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Marketing in Travel and

Tourism

By


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TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................................ 4

TASK 1 .......................................................................................................................................................................... 4

1.1 Core concepts of marketing for Thomas Cook ................................................................................................... 4

1.2 Impact of marketing environment on Thomas Cook and tourist destinations ..................................................... 5

1.3 Factors affecting consumer motivation and demand ........................................................................................... 7

1.4 Analyzing the principles of market segmentation and uses in marketing planning at Thomas Cook. ............... 9

TASK 2 ........................................................................................................................................................................ 10

2.1 Importance of strategic marketing planning ..................................................................................................... 10

2.2 Relevance of marketing research and market information to manager in the T&T sector ................................ 11

2.3 Assessing the influence of marketing on society .............................................................................................. 12

TASK 3 ....................................................................................................................................................................... 13

3.1: Issues in the product, price and place elements of the marketing mix ............................................................. 13

3.2 Importance of service sector mix elements to the travel sector ........................................................................ 14

3.3 Application of total tourism product concept .................................................................................................... 15

TASK 4 ........................................................................................................................................................................ 16

4.1 Assessment of integrated nature and role of the promotional mix .................................................................... 16

4.2 Planning an promotional campaign for Thomas Cook. .................................................................................... 17

CONCLUSION ........................................................................................................................................................... 17

REFERENCE .............................................................................................................................................................. 19

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INTRODUCTION

Travel and Tourism (T&T) has been considered as the group of activities which are associated with short

and long term destination movements. Marketing in T&T is one of the major aspects. It is to study the influence of

people with respect to size of global market. The significance of marketing in T&T is to study the understanding of

demand and supply. With the rising trends of T&T industry, the impact has been directly seen in the economic

sector of nations. It is because; the growth in this industry leads to favor positive development of the country

(Sigala, Christou and Gretzel, 2012). Tourism is not limited to the entertainment or leisure activities. Rather it has

been developed to other sectors such as transport, technology, communication, etc. Therefore, the report will be

prepared with an objective to cover the marketing role and dimensions in T&T sector. The provided case study will

be analyzed to deliver the outcome that demonstrates operations and relevance of marketing department of tour

operating organizations. Furthermore, the discussion will extend to use and impact of various marketing concepts

and tools to the tour business.

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1.1 Core concepts of marketing for Thomas Cook

Marketing concept is about analyzing the customer’s needs and then making decisions to satisfy those

needs by travel and tourism organization. Tourist needs, demand and wants are important to analyze the marketing

plan for company. The basic customer needs and demands in travel and tourism are as follows-

Safety and Security- Any traveler or tourist will want to travel safe and sound. The marketing scheme must

pay attention about safeguarding needs in terms of safety and security in Morocco and Egypt (Sigala,

2012).

Value for money- The tourists want value for money as complete satisfaction will only be earned by

Thomas Cook when the customers are duly satisfied by the plans and schemes of firm.

Recreational- Tourists travel for adventure and recreational purposes. Thus the marketing plan has to focus

on the features that make the customers to access recreational and fun activities.

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Products and Market

The product of Thomas cook is to create a marketing plan for summer holidays 2016 package for Morocco

and Egypt. The product is designed to provide beach adventures, shopping facilities, historic sightseeing and water

sport activities (Ashworth and Goodall, 2012). The tour is packaged at a price of €550 per person. Morocco and

Egypt are the leading destinations of the world in terms of travel and tourism that are providing many benefits to

tourists.

Customer Satisfaction and exchange process

The marketing plan of Thomas Cook is designed to generate maximum customer satisfaction by providing

extraordinary services to them. In order to generate customer satisfaction, Thomas Cook has generated an exchange

process of providing gifts and vouchers. This is for increasing the sale and for attracting customers towards the

package.

Emphasis of travel and tourism marketing

Builds Economy- Travel and tourism marketing increases the economic benefits as it generates revenue

models for company in any economy.

Creates goodwill- Marketing also builds brand image and goodwill of country with respect to travel and

tourism (Crooks and et.al., 2011.).

Generates employment Opportunities- Travel and tourism generates employment services for domestic and

international countries residencies which facilitates the economy of country.

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1.3 Factors affecting consumer motivation and demand

Factors affecting Consumer Behavior

1.Psychological Factors- Thought process, perceptions and attitudes of consumers towards destination and

company are responsible for the fluctuations in travel and tourism industry. The customer’s psychology

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towards company and the destinations is relevant in their buying behavior (Moutinho, 2011). The

psychological factors may or may not make the tourists purchase the services of company.

2.Social Factors- Social characteristics of destination being provided by Thomas Cook also affect the

decision making process of tourists. Tourists seek information of cultural significance which is an

important part of traveling to the particular destination.

Consumer decision process

Decision making process impacts the motivations of the tourist and travelers. The decision making process

consists of recognizing destinations that are available to visit. . The next step is searching for information about the

culture and traveling associated activities in the respective destinations. Evaluation is done after this step to ensure

right choice for traveling. Customers then purchase the required package as per the budget and other details. After

purchase, the customer evaluates effectiveness and value for money that he/she gained from the visit (Wood, 2015).

All the above factors step by step influence the mind of customers in purchasing the package and in making decision

regarding the choice of destination.

Consumer behavior

There are four types of tourist’s behavior that affect the demand in travel and tourism.

Variety-Seeking Consumers- These customers prefer brand switching as they are highly

acknowledged about the market.

Dissonance-Reducing Consumers- They are interested in purchasing and do not pay much

attention towards different companies and services.

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Complex Consumers- These customers know about the difference between brands as they are

highly involved in researching alternatives (Sharpley, 2006).

Habitual Consumers- These customers have low involvement in brand recognition and are

interested in only purchasing the final product from Thomas Cook.

Each tourist behavior is the determinant of customer's behavior and motivation in purchasing the products

and services of Thomas cook.

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1.4 Analyzing the principles of market segmentation and uses in marketing planning at Thomas Cook.

Principles of market segmentation, targeting and positioning are as followed.

Segmentation- Psychographic segmentation is used to segment the target market of Thomas Cook.

Customers lifestyle, their behavior and interest is analyzed to generate the right target market size of the

company. The company has to understand how customers prefer to spend their leisure time in traveling to

different places. This will provide a clear scenario for the company to generate a package based on the

same (Panda and Mishra, 2006). The specification on lifestyle, preference and interest of the customers

will provide the Marketing manger to create a marketing plan based on the specifications of the same.

Targeting- In order to select potential tourist for the summer holiday package, Thomas cook uses

concentrated strategy. This strategy lets the manger to design different promotional messages for the

different groups of customers. For example to attract young age tourist the manger can create promotional

message based on water sporting and adventure whereas the same destination can be used by generating

promotional messages based on historic importance of the destination for the old age group tourists.

Positioning- In order to create a distinct image of the summer holiday package in the tourist Thomas cook

uses pricing as its positioning strategy (Law, 2009). The price of the package can be altered by the

reservation of a star hotel for business class tickets. The same can be changed by reducing the ticket

charges to economy class. Thus alterations can be made in the package based per the convenience of the

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customers. Pricing strategy helps to attract both high level incomer and middle level income for customers

toward the company.

Uses of the segmentation strategy for the company.

1.Can be changed as per customers convenience or requirements.

2.Increase the market target size for the company.

3.Helps in understanding the choice, needs and wants of the customers (Kotler, Bowen and Makens, 2006).

4.Improves the scope and base of marketing and advertising of the package in the customers.

2.1 Importance of strategic marketing planning

Strategic marketing plan is useful as it helps to detail the process that supports corporate business plan.

This is inclusive of commercial, financial and other resources that forecast the future of tourism business. According

to the given scenario, the importance of strategic marketing planning for Thomas Cook for tourist destination, that

is, Morocco and Egypt has been assessed. It has been determined on the basis of following tools as given

below:Strategic plans

As per the given scenario, marketing manager of Thomas Cook is required to meet the needs of its

business. For the same, the setting of specific objectives is planned (Huang, Pennington‐ ‐ Gray and Thapa, 2010).

It is made strategically as it helps in identifying the target market and customers.

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Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis

The role of SWOT analysis in the working of tourism business is to provide a clear view regarding the

advantages that they have on vulnerabilities and competitors. This will enable Thomas Cook to effectively evaluate

themselves with respect to their competitors as well.

Concept of the product life cycle (PLC)

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Thomas Cook while creating its summer holiday plan 2016 needs to strategically plan its products. It

should be made with respect to the products and different phases possessed by them. By assessing PLC, Thomas

Cook will be able to plan alternate marketing strategies to meet its objectives and goals.

Tourist area life cycle (TALC)

The significance of TALC in strategic planning is helpful to Thomas Cook in adapting different plans and

executions. These are helpful in different types of growth perspective that help Thomas Cook to attain its objective

for creating summer holiday trip to Morocco and Egypt.

Boston Matrix

The use of Boston Matrix is generally made for planning long term strategic planning. With respect to the

given scenario, Thomas Cook has to consider its business growth opportunities as well (Cox and Wray, 2011).

Therefore, this tool will help the marketing manager to review the portfolio which assists in investment or product

development.

Strategic and tactical objectives

There is need for Thomas Cook to promote its plan towards mass audience. This will be made with the help

of marketing tactics which includes advertisements, promotional campaign, public relations, e-mail marketing, etc.

This is achieved through strategic planning of various promotional tools.

2.2 Relevance of marketing research and market information to manager in the T&T sector

Marketing is a broader concept which includes certain elements. Research and information gathering are

other elements which cover the collection and classification of various data related with T&T marketing. For a

tourism business, Thomas Cook needs to examine the relevance of marketing information and research

(Chaudhary, 2010). Marketing team of Thomas Cook is also engaged in gathering of information. Researchers in

this regard are considering the collection of information for the achievement of various reasons. These have been

evaluated and analyzed. For conducting visit to Egypt and Morocco, there is the need for making decisions in

various perspectives. The most important among same is the market analysis. This takes in line to the information

about the competitors and their position. Thomas Cook is indulged in same for identifying the competitive level of

their competitors in the same industry. This will be useful in implementing the action plans that can support them in

winning the competitive edge.

Demand and supply has been another significant measurement in T&T sector. Thomas Cook is also

required to collect the data which would help them to know about the demand and need of their customers. The

implementation of Market Information System is one such way. Trend analysis is another crucial need which helps

the marketing team of this tourism business to analyze the market. The relevance of market data collection is also

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required to be made for meeting the demand and forecasting measurement (Chaisawat, 2005). All the processes and

plans which are made before the trip to Egypt and Morocco demands the estimation which is only possible with an

effective market research and gathering of information. Therefore, researchers from marketing team of Thomas

Cook are required to collect secondary type of data collection for meeting the purpose of its business marketing

needs.

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2.3 Assessing the influence of marketing on society

Marketing as a philosophy is interdependent in nature with respect to society and its development.

Similarly, with reference to the present case study, there are several measures which are taken by Thomas Cook in

order to influence the customers. Being their major target, they meet the needs of individuals by the use of various

marketing actions and strategies. For example, indulging in advertisement is one tool which is used by organizations

to appeal the customers for buying their products and services.

Marketing and society has always been associated with each other. Taking this into advantage, the business

strategies are designed and planned by Thomas Cook. However, those have been assessed on various grounds. These

have been detailed as follows:Advertisements have always been acted as a greater influence to the society (Corbin

and Strauss, 2008). Thomas Cook makes an effective use of this tool in promoting its products and services at its

own website. It uses videos, pictures, etc. in its brochure which is effective in attracting and appealing customers.

However, it may create adverse impact when travelers did not experience the same as promised to them before the

event. This may negatively affect the company’s reputation and goodwill.

Corporate Social Responsibility (CSR) is another way of pursuing community on the basis of ethical goals.

Thomas Cook has promised its customer’s trip to Egypt and Morocco with the assurance of safety and security. For

the same, they have communicated their CSR policy to influence its customers. However, there are instances when it

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may adversely affect the business. This is when due to its limitations of high costing; it may not be able to fulfill

their demands and expectations (Bandyopadhyay, 2001).

There are various measures which are taken by Thomas Cook in promoting its products. This is made

through the use of heavy costing that is involved in publicity of its services. This is good initiative taken by them

with an assurance of delivering their message to the mass audience. However, there is not sure probability of the

way in which customers deal with the same. They may develop adverse impact in similar regards or may not satisfy

completely. This type of influence proves to be ineffective when instant feedback is required from the customers.

3.1: Issues in the product, price and place elements of the marketing mix

A tool which is generally used by market researchers to determine the position of its brand is marketing

mix. However, it is essential to review them periodically in order to assess the issues which are developed in

marketing mix. They are-

Issues in Product

Product life cycle- The product is delivery the recreational purpose of the customer in summers. Thus the

life cycle of the product is a issue for the company. As the same package cannot be used in during winters

or spring season.

Product development- The main issued during product development is meeting the needs and requirements

of the customers to the fullest (Hall, Timothy and Duval, 2012). Development of the existing product also

creates problem for the travel provider.

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Issues in Price

Price setting considerations- The main issue in price mix is considering the right price for the product. The

manger has to evaluate lot many factors before finally placing the right price for the package. For example

a high priced may not be successful in the market.

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Factors affecting pricing decisions- Factors like tax rates, inflation, exchange rates ans etc. are responsible

in affecting the price of the package of the travel provider. These factors may increase the package price in

case of hike in the rates, which is not favorable for the product aimed at middle level income group.

Issues in Place

Location and access- Selection of right location is important in travel and tourism industry. The company

has to think about the availability and whether the facilities are accessible at the destination or not (Law,

2009).

Distribution channels- The right travel mode for example cruise , flights or trains. Etc. is important part of

the package. Availability of the appropriate distribution channel, for the passengers sometimes becomes

difficult in few parts of the respective destination.

3.2 Importance of service sector mix elements to the travel sector

Being a part of service industry, travels sector has various advantages in terms of service mix. They are-

1.Product- The nature and characteristics of the package designed by Thomas Cook depends on the service

they provide. The product is designed based on the nature of destination and the characteristics of the

customers.

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2.Pricing- The pricing policies of Thomas cook are affected by the economical and governmental policies

that prevail in the international country and the domestic country as well (Crowther and Lancaster, 2012). It

is difficult to generate the right pricing for the packages as being a part of service industry it is difficult to

analyze the price.

3.Promotions- Interactive marketing schemes are used to market and promote the product by Thomas Cook.

The company has to use interactive schemes to lure customers towards buying the product of Thomas

Cook.

4.Place- In tourism industry place is defined by the destination chosen by the customers,. It is important as

the customer will identify the product with the destination. Thus Thomas cook has to analyze the right

destination and has to generate effectiveness of the service to be generated in the destination.

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5.People- In service industry people are defined as the IT programmer, marketing manager, human resource

manger etc. Thus the employees working in Thomas cook are the element that will generate services to the

customers and they will define the services of the Thomas Cook (Bowling, 2009).

6.Process- The service is a way to deliver service to the customers. Thomas cook has to pay importance ion

providing quality services to the customers to ensure customer loyalty and satisfaction.

7.Physical evidence- As services are intangible in nature it is not easy to provide physical evidence of the

service. Services like restaurant provide ambiance, sitting and food which accumulate to form physical

evidence. Only complete customer satisfaction is a tool to analyze physical evidence of any service being

provided in travel industry.

3.3 Application of total tourism product concept

Total tourism product is defined as a combination of various services and elements

provided by the tourism provider for attaining customer satisfaction. The product is designed to

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attract the customers to purchase tourism product It includes sight seeing, physical objects,

services and many more things that are generated in the package provided by Thomas Cook. The

basic aim of the tourism product is to sale services and product in a way that they tract customer

loyalty and satisfaction (Kotler, Bowen and Makens, 2006). As tourism is a experience and is

intangible services. Thus customer satisfaction is important characteristic of the tourism product.

The product is designed in two part as described below.

Primary Needs of Customers in Morocco and Egypt are sightseeing of historical places

and water sport activities. It is a primary needs as it fulfills the basic purpose of the destination.

The tourist interested in historical places, beaches and water sports will be influenced by the

important features of these places. Knowledge seeking prospects of the place will be an

important feature in preparing the marketing plan for promotional activity if the company.

Secondary needs of Customer are good food, recreation, shopping and accommodation

facilities. These features are secondary to the customers as they think next to primary needs

about them. The customers wants a sober place to stay, good food which is easy to get. Thus

these form secondary needs in formulating package for the customers (Xiang and Gretzel, 2010).

These are secondary needs as the fulfillment of the primary needs will encourage the customer to

satisfy the secondary needs while traveling to any destination of the world.

4.1 Assessment of integrated nature and role of the promotional mix

Promotional mix focuses on four important elements of promoting a product designed by

the company. Promotional mix is an important tool on marketing the services to the right

customer. Nature and role of Promotional mix is discussed below as-

Advertising- It is an way of communication of the services been provided by Thomas

Cook. Frequency of advertising messages is important to generate interest of the

customer toward the products and services of the company. Advertising activity helps the

company to create new potential customers for increasing sales of the company (Hall,

Timothy and Duval, 2012).

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Sales promotion- It is a method to stimulate consumer purchase through contests,

sweepstakes, coupons, and etc. These are important as they generate interest of the

customers towards the services provided by the company. They serve as a short term

promotional activity directed to directly hit the eye of the customer.

Public relation- To build a positive image of the company in the eyes of the customer

public relations activities are important. It helps Thomas Cook to evaluate public

attitudes towards the services being provided by the company. It plays an important role

in placing the brand image if the company in the market.

Personal selling- It lets the company to directly interact with the client by face to face

meeting or through telephonic conversations. The sale person through his/her caliber sells

the products and service of the company to the customers (Sharpley, 2006). It plays a

crucial role in manipulating the customer and emphasizing on purchasing of packages

which are designed by Thomas Cook.

4.2 Planning an promotional campaign for Thomas Cook.

Promotional campaign of Thomas cook is planned with the help of social media

marketing. The company uses social media to attain maximum customer base for sales. Social

media is the most trendy tool used and access by almost all around the world. The company

identified that tourist and customers are using more of social media. Instagram, Facebook,

Whatsapp are among the most important tools of social media as they save time and money of

the company (Corbin and Strauss, 2008). They are popular and can be used from any part of the

world which makes it easy for the company to use them in their promotional activity.

CONCLUSION

The above research is based on marketing of travel and tourism services provided by Thomas Cook. As a

marketing manger it is important to understand the importance and role of marketing techniques to increase the

market share of company. Tourist and travelers needs and and wants are also studied in the research which provides

that the company has to generate maximum customer satisfaction in order to gain goodwill in the market. Finally it

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can be said that marketing and promotion of the products and services increase the sales and profitability of the

company as it lures the customers in purchasing the products.

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REFERENCE

Journals and Books

Aaker, D., 2011. Marketing Research. John Wiley and Sons.

Argyrous, G., 2011. Statistics for research with a guide to SPSS. 3rd ed. London; sage.

Ashworth, G. and Goodall, B., 2012. Marketing tourism places. 2. Routledge.

Bowling, A., 2009. Research methods in health: investigating health and health services. 3rd ed. Maidenhead: Open

University Press.

Bryman, A., 2012. Social Research Methods. Oxford: Oxford University Press.

Chaudhary, M., 2010. Tourism marketing. New Delhi, India: Oxford University Press.

Corbin, J. and Strauss, A., 2008. Basics of qualitative research: techniques and procedures for developing grounded

theory. London: SAGE.

Cox, C. and Wray, M., 2011. Best Practice Marketing for Regional Tourism Destinations. Journal of Travel &

Tourism Marketing. 28(5). pp.524-540.

Creswell, J. W., 2009. Research design: qualitative, quantitative, and mixed methods approaches. 3rd ed. London:

SAGE.

Crooks, V.A. and et.al., 2011. Promoting medical tourism to India: Messages, images, and the marketing of

international patient travel. Social Science & Medicine.72(5). pp.726-732.

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Crowther, D. and Lancaster, G., 2012. Research Methods. 2nd ed. UK: Routledge.

Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.

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