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Copyright 2005 – Biz/ed

Marketing in the Travel and Tourism Industry

BTEC Travel and Tourism



Definition

• Marketing is about anticipating and identifying the wants and needs of a target market of consumers, then satisfying those needs in order to make a profit

• Firstly, travel and tourism organisations must understand their customers’ demands. This is the ‘anticipating’ and ‘identifying’ part of the definition



Marketing Research

• Anticipating and identifying demands depends on effective marketing research

• Research into the existing and potential market

• We will look into this in detail in the Activity



Marketing Research

• Classifying customers according to socio-economic status, lifestyle, family circumstances, gender and so on

• May involve primary research – surveys, observation, questionnaires

• And/or secondary research – statistics and records, quantitative and qualitative



Classifying Customers

• A target market consists of a whole group of potential customers, drawn from the whole population

• It’s better to define the target market as a collection of ‘segments’

• Each segment will have different characteristics

• Each segment’s needs and wants must be satisfied



Market Segmentation

• In the domestic tourism market the following segments may be involved:

• VFR (look for a definition of this term during the Activity)

• General business tourism• Holidays and breaks pre-family• Long holidays• Activity holidays• Group holidays



Marketing Mix

• The way in which current and potential customers’ demands are satisfied depends on the marketing mix of the organisation’s products and services:

• Traditionally 4 elements of the mix – Product, Price, Promotion and Place

• In the modern travel and tourism industry it’s usual to look at 6



Elements of the Marketing Mix

Product or service• Quality• Value• Lifecycle• Perishability• Differentiation• Niche




Price• Seasonality• Strategies• Competitor analysis• Loss leadership• Skimming




Promotion• Advertising• Endorsements• Sponsorship• Methods – use of different media,

brochures/leaflets, public relations, sales promotion, press releases

• To gain attention/interest/desire/action




Place• Channels of distribution• Getting tourism services to customers• Retail services such as travel agents• Direct marketing through targeted mail

outs• Electronic methods, such as using the

Internet• The growth of technology




People• Employees• Management• Culture of organisation• Attitude to customer service




Planning• Mission statements• Deciding on objectives • ‘What are we trying to achieve?’ –

profit, cut the competition, boost share of market, enter new markets and so on

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