Analysis of Marketing Strategies in the Hospitality Industry

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MARKETING ESSENTIALS IN
TRAVEL AND TOURISM SECTOR

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
LO 1.............................................................................................................................................................2
P1 Explain the key roles and responsibilities of the marketing function within a selected hospitality
organization.............................................................................................................................................2
P2 Discuss how roles and responsibilities of marketing relate to the wider organizational context.......4
M1 Analyze the roles and responsibilities of marketing in the context of the marketing environment..5
M2 Analyse the significance of interrelationships between marketing and other functional units within
a selected hospitality organization...........................................................................................................6
LO 2.............................................................................................................................................................7
P3 Compare the ways in which different hospitality organizations apply the marketing mix to the
marketing planning process to achieve business objectives....................................................................7
M3 Evaluate different tactics applied by hospitality organisations to demonstrate how business
objectives are achieved............................................................................................................................9
LO 3...........................................................................................................................................................10
P4, M4 Produce a basic marketing plan for a hospitality organisation to meet marketing objectives
organisation............................................................................................................................................10
Conclusion.................................................................................................................................................13
References..................................................................................................................................................14

LIST OF TABLES
Table 1: Marketing mix of two organizations.............................................................................................7
Table 2: SWOT analysis............................................................................................................................10
Table 3: Pestle analysis..............................................................................................................................11

Introduction
The marketing is significant for every type of business whether it is travel and tourism organization or
any other. The marketing gives the competitive advantage to the business in the long run and increases
the customer base of the organization. The report will consider the key roles and responsibilities of
marketing function and its wider organizational context. The study will take the marketing mix of the
two organizations to meet the business objectives of the firms. Finally, the report will consider the basic
marketing plan of the organization to achieve the competitive edge.
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LO 1
P1 Explain the key roles and responsibilities of the marketing function within a selected hospitality
organization
Marketing function is termed as the business organization roles which supports in determining and
sourcing the potential products successfully and then accordingly supports in the advertising of the
products as well. In the business organization, these functions are very general and include market
survey, product planning, developing procedure, sales, finance, promotion, customer service and many
more. The marketing function includes various duties of business and these functions assist in
organization growth. The marketing function include strategy management, sales support system,
marketing survey, product development, distribution systems, financial team, human resource
department and many more (Noe et.al. 2017). These functions of marketing have various roles to
promote the business growth of tour operators like Travel Saga Cruises & Holidays.
The major responsibilities and roles of marketing functions had been mentioned and further there is
clear alignment of marketing function with other business function of the organization. The
interconnection among the marketing functions and other functions of the organization can be described
as; the functions of marketing are the business organization part and hence functional units and other
departments are aligned with one another. Travel Saga Cruises & Holidays can consider the marketing
functions which are required to backup with other functional departments of the business to perform
essentially. For example: the tour operator like Travel Saga Cruises & Holidays of UK if requires to plan
and execute the marketing plan then obviously they needs the support of organization finance
department, human resource department, production department and sales department.
Furthermore, if the tour operators like Travel Saga Cruises & Holidays is offering discounts on the big
quantity of purchase of holiday packages like free food offers in scheme, then the marketing department
requires interacting with production and sales team also (Bowie et.al. 2016). There is separate identity of
the marketing function but each function and department is aligned together for raising the organization
profits. The major marketing function is to raise the profits by raising the tour operator sales like Just go
holidays of UK. The participation of all the department of the tour operator’s organization is important
to meet the profits and raising sales. The financial department gives the suitable budget to the marketing
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team for planning, supervising and executing the marketing plan of just go holiday’s tour operators. The
production team will interact with the logistics segment to meet the products and services demand and
supply. Just go holiday’s tour operators human resource policies are made as per the sales, market trends
and customers targeting. Hence, all the business functions of the organization aligns with one another to
get the effective marketing plan for the tour operators like Travel Saga Cruises & Holidays and Just Go
Holiday’s.
Concept of marketing including current and future trends including overview of the marketing
process
The concept of marketing is to be considered by the tour operator’s like Saga Cruises & Holidays and
Just Go Holiday’s is divided into main five components that reflect the marketing core. For effective
marketing planning the current and future trends are shown in the concept of marketing for tour
operators:-
Figure 1: Marketing concept
(Source: Author, 2019)
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Production concept: It reflects that how customer perspectives towards the specific products offered in
good quantity but at affordable pricing. Thus, by concentrating on operational functions of the business
the rate of production shall be increased by the tour operators (Baker, 2016).
Selling concept: The goods that are greatly encouraged are tends to raise the buyer towards it. In respect
of assessing the mindset of the individual it is significant that high activities of promotions shall be
conducted.
Product concept: The customer takes the product that has high value on concern of money, quality and
creative approach. It reflects that the consumer can be kept by giving effective packages by the tour
operators for cruise or other coach that are supportive to the customers.
Marketing concept: It concentrates on the needs of the target customers for services and products
delivery (Kandampully et.al. 2015). Furthermore, high competition in the tour operators likes Saga
Cruises & Holidays and Just Go Holiday’s needs to offer suitable service and product value.
Societal marketing concept: This approach shows the customer’s needs and wants in the targeted
sector for tour operators in order to increase their own brand in contrast with the competitors.
P2 Discuss how roles and responsibilities of marketing relate to the wider organizational context
Marketing management is termed as the monitoring and execution of marketing procedure on several
marketing concepts. The role of marketing in the tour business is generally kept high. Large tour
operators like Saga Cruises & Holidays and Just Go Holiday’s are competing with the small tour
operators. Presently, international economy has shown the significant importance to the small tour
operator’s also and is giving the effective support in growth sustainability. Due to this, the organizations
sustainability is based on proper ethical marketing efforts aligned with financial functioning among
other functions in the structure. Competition has increased and use of the technology is making the
situation complex for the tour operators. Social media platform supports in capturing the customers
through their holiday or cruise packages of the tour operators which was not possible before (Rowley,
2016).
Marketing plays the significant role in the creating the link among the organizations and customers
offering in market. It offers the confidence for trying the newer products against the situation when the
product is offered without publicity. When the tour operator’s like Saga Cruises & Holidays and Just Go
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Holiday’s wants to earn the profits, the role of marketing is important for increasing the profits and
customer base. The function of marketing also supports in branding and involvement in activities of
public, advertisement and interaction with the customers by collection of feedback. The tour operators
always want to be on top in the mind of the customers but with that they also need market share
increment as well (Epstein, 2018). Due to this marketing is the focal point of developing the loyalty of
the customer and retention along with.
In the absence of marketing the tour operator like Saga Cruises & Holidays and Just Go Holiday’s the
brands will be illuminated and they will become lifeless also. The success of the firm is not only based
on funds placement but with that it also needs to develop the relationship with the travelers that are
the marketing function in wider context.
M1 Analyze the roles and responsibilities of marketing in the context of the marketing environment
The marketing roles in context of environment are elaborated below:-
Marketing strategies: In the tour operators business, the foremost role of the marketing manager is to
develop the marketing strategies. The needs of the customers are served through the various tour
packages in relation to holidays or cruise service or coach services. The balance is done among
objectives and market opportunities through developed marketing strategies.
Marketing environment monitoring: In the marketing environment, the role of marketing procedure is
supportive in new products identification. This development offers positive action for the products and
services development of tour operators mentioned (Serrat, 2017).
Marketing research: It is important to conduct the research to know about the price, products and
customers who purchases the tour packages of Saga Cruises & Holidays and Just Go Holiday’s. In order
to communicate the right information to the customers the research is also important.
Marketing information system: This offers the information related to the factors like planning and
implementation, product and marketing strategies controlling (Laudon and Laudon, 2016). For instance:
MIS supports the tour operators to reflect the information in relation to logistics on actual time basis that
supports the distribution department to work accordingly.
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Brand equity: Generally, the customers are intended for the brand which offers added value to the
services and products. Hence, marketing offers the image and develops the tour operators brand value in
the customer’s eyes. It is the process which is supportive in offering the more sales volume.
M2 Analyse the significance of interrelationships between marketing and other functional units within a
selected hospitality organization
The marketing functions are directly linked with other units of functional for business firms. It can be
described through the instance of finance department in link with the marketing department. The tour
operators marketing functions needs economic resources for execution, research, planning and
marketing strategies evaluation and planning in business firm which is offered by organization financial
department. The function of marketing does not operate without appropriate communication and
financial team sorting in the Saga Cruises & Holidays and Just Go Holiday’s. In the same manner,
marketing elements are aligned with the other organization departments. The correct information from
the production department is needed in relation to services and products of the tour operators to the
marketing department so that plan can be created (Wang and Miao, 2015).
The marketing operations are required to be interacted and supported by the other organization
departments. For instance: the policies of the HR shall be connected with the marketing team to raise the
sales figure and with consistent the production team shall share the information related to services and
products to develop correct marketing plan. Although in tour operators the role of inventory is not
required but if needed it shall also be aligned with the marketing function of the firm, otherwise it can
results into losses and blunder. Hence, the marketing function is connected with the other business
functions of Saga Cruises & Holidays and Just Go Holiday’s.
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LO 2
P3 Compare the ways in which different hospitality organizations apply the marketing mix to the
marketing planning process to achieve business objectives
Marketing mix is considered as the tool of marketing set that are being used by the organization for
meeting the business objectives. Thus, it can be taken as the combining factors that can be considered by
tour operators to influence the consumer so that they can buy the products (Festa et.al. 2016). The
mentioned below is the marketing mix of two hospitality organizations:-
Table 1: Marketing mix of two organizations
Marketing mix elements Thomas Cook TUI
Product This tour operator has pioneering
in mass tourism
commercialization. They
introduced the coupon series
which included stays and meals
accommodations. The
organization under Thomas
Group is Thomas Cook retail,
condor airlines, Thomas Cook
holiday division, Thomas Cook
airlines, Thomas Cook TV. The
organization has removed the
needs of carrying the various
cards of currency. The several
products of Thomas Cook are
domestic holiday, weekend
holiday, senior citizen holiday
and international holiday
(Thomas Cook Marketing Mix,
This organization sells its
products in five categories and
all has distinct product lines. The
products are London tourist sight
including London Panoramic,
Buckingham Palace and many
more. Outside London products
also traditional English pub,
Windsor castle etc. The traveler
will be received from the hotel at
the time specified to assure that
the traveler is there at the
departure time.
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2019).
Price The Thomas Cook packages are
offered at affordable pricing so
that they can stay conveniently
and competitive. For easy
managing of the foreign trips the
adoption of half way premium
pricing is taken to influence the
customers. At the off season, the
organization offers the better
discounts for meeting the
standards.
The prices of the firm are aligned
with the products of the
organization in comparison with
the competitors pricing. TUI
travel will necessarily meet the
high scale of economies in
contracting with suppliers
included in tours operational
side.
Place The organization has many
physical outlets and online stores
as well (Wu and Li, 2018).
It has 650 retail stores across the
UK to get the competitive
benefits.
Promotion Thomas Cook conducts
advertisement through
magazines, hoarding,
newspapers, internet, YouTube
and TV and also sponsors the
events to show brand visibility.
The promotions are done through
website, search engine
optimization, advertising, public
relations and brochure making.
People The organization necessarily
concentrates on customers and
employees. The workforce
involves the trained people and
has around 31000 employees or
more around the world.
The organization has
professionals staff and the firm is
also supportive in training and
development and gives
opportunities to gain the
learning.
Physical evidence It has 182000 hotels across the
nation and started its venture of
airline 1999. For catering
international travelers, the
The customers assess their
perspective dependent on the
opinion of the service offered
having the influence on firm.
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organization has brought the
forex mobile application and it
also has offices for face to face
interactions with customers.
The firm will objective to fill the
gap among expectations of
customer and firm customer
needs perceptions.
Processes There is various businesses
procedure that organization has.
Like acquisition of customer is
conducted through lead
generation by marketing (Thomas
Cook Marketing Mix, 2019). After
coming up of the enquiry,
customization is conducted
according to the needs. Further
processes are being performed.
The organization will assure that
time tables are placed in order to
eliminate delays on tours
running.
M3 Evaluate different tactics applied by hospitality organisations to demonstrate how business
objectives are achieved
The business firms with various culture of organization use the tactics to meet the respective objectives
of the business. The marketing mix of the organizations supports in meeting the objectives of the
business like Thomas Cook. But for meeting the business objectives the firm can even use the marketing
segmentation process tactic by taking several steps such as identify the target market, creation of
marketing segment, different segment evaluations, segments attractiveness and then the target market is
chosen (Moreo et.al. 2018). The organization can use positional strategy and implement it accordingly.
For segmentation, evaluation and feedback process is also done at the end which supports in meeting the
objectives of the tour operators like Thomas Cook and TUI.
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