Tourism Marketing Principles
Virgin Atlantic's marketing efficacy in the travel sector has been assessed in this research. Using the STP model, it has examined the company's internal capabilities, emphasising how Virgin Atlantic has customised its offerings to satisfy a range of client demands. Additionally, it has evaluated the external environment using Porter's Five Forces, highlighting buyer power and fierce competition as major obstacles. The audit has concentrated on the prospects for sustainable marketing, digital innovation, and advancements in client loyalty. Strategic suggestions have been made to enhance Virgin Atlantic's future marketing performance in light of these observations.
Chapter One: Introduction
The systematic promotion of travel locations, services, and experiences with the goal of drawing tourists is known as tourism marketing. The purpose of this research is to assess Virgin Atlantic's tourism-based marketing techniques, with an emphasis on the company's customer engagement, attraction, and retention tactics. According to the statement, the data pertaining to the methodical examination of Virgin Atlantic's digital campaigns, consumer interaction tactics, and marketing mix provides insights into the company's overall marketing efficacy in light of the competitive airline sector.
Chapter Two: Company Background
Sir Richard Branson, a businessman, established Virgin Atlantic, a “British airline”, as part of the Virgin Group, in 1984. The airline, which has its headquarters in Crawley, “West Sussex”, was established to provide a new and customer-focused alternative to established transatlantic carriers. Virgin Atlantic is thought to have first gained popularity by providing excellent in-flight experiences and low pricing, establishing new benchmarks for both entertainment and customer care. Additionally, Virgin Atlantic is regarded as the major participant in the travel and tourism sector, offering long-haul flights to locations in Asia, the Caribbean, Africa, and North America (Virgin Atlantic, 2025). Furthermore, it is believed that Virgin Atlantic has been influencing the international travel industry by offering a worldwide network for both business and leisure visitors through its participation in the “SkyTeam alliance” and cooperation with “Delta Air Lines”.
Chapter Three: Internal Analysis
3.1. Customer Segmentation
Virgin Atlantic uses a variety of segmentation techniques since it knows that in order to group its clientele:
Virgin Atlantic primarily caters to international passengers by operating flights between the UK and important locations in North America, the Caribbean, Asia, and Africa. Manchester and London Heathrow are regarded as the main hubs, linking leisure and business passengers from throughout the world (Kotler and Armstrong, 2023).
The airline serves a wide range of age and economic groups, from young millennials looking for low-cost travel to wealthy professionals with families looking for high-end services. Frequent travellers who choose business with upper-class services are seen to be a noteworthy group, as are corporate clientele.
Virgin Atlantic caters to both ideals and lifestyle choices. Its target market consists of those who appreciate comfort, innovation, and adventure. Based on airline experiences, its branding is frequently portrayed as light-hearted, contemporary, and slightly rebellious—perfect for travellers who detest the norm (Bhasin, 2017).
Travel objective (business vs. pleasure), frequency (frequent vs. occasional), and loyalty (Virgin Flying Club members vs. non-members) are the main areas of focus for the corporate segments. The development of behavioural categories is seen to further refine service choices such as “economy”, “premium economy”, and “upper class”.
3.2. Targeting Strategy
Virgin Atlantic is using a unique approach to marketing. It is noted that the airline customises its products to satisfy the particular requirements of each segment by using a "one-size-fits-all" strategy:
3.3. Positioning and Perceptual Map
Virgin Atlantic markets itself as a chic, customer-focused airline that provides a distinctive and delightful flying experience. By competing just on pricing, the brand is concentrating on providing high-quality service, innovation, and entertainment (Ahmet and Hancer, 2022). Amenities like Upper Class's onboard bars and the attractive cabin décor, which are based on the captivating brand personality, support this.
The perceptual map that follows compares Virgin Atlantic to four significant rivals based on two important criteria: price and service quality.
Perceptual Map: Virgin Atlantic vs Competitors
“High Service Quality”
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Singapore Airlines Emirates
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Virgin Atlantic British Airways
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Ryanair EasyJet
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|------------------------------→ Price (High to Low)
Virgin Atlantic meets customer expectations by working with its internal capabilities to implement a successful STP plan. Therefore, it is thought that in order to retain strong customer loyalty and market presence in the fiercely competitive airline business, it is important to comprehend its broad audience, provide unique services, and represent itself as a contemporary, customer-first brand.
Chapter Four: External Analysis
4.1 Competitive Rivalry (High Intensity)
Existing companies in the airline business compete fiercely with one another. Virgin Atlantic has competition from major international carriers, including “American carriers”, British Airways, Emirates, Qatar Airways, and Lufthansa. With wide-ranging route networks, well-known brands, and partnerships, these rivals are well-established. Offering comparable services across the economy and luxury classes has been found to enhance the urge to stand apart. Competitive strategies that are frequently used include price wars, discounted fares, loyalty programs, and improvements to the consumer experience (Ahmet and Hancer, 2022). The market is oversaturated; thus, it takes ongoing innovation and investment in consumer happiness to keep the market open for sharing.
4.2 Bargaining Power of Suppliers (Moderate to High)
In the aviation sector, suppliers have a moderate to high degree of negotiating leverage. Airport officials, fuel suppliers, aeroplane manufacturers like Boeing and Airbus, and maintenance service providers are some of the important vendors. Aircraft manufacturers are seen to have a lot of influence because there aren't many options and switching prices are considerable. According to Blythe (2023), fuel is a crucial component that accounts for 20–30% of airline operational expenses. The price of fuel is determined by the world's oil markets. With Heathrow's limits, Virgin Atlantic also bargains with airports for gate access and landing slots.
4.3 Bargaining Power of Buyers (High Intensity)
In the airline business, buyers, or passengers, have significant negotiating power. Additionally, internet booking systems are said to make it simple for clients to compare schedules, prices, and ratings from several airlines. Price sensitivity is growing as a result of this openness, which is reducing economy-class travellers' loyalty. Due of their competitive price, low-cost airlines like Ryanair and EasyJet have increased consumer expectations (Jobber and Ellis-Chadwick, 2023). Virgin Atlantic counters provide significant value, particularly in premium classes, a strong brand, and first-rate customer service. Also, because there are many alternatives with cheap switching costs, buyer power is still strong.
4.4 Threat of New Entrants (Low to Moderate Intensity)
Due in significant part to substantial entry barriers, the danger of new entrants is low to moderate. The airline sector is efficient in terms of capital expenditures for personnel, technology, aircraft, and regulatory compliance. Established players benefit from economies of scale, which distribute expenses over extensive networks. Government rules add to the complexity, and it is challenging to get airport slots at major international airports (Middleton et al. 2009). As a result, it is noted that low-cost start-ups and niche airlines periodically join the market and maintain operations to compete with well-established carriers like Virgin Atlantic, posing a challenge without significant resources, through strategic alliances.
4.5 Threat of Substitutes (Moderate Intensity)
Considering the distance and kind of travel, the threat of replacements is moderate. It is said that in places like Europe, where high-speed rail is well-established, short-distance transit, trains, buses, and automobiles provide practical alternatives. As with air travel, it is said that long-distance travel is still the more sensible choice. Particularly during the COVID-19 epidemic, virtual meetings conducted via technologies like Zoom and Microsoft Teams have become a viable alternative to business travel (Kotler and Armstrong, 2023). Virgin Atlantic responds to this by offering unique offerings and powerful branding. Due to the popularity of alternatives, high switching costs in premium classes and loyalty programs are declining.
Chapter Five: Future Development and Conclusion
5.1 Issues Identified by the Marketing Audit
Virgin Atlantic's marketing audit has brought to light a number of important problems. Market share is allegedly threatened by the fierce competition from both full-service and low-cost carriers. Following that, buyers have a lot of control and prioritise pricing with flexibility, which makes it challenging to establish and sustain brand loyalty. Furthermore, when demand for business travel declines due to digital alternatives like virtual meetings, unstable fuel costs and supplier dependence impact cost stability (Bhasin, 2017). Virgin Atlantic is thus constantly putting its strategy into practice by quickly changing in a digital and environmentally friendly travel environment.
5.2 Conclusion and Recommendations for an Effective Marketing Plan
It is determined that Virgin Atlantic uses AI-powered customised campaigns and consumer data to construct its digital marketing strategy. Customer retention is shown to be strengthened by a loyalty-focused strategy that includes tiered rewards and customised perks. Environmentally friendly aeroplanes, carbon offset schemes, and collaborations promoting green travel have all been highlighted by sustainability marketing. Virgin is expanding its product line to include flexible tickets and packaged vacation packages. In order to increase engagement in cutthroat marketplaces, travel influencers work together to target platforms that publish content that is additionally appealing to younger audiences.
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Virgin Atlantic, (2025), 22nd July, [Online] Available at: https://www.virginatlantic.com/en-IN?cm_mmc=10.13.00.17.12.00.100&gad_source=1&gad_campaignid=20469844243&gbraid=0AAAAAD2WgJxW6VgEdgKGFvhwt82WOBhmb&gclid=Cj0KCQjwyvfDBhDYARIsAItzbZGzdvi36FtU-AP8U3AzCwvloW6gStIl4DfEt856hjw99ZUyR2K3JDQaAtkzEALw_wcB&gclsrc=aw.ds (Accessed on: 08.08.2025)
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