Marketing in travel & tourism

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Marketing In Travel

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TABLE OF CONTENTSINTRODUCTION....................................................................................................................2

TASK 1.....................................................................................................................................2

1.1 Discuss the core concepts of marketing for the travels and tourismsector...................................................................................................................................2

1.2 Impact of marketing environment on individual travel and tourismbusiness..............................................................................................................................3

1.3 Factors affecting consumer motivation and demand in travel andtourism sector.................................................................................................................. 4

1.4Principles of market segments and use of marketing planning............. 5

TASK 2.....................................................................................................................................6

2.1 Importance of strategic marketing planning................................................ 6

2.2 Relevance of marketing research and market information tomanagers in travels and tourism..............................................................................8

2.3 Assess the influence of marketing on society..............................................9

TASK 3...................................................................................................................................11

3.1Discuss issues in product, price and place element of marketing mixof London Gatwick airport.........................................................................................11

3.2Assess the importance of service sector mix elements to travelsector................................................................................................................................ 13

3.3 Concept of total tourism product on London Gatwick airport............. 15

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

4.1 Assess the integrated nature and role of promotional mix..................16

4.2 Integrate promotion campaign for Sheraton Hotel..................................18



CONCLUSION......................................................................................................................20

REFERENCES...................................................................................................................... 22

Sample on Marketing In Travel & Tourism

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TABLE OF FIGURES

Figure 1 Thomson holidays cultural destinations.................................................10Figure 2Marketing mix of London Gatwick airport.............................................. 13Figure 3 London Gatwick airport Extended Marketing Mix.............................. 15Figure 4 Hotel Sheraton a new boutique hotel..................................................... 19



INTRODUCTIONMarketing generally deals with the activities of identifying and

satisfying needs of individuals. The aim of marketing is to satisfycustomers while gaining profits. Tourism industry is one of the largest andleading sectors in the world. In the industry markets needs tocommunicate with the customer so that they can achieve success(Lamsoo, Niroomand and Rafsanjani, 2013). The aim of the report is tounderstand the general concepts and principles of marketing. The impactof marketing research and marketing mix in travel and tourism industryhas also been evaluated with help of some cases. The report also explainsconsumer behavior in the hospitality and tourism sector. Use of promotionmix in travel and tourism has been explained in a broad way.

TASK 11.1Discuss the core concepts of marketing for the travels and tourism

sectorThe major task of marketing in tourism sector is to create and

supply tourism product. Marketing managers are charged with theresponsibility of creating and supplying the products or services that bestfit the expectation of the customer’s .This imitative is known as marketorientation concept. The core components of marketing are identificationof customer needs, wants and demands, availability of products andservices, and creating customer value through an exchange process. Themarkets of the product have to identify the needs and wants of existingand potential customer. The customers have to be chosen carefullyaccording to their product preference and then business has to offer themthe product and service as per their demand. Creating customer valueand satisfaction lie at the heart of travel industry marketing. After having

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a product as per market demand, marketers have to make aware thetarget market with the products in order to create an exchange process.The industry players should understand the market, so that they canconstruct the marketing programs to deliver superior value andsatisfaction to customers. Building good relations with customer helps tocreate customer delight and business can garner value from customer interms of sales, profits and customer loyalty (Chahal, 2014).

1.2Impact of marketing environment on individual travel and tourismbusinessThe marketing environment affects the business of travel and tourism

industry. The business is affected by two types of environments micro andmacro. In micro environment the industry is influenced by internal factorssuch as suppliers, market intermediaries, customers and competitors,whereas in macro environment the business of travel industry is affectedby economy, society, technology, political and cultural environment.




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Customers are very sensitive in this industry and they need gooddestination packages at low rates. Travelling habits also changes after aparticular time and consumers can switch to other travel agents. Suppliersin the industry are different travel agents and if the company fails toprovide them proper commissions, they can give business to othercompetitors. The numbers of domestic traveler agents decide thebusiness of individuals. Competition in the industry influences thebusiness of industry by giving rise to price wars (Kwon, 2008).

Thomson holidays operate internationally, so the macroenvironment influences operations of company. The state of economy,interest rates, currency exchange rates as well as the industry ownershipand wealth distribution in society decides business growth. Thetechnological environment such as product technology and the globaldistribution of operational system is very important to be known. Socialand cultural environment of different countries affect travels and tourismbusiness as the customers have different cultural believes and values.Now customers have become socially concerned about the environmentalissues so they prefer to visit safe and healthy places. Political environmentincludes government policies, taxation system also influence operation ofindividual travel and tourism business (Garrod, 2005).

1.3Factors affecting consumer motivation and demand in travel andtourism sector

The buyer’s behavior plays an important role in demand of traveland tourism products and services. There are different factors in traveland tourism sector from which the customer can be motivated such asPhysical motivations, cultural motivations, personal motivations, prestigeand Status motivations etc. Every customer wants safety and security and



if selected traveler company provides medical and other facilities thencustomer will be motivated to use the services of that company. Culturalinfluences the buying behavior of the individual. Like some people areborn in spiritual families then they are inclined toward visiting spiritualplaces, individuals from nuclear family can search the options foradventurous places. Advertisements of the travel packages can also be amotivating factor. If Thomson holidays will be able to create customervalue and satisfaction it will be a positive sign of company’s growth(O’Connor, 2005).

The generic model of buying behavior is applicable in industry whichsays that buying process starts with need recognition. First the customerplans out to go for outings after that he searches the availabledestinations and travel agents having the various travel packages. Thecustomers then evaluate the available options according to their ownneeds. After selecting the destination and the traveler package last stageis the customer experience from the particular traveler agency and itsservices. If customer is satisfied then he/she will come again for the sameor other services. Delighted customer becomes a source of promotion forthe company (Wong and Kwan, 2001).

1.4Principles of market segments and use of marketing planningIn travel and tourism sector customers cannot be served in a similar

way so the company needs to select only those customers who can servewell and profitably. In order to create value and satisfy the customers thecompany should decide whom to serve. The task can be done throughmarket segmentation. In the segmentation process, the company candivide the market into groups having similar needs. Then company goesfor target marketing, by which the company can, easily become aware



about the needs and wants of consumer in target market (Hemmington,2007). There are several bases on which travel and tourism industry canbe segmented such as; demographic, economic, psychographic profile,purpose of travel, buyer needs & motivations and buyer behavior orcharacteristics of product usage and the price. Market segmentation helpsthe business in marketing planning as having knowledge about particularsegment’s customer needs and wants, company can design its marketingmix. The product can be created within budget criteria of targetcustomers (Andreu and et.al, 2005). The company can adopt promotionstrategies by which the target consumer can be attracted. ThomsonHoliday Traveler Company desires to create a cultural package of six daysto visit the Denmark, Amsterdam, Lisbon and Porto; it can be donethrough proper segmentation of market. The company can decide thepackage price and promotion by analyzing the demand in the marketplace(Middleton, 2000).

TASK 22.1 Importance of strategic marketing planning

Strategic marketing planning is a process of. It includes all thedecisions used to formulate and implement strategies designed to achievethe marketing objectives of an organization. A strategic marketing planhelps a business in identifying the goals of a particular business and italso gives the in-depth information of target markets and potential andexisting customers. This information will help in taking long term businessdecision. Effective marketing plan can help company to decide itsmarketing activities. Having a strategic marketing plan business candevelop its budget plan and can decide in what manner business can useits available resources in different activities. This marketing budget will



help the company in reducing its cost and time. In the case studyThompson management wants to offer a cultural holiday package. Forthat purpose firstly business had to develop marketing plan and principalsof strategic marketing planning will help mangers to plan the marketingactivities.

Travel and tourism organisations goal is to understand customers’demands and create value satisfaction. Strategic planning helps thecompanies to plan their strategies according to the market. It involvessituational analysis in order to identify factors of both internal andexternal environments that could impact on the achievement of objectives.Strategic marketing planning assists the company to identify its strengthsand weaknesses. By evaluating external environment one can know thepossible opportunities and threats of business. Company can know areasof product life cycle. It will help the company to identify the possibleopportunities to develop a new product. Strategic marketing in travels andtourism industry can be done through tourism lifecycle. The differentstages from which tourist area passes through are exploration,involvement, development, consolidation, stagnation and decline. Afterthe decline stage a further step has to be taken in order to maintain thedesired position. It also helps the company to have competitive advantageas business can develop its superior strategy by identifying the strategiesof its competitors. So strategic marketing plan creates a two –wayadvantages for business as at one side it helps in designing the marketingpan while utilizing the available resources in an efficient manner. On theother hand it helps the business to minimise its cost on marketingactivities (Kozak, 2002).

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2.2 Relevance of marketing research and market information to managersin travels and tourism

Marketing research is the process of collecting marketinginformation in a systematic manner. The business can further integratethat data into an in- depth analysis, which can help the organization toachieve long-term marketing goals. Thompson holidays needs to collectmarket information by which they can offer a cultural package accordingto customer needs. Marketing research in the tourism industry is aboutunderstanding that in what manner the placement of marketing elementssuch as product, price, promotion and distribution should be in order tomeet customer needs in order to succeed in the marketplace. Through themarket research travel agency can anticipate and identify the demand ofexisting and potential customers (Gök and Hacioglu, 2010). Throughmarket research a target market consisting of a whole group of potentialcustomers can be developed and individual customers can be satisfied.Market research gives all the needed information by which marketingstrategies can be developed (Raimund, 2008). The information collected




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through marketing research can give the information about competitor’smarketing strategies. The management of Thompson holidays cancompare their marketing plan with the plan of Rivalry Company and thiswill help them to create a effective business pan which will attract morecustomers. The research plays important roles for managers as they canforecast budget for future sales. Market information helps the managers intaking effective business decisions.The activities in marketing researchshould be planned in order to take specific decisions that drive marketingstrategies. Having market information companies can forecast the futuresales of travel packages and can also measure current demand and thetourism trends. The company has to maintain proper marketinginformation system in which they can record dates of previous consumers(Kotler, Bowen and Makens, 2003). In this way they can also develop CRM(customer relationship management) which involves managing detailedinformation about individual customers in order to maximize customerloyalty (Eliot, 2013).

2.3 Assess the influence of marketing on societyA company operates for a society not only for an individual

customer. Marketing operates in an environment external to the businessunit so it influences society in both ways positive as well as negative.Marketing’s relationship to its external environment has a significanteffect on the success of organization. The important function of marketingin tourism industry is to understand needs and likes & dislikes ofcustomers. Marketing helps society to become aware about the productsthat can satisfy their needs (Dobrivojevic, 2013). The role of travelagencies is to offer such a product that can meet customer needs. Thecompany has to follow the existing rules and regulations in marketing



practices. The concept of consumerism is to be followed in whichcustomer is to be given priority by providing quality product at fair pricesand at the right time according to its convenience. Social responsibility inmarketing has to be considered by which consumer satisfaction, andsocietal well-being can be given equal value (Retseptor, 2005). Marketingethics and social responsibility are the issues in marketing. In the traveland tourism business it is important to deliver the services in an ethicalway in which, customer can be delighted. Companies need to reflectethical behavior while providing the services to the firm. Companiesshould make the customers aware about all the correct information whileoffering then a travel package ( Oh, Kim and Shin, 2004).Thomson has tochoose a promotion mix plan which can attract the customer from a targetmarket. The marketing activities should give a positive message to society,in this way the more customers can be attracted toward a new culturalholiday package.

Figure 1 Thomson holidays cultural destinations

(Thomson Holidays, 2014)





TASK 33.1Discuss issues in product, price and place element of marketing mix ofLondon Gatwick airport

Gatwick airport is second-largest international airport andthe second-busiest in number of total passenger traffic in UnitedKingdom. It is also Europe’s leading airport for point-to-point flights. Themarketing mix of the airport and the issues related to it are as follows:

➢ Product: The products of airport are its services such as Flighttracking, shops, taxi services, communications, security,accommodations, hotels, restaurants, lounge, parking facility formore than 8 days etc. In its hotel services it has 141 rooms withfixed bathroom with shower, high speed Internet and paid TVfacilities. The product of the airports is intangible in nature so themain issue related to services of airport is that of standardization.

➢ Prices: As the airport is an international airport it has to set theprices of different services at very high. To set the prices is verydifficult as the services are intangible. The airport parking is for bothlong and short term parking is available at huge charges, thisbecomes a biggest issue for Gatwick airport marketing mix. Thecompany can offer lower charges on flights and other services toattract more visitors (Eliot, 2013).

➢ Place: Gatwick is located in the Southern and Northern portion ofLondon city which helps them to attract more visitors. The customercan easily get taxi service from anywhere in the city. The issuerelated to place is Gatwick airport is the taxi drivers charge a bigamount from customer. The management should fix the charges bycollaborating with taxi owners.



➢ Promotion: The airport promotes its services mostly through onlinebooking counters and websites. The flight arrivals and departuresinformation has also been given on website of company. Thecustomer can compare the services with other flights; this createsthe problem of switching customer to another rival company. Theirexisting customers are also the source of company’s promotion. Lowquality of service delivery always becomes cause of customerdissatisfaction. By collaborating with some flight company,advertising can be made more effective (Kolb, 2006).



Figure 2Marketing mix of London Gatwick airport

(Airport spotting, Gatwick’s, 2014)

3.2Assess the importance of service sector mix elements to travel sectorGatwick airport is the part of Aviation industry which is service

sector industry. The service includes some characteristics such as: lack ofownership, intangibility, inseparability, perishability and heterogeneity.Gatwick airport marketing mix for marketing a service is different tothe marketing mix for products. The extended marketing mix for servicesector is people, process and physical evidence. In case of LondonGatwick Airport, these elements play important role in order to createmarket image.

➢ People: People refer to employees and the staff of Gatwick airport. Italso includes the technical staff, fuel dealers and the otheremployees. People are important because through them companyprovides its services to its customers. Service provision and bejudged by customer based on the people representing theorganization. For success of the company it is important to maintainquality relationship with customers. Employees require appropriateinterpersonal skills, attitude, and service familiarity in order todeliver a quality service. Staff can be motivated towardsorganization goals by providing proper trainings. A quality staff canattract more customers (Morrison, 2013.).

➢ Process: The element of marketing mix refers a systems used todeliver the service. The services are provided to the customerthrough a process in service sector. For the airport, process shouldin the manner to deliver efficient service in quick time. The process



of delivering services has to be easy and should be understandableby the customers. In process, it is important to have customer andservice provider at a similar place. A trained employee can deliverthe services in effective manner in order to satisfy the customer(Simkin, 2012). The importance of process marketing mix at Gatwickairport is if customers are coming late in the airport premises, he/she could be given quick and clear instructions for luggagechecking, place of arrival, timings of flight arrivals. So customer canmake decision quickly. Through the process mix customer can besatisfied in a better way.

➢ Physical evidence: It is the material part of a service which acompany from its competitors. In the case of Gatwick airportphysical evidence, includes; Packaging, Internet/web pages,brochures, furnishing of airport and its nearby area, signage onaircraft, uniforms of staff, business cards. For the tourism industrythis marking element plays an important role as customer needscleanness and friendly environment. If they don’t get suchenvironment they can switch to other companies. The environmenthas to be attractive in which the product or service is delivered inorder to attract more visitors and customers (Holloway, 2004).




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Figure 3 London Gatwick airport Extended Marketing Mix(Airport spotting, Gatwick’s, 2014)

The marketing mix plays and vital role in achieving marketing goal.Managing services for London Gatwick airport are is complicated thenmanaging products. Products can be standardized whereas the servicescannot be to standardize. A service is more difficult as it is affected byfactors outside the service provider’s power.

3.3 Concept of total tourism product on London Gatwick airportThe customer can be satisfied through providing a product and

services having feature to fulfill needs and wants of customer. The totalproduct concept of London Gatwick airport means airport should have thefacilities to satisfy its customer. The customer should get all the servicesunder a single roof. The airport could provide taxi services and cab



services to its customers. The parking services for private cabs can alsobe given foe a specific time. The company can provide different thefacility to land the private flights and jets for consumer. Customers canbook the tickets over telephone through mobile banking services. At thetime of book their tickets customer can book taxies or cabs for the placethey are going. It will give customer the value for their time (George,2008). The accommodation services can be given as quickly as thecustomer reaches at the airport premises. The business can offer thedrinks to customer as they come into flights. The airport can have thefacility to keep luggage for the specific time. In order to attract the uppermiddle class and the middle class customer company can offer the cheapflights with god service quality. Airport should have play station for kids sothey can enjoy the free time. Personal transportation facilities for heavythinks can be included in the services of airport (Panda, 2007). Thesewere all the suggestions for London Gatwick airport to introduce totaltourism product concept in its operations.

TASK 44.1 Assess the integrated nature and role of promotional mix

Promotion and Marketing both are interchangeable words.Marketing is a broader process that includes developing, promoting andselling products and services to existing and potential customers.Promotion plays an important role in marketing as it promotes sales andhelps company to capture market share. It is a specific element ofcommunicating the value of brand, products and services to target marketcustomers. The foremost aims of promotion are to increase primarydemand, or desire for a particular product category and to increaseselective demand, or desire for a specific brand. The basic task of



promotional campaign is to let customers know about company productwhich can satisfy the needs of various customers.

The activities of promotion convince customers with the benefitsproducts and services. The natures of promotion mix activities are toinform the market about the availability of a product. To promote productcompany needs information pertaining to target market consumer. Fromthe information marketer can effectively manage time and resources in abetter way to reach the right customers. The methods used promotionmixes are depends upon the company’s goals, priorities, markets andindustries. Promotions normally include advertising, publicity, salespromotions, public relations and many more. It used to create afavourable image for a company. In promotion campaigns Company donot sell directly product to customers but try to increase sales of aproducts and services.

As soon as company produces products and services for targetcustomers the main role of business is to communicate with target marketto the features and benefits of products. In order to communicate with thecustomer they can follow the marketing communications process. In thisfirstly company sets the goals and objectives, identifies the audience, andafter that it develops message and its strategies to make aware potentialcustomers about the message. The message can be communicatedthrough various communication channels. At last evolution of wholeprocess has to be done in order to measure the success. Promotion mix isthe element of marketing through which company passes its message toits audience. The main task of promotion mix is to inform, persuade andremind target audience about the product and service.

Advertising is the most preferable way to promote products.Through advertising company can reach to large number of buyers. It is



an effective and flexible way to create brand image. Through personalselling, message can be delivered to specific individuals and two wayscommunication process can eradicate the irrelevant question from thecustomer mind and the customer can be well motivated. Sales promotioncan be effective in changing behaviour for a short time and in promotingsales. Public relation is a cost effective way of promotion, media plays animportant role in developing relations with potential consumers on theother hand direct marketing can be prepared quickly and facilitate relationwith consumers. The hotel management can directly communicate withthe customer through web site. The information of new boutique hotel andits service can be posted at company’s web site. The other channels ofdirect marketing are brochures and catalogs, telecommunications ortelevision and radio, internet via e-mail and electronic messaging, printmedia such as newspapers and magazines and the specialized channelssuch as electronic kiosks (Ceylan, 2008). The company has applied allthese promotion tools to promote is previous services and it had created ahuge success for the services. As company is an international brandpromotional activities will help company to attract customer around theworld.

4.2 Integrate promotion campaign for Sheraton HotelThe Sheraton Hotel is a leading company operating in tours and

travels industry. The company is going to launch its boutique hotel whichhas several luxurious double rooms and the company wants to target thecultural and upper middle class customer and the hotel is planning tolaunch it after summer. The hotel can promote the product throughtelevision advertising campaign so the message can reach to the massaudience. Another source of promotion is to tie up with different travel



agents like Thompson Cook. By this the company can reach directly to thecustomer like advertising through direct and indirect marketing. SheratonHotel can also put hoardings and banners on the airports. Advertisingthrough broadcast videos will create image about the message. As thetarget of the business is cultural and upper middle class customer socompany can give advertisement in different city newspapers.

Figure 4 Hotel Sheraton a new boutique hotel(Sheraton Hotels and Resorts, 2014)

Online marketing will be helpful to attract huge customer group.Through promotion company attracts the attention of consumers andprovide enough information to them. In helps the business owners in



holding customer interest long enough to motivate a purchase. HotelSheraton has more than 800 hotels and resort all over the world. Now themanagement want to promote its newly launched boutique hotel. For thepromotion of new business unit the mails can send out to past andpresent guest. The mails can be sent with some discount coupons .thebrochures can also be given to the local tour operators so they can givethem to their customers. The company can do two types of promotion,open promotion and closed promotion. In their open promotion customershould be given a discount on their stay for long time on the other hand inclosed promotion the guest can be given free breakfast or dinner for acertain amount. In this way company can promote its boutique hotel andservices.

CONCLUSIONThe above report explains the importance of marketing concepts in

travels and tourism industry. Thomson holidays which is tourism companyand wants to create a culture holiday package of 6 days , this reporthelps the company to assess the role of marking research and strategicmarketing planning to attract the customer towards the package offered.This report explains the various factors affecting consumer motivation anddemand for the culture holiday package.

The marketing mix and the concept of total tourism product for LondonGatwick airport have been explained. From the report it can be concludedthat Gatwick airport can create the strategic brand image while usingextended marketing mix. The reports also suggest the differentpromotional techniques for a new unit of Sheraton hotel such as,



advertising, sales promotions and online marketing. These all promotionalactivities will give benefits the new hotel to attract a large customer group.




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Dobrivojevic, G, 2013, Analysis of the Competitive Environment of TouristDestinations Aiming at Attracting FDI by Applying Porter’s Five ForcesModel. British Journal of Economics, Management & Trade. 3(4). pp.359-371.

Garrod, B., 2005. Tourism Marketing: A Collaborative Approach. ChannelView Publications.

George, R., 2008. Marketing South African Tourism. Oxford UniversityPress Southern Africa.

Gök, O. and Hacioglu, G., 2010. The organizational roles of marketing andmarketing manager. Marketing Intelligence & Planning. 28(3).pp.291 – 309.

Hemmington, N., 2007. From Service to Experience; understanding anddefining the hospitality business. The Service Industries Journal.27(6).pp.1-19.

Holloway, J., 2004. Marketing for Tourism. Prentice Hall/Financial Times.

Kolb, B., 2006. Tourism Marketing for Cities and Towns. Routledge.

Kotler, P., Bowen, J. and Makens, J., 2003. Marketing for Hospitality andTourism. Prentice Hall.

Kozak, M., 2002.Comparative analysis of tourist motivations by nationalityand destinations. Tourism Management.23(3).pp221–232

Kwon, J., 2008. Factors Influencing Residents' Attitudes Toward TourismMarketing as a Development Strategy. ProQuest.

Lamsoo, M.S., Niroomand, M. and Rafsanjani, H.K., 2013. The Role ofMarketing on Tourism Industry. International Research Journal ofApplied and Basic Sciences.4 (1).pp.73-80.


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Middleton, V., 2000. Sustainable Tourism: A Marketing Perspective.Routledge.

Morrison, A., 2013. Marketing and Managing Tourism Destinations.Routledge.

O’Connor, D. ,2005. Towards a new interpretation of hospitality,International .Journal of Contemporary Hospitality Management.17(3).pp267-271.

Oh, H., Kim, B. and Shin, J. 2004, Hospitality and tourism marketing:recent developments in research and future directions. InternationalJournal of Hospitality Management.23(5). Pp. 425–447.

Panda, T., 2007. Tourism Marketing. ICFAI Books.

Raimund, L., 2008. Special Features of Tourism Marketing. BoD – Books onDemand.

Simkin, L., 2012. Judging marketing mix effectiveness. MarketingIntelligence & Planning. 30(5). pp.494 – 514.

Wong, K. and Kwan, C., 2001. An analysis of the competitive strategies ofhotels and travel agents in Hong Kong and Singapore. InternationalJournal of Contemporary Management 13(6).pp.293-303.

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http://www.sciencedirect.com/science/journal/02784319/23/5



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Marketing in travel & tourism