Tourism Marketing Principles Case Study

Section 1: Introduction

Tourism marketing is related to the different marketing strategies and diverse components which take place within the tourism industry. This is mainly utilised to sell their services and products. The business can include the airlines, hotel, car rentals, tour agencies and restaurants, holidays, agencies selling the flights and hotels or the different experiences to the consumers. The chosen organization is Jet2holidays, a British Package holiday provider and tour operator. This was established in the year 2007 as the subordinate of the Dart group PLC. This is the sister company of Jet2.com and recognized as one of the third largest scheduled airlines within UK.

In the year 2023, this is one of the largest tour operators within the United Kingdom. The organization has history which spans more than 50 years with the roots focused on the commercial aircraft organization channel express limited. The organization has been founded in the June 2007 and started the operations at the East Midlands airport in May within the year 2010. This has announced expansion in the Glasgow airport after that in the year. In the year 2014, the Airport of Black pool has closed and taken the company to the seven bases. Further, in March 2015, company was offering the package holidays to the one millions of consumers per year. Within the month, this created Jet2CityBreaks, subsidiary specialising within the shorten holidays to the city destinations. The report will delve into the identifying the high competition among the existing firms within the industry. This will further shed light on the key supplier of the industry and their importance.

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Section 2: External Analysis

The intensity of competition among existing firms in the industry

Within the travel and tourism industry, there is high competition with the various well developed players. The Jet2holdiays have the high competition from the various tour operators which mainly include Thomas cook, Expedia and TUI and the niche operators. The landscape of competition is developed by the marketing campaigns, price wars and efforts to boost the experiences of consumers. The competitors can contribute to the high competition within the tourist industry. Moreover, the ease within the comparing different packages via online can feel the pressure on the competitiveness.

Key suppliers of the industry and importance

The key suppliers within tourism industry include the hotels, airlines, transportation companies, resorts and companies of the destination management. For the organization, the suppliers are different hotel chains. Jet2.com and local operators are important for developing the attractive packages of holidays (Amoiradis, 2019). Bargaining power of the supplier is different for example popular and large chains of hotels and resorts can have negotiation because of the consumer demand and brand recognition. However, the organization may reduce the power of suppliers by expanding the supplier base. This can leverage the booking volume to negotiate the rates and better terms.

Key buyers and evaluate their bargaining power.

The key buyers of the Jet2holdiays are the individuals, families and travellers who are seeking for the holiday packages. Bargaining power of the buyers can be high because of the various available options and simplicity in the comparing the services and prices online. The consumers may switch to the rivals if they are having the better option, services and value (Biletska, 2021). The organization focuses on offering the best consumers services, benefits with value added and transparent pricing. This can include the flexible options of booking and inclusive packages to attract the loyal consumer and decrease the risk related to the consumer defection.

Barriers to entry

There are different entry barriers within the tourism industry; this may protect the players such as Jet2holdays from the novel rivals.

Economies of scale: The developed organizations can have benefit from the scale of economies within the procurement, marketing and operations (Sadq, et al, 2019). This can permit them to provide the competitive pricing which can be difficult for the novel entrants to match.

Capital requirements: The major capital investment may need to begin tour business. These expenses include the marketing campaigns, booking systems and development of the partners and suppliers.

Government regulations: Within the tourism industry, this is subject to the different licensing requirement and regulations. This can include the laws related to consumer protection and safety standards.

Substitute of products or services

The substitute services and products for the holiday packages can include the travel DIY arrangements, in which the consumer can book the accommodations, flights and activities (Buhalis, 2022). The substitute attractiveness relied on the different factors such as convenience, cost and consumer preferences among the DIY travel and packaged holidays. By switching the cost is low because of the booking platforms and travel agencies.

Section 3: Internal Analysis

Segmentation, Targeting and positioning analysis

Consumer segmentation: Jet2holdiays segments the consumer mainly based on the demographic, geographic, behavioural factors and psychographic.

Geographic Segmentation: The organization is mainly targets the consumers within the UK, by providing the different holiday packages to attractive European destinations which can include the Turkey, Greece, Spain and Portugal. The Regional across within the UK are mainly utilised to offer the easy departures for the consumers.

Demographic segmentation: This can include the various factors such as family size, age, occupation and income (George, 2021). The organization caters to the demographics which can include the couples, families, retirees and young professionals.

Psychographic segmentation: This mainly focuses on the lifestyle, values, and personality traits. The organization mainly targets the consumers which are reliable, value convenience, need the best holiday experiences.

Behaviour segmentations: This may include the usage rates, consumer loyalty and behaviour of purchasing. The organization mainly targets the loyal consumer frequent travellers which prefer the holiday packages and travellers which are looking for the promotions and special deals.

Targeting strategy

Jet2holidays mainly focuses on the differentiated strategy of marketing; this is targeting the multiple segments with the different offering. By personalising the packages which can suit to the demand of different groups of consumers, they may address market and makes sure that the requirement and preferences of each segment can be met. For example, they also provide the packages which are family oriented and also activities which are kind friendly, luxury resorts for the travellers with the high income.

Positioning and perceptual Map

The organization positions itself as the tours operator which is value for money and reliable. Moreover, it is involved in offering the holiday packages which are hassle free and comprehensive (Goryushkina, et al, 2019). The main focus on the consumer service, transparency and regional airport can develop the positioning.

Perceptual Map

The organization is having the various competitions which can include the Expedia, Thomas cook, Easy Jet holidays and TUI.

Jet2holdiays: The organization mainly positioned itself with the mid to high range of price and mainly emphasise on the premium and high quality services (Jet2Holidays, 2023). This mainly focuses on the transparency, value and consumer support.

TUI: The organization positioned itself as high services and prices, this provides the wide range of luxury and premium holiday packages.

Thomas cook: This positioned same to the Jet2holidays within offering the mid to high pricing but this is having the slow service.

Expedia: This positioned within the mid-price range and having the mid levelled services, this is mainly providing the DIY travellers with the flexibility in the booking.

easyJetholidays: This positioned as the low to mid pricing and offer the basic quality of services, target the consumer which are budget conscious.

Section 4: Ai Marketing And Sustainable Marketing Practices

AI marketing: The AI marketing is related to the utilisation of the technologies related to the artificial intelligence to optimise automates and boosts the marketing efforts. AI may analyse the largest among the data to understand the consumer behaviour, personalise content, predict trends and boost the procedure of decision making. Within the tourism industry, the technologies of AI can be utilised for personalised recommendations, chatbots, sentiment analysis and dynamic pricing.

AI marketing within the Jet2holdiays: The organization focuses on the marketing tools of AI to boost the operations and consumer experiences (Palupi and Slavov, 2020). The use of chatbots which is powered by the AI to offers the quick support to the consumer, answer the queries of consumers with the effective process of booking. Moreover, The organization employs the recommendations which is driven by AI and offer the customised holiday packages.

Ethical marketing: The organization is mainly committed to the practives which are related to the ethical marketing by offering the transparent pricing, consumer satisfaction and clear data about the packages. They mainly focus on the slogan which is “Package holidays can trust” to boost the ethical practices. The organization makes sure about the ethical consideration while using the AI. The organization is aligning with the regulations related to the data protection to protect the consumer information and transparency related to data use. The organization implements the measures which can protect the AI algorithm from the discriminatory decision and biases.

Section 5: Future Development And Conclusion

The Jet2Holdiays focuses on the differentiated marketing strategy, this mainly targeting the different segments which seeks the holiday packages. The effective consumer services and regional connectivity is the major aspects of the organization (Peceny et al, 2019). The issues which are raised by marketing are related to the intense marketing which demands for the differentiation and continues innovation. The extensive reliance on the major suppliers which can include the airlines, hotels, this can provide risk if the supplier can boost the price. The consumers are having the bargaining power because of the various options.

Conclusively, it states that the Jet2Holidays is one of the best tourism organizations which provide the wide range of services. This mainly works with the different organization via the partnership and invests within the travel industry. The industry is having the high competition due to the different alternatives and the supplier power is also high due different facilities related to travel agencies and airlines.

Recommendations

• The Jet2Holiays should increase the unique value preposition which can make it different from the competitors. This may include the effective partnership with the unique experiences and niche partnership.
• The organization needs to diversity the supplier to reduce the risk and boost the contract to make sure about the availability and stable pricing of the services and accommodations.
• The Company must use the analytics of advanced data to understand the deeper insight into the behaviour and consumer preferences. This may be helpful in developing marketing campaigns and customised services.

References

Books and Journals

• Amoiradis, C., 2019. A Theoretical Approach To Sustainable Tourism Marketing. Economics & Law, 1(2), pp.1-7.
• Biletska, I., 2021. Substantiation of Elements and Structure of Organizational and Economic Mechanism of Internet Marketing For Developing Tourism Enterprises on Innovative Principles. Індустрія туризму і гостинності в Центральній та Східній Європі, (1), pp.18-25.
• Buhalis, D.I.M.I.T.R.I.O.S., 2022. Tourism management and marketing in transformation: EditorLs statement and introduction to the Encyclopedia of Tourism Management and Marketing. Encyclopedia of tourism management and marketing, pp.1-18.
• George, R., 2021. Marketing tourism and hospitality: Concepts and cases. Springer Nature.
• Goryushkina, N.E., Gaifutdinova, T.V., Logvina, E.V., Redkin, A.G., Kudryavtsev, V.V. and Shol, Y.N., 2019. Basic principles of tourist services market segmentation.
• Palupi, R. and Slavov, M., 2020. Tourism Marketing: Context, Challenges and Potential. Jurnal IPTA (Industri Perjalanan Wisata) p-ISSN, 2338, p.8633.
• Peceny, U.S., Urbančič, J., Mokorel, S., Kuralt, V. and Ilijaš, T., 2019. Tourism 4.0: Challenges in marketing a paradigm shift. In Consumer behavior and marketing. IntechOpen.
• Sadq, Z.M., Othman, B. and Khorsheed, R.K., 2019. The impact of tourism marketing in enhancing competitive capabilities. African Journal of Hospitality, Tourism and Leisure, 8(5), pp.1-11.

Online

• Porter's Five Forces Jet2holdiays, 2023. Online. Available through < https://www.edrawmax.com/article/airline-industry-porters-five-forces-analysis.html >
• Jet2Holidays, 2023. Online. Available through < https://www.jet2holidays.com/ >