Marketing Essentials for Travel and Tourism: TUI's Strategic Plan

This report provides a comprehensive analysis of TUI's marketing strategies within the travel and tourism industry. It begins with an introduction to marketing principles and their significance, focusing on communication and value creation. The report then examines TUI's operations, highlighting its multinational presence and key role in the hospitality sector. Task 1 delves into the marketing approaches used by TUI, emphasizing the importance of adapting to market conditions and external factors like social media. Task 2 explores the marketing mix, comparing and applying the 7Ps to TUI's services, including product, price, place, promotion, people, process, and physical evidence. The evaluation of different tactics used by TUI to achieve business objectives is also included. Finally, Task 3 focuses on developing a basic marketing plan for TUI, outlining strategic objectives, and analyzing differentiation strategies. The report concludes with a summary of findings and references.

MARKETING
ESSENTIALS FOR
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT ......................................................................................................................1
TASK 2............................................................................................................................................1
P3. Comparison and application of marketing mix................................................................1
M3. Evaluate different tactics applied by organisations to achieve business objectives.......6
TASK 3............................................................................................................................................6
P4/M4. Develop a basic marketing plan for travel and tourism organisation........................6
D2. Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives...................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an important function in an organisation as it carry exchange of goods and
services. To conduct marketing, communication plays an important role because it guide people
to perform things in right manner by right people. It also include important and critical task
which is useful in creating value of product in front of customers (Aung, 2019). Market is a place
which is full of opportunities which is depends on the size and area of business. Duties of
marketing functions are interconnected with other functional units and also justify that why they
are important. This report is based on TUI, which is multinational travel and tourism company
incorporated in 1923 and situated in Berlin and Hannover. Company deals in hospitality industry
as it is one of the biggest travel company owing five European airlines. This assignment is also
cover comparison among the strategies which is adopted by TUI for their survival and
developing competition in market. Lastly, marketing plan is developed for TUI to achieve
specific goals and objectives.
1

TASK 1
Covered in PPT
TUI is the tour and travel company which deals in hospitality industry and to provide excellent
services, managers of company need to update themselves by determining the current market
2

conditions. To perform its marketing function company can use various approaches which are
appropriate for performing the marketing activities.
Travel and tourism business depends on the marketing functions to attract more and more
customers towards their offerings. For travel and tourism, marketing includes advertisement,
making promotional offers to attract new and existing customers.
Societal: It states that company need to put emphasis on the needs and demands of targeted
market to become their preference and also achieve competitive advantage over their
competitors.
3

Many factors are present which impacts the marketing strategies of TUI and also have influence
over the customers. These are external factors which impacts the whole industry and the
operations of business. The marketing strategies which TUI opt needs to be match with external
components. For example, in the marketplace of UK, social media and internet is the best source
of marketing because of increase in usage of internet.
4

5

Their interrelationship shows that if there is any requirement in marketing department
then it is fulfilled by HR department. In context of TUI, its marketing manager will
communicated regarding the requirements of candidate and HR manager will fulfil their
requirement and hire that candidate who have effective skills, knowledge and experience. So,
cooperation and coordination among these departments are necessary.
TUI is travel organisation which require huge marketing and advertisement to keep their
customers towards themselves for longer period of time and these actions are required to be
performed in huge manner by marketing team and involve huge investment. For this, many
actions are performed by finance department as if marketing department need money to perform
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its marketing activities then it becomes the duty of finance department to provide them suitable
budget to perform their activities and by this, marketing department develop a thorough report
according to the funds.
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TASK 2
P3. Comparison and application of marketing mix
Marketing mix defines the structure which is useful in setting many activities and
strategies. As company make use of these strategies in order to promote its brand name and
products in specific market. It is an important technique which improves the image of company
in terms of offerings its products to customers to sell them in an innovative way (Avila-Robinson
and Wakabayashi, 2018). For this, organisations always come up appropriate approaches and
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plans which keeps them in competition. In tradition era, 4P's are used to conduct marketing mix
but in modern time these P's are extended and become 7P's as marketing mix and its strategies
differs according to company because each and every organisation use their promotional
strategies to gain their position in market. It is the primary step which is useful in developing
marketing plan because it require lot of research and efforts to develop plan. It is an effective
tool because managers of TUI need this framework to update their current plans and strategies.
This can be understand by following table:
Basis Definition TUI Virgin Atlanta
Product Products are the
services which are
provided by company
for exchange of
something to their
respective customers
(Dodds and Jolliffe,
2016). These are
offered by companies
to achieve sustainable
competitive edge
which is the focal
point while developing
any strategy.
TUI provide its
services in five big
divisions and each
division provide
diversified product
lines. They also sell
different kinds of
products which guides
the customers to
choose product
according to their
requirement and
demand. It also
provide many features
which made it
different from its
competitors.
Company offer its
services to huge
segment by providing
high level customised
products which helps
the company to attain
competitive advantage.
In addition to this,
airline is concerned
with high digitisation.
Price Price is an amount
which is paid by
respective customers
for the exchange of
offerings and also
TUI used competitive
based pricing strategy
because the
competitors
information is easily
They use differential
pricing strategy
because their objective
is to provide their
services to different
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valuable for them
(Becker, 2016).
available due to their
existence in market
area. Currently,
company opt product
bundle pricing strategy
which reflects that
bundle of products are
sold out at cheap price
instead of sum of
single item.
Sometimes, they also
use optional product
strategy where set of
values are based on
product and also
charge according to
independent price for
offered services.
class of customers to
afford the cost of
tickets. The amount of
tickets are also varies
according to
destination and also
offer discounts at any
occasion or festival
time.
Place It defines a venue from
which the products are
offered to potential
customers. It is a
location by which the
manufactured products
are transferred to final
destination.
To place their products
TUI use two mediums
which are direct and
indirect promotional
mediums to sell their
products. They use
direct marketing
channels to directly
sell their products to
ultimate customers by
using online services.
Indirect, when
company use
Virgin Atlantic offer
its services in more
than 400 segments.
For this, they also tie
up with various airport
authorities to organise
their operations in
smooth manner. They
use online and offline
method to sell their
tickets.
10