CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
Coursebook answers
Unit 5
Travel and tourism in context:
Marketing Fred’s coffee stall
1 Possible response: a product/service mix
a 
is a blend of travel and tourism products
and services developed by travel and
tourism organisations.
Others may be possible.
b  ossible response points: organic coffee
P stand and talk to Fred – both options are
and other hot drinks to go (to take away),
cookies, small bottles of water, some
tables and chairs for customers to relax,
recorded music.
Others may be possible.
2 Possible response points: marketing and
• 
promotion, music, signs (for example, one
sign says, ‘Smile, there’s coffee’), sustainable
practices, organic coffee, recyclable cups,
talking to tourists, several languages
spoken, reputation/word of mouth,
business cards, chairs and tables to relax.
Others may be possible.
•• Possible response points: product: organic
coffee and other hot drinks, bottled water,
cookies; promotion: music, signs, business
cards; price: enough to pay costs, make
a profit, attract customers; place: in the
middle of the market, has sufficient space.
Others may be possible.
3 Possible factors: meeting the needs of target
market segments, appropriate timing,
costs, strong and sustainable brand image,
monitoring methods.
Example response: costs: affect product
because if the price of organic coffee goes
up, Fred may need to change to cheaper
coffee or charge higher prices to remain
profitable; promotion: because product change
or increased prices might need explaining
to customers; place: because the cost of fuel
could affect which markets Fred travels to.
Others may be possible.
1 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
4 Possible discussion points: useful
• 
information, for example, that tourists come
to the market in couples and groups, often
in families; productive variation is therefore
needed because most tourists like coffee
but some prefer tea or chocolate drinks
and because some tourists want cookies or
bottles of water. Market research showed
that tourists like to be able to sit down or
therefore provided. Music attracts tourists to
the stall and therefore music is provided.
Others may be possible.
•• Possible discussion points: shows external
factors that students think may affect Fred’s
business, factors are – political: Fred needs
a local government permit to operate and
possibly grow the business; economic: cost
of ingredients such as coffee beans, cost
of water and electricity, cost of fuel and
rent for the site of the stall versus the price
customers will pay; sociological: the age of
potential customers, their social class, the
volume and type of tourism affect demand;
technological: the efficiency of the coffee
machine, electronic payment methods
allowing contactless payment; legal: Fred
needs to comply with food safety laws
and customer safety laws; environmental:
needs to show responsible practices, such
as organic ingredients, locally sourced
ingredients, recyclable cups and the
provision of bins for recyclable waste.
Others may be possible.
5  xtension: To assess is to come to an informed
E
judgement.
 ossible points include: very important
P
to achieve the right balance of product,
promotion, price and place to attract and retain
customers. Learners may exemplify and detail
their response in terms of the four Ps by using
identified products provided at Fred’s stall and
referring, for example, to his pricing strategy,
promotion methods and place in the market.
Others may be possible.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
5.1 The importance of
marketing to travel and
tourism organisations
Case study: South Africa’s luxury
train-hotels
1 Possible response points: lasts two nights/
a 
several days or longer, luxury experience
viewing scenery, high-quality restaurant
service; on the train: en-suite luxury
sleeping cabin accommodation, includes
all meals served in the dining car and
24-hour room service, limited laundry
service; before/after the journey: can
include one night’s hotel accommodation,
shuttle transfer (transit) between hotel
and railway station; may also include a
guided attraction visit, government tax.
Others may be possible.
Possible response points: overnight
b 
sleeping accommodation, en-suite,
wood-lined carriages, high-quality
dining car/restaurant service, 24-hour
room service, possible hotel and shuttle
transfers (transits).
Others may be possible.
2 Possible response: what makes a travel and
a 
tourism organisation more attractive than
competitor organisations.
Others may be possible.
Possible response: Rovos Rail uses steam
b 
locomotives (engines) so as to appeal
to special interest tourists more than
competitors may do.
Others may be possible.
Possible response: vary product: different/
c 
shorter/more spectacular routes, modern
interiors, events; cheaper prices/package
deals; promote product variations and
different/lower prices.
Others may be possible.
3 Possible response: very important: need
to attract customers, increase sales/usage/
profitablity, make customers aware and
interested, compete for market share, explain
competitive advantage, create/build positive
2 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
image and reputation for sustainable practices,
help increase customer satisfaction/brand
loyalty/repeat business.
Others may be possible.
4 Possible response points: high-quality
a 
service so customers return, post
good reviews on website/social media
to encourage return/keep product in
customers’ minds, offer discounts to
returning customers, keep in direct
contact with customers online/by email
or on social media, direct promotional
materials towards existing customers.
Others may be possible.
Notes for response: promotional material
b 
examples include: posters, flyers, leaflets,
brochures, websites, video clips and
social media posts; can be physical
or electronic/digital; should focus on
existing customer return.
5 Extension: To assess is to come to an informed
judgement.
 ossible points include: very important:
P
need to attract customers, increase sales/
usage/profitability, make customers aware
and interested, compete for market share,
explain competitive advantage, create/build
positive image and reputation for sustainable
practices,help increase customer satisfaction/
brand loyalty/repeat business.
Others may be possible.
Activity 5.1
1 Answer: product, price, promotion, place.
a 
Possible response: marketing is everything
b 
done to attract customers, including
having products/services that customers
want, at prices customers will pay, in
places customers want them, promoted
in a way to raise customer awareness and
interest. Promotion is part of marketing.
It is communicating with customers to
raise awareness and interest.
Others may be possible.
Notes for response: chart could be physical
c 
or digital/electronic; small-scale or display-
size, individual or pair/group work.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS

2 Possible response points: adjustments to any or booking is slow/fully booked very quickly,
all Ps of the marketing mix, more promotion/ more than six months uncertain because
more accurately targeted promotion, quality customers may cancel bookings, allows
customer service generating good reviews, time for returning customers to book
advertising, use of internet/social media. next visit.
Others may be possible. Others may be possible.
3 Possible points: repeat business/brand
a  3 Possible points: records to monitor profitability:
loyalty and good reviews online/on social record costs and income regularly to check
media increases sales/usage/profitablity, profits/losses, allows changes to be made in
word of mouth promotion is cheap and time to reduce costs/add products or services/
effective, need customers for sales income change prices; read the reviews customers post
to be profitable and grow business. on social media: quality check, ensure that
Others may be possible. what is said is true, make corrections, change
products/services to meet customers’
Possible suggestions: have the correct
b  needs/wants.
marketing mix/products to satisfy
customers’ needs and wants/demand, 4
promote aspects of service that appeal Factor Effect
to customers (e.g. sustainability), ensure
accuracy of promotional claims to avoid Target market Customers are mostly
subsequent disappointment. couples. Sometimes there
are two couples at once
Others may be possible. (friends or people from
4 Possible discussion points: meeting growing the same family). Some
demand for sustainable products/practices single people stay. Repeat
to increase sales/usage/profitability, generate/ business is because
spread good customer reviews including on target market needs have
the internet/social media. been met.
Appropriate Possible response points:
Possible examples: Mauritius, New timing platform bookings open
Zealand, Orlando/Fortaleza transport, six months ahead, allowing
Copenhagen Airport. Mary and Oliver to monitor
Others may be possible. progress and change
products or prices.
Only returning customers
5.2 Factors affecting book more than six months
ahead, directly with Mary
marketing Consideration
and Oliver.
Possible response points:
Case study: Mary and of costs prices must be higher than
costs to make a profit.
Oliver’s condo Costs are product costs and
1 Possible response points: leisure/cultural/ promotion costs. Product
adventure tourists, couples, family couples, costs include cleaning and
couples of friends, single people. housekeeping. Promotion
costs are 3% of each
Others may be possible. booking, paid as a fee to
2 Possible suggestions: large audience,
a  the platform, low enough to
cheap, easy to use, 24-hour/7-day attract Mary and Oliver to
availability, specialist platforms. use the platform.
Others may be possible.
b Possible suggestions: monitor progress of
marketing in advance, can change price if

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 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS

Factor Effect 3 Possible response points: advantages:

promotion 24/7 to large/worldwide potential
A strong, Possible response points: customer base, fees (3%) are not high/cheap,
sustainable image attracts customers, flexible content, instant booking updates
brand image growth in demand for possible, customer feedback/reviews helpful
sustainability, good in marketing; disadvantages: costs 3% of each
reputation very important, booking, social media reviews may be unfair/
helped by good customer damaging to reputation.
reviews/repeat business.
Others may be possible.
Monitoring Possible response points:
methods monitoring bookings 4 Possible response points: timing of
a 
progress allows adjustments booking periods affects flexibility
to any part of marketing, of marketing, allows changes to
changes to products/prices/ products/prices, allows monitoring of
promotion can be made bookings progress.
in line with social Others may be possible.
media reviews.
Possible response points: need to
b 
Others may be possible. think about costs to fix prices, affects
profitability if costs change, costs of
5 Extension: To evaluate is to judge.
products and costs of promotion.
 ossible points include: a weighing of factors
P
Others may be possible.
affecting marketing including: target market,
appropriate timing of when to market products 5 a 
This is a group-based discussion and
and services to attract customers, costs, suggestions project.
reputation, image and performance monitoring.
Learners may decide that target market, Notes for response: any product/provider,
costs of promotion and reputation/image could be small-scale/independent (e.g. Mary
are particularly important in the successful and Oliver’s condo), could be from own
marketing of Mary and Oliver’s condo. knowledge/experience, could be from case
study in the coursebook. Brand image may be
Others may be possible. perceived, could include sustainability. Target
market segments could, for example, be by age
Activity 5.2 or type of customer.
1 Possible response: Target market segments
a  Possible suggestions: costs: prices may go
b 
are parts of the market from which a up/down if costs change to stay profitable,
travel and tourism organisation tries to promotion methods may change if their
attract customers. For example, a beach costs change, products may be varied
café may target families with children as a in line with costs and to compete with
market segment. other providers’ changes; timing: timing
Others may be possible. of booking periods affects flexibility of
marketing, allows changes to products/
Possible response: Brand image
b  prices, allows monitoring of bookings
is the reputation or impression progress and changes to product/price/
potential customers have of a product promotion/place to be made.
or organisation. Others may be possible.
Others may be possible.
2 Possible response points: check instantly
on how bookings are progressing, see if
calendar is booked up or has availability,
read customer reviews, reply to customer
reviews, talk to customers on social media,
monitor competitors.
Others may be possible.

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 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
3 Possible response points:
5.3 The marketing mix
Case study: Quito and the Middle
of the World
1 Possible response points: colonial Spanish
a 
architecture of the historic centre,
information from guides, indigenous
culture including markets, street
performers, traditional/local food.
Others may be possible.
Possible response points: Tour operator
b 
websites can be linked to social media
platforms to inform customers and
make it easy to book, tour operators
and customers can share information,
customers can post reviews on social
media, tour operators can reply to
customer reviews posted on social media
platforms, can write blogs to promote
products and services.
Others may be possible.
2 Possible response points: Some tour guides
and tour operators use promotional pricing
to market ‘free’ guided walking tours in the
historic centre of Quito. There is no fixed
price for a ‘free’ tour but the tour is usually
not actually free. At the end of the tour,
customers decide what the tour was worth.
Customers who enjoyed the tour pay the
guide. Discounted pricing can be used to
encourage bigger groups. Customers are
often in groups. Examples include discounts
for groups of a certain size, for educational
groups or for older people.
Variable pricing: Tour operators vary prices
among tours and between seasons. Tour
operators set prices for some special interest tours.
Food tours and visiting cafés and restaurants
in Quito are examples of special interest tours.
4 a
Prices differ because cafés and restaurants that
customers want to visit vary. Sustainability
premium pricing may be used for visits to some
specialist organic food cafés and restaurants.
Prices may vary among tours because of
travel costs. Tours to the Middle of the World
attraction include some travel. Transfer
(transit) costs are included in the price.
Others may be possible.
5 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
a 
Marketing channels: direct marketing
channel is face-to-face selling. Tour
guides in Quito use face-to-face selling
to directly market guided walk products
to customers. Online marketing channels
include internet places such as tour
operator websites. These websites are used
to make guided tour products attractive to
customers in Quito.

Distribution channels: direct channel is
from the tour guide direct to customers,
via a tour operator and the internet,
including tour operator websites and the
front desks of accommodation providers.
Others may be possible.
b Possible points: place is used in:
•• supply chains: linked places where
guided tours are supplied to customers;
guided walks sold to customers at
the front desks of accommodation
providers such as hostels
•• marketing channels: direct channel
is face-to-face selling, tour guides
use face-to-face selling of guided
walk products to customers; online
marketing channels include internet
places such as tour operator websites
•• distribution channels: direct sales
from tour guide to customers, via a
tour operator and/or the internet,
tour operator websites, front desks of
accommodation providers
•• online marketing: internet and social
media platforms, blogs, tour
operator websites
•• face-to-face selling: tour guides sell
tours face-to-face to customers e.g. in
hostel lobbies.
loss leader pricing: by setting a low
price for a promoted product,
e.g. a new walking tour or a tour to a
popular attraction out of town such as
Middle of the World, to compete.
b 
market penetration: by charging a low
price for a newly marketed product,
e.g. a new walking tour or a tour to a
popular attraction out of town such
as Middle of the World, to attract
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS

customers; the price can be increased later Pricing strategy term Definition
as demand also increases.
Loss leader pricing setting a low price for
c 
market skimming: by charging a high one product to raise
price for a newly marketed product, for customer interest
example, if a tour operator is the only in other products,
provider, customers accept the higher for example, a free
price; competition might mean the price introductory tour
needs to decrease later. to promote other
available tours.
d 
price bundling: by pricing tour products
as packages or bundles of products, for Premium pricing setting higher prices
example, a bundle of two walking tours to make products
and one tour including travel could be seem special to
priced more cheaply than the total price create demand,
of the individual tours. for example, for
luxury eco-friendly
Others may be possible.
accommodation.
5 Extension: To evaluate is to judge.
 ossible points include: marketing mix
P Possible response: Market penetration is
b 
elements are the four Ps: product, price, when a provider such as a tour operator
promotion and place. All are important to, charges a low price for a newly marketed
for example, Quito tour operators, though product. The low price attracts customers.
the relative importance of each element may The price is later increased as demand also
vary; for example, the successful marketing increases. Market skimming is the opposite:
of walking tours may depend on product and a provider such as a tour operator charges
successful promotion/place more than slight a high price for a newly marketed product.
price differentials. The tour operator may be the only provider
of the new product. Customers accept the
Others may be possible. higher price. Later, competition causes the
price to decrease.
Activity 5.3 Others may be possible.
1 a Answer: 2 Possible suggestions: tour operators can be
Pricing strategy term Definition customers of accommodation providers,
which allow tour operators to promote
Discount pricing attracts customers by products in hotel/hostel lobbies; tourism
reducing some prices, organisations do deals with each other at
such as for groups of events such as the World Travel Market; tour
more than six tourists. guides can be customers of tour operators.
Variable pricing is charging different
Others may be possible.
prices for the same
product, for example, 3 Notes for responses: any destination other than
reducing prices in the Quito could be from the coursebook, could
low season. be local to the learner, could be from learner’s
Promotional pricing attracts customers by prior knowledge/experience.
setting a temporary Possible ways to promote tours: marketing
a 
low price for a campaigns, web-based internet and social
promoted product, media platforms, blogs and podcasts, direct
for example, a new marketing, television, radio, newspaper and
tour on e-scooters. magazine advertising, sales promotions,
public relations, e-brochures and leaflets,
trade promotions.
Others may be possible.

6 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
b Possible recommendation explanation
points: depends on destination and
methods, likely to be in terms of
customer attraction, effectiveness, cost,
feasibility, opportunity.
4 Notes for responses: could be guided tour/
walk, but any travel and tourism product is
valid. Chart to show product, promotion,
price and place. Chart could be digital or
physical/card/paper-based, display size or
smaller. Inclusions depend on chosen product.
5.4 Market research
and analysis
Case study: MICE future
1  ossible response: a place where a travel
P brightly lit, white walls and brightly coloured
and tourism organisation provides business
tourism – known as MICE (= meetings,
incentives, conferences, exhibitions) – products
and services.
Others may be possible.
2 a Quantitative market research findings:
•• 73% of MICE venues already provide
human–nature connections.
•• 73% of MICE venues had developed
their internet provision in the
previous two years.
•• 83% of MICE venues provide food
labelling with dietary information at
every meal.
•• 82% of MICE venue food
preparation and food service staff
are given training on customers’
dietary needs.
Others may be possible.
7 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
b Qualitative market research findings:
•• ICT is likely to become even more
important in business meetings in
the future.
•• many young people work in MICE
venues, but few are managers.
Others may be possible.
3  ossible response: natural light from one
P
window, brightly lit, brightly coloured
portable chairs, simple/practical/moveable
table, contrasting carpet, painted walls that
are a plain/neutral colour, large ICT screen,
separate simple/clear whiteboard.
Others may be possible.
4  ossible response: quite closely, because
P
the room is open: space to move and feel
relaxed; flexible: portable furniture/carpet;
chairs/carpet; fun: brightly coloured chairs/
carpet; well-equipped with technology: large
ICT screen.
Others may be possible.
5 Possible discussion points: strength: many
a 
young people, so ICT skills likely to be
good among staff; weakness: few young
managers, so ICT development may be
slow/not meeting customer needs.
b 
opportunity: to promote ICT-skilled
young people to management to speed
up ICT development/better meet needs
of customers; threat: competitors may
promote ICT-skilled young people
to management to speed up ICT
development/better meet customers’ needs.
Others may be possible.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
6 Possible response points:
MICE venues
Strengths
many young people, so ICT skills likely to be
good among staff
73% of MICE venues already provide human–
nature connections
73% of MICE venues had developed their
internet provision in the previous two years
83% of MICE venues provide food labelling with
dietary information at every meal
82% of MICE venue food preparation and
food service staff given training on customers’
dietary needs.
Opportunities
to promote ICT-skilled young people to
management to speed up ICT development/
better meet customers’ needs
to improve food and drink quality to
better meet customers’ needs with better
labelling, staff training and use of local (more
sustainable) suppliers.
Others may be possible.
7 Extension: To evaluate is to judge.
Possible points include: the future is uncertain,
the near-future following the pandemic of
the early 2020s especially so; the size and
customer demands of the business tourism
meetings market require market research and
analysis forecasting to ensure that unnecessary
costs are not encountered and that investment
in product/service development is successfully
and profitably returned.
Others may be possible.
8 Possible discussion points: Political: changing
government policies e.g. on sustainability;
Economic: changes in demand depend on
business succeeding in the wider economy/
likely rising demand for smaller venues/rooms;
Sociological: disease concerns limit demand
for f2f (face-to-face) meetings; Technological:
more ICT growth and demand to meet;
Legal requirement changes such as for more
sustainable provision; Environmental: more
sustainable demands and requirements.
Others may be possible.
8 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
Weaknesses
few young managers, so ICT development may
be slow/not meeting customers’ needs
only 44% expected more internet provision
development the next year
more than 25% of MICE venues do not provide
human–nature connections
not all provide food labelling with dietary
information at every meal or have all food
preparation and food service staff given training
on customers’ dietary needs.
Threats
competitors may promote ICT-skilled young
people to management to speed up ICT
development/better meet customers’ needs
changing customer needs include a demand
for more sustainability than they all currently
provide.
Activity 5.4
1 a  ossible responses: questionnaires,
P
surveys, interviews, focus groups.
Others may be possible.
b Possible responses:
i 
Primary research is direct research,
such as asking customers questions
about the products and services
provided by a travel and tourism
organisation. However, secondary
research is research using documents,
such as using sales records to
investigate the market for MICE
products and services.
ii 
Qualitative methods include
observation, informal conversations
and interviews. Qualitative methods
are not numeric. Quantitative
methods collect data in the form of
numbers, for example, surveys.
Others may be possible.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS

2 Possible suggestions: to be seen to be 4 Possible discussion points: Political: changing

more sustainable, meeting customers’ and
legal expectations/requirements, promote
the well-being of customers and staff, to
compete better.
Others may be possible.
3 Notes for responses: could be oral/written/
presentational using software.
a A SWOT analysis identifies strengths,
weaknesses, opportunities and threats.
b A PESTLE analysis considers external
factors that affect a travel and tourism
business. External factors are factors from
outside the business. For example, a travel
and tourism business must obey the law
(legal factors). External factors that affect
businesses are shown in the coursebook
in Figure 5.5. Figure 5.4 and Figure 5.5,
which show examples of students’ SWOT
and PESTLE analyses of a travel and
tourism business.
Others may be possible.
government policies on health security;
Economic: changes in demand depend on
business succeeding in the wider economy/
likely rising demand for smaller venues/
rooms due to pandemic/post-pandemic
health security concerns; Sociological: disease
concerns limiting demand for f2f meetings;
Technological: more ICT alternatives limiting
f2f demand; Legal requirement changes
such as for more health security provision;
Environmental: more human–nature demand
due to more health security concerns.
Others may be possible.
5 Notes for responses: could be paper-based
or digital, small-scale or display size.
Coursebook Figure 5.5 shows a
possible approach.
Possible points to include in a PESTLE

analysis chart:

P E S T L E
Political Economic Sociological Technological Legal Environmental
changing changes disease more ICT requirement more human –
government in demand concerns alternatives changes such nature demand
policies on depend on limiting limiting f2f as for more due to more
health security business demand for f2f demand health security health security
succeeding meetings provision concerns
in the wider
economy/likely
rising demand
for smaller
venues/
rooms due to
pandemic/
post-pandemic
health security
concerns

Others may be possible.

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 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
5.5 Market
segmentation
and targeting
Case study: Who comes to
Cambridge?
1 Possible types to outline: leisure tourists,
business (MICE) tourists, VFR tourists,
domestic tourists, inbound tourists, day trip
tourists, cultural tourists, sightseers, specific
needs tourists, special interest tourists (e.g.
photography, architecture).
Example outline: leisure tourists who enjoy
sightseeing are one type of tourist who will
visit Cambridge.
Others may be possible.
2 Possible suggestions: sightseeing, visiting
a 
university colleges, taking scenic and
family photographs/selfies, visiting
museums (e.g. The Centre for Computing
History), punting, shopping.
Others may be possible.
Possible response points: incentive tourism
b 
is part of MICE (business) tourism,
prestigious/famous destination, beautiful/
iconic historic buildings to see and
for selfies, social activities e.g. punting
in groups.
Others may be possible.
3 Possible response points:
Geographic: inbound tourists are attracted by
Cambridge’s history, views and fame; some
stay in Cambridge, but many travel on day
trips from London, which is not far away, by
road or by train.
Demographic: age varies, but many VFR
tourists are families of students who are often
young adults, so target market is likely to be
parents of students (middle-aged adults) who
may bring students’ possibly younger siblings
and students’ grandparent(s) with them.
Psychographic: culture, history, architecture
and photography are reasons to bring special
interest tourists to Cambridge.
10 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
Other responses may be valid. NB: three target
market segments do not necessarily need to be
one of each of the three market segment types.
4 Possible response: punting providers think
about types of customer (market segment)
targeted, quality, economy and value for money
of products and services, accessibility of facilities
and sustainability. Punting providers consider how
well their product/service mix meets the needs
of geographic, demographic and psychographic
market segments. Punting providers weigh the 4Ps
of their marketing mix and customer feedback
to evaluate the quality, economy and value for
money of their products and services. Punting
providers also consider how accessible their
facilities are for customers with specific needs and
via transport links. The sustainability of provision
is also evaluated by assessing the contribution
made to responsible tourism.
Others may be possible.
5 Extension: To assess is to come to an informed
judgement.
Possible points include: market segmentation
and targeting are very important to travel and
tourism providers in Cambridge because to
operate profitably and build good reputations,
they need to attract sufficient and appropriate
customers. Learners may exemplify and
detail their response by considering different
individual providers.
Others may be possible.
Activity 5.5
1 Answer: age, gender, ethnicity, level of
a 
disposable income.
Answer: lifestyle, interests, values
b 
and attitudes.
2 Notes for response: any destination,
preferably not Cambridge, could be from the
coursebook/prior knowledge/experience.
Possible response: Negril, Jamaica.
Geographic: inbound tourists from around
the world/North America/Europe/elsewhere
in the Caribbean and domestic tourists from
other parts of Jamaica; demographic: family
groups of mixed ages including young and
teenage children and middle-aged adults/
young adult couples; psychographic: interests
e.g. waters ports, Jamaican culture/music.
Others may be possible.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
3 Possible response: Travel and tourism
a 
organisations evaluate their product/
service mix to help develop their mix
of products and services because these
organisations want to have the correct mix
of products and services, which attracts
more customers.
Others may be possible.
Possible response: Travel and tourism
b 
organisations think about types
of customer (market segment)
targeted, quality, economy and value
for money of products and services,
accessibility of facilities and sustainability.
These organisations consider how well
their product/service mix meets the
needs of geographic, demographic and
psychographic market segments. Travel
and tourism, businesses weigh the 4Ps
of their marketing mix and customer
feedback to evaluate the quality, economy
and value for money of their products
and services. They also consider how
accessible their facilities are for customers
with specific needs and via transport links.
The sustainability of provision is also
evaluated by assessing the contribution
made to responsible tourism.
Others may be possible.
4 Notes for response: any travel and tourism
organisation, at any scale, could be from the
coursebook/prior knowledge/experience.
Possible response: Fred’s coffee stall: Fred’s
products are coffee and tea drinks, coffee
beans, cookies and water. Fred’s services
are providing the products, making drinks
to order, providing seating, providing
information to customers who ask. Fred’s
product/service mix is good because it meets
customers’ needs for refreshment (with
alternatives for non-coffee drinkers), for
rest (tables and chairs) and social contact/
relaxation with others. Fred’s product/service
mix is lacking because there is no food other
than cookies, no cold drinks other than water,
tables and chairs are limited and are soon fully
occupied in high season.
Others may be possible.
11 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
Exam-style questions – answers
Question 1
a Three strengths of Albania as a tourist
destination are the natural beauty of its
landscapes (such as the rocky coast shown
in the image in Figure 16), its rich cultural
heritage (attractive to cultural tourists)
and the fact that the country is safe and
welcoming.
b Two likely threats to tourist numbers reaching
10 million a year are seasonality and there
being a negative perception of the country.
Unless development takes place, large
numbers of tourists will not travel throughout
the year and summer high-season visits are
unlikely to carry through to winter. However,
a greater threat may be the reluctance of
tourists to visit a destination that is associated
with organised crime and kidnapping, as
portrayed in the Liam Neeson film Taken.
c The ‘Taken by Albania’ campaign got off
to a positive start as it was launched at a
significant public relations event in front
of an international audience, generating
news and comment. The invitation to Liam
Neeson was very newsworthy and so interest
in the campaign’s positive message about
Albania started quickly. The fact that the
campaign runs for a year, supported by video
clips produced by both locals and visitors
to Albania, will allow a positive view of
the country to be seen on an ongoing basis.
Therefore varied images from different sources
will help to reinforce a more positive message
about the country.
d In addition to the publicity regarding the
launch event, the promotion of the ‘Taken
by Albania’ campaign will take place using
a variety of media channels. However,
the fact that people can use the hashtag
#takenbyalbania clearly suggests that social
media will be of the greatest significance.
The fact that there has been a huge growth
in consumer-generated content, such as
blogs, virtual communities, social networks,
collaborative tagging and media files being
shared on sites like YouTube and Flickr, has
resulted in the popularity among potential
international travellers of using the internet.
People have online connectivity through an
ever-broadening range of digital platforms.
Large numbers of people own smartphones,
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
tablets and laptops, and this provides them
with access to the internet virtually everywhere
they go. As a result of this increased mobile
technology, tourism providers have recognised
the power and potential of social media
in communicating with customers. Most
tourism authorities have their own social
media accounts; they can reinforce destination
brand messages using this communication
method. This has become a very powerful
tool in raising awareness and creating interest/
desire. Furthermore, the use of social media
to showcase new products and services is
a relatively cheap, quick and convenient
form of promotion. The traditional media
of newspapers, TV adverts and billboards,
meanwhile, will have a much more limited
geographical spread and they will require
thoughtful targeting. In addition, these media
are all comparatively expensive. Once a target
market has been identified, however, they
do offer the opportunity of supporting the
campaign. For example, the use of billboards
can help to remind and reinforce the campaign
message, particularly as they can be viewed by
thousands of potential travellers in relatively
short periods of time. Overall, the fact remains
that using social media is particularly popular
with younger travellers, who use these various
platforms extensively every day. Social media
posts may not be seen by some members of
older generations (the ‘grey’ market) as they
are not great users of new technology and by
people in less developed areas, where access to
the internet may be limited. Nevertheless, the
‘Taken by Albania’ campaign benefits from
the speed and ease of communication of using
social media. It also plays a crucial part in the
digital ‘word of mouth’, creating additional
awareness.
Question 2
a Stage A = Introduction, Stage B = Growth,
Stage D = Decline
b During the dining experience in a restaurant,
the overall product consists of two main
elements – the tangible and the intangible.
The tangible element includes the food,
beverages, tables, decor, uniforms, toilets and
Wi-Fi connection. The intangible element
includes the quality of the service, music,
smells and the other customers. Both elements
interact in a complex way to produce an
overall dining experience for the customer.
12 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
For example, excellent food and service can be
overshadowed by loud and noisy customers
at an adjacent table that makes the experience
unpleasant, diminishing the customer’s view
of the overall restaurant ‘product’.
c Stage A is the introduction of the product,
and the restaurant may therefore decide to
offer some form of loss leader pricing in an
attempt to build up a customer base. A cheap
‘set menu’ can be provided based on the
assumption that most customers will be price -
sensitive and will consequently be tempted by
something that appears to be good value. At
Stage B, the restaurant will be experiencing
growth – few discounts will be offered and
market skimming will be attempted. This
pricing policy is used when the product is
relatively new to the market and there are few
competitors. It allows the restaurant to charge
high prices as customers become willing to try
the new entrant to the market.
d It is said that the most important factors
when choosing a site for a new business are
location, location and location. Therefore, it
seems likely that consideration of adjacent
facilities will be of greater significance than
the availability of suitable premises. The
restaurant may wish to operate throughout
the day, offering breakfasts, morning
coffees, lunch and evening meals as well as
a drinks service. A site where pedestrian
flows are high throughout the day will be a
clear advantage, and it will be the adjacent
facilities that generate such flows. As a result,
a location near shops, tourist attractions
or transport points (preferably all three if
potential business is to be maximised) will
be of great importance. Similarly, potential
customers will find it convenient to have food
and drink available in the location(s) where
they are spending their time. The suitability
of the premises is of somewhat secondary
importance because vacant property can be
re-fitted according to the restaurant owner’s
wishes. However, for summer dining in hot
weather, a terrace and/or pavement seating
will be vital in order to maximise business
– and such facilities cannot be provided if
sufficient space does not already exist. There
is, to some extent, clear overlap between these
two factors, and the role of competitors to
the restaurant can be significant in terms of
choice of location. A new restaurant may
view a site away from competitors as being
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
desirable but it may also prefer to locate
nearby or even adjacent to a rival business.
This is because close proximity can generate
additional pedestrian flows and allow
potential customers to indulge in a form of
comparison shopping before making their
final dining choice. Overall, it is the location
that matters and the availability of suitable
premises, and the adjacent facilities are merely
two components of this. It is true to say,
however, that a restaurant needs access to
customers and it is the adjacent facilities that
generate the pedestrian flows.
Question 3
a The three PESTLE factors missing from
Figure 18 are Social/Sociological,
Legal and Environmental.
b In marketing, before any kind of strategy
or tactical plan can be implemented, it is
fundamental to conduct a situational analysis.
The PESTLE analysis forms part of this
and should be repeated at regular stages to
identify changes in the macro-environment.
Organisations that successfully monitor and
respond to changes in the macro-environment
are able to differentiate from the competition
and create a competitive advantage. A
PESTLE analysis helps an organisation to
identify the external forces that could have
an impact on their market and analyse how
these could directly affect their business. It is
important when undertaking such an analysis
that the factors affecting the organisation are
not just identified but are also assessed – for
example, what effects they might have on the
organisation. The outcomes of a PESTLE
analysis can then be used to populate the
opportunities and threats in a SWOT analysis.
c Wholesalers provide the tourism organisation
with wide access to potential customers.
The wholesaler will buy the organisation’s
product(s) in bulk so revenues and therefore
profit will be received upfront. The wholesaler
distributes the product(s) to the retailers
and does all the marketing and promotion
needed. This arrangement can be easier for the
organisation and it will also save marketing
and staff costs, in addition to allowing access
to a wider market.
d Primary market research requires
organisations to go out into the marketplace
to find out about customers’ experiences and
13 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
expectations. There are many commercial
organisations that will carry out primary
research on behalf of other organisations,
but this is particularly costly. Primary
research methods include self-completion
questionnaires, which are a series of open-
ended, closed or multiple-choice questions
given directly to the customer or potential
customer to fill in. The questions allow
for the generation of both qualitative and
quantitative data. Qualitative data refer to the
information collected on customers’ opinions
and attitudes towards products and services,
whereas quantitative data tend to be numeric
or statistical by nature – frequency of visits,
cost and number of users, etc. Quantitative
data allow patterns and trends in the market
to be displayed visually in chart or graph
forms; qualitative data, on the other hand, are
more difficult to represent graphically. Once
the questionnaires have been completed, the
findings have to be properly analysed and
evaluated. However, there is no guarantee
that the questionnaires will have been filled
in correctly. Furthermore, responses may not
be representative of the market as a whole,
and there may be an issue with possible bias.
Focus groups, meanwhile, are an example
of qualitative research, where the subjective
opinions and perceptions of a small targeted
group of consumers on a certain topic are
elicited. They are therefore carried out on
a much smaller scale than is the case for
questionnaires. Focus groups can be used to
gather information on the acceptability and
usability of new or re-launched products
or services, reactions to new advertising
campaigns or specific advertisements, or
consumer perceptions of a whole product
class. For the purposes of market research,
focus groups are usually made up of six to
eight targeted consumers (though this may
vary), a chairperson whose role is to ask the
required questions, draw out answers and
encourage discussion. Again, there are issues
to do with possible bias and not always being
fully representative of the market as a whole.
Overall, both have their uses in terms of
being primary market research, but the fact
remains that subjective opinions do not stand
up to scrutiny in the same way as numerical
data does. Therefore, it is suggested that the
analysis of questionnaires may be of greater
significance to tourism organisations.
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS
Question 4
a Three market segments which are not
primarily interested in Costa Rica’s natural
environment are business tourists for meetings
and incentives, honeymoon and wedding
tourists, and those interested in wellness
products and services.
b Costa Rica’s rainforests have been developed
for tourism purposes in several ways.
Adventure tourism activities now take place
in some areas of the forest canopy. Zip wires,
ropes and harnesses allow thrill seekers to
swing between constructed treetop platforms
while also offering visitors unique views of
the forest ecosystem. For those visitors who
wish to move at a slower pace, organised
hiking trips take place through the forest. This
allows visitors to have a ground-level view
of the forests, spot different types of wildlife
and experience the jungle’s unique sights
and sounds.
c Each activity provider will attempt to
create their own unique selling point in
order to differentiate themselves from the
competition and therefore attract customers.
Some operators will attempt to maximise
the opportunities provided by their location.
Consequently, activities taking place in the
Rincon de la Vieja National Park will have
easy access to Central America’s longest water
slide. Similarly, depending on the nature of
the nearby river, other providers might seek
to attract different grades of white water
enthusiast. Again, numbers of qualified staff,
level of experience and ranges of equipment
offered will all help any given operator
to differentiate itself from a competitor’s
offerings.
d Figure 19a clearly illustrates that Costa Rica
is attempting to appeal to a variety of target
markets and the advertised range of products
is quite extensive, covering a range of different
segments. In terms of age, the products on
offer will appeal across generational divides,
as the listed ‘things to do’ seem to indicate.
In terms of the tourist family life cycle, Costa
Rica appeals to individuals at the ‘partnership’
stage, as it seeks to act as a wedding and
honeymoon destination. It also promotes
itself as a family destination, and certainly
younger visitors will find the sun and beaches
attractive as well as having the opportunity
to see various wildlife spectacles on offer. The
14 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022
more affluent grey market of ‘empty nesters’
and the retired may well wish to take a cruise
which features a stop in Costa Rica on the
ship’s itinerary. In addition to appealing to
these different demographic market segments,
Costa Rica appears to have plenty to offer
in terms of lifestyle choices. Special interest
opportunities are plentiful, and range from
wellness opportunities, cultural visits and
trips to rural tourism experiences and even
birdwatching. The destination is already
established in terms of ecotourism and
adventure tourism activities. For example, as
Figure 19b points out, Costa Rica provides
an opportunity to experience both aspects
at the same time, as many individuals are
interested in going on an extensive hiking
experience as they undertake a four-day
ascent of Chirripo, the country’s highest
peak at 3,820 metres. In addition to these
demographic and psychographic segments,
Costa Rica with its close proximity to the
USA seeks to position itself as a destination
for meetings and incentives in order to tap
into the lucrative business tourism market.
The country therefore appears to have a very
wide product base and is able to appeal to
a range of different market segments as the
images in Figure 19a clearly indicate.
Question 5
a Three elements of the Camp Nou’s product/
service mix are the stadium tour, the ice
skating rink and the megastore.
b The images in Figure 20 clearly show that the
central element of the Barcelona FC brand
image is the club’s crest. Key aspects of the
crest are the FCB initials. In this instance, the
name has become its brand identity. The crest
is therefore clearly visible on the stadium wall
and on souvenir items. A second feature of
Barcelona FC’s brand image is the use of the
red and blue colours. Again, these are clearly
visible in both images and even the banner
shown in the top image has been colour-
coordinated to support the branding.
c Sponsorship is a form of promotion and
Qatar Airways is therefore going to be able
to promote itself by having this association
with Barcelona FC. The top image in Figure
20 shows that Qatar Airways signage enjoys
a prominent position within the Camp Nou
stadium complex; as a result, the 1.9 million
 CAMBRIDGE IGCSETM AND O LEVEL TRAVEL AND TOURISM COURSEBOOK ANSWERS

annual visitors to the museum will now be it to create strategies to take advantage of
aware of the company (as will the 90,000+ any strengths and weaknesses the comments
spectators at each home fixture). Similarly, as help to identify. However, it is clearly in
the team’s sponsor, Qatar Airways will have the museum’s interest to monitor these
its name appearing on Barcelona FC’s team online comments and to compare them
shirts, and the millions of people worldwide regularly with the survey findings. The final
watching Barcelona’s games on TV will consideration has to do with the reliability of
therefore become aware of the brand. For the results. The face-to-face survey represents
major companies, sports sponsorship is a very primary research over which the museum
effective form of promotion. would have complete organisational control.
The review and analysis of online comments
d In order to achieve customer satisfaction, would be an example of secondary research,
tourism organisations must in some way and the validity of any given response might
meet the needs and wants of their customers. be questionable. It would however be quite
However, it is not always easy to identify appropriate to use both methods to monitor
exactly what these needs and wants are. Nearly the levels of customer satisfaction and to
all tourism organisations undertake some use the survey findings as a benchmark for
form of customer care analysis and many use making comparisons.
a variety of techniques in order to obtain an
accurate reflection of what is happening in
their business operations. The reports and
findings need to be studied carefully in order
to identify areas for development, either in
operational procedures and practices or staff
training requirements. Face-to-face surveys
are a common form of primary research in
which customers are randomly targeted when
visiting the organisation’s premises, and are
asked questions relating to the provision of
its products and services. A survey of this
nature would give the museum immediate
feedback and would be very representative
of the visitor’s experience on that day.
Furthermore, once the results were fully
analysed, the museum would then have the
ability to make more informed purchase
decisions based on customers’ feedback.
Sometimes, visitors to an attraction will say
that the venue is not like the advertising on
its brochure or website. TripAdvisor and
other travel sites have reduced the amount of
risk when booking a trip as they encourage
customers to post comments online after their
visit. These comments can be either positive
or negative, and can provide insight into areas
such as service, quality, facilities and value.
Similarly, customers can rate their experience
on a sliding scale, which then contributes to
an overall average rating from all customers.
However, these online comments can create
issues for the organisation to which they
refer. This feedback is provided when the
customer has left the premises, so it can be
too late to fix a problem face to face. Also,
competitors can view this feedback and use

15 Cambridge IGCSETM and O Level Travel and Tourism – Rickerby, Smith and Figg © Cambridge University Press 2022