Marketing Essentials for Travel and Tourism: A Comprehensive Report

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Marketing Essentials for Travel and Tourism
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Table of Contents
Introduction......................................................................................................................................3
LO1: Role of Marketing and interrelation.......................................................................................3
1.1. Marketing Definition............................................................................................................3
1.2. Development of marketing concepts....................................................................................3
1.3. Key roles and responsibilities of marketing functions for Topdeck.....................................4
1.4. How marketing functions of Topdeck relate to wider context for Topdeck.........................4
1.5. Interrelatedness of marketing with other business functions, along with key functions for
Topdeck.......................................................................................................................................5
LO2: Comparison based on 7Ps......................................................................................................5
2.1. How Topdeck and STA travel apply market mix to market planning process.....................5
2.2. Strategies used by Topdeck and STA travel to identify business objectives based on 7Ps..6
LO3: Strategic Marketing Plan of tourism product of Top deck.....................................................9
3.1. Company Overview with mission and vision.......................................................................9
3.2. 7Ps of Topdeck product in brief...........................................................................................9
3.3. Current Marketing Situational Analysis.............................................................................10
3.4. Marketing Objectives..........................................................................................................11
3.5. Marketing Strategy.............................................................................................................11
3.6. Segmentation, targeting and positioning (STP)..................................................................11
3.7. Tactics and Actions.............................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
The present report has been designed for assessing the various aspects of marketing operations
and activities performed by different travel and tourism organisations of United Kingdom. The
report will outline the role and responsibilities of the marketing functions and will analysed their
link with various functional units of Topdeck Company and STA travels, which are few of the
leading names of travel and tourism industry of UK. Thus, the application of the elements of the
marketing mix used by the organisations for marketing planning will also be analysed in the
report.
LO1: Role of Marketing and interrelation
1.1. Marketing Definition
According to Burns et al. (2014), Marketing has been defined by various authors in various
manners. However, the most common definition of marketing is that, it is the activity or process
undertaken by an organisation for promoting the sales and purchase of the services and products
offered by the organisation. It comprises of activities such as advertisement, sales and delivery of
the product or the services.
1.2. Development of marketing concepts
The marketing concept is developed in order to find out the best suitable products for the
customer rather than finding the best customers suitable for the products and services offered by
the organisation. In order to facilitate effective development of the marketing concept, Topdeck
will be required to emphasise on four essential factors, which are targeting market, assessing the
requirements or needs of the customers, incorporated market and profit rate. As per the opinion
of Bowie et al. (2016), a well-defined market is the initiation of the marketing concept. After
this, the expectations and requirements of the customers of Topdeck will be acquired assessed,
which will help the company in developing their product and services accordingly. Then the next
phase will be related to incorporating different kind of operations, activities, and organisation,
which may pose impact on the customers of the organisation. In this way, the customers of
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5MARKETING ESSENTIALS
Topdeck will be provided more satisfaction through fulfilment of their requirements and desires.
This in turn will enhance the productivity and profitability of the organisation. Marketing
concept comprise of production concept that is regarding the availability and affordability of the
product. Then the next marketing concept is product concept, which is regarding the features and
quality of the products. Then is the selling concept that is regarding the large-scale sales and
promotional activities (Malhotra et al. 2013). After this, the next concept is marketing concept,
which is regarding the delivery of desired product to the customers. The last concept is the
societal marketing concept, which is regarding delivery of value to the society and the customers.
1.3. Key roles and responsibilities of marketing functions for Topdeck
Malshe and Agarwal (2015) have stated that there are various roles and responsibilities of
marketing functions within the business concept of Topdeck Company. The primary marketing
functions for Topdeck comprise of market research, planning product, procedure of
development, promotional activities, sales, customer service and many more. These marketing
functions are responsible for the growth and prosperity of the Topdeck Company within its travel
and tourism sector. These marketing functions of Topdeck play substantial roles in various sector
of Topdeck.
Marketing functions helps the organisation in assessing the values of the products through
gaining the perception of the customers regarding the various services and products offered by
the organisation (Burns et al. 2014). The marketing functions are also responsible for promoting
the products and services offered by Topdeck. Along with this, it also helps in making
improvements or development in the product through acquiring customer requirements and
demands regarding the products of Topdeck Company. In order to grow and develop within the
travel and tourism market, Topdeck is required to introduce new products and services to the
customers for providing them with more varieties and options. This new product development is
also carried out through the help of marketing functions of Topdeck Company.
1.4. How marketing functions of Topdeck relate to wider context for Topdeck
The marketing functions of Topdeck Company are related with wider and broader concept of
Topdeck. As opined by Katsikeas et al. (2016), the marketing planning at Topdeck is carried out
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through implementing the roles and responsibilities of the marketing functions. The new
products for Topdeck Company are planned and developed through including the marketing
functions within the planning procedure. Marketing functions are useful in these plans for
carrying out several activities such as research in the target market of Topdeck. This will help in
gaining the status and data regarding the products and services offered by the rivals and the
requirement of the customers regarding the product offered by Topdeck Company. According to
Vellas, (2016), these functions of marketing helps Topdeck company in deciding the budget for
specific tasks and operations of the organisation such as sales, promotion through advertisement,
distribution of the services and products. In this way, marketing functions are also related to the
wider business context of Topdeck organisation.
1.5. Interrelatedness of marketing with other business functions, along with key functions
for Topdeck
According to Morgan (2012), marketing itself is one of the key functions of the organisation or
business. Therefore, it is obvious that the other functional units of the organisation will definitely
will be connected with the other functional units or department of Topdeck Company. For
example, if there is requirement of developing marketing plan or there is a requirement of
conducting market research, which is one functional department of the organisation, then there
will be definitely the need of finance department of the organisation. Along with the financial
functional unit of the Topdeck Company, there will be requirement of other functional units such
as human resource department, sales department and other such relevant functions units of the
organisation (Burns et al. 2014). In order to ensure proper accomplishment of the goals and
objectives of Topdeck organisation, there is a need of effective control and coordination between
the marketing functions and other functional department of Topdeck Company. Without
contribution of any of the organisational functional units of Topdeck, successful accomplishment
of the organisational goals and objectives in desired manner is impossible. This is how marketing
is interrelated with other business functions of Topdeck.
LO2: Comparison based on 7Ps
2.1. How Topdeck and STA travel apply market mix to market planning process
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Topdeck Travel is considered as a tour operator that offers trips for people on the age groups of
18-29. The tour operator works in varied areas from Europe to Asia, and at present it offers 330
diverse tours in about 65 nations (Topdeck Travel, 2019). STA travel whereas is claimed to be
the largest travel firm for the young people and the students in common. It is identified that the
STA Travel at present employs about 2000 people in 200 branches in 12 diverse nations, having
business partners and franchises in 48 nations. It is revealed that in case of Topdeck, it has those
hassle-free flights to the big comfortable coaches, which makes the journey adventurous. STA
travel whereas being the largest youth travel firm, it offers affordable adventures for humans
(Travel, 2019). The use of marketing mix could be applied to market planning process, if the
company’s planning for importance can be identified. In that phase, the goals of the company
have to be communicated well, so that it forms an intrinsic part of better management (The
Marketing Mix, 2019). One of the key benefit of identifying the marketing mix works on gaining
sources of competitive advantage, so that an organised relation could be formed to gain
commitment, and then set the strategic objectives for services and products. As opined by
Cleverism (2018), market planning also needs to be seen in terms of effective planning, as this
works on corporate level such that proper objectives in terms of resources should be identified
from the customer’s side. For both Topdeck Travel and STA travel, the marketing mix will first
apply a plan with the objectives, so that it will be evaluated and monitored, so that success can be
further measured to correct the situation (Business.qld.gov.au, 2017).
2.2. Strategies used by Topdeck and STA travel to identify business objectives based on 7Ps
7Ps Topdeck Travel STA travel
Product The product of Topdeck Travel includes
in terms of Hotel trip package that is fit
for the singles and couples that are
looking for extra bit comfort while the
explorer trip package is designed to
discover each region with a close knit of
like-minded travel mates. There are
other trip packages, which comprise of
STA Travel deals with flight, tours,
transport, and discount cards. Their best
deal is to sell the tourism packages, as it
creates affordable adventures for people
around the world. Presently, their best
deal in tourist packages is to explore the
Trek of Inca Trail, Japan, Down Under
Sea and Nepal’s mountains. One of the
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the Hostel Plus Trip with Camping trips
and Sailing. All of these trip packages
consist of better tourism product from
adventures to festivals, which customers
from age group 18-35 love to enjoy
(Topdeck Travel, 2019).
best deals as of 2019 is to explore the
best places in Queensland, Australia
and in Bali, Indonesia. It also provides
better estimates of hotels, based on the
location, guest capacity and the listing
type (Travel, 2019).
Price Their last minute deals are quite
popular, like the Florida Calling that is
priced at $1109 while Los Angeles
Coast to the Bay is priced from $2114.
Even, some of the other destinations are
priced like the Europe tour for 26 Days
in 6 Countries with a budget of $4147,
Rome for $2465 for 13 days (Topdeck
Travel, 2019).
STA in contrast to Topdeck has many
deals, like to Fly to Brisbane starts from
£599 with return trip. Some of the best
flight deals, for instance, fly from
Cardiff to Bangkok at just £399. There
is also the Blue Ticket for students with
return ticket starting from £359 (Travel,
2019). Some of the tourist packages
under the list includes, as the New
Zealand encompassed starting from
£2249.
Place The major places that Topdeck mainly
operates include the Europe, Asia,
Africa, Middle East, Australia and New
Zealand, and North America tours.
Europe and Australia tours are quite
common, as most of the customers are
attracted due to the excellent heritage
and Sea Coasts (Topdeck Travel, 2019).
They operate in regions of Asia,
Europe, Africa, Latin America,
Australasia, and North America. Some
of the popular nations where they have
existence include Australia and NZ,
USA, Vietnam, India and Philippines
(Travel, 2019).
Promotion The promotion of Topdeck is made with
the Blogs that are developed in their
website, which are attractive to read.
Even, the Topdeck App is made
attractive where customers can easily
STA travel promotes their iconic tour
packages through Ads, Social media,
banners. They promote packages from
their website where people gets
attracted, due to division of tour types
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create an account and surf it according
to their choices. All features from
Budget, map, Check in and explore
places are made (Topdeck Travel,
2019). Promotions are also made
through social media and Ads also.
from Island hopping and Sailing to the
Surf, dive and Snorkel. It also has the
active adventures to the wildlife safari
(Travel, 2019).
People Most of the customers here are
associated from Europe, mainly in the
parts of UK. They also have a crew
team that includes Trip leader, Chef and
driver. Other people from Asian and
Australian destinations are also attracted
due to the service they offer.
Most of the people here are from Asia,
Europe, Africa, Latin America,
Australasia, and North America, as
better flight destination places are
attracted by STA travel to the native
customers.
Process The service of Topdeck includes
tangible service where customer can
rely with their respective identities. The
interested guests could contact the host,
if any issues arise in their service (The
Marketing Mix, 2019).
Customer acquisition in case of STA
travel is done by generation by
marketing and Ads. This works with
proper Visa processes, currency
exchange and documentation
(Cleverism, 2018).
Physical
Evidence
As it started in 1973, the company has
developed its reputation to be a pioneer
of tourism service around the globe.
STA travel whereas has made its
application rated as 4/5 in Google Play.
Here the guests and the hosts offer
review for each other at varied
parameters.
Table 1: Marketing Mix
(Source: Learner)
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LO3: Strategic Marketing Plan of tourism product of Top deck
3.1. Company Overview with mission and vision
Topdeck is estimated as a tour operator giving tips for the people. Topdeck gives 330 several
tours in the 65 nations. Their main mission is to help the visitors as they experience good quality
service through the tour operator. Topdeck is a collective of explorers who are dedicated towards
the travel. In terms of vision, the company is to motivate young people through life-changing
travel and tourism (Topdeck Travel, 2019). In Top deck, their guides give lots of extra
information about the locations that visitors have liked to visit. Thus, the main target is to deliver
the high quality service and products as they enlarge their market in terms of hospitality industry.
3.2. 7Ps of Topdeck product in brief
Product- One of the packages in Topdeck is Grand kiwi. However, tourism marketing is the
combination of intangible and tangible elements (Stoddard et al., 2012). Grand kiwi package is
the mainly experienced by tourists in their destination. Topdeck offers a variety of tours for all
age groups.
Price- Pricing in tourism marketing is a difficult method. It includes the costs of other aspects
like Air travel, railways, bus, hotels, etc. All are contained in the tourism package. The price of
Grand kiwi is US $2379.15 and it varies on the seasonality. Besides, it is the most essential
aspect within the pricing strategy (Topdeck Travel, 2019).
Place- Several distribution strategies are chosen to reflect the entire objectives of company. In
Grand kiwi package, tourist can travel in Auckland. The distribution patters of this package are
sold in the company’s website (Buhalis and Amaranggana, 2013).
Promotion- Topdeck adopts innovative strategies that may enlarge demand by associating the
behaviour and lifestyle with the value-based ads. Promotion is effective aspect to tourism sector
while it supplemented by people and personal selling
Physical evidence- By Grand kiwi package, Topdeck gives its consumers with a detailed
brochure of the entire tour they have chosen and several things have to do in a holiday.
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People- It acts a most significant role in the tourism marketing. In terms of people, local people
are very significant regarding how they indulgence tourists (Sever et al., 2015). It comprises of
the travel agents, staff and guides. Topdeck group appoints 2000 workers through 300 offices
and caters to millions of tourists.
Process- the package serves as a differentiator from the competitors, as loyalty of consumers
optimises a better delivery process with the consistent service of tour operator.
3.3. Current Marketing Situational Analysis
For the internal environment, Topdeck delivers the packages in a systematic way, as 3 millions
of people are liked to travel in every year. The main quality of Topdeck contains their package
system, as their employees and agents are always ready to resolve the issues of tourists (Pappa,
2016). To control in the hospitality sector, Topdeck has to carry out the performance appraisals
through getting the feedback from customers.
To evaluate the external environment, Swot analysis is taken and it gives in a table form-
Strengths
Presence in the global business scenario
Trusted and secure channel for
facilitating the payments
Convenient site navigation and
attractive brand name
It gives service like domestic and
international tickets, holiday hotels and
packages
Weaknesses
General unwillingness within
consumers to utilise the internet for the
transactions such as booking the hotels
Consumers are not happy with the
service and products
Opportunities
Recently customers utilising the
traditional methods of booking
Give best travel packages in line with
the expectation of customers
Threats
Probable lack of co-ordination with the
tourism entitles
Recent competitors having the
substantial market share
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Newly emerging online opportunities
via portals
Table 2: SWOT analysis
(Source: Learner)
3.4. Marketing Objectives
To enlarge the profit percentage by 20% more in every quarter, as the efficient sales may
be obtained internationally
To capture the customers of Grand Kiwi by enlarging the packages of innovative
products and enlarging the service quality
To enlarge the market share of Topdeck by 30% in the year of 2019, as their distribution
network should be developed
3.5. Marketing Strategy
To recognise the marketing strategy of Top deck, the tour operator must include a different
portfolio, where they have attained the competitive edge over the competitors (Kotoua and Ilkan,
2017). Making a monthly email newsletter that may be effective aspect to keep in contact with
the clients. It focuses on the recent travel season. Besides, motivating the followers to share their
views on travels deals and packing tips will be effective.
3.6. Segmentation, targeting and positioning (STP)
Segmentation
In Top deck, Grand kiwi package has segmented with its worldwide attraction (Pike, 2016). It is
developed based on two processes: channel and business. Business segmentation has categorised
for the travel purposes and channel segment utilises to book the guest’s preferences.
Targeting
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