INTRODUCTION on Marketing for Tourism & Travel
Market is about identifying the target customer needs, wants and demand, then satisfying those needs in order to make profit. Market in Tourism and Travel industry is different from marketing of other product because product we can see, and then decide to buy it but in Travel and Tourism industry we can’t see service firstly we buy it. So it is very important provide service according to customer needs (Bernick and Boo, 2013). The present report will talk about the various aspects of marketing and their methods in respect of particular organization (Travel action)
Travel Action is a UK based Travel Company. This company is 9 years old. Their aim is to provide a grip of lifetime incredibility with low prices. Diving, surfing, cycling/mountain bike, trekking, kayaking, skydiving, ski and snowboard packages are specialization of firm. They also provide Tailor made facility, if anyone don’t find suitable package according to choice, then company will endeavor to tailor make one to suit your needs and budget. They offer short Holiday packages like skydive, mountain bike, windsurfing, cycling, adventures tours, packages. Packages which are provided by then they are basically based in exotic, long Haul associations. They have packages are for all levels, whether the person is beginner or an experienced professional. All supplier of association are well qualified and experienced. Travel action provides discounts to all members of registered UK clubs and Schools. They also provide group discounts. All flight booked by them are protected by ATOL operators. They have also airline packages for customers. This Business association is a member of Travel Trust association.
For the travel action packages the company always tries to provide their customers a traditional and a friendly experience. They also try to provide accommodation facilities and they try that the facilities can match with the local background and culture. The holiday packages of the company are mostly based on the long haul destinations, such as Mexico, Peru, and Thailand. They have various contacts all around the world and also have the active operators. The company also acts as an agent for many travel agencies and major tour operators.
Core marketing concepts in travel and tourism sector and impact of marketing environment
Concepts of core marketing refers about prediction and recognition of needs, wants and demand of a target customers in order to satisfy those needs which will make profit to the company. In travel and tourism sector concepts of marketing plays a different role in which they gain the satisfaction from the individual and group of tourists (Fyall and Morgan 2009). Here the company finds the need, desire and demands of the tourist and then they offer the products and services according to their need. In travel and tourism, organization directly contact with the target customers and they may me be domestic or international customers (Fesenmaier and Uysal, 2011). In travel and tourism sector it consists of several participants like:
- In accommodation it comprises of hotels and resorts.
- In transport it comprises of air, water and surface.
- In travel it comprises of travel companies and travel agencies.
- Food and beverages
Marketing environment means those forces and factors which affect the ability of the business to maintain and assemble a successful relationship with its customers. Travel Action affect from the impacts of several marketing environment which affects the efficiency of its business (Fyall and Morgan 2009).
- Political factors: Political factors means involvement of government in travel and tourism sector. This factor affect the budgets and packages of the company as there is change in taxation structure, rules, regulation and other government policies
- Economic factors: An economic factor affects the travel Action in terms of its business, profit, growth and development during the time of recession. As in recession people spend less and save more (Sirakaya and Woodside, 2005)
- Social factors: social factors specifies about the change in lifestyle, trends, culture and standards of tourists. Due to this it affects the current operation of the business.
- Technological factors: In current scenario there is always some advancement in technology sector as now customers directly book their tours through websites and mobile (Harrison, 2006). Due to advancement in technology marketing and promotional activities of the company are also changes
Factors motivating the travel and tourism consumers leading to affect the demand of travel and tourism products and services.
Motivation is a cause of psychological feature on health that motivates the inner drive of person to achieve a desired goal. In travel and tourism factors of motivation plays vital role for the consumers as these factors motivate them to travel around different places (Harrison, 2006). Demand of consumers and motivation in travel and tourism specifies about their needs, wants and demand. Travel action pays more emphasis on the factors which motivate the consumers of market and helps the business to increase its profitability.
Physical factors motivate those consumers who like the presence of some actions in their holidays like surfing, trekking, skydiving, wind surfing etc. in cultural factors tourists are motivated on the basis of the culture of that place, heritage places, ancient buildings, palace etc. (Hudson and Miller 2005). Travel Action also offers the products and services according to the need of consumer wants as some tourists are more motivated towards shopping areas, parks and many other places which may be based on some themes. The company works on all those aspects which satisfies the inner drive of tourists that they had toured all around the places and satisfies their need complete.
In travel and tourism market segmentation helps the company to serve its customers effectively as they able to reach and serve them as per their segmentation. According to the market segmentation company makes its marketing strategies and attracts the consumers towards their side. Travel action has segmented its market according to the different types of consumer groups (Laurie, 2004).
- Lifestyle: In this segment they have categorized the consumers on the basis of interest and opinions. Like for adventure tourists they offers action holidays which includes diving, trekking, mountain bike, surfing and many other actions (Market Segmentation., 2013).
- Demographic: In demographic the market is divided into age, family, gender, income level etc. For example luxury hotels and resorts for rich tourists and hotel and motels for middle level income people (Middelton, 2001).
- Situation: In this section company has divide according to the usage or situation of the consumers. For example some travelers want to need short break for at one destination and at other place they may want long break
- Image: Here the company has divided the destinations on the basis of image of that destination (Middelton, 2012). Like travelers who are more attracted towards theme based parks, heritage places etc.
Principles of marketing segmentation help the company to attract the customers towards their side by a systematic design of marketing planning process. By effectively using this principles company make an aspect of competitive advantage and lure the consumers to spend their money towards the product or services of that company. In travel and tourism they can use the principle of time limit offers, organizing the contests by inviting the customers for free vacations, free tickets. They can also appeal the customers with the help of advertising and also focus on those customers which are previously experienced their services in past.
Importance of Strategic marketing planning in travel and tourism sector
Strategic marketing planning is the systematic process which is followed by the company to design and develop the effective marketing strategies by the management of the organization. Travel action has to design its marketing strategic planning in such a way that they should analyze the target customers and market appropriately. They should also include investment strategies for advertising, promotional plans and other marketing plans which will lure the consumers towards their side (Morrsion, 2004). Effective strategic marketing planning will help the travel Action to develop their business of travel and tourism and increase their market growth and market share in their industry. But all this goals can be accomplished only when the company develop its strategies according to deep research in the market and will satisfied the wants of the consumers (Marketing Strategy and Planning, 2013).
This strategic marketing planning will help the company to survive in several dynamic situations and to fight with the environmental forces. A flexible plan should be implemented which determines the several holiday packages and plans for the tourist in different seasons and in different conditions. Effective strategic marketing plan generates more revenue and profitability to the company and can make a good brand image in travel and tourism industry.
Relevance of marketing research and benefits of market information to travel and tourism managers
Marketing research helps to identify the marketing opportunities, monitor the performance of marketing, evaluation of marketing actions and to improve the process of marketing. In context to travel and tourism sector marketing research is very important to know the needs and demand of tourists. With the help of marketing research Travel Action can identify the issues, problems and design the new methods of marketing with the help of collection of market information (Morrsion, 2004). According to the two different categories company can do marketing research and it will help to their business. First is consumer marketing research, through this research company being able to understand the behavior, preference and attitude of tourists. Second through business to business marketing research, company will know about the marketing strategies of their competitors and also about their several products and services (Marketing Planning and Strategy, 2013.).
Market information of travel and tourism will help the managers of the company in several ways like to take the decision regarding the new products or services offered by the company and to determine the changes if they know about the behavior and preference of consumers that whether they should buy or not (Panda, 2007). By analyzing the catalogues, advertisement and through other sources managers came to know about the difference in products and services offered by their company.
Influence of consumer marketing on the society
Consumer marketing is one of the business technique in which an attempt is made to analyze, measure and improve the performance of customers as this focuses on the large section of the society. Marketing efforts of the company in travel and tourism will satisfied the needs of the tourist if its products and services are customized according to the customers. These marketing efforts of the Travel Action will encourage the consumers to purchase their products and services as they came to know about their product differentiation and other benefits offered by their company (Panda, 2007).
If consumer marketing will done affectively in the society it will influence the customers to know about the different places of attraction, tourist’s destinations and other places which are not known by the customers. Travel Action has to design those marketing strategies which will influence the consumers and attract them towards different travel destinations of the UK. The products and services offered by their company should be unique and in compliance with the need of the tourist people.
Concepts of marketing mix
In travel and tourism marketing mix tools of the company specifies about the several strategies of the business through which they are offering products and services to the customers. There are total seven P’s of marketing mix, before there are only four that are product, price, place and promotion. Three more tools are extended to it that is people, physical evidence and process.
- Product: In travel and tourism, companies offer varieties of products and services to its customers. Travel Action offers its products in different categories like
- Action Holidays
- Relaxation holidays
- Multi centre and round the world
- Corporate travel
- Price: The Company charges different prices according to the budgets and packages chose by the tourists (Marketing Mix, 2013). Their prices are based on the products chosen by the customers and according to the accommodation and services demanded by the customers.
- Place: Travel action offers its services at both national and international (Petrova and Mason, 2004). They offer their services through the help of retail travel agents, inbound tour operators and through other travel agencies.
- Promotion: A wide range of activities are performed by the company for its promotion like they provide information kits, personal selling, travel shows, public relations, advertising etc.
- People: The people who sell the products and services of the company are extremely important part of the company’s marketing process (Min and Ahem, 2005). They provide friendly services and through the help of mouth advertising they also attracts the customers towards their side.
- Process: To run the business operations of company in efficient manner. they are following a systematic process of administrating, planning, strategizing and distribution of its products and services.
- Physical Evidence: They are offering both tangible, intangible products and services which are giving positive and attractive services to customers.
Concept of total tourism product
Total tourism product in this industry refers about the group of different industries where every industry providing its services in its own way such as hotels, travel agencies, transport services, food and beverages and many other sectors which are providing services of adventures, sports etc. each one the sector is providing its individual product (Min and Ahem, 2005). When all this products combine together they provide a complete tourism product or tourism experience to customers. Specifically in tourism product the tourists do not buy the products, they receive the experience or totality of benefits from this sector.
If we considers from the view point of customers then they only wants the package of benefits and chose those products and services which provides them best package of benefits (Petrova and Mason, 2004). It includes better accommodation facilities, attractions, adventures tours, transport facilities, comforts during their journey. Tourism products also include the status and luxury in compliance to products and services.
Concept of integrated marketing communication and elements of promotional mix in travel and tourism
Integrated marketing communication in travel and tourism industry refers about the use of strategic communication plan by the company. This strategy means that the company should have one single harmonized communication marketing strategy; it is to be designed in such a way that it should reaches in every segment of market. The strategy is to be comprised of one single unified message (Panda, 2007). The goal of IMC is to build brands. It is more effective than mass media. In the case of Travel action under integrated marketing communication process it will integrate all the aspects of the marketing communication and work with coordination with each others in order to increase the revenue and to achieve maximum cost effectiveness (Marketing Communications, 2009.).
Elements of Promotional Mix in Travel and Tourism
There are many promotional activities which are used in Travel and Tourism. Following promotional activities are used by Travel action:
- Advertising: Advertising is a method to promote goods & services. The Ultimate aim of advertising is to increase sales. Travel action also used this method to promote their services. Firm is advertising through print media as newspaper, mass media, and electronic media as Television and giving direct mail to customers, and call to customers.
- Personal Selling: Personal Selling is another method of promotion which includes face to face selling. This process encourage buyer to purchase product.
- Sales Promotion: Sales promotion is another method to attract customers, in this method Firms give lucrative offers to customers as discount on couple travel (Marketing mix or Promotional mix, 2013). The aim of this promotion is that customer knows more about company.
- Public Relations: Public Relations is another way of Organization to communicate to public and media. It is friendly motivation for the customers to supply the products and services to them by maintaining healthy relationships with them. For instance Travel action use various modes like contributing in charity programs, speeches etc.
- Direct Marketing: Direct marketing is another method to communicate with person directly and tell them about product and services. Travel action also used this technique to communicate with person directly (Marketing mix or Promotional mix, 2013).
Importance of Integrated market communication and promotional mix in Business.
Integrated Promotional Campaign includes all the traditional and latest activities to communicate with customer. The main objective of this process is increase the revenue of company by exploring their activities. Travel action Company can use this strategy to develop their marketing strategy to influence the customer and Travels (Mehta, 2012). Firm can combine all the sources Google, email, social media and traditional activities to deliver a strong message.
The Major objective of this process is to increase the revenue of the company by exploring their activities for their customers and also enhance the awareness of their brand in the market to get financial benefits. This process will help organization to communicate the image of brand using various channels of communication to capture the market. It helps in establishing brand name in the mind of customers (Tracy, 2004). It is observed there is need of way which helps the business to grow and to increase the awareness of brand in public. It can be possible by the use of integrating promotion campaign because it is associated with various techniques and tools for brand of special emphasis on the domestic customers as well as global market.
From the above report it is concluded that Travel and Tourism industry is expanding day by day. Every company is trying to promote their company more so brand image can create in customers mind. Travel action is also used many method to promote their business. This firm use Strategic marketing planning and promotional mix to increase their Business area. It is also observed that integrated market communication plays a very big role in promotion (Ottenbacher and Harrington, 2009). Company can use this to create Brand image in Customer’s mind.
Books and Journals
- Bernick, N. L. and Boo, S., 2013. Festival tourism and the entertainment age: interdisciplinary thought on an international travel phenomenon. International Journal of Culture, Tourism and Hospitality Research. 7(2). pp.169 – 174.
- Fesenmaier, D. and Uysal, M., 201., Communication and Channel Systems in Tourism Marketing. Routledge.
- Fyall, A. and Morgan, M., 2009. Marketing in Travel and Tourism. 4th ed. Routledge.
- Harrison, D., 2006. Dictionary of Leisure, Travel and Tourism (3rd edition). Reference Reviews, 20(3). pp.52 – 52.
- Hudson, S. and Miller, A. G., 2005. The responsible marketing of tourism: the case of Canadian Mountain Holidays. Tourism Management. 26(2). pp.133-142.
- Laurie, G. and et. al., 2004. Expert opinions: Current pricing and revenue management practice across U.S. industries. Journal of Revenue and Pricing Management. 5(3). pp.237-247.
- Matz, S., 2008. Tourism marketing: Concept for event-tourism in Edinburgh. GRIN Verlag.