Marketing In travel and tourism
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Unit 5 Marketing in Travel and tourism for HND TTM domain helps to understand the importance of marketing for TTM. Travel and tourism management is just not about maintaining the tourism destinations but it also deals with the way in which marketing applies to these destinations. Marketing plays a vital role so as create word of mouth for the attractions for creating awareness and attracting potential visitors.
Sample Assignment Unit 5 Marketing in Travel and tourism
Assignment on Marketing in Travel and Tourism
1. LO1. 4
1.1 Discuss the core concepts of marketing for the travel and tourism sector. 4
1.2 Assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations. 4
1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector 5
1.4 analyse the principles of market segmentation and its uses in marketing planning. 6
2. LO2. 7
2.1 Analyze the importance of strategic marketing planning for a selected travel and tourism business or tourist destination. 7
2.2 discuss the relevance of marketing research and market information to managers in the travel and tourism sector 8
2.3 Assess the influence of marketing on society. 9
3. LO3. 9
3.1 Discuss issues in the product, price and place elements of the marketing mix. 9
3.2 Assess the importance of service sector mix elements to the travel sector. 10
3.3 Apply the concept of the total tourism product to an individual tourism business. 11
4. LO4. 11
4.1 Assess the integrated nature and role of the promotional mix. 11
4.2 Plan and justify an integrated promotional campaign. 12
One of the most competitive industries is the travel and tourism industry which is dependent on a number of marketing principles (Roslan et al. 2018). It becomes very important for the travel businesses to understand the market, environment as well as the functions to achieve the business objectives. The main intent of this report is to identify the key concepts and principles of marketing along with the factors affecting marketing environment and the role of marketing.
As a management trainee, it is very important to understand the core concepts of marketing to promote London as a tourist destination. The core concepts of marketing are consumer wants and needs along with meeting customers’ demands and expectations. The core concept of tourism marketing in London is the product which is the tourist destination itself, i.e. London. While travelling in London, customers always wants that transportation in the city should be quick, proper hotel and resorts facilities along with restaurant and food joint should be available so that the needs of the customers are addressed (Munar and Jacobsen 2014). Also, customers expect from Visit London to offer best deals to them with regard to sightseeing tours, accommodation as well as restaurants so that they are able to book the travel online at reasonable prices. Customers are satisfied when effective services in relation to London sightseeing tours, oyster ad travel cards along with accommodation is provided at competitive prices. Customers demand tourism products in London in the form of different places to visit, stay and eat which satisfy their leisure, business as well as pleasure needs at places other than their own residences. All these are the core marketing concepts which are to be considered in order to promote London as the tourist destination.
1.2 Assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations
The tourism marketing environment of London consists of two types of environment-micro and macro. Micro environment consists of the factors such as suppliers, customers and competitors in London. The suppliers of tourism include the hotels, restaurants and theatres. With regard to customers, it is seen that customers’ preferences keep on changing as a result London since 1990’s has become the most popular destination. However, competition has aroused in the travel and tourism sector in the UK (BUhalis 2015). Considering the micro environment, it is seen that travel and tourism business is impacted by the changing preferences of the customers. For instance, if the number of suppliers reduces in London, then the travel business has to suffer because the demand of the tourists is not met properly. Likewise, the destination is also affected by the suppliers because if the suppliers are less, then the popularity of London as a destination also reduces.
Macro environment consists of political, economic, social, technological and environmental factors. It has been analysed that politics and economy of the UK is stable which promotes travel and tourism in the country and thus the business flourishes. With regard to London as the destination, it is seen that the stable economy and the political conditions of the country attract the foreign tourists to visit London (Munar and Jacobsen 2014). Furthermore, it is seen that if customer sentiment is favourable then the travel business improves because hotel brands and airlines stand to gain.
London is a common tourist destination for business and leisure travellers. The factors affecting customer motivation and demand for London as a tourist destination are customer value, models of consumer behaviour, types of buyer behaviour and tourist motivation and determinants.
- Tourism motivation and determinants- The main factors affecting customer motivation and demand are products which influence their decision making For instance, for business travellers in London, Visit London provides discounts in stays during weekends.
- Models of consumer behaviour- It includes loyalty, psychology and sociology. Tourist demand in London is impacted by the loyalty of the leisure tourists who only taken packages during holiday season. Also, customer motivation is impacted by the psychology of the customers and thus, discounts are provided to them (Fang et al. 2016).
- Types of buyer behaviour- There are three types of buyer behaviour- low level, medium level and high level involvement. High level of customer demand and motivation involved high product involvement on the part of business and leisure tourists in London in which the end goals are met.
- Customer Value- Customer value in the form of high quality services in accommodation, transportation, sightseeing play an important role in increasing customer demand and motivation.
The principles of market segmentation involve characteristics on the basis of which segmentation is done. It involves geographic, psychographic, demographics as well as behavioural segmentation. Geographic segmentation is considered to be a useful segmentation in which the customers are divided as per the continent, nation and region, whereas, demographic segmentation considers the factors such as age, gender and income of the customers which helps in marketing planning (Chernev 2018). Psychographic segmentation discusses the psychographic factors like lifestyle and social class of customers. Behavioural segmentation helps in the evaluation of the company and the products in accordance with the behaviour of the customers.
In destination marketing planning of London, the principles of market segmentation can help in segmentation of the market to target the right audience for promoting London as a tourist destination. Considering geographical segmentation, it is seen that a number of European as well as Asian people travel to London for business and leisure needs and thus, air fares can be made cheaper in order to promote London (West et al. 2015). In addition to this, young people between the age of 20-40 years travel a lot and the people belonging to middle income and high income can be provided with more benefits. Psychographic segmentation discusses that the tourism products and services are to be provided in London as per different social classes and lifestyle. As per behavioural segmentation, the schemes and discounts can be provided at the times of holiday season such as Christmas.
To identify and analyse the appropriate market segments of London Tourism, secondary data approach has been used. Through the secondary data collected, it is has been identified that the main customer segments that are to be targeted are the travellers from Asia and Europe who are between the age group of 20-40 years and belong to middle and high income groups. The discounts are made available during the holiday season.
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2.1 Analyze the importance of strategic marketing planning for a selected travel and tourism business or tourist destination
The strategic marketing planning for London as a tourist destination is of great use in identifying the target customers’ requirements and needs. It has been identified that modern customers want all the information related to tourism over internet for their convenience (Mattsson and Chadee 2015). Thus, travel and tourism providers in London such as Visit London have started providing online operations to promote London as the tourist destination. This has been done through the strategic marketing planning analytical tool, SWOT analysis.
|Strengths Existence of attractive destinations like Buckingham Bridge and British Museum Strong accommodation facilities and tour operatorsNiche products- heritage and culture||Weaknesses Lack of online portals for travelStaff turnover|
|Opportunities Cultural tourism potentialInnovative products||Threats High competitionBureaucratic difficulties|
Considering the SWOT analysis, it is seen that strategic market planning is important in the planning process because through the identification of weakness, Visit London has provided with the travellers with online portals for travel related information (West et al. 2015). The market research through SWOT analysis helps in promoting London as a tourist destination because the opportunity relating to innovative products and cultural tourism potential. However, some information like the environment has not been provided in SWOT analysis.
Another strategic marketing planning as well as market research tool is the Product Life Cycle (PLC) which consists of four stages- market introduction stage, growth stage, mature stage and saturation stage (Mattsson and Chadee 2015). At the introduction stage, there are low sales which help the travel service providers such as Visit London to identify the sales at the inception phase. Further, in the growth strategy, the brand loyalty is enhanced through which it is analysed what will be the market share. Mature stage is that stage wherein sales volume of the tourism products and services stabilises and the last stage consist of entering into the declining stage.
With the help of analytical tools such as SWOT and PLC, it is concluded that Marketing Planning for London as a tourist destination has played a significant role in identifying of the opportunities and the customer requirements along with the identification of sales at different phases.
2.2 discuss the relevance of marketing research and market information to managers in the travel and tourism sector
Travel and tourism sector managers at London tourism are benefitted though the market research and market information. It is seen that more and more travel related information with regard to preferences of customers, existing trends and other factors are identified which are helpful for the travel managers at London tourism to formulate strategies and decision making (Gummesson 2014). For instance, with the help of market research through SWOT analysis, travel sector managers of Visit London came across the opportunities of London as the tourist destination as a result of which the travel provider has introduced a separate section of literary tourism which is fast gaining pace in London. Apart from this, the process of forecasting and demand measurement is facilitated by the sector managers as they learn about the market supply and demand forces affecting the travel and tourism of London. Also, market information system gathers market research data which is distributed to travel managers with regard to informational needs on a regular basis. Hence, market research and information is of significant importance to travel managers at London Tourism.
Tourism marketing has some positive as well as negative impacts on the society which comprises of the people of London as well as the visitors. The positive influence of marketing such as public policy helps in the operations of the travel business in meeting the needs of the visitors. It is seen that a lot of legal considerations are involved in the business which provides the visitors with protection and safety. There are many social ethical considerations such as the responsibility and ethics which provides protection to the visitors (Kolcun et al. 2014). However, considering the environmental aspect, it is seen that environment of London has already been affected badly due to heavy tourism and the excessive marketing will in turn impact the society of London due to environmental depletion. Thus, this is the bad effect on the society, especially the people living in London. Apart from that, consumerism creates dual influences in which the high priority is given to customers and low priority to the visitors. It is seen that positive impact is created in the customers, whereas, negative impact is created on the people of London who are providing services to the clients. Thus, it is seen that both positive and negative influences are created by the marketing on the society.
The four Ps of marketing are Product, Price, Promotion and Place. For the UK tour operator, Thomson Holiday Group, below are the elements of marketing mix.
- Product- It includes hotels and resort packages in the UK along with food and airline packages. In addition to this, the cruise lines are also offered to the travellers.
- Price- Competitors and customer pricing strategy are followed because customers always look for discounts and offers.
- Place- To increase the market share, Thomson Group sell its products and services in the market of the UK.
In designing these elements, a number of issues and considerations were taken care of. In designing the tourism product and service, it is seen that the nature of the products and services are intangible as a result of which sometimes customers are not able to understand the value and benefits (Prebensen et al. 2018). Moreover, product differentiation is another issue in which Thomson has to think outside the box to provide the same products as provided by the competitors. The issue in price involves the price setting consideration. Travel is a very competitive industry in which the price should be less and the quality of the service should be high. Thus, price is set lower which reduces the profit margins. Issues in place involve the physical distribution and logistics.
To assess the marketing mix of Thomson group, information is evaluated through analytical technique along with marketing mix technique.
There is a difference in product marketing mix and service marketing mix. In addition to the above elements of product marketing mix, service sector elements are also be added to the travel sector (Liu and Chou 2016). These people, processes and physical evidence which are important in determining the marketing of travel services. With regard to Thomson Group, below are the service sector elements-
- People- It comprises of the staff and the employees. It is seen that the staff and the employees of Thomson Group are effective and skilled which is useful in gaining trust of the customers.
- Process- proper training and development opportunities are provided to the employees.
- Nature of services- The tourism services such as food and accommodation are provided which are intangible in nature.
- Interactive marketing- One-to-one marketing practice which centres on individual prospects and customer actions. In this, the customer behaviour and preferences are taken into consideration with regard to air tickets, hotels and events for marketing initiatives. It is different from traditional marketing and thus, provides a wonderful travel experience to customers (Dolnicar and Ring 2014).
- Partnerships- Effective services are provided to the customers through partnerships with hotels, airlines, resorts and restaurants.
From customers’ point of view, Total Tourism Product (TTP) is gaining wide popularity in modern travel business. As per TTP, combinations of all the elements which are consumed by the tourists during the trips are provided to them (XU et al. 2016). The concept of total tourism product states that various components are integrated based on the activity of destination. The tangible and intangible components are provided are bundled in TTP in order to provide effective services to the customers. On applying the concept of TTP in Thomson Group, it has been identified that the number of sales has increased after the combination of different elements such as sightseeing, accommodation, air flights and food (Huang et al. 2016). These components are integrated so that the customers need not to take extra efforts for booking different activities through different tour operators. Hence, Thomson provides integrated services to the clients.
To discuss the concept of TTP in Thomson Group, a combination of theoretical and practical approach has been used. First of all, the theoretical aspect of TTP was identified over internet and the practical approach was used by applying the concept of TTP on Thomson Group.
Substantial activities that are used are identifying, learning, learning as well as applying the concept of TTP to Thomson Group product and service offering.
Promoting a product or service is important in order to make the customers aware which in turn helps in increasing the sales of the Company. Instead of opting for a single mode of promotion, a number of modes are integrated in order to promote products and services. The landscape of the promotional mix has been changed with the introduction of integrated marketing communications strategy (Kolcun et al. 2014). With regard to Thomson Group, it is seen that the promotional mix used by the travel operator plays a significant role in making the existing and the prospective customers aware of the product offering along with inducing the sales through repeat purchases. All types of promotional elements are used for advertising such as newspaper, television, social network as well as billboards. For sales promotion, it makes use of coupons and exhibitions and for public relations; it uses press releases and conferences. In case of personal selling, sales meetings are used in order to induce the purchases. This integrated promotional mix has offered the customers a seamless and a unified experience to interact with the brand. Since modern customers are available on different platforms, it is important to connect with them through integrated promotional mix. Thus, Thomson Group is providing much convenience to customers.
Considering the existing integrated promotional campaign of Thomson Group, below integrated promotional campaign is suggested to the group-
Advertising -Thomson Group currently is using only television and newspapers to advertise its product as well as service offering along with schemes and discounts. However, it is advised to the travel operator to place its advertisements on magazines as well. In addition to this, the frequency of the adverts needs to be increased in order to attract a large number of audiences. The creative strategy that can be used is that the adverts can make use of creative travel quotes and slogans.
Public Relations- Thomson Group is currently using press releases and press conferences. However, the matter relating to sustainable tourism development has not discussed and thus, the audience should be provided with information relating to sustainable tourism development. This will help in making a positive image in the minds of the customers (Kolcun et al. 2014).
Sales promotion- The coupons should be provided more often during holidays and seasonal vacations.
Social media marketing- This should be major used to promote the products and services. Social media is very less used by the Company. However, this particular strategy is very important to influence the modern customers who spend their maximum amount of time on social networking sites. Thus, Thomson Group needs to increase its online presence on Facebook, Twitter, Pinterest and many more. Creative approaches in the form of videos of guests providing feedback, hashtags and pictures can be used.
Innovative and creative thoughts are used such as use of hashtags, videos, sustainable tourism development are provided to amend the integrated promotional mix of Thomson Groups. They were not so effective in their campaign and thus, the integrated marketing campaign is provided to help them in reaching to the larger audience.
It is concluded that marketing is one of the most important activities in travel and tourism sector. A lot of market research is required in order to identify and assess the marketing strategies and decision making. Travel and tourism is a competitive market and thus, well planned marketing strategy is required. Furthermore, it is very important to integrate different marketing promotional tools in order to benefit the customers as well as the organisations.
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