related to the product, price and place elements of the marketing mix
Product, price and place are the elements of marketing mix which plays important role in
launching of any product or service. While deciding these elements, companies face various issues
which results to wastage of time, increase in production cost, improper utilization of resources.
Similarly, Thomas Cook faces various problems during taking decisions related to the place, price
of the trip and services to be provided during the trip (Marketing Mix of tourism Industry Tourism
Essay. 2016).
PRODUCT
Services provided by the Thomas Cook are intangible which makes customers to think twice for
using them. Company faces problem in deciding the tourism products as they should be in the range
of decided capital. Services consider destination attractiveness, ease of destination, services,
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