Tourism Marketing Principles MGBBT1TMP Report Assignmen Sample

Introduction: Tourism Marketing Principles MGBBT1TMP Report Assignment Sample

The tourism marketing refers to the act of promoting and marketing tourism by making the people aware about the novel service and attractions. Each form of tourism service used encompasses hotels, airlines, restaurants, rentals, tour operators, restaurants and travel agents which fall under the broad category of tourism marketing. The chosen organization is Expedia, this is American travel technology organization which operates and owns the travel meta-search engines and aggregators. The report will include the background of the organization. This will describe the external analysis, internal analysis and sustainable marketing and AI marketing practices.

Stressed About Complex Assignments? UK Assignment Help Guarantees Top Grades – Access Free Samples for Reference!

SECTION 1

Company Background

Expedia Group, it is the global travel and technology organization which has been founded on the year 1996, this is separation of the Microsoft. Within the year 1999, the organization has developed as the public organization, in the year this has grown majorly via the strategic expansions and various acquisitions. The organization has been headquartered in the Seattle, Washington; this operates within the different brands of online travel which can develop the wide range of needs in travel (Expedia, 2023). This can include the car rentals, accommodations, vacation packages and cruises. The mission of organisation is to take the world in the reach, by utilising the technology to develop the travel bookings and planning for the consumers based on worldwide.

The organization has secured leading position within the tourism industry; well-known for the travel services and extensive network. This can include the main brands such as Hotels.com, Expedia.Com, Travelcity, Egenica, Hotwire, Orbitz and Vrbo among others. Every brand provides the service for the different market section, from the single travellers to the clients from the corporation. This is involved providing the integrated and seamless travel experiences. The innovative platform or organization offers the consumers with the access to the best selection of the travel options, this is majorly supported nu the customised recommendations and search capabilities.

The strength of organization relies within the ability to analytics and harness data to understand the preferences and behaviours of consumers. This permits it to develop the offering which can meet the diverse needs of consumers, partnership to boost the deliveries of services and invest in the high and emerging technology. This also helpful in stay competitive and boosts the user experiences within the travel industry. As result, this has developed the strong market occurrence and also is known as the most reliable and trusted travel partners within the travel industry.

SECTION 2

 External Analysis

Porter’s five forces analysis

1. Identify the intensity of competition among existing firms

The industry of online travel agency, this is mainly categorized by the high intensity of the competition, having the different smaller and larger players which vying for the different market share (Amoiradis, 2019). The main rivals of the Expedia group can include the TripAdvisor, Ctrip, Airbnb and Booking holdings. The organizations compete with the different fronts which include the user experiences, pricing and inventory etc. The commoditisation related to the travel services and products, with the low cost of switching for the consumers, worsens competitive pressure.

1. Identify the key suppliers of the industry

The key suppliers within the industry are hotel chains, airlines, care rental organizations and different providers of travel service. The suppliers are dynamic because they offer the inventory which OTAs such as Expedia group can sell to the consumers. The bargaining power of the suppliers is dependent on the major airlines and hotel chains which influences due to the consumer loyalty and strong brand. The fragmented nature of hospitality industry with the different smaller chains, independent hotels and this can reduce power of suppliers.

1. Identify key buyers and evaluate their bargaining power

The major buyers within the OTA industry, this can include the business travellers, individual travellers and corporate consumers (Biletska, 2021). The buyers exert extensive bargaining power because of the easiness in comparing the services and prices online and also having the low switching costs. The highest power of bargaining forces the Expedia to provide exceptional services to consumer and competitive pricing, features which are value added to retain the consumers.

1. Barriers to entry

The entry barriers within the tourism industry are substantial, the established players such as Expedia group can gain the benefits from the economic scale, this permits to operate effective and provide the competitive pricing. The requirement of capital for maintain the investor, enhancement in the technology platform, consumer acquisition and investing within the marketing are substantial (Porter's Five Forces Expedia, 2023). This can pose the major hurdle and issue for the novel entrants within the industry. Moreover, by directing the regulatory landscape, this may include the regulations related to the consumer protection and laws related to the data privacy, this adds the costs and complexity for the novel players.

1. Substitute of services and products:

The substitute of the services and products within the travel industry can involve the direct booking with the hotels, airlines and different providers of travel service. The alternatives of the different travel platforms can include travel aggregators and engines (Buhalis, 2022). The attractiveness related to the substitutes to the consumers which are dependent on the different factors such as brand loyalty and switching cost. The switching cost is mainly low, the industry differentiate itself via the shopping of one step, convenience, loyalty programs, customised recommendations and consumer services. The availability related to the substitutes increase the high pressure of the competition.

SECTION 3

Internal Analysis

1. Customer segmentation

Geographic segmentations: The organization serves within the global market and the segmentation based on geographic can involves the Asia- pacific, Europe, North America, Middle East and Latin America. The every region is having the distinct travel needs and preferences; this is majorly influenced by the economic conditions, local cultures, travel behaviours and economic conditions.

Demographic segmentation: This can include the categorising the consumers which is based on the different factors such as income, age, occupation and family size. The Expedia group majorly targets the different types of demographic range. This can include families, Gen Z and Millennial, business travellers and luxury travellers. For the families the organization is providing the accommodations which are family friendly and vacation packages. For the business travellers, this provide the tool for the maintaining the business trips and travel solutions.

Psychographic segmentation: This focuses on the interests, lifestyles and values; the organization addresses the different segment of psychographic. This can include Adventure seekers, these are interests in the experiences which are off the beaten path and unique. The Eco-conscious travellers, these are customers which are focusing on the sustainable travel options (George, 2021). Cultural enthusiasts, this seeks for the historical destinations and cultural experiences.

Behavioural segmentation: This segmentation focuses on the usages patterns and consumer behaviours. The Expedia group segments the consumers which are based on the Booking frequency, price sensitivity and travel purpose.

1. Targeting strategy

The Expedia group functions with the differentiated marketing strategy; this is mainly targeting the different segments within the personalized offerings. The effective approach permits the organization to carer the different consumer preferences and needs.

Families: Provide the accommodations which are family friendly and vocational packages with the effective features which can include the activities for kids (Goryushkina, et al, 2019).

Business travellers: This offers the tools for maintain the travel of corporate, this can include the flexible options of booking and expense tracking.

Luxury travellers: This can include the exclusive deals and premium experiences of the travels.

By targeting the different segments within the different offering, the organization can address the needs of specific consumer in the effective manner.

1. Positioning and perceptual map

Expedia group: The organization positioned within the customised, personalised experiences and mid-range experiences. This focuses on the different consumers segments and provides the wide range of services and offerings.

Booking holdings: The organization positioned within the luxury segment and also focusing on the premium experiences and accommodations.

TripAdvisor: This is mainly known for the recommendations and strong reviews, this providing the luxury experiences.

Airbnb: This positioned within the customised and unique segment, this is mainly focusing on the individualised and distinct travel experiences.

Ctrip: The organization is positioned as the segment of mid-range, this is having the strong presence within the Asia, this majorly focuses on the options related to the affordable travel.

SECTION 4

AI Marketing and Sustainable Marketing Practices

Definition of the AI Marketing:

The AI marketing can include utilisation of technologies related to the artificial intelligence to analyse the customer behaviour, data collection and delivering the customised marketing strategies. The AI tools may predict the consumer’s preferences, boost the consumer interactions and optimisation advertising campaigns via virtual assistance and chatbots.

AI marketing at Expedia: The organization uses the AI marketing to boost the consumer experience and operations. The organization focuses on the AI tools to optimise the pricing, analyse the data amount and customised recommendations (Palupi and Slavov, 2020).

Predictive analytics: This helps in consumer preferences and forecast the trends of travel, this permitting the organization to develop the recommendations and offers.

Virtual assistance and Chatbots: This boosts the consumer service by offering the instant to the responses to facilitate the procedure of booking.

Ethical Marketing and at the Expedia group:

This refers to the practices which focus on the fairness, honesty and responsibilities within the different marketing efforts. This may include the respecting the consumer privacy, transparent communication and promoting the services and products within the truthful manner. The Expedia group follows to the effective ethical marketing practices and make sure about the transparency in the consumer data, pricing and develop the responsible travel.

Managing the ethical consideration along with the AI tools

Transparency:  The clear communication related to the how AI tools can be utilised within the marketing procedures and this makes sure about the consumers need to be aware about polices and data collection.

Data privacy: this makes sure about the effective measures related to the data protection to protect the consumer information. The Expedia follows the regulations and laws related to the data privacy which can include GDPR (Peceny, et al, 2019).

Sustainability: By focusing on the sustainability within the recommendations which are AI driven, this promotes the travel options, which are eco-friendly.

SECTION 5

 Future Development and Conclusion

Issues raised by the marketing audit

The travel industry is having the high competition with the different players which are vying within the market share. Buyers are having the high bargaining power because of the low cost of switching and ease within the comparison of pricing. The reliance on the hotels, airlines and different providers of travel service comes with the risk, if the suppliers boost the price and decrease the inventory (Sadq, et al, 2019). The organization follows the practices related to the ethical marketing; this may boost the focus on the responsible and sustainable travel demand.

Recommendations

• Expedia needs to invest in the technologies related to the AI to offer the customised travel experiences and improve the marketing campaign.
• The organization should develop the different experiences and travel packages which can cater the travel trends and niche markets.
• The company ought to expand the marketing initiatives which can promote the eco-friendly and sustainable options for travel.

CONCLUSION

Conclusively, it states that the marketing audit of Expedia group reveals the development areas and strengths as well. By resolving the issues and application of the recommended strategies, the organization can boost the consumer loyalty, market positions and develop the ethical and sustainable travel practices. The comprehensive approach make sure about the organization can be competitive within the travel industry.

REFERENCES

Books and Journals

• Amoiradis, C., 2019. A Theoretical Approach To Sustainable Tourism Marketing.em>Economics & Law,em>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.em>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.em>Encyclopedia of tourism management and marketing, pp.1-18.
• George, R., 2021.em>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.em>Jurnal IPTA (Industri Perjalanan Wisata) p-ISSN,em>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. Inem>Consumer behavior and marketing. IntechOpen.
• Sadq, Z.M., Othman, B. and Khorsheed, R.K., 2019. The impact of tourism marketing in enhancing competitive capabilities.em>African Journal of Hospitality, Tourism and Leisure,em>8(5), pp.1-11.

Online

• Porter's Five Forces Expedia, 2023. Online. Available through < https://dcf.fm/products/expe-porters-five-forces-analysis#:~:text=This%20insightful%20framework%20probes%20into,competitive%20dynamics%20Expedia%20contends%20with. >
• Expedia, 2023. online. Available through <https://www.expediagroup.com/home/default.aspx>

Author Bio

Jessica Wright   6 Years | MSc in Economics

I have always dreamed of teaching students and that is why I am working as an academic writer today. I have an MSc in economics and completed more than 6 years in this field. Students who are having problems with their Economic paper writing whether it is essays, assignments, dissertations, etc, I can help finish them on time. I write plagiarism-free and 100% self-generated content for every student.