Marketing in travel & tourism

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Marketing In Travel
& Tourism

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TABLE OF CONTENTS
INTRODUCTION.................................................................................................................... 2
TASK 1.....................................................................................................................................2
1.1 Discuss the core concepts of marketing for the travels and tourism
sector...................................................................................................................................2
1.2 Impact of marketing environment on individual travel and tourism
business..............................................................................................................................3
1.3 Factors affecting consumer motivation and demand in travel and
tourism 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 to
managers 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 mix
of London Gatwick airport.........................................................................................11
3.2Assess the importance of service sector mix elements to travel
sector................................................................................................................................ 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

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CONCLUSION......................................................................................................................20
REFERENCES...................................................................................................................... 22
Sample on Marketing In Travel & Tourism
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TABLE OF FIGURES
Figure 1 Thomson holidays cultural destinations.................................................10
Figure 2Marketing mix of London Gatwick airport.............................................. 13
Figure 3 London Gatwick airport Extended Marketing Mix.............................. 15
Figure 4 Hotel Sheraton a new boutique hotel..................................................... 19

INTRODUCTION
Marketing generally deals with the activities of identifying and
satisfying needs of individuals. The aim of marketing is to satisfy
customers while gaining profits. Tourism industry is one of the largest and
leading sectors in the world. In the industry markets needs to
communicate with the customer so that they can achieve success
(Lamsoo, Niroomand and Rafsanjani, 2013). The aim of the report is to
understand the general concepts and principles of marketing. The impact
of marketing research and marketing mix in travel and tourism industry
has also been evaluated with help of some cases. The report also explains
consumer behavior in the hospitality and tourism sector. Use of promotion
mix in travel and tourism has been explained in a broad way.
TASK 1
1.1Discuss the core concepts of marketing for the travels and tourism
sector
The major task of marketing in tourism sector is to create and
supply tourism product. Marketing managers are charged with the
responsibility of creating and supplying the products or services that best
fit the expectation of the customer’s .This imitative is known as market
orientation concept. The core components of marketing are identification
of customer needs, wants and demands, availability of products and
services, and creating customer value through an exchange process. The
markets of the product have to identify the needs and wants of existing
and potential customer. The customers have to be chosen carefully
according to their product preference and then business has to offer them
the product and service as per their demand. Creating customer value
and satisfaction lie at the heart of travel industry marketing. After having

a product as per market demand, marketers have to make aware the
target market with the products in order to create an exchange process.
The industry players should understand the market, so that they can
construct the marketing programs to deliver superior value and
satisfaction to customers. Building good relations with customer helps to
create customer delight and business can garner value from customer in
terms of sales, profits and customer loyalty (Chahal, 2014).
1.2Impact of marketing environment on individual travel and tourism
business
The marketing environment affects the business of travel and tourism
industry. The business is affected by two types of environments micro and
macro. In micro environment the industry is influenced by internal factors
such as suppliers, market intermediaries, customers and competitors,
whereas in macro environment the business of travel industry is affected
by economy, society, technology, political and cultural environment.
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Customers are very sensitive in this industry and they need good
destination packages at low rates. Travelling habits also changes after a
particular time and consumers can switch to other travel agents. Suppliers
in the industry are different travel agents and if the company fails to
provide them proper commissions, they can give business to other
competitors. The numbers of domestic traveler agents decide the
business of individuals. Competition in the industry influences the
business of industry by giving rise to price wars (Kwon, 2008).
Thomson holidays operate internationally, so the macro
environment influences operations of company. The state of economy,
interest rates, currency exchange rates as well as the industry ownership
and wealth distribution in society decides business growth. The
technological environment such as product technology and the global
distribution of operational system is very important to be known. Social
and cultural environment of different countries affect travels and tourism
business as the customers have different cultural believes and values.
Now customers have become socially concerned about the environmental
issues so they prefer to visit safe and healthy places. Political environment
includes government policies, taxation system also influence operation of
individual travel and tourism business (Garrod, 2005).
1.3Factors affecting consumer motivation and demand in travel and
tourism sector
The buyer’s behavior plays an important role in demand of travel
and tourism products and services. There are different factors in travel
and tourism sector from which the customer can be motivated such as
Physical motivations, cultural motivations, personal motivations, prestige
and Status motivations etc. Every customer wants safety and security and

if selected traveler company provides medical and other facilities then
customer will be motivated to use the services of that company. Cultural
influences the buying behavior of the individual. Like some people are
born in spiritual families then they are inclined toward visiting spiritual
places, individuals from nuclear family can search the options for
adventurous places. Advertisements of the travel packages can also be a
motivating factor. If Thomson holidays will be able to create customer
value 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 which
says that buying process starts with need recognition. First the customer
plans out to go for outings after that he searches the available
destinations and travel agents having the various travel packages. The
customers then evaluate the available options according to their own
needs. After selecting the destination and the traveler package last stage
is the customer experience from the particular traveler agency and its
services. If customer is satisfied then he/she will come again for the same
or other services. Delighted customer becomes a source of promotion for
the company (Wong and Kwan, 2001).
1.4Principles of market segments and use of marketing planning
In travel and tourism sector customers cannot be served in a similar
way so the company needs to select only those customers who can serve
well and profitably. In order to create value and satisfy the customers the
company should decide whom to serve. The task can be done through
market segmentation. In the segmentation process, the company can
divide the market into groups having similar needs. Then company goes
for 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 can
be segmented such as; demographic, economic, psychographic profile,
purpose of travel, buyer needs & motivations and buyer behavior or
characteristics of product usage and the price. Market segmentation helps
the business in marketing planning as having knowledge about particular
segment’s customer needs and wants, company can design its marketing
mix. The product can be created within budget criteria of target
customers (Andreu and et.al, 2005). The company can adopt promotion
strategies by which the target consumer can be attracted. Thomson
Holiday Traveler Company desires to create a cultural package of six days
to visit the Denmark, Amsterdam, Lisbon and Porto; it can be done
through proper segmentation of market. The company can decide the
package price and promotion by analyzing the demand in the marketplace
(Middleton, 2000).
TASK 2
2.1 Importance of strategic marketing planning
Strategic marketing planning is a process of. It includes all the
decisions used to formulate and implement strategies designed to achieve
the marketing objectives of an organization. A strategic marketing plan
helps a business in identifying the goals of a particular business and it
also gives the in-depth information of target markets and potential and
existing customers. This information will help in taking long term business
decision. Effective marketing plan can help company to decide its
marketing activities. Having a strategic marketing plan business can
develop its budget plan and can decide in what manner business can use
its available resources in different activities. This marketing budget will

help the company in reducing its cost and time. In the case study
Thompson management wants to offer a cultural holiday package. For
that purpose firstly business had to develop marketing plan and principals
of strategic marketing planning will help mangers to plan the marketing
activities.
Travel and tourism organisations goal is to understand customers’
demands and create value satisfaction. Strategic planning helps the
companies to plan their strategies according to the market. It involves
situational analysis in order to identify factors of both internal and
external environments that could impact on the achievement of objectives.
Strategic marketing planning assists the company to identify its strengths
and weaknesses. By evaluating external environment one can know the
possible opportunities and threats of business. Company can know areas
of product life cycle. It will help the company to identify the possible
opportunities to develop a new product. Strategic marketing in travels and
tourism industry can be done through tourism lifecycle. The different
stages from which tourist area passes through are exploration,
involvement, development, consolidation, stagnation and decline. After
the decline stage a further step has to be taken in order to maintain the
desired position. It also helps the company to have competitive advantage
as business can develop its superior strategy by identifying the strategies
of its competitors. So strategic marketing plan creates a two –way
advantages for business as at one side it helps in designing the marketing
pan while utilizing the available resources in an efficient manner. On the
other hand it helps the business to minimise its cost on marketing
activities (Kozak, 2002).

2.2 Relevance of marketing research and market information to managers
in travels and tourism
Marketing research is the process of collecting marketing
information in a systematic manner. The business can further integrate
that data into an in- depth analysis, which can help the organization to
achieve long-term marketing goals. Thompson holidays needs to collect
market information by which they can offer a cultural package according
to customer needs. Marketing research in the tourism industry is about
understanding that in what manner the placement of marketing elements
such as product, price, promotion and distribution should be in order to
meet customer needs in order to succeed in the marketplace. Through the
market research travel agency can anticipate and identify the demand of
existing and potential customers (Gök and Hacioglu, 2010). Through
market research a target market consisting of a whole group of potential
customers can be developed and individual customers can be satisfied.
Market research gives all the needed information by which marketing
strategies can be developed (Raimund, 2008). The information collected
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through marketing research can give the information about competitor’s
marketing strategies. The management of Thompson holidays can
compare their marketing plan with the plan of Rivalry Company and this
will help them to create a effective business pan which will attract more
customers. The research plays important roles for managers as they can
forecast budget for future sales. Market information helps the managers in
taking effective business decisions.The activities in marketing research
should be planned in order to take specific decisions that drive marketing
strategies. Having market information companies can forecast the future
sales of travel packages and can also measure current demand and the
tourism trends. The company has to maintain proper marketing
information 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 detailed
information about individual customers in order to maximize customer
loyalty (Eliot, 2013).
2.3 Assess the influence of marketing on society
A company operates for a society not only for an individual
customer. Marketing operates in an environment external to the business
unit so it influences society in both ways positive as well as negative.
Marketing’s relationship to its external environment has a significant
effect on the success of organization. The important function of marketing
in tourism industry is to understand needs and likes & dislikes of
customers. Marketing helps society to become aware about the products
that can satisfy their needs (Dobrivojevic, 2013). The role of travel
agencies is to offer such a product that can meet customer needs. The
company has to follow the existing rules and regulations in marketing

practices. The concept of consumerism is to be followed in which
customer is to be given priority by providing quality product at fair prices
and at the right time according to its convenience. Social responsibility in
marketing has to be considered by which consumer satisfaction, and
societal well-being can be given equal value (Retseptor, 2005). Marketing
ethics and social responsibility are the issues in marketing. In the travel
and tourism business it is important to deliver the services in an ethical
way in which, customer can be delighted. Companies need to reflect
ethical behavior while providing the services to the firm. Companies
should make the customers aware about all the correct information while
offering then a travel package ( Oh, Kim and Shin, 2004).Thomson has to
choose a promotion mix plan which can attract the customer from a target
market. The marketing activities should give a positive message to society,
in this way the more customers can be attracted toward a new cultural
holiday package.
Figure 1 Thomson holidays cultural destinations
(Thomson Holidays, 2014)

TASK 3
3.1Discuss issues in product, price and place element of marketing mix of
London Gatwick airport
Gatwick airport is second-largest international airport and
the second-busiest in number of total passenger traffic in United
Kingdom. It is also Europe’s leading airport for point-to-point flights. The
marketing mix of the airport and the issues related to it are as follows:
➢ Product: The products of airport are its services such as Flight
tracking, shops, taxi services, communications, security,
accommodations, hotels, restaurants, lounge, parking facility for
more than 8 days etc. In its hotel services it has 141 rooms with
fixed bathroom with shower, high speed Internet and paid TV
facilities. The product of the airports is intangible in nature so the
main issue related to services of airport is that of standardization.
➢ Prices: As the airport is an international airport it has to set the
prices of different services at very high. To set the prices is very
difficult as the services are intangible. The airport parking is for both
long and short term parking is available at huge charges, this
becomes a biggest issue for Gatwick airport marketing mix. The
company can offer lower charges on flights and other services to
attract more visitors (Eliot, 2013).
➢ Place: Gatwick is located in the Southern and Northern portion of
London city which helps them to attract more visitors. The customer
can easily get taxi service from anywhere in the city. The issue
related to place is Gatwick airport is the taxi drivers charge a big
amount from customer. The management should fix the charges by
collaborating with taxi owners.

➢ Promotion: The airport promotes its services mostly through online
booking counters and websites. The flight arrivals and departures
information has also been given on website of company. The
customer can compare the services with other flights; this creates
the problem of switching customer to another rival company. Their
existing customers are also the source of company’s promotion. Low
quality of service delivery always becomes cause of customer
dissatisfaction. 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 sector
Gatwick airport is the part of Aviation industry which is service
sector industry. The service includes some characteristics such as: lack of
ownership, intangibility, inseparability, perishability and heterogeneity.
Gatwick airport marketing mix for marketing a service is different to
the marketing mix for products. The extended marketing mix for service
sector is people, process and physical evidence. In case of London
Gatwick Airport, these elements play important role in order to create
market image.
➢ People: People refer to employees and the staff of Gatwick airport. It
also includes the technical staff, fuel dealers and the other
employees. People are important because through them company
provides its services to its customers. Service provision and be
judged by customer based on the people representing the
organization. For success of the company it is important to maintain
quality relationship with customers. Employees require appropriate
interpersonal skills, attitude, and service familiarity in order to
deliver a quality service. Staff can be motivated towards
organization goals by providing proper trainings. A quality staff can
attract more customers (Morrison, 2013.).
➢ Process: The element of marketing mix refers a systems used to
deliver the service. The services are provided to the customer
through a process in service sector. For the airport, process should
in the manner to deliver efficient service in quick time. The process

of delivering services has to be easy and should be understandable
by the customers. In process, it is important to have customer and
service provider at a similar place. A trained employee can deliver
the services in effective manner in order to satisfy the customer
(Simkin, 2012). The importance of process marketing mix at Gatwick
airport is if customers are coming late in the airport premises, he
/she could be given quick and clear instructions for luggage
checking, place of arrival, timings of flight arrivals. So customer can
make decision quickly. Through the process mix customer can be
satisfied in a better way.
➢ Physical evidence: It is the material part of a service which a
company from its competitors. In the case of Gatwick airport
physical evidence, includes; Packaging, Internet/web pages,
brochures, furnishing of airport and its nearby area, signage on
aircraft, uniforms of staff, business cards. For the tourism industry
this marking element plays an important role as customer needs
cleanness and friendly environment. If they don’t get such
environment they can switch to other companies. The environment
has to be attractive in which the product or service is delivered in
order 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 then
managing products. Products can be standardized whereas the services
cannot be to standardize. A service is more difficult as it is affected by
factors outside the service provider’s power.
3.3 Concept of total tourism product on London Gatwick airport
The customer can be satisfied through providing a product and
services having feature to fulfill needs and wants of customer. The total
product concept of London Gatwick airport means airport should have the
facilities to satisfy its customer. The customer should get all the services
under a single roof. The airport could provide taxi services and cab

services to its customers. The parking services for private cabs can also
be given foe a specific time. The company can provide different the
facility to land the private flights and jets for consumer. Customers can
book the tickets over telephone through mobile banking services. At the
time of book their tickets customer can book taxies or cabs for the place
they are going. It will give customer the value for their time (George,
2008). The accommodation services can be given as quickly as the
customer reaches at the airport premises. The business can offer the
drinks to customer as they come into flights. The airport can have the
facility to keep luggage for the specific time. In order to attract the upper
middle class and the middle class customer company can offer the cheap
flights with god service quality. Airport should have play station for kids so
they can enjoy the free time. Personal transportation facilities for heavy
thinks can be included in the services of airport (Panda, 2007). These
were all the suggestions for London Gatwick airport to introduce total
tourism product concept in its operations.
TASK 4
4.1 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 and
selling products and services to existing and potential customers.
Promotion plays an important role in marketing as it promotes sales and
helps company to capture market share. It is a specific element of
communicating the value of brand, products and services to target market
customers. The foremost aims of promotion are to increase primary
demand, or desire for a particular product category and to increase
selective demand, or desire for a specific brand. The basic task of

promotional campaign is to let customers know about company product
which can satisfy the needs of various customers.
The activities of promotion convince customers with the benefits
products and services. The natures of promotion mix activities are to
inform the market about the availability of a product. To promote product
company needs information pertaining to target market consumer. From
the information marketer can effectively manage time and resources in a
better way to reach the right customers. The methods used promotion
mixes are depends upon the company’s goals, priorities, markets and
industries. Promotions normally include advertising, publicity, sales
promotions, public relations and many more. It used to create a
favourable image for a company. In promotion campaigns Company do
not sell directly product to customers but try to increase sales of a
products and services.
As soon as company produces products and services for target
customers the main role of business is to communicate with target market
to the features and benefits of products. In order to communicate with the
customer they can follow the marketing communications process. In this
firstly company sets the goals and objectives, identifies the audience, and
after that it develops message and its strategies to make aware potential
customers about the message. The message can be communicated
through various communication channels. At last evolution of whole
process has to be done in order to measure the success. Promotion mix is
the element of marketing through which company passes its message to
its audience. The main task of promotion mix is to inform, persuade and
remind 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 personal
selling, message can be delivered to specific individuals and two ways
communication process can eradicate the irrelevant question from the
customer mind and the customer can be well motivated. Sales promotion
can be effective in changing behaviour for a short time and in promoting
sales. Public relation is a cost effective way of promotion, media plays an
important role in developing relations with potential consumers on the
other hand direct marketing can be prepared quickly and facilitate relation
with consumers. The hotel management can directly communicate with
the customer through web site. The information of new boutique hotel and
its service can be posted at company’s web site. The other channels of
direct marketing are brochures and catalogs, telecommunications or
television and radio, internet via e-mail and electronic messaging, print
media such as newspapers and magazines and the specialized channels
such as electronic kiosks (Ceylan, 2008). The company has applied all
these promotion tools to promote is previous services and it had created a
huge success for the services. As company is an international brand
promotional activities will help company to attract customer around the
world.
4.2 Integrate promotion campaign for Sheraton Hotel
The Sheraton Hotel is a leading company operating in tours and
travels industry. The company is going to launch its boutique hotel which
has several luxurious double rooms and the company wants to target the
cultural and upper middle class customer and the hotel is planning to
launch it after summer. The hotel can promote the product through
television advertising campaign so the message can reach to the mass
audience. Another source of promotion is to tie up with different travel

agents like Thompson Cook. By this the company can reach directly to the
customer like advertising through direct and indirect marketing. Sheraton
Hotel can also put hoardings and banners on the airports. Advertising
through broadcast videos will create image about the message. As the
target of the business is cultural and upper middle class customer so
company 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 and
provide enough information to them. In helps the business owners in

holding customer interest long enough to motivate a purchase. Hotel
Sheraton has more than 800 hotels and resort all over the world. Now the
management want to promote its newly launched boutique hotel. For the
promotion of new business unit the mails can send out to past and
present guest. The mails can be sent with some discount coupons .the
brochures can also be given to the local tour operators so they can give
them to their customers. The company can do two types of promotion,
open promotion and closed promotion. In their open promotion customer
should be given a discount on their stay for long time on the other hand in
closed promotion the guest can be given free breakfast or dinner for a
certain amount. In this way company can promote its boutique hotel and
services.
CONCLUSION
The above report explains the importance of marketing concepts in
travels and tourism industry. Thomson holidays which is tourism company
and wants to create a culture holiday package of 6 days , this report
helps the company to assess the role of marking research and strategic
marketing planning to attract the customer towards the package offered.
This report explains the various factors affecting consumer motivation and
demand for the culture holiday package.
The marketing mix and the concept of total tourism product for London
Gatwick airport have been explained. From the report it can be concluded
that Gatwick airport can create the strategic brand image while using
extended marketing mix. The reports also suggest the different
promotional techniques for a new unit of Sheraton hotel such as,

advertising, sales promotions and online marketing. These all promotional
activities will give benefits the new hotel to attract a large customer group.
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Destinations Aiming at Attracting FDI by Applying Porter’s Five Forces
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Middleton, V., 2000. Sustainable Tourism: A Marketing Perspective.
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