Marketing in Travel and Tourism: A Thomas Cook Case Study Report

This report delves into the core concepts of marketing within the travel and tourism sector, analyzing factors such as consumer behavior, market segmentation, and the impact of the marketing environment. Using Thomas Cook as a case study, the report examines the influence of micro and macro environmental factors, including political, legal, and technological aspects, on the company's operations and strategic planning. It explores consumer motivation, purchasing power, and group behavior, alongside the principles of market segmentation. Furthermore, the report discusses the importance of strategic marketing planning, marketing research, and the marketing mix, including product, price, place, and promotion. The analysis considers the challenges and opportunities in promoting travel packages, particularly for destinations like Morocco and Egypt, while addressing the importance of adapting marketing strategies to societal influences and evolving market conditions. The report concludes by emphasizing the integrated nature of the promotion mix and its critical role in the success of travel and tourism businesses, providing a comprehensive overview of marketing strategies in this dynamic industry.

MARKETING
IN
TRAVEL And TOURISM
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1.1 Discuss the core concept of marketing for travel and tourism sector ...................................3
1.2 The impact of marketing environment on functioning of Thomas Cook and tourist
destinations..................................................................................................................................6
1.3 Factors affecting consumer motivation and demand in travel and tourism sector. ..............7
1.4 Principles of market segmentation and it uses in marketing planning .................................8
TASK 2............................................................................................................................................9
2.1 Importance of strategic marketing planning for Thomas Cook ............................................9
2.2 Discussing the relevance of marketing research and marketing information to manager...10
2.3 Influence of marketing on society ......................................................................................11
TASK 3..........................................................................................................................................12
3.1 Discussing the issues in product, price and place elements of marketing mix....................12
3.2 Importance of service sector mix elements in travel and tourism sector.............................14
3.3 Applying the concept of total tourism product to individual tourism business ..................15
TASK 4..........................................................................................................................................16
4.1 The integrated nature and role of promotion mix ...............................................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19
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INTRODUCTION
Travel and tourism is the most growing sector of the economy. It contributes to GDP with
the 10 % of total GDP. Also, it is the highest growing segment as compared to automation,
health, financial service etc. Further, it also contributes in employment generation by providing 1
in 11 jobs for the world economy 9 (Economic impact of travel and tourism. 2015). Therefore, it
has the highest growth opportunities with the high possibility of enhancing total revenue and
foreign exchange earnings. However, all these factors have led to increase in competition for
various organizations in travel and tourism sector. In this report, various aspects of marketing in
travel and tourism will be studied in the context of provided case scenario. In this respect,
Thomas Cook, a leading travel agency of UK is intending to provide a holiday package of
summer 2016 to visit Morocco and Egypt. Therefore, the impact of marketing environment of
Egypt and Morocco on the business of Thomas Cook will be studied. Further, an attractive
promotion plan to draw attention of customers towards Thomas Cook summer 2016 holidays to
Morocco and Egypt will be designed.
TASK
1.1 Discuss the core concept of marketing for travel and tourism sector
Main rationale behind studying the core concept of marketing is that it helps in
understanding the needs and preferences of customers and offering products accordingly.
Further, the key core concepts of marketing are explained as follows:
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 Needs, wants and demands: This aspect states that needs, wants and desire vary from
customer to customer. To remain competitive and successful, it is important for business
enterprise to understand the needs and preferences of customers and design products
accordingly. Various needs of individual are physiological, safety, social, esteem and
self-actualization. Physiological needs refer to basic the needs of individual in terms of
food, shelter and clothing. Thereafter, safety needs are related to job, health security etc.
Considering this aspect, Thomas Cook is required to provide security to tourist while they
are traveling. Whereas, social refers to need of sense of belonging, friendship and love
from coworkers, friends and family. Further, esteem needs is regarded to the need of
recognition, achievement and respect from others (Carney, 2005). Thereafter, self-
actualization refers to the need of recognizing potential and ensuring self-growth etc.
Therefore, company can design its products and services as per the needs of customers.
For instance, individual requires to fulfill its social need by spending time with its close
friends. Therefore, Thomas Cook can design and offer attractive travel package for its
consumers. Further, wants refer to the requirement of specific service that customer is
willing to purchase. For instance, customers want economic travel services, than
company should provide budget packages to consumers. Further, demand refers to the
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Illustration 1: Core concept of Marketing
(Source:Marshall and Villiers, 2015)

circumstances where individual is ready to buy a product and has purchasing power
capacity (Hall and et. al., 2012). Therefore, there are customers who are willing to buy
luxurious travel services with the best quality service. Therefore, company can offer high
end services to such consumers.
 Marketing offer: Marketing offer regards to products and services that are offered by
company as per the needs and requirements of consumers with regards to quality,
quantity, price and demand (Wong and Song, 2012). Therefore, it involves different
products and services offered by company to the diversified range of consumers in order
to satisfy their needs and retain them in future. In this respect, Thomas Cook can design
custom made travel packages by considering the needs of consumers.
 Customer value and satisfaction: With this aspect, company ensures that customer gets
value and satisfaction in terms of product for price paid by him/her to acquire such
product or service. Further, value of services offered by Thomas Cook can be determined
on the basis of customer satisfaction.
 Exchange transactions and relationship: This aspect states that to acquire needed
product, customer is required to pay price charged by company. Thereafter, it is
important for consumer to exchange offerings for money or money; worth only. Further,
Thomas Cook can charge little higher price for offering custom made tour packages to
the consumers.
 Markets: It refers to place where company wants to offer its services. Further, market
comprises of respective consumers who are having specific needs and consenting to
exchange to satisfy such needs (Singh, 2008). Thomas cook provides its valuable
services in the domestic as well as international market with the aid of globalization.
Further, the potential threats and opportunities of target market must be analyzed
properly before making a decision of offering services. For instance, there is rise in
terrorism in Egypt and Morocco which is causing threat for tourist. Also, the attack on
Malaysia Jet Airline by terrorist is factor that can forbid customers to take tour package
of Egypt and Morocco. Thereafter, the Paris attack the risk of terrorist attack on
Morocco are increased. In addition to this, in 2011 there was attack of famous tourist
destination Marrakesh which states that it is not feasible for company to offer tour
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package for Morocco and Egypt. Therefore, Thomas Cook can look for other countries
where tourist can feel safe and secure like, Japan, Finland, Denmark etc which are ranked
as peaceful countries (Peaceful countries. 2014).
 Marketer and prospects: The term marketers refer to individual or company whose
main aim is to provide various goods and services to customers by persuading them to
make purchase. Thereafter, prospect refers to the potentiality of marketing opportunities.
Therefore, marketing depends upon the ability of marketers to influence customer’s
willing to make purchase (Czinkota, and et. al., 2009).
1.2 The impact of marketing environment on functioning of Thomas Cook and tourist
destinations.
Since, its inception that Thomas Cook is planning to offer new summer package to its
customer for visiting beautiful and serene countries like, Egypt and Morocco. Therefore, it is
important for company to study various factors such as macro and micro factors that impact on
the functioning of organization.
Micro environment: It refers to the impact of internal factors present within the organization.
Key micro elements that can influence the business of Thomas Cook are explained as follows:
 Customers: They play a crucial role in the success of organization as they consume
services offered by company and generate revenue (Carney, 2005). Major needs of
customers are to obtain information and get ethical product along with the availability of
fair services at reasonable price and with the best quality. These factors help in enhancing
the satisfaction level of customers. Therefore, Thomas Cook should consider the needs of
customers while offering services. Competitors: It refers to the major rivals of company and strategy adopted by them. To
ensure survival in this competitive business environment, it is important for Thomas
Cook to consider marketing actions and pricing policy adopted by rivals (Mehmetoglu,
and Normann, 2013). Organization should determine the extent of competition in Egypt
and Morocco and the local service provider that can directly impact the functioning of
company.
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Macro environment: It regards to factors outside the organization that can affect the working of
Thomas Cook.
 Political and legal factors: It refers to various rules, regulations and policies framed by
UK government and European Union that can impact the functioning of Thomas Cook in
Indian market. For instance, competition policy framed by EU puts its impact company to
indulge in competitive and healthy business practices only (Bharwani and Butt, 2012).
 Technology: It refers to the implication of technology, research and development on the
business of Thomas Cook. Company can use upgraded and latest technology to attract
new customers. For instance, organization can design attractive mobile application to
inform potential customer about Summer 2016 holiday package to Egypt and Morocco.
Further, with the use of technology, Thomas Cook can design e-brochures etc and publish
same on official website.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector.
The behavior of customers plays an important role in purchase decision and demand of
services of Thomas Cook in target market. By understanding the behavior of customer, company
can induce the prospective consumers to purchase the products and services offered by
organization. However, various factors motivate and affect consumer and thereby impact the
demand of services of Thomas Cook. They are as follows:
 Purchasing power of consumer: It refers to ability of customers to purchase the services
offered by company. Therefore, to ensure the sales of services it is important that service
should be under the purchasing capacity of customer. Considering this aspect, Thomas
Cook divides the customers on the basis of purchasing capacity to gain fruitful outcomes.
With this aspect, company offer budget, luxurious and custom made travel packages as
per the purchasing capacity on consumer (Moriarty, Jones and Rowley, 2008).
 Group behavior: It refers to impact of various groups like, family, friends etc on the
purchasing decisions of customers (Bluementritt, 2006). This factor plays an important
role on decision of booking of tour packages by family or group of friends etc.
 Personal preferences: It regards to personal likes, preferences, dislikes and values etc
that play an important role on the purchase made by customer. For instance, customer
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wants to travel Egypt and Morocco through cruise than it can select such services offered
by Thomas Cook.
 Economic conditions: It refers to purchasing decision made by customer in accordance
with economic condition of market (Marshall and Villiers, 2015). In this respect, increase
in disposable income of UK citizen in 2014-15 with £1,500 states that individual can
spend more on travel activities and more likely to take Summer 2016 tour.
1.4 Principles of market segmentation and it uses in marketing planning
Segmentation refers to division of entire market into small divisions as per their needs,
preference and interest and therefore framing and employing strategies to target prospective
customers. Therefore, segmentation help company to great extent to do market planning and
attain the overall marketing targets. It help in identifying the target customers and developing
strategies that will help in reaching the prospective customer and thereby fulfilling its unsatisfied
needs.
Types of market segmentation
 Geographic segmentation: This segmentation help company to divide market on the
basis of geographic criteria and target customers accordingly. It is widely used aspect by
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Illustration 2: Market segmentation
(Source:Pesonen, 2013)

travel and tourism organization. For instance, Thomas Cook can provide its new tour to
Egypt and Morocco primarily to UK based individuals (Serre and Chevalier, 2012).
 Behavioral segmentation: In this market is divided on the basis of behavior, attitude,
knowledge, loyalty status of customer towards services offered by company. With this
aspect, Thomas Cook can target its brand loyal customers first to take the new package.
 Psychographic segmentation: With this aspect, market is divided on the basis of life
style, interest and psychology etc of customers that influence them to make purchase. It
also relates to factor that stimulate individuals to expend in leisure activities
(Mehmetoglu and Normann, 2013). This aspect help company in reaching those
customers who are ready to buy luxurious travel services. Therefore, Thomas Cook offer
high end services through psychographic segmentation.
 Demographic segmentation: Here, market is divided on the basis of age, gender,
income, education etc. Therefore, company can reach different age groups, income lvel
customers effectively. For instance, company can offer adventure tour for young
individual of age 18-24 and also a walking tour to historical places for elderly people
above 40-60 (Matzler and Siller, 2003).
TASK 2
2.1 Importance of strategic marketing planning for Thomas Cook
Strategic Marketing Panning is a long term process done by the top management to
achieve the company's goals by creating effective marketing strategies. Thomas cook's key
marketing strategies are, to improve their sales and to expand the business globally (Czinkota,
and et. al., 2009). With the help of effective strategic marketing planning, company can attract
potential customers to purchase the new tour package; summer 2016. The strategic marketing
planning will assist business enterprise in identifying the internal competencies that will help in
overcoming weaknesses and attain competitive advantage in market.
SWOT Analysis
Strengths
Well established company
Weakness
Due to market fluctuations, there are long -
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Presence in more than 17 countries
Integrated company functioning in tourism
industry
Offering budget holidays to the customers
Global customer base
Brand recognition and loyalty
term debts
More competitors, less market share
Less promotional activities like advertising
Opportunities
Can increase online booking
Escalating demand globally
Positive financial turnaround
Influential marketing on online portals
Threats
Eurozone recession
Less profit market
Increasing competition in travel and tourism
Dominance of supplier like British Airways
Ltd., Virgin Alantic, Titan Airways etc.
2.2 Discussing the relevance of marketing research and marketing information to manager
With the aid of marketing research, Thomas Cook can identify the needs and preference
of customers and market how the services of company meet the requirements of consumers. The
marketing information further assist manager in targeting customers effectively (Serre and
Chevalier, 2012). Further, marketing research provide useful information that further assist in
meeting the consumers demand for travel services. Therefore, to sustain competition and survive
in long run it has become crucial for manager of Thomas Cook to indulge in marketing research.
The various benefit of marketing research are as follows:
 Market research is a customer centric approach: The marketing research focuses on
the unsatisfied needs and preference of customers residing in Morocco which can be
satisfied by company to enhance its brand loyalty. The main aim of marketing research is
to identify the needs, interest, opinions and demand of services offered by Thomas Cook
among customers (Bluementritt, 2006). This further help in building sound relationship
among manager and prospective customers.
 Ensure Concentration on key activities: The marketing research also help in
determining the loopholes of company. Therefore, manager can focus on those areas
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which needs improvement. Therefore, organization can make continuous modification in
its activities and enhance the satisfaction level of customers.
 Enhance the growth opportunities: The marketing research provide new direction to
manager. In addition to this aspect, identify different areas of growth and opportunities
that can be availed by company to enhance its proficiency. Further, manager can
determine areas that can generate maximum revenue for the brand (Bramwell and Lane,
2000).
 Future oriented: The marketing research help in identifying the future needs of
customers and growing demand of services. With this aspect, important changes can be
done by Thomas Cook and ensure that company meets the long term needs of customers.
Thereafter, innovation can be made by company considering upcoming needs of
customers. This further provides competitive advantage to brand in market.
 Determining the level of competition: Thomas Cook can research the market of
Morocco and determine the influence of local service provider and rival companies in
target market. Further, company can get knowledge about rivals product, target
customers, marketing strategies etc (Carney, 2005). This marketing information can be
used by manager in its marketing campaign and use as defensive approach to lead in
market over its rivals. Therefore, organization can stay ahead of its rivals using marketing
research and information.
2.3 Influence of marketing on society
Thomas Cook has started targeting youth as well as budget traveler in the society by their
luring offers which are, starting low cost carriers, widening the airline routes for their customers
leading to hike the online distribution of seats. Thomas Cook has started giving travel
experiences to their customers with dynamic packages and low cost air travel. For a budget
holidays, Thomas Cook had begun with Direct Debit payments for customers. Some of the others
services of Thomas Cook are, 24-hour hotel satisfaction in which consumers can be connected to
the staff for 24 hours a day. Thomas Cook is offering competitive prices to their customers as
compared to others competitors (Bharwani and Butt, 2012). Thomas Cook is offering trust,
consistency and assured experience to their customers. The relationship between customers and
travel company and good online content are the main reasons for the customers to choose the
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Thomas Cook. Thomas Cook is providing good customer service, fair competitive price and
financial security which every customer wants. Furthermore, organization can integrate its CSR
activities with its marketing activities to influence customers in positive manner. In this respect,
Thomas Cook is taking effective measures to reduce Co2 emissions by improving the fuel
efficiency of Global airlines. Further, organization has reduced the energy consumption by more
than 30 % in its retail and office segment (Sustainability report, 2015). Thereafter, Thomas Cook
raise money for charitable trust that offer benevolent services to children etc. Further, company
can highlight its CSR activities in its marketing campaign and earn respect and recognition from
the target society of Morocco and Tunisia.
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