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MARKETING

IN

TRAVEL And TOURISM

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BYTABLE OF CONTENTS

INTRODUCTION ...........................................................................................................................3

TASK ..............................................................................................................................................3

1.1 Discuss the core concept of marketing for travel and tourism sector ...................................3

1.2 The impact of marketing environment on functioning of Thomas Cook and tourist

destinations. .................................................................................................................................6

1.3 Factors affecting consumer motivation and demand in travel and tourism sector. ..............7

1.4 Principles of market segmentation and it uses in marketing planning ..................................8

TASK 2 ............................................................................................................................................9

2.1 Importance of strategic marketing planning for Thomas Cook ............................................9

2.2 Discussing the relevance of marketing research and marketing information to manager ...10

2.3 Influence of marketing on society .......................................................................................11

TASK 3 ..........................................................................................................................................12

3.1 Discussing the issues in product, price and place elements of marketing mix ....................12

3.2 Importance of service sector mix elements in travel and tourism sector .............................14

3.3 Applying the concept of total tourism product to individual tourism business ..................15

TASK 4 ..........................................................................................................................................16

4.1 The integrated nature and role of promotion mix ...............................................................16

CONCLUSION .............................................................................................................................18

REFERENCES ..............................................................................................................................19



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INTRODUCTION

Travel and tourism is the most growing sector of the economy. It contributes to GDP with

the 10 % of total GDP. Also, it is the highest growing segment as compared to automation,

health, financial service etc. Further, it also contributes in employment generation by providing 1

in 11 jobs for the world economy 9 (Economic impact of travel and tourism. 2015). Therefore, it

has the highest growth opportunities with the high possibility of enhancing total revenue and

foreign exchange earnings. However, all these factors have led to increase in competition for

various organizations in travel and tourism sector. In this report, various aspects of marketing in

travel and tourism will be studied in the context of provided case scenario. In this respect,

Thomas Cook, a leading travel agency of UK is intending to provide a holiday package of

summer 2016 to visit Morocco and Egypt. Therefore, the impact of marketing environment of

Egypt and Morocco on the business of Thomas Cook will be studied. Further, an attractive

promotion plan to draw attention of customers towards Thomas Cook summer 2016 holidays to

Morocco and Egypt will be designed.

1.1 Discuss the core concept of marketing for travel and tourism sector

Main rationale behind studying the core concept of marketing is that it helps in

understanding the needs and preferences of customers and offering products accordingly.

Further, the key core concepts of marketing are explained as follows:



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Needs, wants and demands: This aspect states that needs, wants and desire vary from

customer to customer. To remain competitive and successful, it is important for business

enterprise to understand the needs and preferences of customers and design products

accordingly. Various needs of individual are physiological, safety, social, esteem and

self-actualization. Physiological needs refer to basic the needs of individual in terms of

food, shelter and clothing. Thereafter, safety needs are related to job, health security etc.

Considering this aspect, Thomas Cook is required to provide security to tourist while they

are traveling. Whereas, social refers to need of sense of belonging, friendship and love

from coworkers, friends and family. Further, esteem needs is regarded to the need of

recognition, achievement and respect from others (Carney, 2005). Thereafter, self-

actualization refers to the need of recognizing potential and ensuring self-growth etc.

Therefore, company can design its products and services as per the needs of customers.

For instance, individual requires to fulfill its social need by spending time with its close

friends. Therefore, Thomas Cook can design and offer attractive travel package for its

consumers. Further, wants refer to the requirement of specific service that customer is

Illustration 1: Core concept of Marketing

(Source:Marshall and Villiers, 2015)



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willing to purchase. For instance, customers want economic travel services, than

company should provide budget packages to consumers. Further, demand refers to the

circumstances where individual is ready to buy a product and has purchasing power

capacity (Hall and et. al., 2012). Therefore, there are customers who are willing to buy

luxurious travel services with the best quality service. Therefore, company can offer high

end services to such consumers.

Marketing offer: Marketing offer regards to products and services that are offered by

company as per the needs and requirements of consumers with regards to quality,

quantity, price and demand (Wong and Song, 2012). Therefore, it involves different

products and services offered by company to the diversified range of consumers in order

to satisfy their needs and retain them in future. In this respect, Thomas Cook can design

custom made travel packages by considering the needs of consumers.

Customer value and satisfaction: With this aspect, company ensures that customer gets

value and satisfaction in terms of product for price paid by him/her to acquire such

product or service. Further, value of services offered by Thomas Cook can be determined

on the basis of customer satisfaction.

Exchange transactions and relationship: This aspect states that to acquire needed

product, customer is required to pay price charged by company. Thereafter, it is

important for consumer to exchange offerings for money or money; worth only. Further,

Thomas Cook can charge little higher price for offering custom made tour packages to

the consumers.

Markets: It refers to place where company wants to offer its services. Further, market

comprises of respective consumers who are having specific needs and consenting to

exchange to satisfy such needs (Singh, 2008). Thomas cook provides its valuable

services in the domestic as well as international market with the aid of globalization.

Further, the potential threats and opportunities of target market must be analyzed

properly before making a decision of offering services. For instance, there is rise in



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terrorism in Egypt and Morocco which is causing threat for tourist. Also, the attack on

Malaysia Jet Airline by terrorist is factor that can forbid customers to take tour package

of Egypt and Morocco. Thereafter, the Paris attack the risk of terrorist attack on

Morocco are increased. In addition to this, in 2011 there was attack of famous tourist

destination Marrakesh which states that it is not feasible for company to offer tour

package for Morocco and Egypt. Therefore, Thomas Cook can look for other countries

where tourist can feel safe and secure like, Japan, Finland, Denmark etc which are ranked

as peaceful countries (Peaceful countries. 2014).

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Marketer and prospects: The term marketers refer to individual or company whose

main aim is to provide various goods and services to customers by persuading them to

make purchase. Thereafter, prospect refers to the potentiality of marketing opportunities.

Therefore, marketing depends upon the ability of marketers to influence customer’s

willing to make purchase (Czinkota, and et. al., 2009).

1.2 The impact of marketing environment on functioning of Thomas Cook and tourist

destinations.

Since, its inception that Thomas Cook is planning to offer new summer package to its

customer for visiting beautiful and serene countries like, Egypt and Morocco. Therefore, it is




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important for company to study various factors such as macro and micro factors that impact on

the functioning of organization.

Micro environment: It refers to the impact of internal factors present within the organization.

Key micro elements that can influence the business of Thomas Cook are explained as follows:

Customers: They play a crucial role in the success of organization as they consume

services offered by company and generate revenue (Carney, 2005). Major needs of

customers are to obtain information and get ethical product along with the availability of

fair services at reasonable price and with the best quality. These factors help in enhancing

the satisfaction level of customers. Therefore, Thomas Cook should consider the needs of

customers while offering services.

Competitors: It refers to the major rivals of company and strategy adopted by them. To

ensure survival in this competitive business environment, it is important for Thomas

Cook to consider marketing actions and pricing policy adopted by rivals (Mehmetoglu,

and Normann, 2013). Organization should determine the extent of competition in Egypt

and Morocco and the local service provider that can directly impact the functioning of

company.

Macro environment: It regards to factors outside the organization that can affect the working of

Thomas Cook.

Political and legal factors: It refers to various rules, regulations and policies framed by

UK government and European Union that can impact the functioning of Thomas Cook in

Indian market. For instance, competition policy framed by EU puts its impact company to

indulge in competitive and healthy business practices only (Bharwani and Butt, 2012).

Technology: It refers to the implication of technology, research and development on the

business of Thomas Cook. Company can use upgraded and latest technology to attract

new customers. For instance, organization can design attractive mobile application to

inform potential customer about Summer 2016 holiday package to Egypt and Morocco.



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Further, with the use of technology, Thomas Cook can design e-brochures etc and publish

same on official website.

1.3 Factors affecting consumer motivation and demand in travel and tourism sector.

The behavior of customers plays an important role in purchase decision and demand of

services of Thomas Cook in target market. By understanding the behavior of customer, company

can induce the prospective consumers to purchase the products and services offered by

organization. However, various factors motivate and affect consumer and thereby impact the

demand of services of Thomas Cook. They are as follows:

Purchasing power of consumer: It refers to ability of customers to purchase the services

offered by company. Therefore, to ensure the sales of services it is important that service

should be under the purchasing capacity of customer. Considering this aspect, Thomas

Cook divides the customers on the basis of purchasing capacity to gain fruitful outcomes.

With this aspect, company offer budget, luxurious and custom made travel packages as

per the purchasing capacity on consumer (Moriarty, Jones and Rowley, 2008).

Group behavior: It refers to impact of various groups like, family, friends etc on the

purchasing decisions of customers (Bluementritt, 2006). This factor plays an important

role on decision of booking of tour packages by family or group of friends etc.

Personal preferences: It regards to personal likes, preferences, dislikes and values etc

that play an important role on the purchase made by customer. For instance, customer

wants to travel Egypt and Morocco through cruise than it can select such services offered

by Thomas Cook.

Economic conditions: It refers to purchasing decision made by customer in accordance

with economic condition of market (Marshall and Villiers, 2015). In this respect, increase

in disposable income of UK citizen in 2014-15 with £1,500 states that individual can

spend more on travel activities and more likely to take Summer 2016 tour.



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1.4 Principles of market segmentation and it uses in marketing planning

Segmentation refers to division of entire market into small divisions as per their needs,

preference and interest and therefore framing and employing strategies to target prospective

customers. Therefore, segmentation help company to great extent to do market planning and

attain the overall marketing targets. It help in identifying the target customers and developing

strategies that will help in reaching the prospective customer and thereby fulfilling its unsatisfied

needs.


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Illustration 2: Market segmentation

(Source:Pesonen, 2013)




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Types of market segmentation

Geographic segmentation: This segmentation help company to divide market on the

basis of geographic criteria and target customers accordingly. It is widely used aspect by

travel and tourism organization. For instance, Thomas Cook can provide its new tour to

Egypt and Morocco primarily to UK based individuals (Serre and Chevalier, 2012).

Behavioral segmentation: In this market is divided on the basis of behavior, attitude,

knowledge, loyalty status of customer towards services offered by company. With this

aspect, Thomas Cook can target its brand loyal customers first to take the new package.

Psychographic segmentation: With this aspect, market is divided on the basis of life

style, interest and psychology etc of customers that influence them to make purchase. It

also relates to factor that stimulate individuals to expend in leisure activities

(Mehmetoglu and Normann, 2013). This aspect help company in reaching those

customers who are ready to buy luxurious travel services. Therefore, Thomas Cook offer

high end services through psychographic segmentation.

Demographic segmentation: Here, market is divided on the basis of age, gender,

income, education etc. Therefore, company can reach different age groups, income lvel

customers effectively. For instance, company can offer adventure tour for young

individual of age 18-24 and also a walking tour to historical places for elderly people

above 40-60 (Matzler and Siller, 2003).

2.1 Importance of strategic marketing planning for Thomas Cook

Strategic Marketing Panning is a long term process done by the top management to

achieve the company's goals by creating effective marketing strategies. Thomas cook's key

marketing strategies are, to improve their sales and to expand the business globally (Czinkota,

and et. al., 2009). With the help of effective strategic marketing planning, company can attract

potential customers to purchase the new tour package; summer 2016. The strategic marketing



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planning will assist business enterprise in identifying the internal competencies that will help in

overcoming weaknesses and attain competitive advantage in market.

2.2 Discussing the relevance of marketing research and marketing information to manager

With the aid of marketing research, Thomas Cook can identify the needs and preference

of customers and market how the services of company meet the requirements of consumers. The

marketing information further assist manager in targeting customers effectively (Serre and

Chevalier, 2012). Further, marketing research provide useful information that further assist in

meeting the consumers demand for travel services. Therefore, to sustain competition and survive

in long run it has become crucial for manager of Thomas Cook to indulge in marketing research.

The various benefit of marketing research are as follows:

Market research is a customer centric approach: The marketing research focuses on

the unsatisfied needs and preference of customers residing in Morocco which can be

satisfied by company to enhance its brand loyalty. The main aim of marketing research is

to identify the needs, interest, opinions and demand of services offered by Thomas Cook

among customers (Bluementritt, 2006). This further help in building sound relationship

among manager and prospective customers.

Ensure Concentration on key activities: The marketing research also help in

determining the loopholes of company. Therefore, manager can focus on those areas

which needs improvement. Therefore, organization can make continuous modification in

its activities and enhance the satisfaction level of customers.

Enhance the growth opportunities: The marketing research provide new direction to

manager. In addition to this aspect, identify different areas of growth and opportunities

that can be availed by company to enhance its proficiency. Further, manager can

determine areas that can generate maximum revenue for the brand (Bramwell and Lane,

2000).



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Future oriented: The marketing research help in identifying the future needs of

customers and growing demand of services. With this aspect, important changes can be

done by Thomas Cook and ensure that company meets the long term needs of customers.

Thereafter, innovation can be made by company considering upcoming needs of

customers. This further provides competitive advantage to brand in market.


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Determining the level of competition: Thomas Cook can research the market of

Morocco and determine the influence of local service provider and rival companies in

target market. Further, company can get knowledge about rivals product, target

customers, marketing strategies etc (Carney, 2005). This marketing information can be

used by manager in its marketing campaign and use as defensive approach to lead in

market over its rivals. Therefore, organization can stay ahead of its rivals using marketing

research and information.

2.3 Influence of marketing on society

Thomas Cook has started targeting youth as well as budget traveler in the society by their

luring offers which are, starting low cost carriers, widening the airline routes for their customers

leading to hike the online distribution of seats. Thomas Cook has started giving travel

experiences to their customers with dynamic packages and low cost air travel. For a budget

holidays, Thomas Cook had begun with Direct Debit payments for customers. Some of the others

services of Thomas Cook are, 24-hour hotel satisfaction in which consumers can be connected to

the staff for 24 hours a day. Thomas Cook is offering competitive prices to their customers as




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compared to others competitors (Bharwani and Butt, 2012). Thomas Cook is offering trust,

consistency and assured experience to their customers. The relationship between customers and

travel company and good online content are the main reasons for the customers to choose the

Thomas Cook. Thomas Cook is providing good customer service, fair competitive price and

financial security which every customer wants. Furthermore, organization can integrate its CSR

activities with its marketing activities to influence customers in positive manner. In this respect,

Thomas Cook is taking effective measures to reduce Co2 emissions by improving the fuel

efficiency of Global airlines. Further, organization has reduced the energy consumption by more

than 30 % in its retail and office segment (Sustainability report, 2015). Thereafter, Thomas Cook

raise money for charitable trust that offer benevolent services to children etc. Further, company

can highlight its CSR activities in its marketing campaign and earn respect and recognition from

the target society of Morocco and Tunisia.


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3.1 Discussing the issues in product, price and place elements of marketing mix

Illustration 3: CSR activities of Thomas Cook

(Source: Sustainability report, 2015.)



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The marketing mix refers to blend of key elements of business, product, price, place and

promotion to design influential marketing strategies and reach the target customers effectively.

Thomas Cook is planning to launch its summer 2016 holiday package to Morocco and Egypt, it

is important for company to pay more consideration to key elements of marketing. The

marketing mix will assist organization in allocating the limited resources and plan its marketing

activities in accordance with set standards. However, there are various issues that might be faced

by manager regarding key elements of marketing, in target market of Morocco and Egypt. The

description of which is as follows:

Product: It refers to various item offered by Thomas cook to meet the needs of

customers. Therefore, company offers intangible travel and tourism services to its

potential customers. Since, company is offering the new tour package, Summer 2016 to

Egypt and Morocco, it is feasible for marketing manager to consider the life cycle of

product offered by company. This will further help in determining the period of

prosperity where business can earn maximum revenue as well as period of decline where

profits are likely to fall (Wong and Song, 2012). The new package 2016 is in introductory

stage which states that company can charge more prices in beginning and earn maximum

revenue. However, similar type of product can be offered by competitor of company at

low cost and impact the demand of services of company.

Price: It states the amount the consumer is required to pay for the services offered by

Thomas Cook. In this respect, company can modify its price as per the life-cycle of

product. Further, company can use market skimming pricing policy which enable

company to charge maximum price during initial launch of services. However,

organization can reduce price over time (Singh, 2008). The major issue that company

can face in this respect is that many of customers may not purchase the high priced tour

package offered by company. Further, there are low cost service providers in Morocco

and Egypt that can impact the functioning of enterprise.



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Place: It refers to area where services are offered by company. It also consider the

location of office of company. Further, Thomas Cook can develop its office in central

locations like, railway station, airports etc to ensure convenience to customers Thereafter,

Egypt and Morocco are facing constant threat of terrorist attacks etc. This major issue

faced by company as tourist are frightened to take tour packages. The tourist don't feel

safe and secured in Egypt after the incidence, in which troupe of Mexican tourist were

attacked and killed in Western Desert from a misunderstanding that they are militants.

Further, terrorist attack on Metro jet flight in November, 2015 at Egypt is also burning

topic and threatening factor that is likely to affect the demand of Summer 2016 tour

package (Tourism in Egypt, 2015).


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3.2 Importance of service sector mix elements in travel and tourism sector

The service sector mix elements regards to assemblage of various elements of service

marketing that assist Thomas Cook to communicate its brand image and message to target

consumers. Further, service marketing of Thomas Cook is interactive marketing which means the

company do modification in its services after determining the preference and needs of customers.

Thereafter, constant improvement is done in the quality of services to maintain the brand image

in different market. The service sector mix elements help organization to provide effective

services (McCabe, 2010). To ensure success of marketing campaign and increase the sales of

new tour package , Summer 2016 to Morocco and Egypt, company can take assistance of

additional elements of service mix.




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People: Thomas Cook can give proper training and development to its employees so they

provide best services to customers. The training will help in enhancing the

communication skills of front line employees so they can give proper information to

customers willing to avail services of company. By enhancing the skills of people

company can improve the quality of its services.

Packaging: It regards to manner in which services are presented to consumers. In this

respect, Thomas Cook can include all the essential services and ensure pre planning of

conveyance, food and accommodation (Swarbrooke and Horner, 2012). To communicate

the nature of services that company is intending to offer its customers, marketing

manager can take help of e-brochures having attractive pictures of famous places of

Egypt and Morocco.

Partnership: Company can enter into partnership agreements with local and renowned

service providers of Egypt and Morocco like, hotels, transportation etc to provide best

quality services in its tour package (Morrison, 2013) . With this aspect, company can also

learn about the local culture etc and on that basis promotional coverage can be enhanced.

Programming: It refers to duration and order of marketing activities. The various

marketing activities should be prearranged so they do not overlap the other marketing

actions.

3.3 Applying the concept of total tourism product to individual tourism business

The total tourism product refers to combination of various services offered by Thomas

Cook to prospective customers to enhance their experience. Broadly, there are two types of tour

package offered by company, specific and total level. With the aid of specific level services,

company offer distinct service like, sight seeing only. Further, the total tourism product help

company in providing entire tour experience to customer from the start of journey to the end. In

this respect, company book airline tickets (both departure and return), accommodation, resorts,



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leisure activities like, Spa, theme park etc. as per the specifications of customers. Therefore,

company may buy different service from reputed suppliers to offer best and qualitative services

that will maximize the customers satisfaction. Total tourism product help company in providing

best service at affordable cost within the comfort zone to customers.

Thomas cook can use various elements of promotion mix to boost the sales of new travel

package, Summer 2016. The description of these elements as follows:

Advertising: It help in brand recognition and brand building which results into increased

sales. The organization can advertise the new tour package on television, radio,

newspapers and magazines etc. Thomas Cook is launching TV ads in cinemas to attract

more customers. Company is using a tag line, leave it to us you are on holiday.

Public relation: Thomas Cook can use its positive relation with media to enhance its

goodwill in target market of Egypt and Morocco (Adams and et.al., 2015). In addition to

this, Thomas Cook can use virtual reality which will help company in creating artificial

environment of Egypt and Morocco using high definition technology or multimedia..

Personal selling: The organization can use sales personnel to communicate with target

customers. It will also help in building strong relationship between management and

prospective customers. Company can hire sales personnel who will explain the features

of new tour package.

Sales promotion: It refers to use of promotional tools like, discounts, premiums, contest

etc to boost the sales. It further stimulate the individual to purchase the services offered

by company to avail additional benefits. To induce customers to book the services

through mobile applications of company, management use promotional code. With this

aspect, company inform customers and provide discount.

Presently, Thomas Cook has initiated a new marketing campaign that focuses on using

high tech processes for generating awareness about its products and services. Further, marketing

campaign is customer centric. Further, management places customers in the heart of its every

activity. With the aid of integrated marketing campaign company intends to reach that customer



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segment who prefer using cellphones, tablets etc for booking the services. Thereafter, to facilitate

direct marketing, Thomas Cook is emphasizing on personalisation where company will reach

personally to each and every prospective customers. For this aspect, a innovative off and online

marketing strategy will be designed for direct mailing which will also connect to TV marketing .

Therefore, company can use this marketing campaign to reach the prospective customers

interested in taking tour package for Egypt and Morocco. Therefore, Thomas Cook can reach the

business customers and retail customers both (Integrated marketing campaign, n.t.d). Further,

graphical changes, reduced bugs and fine processing are some of the significant changes done by

company in its official website. Thomas Cook has facilitated a new function one search which

will help customers to easily access the large number of services, destinations and packages. In

addition to this, customer can access the more than 34 additional pages highlighting different

destinations with easy search facility. Thomas Cook can provide the information about Summer

2016 tour package on its official website and attract the customers through using pictures of

sceneric beauty of target places.

Concluding, it can be said that company can use all the aforementioned techniques to

market the Summer 2016 tour to Egypt and Morocco (Wong and Song, 2012). This will help

company in in creasing brand recognition and brand building. Further, company can increase the

sales of company by attracting wide range of customers via different platforms and promotional

tools.

4.2 Plan and justify the integrated promotional campaign for Thomas Cook Summer 2016

package

To spread awareness about the new tour package, Summer 2016 to Egypt and Morocco,

Thomas Cook can use integrated promotional mix. This will help company in using both offline

and online marketing networks for the promotion of new services. Therefore, Thomas Cook can

advertise the new tour package through internet marketing campaign through engine

optimization, social media marketing etc (Hall and et. al., 2012). Company can design e brochure

and publish the same on its official sites. In addition to this advertisement can be done on



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television, radio, travel magazine newspaper, billboards etc. The company can also use social

networking sites like Facebook, Twitter for promotion. Further, to boost the sales, organization

can take help of sales promotion technique like, discounts, offers etc. For instance, on group

booking of Summer 2016 package before March, company can offer 2% discount etc.

CONCLUSION

In a nutshell, it can be concluded that marketing play is a life blood of organization that

ensure the success of company in market. Thomas Cook can take help of marketing to boost the

sales of tour package, Summer 2016 to Egypt and Morocco. With the help of proper marketing

and promotion, Thomas Cook can design attractive and effective advertisement that will help in

drawing attention of consumers towards new tour package. Therefore, business entities can

enhance their customer base using effective and innovative marketing strategies and techniques.

The micro and macro factors should be considered effectively by company while functioning to

ensure smooth operations. The core concept of marketing help in identifying the needs of

customers and designing attractive tour package accordingly.


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REFERENCES

Journals and Books

Adams, K., and et.al., 2015. Tourism discourse and medical tourists’ motivations to travel. Tourism Review. 70(2). pp.85 - 96.




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Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR

perspective. Worldwide Hospitality and Tourism Themes. 4 (2). pp.150 – 162.

Bluementritt, T., 2006. Integrating strategic management and budgeting. Journal of Business

Strategy. 27(6). pp.73 – 79.

Bramwell, B. and Lane, B. 2000. Tourism Collaboration and Partnerships: Politics, Practice

and Sustainability Clevedon. Channel View Publications

Carney, M., 2005. Corporate governance and competitive advantage in family‐controlled firms.

Entrepreneurship theory and practice. 29(3). pp. 249-265.

Wong, K., and Song, H., 2012. Tourism Forecasting and Marketing. Routledge.

Peaceful countries. 2014. [Online]. Available through:

<http://www.forbes.com/sites/naomishavin/2014/06/18/the-most-and-least-peaceful-

countries-ranked-as-the-global-impact-of-violence-reaches-9-8-trillion/> [Accessed on

21th

January , 2016].

Integrated marketing campaign. n.t.d. [Online]. Available through:

<https://www.thomascook.com/press-centre/thomas-cooks-new-integrated-marketing-

campaign/> [Accessed on 12th

January , 2016].



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