tourism coxndkings final
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StrategicManagement
Balram singlaSushilkumar balvirAayush jainRajan doshiRajdeep chahalDevi minakshi
Sahiti chintapalli
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TOURISM INDUSTRY IN INDIA Indian Tourism industry is one of the most important
export industries of the country. Although theinternational tourist inflow is relatively low, India has
found tourism emerging as an important sector ofits economy.
Recent statistics have revealed that during the firstquarter of 2010, the performance of the tourism
industry has been very encouraging which hasregistered an 11% increase in foreign touristarrivals.
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ABOUT COX & KINGS
Established in India in 1978
Biggest asset: trust and comfort that clients have in it
Won several awards and recognitions:
Indias Top Rated Tour Operator Outbound by theEconomic Times & Travel Agents
Association of India Travel Awards (2009)
Best Domestic Tour Operator by TAFI-abacus Awards
for Business Leadership in Tour Operating (2009)
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ABOUT COX & KINGS
C&K has always come out with Innovative andCustomized products to suit its customers needs,e.g. One Stop Shop for varied travel requirements
like Visa, Ticketing, Holidays, Insurance andForeign exchange among others
C&K has created brand awareness among travelersthrough its products like Duniya Dekho, Bharat
Dekoand FlexiHol for Outbound Travel,Domestic Travel and Flexible Individual Travellersrespectively.
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ABOUT COX & KINGS
C&K operates in 19 countries through itsSubsidiaries, Branch offices and Representativeoffices.
In India, it has 255 points of presence covering164 locations through a mix of 14 branch salesoffices, 56 franchised sales shops and a mix of
185 General Sales Agents (GSAs)and PreferredSales Agents (PSAs).
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MAHESH KADAM ROLL NO :44
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Destination Management
Outbound Tourism
Business Travel
Incentive & Conference Solutions
Domestic Holidays
NRI
Trade Fairs
Foreign Exchange
Insurance
Student Business
The principal services offered by the company
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2010-11 2009-10 2008-09 2007-08
COX & KINGS 11.24 7.96 13.96 11.48
Thomas Cook 1.96 1.04 1.99 1.81
Indian TourismDevelopmentCorporation
-1.00 -1.67 3.76 6.53
International Travel
House limited
20.90 14.13 10.24 13.19
EPS
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cox ITC
NetIncome incr.
2010-11 2009-10 2008-09 2007-08
COX & KINGS
252.93 182.00 161.22 122.14
Thomas Cook
282.51 242.95 272.45 244.31
Indian TourismDevelopment
Corporation 392.36 297.55 408.84 467.38
InternationalTravel Houselimited 147.30 109.72 105.11 80.77
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cox ITC
xpense
n Cr.
2010-11 2009-10 2008-09 2007-08
OX & KINGS
116.62 92.42 86.24 65.45
homas Cook
193.33 184.70 184.79 169.19
ndian Tourismevelopment
orporation 399.24 308.22 372.93 391.82
nternationalravel Housemited 72.19 57.98 81.75 55.22
20 0 2009 0 2008 09 200 08
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cox ITC
Net Profitin Cr.
2010-11 2009-10 2008-09 2007-08
COX & KINGS 76.72 50.06 38.22 32.06
Thomas Cook 41.54 22.16 33.39 33.41
Indian TourismDevelopment
Corporation -8.59 -14.31 25.38 44.08
InternationalTravel Houselimited 16.71 11.29 8.18 10.54
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Net Profit in Cr.
Liq id Cuerrent Ratio Quick Ratio Debt/Equity Long term
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cox ITC
LiquidRatios2010-11
Cuerrent Ratio Quick Ratio Debt/EquityRatio
Long termDebt-equityRatio
COX & KINGS
10.43 10.37 .4 .
Thomas Cook
1.11 2.27 .65 0.0
Indian TourismDevelopment
Corporation 1.76 1.60 --
InternationalTravel Houselimited 1.75 1.72 .01 .0
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Liquid Ratios 2010-11
P fi bili O ti N t P fit ROCE(%) R t N t
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cox ITC
ProfitabiliyRatios2010-11
Operatingprofitmargin(%)
Net ProfitMargin(%)
ROCE(%) Return on NetWorth(%)
COX & KINGS
50.55 30.33 8.79 7.25
Thomas Cook
27.68 15.49 12.50 13.58
Indian TourismDevelopment
Corporation -13.44 -4.78 -4.12 -4.56
InternationalTravel Houselimited 50.17 11.50 70.40 18.89
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Profitability Ratios 2010-11
M Inventory Debtors Fixed Assets Total Assets
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cox ITC
Management EfficiencyRatio2010-11
InventoryTurnoverRatio
DebtorsTurnover Ratio
Fixed AssetsTurnover Ratio
Total AssetsTurnover Ratio
COX & KINGS
32.73 1.03 5.54 016
Thomas Cook
-- 1.49 -- --
Indian TourismDevelopment
Corporation -- 4.34 -- --
InternationalTravel Houselimited -- 1.94 -- --
C h Fl I di t R ti Dividend Payout Dividend Payout Earni
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cox ITC
Cash Flow Indicator Ratio2010-11
Dividend PayoutRatio Net Profit
Dividend PayoutRatio Cash Profit
EarniRatio
COX & KINGS
10.34 9.46 89.65
Thomas Cook
22.29 17.47
Indian Tourism DevelopmentCorporation
-- --
International Travel House limited
21.12 13.20
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Income of COX & KINGS increased more than 100%in last 3 years.
Current ratio of COX & KINGS is 6-8 times higher to
its competitor. Net profit in 2010-11 has also increased by more than50% over the previous year.
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SEGMENTATION OF TOURISTSBase of Segmentation Categories
Holiday Mass Market, Popular Market,Individual Market
Demand Primary, Secondary, Opportunity
Geography National, International
Psychographics Lifestyle, Personality, Knowledge
Demography Age, Sex, Religion
Socio-Economic Rich-Poor, Urban-Rural, Literate-Illiterate
Purpose Business, Leisure, Culture tourism
Age Teens, Youths, Senior Citizens
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TARGET AUDIENCE SEGMENTATIONBase of 0Segmentation for Cox &Kings
Categories
Non Users Lack willingness and ability (in terms ofincome and leisure time)
Potential Users Have the willingness but the marketingresources have not been used in an
optimum way to influence their impulse
Actual Users Already using the services generated bytourism service providers
Occasional Users Although they do possess the requisiteincome and leisure, they have not formeda habit of traveling
Habitual Users Frequent travelers
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SEGMENTAL PRESENCE
Corporate Travel
Customized business
travel solutions
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LEISURE TRAVELCox & Kings offers products that are either pre-packagedthrough brochures or tailor-made as per requirements of agroup and an individual traveler. Leisure Travel can Outbound,
Inbound or Domestic. It contributes more than 90% of theconsolidated revenues in each of the three most recent financial
years.Offerings
Outbound Travel Inbound Travel (Destination management)
Domestic Travel Meeting, Incentives, Conferences and Exhibitions (MICE) Trade Fairs
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VISA PROCESSING & FOREIGN EXCHANGECox & Kings provides foreign exchange services to customers in India as a
licensed Category II Authorised Dealer .provides foreign exchange services either as part of Leisure Travel and Corporate Travel packages or on a standalone
basis. Cox & Kings provide visa processing services as an outsourced
business solution to diplomatic missions in various countries, where weare the providers of visa
processing services for inbound travellers in India. Visa services are provided in the categories of Tourist visa, Transit visa,
Business visa, Student visa,
Conference visa and Entry and Employment visa Outsourced businesssolution provider todiplomatic missions Licensed retail foreign exchange dealer in India
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CORPORATE TRAVELCox & Kings offers customized business
travel solutions to corporate clients in Indiathrough a team of dedicated corporate
relationship managers. Provide corporate travel services in India to
more than 200 companies, both domestic
and international.Customized business travel solutions
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LEISURE TRAVEL Trade Fairs
Retail clients in India, UK, Australia, NewZealand, Japan, USA and UAE
Corporate Travel
200+ companies located in India
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VISA PROCESSING & FOREIGN EXCHANGE Visa for India from Germany, UAE, Hong
kong, Greece and Singapore
Visas for Malaysia and Singapore from India
and French Visa from UK
Fx operations in India
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SWOT ANALYSIS
STRENGTHS Strong Brand Value International Market Presence
Strong segmental performance Wide Distribution Network Asset-light model Relationship with key suppliers
Delivering high quality customer service Trained Professional Staff Strength
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WEAKNESSES Substantial investment needed to competewith International firms entering Indian market
through tie-ups or buy-out of local firms
Premium products brand image would affectadversely in competition with cheaper
operators or charters.
Industry move towards more directdistribution and reduced commissions
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OPPORTUNITIES Franchisee network to penetrate smaller
cities
with untapped propensity to travel
Wider reach through net enabled sales
Acquisitions within the industry to provide
significant synergies and economies of scale.
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THREATS Tourist flow is highly sensitive to adverse
Political, natural, economic events.
Increase in tax incidence on industry
Existing Regulatory framework and
changes
regarding registrations, disclosures andstate
funds affect C&K as well their suppliers
including CRS companies.
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BUSINESS MODEL
Domestic Strategy
Foray into Tier II and Tier III cities
Expansion of outbound leisure travel sub-segment
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International Strategy
Inorganic growth through selective
acquisitions
Increasing the global distribution network
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Strategic initiatives for profitable growth
Constant up gradation of product and service
offerings Increasing online presence through
a global technology platform
Consolidated Buying Group Strategy leading
to profitable business
Creating strong shareholder value
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INDUSTRY SIZE
Indian economy is the 4th largest economy globally T & T industry in India will grow at a CAGR of 10.2 %
over 2010-2020; thus a fast growing T & T market
Direct contribution of Travel &Tourism to GDP isexpected to be INR 1,570.5 bn (1.9% of total GDP) in2011, rising by 8.1% pa to INR 3,414.8 bn (2.0%) in2021
India is expected to attract 6,179,000 international
tourist arrivals in 2011 which is expected to rise to11,149,000 in 2021 i.e. an increase of 6.1% pa.
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Over the past years, US and the UK remainedthe top two largest source countries for Indiaand are expected to continue till 2015
Over 2010-2015, inbound tourism is expected to
increase by CAGR of 6%, whereas tourismreceipts are expected to increase by a constantvalue CAGR of 3%.
An increased inflow of tourists was seen from
South Africa , Malaysia and Brazil, and thus thefastest growth in spending was seen by thesecountries
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The recovering economy, improved consumerconfidence and attractive deals has led to 13%growth in the number of departures from India in2010 and is expected to increase at a CAGR of 12%by 2015.
US and Singapore continued to be the top twodestinations in terms of outgoing tourist expenditurein 2010, accounting for a combined share of nearly20% of total outbound expenditure.
In 2010 the most outbound tourists visited Singapore,Malaysia , the United Arab Emirates and Thailand.Apart from these destinations, Egypt, Indonesia andItaly are the emerging outbound destinations.
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The number of trips has increased by 14% in 2010and is expected to increase by a CAGR of 14% in2015.
Karnataka was the fastest growing domestic
destination in 2010, followed by Tamil Nadu andBihar.
In 2010, domestic tourist expenditure increased by15% and is expected to continue at a CAGR of 8%
In 2010 Andhra Pradesh received the largest share ofdomestic tourists, followed by Uttar Pradesh andTamil Nadu
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KEY EVENTS
1970 Cox & Kings agency was bought by Grindlays
Bank in a deal with the Indian Govt.1970-99 Largely operated as a ticketing agent; non
leisure business accounted for over 50% of therevenues in 1999
1999-2006 Expanded product portfolio to become a full
service Indian tour operator
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2006-09
Acquired and consolidated businesses withfocus on leisure travel; listed on the Indian
stock exchange.
2010-11
Cox & Kings is a global tour and travelcompany. The Company is a one stop shop
for travel solutions.
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DEMAND DRIVERS
Foreign holidays becoming more of an aspiration asIndian society is being increasingly becoming driven byconsumerism.
With the rise in disposable incomes, the interest and
willingness to spend in overseas travel has increased. Stability in tour-prices and increase in value-added offers
such as Holiday now, Pay Later, Take your Partner onHoliday Free, Holiday Vouchers.
Booming economy, affordable air-fare, betterconnectivity, prosperous middle class have togethercontributed to a large number of holiday seekers.
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BASICS OF COMPETITION
Technology Platforms
Web enabled reservation engine
Centralized dynamic packaging system
Covers all travel related services such as
reservations, insurance, visa and packagetours
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Security
Servers are secured with firewalls
Robust security systems including biometrics
identifiers, fingerprints and photographs forvisa application
Strong disaster management, including
recovery solutions and scheduled backups
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Services
B2B as well as a B2C solution, providing a
backbone to the Global Distribution Systems
(GDS)
Online payment gateways integrated to
existing technology platform
Fully integrated computer reservation systems
(CRS) with our mid and back officeoperations
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PORTERS FIVE FORCES MODEL
1. Threat of New entrants
Lowered consumer search costs anddecreased switching cost open up a marketfor Potential new entrants , this reduces theentry barrier for new companies by opening
the distribution channel and Capitalrequirement
Internet is one of possible bye pass
instrument through which new entrants canenter the market, this can reduce entry barrierfor new entrants.
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2. Rivalry Among Existing Firms within the IndustryFor Cox and Kings biggest rivalry in India is From
sotc,Thomas Cook The Internet brings many more companies into
competition with one another by expanding geographicalmarkets and reduce entry barrier, it can raise the rivalrywithin the industry and increase the pressure for pricediscounting. For Example Makemytrip.com, Travelguru,Yatra.com etc.
3.Power of SupplierCox and Kings has got tie ups with airlines and hotels fortheir travel packages. Increased dependence on themcan affect the price
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4. Power of Buyer The reduced Switching costs of Buyer also increase
the bargaining power of buyer. The customer can easily compare different prices and gain
knowledge about products, thus prices becomes the most
important criterion.
5.Threat Of Substitutes
Similar Products and services offered by the competitors at
cheaper rates. Internet tourist sites like makemytrip.com, yatra.com etc. offers
new possibilities and instruments to meet customer needs byoffering new products and services which could substitute existingones
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SIZE OF THE INDUSTRY
The tourism and hospitality industry is the largest servicesector in the country.
It adds around 6.23 per cent to the national GDP and 8.78per cent of the total employment in the country.
During January-September, 2011, the total FTAs(foreigntourist arrivals) stood at 4,220,000 with a growth of 10.0 percent, as compared to the FTAs of 3,835,000 during January-September, 2010.
FEE(Foreign exchange earnings ) from tourism in rupeeterms during January-September 2011 were US$ 10.25billion with a growth of 16.6 per cent over FEE of January-September 2010
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CRITICAL SUCCESS FACTORS FOR COX AND
KINGS
Motivation of Employees at Cox and Kings.The achiever isoffered unconventional destinations all over India asincentives.
Extensive collaborations with airlines and hotels in exquisite
locations to make travel stress free Customize packages like sight-seeing, shopping and theme
dinners to make spouses feel special
CRITICAL SUCCESS FACTORS FOR COX AND
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CRITICAL SUCCESS FACTORS FOR COX AND
KINGS
Some of the strategies followed to attract and retaincustomers are
Book early to get crazy discounts!
Photography competition post-vacation with attractiveprizes like travel kits, etc.
Induce customers to come up with innovative onlinecontests on contests based websites. The contest wouldinvolve creation and promotion of various contests
designed by the users. Winners to be accorded a 6month membership program.
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CRITICAL SUCCESS FACTORS-BRANDING
STRATEGY
Promote destination and segment based campaigns by writingarticles in tourism magazines, journals and newspapers like GoWorld, NatGeo Traveller, etc.
Publish advertisements in various tourism and photographymagazines (Travel and Living, Asian Photography, etc.)
Publish testimonials of happy customers on Cox & Kings website Upload medical, adventure tourism and eco-tourism related
videos on YouTube and other video sharing websites Flickr and other photo sharing websites to showcase various
destinations and testimonials from clients
Online magazines like TravelTorch.com, Outlooktraveller.com,etc.
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DISTRIBUTION STRATEGY OF COX AND KINGS
C&K operates in 19 countries through its Subsidiaries, Branch
offices and Representative offices.
In India, it has 255 points of presence covering 164 locations
through a mix of 14 branch sales offices, 56 franchised sales
shops and a mix of 185 General Sales Agents (GSAs)andPreferred Sales Agents (PSAs).
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INTERNATIONAL EXPERIENCE
Cox & Kings has a strong web of International anddomestic marketing arms for effective and successfulworldwide congress promotion.
Cox & Kings International Offices And
Representatives:Cox & Kings has international offices and representativesin UK, USA, Japan, Germany, Spain, South Africa,Russia, Italy, Sweden and Australia. Cox & Kingsworldwide business associate is Radius, with a network of
over 4,640 branches around the world. Worldwide Business Associates:
RADIUS, with a network of over 4,640 branches aroundthe world. A global service that has set benchmarkingstandards in the corporate travel community
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FUTURE EXPANSION PLANS
Travel company Cox and Kings (India) plans toraise Rs 2,000 crore of equity and debt to fundexpansion plans.
Aiming at raising Rs 1,000 crore equity and Rs1,000 crore debt expansion to fund its mergerand acquisition plans
The firm is looking mainly at developed English-
speaking countries to buy travel firms Looking for expansion in Europe, Australia and
U.S specifically
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COMPETITORS ANALYSIS
Two Competitors for Cox and Kings:
o Thomas Cook
o International Travel House Ltd.
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THOMAS COOK
Products Strength Weakness Opportunity Threats
TourpackagesFlightsbooking
ForexservicesTravelinsurance
BrandawarenessHigh numberof offices
Variety of tourpackagesNo hiddencosts
More focusoninternationaltravel than
domesticCostlyservicesRefund policyLowinvestment
Less priorityto costumersatisfaction
EMI schemesthroughbankingrelations
Increasingfranchises willincreaseclientele baseCan growthrough high
FinancialViability
Rise innumber ofcompetitorsExpensive
companiesRisk oftechnologicalobsolescenceDue to lowcustomer
satisfactionmay losecostumer trust
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INTERNATIONAL TRAVEL HOUSE
Products Strength Weakness Opportunity Threat
BusinesstravelCar rental
servicesHolidaypackagesDestinationmanagementservices
RoyalweddingsDestinationmanagementservices
NationwidenetworkState of the
art technologyNetwork ofhotels andaccommodation facilitiesFacilitates
distinguishedservices e.g.Royalweddings
Focused onthe high endconsumers
ExpensiveservicesLack ofpresence inprominentdomestic
locationLack ofadditionalservices
Expandcostumer baseAvailability of
financialequity
Intensesegmentcompetition
Substitutionfor the availedservicesLow industryexit barriers
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