A PROJECT REPORT

ON

THOMAS COOK INDIA LIMITED THE EMERGING

LESIURE TRAVEL GIANT COMPARATIVE ANALYSIS

Submitted to:Submitted to: Mrs. SumitaMrs. Sumita

KukrejaKukreja

Submitted by: Submitted by: Akshay GargAkshay Garg

Enrollment No.Enrollment No. 0581490501005814905010

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.

1

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.

2

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.

TCIL’s 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.

4

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.

5

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 travel-

related 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.

6

2.3 PRODUCT PROFILE

TCIL’s 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 from

Chandigarh.

The Incoming Services sub-division caters to the needs of tourists visiting India from all

over the world.

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

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.

2) Confirmation about the booking:-

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

Visas:-

7

It is mandatory to be in possession of valid visas of the country/ ies to be visited

for travel on your tour.

Thomas Cook will assist you in obtaining the visas from the concerned

authorities.

It is entirely at the discretion of the concerned authorities to grant/reject your

visas.

TCIL will deduct Rs.2,000/- per person towards administrative charges and

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:-

8

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 TCIL’s foreign currency division can be divided into two segments:-

(1) For retail operation foreign exchange dealer relies mainly on purchase and sale of

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

9

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:-

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.

10

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.

11

Thomas Cook (India) Limited Key Data:

Ticker: 500413 Country: INDIA

Exchanges: BOM Major Industry: Miscellaneous

  Sub Industry: Miscellaneous Companies

2007 Sales2,917,125,781

(Year Ending Jan 2008).Employees: 2,550

Currency: Indian Rupees Market Cap: 11,640,640,692

Fiscal Yr Ends: December Shares Outstanding: 160,782,330

Share Type: Ordinary Closely Held Shares: N/A

Subsidiary Companies :

Thomas cook (India) Ltd has also stake in other companies which are as follows:

Table-1.3

Company Name Number of shares hold by TCIL

Hindustan Cargo Ltd 250000

Thomas Cook Tours Ltd 3

India Tours Ltd 3

Indian horizon Travels Tours Ltd 3

TC Mauritius Holding Company Ltd 590000

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

  Dec ' 07 Dec ' 06 Oct ' 05 Oct ' 04 Oct ' 03

Sales 215.22 221.83 121.79 124.62 105.08

12

Operating profit 65.22 55.95 39.90 42.33 35.00

Interest 27.99 5.73 0.63 0.60 1.04

Gross profit 47.14 71.36 48.02 48.41 37.83

EPS (Rs) 2.08 2.64 1.84 1.88 1.48

Annual results in brief (Rs crore)

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

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

Class of shareholder Percentage of Equity

 Promoters (TCIM Ltd.)  54.42

 Mutual Funds/ UTI  02.24

 Financial Institutions / Banks  07.53

 FII's  0.40

 Bodies Corporate  19.82

 Others  15.59

 TOTAL  100.00

13

Chart-1(a)

Gross profit :-( profit before tax) has increased from 162 million

to 441 million.

Net profit :-( profit after tax) has increased from 88 million to

285 million.

TCIL’s 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.

In order to capture the full one- year impact of a freshly – started tourist season, reporting is

done from November to December.

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

INVESMENT GROUP THE COMPANY’S FINANCIAL YEAR WOULD BE NOW FROM

JANUARY TO DECEMBER.

(2) Where the Rupee Goes:-

Rupee Spent (in %)

14

Chart-1(b)

Rupee Spent= Components of Expenses/ Total Income

(3) Earning Per Share:-

15

16

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.

17

(4) Current Ratio:-

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) SOTC:-It is the 100% subsidiary of kouni travels. It has a turnover in excess of 200

crores.

(2) COX&KINGS: Cox & Kings is a premium brand in all travel related services in the

Indian subcontinent, employing over 800 trained professionals.

But still both the company’s 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.’

18

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 HEADCHANDIGARH

LEISURE TRAVEL HEAD

INSURANCE HEADFOREIGN

EXCHANGE HEAD

EMPOLYEESEMPLOYEESEMPLOYEES

19

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, multiple-

choice 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.

20

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

agents who were at first reluctant to provide any information.

Incorrect response by the customers leads to wrong interpretation and analysis.

Customers sometimes don’t respond to the visits made to them.

21

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.

Question-

Number 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

22

Percentage of respondents who have availed the services of TCIL and those

Who have not availed?

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.

Question-

Number 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

SOTC 5

Out of 5 customers nearly:-

3 customers have rated as- 2(dissatisfied)

Only 2 customers have rated it as-4(satisfied)

COX&KINGS 4

Out the 4 customers:

2 people have rated as 3(neutral) and 2 people have

rated as 4.(satisfied)

Others 1

There was only 1 customer who has availed the services

of some other company other than TCIL,SOTC and

Cox&Kings.

23

Question-

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 Advertisemen

t

Friends Travel

agents

Others Total

10

8 20 2 40

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

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

cost of paying commission to travel agents it should try to spent more on advertisements which

will cost less to the company.

24

Question-

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

TABLE-4.1(d)

Travel

Service

Number of

customers

Average Score

International

22

0 .55

Domestic

3

0.075

Not availed the

services of

TCIL

15 0.0375

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

Chart-4(c)

25

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.

Question-

22customer who have taken the international travel service of TCIL have taken the following

tours:-

TABLE-4.1(e)

International

travel service

Number of customers % of customers

Package tour 18 81.8%

Individual tour 4 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:-

26

18 customers have taken the package tour of TCIL out of 22. Percentage division of the

different tours preferred by customers.

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.

27

Question-

Out 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 15

4=Satisfied 5

3=Neural response 2

2=Dissatisfied 3

1=Very dissatisfied _

AVERAGE SCORE OF SERVICES OF TOUR MANAGER:-

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.

B) Hotel accommodation: - Satisfaction level as follows:-

28

Table-4.1 (g)

_____________________________________________________________

No. of Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

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:-

Chart-4(f)

ANALYSIS:-

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:-

29

TABLE-4.1 (h)

____________________________________________________________

No. of Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

customers

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

25 16 4 2 3 0

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

The satisfaction level of customers regarding the transportation services can be expressed in the

form of percentage:-

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.

30

INSURANCE SERVICES

Question-

Preference of the customers regarding the various insurance services offered by TCIL:-

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:-

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.

31

Foreign exchange services:-

Question-

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.

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.

Question-

32

People prefer to take foreign exchange from TCIL for the following purpose:-

Percentage division: -

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 Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Customers

40 5 9 10 11 5

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

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 Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Customers

40 20 10 2 6 2

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

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 Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Customers

40 21 11 0 5 3

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

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 Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Customers

40 19 11 5 4 1

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

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.

Question-

37

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

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.

Question-

38

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.

39

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.

40

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.

41

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.

42

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

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.

43

Comparison of European tour prices of three top players.

TABLE-4.2(a)

SERVICES THOMAS

COOK

SOTC COX &

KINGS

European

extravaganza

(14NTS/15DAYS)

INR

Grand Europe

13NTS/14DAYS)

INR

European

discovery

(13NTS/14DAYS)

INR

Cost for 2 adults:- 3,17,400 1,57,050 1,49,999

Cost of visas:- Included in the above

price

33,000 33,000

Taxes:- Included 21,534 16,000

Surcharge:- Included 8,000 6,000

Other options:-

Mt.Titlis Included 14,400 14,300

Jungfrasyoch Included 17,100 17,050

Disney land Included 13,410 8,800

Grand evening Included 17,910 17,600

London delights Included 14,400 _____

Grevin wax

museum

Included _____ 2,750

Aareschult _____ ______ 2,200

Lido show 10,890 ______ 17,050

Total= 3,28,290 2,96,804 2,84,749

_ Early bird

discount:=

20,000 ______ ________

44

Price= 3,08,290 2,96,804 2,84,749

Price per adult= 1,54,145 1,48,402 1,42,375

Price per adult per

night=

11,010 11,416 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

45

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.

46

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.

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:

47

1. All employees are covered under this.

2. No medical test required.

3. Settlement of claims within 7 days.

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 can’t 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.

48

Number of units in Chandigarh from where the insurance business comes from are:

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.

49

(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 Visa MasterCard

US Dollars US Dollars US Dollars

GB Pounds GB Pounds GB Pounds

Euro Euro Euro

Australian Dollars Australian Dollars

Canadian Dollars Canadian Dollars

Japanese Yen Japanese Yen

South African Rand 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

51

network of offices and its correspondent banks worldwide. Funds are usually transferred within

48 working hours

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.

52

ANTI MONEY LAUNDERING POLICY:-

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 traveler’s 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

traveler’s 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

53

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.

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.

54

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.

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.

55

But TCIL’s 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.

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

56