Travel and Tourism Marketing: Assessment Two - Travel Air Report

This report presents a marketing analysis for Travel Air, a proposed UK budget airline. It identifies the target market as budget-conscious travelers and aims to establish Travel Air as a leading low-cost carrier. The report details the airline's pricing strategy, opting for a differential approach to maximize revenue, and outlines promotional strategies including social media campaigns and loyalty programs. Additionally, it critiques Ryanair, a current major player in the UK airline market, highlighting operational challenges and pricing tactics. The report references relevant academic sources to support its analysis of the aviation sector and marketing approaches.

Travel and Tourism Marketing: Assessment Two Starter
Activity.
Airline Name: Travel Air Airline Target Market/s: The target
market for this Travel Air will be people
who are seeking budget friendly/low cost
carrier services in the United Kingdom.
Airline Aim: Travel Air is aiming to
establish themselves as a one of Europe’s
best budget airline service provider.
Airline Sector: The aviation sector in the
United Kingdom is believed to be third
biggest network in the world. The
turnover of this sector is recorded at £60
billion and supports livelihood of more
than 1 million people (UK AVIATION
INDUSTRY SOCIO-ECONOMIC REPORT,
2020).
Product & Service Breakdown:
The major product which will be offered
by the company will be low cost (no
frills) airline services.
Pricing Strategy:
Travel Air will be opting for differential
pricing strategy. According to the views
presented by Yu, Yang, and Zhang (2019)

differential pricing focuses on adjusting
the price of services on the basis of
circumstances. lower pricing of the
products initially will be helpful in
attracting customers and as 70% of the
booking are confirmed then the airline
carrier can increase the price of the
same. This approach will be helpful in
availing higher revenue then fixed
pricing. In the contemporary business
environment this strategy will carry a
higher success rate as there a favourable
trend of tourism. Although the views
presented by Lancaster and Massingham
(2017) Stated that there are no fixed
profits when it comes to this approach to
pricing the products and services and
may business may lose some customers
who are not able to pay increased fare
prices on the carrier services.
References:
Yu, S., Yang, Z. and Zhang, W., 2019.
Differential pricing strategies of air

freight transport carriers in the spot
market. Journal of Air Transport
Management, 75, pp.9-15.
Lancaster, G. and Massingham, L., 2017.
Pricing strategies. In Essentials of
Marketing Management (pp. 136-161).
Routledge.
Promotional Strategy:
This refer to the approaches undertaken
by Travel Air to promote their products
and services.
1. Social Media campaign are one of
the cost effective promotional
approaches. The social media can be
used as a platform to inform
customers about the latest products
and services and can also assist in
maintaining an ideal relation with the
same.
2. Loyal Programs is another which
focuses on making sure that
customer uses services of this
Additional “P” Strategy:
People said to be one of the crucial
elements of the extended marketing mix
(Ali, 2016). The business will be hiring
competent pilots who carry a certain
level of experience in the industry. The
uniform for staff will be carefully
designed along with employing certain
tactics of training and development. One
of the crucial aspect which will be
considered in People is that customer
services. The employees will be trained in
such a manner that all the customer
grievances are responded and minimized
earliest possible.

company repeatedly (Vilkaitė-Vaitonė
and Papšienė, 2016). It focuses on
offering perks which acts as a
competitive advantage for the
business.
Reference
Vilkaitė-Vaitonė, N. and Papšienė, P.,
2016. Influence of customer loyalty
program on organizational performance:
A case of airline industry. Inžinerinė
ekonomika, pp.109-116.
Reference:
Ali, A., 2016. Exploring lean strategy for
service quality improvements in UK
based airline (Doctoral dissertation,
Brunel University London).
Critique a Current Airline:
Ryanair is one of the popular organisation presently operating in the market of
United Kingdom. The customers of this organisation have rated it to be one of the
efficient and value oriented carrier business provider in the country. Due to the
uncertainties in the market, this operator has shown tremendous decline in the
operation which influences its ability to carry out smooth operations (Ryanair profits
slide due to lower fares and Brexit uncertainty, 2019). However, the operations of
this carrier service provider have been criticised very often due to the operational
inability and its unethical tactics relating to pricing of their products.
Reference

Ryanair profits slide due to lower fares and Brexit uncertainty, 2019. [Online].
Available through: < https://www.theguardian.com/business/2019/may/20/ryanair-
profits-lower-fares-brexit-michael-oleary-bookings>.