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Introduction
Assessment and illustration of the importance of marketing strategies, operations and processes
in travel and tourism sector is the main aim of the below provided study. Hence, the discussions
have been developed through considering the organisational scenario of Thomson Holidays (a
Germany originated multination travel and tourism organisation currently popular as TUI Group
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Task 1
Introduction
The basic aim of this report is to shed light on the basic concept and principles of marketing in
the context of travel and tourism sector so that their application and importance could be
explained for the summer 2019 holiday packages Thomson Holidays to Turkey and Spain.
1.1 Discuss the core concepts of marketing for the travel and tourism sector
The basic elements and principles of marketing in travel and tourism sector are illustrated below
Marketing
Concept
and
Orientation
Consumer
Exchange
Need
Process
Assessment
Principles of
Marketing in
Travel and
Tourism
Sector Services,
Customer
Products
Loyalty and
and
satisfaction
Markets
Value and
Quality
consumer needs, buying behaviour and purchase trends so that the most suitable and market
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oriented packages could be developed and promoted. For example, Thomson Holidays needs to
select proper promotional mediums for individual summer holiday tourism packages to Turkey
and Spain so that the most potential consumer segments could be attracted, for example - social
media platforms, company website, PPC campaigns, hoardings, etc (Avraham, 2017).
Consumer Need Assessment: It is the most significant principle to be followed by every travel
and tourism company while planning marketing strategies. The success of travel and tourism
organisations is majorly dependent on the suitability of their offered tourism packages with the
exact consumer needs and expectations. Hence, it is necessary for Thomson Holidays to make
appropriate assessment of exact consumer needs and expectations from its summer holiday trips
to Turkey and Spain so that packages could be designed accordingly (Oromendía et al., 2015).
Services, Products and Markets: This principle defines the need for proper maintenance of
quality, variety and standard of services and products in accordance with analysed consumer
needs in specific targeted markets. For example, common expectations of tourists from the
summer holiday trip of Thomson Holidays could be momentous experience, visit to most popular
tourist attractions in Spain and Turkey, summer beach camps, quality foods and
Value and Quality: According to this principle, quality helps a brand to build value. It defines
that a travel and tourism brand continuously maintaining good quality of services and products to
its customers is better capable of building better brand values. For example, quality and brand
value of Thomson Holidays are major factors that will enhance the outcomes from its marketing
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Customer Loyalty and Satisfaction: This principle states that loyalty and satisfaction of
existing customers of a travel and tourism brand is essential for the success of its marketing
process and sustainability of the company as well. A travel and tourism organisation must gain
good reliability, reputation and brand values in the market through gaining better consumer
loyalty and satisfaction for ensuring success of its future marketing plans and activities. For
example, Thomson Holidays needs to maintain good relationships with its excising customers
through monitoring their satisfaction so that better brand reputation, reliability and values could
be achieved from positive feedbacks and word of mouth promotion from them (Avraham, 2017).
Exchange Process: According to this principle, convenience of customers with the process of
exchange also matters for their positive response towards marketing approaches of a travel and
tourism company. Hence, the process of exchange for the summer holiday trip of Thomson
Holidays should include facilities like online booking and payment facilities, post trip or
instalment payment facilities, clear description about provided services and accommodations,
description about targeted attractions, clear conveyance of policies and pricing, etc (Avraham,
2017).
1.2 Assess the impact of the marketing environment on individual travel and
The positive and negative of micro environmental factors for Thomson Holidays and its summer
trip to Spain and Turkey are discussed below depending on the concept of Porter’s Five Forces,
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Consumers
Substitute
Micro
Competitors
Services Marketing
Environment
Factors for
Travel and
Tourism Sector
Intermediaries Suppliers
Consumers: In terms of international tourist arrival, Spain is the third most visited country in the
world with over 75.6 million visitors in 2016 (Kiráľová & Pavlíčeka, 2017). On the other hand,
Turkey also acquires the 9th position in the world in terms of international tourist arrival due to
having more than 40 million overseas visitors in 2016. Hence, there would be no issues for
Thomson Holidays to gain valid number of potential customers for its 2019 summer trip to either
of these nations.
Competitors: Travel and tourism sector in both the targeted nations are well developed and
hugely popular around the world. Hence, severe market competition for Thomason Holidays in
both the markets is pretty natural. Bigger tour operators like Thomas Cook and others would be
the toughest competitors for Thomson in these tourist destinations (Tang &Ozturk, 2017).
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Suppliers: Travel and tourism industry in Spain and Turkey respectively contributes 11% and
10.9% of their national GDP (Kiráľová & Pavlíčeka, 2017). Hence, major contribution of travel
and tourism sector in national GDP in both the targeted destinations represents the developed
infrastructure of the industry. Thus, there would be no issues for Thomson Holidays to get
reliable suppliers of hospitality and other tourism services and products in the both the nation for
Intermediaries: Travel and tourism industry in Spain and Turkey respectively contributes 13%
and 8.1% in overall employment within their nation (Tang & Ozturk, 2017). Hence, it would be
easy for Thomson Holidays to get adequate and reliable intermediaries like tour and travel agents
Substitute Services: Online tourism businesses and tour planning facilities are the main
substitute services that could adversely affect consumer availability in the summer holiday trip of
Thomson Holidays. Organisations like TripAdvisor and others are empowering tourists to plan
their trips and holidays on their own and that is a negative aspects for international tour operators
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Macro Marketing Environmental Factors
Demography
Tourism
System and Political
Destination Macro
Marketing
Environmental
Factors for
Travel and
Technological
Tourism Sector Economical
Social and
Cultural
Demography: Needs and expectations of tourists from the summer holiday trip of Thomson
Holidays to Spain and turkey could vary in accordance with various demographic factors, for
example adventure experience needs of younger tourists, safer trip arrangements for elderly
people, amusement needs of family people, privacy needs of younger couples, etc. hence, it
could be an implicating factor for the organisation to plan and segment the packages (Tang
&Ozturk, 2017).
Political: Travel and tourism industry in Spain and Turkey respectively contributes 11% and
10.9% of their national GDP (Avraham, 2017). Thus, it is expected that Thomson Holidays will
get better cooperation from the governmental authorities in both the nations for conducting the
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trips due to better contribution of the tourism industry in national economic growth and
development.
Economical: Spain is currently in the 2nd position in the world as a tourist destination in terms of
international tourism receipts (US$ 60.3 billion in 2016). On the other hand, Turkish travel and
tourism industry also achieved overall international tourism receipts of US$ 31.6 billion in
2016(Kiráľová & Pavlíčeka, 2017). Hence, the economic condition in both the targeted tourist
Social and Cultural: It has been mentioned before that travel and tourism industry in Spain and
Turkey respectively contributes 13% and 8.1% in overall employment within their nation (Tang
&Ozturk, 2017). Hence, major involvement of people in society in travel and tourism sector for
employment ensures highly positive social and cultural environment for tourists of Thomson
technology, increasing use of social media platforms and other relevant aspects of technological
environment makes it easier for Thomson Holidays to promote and sell its summer holiday
Tourism System and Destination: Tourism system in both Spain and Turkey is well developed
which will ensure convenient stay and momentous experience of tourists participating in the
summer holiday trip of Thomson Holidays. As a tourist destination the most popular tourist
attractions in Spain which should be included in the package are Palacio Real, La Concha,
Aqueduct of Segovia, Cuenca, Mezquita of Cordoba, etc. On the other hand, the most popular
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tourist attractions in Turkey which should be included in the package are AyaSofya, Ephesus,
1.3 Discuss the factors affecting consumer motivation and demand in the travel and
tourism sector
The most significant factors that could affect consumer motivation and demand in travel and
tourism sector are discussed below with respect to the summer holiday trip of Thomson Holidays
Loyalty: It has been observed that a majority proportion of people around the world prefer to
buy tourism packages from specific preferred companies due to better reliability, previous
factor for affecting the demand of summer holiday packages of Thomson Holidays (Brondoni,
2016).
Sociology: Changing social trends could have significant impacts on buying behaviour of
customers towards travel and tourism packages. For example, social media, online search engine
and other internet platform based research activities by tourists could provide Thomson Holidays
with greater opportunities for showcasing its unique services offered with 2019 summer holiday
Psychology: Psychology plays a significant role for diversifying needs and expectations of
tourists from tourism packages, for example knowledge gathering needs of educational tourists,
amusement needs of family tourist groups, privacy needs of business tourists, safety needs of
elderly tourists. Hence, Thomson Holidays needs to segment and diversify its tourism packages
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Safety and Security: safety and security in a targeted tourist destination could also be a
significant factor for influencing tourist motivation, for example recent terrorist attacks in
Turkey could affect the demand of holiday packages of Thomson Holidays to this destination
(Brondoni, 2016).
Convenience: Convenience for availing services could also be a significant factor for
influencing consumer motivation and demand towards tourism packages of Thomson Holidays,
for example availability of online booking facility, availability necessary information, customer
Financial Abilities: Thomson Holidays also needs to consider financial abilities of consumers as
an influential factor for their motivation and demand to buy the summer holiday packages and
subsequently the packages could be segmented in different categories like premium, reasonable,
1.4 Analyse the principles of market segmentation and its uses in marketing
planning
Market Segmentation: Market segmentation could be defined as the technique for dividing a
market into different segments or consumer groups according to specific characteristics of the
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Source: www.yourarticlelibrary.com
the criteria based on which a market is segmented. Approach of market segmentation could be
other hand, market segmentation approach could also be based on consumer response or
expectations from products or services, for example benefits, usage, loyalty, occasion, etc (Chon,
2015).
It has to be mentioned that process of market segmentation consists of three stages which are
(Brondoni, 2016).
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Targeting: Targeting could be referred as the process for an organisation to target the
most potential market segments with respect to best possible profit making opportunity
(Attallah, 2015).
organisation develops and positions its products in the market according to the needs and
The use of different market segmentation principles for the summer holiday trip of Thomson
Demographic
Segmentation
Psychographic
Segmentation
Geographic Segmentation
Behavioural
Segmentation
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example safe accommodation for elderly customers, private accommodation facilities for
couples and amusement park visits for family holiday makers (Attallah, 2015).
Thomson Holidays for developing different holiday packages like luxury and premium
packages, reasonable and discounted packages for family holiday makers, educational
visits of heritage and cultural sites for students and knowledge seeker tourists, etc (Chon,
2015).
Geographic Segmentation: Thomson Holidays could segment its 2019 summer holiday
packages depending on this principle with the facilities for the tourists to visit any one
Holidays could also segment its summer holiday packages, for example post-trip payment
options, instalment payment packages, discounted online packages, etc (Chon, 2015).
Conclusion
market research and audits as well. The above report effectively shows that how effective
researches should be done in travel and tourism sector for the process of marketing.
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Task 2
Introduction
The below provided management report has been developed for illustrating the significance of
strategic marketing planning in Thomson Holidays for its 2019 summer holiday trip to Spain.
2.1 Analyse the importance of strategic marketing planning for a selected travel and
Marketing Planning: Marketing planning could be referred as the process for an organisation to
prepare a strategic plan defining its current market position and marketing strategies to be
The basic roles of strategic marketing planning are as follows, (Avraham, 2017)
Identifying the most potential market and consumer segments in the present market.
future.
The application of different strategic marketing planning tools has been shown below for
analysing suitable strategies for Thomson Holidays to conduct its summer trip to Spain in 2019.
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SWOT Analysis
Strengths Weaknesses
2016.
(Brondoni, 2016).
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Wide variety of tourist attractions
potential tourists to visit Spain due to sea beach beauty due to global warming
sustainability of the market and long- affect foreign tourist arrival rate due to
(Brondoni, 2016).
The TALC Model is an effective help for analysing growth potential available for travel and
tourism sector within specific tourist destinations. It is used to compare number of tourist arrival
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in specific tourist destinations with respect to time so that availability of growth potential could
be analysed.
Source: www.researchgate.net
In terms of international tourist arrival, Spain holds the 3rd position in the world with 10.3%
growth in annual foreign tourist visits from 68.5 million in 2015 to 75.6 million in 2016.
Moreover, foreign tourist visits within the nation has increased by 12% till July 2017 which
shows growing state of the Spanish travel and tourism industry (Avraham, 2017).
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Source: www.tradingeconomics.com
Thus, the overall Spanish tourism market is in developing stage according to the TALC model
and it shows huge growth potential for Thomson Holidays with its 2019 summer holiday trip.
Conclusion
Hence, it could be concluded from the above analysis that Spain is the most potential geographic
market segment for Thomson Holidays to design its future tourism packages due to the massive
Market Research: Market research could be defined as the process for an organisation to gather
information about consumer needs, preferences and competition in the targeted markets. It also
helps an organisation to analyse the market position of its own products and services as well
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Market Research Process: Market research process could be defined as the set of multiple steps
which defines the essential processes to be conducted for completing a successful market
research. The essential steps of market research process are discussed below, (Oromendía et al.,
2015)
Problem Identification
Data Analysis
The relevance and importance of marketing research and information to managers in travel and
It will help Thomson Holidays to realise diverse consumer needs and expectations from
its summer holiday trips to Spain and Turkey which will enhance package differentiation
Better realisation of competition and market situation enables Thomson Holidays to plan
better competition management strategies through making better utilisation of its internal
Assessment of existing services and tourism products could enable Thomson Holidays to
develop packages with more unique features in accordance with unsatisfied needs of
consumers.
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Enhances the realisation about consumer buying behaviour and trends so that the most
Appropriate risk assessment ensures better efficiency to avoid market risks and threats,
Market research could also help Thomson Holidays to improve quality of its tourism
products and services through analysing the changing consumer needs and expectations
Conclusion
Hence, it could be concluded from the above discussion that market research is an essential
process for every business organisation to ensure appropriate marketing strategy selection, better
Staff requirements in travel and tourism organisations like Thomson Holidays and also in
organisations in other business sectors helps to generate employment and also to improve
Provides customers with wide range of choices of products and services to meet their
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Attracts larger number of foreign visitors within a nation and subsequent improvement of
Marketing also maintains better consumerism in the markets through prioritising and
Marketing activities could also be utilised for ensuring better environmentalism through
promoting environment friendly practices for product use and disposal of packaging
Marketing also enhance consumer awareness regarding available legal considerations for
Conclusion
The above report is expected to deliver a better understanding of strategic marketing planning
process sin travel and tourism sector due to practical application of the tools for Thomson
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Task 3
Introduction
Marketing mix and the service sector mix are the two integral sections of the service sector
elements. These are required to be focused by the management of Thompson for their Spain and
Turkey summer trip in 2019. These elements will support the organization to meet the market
need and market demand by focusing on the customer preferences based on the recent trend and
3.1 Discuss issues in the product, price and place elements of the marketing mix with
Out of the four important elements of the service mix, product, price and place elements have
Product:
The intangible product offerings in terms of excellent service offerings to the travellers will be
supported by Thompson. These products can be categorised in to three sections as Core products,
Expected product and augmented product (Buhalis&Foerste, 2013). Core products can be
highlighted as the complete tourism package, expected product can be highlighted as the
excellent travel experience offered by Thompson and the augmented product can be highlighted
as additional tour service offered to the travellers as some special arrangements for the travellers.
It is with great important to check and analyse the effectiveness of the product portfolio offered
by Thompson. This is referred as the core products. The accommodation facilities, the
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transportation facilities in the destination point, the guide support, the support from the local
community and local stores, so that they will be able to offer the complete satisfactory service
offerings to their customers. The analysis of the product life cycle also is important to be
analysed to check its effectiveness (Buhalis&Foerste, 2013). Good hotel service, excellent
experience about tour guides, and others can be referred as the augmented products. At the same
time, customer care service offered by the travel tour company can be highlighted as the
expected service in taking care the needs of the travellers. Total product development is required
to be focused.
Price
Product
Marketing
mix
Place
Price:
Price can be highlighted as having the key role in marketing mix and is required be considered to
maintain the competitive advantage in an effective manner. Price sensitivity is the important
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aspect to be focused by offering the promotional activities to boost up the sales volume in an
effective manner. Further, it is also requirement by the management of the tour operator to
analyse the affordability and acceptance rate of the target customers to frame the pricing
strategy.
There are many pricing methods as value based pricing, cost plus and break even pricing. Out of
these three, cost plus pricing will be selected for the summer trip in 2019 for Turkey and Spain
(Xiang et al, 2015). With the help of this pricing method, Thompson management will be able to
make a perfect balance between the cost incurred in setting the service mix and the profit earned
to attain the breakeven point faster. At the same time, the nature of the expenditure also is
required to be focused by the management. Thus, some competitive cost pricing in addition with
Place:
The channel or medium/ distribution channels through which the intended product mix will be
delivered to the target market are highlighted as place selection. The physical stores in terms of
travel agents and intermediaries, and online stores will be preferred to make the service mix
reach to the customers. The sales representative will have a good role to be played here. They
will also concentrate on the vertical marketing where all the retailers, whole seller will be in
collaboration to meet the demand of market. Apart from that the social media awareness
regarding this upcoming trip also can be highlighted as the prospect marketing strategy (Xu et al,
2016).
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3.2-Assess the importance of service sector mix elements to the travel sector
Promotion:
This is another important element to be considered as the service mix elements. The intended
Discount offering for the future tour with Thompson (Xu et al, 2016). .
These discounts will support Thompson to attract more customers for their upcoming Spain and
Turkey Summer tour in 2019 and to attain the objectives set in an effective manner.
People:
Well skilled, well trained, and fair knowledge about the customer etiquette professionals will be
required to support the tour activities of Thomson (Xu et al, 2016). To make them more skilled,
required training session is required to be imparted to the people based on the detail of the tour
destinations and services offered along with some skills to make the customers satisfied with the
Process:
The integrated business process with the help of the effective communication building by
focusing on the customer focused approach will be preferred. The strong team work environment
is required to be maintained for the successfulness of the project by meeting the expectation level
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of the customers (Xu et al, 2016). The effective cost and budgeting also is required to be focused.
Physical evidence:
Making the Thomson website attractive with the full display of the summer trip information, the
arrangement of the travel exhibition with the active involvement of Thompson with the perfect
display of the offerings and arrangement off customer service desk has been planned to execute
3.3 Apply the concept of the total tourism product to an individual tourism business
such as Thompson
Total tourism product is referred as setting the product range to cater the needs of wide range of
target customers. For the summer trip 2019, Thompson has planned to offer heritage and cultural
destinations package, leisure package, and adventurous package. Thompson also has planned for
individual service mix elements for the various tour packages to meet the needs and demands of
the targeted customers and to make the satisfied. Here, product differentiation should be focused
by the management of Thompson (Becker, 2016). The days to cover all destinations points for
Turkey Spain tour in 2019 will be for 14 days. Here, the primary and secondary product mix also
The heritage and cultural destinations package, leisure package, and adventurous package will be
recognised as the primary product mix with price range from £350 to £400 for the summer
trip(Becker, 2016).
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Secondary product mix:
Hotel accommodation service, food offerings, hotel booking facility, room service quality,
discounts as promotional tools, support of the tour guide, intercity transportation service, and
excellent customer service facility will be treated as secondary product mix(Becker, 2016).
It is required to focus on the customer service etiquette so that the needs and demands of the
customers will be attained and will be resolved to make them satisfied and become loyal
customer base. To execute the same, proper training on customer service etiquette will be
arranged for the employees. The local store collaboration also will be focused by the
management of Thompson so that customers will feel” home away home”. The close monitoring
on the entire service mix elements should be checked to assure the effectiveness of the package
Thus, it can be stated that marketing mix is the planned mix whereas the service mix will support
the psychological needs of the customers (Becker, 2016). The integrated process approach, the
customer focus approach, and effective communication building approach between the
organization and customers will justify the total tourism product the best fit to attain the
Conclusion
Therefore, it can be stated that the marketing mix and service mix along with the proper plan for
total tourism product development Thompson will be able to become successful in Turkey Spain
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Task 4
Introduction
The below report has been developed with an aim to apply promotional mix strategy for
selecting the most suitable promotional strategies for Thomson Holidays to promote its 2019
4.1 Assess the integrated nature and role of the promotional mix
Promotional Mix could be referred as one of the 4Ps of Marketing Mix strategy and this element
of the Marketing Mix is responsible for integrating different promotional and advertising
strategies in business organisations to achieve best possible popularity for designed marketing
contents (Hsu et al., 2016). The nature and role of different elements of promotional mix strategy
Source: www.marketing91.com
brands and their product or services. The most commonly used strategies and approaches are
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Personal Selling: It refers to marketing approaches in which products or services are soled based
on one to one communication with individual customers. Commonly used promotional strategies
in this regard are sales executive visits, lead generation from existing consumer base etc (Hsu et
al., 2016).
Direct Marketing: Direct marketing could be referred as promotional strategy that targets
prospective consumer groups only. The most commonly used strategies and approaches are
Sales Promotion: Sales promotion is the promotional strategy in which specific strategies are
applied for stimulating purchasing interest of customers. Commonly used promotional strategies
in this regard are demo view of products or services, etc (Kiráľová&Pavlíčeka, 2017).
Public Relations: This promotional strategy is responsible for maintaining the goodwill of a
company with its customers. Promotional strategies that could be utilised in this regard are
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4.2 Plan and justify an integrated promotional campaign for a travel and tourism
business or destination
tuigroup@yahoo.co.uk
08701860144
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A suitable promotional campaign has been planned below for promoting 2019 summer holiday
Advertising: Thomson Holidays could utilise television advertisement as the main tool
(Kiráľová&Pavlíčeka, 2017).
Personal Selling: Thomson Holidays could engage its customer service department for
contacting individual customers from its existing consumer base so that prospective leads
Direct Marketing: Email marketing could be the most suitable promotional strategy for
Thomson Holidays in this regard for recommending specific consumer groups with
family tour packages to Turkey and Spain to attract potential family holiday makers.
Public Relations: The recommended strategies for Thomson Holidays in this regard are
formation of dedicated customer query service regarding 2019 summer holiday trip to
Conclusion
It could be concluded from the above report that there are several strategic options in
promotional mix strategy for Thomson Holidays to promote its holiday trip to Turkey and Spain.
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Conclusion
According to basic perception, business activities that are performed for advertising and selling
products or services to the targeted consumers in targeted markets are generally referred as
marketing. However, the above study shows the vast concept and application of marketing in
travel and tourism sector. Thus the overall study is expected to meet its ultimate goals.
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