Marketing Mix Of Thomas Cook and 7Ps (Updated 2024)

The Marketing mix of Thomas Cook analyses the 7Ps of Thomas Cook, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Thomas Cook. Thomas Cook Group is an agency associated with the tourism and hospitality industry. It is a publicly traded company of British origin. Thomas and Thomas Cook Group plc was founded on 19th June 2007 by merging My Travel Group plc and Thomas Cook AG. It occupies second place as the largest travel agency in Europe. Thomas Cook Group faces competition from several agencies, some of which are as follows.

• TUI Travel
• Cox and Kings
• Virgin
• Emirates

About Thomas Cook

• Type: Travel Group
• Industry: Tourism
• Founded: 1841
• Founder: Thomas Cook
• Headquarters: London, United Kingdom
• Area served: Worldwide
• Key people:Frank Meysman (Chairman) and Peter Fankhauser (CEO)
• Number of employees: 21,000

Thomas Cook Product Strategy

Thomas Cook is owned by a travel company that organizes tours and travels. It is a single-stop destination for all issues related to travel and tours. Thomas Cook also owns tour operators, charter airlines, scheduled airline Condor, and Hotels4u, a booking website for airport hotels.

The new Product Mix of Thomas Cook in 2024 is as follows (Source).

1. Holiday Packages: This is a core product of Thomas Cook. They offer various holiday packages, including domestic and international destinations. These packages often include flights, accommodations, transfers, and sometimes additional features like meals, sightseeing tours, and unique experiences.
2. Flights: Thomas Cook provides flight booking services, offering options from various airlines to many destinations. This can include both regular and charter flights.
3. Hotel Bookings: Apart from package holidays, they also offer hotel booking services, allowing customers to book accommodations separately at destinations worldwide.
4. Cruise Holidays: They often have a selection of cruise holidays, providing customers with options to travel on luxury liners to various destinations.
5. Travel Insurance: Thomas Cook offers travel insurance products to cover various aspects of a trip, including medical emergencies, trip cancellations, lost luggage, and other unforeseen circumstances.
6. Foreign Exchange Services: They provide foreign exchange services, offering competitive rates for various currencies. This service is particularly convenient for travelers who need different currencies.
7. Group Travel: For corporate, educational, or leisure groups, Thomas Cook arranges group travel services, including customized itineraries, accommodations, and transport.
8. Specialized Tours: These may include adventure tours, eco-tourism, sports tours, pilgrimage tours, and other niche travel experiences.
9. Travel-Related Financial Services: Including pre-paid cards, credit facilities, and other financial services designed for travelers.
10. Business Travel Management: Providing travel management solutions for corporate clients, including flight and hotel bookings, visa services, and expense management.

Thomas Cook Pricing Strategy

Thomas Cook employs a multifaceted, customer-centric brand, customer loyalty, marketing mix, and pricing strategy to cater to frequent travelers’ travel needs and preferences. Here’s an overview:

1. Value-Based Pricing: Thomas Cook employs a value-based pricing approach, where the price of their services is determined by the perceived value to the customer rather than solely on cost. This strategy allows them to offer premium experiences at higher prices while providing budget-friendly options, ensuring they cater to various market segments.
2. Dynamic Pricing Models: In line with industry practices, Thomas Cook utilizes dynamic pricing, where prices for flights, hotels, and holiday packages fluctuate based on demand, seasonality, and booking timelines. This approach enables them to maximize revenue during peak seasons while remaining competitive during off-peak periods.
3. Bundled Packages and Deals: Thomas Cook strategically bundles services such as flights, hotels, and tours into comprehensive packages. These bundles are often priced more attractively compared to purchasing each service separately, appealing to customers seeking value and convenience.
4. Early Bird and Last-Minute Offers: They employ differential pricing strategies like early bird discounts for bookings and last-minute deals. This tactic not only helps in managing capacity but also attracts both planners and spontaneous travelers.
5. Segmented Pricing Strategy: Thomas Cook segments its market and adjusts its pricing accordingly. For instance, premium packages with exclusive experiences target luxury travelers, while affordable options are available for budget-conscious customers. This segmentation ensures they cater effectively to different customer groups with varying price sensitivities.

In conclusion, Thomas Cook’s pricing strategy is a sophisticated blend of market-driven approaches and customer-focused tactics. Leveraging value-based pricing, dynamic models, bundled deals, segmented advertising campaigns, and marketing strategies effectively balances profitability target market and competitive advantage with customer satisfaction, ensuring broad appeal across diverse travel segments.

Thomas Cook Place Strategy

Thomas Cook has spread its presence internationally to include tour operators in several countries. It offers tours to destinations like the United Kingdom, Egypt, Greece, the Caribbean, Corfu, Portugal, India, Turkey, the United States, Spain, and Italy. Its headquarters are in Peterborough, England.

Currently, Thomas Cook Group has five distinct divisions to carry out its operations: Northern Europe, West Europe, German Airlines, Central Europe, and the United Kingdom. It owns charter airlines and tour operators in Scandinavia and Belgium and is a tour operator in the United Kingdom. Thomas Cook has a widespread marketing and sales team in strategy physical stores and distribution channels, including 32,722 capable employees, 2,926 stores, and 97 aircraft to serve nearly 19.1 million customers annually.

Here’s Thomas Cook’s place strategy.

1. Global Network of Branches and Agencies: Thomas Cook has a widespread presence with branches and agencies worldwide. This extensive network ensures accessibility for customers across various regions, making accessing services in person easy.
2. Online Presence and E-commerce Platforms: With a robust online platform, Thomas Cook extends its reach to customers preferring digital interactions. This includes a user-friendly website and mobile applications, allowing easy booking and access to services from anywhere.
3. Partnerships with Local Agents and Companies: Thomas Cook often partners with travel agents and companies in various destinations. These partnerships enhance their local expertise and presence, enabling them to offer more personalized and region-specific services.
4. Strategic Locations in Key Tourist Destinations: The company strategically places its offices and agencies in key tourist locations and major cities. This ensures visibility and convenience for travelers needing assistance or services while on their trip.
5. Multi-Channel Distribution Strategy: Thomas Cook employs a multi-channel distribution approach, combining physical branches, online platforms, and partnerships. This strategy ensures their services are accessible through various channels, catering to different customer preferences and needs.

Thomas Cook Promotion Strategy

Thomas Cook has adopted an aggressive marketing policy to maintain and increase its brand awareness in the international market. It has launched several innovative and informative ad campaigns with the help of print and electronic advertising campaigns, media on popular radio channels, billboards at popular places, newspapers, and travel magazines. Thomas Cook has also launched social media marketing campaigns with its target audience with the help of various social media platforms and portals via its website, Facebook, Twitter, Instagram, YouTube, and travel blogs.

It has entered various sponsorship deals to attract customers and increase its brand value, equity, and visibility. Thomas Cook has become a sponsor of football clubs Peterborough United and Manchester City. It has also sponsored the 2012 London Olympic Games and offered accessible and affordable accommodation and holiday packages to interested parties. Its tagline is Let’s go. Thomas Cook has received several awards and recognition from its subsidiary companies. It received the Best Website Award from ABCI, the PATA Gold Award in 2005, and the Best Technology Award in 2005.

Some Recent Video ads and Print ads for Thomas Cook are:

Thomas Cook People Strategy

The “People” aspect of the service and marketing strategy and mix for a company like Thomas Cook, which specializes in travel and tourism services, is crucial for delivering exceptional customer experiences. This element focuses on both the staff who provide the service and the customers who receive it. Here are key points regarding the “People” component of Thomas Cook’s service and marketing strategy and mix:

1. Highly Trained Staff: Thomas Cook places a strong emphasis on the training and development of its staff to ensure they possess the necessary knowledge and skills to offer superior service. This includes training in customer service, destination knowledge, health and safety, and emergency response procedures.
2. Customer-Centric Service: The company cultivates a customer-centric culture among its employees, encouraging them to go above and beyond in meeting customer needs and expectations. This approach is central to building long-term relationships with customers.
3. Diverse and Multilingual Team: Recognizing the global nature of its business, Thomas Cook employs a diverse workforce that can communicate effectively with customers from various cultural backgrounds. Multilingual staff members are precious in bridging communication gaps and enhancing the customer experience.
4. Professionalism and Etiquette: Employees of Thomas Cook are expected to maintain high levels of professionalism and etiquette. This includes everything from the way they dress to their manners and the way they communicate with customers.
5. Empowerment and Accountability: Thomas Cook empowers its employees to make decisions that favor customer satisfaction. This empowerment is coupled with a sense of accountability, where employees take ownership of their actions and decisions.
6. Feedback and Continuous Improvement: The company actively seeks customer input to assess its staff performance. This feedback is used for continuous improvement and to recognize and reward employees who demonstrate exceptional service.
7. Role of Frontline Employees: Frontline employees, such as travel agents, tour operators, and customer service representatives, play a pivotal role in the customer experience. Their interactions with customers can significantly influence perceptions of the brand and overall satisfaction.
8. Personalization and Understanding: Staff members are trained to understand the diverse needs and preferences of customers to provide personalized services. This can range from recommending suitable travel destinations to accommodating special requests.
9. Safety and Security: Given the nature of the travel industry, Thomas Cook’s employees are also trained to prioritize the safety and security of their customers, ensuring peace of mind during their travels.
10. Technology and People Integration: While technology plays a significant role in enhancing service delivery, Thomas Cook ensures that the human element remains at the forefront of customer interactions, blending digital convenience with personal touch.

Thomas Cook Process Strategy

The “Process” element of the service and marketing strategy and mix for Thomas Cook refers to the procedures, mechanisms, and flow of activities by which services are consumed. This is a critical aspect of the sales service itself, especially in the travel and tourism industry sector, where the ease and efficiency of service delivery can significantly impact customer satisfaction. Here are key points regarding the “Process” component of Thomas Cook’s service and marketing strategy and mix:

1. Booking and Reservation System: Thomas Cook has streamlined its booking and reservation process, allowing customers to book their travel packages and services quickly online or through physical outlets. This system is designed to be user-friendly, offering precise information on available options, prices, and additional services.
2. Customer Service and Support: The company provides comprehensive customer service and support throughout the customer journey. This includes pre-travel inquiries, assistance during travel, and post-travel feedback collection. Customer service is accessible through multiple channels, including phone, email, and social media.
3. Personalized Travel Planning: Thomas Cook offers customized travel planning services, where customers can work with travel consultants to tailor their travel packages according to their preferences and requirements. This process includes destination selection, accommodation, transportation, and activities.
4. Check-in and Onboarding: For travel packages that include flights, Thomas Cook ensures a smooth check-in and boarding process. This may involve providing customers with early check-in options, e-tickets, and detailed information on baggage policies and airport procedures.
5. On-Trip Services: The process extends to on-trip services, where Thomas Cook ensures that customers have access to local support, guided tours, and additional services to enhance their travel experience. This may include 24/7 customer support in destination countries.
6. Feedback and Continuous Improvement: Post-trip feedback collection is a crucial part of Thomas Cook’s process. The company actively seeks customer feedback to identify areas for improvement and to make adjustments to its service delivery processes.
7. Technology Integration: Thomas Cook integrates technology into its service processes to enhance efficiency and customer experience. This includes online check-in, mobile apps for itinerary management, and digital platforms for feedback collection.
8. Quality Assurance and Standards: The company maintains high standards of service delivery through rigorous quality assurance processes. This includes regular training for staff, monitoring of service delivery standards, and adherence to safety and security protocols.
9. Crisis Management and Flexibility: Recognizing the uncertainties in travel, Thomas Cook has established processes for crisis management and offers flexibility in bookings, allowing customers to make changes to their travel plans under certain conditions.
10. Sustainability and Responsible Tourism: Part of Thomas Cook’s process involves promoting sustainable and responsible tourism practices. This includes offering eco-friendly travel options, supporting local communities, and ensuring that their operations have minimal negative impact on the environment.

Thomas Cook Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix pertains to the environment in which the service is delivered and where the company and customer interact. It also encompasses any tangible elements that help to make the service more tangible to customers. For a travel and tourism company like Thomas Cook, physical evidence is crucial in shaping personal selling, brand building, perceptions, and enhancing customer experience. Here are key points regarding the “Physical Evidence” of Thomas Cook’s service marketing mix:

1. Branding and Corporate Identity: Thomas Cook’s branding elements, such as its logo, color scheme, and uniforms, serve as significant physical evidence. These elements help create a solid and recognizable brand image, instilling trust and professionalism.
2. Marketing Materials: Brochures, travel catalogs, and promotional materials provide customers with tangible information about the services offered. High-quality, visually appealing materials can significantly influence customer decisions and perceptions.
3. Website and Online Presence: The design, usability, and content of Thomas Cook’s website and social media platforms are crucial forms of physical evidence. They serve as the initial interaction point for many customers, offering a virtual experience of the brand’s offerings and service quality.
4. Retail and Sales Offices: The physical appearance, layout, and ambiance of Thomas Cook’s retail and sales offices provide customers with a tangible experience of the brand. Well-designed, comfortable, and branded environments reinforce the company’s image and can enhance the customer’s service experience.
5. Travel Documentation: The quality and presentation of travel documentation, including tickets, vouchers, itineraries, and information packets, serve as physical evidence of the company’s attention to detail and commitment to customer service.
6. Technology and Equipment: The use of modern technology and equipment in providing services, such as user-friendly booking systems, mobile apps, and virtual reality previews of destinations, enhances the customer experience and serves as evidence of the company’s investment in service quality.
7. Customer Reviews and Testimonials: Published customer reviews and testimonials act as physical evidence of the quality of Thomas Cook’s services. Positive reviews and testimonials can significantly influence potential customers’ perceptions and decisions.
8. On-Trip Physical Evidence: For customers on their trips, the quality of transportation, accommodation, and other services arranged by Thomas Cook serve as direct physical evidence of the company’s service standards. This includes the condition of vehicles, comfort of accommodations, and professionalism of guided tour services.
9. Merchandise and Souvenirs: Branded merchandise and souvenirs offered to customers can serve as tangible reminders of their travel experience with Thomas Cook, reinforcing brand loyalty and memories associated with the trip.
10. Safety and Health Protocols: Visible health and safety measures, especially in the context of travel, act as physical evidence of Thomas Cook’s commitment to customer welfare. This includes cleanliness standards, safety equipment, and health protocols in place during travel experiences.

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