Marketing Essentials: TUI's Strategies for Travel and Tourism Industry

This report provides a comprehensive analysis of TUI's marketing strategies within the travel and tourism industry. It begins with an introduction to marketing and its importance for business growth, followed by a comparison of TUI and Thomas Cook's marketing mixes, examining elements such as product, price, place, promotion, physical evidence, process, and people. The report then outlines a detailed marketing plan for TUI, including an executive summary, company overview, mission and vision statements, strategic objectives, SWOT analysis, sources of funding, and strategies based on the STP approach (Segmentation, Targeting, and Positioning). It further elaborates on the marketing mix for a new chatbot service, including product, price, place, promotion, physical evidence, process, and people, along with a budget and monitoring/controlling mechanisms. The report concludes by summarizing the key findings and emphasizing the crucial role of marketing in achieving organizational goals and increasing profitability within the travel and tourism sector.

Marketing Essentials
for
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
(Covered in PPT).........................................................................................................................1
PART 2 ...........................................................................................................................................1
Compare different ways in which company apply marketing mix to marketing planning
process.........................................................................................................................................1
Marketing plan for travel and tourism industry to meet with objectives....................................4
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Marketing is helpful for business organisation as it increase the sale of business
organisation and reach at globally. The main aim of business organisation is to increase the
production and profitability with the help of advertisement and other marketing resources. In
other words, this is a tool that contains understanding about market place, customer needs and
wants that helps to achieve organisation goals (Camilleri, 2018).This report will covered
strategic marketing plan for TUI retail and 7P's of marketing within TUI that helps to raise
profitability.
Part 1
(Covered in PPT)
PART 2
Compare different ways in which company apply marketing mix to marketing planning process
Marketing mix is the continuous process which consider elements and tactics in an
enterprises in order to sale numerous products and services. The main function is to understand
customer needs and make efforts to provide satisfaction to customers. The main target of TUI is
to focus on customer needs and provide them different types of services. In other words, this is a
tool which can be formulate by managers to compare with other organisation and maintain
profitability.
Comparison between TUI and Thomas cook group on the basis of marketing mix
Basis TUI Thomas cook group
Product This means tangible assets that is
offered by organisation for the
purpose of sale and profits. The
manager of entity analysis the market
and get demands of customers in
order to satisfying them. All major
decision of organisation regarding
product and its quality are taken by
managers that helps to sale and gain
This industry also deals in travel and
tourism that offers different types of
products and services such as series of
coupons, stay and meal
accommodations, holiday packages,
food, insurance, hotel services and car
hiring facility which influences
customers. Its unique products are
international holiday, domestic,
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profits. TUI is dealing in travel and
tourism industry and also provides
different types of services which
influences customers. It sells its
highly differentiated products which
is not possible for other organization.
Therefore, TUI products can be
consider as unique and maintain
quality of services. Its different
products includes warranties,
delivery, credit, help line service and
sale services (Marketing mix of TUI,
2018).
weekend and senior citizen holiday
(Marketing mix of Thomas cook group,
2018).
Price This means amount which is paid by
a person for purchasing product and
services. This is main factor which
influences customers. TUI is greatest
organisation that deals in travel and
tourism has adopted premium pricing
strategy due to customer loyalty and
big brand. Moreover, it keeps prices
according to season and give offer to
customer for maintaining
productivity.
It adopts reasonable pricing strategy
that helps to be relevant and
competitive. In today scenario, people
are still focuses on economic fare that
helps to save money for exclusive
years. In present time, it has adopted
premium pricing strategy in order to
attract right customers. And during off
season it provides discount to meet with
targets.
Place TUI offers it products and services at
several places such as websites and
offices which influences customers.
It is mostly dealing with products in
online that help to expand business at
different places. It operate strong
Thomas cook has lots of stores all over
the world in the form of physical and
online. In survey, it has been analysed
that 40% people showed their interest in
to dealing face to face services and rest
of the believes in online services that
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tour such as 1600 travel agencies and
leading online portals, six airlines
with 150 aircraft, 380 hotels which
influences customers.
helps to expand its business at different
places.
Promotion This is biggest organisation that
promotes its products by using
different sources like magazine,
newspapers, websites, E- newsletter,
advertisement and you tube. It
provide updating information
through these sources and increase
interest of customers (Della Corte
and et.al., 2015).
This organisation promotes its business
by showing its holiday packages under
various themes such as festive, group
tour, cruise special holiday, beach,
honey moon special, adventure holiday
etc. For promotion it launched ads in
newspaper, hoardings, TV, internet and
magazine. Moreover, it uses social
media profile which influences
customers. It sponsor big events to
increase brand visibility for increasing
sales.
Physical
evidence
TUI is selling its products in distinct
colour packaging that can be identify
easily for retail shelves. Moreover, it
has online websites that is user
friendly and allows customers to
view its products in better quality
images which is taken from various
angle. It also uses hoarding in
physical evidence process.
Thomas cook has more than 32000
hotel in residential country and 150000
hotel outside. It has started its airline
venture in 1999. It also deals in bags,
books, pens, caps, jackets etc that
shows physical presence of brand.
Additionally, its offices are the biggest
point where customer meet with
employees face to face.
Process It adopts online and systematically
process to avail products and services
globally. It assures that products are
always available to customers in case
of requirement. Hence, it adopts
It follows several business process such
as enquiry, documentation, visa
processes, currency exchange etc. This
company ensure all partner hotel,
logistics, airlines etc. to deliver the best
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online and manual system. customer experience.
People It is big brand that involves highly
skilled team professionally trained
employees, decision makers staff and
security personnel who helps to
increase production and profitability.
Being a service brand Thomas focuses
on customers as well as its employees.
The workforce involves trained staff
that helps to increase sales.
Marketing plan for travel and tourism industry to meet with objectives
Marketing plan is a blueprint and structure of entity that is used by marking manager to
perform operations effectively and increase profit margin. It involves different planning and
strategies for the purpose of expanding business at various level (Fatanti and Suyadnya, 2015).
The marketing plan for TUI is defined as:
Executive summary: TUI is dealing in travel and tourism sector that provides different
types of services to their clients. Its marketing team is very intelligent that planning to expand its
product line by launching new product and services. This plan involves SWOT analysis, STP
approach, budget and marketing mix.
Company overview: TUI is the UK's largest tour operator company. It has more than
10000 employees who are serving over 5.5 million customers each year. It has 62 aircraft
operating to over 88 destinations in 30 countries. Company is planning to expand business by
launching chatbots that will be helpful for customers as well as organisation to know the query of
customer and reply (Fountoulaki, Leue and Jung, 2015).
Mission and vision statement: The mission and vision statement of TUI says that to
focus on quality of travel services and increase customer satisfaction.
Strategic objectives: The core objectives of TUI is to produce differentiate product and
services that influences customers. Its main objective is to capture 30% market share by
launching chatbots services by 2020 (Hiebing and Cooper, 2003).
Situation analysis: The marketing team of TUI has analysis the situation and conduct
SWOT analysis which is as follows:
Strength Weaknesses Opportunities Threats
 TUI has a fleet  Stiff  To provide  Pricing
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of aircraft and
planes which is
flying more
than 150
destinations.
 Profits are
growing
continuously.
 It sale majority
of holidays
directly to
customers.
 More than
10000
employees are
working.
competition
from other
companies.
 Global tourism
that faces
cultural and
social issues.
 Changes in
currency
(SWOT
analysis of
TUI, 2018.
 ).
apps and
attractive
system to
booking
holidays.
 Operation in
emerging
market that
helps to
increase
number of
customers.
 Different and
customizable
holiday
available in
TUI.
environment
challenges due
to competitive
market.
 Foreign
exchange risk,
interest risk,
political and
economic
policies of
different
country.
Sources of fund: The sources of fund of TUI are given below:
 Internal sources: It contains fund from operations, issue of shares, profit and internal
assets (Mason, 2015).
 External sources: It contains long term capital, leasing and share capital that helps to
adopt new services in order to influence customers.
Strategy: The marketing manger team of TUI has formulated different strategies on the
basis of STP approach such as:
Segmentation: The marketing manger of TUI focused on different market segment such
as Middle class and above people that increase sales (Miranda, Rubio and Chamorro, 2015). Demographic: It target people within the age group of 20 to 50 years.
 Behavioural: It provides better class of services and by introducing chatbots it will be
easy for organisation to know what customer wants.
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Targeting: Such entity target age group of 20 and above to create interest and provide
different types of services at larger market.
Positioning: TUI offering premium pricing strategy in order to maintain high position at
market. It will use banners, you tube and hoarding to increase customers.
Marketing Mix: The marketing mix of TUI's new service like chatbots are as follows:
Product: The new product of TUI is valuable that can help customers to mention their
query on website's chatbots and get answer instantly.
Price: For this service the marketing manager of UTI has set less prices that can help
customer to place their question and get reply (Nguyen Chang and Simkin, 2014).
Place: This services is launching at London and around cities.
Promotion: TUI has adopted promotional activities such as you tube, websites,
magazine, hoarding and social media.
Physical evidence: All the queries can be mentioned through websites and manually.
Process: TUI will use online and physically delivery services that will influence
customers.
People: It has skilled and professional marketing manager that can help to run a business
and increase sales (Ray,ed., 2015).
Budget: The financial and marketing manager of TUI build a budget for launching this services.
This will consume very less cost due depend on internet service and manually system. The
budget statement of TUI's new service is as follow:
Initial investment 10000
Borrowing 5000
Retained earning 2000
Total 17000
Promotional expenses 8000
Internet or online service 2000
Total 10000
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Monitoring and controlling: The marketing team of TUI will monitor and control the business
activities. On the other side, the customer service department will read customer query and will
reply instantly that can influence customers and helps to increase productivity.
CONCLUSION
From the above report it can be concluded that marketing play a key role within
organisation that helps to increase business activities in market. Marketing mix is considered as
set of action and tactics that is used to formulate policies in order to increase productivity and
profitability. It provides information about new product and services which influences customers
to purchase products. The main target of marketing is to make planning and implement it for
achieving organisation goals.
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REFERENCE
Books and Journal
Camilleri, M. A., 2018. the tourism industry: An overview. In Travel marketing, tourism
economics and the airline product(pp. 3-27). Springer, Cham.
Della Corte and et.al., 2015. Customer satisfaction in tourist destination: The case of tourism
offer in the city of Naples. Journal of Investment and Management. 4(1-1). pp.39-50.
Fatanti, M. N. and Suyadnya, I. W., 2015. Beyond user gaze: How Instagram creates tourism
destination brand?. Procedia-Social and Behavioral Sciences. 211. pp.1089-1095.
Fountoulaki, P., Leue, M. C. and Jung, T., 2015. Distribution channels for travel and tourism:
The case of Crete. In Information and Communication Technologies in Tourism
2015(pp. 667-680). Springer, Cham.
Hiebing, R. G., and Cooper, S. W., 2003. The successful marketing plan: a disciplined and
comprehensive approach. New York: McGraw-Hill.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Miranda, F. J., Rubio, S. and Chamorro, A., 2015. The web as a marketing tool in the Spanish
foodservice industry: Evaluating the websites of Spain’s top restaurants. Journal of
Foodservice Business Research. 18(2). pp.146-162.
Nguyen, B., Chang, K. and Simkin, L., 2014. Customer engagement planning emerging from the
“individualist-collectivist”-framework: An empirical examination in China and UK.
Marketing Intelligence & Planning. 32(1). pp.41-65.
Ray, N. ed., 2015. Emerging innovative marketing strategies in the tourism industry. IGI Global.
Online
Marketing mix of Thomas cook group. 2018. [Online]. Available through:
<https://www.mbaskool.com/marketing-mix/services/17441-thomas-cook.html>
Marketing mix of TUI. 2018. [Online]. Available through:
<https://www.essay48.com/term-paper/14020-Tui-Marketing-Mix>
SWOT analysis of TUI. 2018. [Online]. Available through:
<https://www.mbaskool.com/brandguide/tourism-and-hospitality/13802-tui-
travel.html>
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