A PROJECT REPORT ON THOMAS COOK INDIA LIMITED THE EMERGING LESIURE TRAVEL GIANT COMPARATIVE ANALYSIS

Submitted to: Kukreja

Mrs.

Sumita

Submitted by:

Akshay Garg

Enrollment No.

05814905010

NAME OF THE INSTITUTE & UNIVERSITY

MAHARAJA SURAJMAL INSTITUTE (Guru Gobind Singh Indraprastha University) Acknowledgement

The present work is an effort to throw some light on THOMAS COOK INDIA LIMITED. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mrs. Sumita Kukreja and other staff. I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

Chapter 1

Executive Summary
The objective of the project study was to find out the customer preferences regarding the different services offered by Thomas Cook India Limited (TCIL) and to find out the competitive advantage of TCIL over its competitors. Primary research was undertaken for the purpose of finding customer preferences. For this a structured questionnaire was formed which included dichotomous, multiple-choice questions, continuous rating scale and ranking scale. Parameters used in the questionnaire were chosen by own judgement and each parameter was given equal weight age. A sample size of 50 was chosen from the list of customers provided by the various travel agents in Chandigarh. Data collection was administered personally by the project guide. Excel spreadsheets were used to tabulate the data and chum information from it. Secondary research was undertaken in order to find out the competitive advantage of Thomas Cook India Limited. The information was gathered from the brochures, internet, magazines etc. Findings showed that the customers prefer TCIL over the other top players. But out of leisure travel, insurance and foreign exchange services, large percentage of customers availed foreign exchange services. The project study revealed that customer prefers European tours of TCIL. So, the company has the potential to increase its stake by concentrating on the other tours. Through secondary research it was clear that TCIL has competitive advantage not because of the prices charged by them but because of the differentiated services offered by the company in comparison to its competitors. 3

Chapter-2

2.1 INTRODUCTION
THOMAS COOK INDIA LIMITED THE EMERGING LESIURE TRAVEL GIANT
From the staid, laid back approach to an aggressive player in the forex travel market, Thomas Cook's conservative image has undergone a transformation in the past couple of years. Earlier the company was complacent as it was a dominant player in both the wholesale and retail foreign exchange (forex) market. However, with the entry of full fledged money changers in the early 90's this trend changed. Now the company's operations were divided into separate SBUs: forex, corporate travel, leisure inbound and leisure outbound. In the mid 90's Thomas Cook India Ltd (TCIL) took a relook at its business focus. The main business should continue to be forex. However the company felt the need to become more aggressive on the leisure travel segment, due to growth potential of tourism from and to India. The share of the forex business as a percentage of the company's sales has come down due to higher competition and the company's focus towards leisure travel. One of the reason's for this aggressive stance by the top management as it aims to convert the company into a "international standard one stop travel shop". In its leisure travel business, the company's stance has changed and it no longer caters only to the premium end of the market. It now provides "value" tours with the aim of expanding its client reach, as it realizes that the growth lies in tapping the growing Indian middle class consumer. Commissions in this segment vary between 10 - 15 percent. Though TCIL was a late entrant in the tours market and faced competition from SOTC and COX& KINGS it managed to find a place in the market because of the differentiated services provided by the company. TCILs advantage as compared to smaller travel agencies is that it takes care of both travel needs as well as forex needs of its customers though at a higher price. 5

The future looks bright for TCIL, as the tourism industry is a fast growing one. With an aggressive and professional management at the forefront, strong support from its international parent, sound financials, aggressive business plans, strong business franchise, widespread network and the right experience it is well positioned to grab a lion's share of the growing travel and tourism industry in India.

2.2 HISTORY

Thomas Cook began its Indian operations in 1881, with its first office in Mumbai. Subsequently, it expanded to the cities of Kolkata, Bangalore, Delhi and Chennai, under the aegis of Thomas Cook Overseas Limited. The current company, Thomas Cook (India) Limited (TCIL) came into existence with effect from November 1, 1978. TCIL made its public issue in February 1983. From being a dealer in foreign exchange in the early 90s, it grew into a one-stop travel shop present in 19 cities across 67 locations in India over 1100 employees. It also operates in Mauritius and Sri Lanka through its subsidiaries. Thomas Cook Mauritius is a fully owned subsidiary of Thomas Cook (India) Limited, with a network of 8 locations, including the airport and a staff strength of 50. Thomas Cook Sri Lanka, with a footprint of 7 outlets including a 24 hour foreign exchange counter at both the arrival and departure terminals, offers the full range of travelrelated services at each of its branches. Our strategic mergers and alliances with the world's leading leisure travel agencies allow us to offer the Indian traveler a choice of world-class international holidays.

PRESENT SCENARIO:Dubai Financial LLC, a 100% subsidiary of the Dubai Investment Group, acquired 100% of Thomas Cook international markets Ltd. Thomas cook International markets owned 60% of Thomas Cook India Limited, on 21st Dec 2005. Consequently, Thomas Cook India Ltd. reconstituted its Board of Directors at a Board Meeting held on 21st Jan 2006.

2.3 PRODUCT PROFILE

TCILs existing businesses:A) Leisure Travel:
The Leisure Travel division promotes domestic inbound and outbound holidays. The Tour Operating sub-division operates over: 40Group Inclusive Tours (GIT) to leading destinations in all 5 continents. Free Individual Travel (FIT) to over 50 countries around the globe. It also offers domestic tours in the country which operates from Delhi and not The Incoming Services sub-division caters to the needs of tourists visiting India This division currently caters to the needs of over 50,000 foreign tourists. Thomas Cook India is the undisputed market leader for the charter segment of the

from Chandigarh. from all over the world.

industry which gives it access to lowest rates hotel and transport rates in the country

The process adopted to book a tour:1) One can book a tour with Thomas Cook through: Any of your own travel agents. Any of the preferred sales agents listed in the brochure. Any of the branches located all over India. As soon as one decide to holiday on any of the Thomas Cook tours, you have to fill up the booking form. Along with that it is mandatory to pay a deposit amount of Rs.15000-per person. On payment of the deposit amount you will be given an official receipt from the company. 3) Making the balance payments: One must make the balance payments towards the tour cost at least 30 days before the actual tour begins. 4) The important documents that one should carry during the tour: Passport 8

2) Confirmation about the booking:-

Visas: It is mandatory to be in possession of valid visas of the country/ ies to be visited Thomas Cook will assist you in obtaining the visas from the concerned It is entirely at the discretion of the concerned authorities to grant/reject your TCIL will deduct Rs.2,000/- per person towards administrative charges and for travel on your tour. authorities. visas. refund the balance amount in case if the visa is not granted.

5) Air tickets and other tour documents: One will receive their air tickets 7 days prior to the departure along with tour ticket and other related documents. 6) Cancellation charges: In case if you wish you cancel the tour then you will have to pay certain cancellation charges per person. 7) Changes in the booking: In case if one wants to make changes in the group tour then one has to pay a deviation cost of Rs.5000/- per person.

B) Corporate Travel Management:In this segment, Thomas Cook effectively manages the travel budgets of several large national and multinational companies such as TCS, Reliance Industries, Godrej, Mahindra British Telecom, Texas, Instruments, Mastek and Tata Motors.

C) Travel Insurance:Thomas Cook (India) Ltd. is the only travel company in India to have a registered license to sell insurance and offers its own Travel Insurance branded products. This service comes to you through its 100% subsidiary, Thomas Cook Insurance Services (India) ltd. Is a licensed corporate agent for Tata Aig Insurance Company which underwrites the Travel Insurance Policy.

The various travel insurance products offered by TCIL are:1) Travel Care Overseas Travel Insurance includes: Travel care classic: - This plan is ideally suitable for such set of customers traveling abroad on a short span of trip. Travel care executive: - This plan is recommended for the persons between the age group of 56 to70 years. Travel care premium:-This plan provides coverage up to USD 2, 00,000. Travel care family care. This plan provides coverage up to USD 50,000. 2) Family Care overseas Travel Insurance for the Whole Family: This plan is recommended for the families traveling abroad basically on a holiday. 3) Scholar care overseas Travel Insurance for students: Study interruption: Reimburse the tuition fee due to medical reasons. Sponsor Protection: In the event of accidental or permanent disablement. Accident Medical Expenses Visit by family member:-If you are hospitalized for more than seven days Personal Accident etc, 4) Corporate care travel insurance for businesses: Corporate Care is specially designed for corporate travelers. The policies are sold to both Thomas Cook and Non Thomas Cook customers across India through Thomas Cook offices.

D) Foreign Exchange:TCIL is the only non-banking authorized dealer of foreign exchange in India and foreign exchange related services is the main source (67%) of revenue for the company. The structure of TCILs foreign currency division can be divided into two segments:(1) For retail operation foreign exchange dealer relies mainly on purchase and sale of 10

foreign exchange from business and leisure travelers TCIL is the only RBI registered non-

banking company authorized dealer in the country. Margins in this business are typically 1% - 1.5%. In order to expand its area of operations TCIL has entered into an arrangement with the State Bank of India (SBI) for setting up foreign exchange centers in key tourists locations at SBI premises. The advantage to SBI is that it is assured of a fixed income without any cost, whereas the advantage to TCIL is that it gets a full-fledged location in prime areas of the country. This year company tried to focus on walk-ins and the corporate segment. (2) Wholesale operations:- mainly consist of purchase and sale of foreign currency in large quantities from other authorized dealers (mainly banks) and full fledged/ restricted moneychangers. TCIL makes arrangements for physical shipment of currency notes so collected. Through out the period the RBI has administered a very complex system of exchange control. The statutory framework was provided by foreign Exchange Regulation Act (FERA), of 1947, which was amended in 1973, 1974, and 1993. It has been replaced by foreign Exchange Management Act (FEMA) of 2000. Application of FEMA may be seen broadly from two angles: Capital account transactions:-relate to the movement of capital e.g. transactions in property and investments. Current account transactions:-transactions which do not fall under this category. One can buy foreign exchange 60 days ahead of the journey date. In case it is not possible to use the foreign exchange within this period, it should be surrendered to an authorized dealer. BASIC TRAVEL QUOTA:As per the RBI regulations, all resident Indian citizens are eligible to avail foreign exchange not exceeding:A) USD 10,000 per person in one calendar year for one or more private visits; B) USD 25,000 to a person, irrespective of stay, for business travel or for attending conference. Tour Operators:-

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Authorized dealers will supply the forex to tour operators for remitting the cost of hotel reservations and rail, road and water transportation charges outside India without net of commission and mark up, due to the Indian agent. Form-A2:In order release foreign exchange an application in form-A2 will have to be filled in by the individual. Thomas Cook has bank notes in 25 currencies and travelers cheques and foreign currency drafts in major currencies. Our customers include persons traveling on business, leisure, employment, medical treatment, further studies and migration.

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Thomas Cook (India) Limited Key Data:

Ticker: Exchanges: 500413 BOM Country: Major Industry: Sub Industry: 2,917,125,781 (Year Ending Jan 2008). Indian Rupees December Ordinary INDIA Miscellaneous Miscellaneous Companies

2007 Sales

Employees:

2,550

Currency: Fiscal Yr Ends: Share Type:

Market Cap: Shares Outstanding: Closely Held Shares:

11,640,640,692 160,782,330 N/A

Subsidiary Companies:
Thomas cook (India) Ltd has also stake in other companies which are as follows:
Table-1.3

Company Name Hindustan Cargo Ltd Thomas Cook Tours Ltd India Tours Ltd Indian horizon Travels Tours Ltd TC Mauritius Holding Company Ltd

Number of shares hold by TCIL 250000 3 3 3 590000

The various financial aspects of the company from are as follows:-

The present pattern of equity holding (as of 31.03.08) is as follows:

Class of shareholder Promoters (TCIM Ltd.) Mutual Funds/ UTI Financial Institutions / Banks FII's Bodies Corporate Others TOTAL

Percentage of Equity 54.42 02.24 07.53 0.40 19.82 15.59 100.00

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Size

- Present in 55 cities across 200 locations in India Over 3,000 employees

Financial Highlights
Possesses the highest financial rating given by CRISIL P1 Revenue over Rs. 142.1 crores Highly profitable and consistent wealth generator Net worth around Rs. 183,89,69,999 The Company is almost debt free, generating positive cash flows.

Gross Profit and Net Profit

500 Rupees in Million 400 300 200 100 0 2001 2002 2003 Year 2004 2005 162 88 199 310 343 280 218 285 PBT PAT 439 441

Chart-1(a) to 441 million. 285 million. TCILs year ending is in October and not in March or December because:Tourist season has two components winter and summer. Winter season from November to April. Summer season May to October. Net profit :-( profit after tax) has increased from 88 million to Gross profit :-( profit before tax) has increased from 162 million

In order to capture the full one- year impact of a freshly started tourist season, reporting is done from November to December. 14

BUT NOW DUE TO THE TAKEOVER OF THE COMPANY BY A DUBAI

INVESMENT GROUP THE COMPANYS FINANCIAL YEAR WOULD BE NOW FROM JANUARY TO DECEMBER.

(2) Where the Rupee Goes:Rupee Spent (in %)

24% 31% Payroll(24) Ads(7) 7% 5% 33% Depriciation(5 Others(33) Profit(31)

Chart-1(b) Rupee Spent= Components of Expenses/ Total Income

(3) Earning Per Share:-

15

Chart-1(c) Earning Per Share=Profit after Tax/Number of Shares Thus the earning per share of the company has increased from 6.1to 19.5.

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(4) Current Ratio:-

3 2.5 2 1.5 1 0.5 0

2.7

2.5 2.1 2.1 1.9 Current Ratio

2001 2002 2003 2004 2005 YEAR

Chart-1(d) Current Ratio=Current assets/Current Liabilities The current ratio of the company is favorable as it is more than one.

The other top players in the tourism industry are:(1) crores. (2) COX&KINGS: Cox & Kings is a premium brand in all travel related services in the SOTC:-It is the 100% subsidiary of kouni travels. It has a turnover in excess of 200

Indian subcontinent, employing over 800 trained professionals. But still both the companys have not been able to establish itself as a super brand like THOMAS COOK. Thomas Cook is the only company, which offers Best products at Honest prices.

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2.5 ORGANISATIONAL CHART BOARD OF DIRECTORS

Mr.Madhavan Menon(Executive Director- Foreign Exchange and CEO) Mr. Udayan Bose ( Non-Executive Chairman) Dr. Jurgen Buser (Chief Financial Officer) Mr. Roland Zeh (Executive Director Finance) Mr. A.V. Rajwade (Non-Executive Director) Mr. Dilip De (Non-Executive Director) Mr. Manny Fontenla Novoa (Group CEO) Mr. Michael Hallisey (Executive Director) Mr. Hoshang S. Billimoria (Non-Executive Director) ORGANISATIONAL CHART

BRANCH HEAD CHANDIGARH

LEISURE TRAVEL HEAD

INSURANCE HEAD

FOREIGN EXCHANGE HEAD

EMPLOYEES

EMPLOYEES

EMPOLYEES

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Chapter-3

RESEARCH METHODOLOGY
3.1 Objectives of study:
(A) To study the customer preferences regarding the different services offered by

THOMAS COOK INDIA LIMITED through primary research. (B) To find out the competitive advantage of THOMAS COOK among the other top players

like SOTC and COX AND KINGS through secondary research.

3.2 Scope of study:Selection of sample size:As the list of customers was not made available to me, so I collected this information from the various travel agents in and around Chandigarh and a sample size of 50 was selected in a non probability manner.

3.3 Type of data:(a) Primary data:-To find out the customer preferences regarding the different services a non disguised, structured questionnaire was designed (Annexure-1).Dichotomous, multiplechoice questions were included along with ranking scale, likert scale and rating scales were used. (b) Secondary data:-To find out the competitive advantage of TCIL over other top players.

3.4 Data collection:(a) Primary data:- was collected by interviewing people at their places. And information was also collected by interviewing them on the telephone. (b) Secondary data:-was collected by visiting the web sites of SOTC and COX AND

KINGS. I also visited their offices and collected their brochures. 19

3.5 Statistical tools: - Simple statistical tools were applied mainly in order to find out the
customer preferences regarding the different services offered by TCIL.

3.6 Limitations of study: As the customer base was made available to me so I had to contact various travel Incorrect response by the customers leads to wrong interpretation and analysis. Customers sometimes dont respond to the visits made to them. agents who were at first reluctant to provide any information.

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Chapter-4

FINDINGS AND ANALYSIS 4.1 PRIMARY RESEARCH

Primary research was conducted mainly in order to find out the customer preferences regarding the different services offered by THOMAS COOK INDIA LIMITED. For this purpose I prepared a questionnaire to know that how many customers have availed the services of TCIL and to find which services customer prefer more. The questionnaire was filled by interviewing the customers. Copy of the questionnaire is enclosed at (Annexure-2). Method of Processing:After the completion of the survey, based on the various questions asked in the survey, a complete input of all the responses was arranged in a tabular form. Then a complete analysis was done of all the questions in the questionnaire.

QuestionNumber of respondents who have availed the services of TCIL and those who have availed the services of some other company out of the sample size of 50 TABLE-4.1(a)

Name of the company

TCIL

SOTC

COX&KINGS

OTHERS

TOTAL

Number of respondents 40 5 4 1 50

21

Percentage of respondents who have availed the services of TCIL and those Who have not availed?

8% 10%

2% TCIL SOTC COX&KINGS OTHERS 80%

Chart-4(a)

ANALYSIS:
From the pie chart it is clear that out of the 50 respondents nearly 80% of the people have availed the services of TCIL followed by SOTC and COX&KINGS. Thus, people prefer TCIL over the other top players.

QuestionNumber of customers who have not availed the services of TCIL are 10.All these people have rated the services of the company which they have availed as follows:TABLE-4.1(b) Name of the company Number of customers Analysis Out of 5 customers nearly:SOTC 5 3 customers have rated as- 2(dissatisfied) Only 2 customers have rated it as-4(satisfied) Out the 4 customers: COX&KINGS 4 2 people have rated as 3(neutral) and 2 people have rated as 4.(satisfied) There was only 1 customer who has availed the services of Others 1 some other company other than TCIL,SOTC and Cox&Kings.

Question22

Out of the 40 customers who have availed the services of TCIL they come to know about TCIL through different sources. TABLE-4.1(c)

Different sources Advertisement Friends Travel agents Others Total

10

20

40

The above information can be expressed in the form of percentage:

5% 25% Ads Friends 50% 20% Travel agents Others

Chart-4(b)

ANALYSIS:From the above pie chart we can see that most of the customers come to know about TCIL through travel agents followed by ads and friends. So the if the company wants to reduce the 23

cost of paying commission to travel agents it should try to spent more on advertisements which will cost less to the company.

QuestionOut of 40- 25 customers have availed the Leisure travel service of TCIL:-

TABLE-4.1(d)

Travel Service International

Number of customers 22

Average Score

0 .55

Domestic Not availed the services TCIL of

3 15

0.075 0.0375

Percentage division of those customers who prefer the leisure travel service of TCIL out of 40:-

37.50% 55%

International Domestic Not availed the travel sevices.

7.50%

Chart-4(c)

24

ANALYSIS:From the above table it is clear that customers prefer to avail more of international then of domestic services of TCIL. From the pie chart we can see that out of 40 customers nearly 55% of customers have availed international travel services followed by domestic and nearly 37.5% have not availed the travel services. Thus, TCIL has got the opportunity to provide more domestic services to the people to the people to increase its competitive advantage.

Question22customer who have taken the international travel service of TCIL have taken the following tours:-

TABLE-4.1(e)

International travel service Package tour Individual tour

Number of customers 18 4

% of customers 81.8% 18.18%

ANALYSIS:From the above table it is clear that out of 22 customers 81.8% of the customers prefer to take package tour and only 18.18% preferred individual tour.

PACKAGE TOUR:25

18 customers have taken the package tour of TCIL out of 22. Percentage division of the different tours preferred by customers.

11.11% 5.55% 16.67% 5.55%

61.10%

Europe America Far east Africa Australia

Chart-4(d)

ANALYSIS:From the above pie it is clear that nearly 61% of customers out of 18 prefer to take European tour of TCIL followed by Far East, Africa and America. Thus, the company should try to concentrate on various tours other than Europe through advertisements.

26

QuestionOut 40- 25 customers availed the travel services of TCIL, satisfaction level of customers regarding the following aspects:A) Services of tour manager:TABLE-4.1 (f) No. Of customers

5=Very satisfied 4=Satisfied 3=Neural response 2=Dissatisfied 1=Very dissatisfied

15 5 2 3 _

AVERAGE SCORE OF SERVICES OF TOUR MANAGER:-

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

0.6

Average Score

0.2 0.08

Average score 0.12 0 2 1

3 Rating

Chart-4 (e)

ANALYSIS:From the above it is clear that the average score of the customers who are satisfied with the services of tour manager is the highest followed by satisfied. The average score of those who are dissatisfied is .012, so the company needs to improve services of tour manager as still all are not very satisfied.

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B) Hotel accommodation: - Satisfaction level as follows:Table-4.1 (g) _____________________________________________________________ No. of customers -------------------------------------------------------------------------------------------------25 10 7 0 5 3 -------------------------------------------------------------------------------------------------The satisfaction level of the customers regarding the hotel accommodation can be expressed in the form of percentage:Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

12% 40% Very satisfied Satisfied Dissatisfied Very dissatisfied 28%

20%

Chart-4(f)

ANALYSIS:-

28

From the above it is clear that only 40% of the customers are really very satisfied with hotel accommodation given to them during the tour and still there are 33% who prefer that company should provide better hotel accommodation, so the company needs to improve on this front.

C) Transportation services: -Satisfaction level of the customers as follows:TABLE-4.1 (h) ____________________________________________________________ No. of customers -------------------------------------------------------------------------------------------------25 16 4 2 3 0 -------------------------------------------------------------------------------------------------The satisfaction level of customers regarding the transportation services can be expressed in the form of percentage:Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

29

12% 8%

0%

16% 64%

Chart-4(g)

ANALYSIS: From the above it is clear that out 25, 64% of the customers are very satisfied with the transportation services provided to them when they opt for the tour and only 12% of it are dissatisfied.

INSURANCE SERVICES
QuestionPreference of the customers regarding the various insurance services offered by TCIL:-

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All the customers who have availed the international travel service of TCIL had taken insurance from TCIL even if they have taken an individual tour of TCIL where insurance is not included in the tour price. Thus, out 40, 27 customers have taken the insurance services of TCIL:Percentage division as follows:-

33% 55.00% 2.00% 7.50% 2.50%

Overseas travel insurance Corporate care Scholar care Immigration care Not taken insurance

Chart-4(h)

ANALYSIS:From the above figure we can see that out 40 nearly 55% of the customers prefer to take leisure travel insurance of TCIL. But in case if the company wants to increase its revenue in insurance then the company needs to concentrate on corporate care, scholar care and immigration care insurance services as customers are still not aware that TCIL also provides insurance services.

Foreign exchange services:Question-

31

All the customers who have taken the leisure travel service of TCIL have availed the foreign exchange services also. Thus, out 40 customers nearly 35 customers have availed the foreign exchange services of TCIL:Only 5 customers have taken foreign exchange from banks and full fledged money changers. In the following chart:FFMC=full fledged money changers, %=percentage.

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

87.50%

Percentage

% division

7.50% TCIL Banks

5% FFMC

Different sources of foriegn exchange

Chart-4(I)

ANALYSIS:From the above it is clear that nearly 87.5% customers prefer to avail the foreign exchange services of TCIL as it is only one of the authorized dealers after the banks to deal in foreign exchange. Thus, the foreign exchange services are more preferred among the customers than leisure travel and insurance.

QuestionPeople prefer to take foreign exchange from TCIL for the following purpose:32

Percentage division: -

Holidays 12.50% 10.00% 7.50% 15.00% 55.00% Higher studies Not taken foreign exchange Business travel Immigration

Chart-4(j)

ANALYSIS:From the chart it is clear that mostly people prefer to take foreign exchange for holidays followed by business travel and then immigration and higher studies. Thus the company has an opportunity to improve on this front.

Question-

33

Out of the sample size of 50, 40 people have availed the services of TCIL. Following rating has been done by customers of the staff of Thomas Cook India Limited (Chandigarh).

A) Staff appearance:TABLE-4.1(I)

No. of Customers 40

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

10

11

--------------------------------------------------------------------------------------------------

12.50%

12.50% 22.50% Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

44% 25.00%

Chart-4(k)

ANALYSIS:34

From the chart it is clear that we can see that only 35% of the customers are satisfied with appearance of the staff of the employees working in TCIL (Chandigarh). Customers prefer that as it is a tourism company it should have a dress code.

B) Speed of service:TABLE-4.1(j)

No. of Customers 40

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

20

10

--------------------------------------------------------------------------------------------------

5% 15% 5% Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

50%

25%

Chart-4(L)

ANALYSIS:35

From the above it is clear that 75% of the customers are satisfied with the speed of service provided by the staff of TCIL (Chandigarh). Through this it is clear that there is a lot of coordination among the different departments of the company.

C)

Friendliness of the staff:TABLE-4.1(k)

No. of Customers 40

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

21

11

--------------------------------------------------------------------------------------------------

Very satisfied 7.50% 12.50% 0.00% 52.50% 27.50% Satisfied Neutral Dissatisfied Very dissatisfied

Chart-4(m)

ANALYSIS:36

From the above it is clear that 80% of customers have rated that they are satisfied with friendliness of the staff.

D) Professionalism:TABLE-4.1(L)

No. of Customers 40

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

19

11

--------------------------------------------------------------------------------------------------

10% 13%

3% Very satisfied 47% Satisfied Neutral Dissatisfied Very dissatisfied

27%

Chart-4(n)

ANALYSIS:From the pie we can see that 13% of the people have a neutral response about the professionalism of the staff of TCIL. So the company should try to convert this into a positive response.

Question37

Customer response regarding question 13 that TCIL charges honest prices.-

40.00% 37.50% 35.00% 27.50% 30.00% 25.00% 20.00% 15.00% 10% 10.00% 5.00% 0.00% SA A N
Attribute

Percentage

20%

% 5%

DIS

SDIS

Chart-4(o)

SA-Strongly agree, A-Agree, N= Neutral, DIS=Disagree, SDIS=strongly disagree

ANALYSIS:Though 65% of the customers believe that TCIL charges honest prices but still there are 35% of customers who have a negative response. This is due to the fact that customers still believe that TCIL caters only to the higher class people, so first of all this notion in the mind of the customers should be changed.

Question38

40 customers who have availed the services of TCIL have given the following rating of TCIL as a tourism company.

10 customers have given 90 points 12 customers have given 80 point 10 customers have given 70 points 8 customers have given 50 points.

ANALYSIS:From the above information it is clear that TCIL as a tourism company is rated between50 to 90. Still there are certain areas where the company needs to improve. The company should try to concentrate on its expanding the market of its various leisure travel and insurance services.

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Chapter-4

4.2 SECONDARY RESEARCH

FINDINGS AND ANALYSIS

Secondary research was conducted mainly in order to find out the Competitive advantage of TCIL over other top players like SOTC and COX and KINGS. What is competitive advantage:A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. Michael Porter identified two basic types of competitive advantage: Cost advantage. Differentiation advantage.

Competitive advantage exists when the firm is able to deliver the same benefits as the competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantage are positional advantages. A resource based view emphasizes that the firm utilizes its resources and capabilities to create competitive advantage that ultimately results in superior value creation. Firm may have distinctive resources like patents trademark, installed customer base, reputation of the firm. etc, Capabilities refer to the ability of the firm to utilize its resources effectively.

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The other top players in the industry who are in competition with THOMAS COOK INDIA LIMITED are:-

1. SOTC:A Division of Kuoni Travel India Ltd. A pioneer and market leader in outbound group travel, this division markets and operates foreign holiday packages under the SOTC World Famous Tours brand in India and in the big NRI markets of the Middle East, USA and UK. It is also active in the Incentive Tours and the Trade Fair Tours segments. SOTC operates from 26 branches with over 400 employees in India. Highlights of SOTC:

Pioneered Package Tours in India. Today, India's largest Outbound Tour Operator with a distribution network of 116 points across the country. Turnover in excess of 200 corers. Launched Happy Holidays in 1997. Customers can now Holiday Abroad and Pay Later in easy monthly installments. Introduced Namaste India Holiday Club in year 2002 giving opportunity to NRI's to discover India.

(2) COX &KINGS:Cox & Kings is the oldest established travel company in the world. Its distinguished history began in 1758 when it was appointed as general agents to the regiment of Foot Guards in India under the command of Lord Ligonier. Between 1750's and 1950's, Cox & Kings was witness to an exciting era in Indian history, and, in its own way, helped to shape it. Highlights of Cox&Kings: Destination management: Cox & Kings operates a range of group and individual tours to destinations throughout the Indian subcontinent for clients from all over the world. Outbound tourism: 'Duniya Dekho' Holidays to Europe, USA, Far East, South Africa, Mauritius, Australia and New Zealand.

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Domestic tourism:India with its large domestic consumer offers Cox & Kings a unique opportunity to launch its portfolio of 'domestic holidays' for people resident in India.

Incentive solutions: Incentive solutions are provided to customers and employees. Currency exchange:Cox&Kings has one of the division of full fledged money changers. Travel Insurance: Travel insurance services are provided by orient which provides insurance services only to travelers and not to general public.

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Competitive advantage of Thomas Cook India Limited over the other top players are:-

(A) Comparison Of The leisure Travel Services: Comparative analysis of the price of the European tours offered by the three top players:For analysis European tour has been taken because according the secondary data provided by TCIL the number of bookings for the European Tours was nearly 208.So the main competition among the three top players is selling the European tours.

Number of bookings for different tours

9% 5%

5%

Euope America Far East Africa 81%

Chart-4(p) From the above we can see that out of 254 bookings nearly 81% of the people have taken European tour, 5%have taken American and African tours and 9%have taken Far East tours.

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Comparison of European tour prices of three top players.

TABLE-4.2(a) SERVICES THOMAS COOK European extravaganza (13NTS/14DAYS) (14NTS/15DAYS) INR Cost for 2 adults:3,17,400 13NTS/14DAYS) INR INR 1,57,050 1,49,999 Grand Europe SOTC COX & KINGS European discovery

Cost of visas:-

Included in the above price

33,000

33,000

Taxes:Surcharge:Other options:Mt.Titlis Jungfrasyoch Disney land Grand evening London delights Grevin wax museum Aareschult Lido show Total= _ Early bird discount:=

Included Included

21,534 8,000

16,000 6,000

Included Included Included Included Included Included _____ 10,890 3,28,290 20,000

14,400 17,100 13,410 17,910 14,400 _____ ______ ______ 2,96,804 ______

14,300 17,050 8,800 17,600 _____ 2,750 2,200 17,050 2,84,749 ________

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Price= Price per adult= Price per adult per night=

3,08,290 1,54,145 11,010

2,96,804 1,48,402 11,416

2,84,749 1,42,375 10,952

Analysis: The prices mentioned for THOMAS COOK INDIA LIMITED are given in the brochure. In case if the rate of exchange increases then it is given as a discount to customers. The prices mentioned for SOTC which is also given in the brochure are subject to change with the increase in USD.Cost of visas; taxes&surcharge are not included in the price and hence are subject to changes according to the change in USD. The prices mentioned for Cox&Kings are not given in the brochure of the company. These prices are taken from the public folder of the company which is not shown to the customers, so there are many hidden charges which they charge from the customers.

Thus, from the above we can conclude that though the price charged by

THOMAS COOK is high but the services that are included in that price are more which justifies the higher cost. The company is able to sell its European tours at a higher price because it has the capability to utilize its resources like large network outside India and reputation of the firm effectively. TCIL has competitive advantage because it charges that price from the customer that is printed in the brochure and not at the present rate of exchange whereas other companies charge at the present rate of exchange, so it has differentiation advantage over its competitors.

(B) Competitive Advantage Of Thomas Cook India Limited Due To

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The Different Insurance Services Offered By The Company:

(1) THOMAS COOK INDIA LIMITED: Thomas Cook (India) Ltd. is the only travel company in India to have a registered license to sell insurance and offers its own Travel Insurance branded products. Thomas Cook India Limited is the licensed corporate agent for Tata Aig insurance company. The policies are sold to both Thomas Cook and Non Thomas Cook customers across India through Thomas Cook offices and Channel Partners. Though the rates at which insurance products are sold are high but still customers are availing the services because of differentiated services offered by the company as follows:#) Travel care overseas travel insurance policy: Travel care classic:This insurance plan is best suited for Indian residents traveling abroad. In some countries it is compulsory for visitors to have a medical insurance cover. This plan is ideally suitable for such set of customers traveling abroad on a short span of trip. Policy Features: Medical Cover:-Up to 50,000$ Emergency medical evacuation: Repatriation of the remains of the body if the person dies. Accidental death and dismemberment. Checked in baggage loss. Baggage delay. Loss of passport. Personal liability benefit :Up to 1,00,000 Automatic extension of the policy up to 7 days in case if the policy expires. Trip curtailment:-In case if the person is not able to continue due to medical reasons. Sickness dental relief. Travel care executive:

This plan is recommended for the people between the ages of 56 to 70 years. This plan includes all the above features except that it has coverage up to USD 2 lakhs. 46

Travel care premium:-

This plan covers all the above features except that it has coverage up to USD 5 lakhs. Family care overseas insurance policy:-

This plan provides coverage of up to USD 50,000 for each immediate family member and is more cost effective than a single trip policy. Travel care annual multitrip:-

This plan is suitable for those people who travel abroad frequently. This plan has coverage up to USD2, 50,000. #) Scholar care overseas travel insurance:This policy is designed for Indian resident students traveling abroad for higher education. In some Universities the Insurance premium is included in tuition fees and this plan is best suited for the student who wants to avail of the many benefits this policy offers beyond hospitalization benefits. It also includes scholar care executive, classic and premium.

#) Corporate care travel insurance for business:Unique Benefits of Corporate Travel Policy: 1. All employees are covered under this. 2. No medical test required. 3. Settlement of claims within 7 days. 47

4. Unique Thomas Cook International Benefit- Complimentary Goa Holidays. Other important Travel perks that are provided by THOMAS COOK which differentiates it from the other top players are:Travel Perks is a comprehensive travel companion for globetrotters. An annual Travel Perks membership provides you with 3 unique advantages from Thomas Cook that you just cant do without:1. Latitude Membership: Wherever you're going, whatever you need, there's a world of useful recovery and discovery services at your fingertips.e.g recovery insurance services, arrangement of flights, tickets for events, planning leisure activites. 2. Post Paid Global Calling Card: Stay in touch with your near and dear ones, from anywhere in the world.

Call India from anywhere in the world. Bills will be debited to your designated credit card in INR.

3. IAPA Membership: catering to over 4, 00,000 globetrotters like you. IAPA Membership entitles you to a range of discounts and benefits across the world. Some of them are:

Up to 50% discounts at hotels, worldwide. Up to 30% discounts on car rentals.

An overview of the insurance market: Market size of TATA AIG is approximately 25lakhs/month in Chandigarh.Out which nearly 30 to 35% of the business comes from THOMAS COOK. Number of units in Chandigarh from where the insurance business comes from are:

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6 50 50 Travel agents Student consultant Emigrant agents Corporates 100

Chart-4(q) Thus from the above we can see that the insurance business still has the potential to grow because the highest income till date from insurance is nearly 2,91,400.

(2) SOTC:SOTC has a tie up with ICICI LOMBARD travel insurance these insurance services are provided only by SOTC only to those people who have taken the tour of the company. It is not a separate department of the company. It does not provide any other travel benefits also.

(3)COX&KINGS:COX&KINGS has a tie up with orient insurance which also provide only travel insurance services without any elaborate plans as provided by THOMAS COOK. It is also not providing any travel perks etc,

ANALYSIS:
From the above comparison, it is clear that THOMAS COOK only has the registered license to sell its own insurance products whereas other competitors do not have there own insurance products so the company has competitive advantage because of differentiated services.

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(C) COMPETITIVE ADVANTAGE OF THOMAS COOK DUE TO THE FOREIGN EXCHANGE SERVICES.
Thomas Cook has over 125 years of experience in the field of travel related foreign exchange. Thomas Cook is the only non-banking institution to have been granted an Authorized Dealers license to deal in foreign exchange by the Reserve Bank of India. Though customers believe that it charges higher price in comparison to the market rate, but still customers prefer the foreign exchange services of TCIL as it provides differentiated services. The various foreign exchange services offered by THOMAS COOK are: 1. CURRENCY NOTES:We purchase and sell Bank notes in a wide range of 25 destination currencies. The currencies are sold / accepted in all denominations subject to them being in circulation. We do not accept coins. When traveling abroad it is advisable to carry local cash. It is especially needed on arrival in a foreign land, to pay for taxis, tips etc. RBI Regulations allow Resident Indians to purchase a maximum of USD 2000/- or its equivalent in currency notes per trip

2. TRAVELERS CHEQUES:We purchase and sell Travelers Cheques in various foreign currencies. Travelers Cheques are safer than cash, have a lifelong validity and are accepted worldwide. Thomas cook sells commission free American Express, Visa and MasterCard Travelers Cheques. We have the following cheques and currencies available: 50

American Express US Dollars GB Pounds Euro Australian Dollars Canadian Dollars Japanese Yen South African Rand

Visa US Dollars GB Pounds Euro

MasterCard US Dollars GB Pounds Euro Australian Dollars Canadian Dollars Japanese Yen Swiss Francs

3. GLOBAL MONEY CARD:Thomas Cook presents the Global Money Card. Now, no more hassles of carrying or exchanging various currencies while you travel the world. With the Thomas Cook Global Money Card you can withdraw cash in the local currency from global VISA ATMs and use the card to pay for goods and services across the world. In short, nothing is safer, simpler and easier than the Thomas Cook Global Money Card. A. Worldwide Acceptance: When you're abroad, you can use your card to withdraw cash, in local currency, from over 9, 24,000 VISA ATMs. B. Smart and easy money: It is issued by SBI and backed by visa. C. Safe and Secure: The funds on the card are secure and protected against misuse at ATMs with a 4-digit PIN D. Refund: The unused money on your card can be enchased.

4. Drafts and wire transfers:Wire Transfer of Funds Thomas Cook offers a most convenient channel to send money abroad through SWIFT wire transfers. Quick and cost effective transfer of funds can be affected through the Thomas Cook network of offices and its correspondent banks worldwide. Funds are usually transferred within 48 working hours

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Foreign Currency Drafts Thomas Cook issues foreign currency drafts in major currencies that include:

US Dollars GB Pounds Euro Australian Dollars Canadian Dollars Swiss Francs New Zealand Dollars

These are especially useful to businesspersons attending conferences / training programs, students for remitting Application / Tuition / Examination Fees for higher studies and persons traveling for medical treatment. 5. MONEY GRAM:It is one of the world's largest money transfer services with an extensive network of over 70,000 agents worldwide. So, your money reaches India in minutes.

6. Cash passport:Through the cash passport card, you can withdraw funds from any cash machine showing the VISA symbol. Cash Passport includes Emergency Assistance, which give you instant help day and nights wherever you are in the world. Lost or stolen: - If your cash, travelers cheques or credit card are lost or stolen we can immediately arrange emergency funds. Medical Emergencies: - We can put you in touch with local doctors or hospitals wherever you are in the world.

ANTI MONEY LAUNDERING POLICY:-

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Thomas Cook has adopted an Anti-Money Laundering Policy which states that Staff must not knowingly assist criminals to launder proceeds of drug sales, terrorism or other serious crimes. If we suspect such activity we will alert the relevant Government Authority and give co-operation. To follow the anti money laundering policy it is important to take care of the following aspects:1. Know your customer which may be the various banks,etc. with which THOMAS COOK deals. 2. Source of funds:-It means that we should know from where money is coming in the accounts of the customer. 3. End use of funds: - The purpose for which the funds are used.

2. SOTC:
SOTC provides foreign exchange from Travel mate Forex is a full fledged money changer approved by RBI. It provides the services of travelers cheques & global money card. It does not provide services like money gram, drafts and wire transfers or cash passport facilities, as provided by TCIL. It has only 9 branches across India.

3. COX &KINGS:Cox & Kings has a full-fledged money changing division in Cox & Kings Offices servicing the needs of the corporate traveler and the leisure travel clients. It also provides the services of travelers cheques. It does not provide services like cash passport or money gram facilities.

ANALYSIS:From the above comparison we can see that THOMAS COOK is the only authorized dealer in foreign exchange after banks and revenue generated by this division is nearly 67% of the total revenue. Moreover TCIL has a125 years experience in the field of foreign exchange due to which it has a large customer base. It offers more differentiated services in comparison to SOTC and COX&KINGS due to which it has competitive advantage.

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Thus, from the above analysis we can see that Thomas Cook has competitive advantage not because of the cost charged by the company but because of the differentiated services offered by the company. That is why it is able to earn more profits than its competitors are earning. Revenue generated by TCIL is nearly 1305 million, which is much higher than the revenue earned by SOTC and COX&KINGS.

Chapter-5

5.1 CONCLUSION AND SUGGESTIONS

Conclusions:
From the finding and analysis of primary and secondary research we can conclude the following: Nearly 80% of the customers out of 40 prefer the services of TCIL over the other top players like SOTC and COX&KINGS. It clearly shows that it has a greater market share in comparison to its competitors. TCIL should try to reach large percentage of public through advertisements as only 25% of the customers out of 40 come to know about TCIL through ads. Only 25 customers out of 40 have availed the leisure travel service of TCIL, so still there is a larger part of the market in Chandigarh which is untapped. Satisfaction of the customers regarding the services of the tour manager, and transportation services is fine. But the response of the customers regarding the hotel accommodation is average so the company needs to improve on this front. The company needs to concentrate on its insurance services like corporate care, scholar care and immigration care. In case of foreign exchange services it needs to concentrate on providing exchange for business travel, immigration and higher studies. From the secondary research it is clear that company has competitive advantage not because of cost charged by the company but because of the differentiated services offered by the company. 54

Suggestions: Suggestions given by large number of customers was that TCIL should start the EMI system of payment so that even the salaried class customers can avail the services of TCIL. The company should have a dress a code so that it gives the feel of a tourism company. In case if the company wants to increase its stake in Chandigarh then it should try to promote its domestic service as done by COX&KINGS India dekho campaign. TCIL in Chandigarh has more stress on selling the European tours. It should try to concentrate on the other tours so that leisure travel service can contribute more to the revenue. The customers who do not prefer to avail the services of TCIL they feel that TCIL charges high prices without any differentiated services. The company should try to take out this notion from the mind of customers.

The future of Thomas Cook India Limited looks bright as it has been taken over by a Dubai investment group. Now it has a stronger financial international parent and more widespread network. Recently the company on 28Th June 2006 has acquired LKP forex a full-fledged moneychanger to increase its foreign exchange services. Company has adopted a new technology as FOS, software that helps in maintaining a record of the various customers who have availed the services of TCIL. But now the company can face competition from a German based company TUI entered in India on April 7, 2005.and it has recently been opened in Chandigarh, which can give tough competition to TCIL. But TCILs aggressive business plans, strong business franchise, and the right experience it is well positioned to grab a lion's share of the growing travel and tourism industry in India.

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BIBLIOGRAPHY
Internet
www.google.com www.One97 world.net www.chinatelecom-h.com/eng/business/dataninternet.htm www.cellular-news.com/ www.bsnl.co.in/ - 50k www.fujitsu.com/global/news/ pr/archives/month

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