Marketing in Travel and Tourism Sector: A Comprehensive Report

This report provides a detailed analysis of marketing principles and practices within the travel and tourism sector, using Thomas Cook as a case study. It begins with an introduction to core marketing concepts such as needs, wants, demands, value, customer satisfaction, and exchange processes, emphasizing their importance in the travel industry. The report then explores the impact of both micro and macro environmental factors on travel and tourism businesses and tourist destinations, including suppliers, competitors, economic conditions, political climates, social environments, legal regulations, and technological advancements. It delves into factors influencing customer motivation and demand, such as aesthetic appeal, cost, culture, and economic conditions. Furthermore, the report examines market segmentation principles, types, and their applications in marketing planning, including geographic, psychographic, demographic, and socio-cultural segmentation. The importance of strategic marketing planning is discussed, outlining the process and its significance. Key elements of the marketing mix are analyzed, including service sector mix elements, and the concept of a total tourism product. Finally, the report addresses the integrated nature and role of the promotion mix, offering insights into integrated promotion plans for business organizations and the industry as a whole.

MARKETING IN TRAVEL AND
TOURISM SECTOR

TABLE OF CONTENTS
INRODUCTION..............................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Core concept of marketing for travel and tourism sector......................................................3
1.2 Impact of marketing environment on individual travel and tourism business and tourist
destinations .................................................................................................................................4
1.3 Factors affecting customer motivation and demand in the travel and tourism sector...........5
1.4 Principe's of market segmentation and its uses in the market planning................................6
TASK 2............................................................................................................................................6
2.1 Importance of strategic marketing planning ........................................................................6
2.2 Relevance of market research and market information to the managers in travel and
tourism sector .............................................................................................................................7
2.3 Influence of marketing on society.........................................................................................7
TASK 3............................................................................................................................................8
3.1 Key issues of the different elements of the marketing mix...................................................8
3.2 Assessment of the importance of service sector mix elements to the travel sector..............9
3.3 The concept of the total tourism product to an individual tourism business......................10
TASK 4..........................................................................................................................................10
4.1 Integrated nature and role of promotion mix......................................................................10
4.2 Integrated promotion plan for business organization and industry.....................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INRODUCTION
Thomas cook it the world largest travel and tourism agency that have presence across the
globe. Marketing is an important part of the company management practices and by using same
firms earns a lot of revenue. Marketing activities involves performing practices related to the
market segmentation and sources of promotion. In the report, detail information is provided
about the core concepts of marketing. After that business environment and its impact on the firm
is also discussed in detail in the report. Apart from this, importance of the strategic marketing
planning is also discussed in the report. In relation to this process of strategic planning is also
described in detail. At the end of the report, promotion mix is explained and same for the
Thomas cook is described in detail.
TASK 1
1.1 Core concept of marketing for travel and tourism sector
According to Evans, Stonehouse and Campbell, (2012), Marketing can be defined as the
process of interacting and communicating with the customers with regard to products and
services. Core concepts of marketing are needs, wants and demands. Apart from this value,
customer satisfaction and the exchange process is another core concept of marketing. Firm needs
to perform well in all these areas. This is because success of marketing efforts is totally
dependent on these factors. Firm needs to make sure that its products are satisfying needs of the
customers. In this regard Thomas cook needs to prepare its product by keeping in mind factors
that affects people tour package selection decisions. While preparing a tour package firm also
need to focus on needs and demands of the people regarding tour packages. Needs of the people
may be to visit maximum tourist places at reasonable price. Hence, in such kind of cases Thomas
cook requires to identify the way by adopting which it can satisfy needs of the customers. Value
refers to the product capacity to satisfy needs of the customers (Morgan and Ranchhod, 2010). If
the value of the Thomas cooks product will be good then more and more people will be attracted
towards the firm services. In travel and tourism business there are numerous firms and it is
necessary to make sure that firm product will have good value proposition or USP. For this
Thomas cook can evaluate its product portfolio and can compare same with the competitors’
products. By doing this it will be able to identify the loopholes that remain in its product and on
time it will be in position to make prudent steps to alter its product portfolio. The last but core

concept of marketing is exchange. This concept states that both parties must have something that
they can give to others. Means that Thomas cook must not target all sort of people in its
advertisement program for advertisement. If it will do so then it will be able to draw attention of
the specific category of the people towards it s services and will also be able to create its distinct
image among the people (Moutinho, 2011). Thus, it can be said that firm need to apply all these
core concepts of marketing in proper manner in its business.
1.2 Impact of marketing environment on individual travel and tourism business and tourist
destinations
According to (Dolnicar, 2005), micro environment consists of factors in the company’s
immediate areas of operations which affect the performance and decision making.
According to (Middleton, Fyall, Morgan and Ranchhod, 2009), macro environment
consists of major external and uncontrollable factors which have an influence on the company’s
decision making.
Following are the impacts of marketing environment of travel and tourism business of
UK.
Micro environment Suppliers- These are those who act as intermediary between Thomas cook and general
public. Through agents people approach company for a specific destination tour. This
indicates that firm is heavily dependent on the suppliers for sale of its tour packages. So,
firm needs to maintain good relations with its suppliers in order to grow its business
continuous. Competitors- These are those who are challenging Thomas cook business in terms of
revenue and business growth. Firm need to monitor is competitors’ strategy every time in
order to bring itself in position to make changes in its strategy (Hall, Timothy and Duval,
2012). Hence, it can be said that this micro factor will play a decisive role in the company
success in the upcoming time period.
Macro environment Economic environment- Economic environment refers to the economic condition of an
economy in terms of GDP and inflation rate etc. Travel and tourism sector cover 10% of
the UK GDP and its economy are recovering from recession. Thus, in future travel and
tourism sector will certainly grow in the UK. So, it can be said that economic

environment will put positive impact on the individual travel and tourism business and
tourist destinations. Political environment- It refers to the political parties and there ideologies regarding
business. It also refers to the opposition parties’ ideologies regarding flourishing a
business. Current government of the UK is fully committed towards growth of the
business. Due to this reason it is expected that in future this sector will grow in the UK
due to support from the mentioned nation. This is confirmed from the share of the
relevant industry in the UK GDP. Social environment- It refers to the people beliefs, attitudes, customs and perceptions
that affect their purchase decisions. Country to country these factors gets changed and
due to this reason same business strategy cannot be adopted in all markets. In UK social
environment is in favor of travel and tourism business and this is confirmed from the high
inbound tourism in the UK. Legal environment- It refers to the rules and regulations that are related to the specific
nation and specific business domain. Thomas cook must follow all the rules and
regulations in order to make sure that none of the regulatory authority will be able to
impose penalty on its business (Evans, Stonehouse and Campbell, 2012). Filing of cases
by these authorities also tarnish image of the companies among the target customers.
Hence, firm need to work with due care in the foreign nation.
 Technological environment- It refers to the technology that is used by the companies in
their business practices. Thomas cook must develop its information system in order take
strategic decisions in proper manner. It must try to remain ahead of competitors in terms
of technology.
1.3 Factors affecting customer motivation and demand in the travel and tourism sector
There are many factors that affect customer motivation and demand in the travel and
tourism sector. In order to identify these factors it is necessary to identify the factors that compel
people to visit any specific place. These factors are aesthetic appearance of the specific place,
cost of visiting place, culture and historical monuments etc. These are the factors that are
motivating people to visit tourist place in domestic homeland and foreign nation. In a year many
people from UK visit India in order to view its aesthetic nature and culture etc. Apart from these
historical monuments like Taj mahal which is also 7th wonder of the world is also viewed by the

numerous tourists of the world in a year. Hence, it can be said that these are the factors that
affects customer motivation level to visit any tourist place (Xiang and Gretzel, 2010). Demand in
the travel and tourism sector is mainly affected by the country economic conditions. This is
because if nation economic condition is not good then unemployment and inflation rate get
increased. Due to this reason local people consumption power gets reduced and their demand for
travel and tourism get reduced. On other hand, due to increase in inflation rate cost of living get
increased. This makes travel in foreign nations dearer for the tourists. Hence, demand from
foreign people for travel and tourism fall (Crooks and et.al, 2011). Hence, it can be said that
economic conditions both at the domestic and international level affects people demand for the
travel and tourism sector.
1.4 Principe's of market segmentation and its uses in the market planning
Market segmentation refers to the dividing entire market in to various parts. As per the
market segmentation principle market must be divided in such a way that has potential to
accelerate growth of revenue for the firm. This means that firms must divide entire market in
such a way that they get maximum benefit of dividing market in to various sub parts. This
principle also states that in whatever way a business firm segment its market the final
segmentation must be viable in nature. Means that Thomas cook do market segmentation but it
must be durable in nature. It must not be happen that firm divides market in to some parts and
after some time period it again feel requirement to divide market in to sub parts (Buhalis and
Foerste, 2013). The targeting and product positioning strategies are entirely depending on the
market segmentation. With change in the market segment targeting and product positioning
tactics also need to be changed. Hence, it is necessary to make sure that market segmentation
done will remain stable and none of the changes in same will be required for long time period. It
is widely used in the marketing planning in terms of targeting and positioning strategy. On the
basis of market segmentation area is divided in to several parts and types of customers on the
basis the demographic features are also divided in to several segments. From market
segmentation target area or specific kind of customers having specific demographic features are
selected by the firms (Kannan, 2009). After targeting of the specific area or people suitable
product is selected suiting their requirements in terms of price and quality. The selected product
is positioned by using selected product USP. Hence, market segmentation is widely used for
market planning.

Different types of segmentation are as follows:
1. Geographic segmentation – In this type of segmentation, potential customers based on
location are grouped together.
2. Psycho-graphic segmentation – In this case, customers are grouped together on the
basis of their lives, priorities, opinions, their interests and their attitude.
3. Demographic segmentation – In case of demographic segmentation, customers are
grouped together on the basis of age, gender, occupation, income, educational level and
size of family.
4. Socio- culture segmentation – in this type of segmentation, customers are divided on
the basis of religion, social class, status and family lifestyle (Gooroochurn and
Sugiyarto, 2005).
TASK 2
2.1 Importance of strategic marketing planning
Strategic marketing planning refers to the way in which company creates, plan and
implement effective marketing strategy. There is an entire process for strategic marketing
planning. In order to understand the importance of the strategic marketing planning it is
necessary to understand its process. This process complete in the three stages and in first stage
by using all segmentation techniques entire market is divided in to several parts. After that in
second stage of marketing planning profile of all market segments is prepared. In the profile
revenue, market share and profitability potential is described. By evaluating all these three
parameters in case of all market segments best segment is selected for the firm in which it can
focus in order to grow business rapidly (Ashworth and Goodall, 2012). In the final stage on the
basis of market segmentation market strategy is formulated. Here importance of the market
segmentation comes in existence. It is market segmentation which is providing valuable inputs
for preparing a strategic planning. Without this input managers may form a market strategy in
wrong direction and organization may face huge loss. But due to market segmentation technique
manager get an idea about the point where it needs to pay due attention. On the basis of accurate
market segmentation sound strategic marketing plan is prepared and on the basis of same firm
achieve its goals and objectives (Mills and Law, 2013). Hence, it can be said by preparing a

strategic marketing planning organization goes in a perfect direction which is achievement of the
specific goal.
2.2 Relevance of market research and market information to the managers in travel and tourism
sector
Different types of marketing research are as follows:
 Casual research
 Descriptive research
 Exploratory Research
 Qualitative research
 Quantitative research
In today business world all strategic decisions are taken on the basis of market research
and information. Managers time to time conduct market research in order to make sure that they
always remain in touch with change in business environment. By conducting market research
managers comes to know about the consumer behavior of the people. With passage of time
consumer behavior of the people also gets changed and managers’ decisions are closely related
to the consumer behavior of the people (Bryman and Bell, 2015). It is through market research
managers come to know about people buying behavior (Molina, Gomez and Martín-Consuegra,
2010). Hence, it can be said that market research is relevant to the managers in travel and
tourism business. On the basis of market research market information is collected by the
managers. On the basis of market information they come to know about the trends in the market
and competitor move. Hence, on the basis of such information managers prepare their business
strategy.
2.3 Influence of marketing on society
Marketing greatly influence society in many ways. People thinking, life style gets
changed due to advertisement of product. In advertisement lots of things are shown like fashion
etc. people see these things on advertisement of the product and get impressed from same and
bring changes in their lifestyle. Many times in advertisement a product represent a status. People
catch that thing and in order to show their status they start using such kind of product. So, it can
be said that marketing greatly influence society. Marketing also put negative impact on the
people in many ways (Tsiotsou and Ratten, 2010). In advertisements many wrong things are

shown like material things are shown in advertisements which put a wrong impression on the
children. These children are the future of a nation. Hence, it can be said that marketing put a lot
of impact on society. In advertisements a very high lifestyle is shown and people try to imitate
lifestyle in their personal life. Even they have little money they imitate a lifestyle shown in the
advertisement. Due to this reason people start making extravagance. Hence, in this way
marketing negatively affects society. But this does not mean that marketing always negatively
affect society. It also has a positive impact on the society. Through marketing of product firms
comes to know about the new products that can bring changes in their lifestyle (Garín-Muñoz
and Pérez-Amaral, 2011). By adopting such changes people bring positive change in their
lifestyle. Hence, it can be said that marketing also positively affects society. It depends on the
people that in which way they view an advertisement.
TASK 3
3.1 Key issues of the different elements of the marketing mix
Tourism sector is expanding at a greater speed with the provision to serve the people to
stay outside their residence for the holiday purpose. Beside this, there are various key issues
which are related with the different elements of the marketing mix. To carry out the marketing it
is necessary to deal with the concern issues. There are basically three essential elements with
which the issues of tourism industry are related is discussed below: Product: It refers to the company products that are already in the market. In this section
their size and features are described in detail. This is the major element of the marketing
mix as it is essential to differentiate between the actual want of the customer with the
actual offering which is made by Thomas Cook. The customers should be providing with
the proper knowledge of the product features which may help them to make the
purchasing decision. This is beneficial as the customer will have the actual picture of the
product features (Lovelock, 2011). For instance: The summer 2016 holidays to Morocco
and Egypt is the accumulation of the intangible items such as services and other activities
that is included in the package. This also includes the tangible goods such as rooms, the
safari, etc. Price: It refers to the price of the product. It also indicates the pricing strategy that is
followed by the firm in order to sell its product. This is the essential element as it defines

the charges they are being made by Thomas Cook over the product which is offered by
them. In the tourism sector this element determines the supply and the demand of the
customer in relation to make the purchase of the product at the given price (Rodriguez,
2013). This sector generally consist of two cost rack rates which are displayed in the
promotional brochures along with the discount and other is the net price which is less
than the rack rates but include commission. The factors which hinder the pricing decision
are the excessive competition in the tourism sector. Place: Place refers to the locations from where company is selling its product. It also
reflects the distribution model that a company is following in order to sale its product. In
tourism sector the major issue related to place as customer requires convenience to access
the product. This to ascertain that the customer meet their requirement. But many a time
the distribution channel fails to deliver the appropriate information to the customer. In
order to deal with it they can select the best location to make the offering which is easily
accessible by the customers (Kannan, 2009). For instance: The summer 2016 holidays to
Morocco and Egypt information can be placed in form of brochure or through mails this
provide the easy access to the customers.
 Promotion: Promotion is one of the elements of marketing mix. It is related with
designing of techniques which are used for promoting the products and services among
the customers. It is considered important as it encourages the higher profits and sales
within the business. It refers to the channel of communication through which company is
selling its product. Thomas cook can use social media and traditional channel of
communication in order to sale its product. While advertising a product it strictly follows
a concept of integrated channel of communication (McDonald. and Wilson, 2011).
Hence, it can be said that firm is advertising its product in proper manner.
3.2 Assessment of the importance of service sector mix elements to the travel sector
The service sector consists of the most important and the beneficial element of the travel
sector. The marketing of the services have inter-related relation with the different elements that
are available in the tourism sector. People: They are the essential element for the tourism sector as the market is very
intensive because people are the most important elements which are focused majorly. It is
very essential to properly assess the requirement of the people as they play very

important role in determining the various aspects related to the tourism sector. People are
associated with different roles in the tourism sector and possess different skills and
knowledge to make the decision related to the services that are offered in the tourism
sector. Physical Evidence: In tourism sector the products which are offered to the customers in
form of packages are intangible (Cook and Marqua, 2014). It is important to assess all the
information as the client perceives the image in their mind before going to the
destination. Generally this element represents the environment in which the client is
offered with the packages. For instance: Thomas Cook ensures that the package they are
launching for the clients consist of the important factors which are ambiance, location
and the surroundings. This is important because this will help to meet with the perception
of customer regarding the destination.
 Process: In tourism, the strategies play a very important role to make the offering easier
so that the customers are easily convinced by them. The strategies are framed with the
help of the proper process which include effective planning, procedure and the best
quality of reviews. This provides the customer a value-based feedback to make the proper
decisions that are very important for business to grow (Cook and Marqua, 2014). For
instance: Thomas Cook offer the package for the summer 2016 holidays to Morocco and
Egypt as per the need of the clients to easily convince them.
3.3 The concept of the total tourism product to an individual tourism business
Tourism is the industry which is growing on the wider scale and many individuals are
adopting it in the form of business. It provides the combination of different products that are
being offered to the customers. It comprises of various destinations which provide travel
experiences to the clients. The concept of total tourism product is the group which of the
respective components and elements that meet the satisfaction level of the customer as per their
requirement (Hall, 2013). For instance: The summer 2016 holidays to Morocco and Egypt
package which is offered by Thomas Cook is the combination of the components that are offered
to the clients for attraction and acquisition of best experience to visit these places. They are
included in form of accommodation service, transportation services and other services.
The total tourism product to an individual tourism business reflects the experience of the
clients with the ample amount of benefits that are added in form of luxury and status. This help

the customer to buy the expectation in the form of benefits that are associated with the offering
which is made to them (Turner and et.al, 2012). The tourism industry involves better
opportunities to make the offering to the customers with the relaxing and renewed acquaintances.
TASK 4
4.1 Integrated nature and role of promotion mix
Definition of promotion mix
According to (Xiang and Gretzel, 2010), it is a specific combination of promotional
techniques which are used for one product or a family of products. It includes techniques such as
advertising, direct marketing, personal selling etc.
Three main characteristics of the promotion mix are as follows.
 The main characteristics of the promotion mix are that it communicates single
information to all target customers. Means that through integrated promotion mix single
information is communicates about the product in the market (Xiang and Pan, 2011).
Means that through this channel of communication same message is communicated
through all channels of communication to all target respondents.
 Message delivered through integrated promotion mix persuade customers and influence
their buying behavior. This happens because a same message is communicated through
all channels of communication. This put positive impact on the target customer’s. Hence,
effective use of promotion mix is necessary condition for the Thomas cook. Promotion efforts related to integrated promotion mix acts as a powerful tool of
communication and provide edge over competitors.
Role of promotion mix
Promotion mix plays a very important role in the company success. Every channel of
communication has some advantages and disadvantages. Thomas cook as per its requirements
can select appropriate channels of communication in its promotion mix. As per company
advertisement budget and effectiveness of channels of communication as well as suitability of
sources of communication best advertisement channels are selected for the promotion mix. In
order to prepare optimum promotion mix firm can determine some specific parameters that will
be considered for advertising a product (Goodall and Ashworth, 2013.). By following these