case on tourism service

8/6/2019 Case on Tourism Service

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SARDAR PATEL UNIVERSITY

B.B.A. (General) (III Semester)

Subject: Industry Awareness and Exposure Paper III

CASE STUDY ON TOURISM SERVICE *

Introduction to Tourism:

Tourism has always been a major social phenomenon of any society. It is motivated by the natural urge of every human being for new experience, adventure, education,knowledge and entertainment. In order to understand each other's cultures and values as wellas to cater several other social, religious and business interests, it has resulted in developmentof many tourist and infrastructure facilities. This, along with the progress of propertransportation network globally, especially of airways and waterways, has encouraged peopleto venture out to the foreign lands. It has facilitated the trade and commerce between thedifferent regions of a country and between the different countries. As a result, over the years,it has acquired the status of a service industry.

Tourism, being one of the largest industries, plays a key role in achieving the socio-economicgoals of the development plans of a nation. It is an important service-oriented sector whichhas made rapid strides globally in terms of gross revenue and foreign exchange earnings. It isa composite of service providers, both public and private, which includes travel agents andtour operators; air, rail and sea transportation operators; guides; owners of hotels, guesthouses and inns, restaurants and shops; etc. They are involved in meeting the diverse interests

and requirements of domestic and international tourists. The tourism industry providesincentives to foster the quality of environment, generates more employment opportunities(particularly in remote and backward areas) as well as develops necessary infrastructurefacilities like roads, telecom and medical services, in the economy.

United Kingdom was the first European country to promote the tourism in a systematicmanner. In the era of Industrial Revolution, to promote leisure time to certain selected classof industrial population like the owners of the machinery of production, the economicoligarchy, the factory owners and the traders the English community gave the concept ofLeisure travel. To support this travel facility, Cox & Kings was the first official travelcompany to be formed in 1758.

What is Tour, Tourism & Tourist?

Theobald (1994) suggested that "etymologically, the word tour is derived from the Latin,'tornare' and the Greek, 'tornos', meaning 'a lathe or circle; the movement around a central

point or axis'. This meaning changed in modern English to represent 'one's turn'. The suffix ism is defined as 'an action or process; typical behavior or quality', while the suffix, istdenotes 'one that performs a given action'. When the word tour and the suffixes ism and istare combined, they suggest the action of movement around a circle. One can argue that acircle represents a starting point, which ultimately returns back to its beginning. Therefore,like a circle, a tour represents a journey in that it is a round-trip, i.e., the act of leaving andthen returning to the original starting point, and therefore, one who takes such a journey

can be called a tourist."

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The word tourism was first used by 1811 and touristby 1840.

In 1941, Hunziker and Krapf defined tourism as people who travel the sum of thephenomena and relationships arising from the travel and stay of non-residents, in so far asthey do not lead topermanent residence and are not connected with any earning activity.

In 1976, the Tourism Society of England defines Tourism as the temporary, short-termmovement of people to destination outside the places where they normally live and work andtheir activities during the stay at each destination. It includes movements for all purposes."

In 1981, the International Association of Scientific Experts in Tourism defined tourism interms of particular activities selected by choice and undertaken outside the home.

In 1936, the League of Nations defined foreign touristas "someone traveling abroad for atleast twenty-four hours.

The above mentioned discussion indicates that it is very difficult to define and/or measure

tourism with any precision. In 1993 the International Forum on Tourism Statistics wasestablished and resulted in the development of Tourism Satellite Accounts (TSA), which

provides comparable international accounts in addition to an improved analytical framework.The satellite accounts measure tourism-related activity by determining what percentage ofeach industry is accounted for by tourism. The TSA methodology is being used by number ofOECD countries, as well as by developing countries.In 1994, the United Nations classified three forms of tourism in its Recommendations onTourism Statistics:

1. Domestic tourism, involving residents of the given country traveling only within thiscountry.

2. Inbound tourism, involving non-residents traveling in the given country.3. Outbound tourism, involving residents traveling in another country.

T ourism in India and abroad

In India

In India, tourism industry holds special position as it not only have potential to grow at a high

rate, but also stimulate other economic sectors through its backward and forward linkages andcross-sectional synergies with sectors like agriculture, horticulture, poultry, handicrafts,transport, construction, etc. That is, it can provide impetus to other industries in the countryand generate enough wealth to help pay off the international debt. It is the third largest netearner of foreign exchange for the country. The travel and tourism sector contributes to thenational integration; preserves natural and cultural environments; as well as enriches socialand cultural lives of the people. It has the capacity to create substantial job opportunities,

particularly for unskilled and semi-skilled workers as well as to alleviate the poverty in thecountry. That's why, it has been regarded as the core sectors of the Indian economy.

Given India's unique endowments of biodiversity, forests, rivers, mountains, historical places,temples and pilgrims, caves, museums, monuments and culture, the industry holds immensestrength for obtaining higher growth rate. The challenges in the sector lie in successfully

preserving these in their original form, and making them accessible to domestic and

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international travellers. India offers various categories of tourism products, such as adventuretourism; medical tourism (ayurveda and other forms of Indian medications), eco-tourism;rural tourism; cruise tourism; meetings, incentives, conferences, and exhibitions (MICE)tourism; etc.

The Ministry of Tourism acts as the nodal agency for the development and promotion of

tourism in the country. It plays a crucial role in formulating national policies and programmesas well as coordinating and supplementing the efforts of the State/Union TerritoryGovernments and private sector in improving the quality of tourism infrastructure. Itcatalyses private investment, strengthens promotional and marketing efforts and helps in

providing trained manpower resources. As regards the domestic market, the Ministry aims topopularize the culture and natural beauty of different regions, pilgrim sites and various newtourism products. The Ministry has a public sector undertaking, namely the 'India TourismDevelopment Corporation (ITDC)' for carrying out its various functions.

Tourism Statistics in India

Inbound Tourism Statistics

Foreign Tourists In India (Number)

2001 2002 2003 2004 2005 2006 2007 2008

January 283750 228150 274215 337345 385977 459489 532088 584765

February 262306 227529 262692 331697 369844 439090 498806 560658

March 248965 225558 218473 293185 352094 391009 444186 509926

April 185338 155378 160941 223884 248416 309208 333945 369677

May 151098 132998 141508 185502 225394 255008 267758 290785

June 176716 143100 176324 223122 246970 278370 310104 344526

July 224432 186432 225359 272456 307870 337332 377474 -

August 196517 161477 204940 253301 273856 304387 360089 -

September 162326 151721 191339 226773 257184 297891 325893 -

October 181605 212191 260569 307447 347757 391399 440715 -

November 209685 243566 290583 385238 423837 442413 510987 -

December - - 319271 417527 479411 541571 575148 -

Total 2282738 2073025 2726214 3457477 3918610 4447167 4977193 2660337

(Source: Website of Indian Tour Operators Promotion Council)

International Tourists Arrivals to India

2001 2002 2003 2004 2005 2006

Arrivals from Region/ Country

USA 329147 348182 410803 526120 611165 696739UK 405472 387846 430917 555907 651803 734240

Canada 88600 93598 107671 135884 157643 176567

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Germany 80011 64891 76868 116679 120243 156808

France 102434 78194 97654 131824 152258 175345

Australia 52691 50743 58730 81608 96258 109867

Italy 41351 37136 46908 65561 67642 79978

Japan 80634 59709 77996 96851 103082 119292

Malaysia 57869 63748 70750 84390 96276 107286

Singapore 42824 44306 48368 60710 68666 82574

Nepal 41135 37136 42771 51534 77024 91552

Sri Lanka 112813 108008 109098 128711 136400 154813

Netherlands 42368 31669 40565 51211 52755 58611

China 13901 15422 21152 34100 44897 62330

South Korea 27150 29374 35584 47835 49895 705407

(Source: Website of Indian Tour Operators Promotion Council)

Domestic Tourism Statistics

Tourism Destination 2004 2005 2006

Kerala 5872182 5946423 6271724

Goa 2085729 1965343 2098654

Delhi 1866552 2061782 2237130

Rajasthan 16033896 18787298 23483287

Tamilnadu 42279838 43213228 58340008Andhra Pradesh 89440272 93529554 111715376

Gujarat 7748371 9457486 11936957

Himachal Pradesh 6345069 6936840 7671902

Jammu & Kashmir 6881473 7239481 7646274

Uttar Pradesh 88371247 95440947 105549478

Uttarakhand 11720570 14215570 16666525

Orrisa 4125536 4632976 5239896

Karnataka 27194178 30470316 36195907

West Bengal 12380389 13566911 15808371

Madhya Pradesh 8619486 7090952 11062640Maharastra 13392212 14329667 16880348

Facts to know

1.Tourists inflow from Australia

In the last three years the tourist arrivals from Australia to India have almost doubled to a

record figure of 1,00,000. However India aims to double tourist inflow from Australia to two

lakh in the next three years.

2.Tourists inflow from Britain

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Every year about 3000,000 tourists from Britain visit India for both business as well as

leisure.

3. Tourists to India spend more

Tourists to India spent $ 372 on their visa cards in the year of 2005. This is a 25% rise from

the year 2004 thereby, making India the fastest growing Asia -Pacific market for theInternational tourist spending. According to the World Travel and Tourism Council , the

Indian tourism demand will grow at an annual 8.8 % over the next ten years, fueled by higher

incomes and lower air fares.

4.Earnings on Tourism

In 2005 India earned US $ 6.9 billion from inbound foreign tourists, which is more than twice

the US $3.1 billion earned during the year 2002. According to the latest balance of payments

figures released by the Reserve Bank Of India, 2005 was the year of fastest growth in forex

inflows from foreign travel, during which inflows went up 36 %.

5.Leading Tourist destination

With nearly 140 three and two star hotels, Kerala has turned into a major hot spot for foreign

tourists. However Tamil Nadu hold the second position in attracting foreign tourists.

6.Mode of transport

Air continued to be the predominant mode of travel for the tourists coming to India. However

arrivals by sea were negligible.

7.Age- Group factor

An average foreign tourist is between age group of 20-40 years.

8.Best time for tourists arrivals

October to February is considered to be the peak season for travel by foreigners for business

as well as leisure purposes.

9.Employment generated by tourism in India

Tourism Industry provides employment to about 2 crores of people in India.

In World

The United Nations World Tourism Organization (UNWTO) estimated that between 1990and 2009, international tourist arrivals worldwide would increase at an average annual rateof 3.8 per cent. Between 1990 and 2008 international tourism receipts (excludinginternational transport) would increase at an average annual rate of 7.3 per cent (in nominalterms).

This growth was assisted by generally good global economic growth commencing in themid-1990s, but was negatively impacted by a number of major international shocks between2001 and 2003, and the global economic crisis in 2008 and 2009.

The UNWTO estimate that in 2009 international visitors worldwide fell to 880 million, adecline of 4.3 per cent on 2008. This result reflects the slowing of world travel in response tothe global economic crisis, which was exacerbated in some regions by concerns about theoutbreak of the influenza A(H1N1) virus.

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The UNWTO estimates that global arrivals growth returned in the December quarter 2009, up2 per cent, after 14 months of negative results.

The UNWTO forecasts growth in international tourist arrivals of between 3 and 4 per centin 2010.

Tourism Statistics of world

International tourist arrivals by region, 2008 and 2009

Region 2008(m)

2009(m)

Northern Europe 57.0 52.6

Western Europe 152.4 145.8

Central/Eastern Europe 99.7 91.6

Southern/Mediterranean Europe 178.0 169.6

Total Europe 487.1 459.7

North East Asia 101.0 97.6South East Asia 61.7 62.0

Oceania 11.1 10.9

South Asia 10.3 10.0

Total Asia and the Pacific 184.1 180.5

North America 97.8 91.9

Caribbean 20.2 19.7

Central America 8.3 7.8

South America 20.8 20.1

Total Americas 147.1 139.6

North Africa 17.2 17.7

Sub-Saharan Africa 28.6 30.4Total Africa 45.7 48.0

Middle East 55.6 52.5

Total World 920 880

(Source: United Nations World Tourism Organization,World Tourism Barometer, January 2010)

Top 10 Visited Countries during 2006 to 2009 (As per World Tourism Organisation)

Rank Country

International

tourist

arrivals

(2009)

International

tourist

arrivals

(2008)

International

tourist

arrivals

(2007)

International

tourist

arrivals

(2006)

1 France 74.2 million 79.2 million 80.9 million 77.9 million

2 United States 54.9 million 57.9 million 56.0 million 51.0 million

3 Spain 52.2 million 57.2 million 58.7 million 58.0 million

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4 China 50.9 million 53.0 million 54.7 million 49.9 million

5 Italy 43.2 million 42.7 million 43.7 million 41.1 million

6 United Kingdom 28.0 million 30.1 million 30.9 million 30.7 million

7 Turkey 25.5 million 25.0 million 22.2 million 18.9 million

8 Germany 24.2 million 24.9 million 24.4 million 23.6 million

9 Malaysia 23.6 million 22.1 million 21.0 million 17.5 million

10 Mexico 21.5 million 22.6 million 21.4 million 21.4 million

(Source: United Nations World Tourism Organisation)

Top 10 most visited cities by international visitors (As per WTO)

City Country International visitors (in millions) Selected year of visit

Paris France 14.8 2009

London United Kingdom 14.1 2009

Singapore Singapore 11.6 2010

Hong Kong China 10.4 2010

New York City United States 8.7 2009

Bangkok Thailand 8.45 2009

Antalya Turkey 9.25 2010

Kuala Lumpur Malaysia 9.11 2009

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Istanbul Turkey 7.51 2009

Dubai United Arab Emirates 6.81 2009

(Source: United Nations World Tourism Organisation)

Major Tour Service Providers at Global level

Region / Country Service Providers

For U.S.A. & Canada 1. Trafalgar Tour 2. Globus

3. Maupin tour

4. Collette Vacations

For Europe 1. Trafalgar Tours2. Insight Vacations3. Tuck World Discovery4. Go Ahead Vacations5. Thomas cook

6. Cox & Kings

For Latin America 1. Go South Adventures2. La tour

3. Travcoa

For Asia 1. Pacific Delight World Tours2. Gate 1 Travel3. General Tours

4. SOTC

For Africa 1. African Travel, Inc.'s2. Lion World ToursPacific

Delight World Tours

MAJOR 3 TOURISM SERVICE PROVIDERS WITH THEIR PROFILES

SOTC

(A) NAME OF SERVICE PROVIDER:

SOTC Tours & Travel, Mumbai

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(Part of Kuoni Travel (India) Ltd.)

(B) HISTORY OF SOTC & ITS PARENT COMPANY

Established in 1949 with just five employees at an office in Cawasji Hormusji Street,Mumbai, it has grown to become one of India's largest travel companies.

SOTC has been fulfilling the travel needs of Indians for over five decades now. It continuesto seek out new and exciting destinations to offer to outbound travellers. SOTCs outbound

business operations broadly encompass Packaged Group Tours for Indians and IndividualHolidays.

SOTC is a part of the Kuoni Travel India Pvt Ltd. and is the largest holiday brand in India. Itoperates in various travel segments, namely Groups (GIT), customized holidays (FIT), luxuryholidays, MICE and trade fairs. SOTC operates as a fully integrated tour operator, wholesalerand retailer, with a distribution network of 158 offices and a network of over 3,500 travelagents across India. SOTC has the distinction of being selected as a Consumer Super brand

for three consecutive years since 2006.

The Kuoni Travel Group, India, is the countrys largest travel and Tourism Company

and a 100% subsidiary Kuoni Travel Holding. Kuoni Travel Group, India was

formed when Kuoni Travel Holding, Switzerland acquired 100% equity in SOTC

on May 22nd, 1997. The Company was renamed Kuoni Travel (India) Ltd. SOTC

World Famous Tours became a valued brand.

Founded by Alfred Kuoni in 1906, the Kuoni Group is one of the worlds leading travelcorporations with an annual turnover of over CHF 4 billion. With its corporate headquarterslocated in Zurich, Switzerland, Kuoni has a worldwide workforce of over 7,502 employees.The companys core focus is leisure travel and destination management businesses.

The Kuoni Group has steadily and systematically developed its position in the world travelmarket over the years, and currently has branch operations in over 30 countries in Europe,Asia, Africa and North America.

Awards for Excellence

SOTC - Voted The Best Outbound Tour Operator 2004, 2005, 2006 and 2007

SOTC has been voted the Best Outbound Tour Operator 2004, 2005, 2006 and 2007 by the

Galileo Express Travel & Tourism Awards Committee.

The Galileo Express Travel & Tourism awards have been designed to give recognition to thetrade for outstanding achievements during the year. This award was based on various

parameters of judgment and took into consideration factors including revenue generated,operational efficiency, perceived service levels, and the ability to retain and increase marketshare.Other Major Awards

2005 - Business Superbrand 2004 - Galileo India Experess Award for 'Best Outbound Tour Operator'

2004 - Malaysia Tourism Award for 'Best Foreign Tour Operator' 2004 - Singapore Tourism Board Award for 'Best Travel Experience in India' 2004 - Star Cruises The Top Agents Award for 2004 2004 - Star Cruises Appreciation of Support for 2004

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2004 - South African Airways Travel & Tourism Award

(C) MAJOR PRODUCTS

Tourism service is the combination of tangible and intangible elements. The tourism product,which is mainly the destination, can only be experienced. The views of the location travel to

the destination, the accommodation and facility as well as the entertainment at the destinationall form the tourism product

SOTC offers a variety of tours which includes tours for families with kids, tours for seniorcitizens, theme vacations like beaches and also special packages for pure vegetarian and

jains. The list of major services offered by SOTC is given below:

1. Independent Global Vacations.

2. Independent India Vacations.

SOTC Independent India Vacations will help you unlock Indias ancient mysteries just theway you like it.

3. Escorted tours for Non Resident Indians (NRI)

Over the years, SOTC have mastered the art of providing quality holidays that offer the bestvalue for money. Escorted tour packages are meticulously planned keeping in mind the needsunique to an NRI traveler. Escorted tours cover destinations like USA, Europe, SpainPortugal & Morocco, Russia & Scandinavia, Far East Singapore, Malaysia, Thailand, HongKong, Egypt, China, Africa, Australia, New Zealand and Mauritius.

4. Luxury Vacations.

For those who believe that their holiday must speak their style, SOTCs Luxury Vacations isthe ultimate choice. Here you are assured of a holiday experience which is engulfed inluxury, attentive service, picturesque surroundings, finest hotels and sumptuous food.

5. Theme VacationsSOTC offers great theme vacations to exotic, adventurous and peaceful locations like fancy

beaches or snow, hill stations or luxury resorts, spas or Ayurveda.

6. Special Interest travel

Trade Fair

SOTC Trade Fair Tours specialize in organizing Business Travel arrangements toTrade Fairs and Exhibitions around the World.

Sport Abroad

Be it cricket, football or golf, be it team sports or individual sports, we, at SOTCSport Abroad, organize sports tours to any part of the globe.

7. MICE Tours (Meeting, Incentive, Conference & Event)

8. SOTC Box holidays

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SOTC Box Holidays offers a pre packaged holiday package to various domestic andinternational travel destinations. SOTC Box Holidays Packages is a innovative tour conceptat affordable prices. some of these include: One night's stay with breakfast free; Upgrade toSuperior room; Free stay for two children; Exclusive Candle light dinner in the Lawn /Helipad; Welcome goodies; Champagne wine bottle; Handmade Cookies; Fruit basket; FullDay Trip to Disneyland with return transfers on seat in coach basis; Vouchers for meal or

shopping; Overseas travel insurance etc.

9. SOTC language specific tours:BhramanMandal & GurjarVishwadarshan. For the language specific customers. These tours

are conducted in Marathi & Gujarat languages.

10. SOTC Do-It-Yourself Holidays:For those travelers who want to see the world by themselves.

(D) MARKET COVERAGE & TYPE OF CUSTOMERS

SOTC today operates in USA, Canada, UK, Kenya, Tanzania, Mauritius, Dubai, Kuwait,Oman, Dubai, Abu Dhabi, Bahrain, Saudi Arabia, Qatar, Hong Kong, Singapore, Pakistanand South Africa.

SOTC is a part of the Kuoni Travel India Pvt Ltd. and is the largest holiday brand in India. Itoperates in various travel segments, namely Groups (GIT), customized holidays (FIT), luxuryholidays, MICE and trade fairs. SOTC operates as a fully integrated tour operator, wholesalerand retailer, with a distribution network of 158 offices and a network of over 3,500 travel

agents across India. SOTC has the distinction of being selected as a Consumer Super brandfor three consecutive years since 2006.

As the parent company, Kuoni Travel Holding Ltd, is one of Europe's top five travel and tourgroup based in Zurich, Switzerland, SOTC had also privilege to expose its services on wider

platform and by that covering the market of not only within India but also outside India, inthe entire world.

SOTC is servicing all types of customers from kids to old age people, employees to businessmen, individuals to group, schools to business associations, families, marriedcouples, youngsters, housewives etc.

(E) Distribution Network

SOTC operates as a fully integrated tour operator, wholesaler and retailer, with a distributionnetwork of 158 offices and a network of over 3,500 travel agents across India. Apart fromthis company have its branches in almost all the major cities of the country as well as at the

popular destinations of the world. Company has its own website which provides in depthinformation regarding various travel packages and price of the packages.

(F) Marketing Policy

SOTC is currently enjoying the status of most preferred travel and tourism service provider inIndia by the customers. But because of the entry of new players in the market now the major

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objective of the company is to capture maximum number of customers located in the remoteareas of the country by offering them pocket affordable tour packages. More over company isalso planning to attract the NRIs outside India as well as foreign travelers to visit India byoffering them tailor-made packages wherein all sort of requirements of the customers will betaken care by the company.

(G) Pricing Structure

The pricing of the various travel packages and tourism related services offered by SOTC is100% customer affordable. It is tailor made pricing structure followed at SOTC to meet thevaried requirements of the customers of SOTC. The couple prices for tours packages startfrom Rs. 7000 for 2N/3D and goes till Rs. 48000 for 3N/4D inclusive of all facilities.

(H) Competition Strategies

SOTC is the most popular tour service provider in India. The main competitors of thecompany are RAJ TRAVELS, COX & KING, THOMAS COOK, KESARI etc. Thecompany adopts following measures to bet the competitors:

1. Tailor made tour packages.

2. Offering Box holiday.

3. SOTC provides its customers with a detailed brochure of the tour they have selected, alist of things to be done before going for a holiday e.g. cooking gas switch to be turnedoff etc and if the customer is going for foreign tour then a list of basic words like hello,water etc in the foreign country language which will make it easy for the customer, thisestablishes value for money, product image and status, which must be matched when the

product is delivered.

4. Online ticket booking.

5. Foreign currency provider and consultancy.

6. Wide distribution network.

7. Including innovative holiday packages.

(I) Financial Details:

SOTC, being a private firm does not disclose its financial details. The company mainly obtainfund from its parent firm, Kuoni Travel Holding Ltd. Of Switzerland, Europe. More overfirm manages its various financial requirement from the revenue generated through the salesof the services made by the firm.

THOMAS COOK

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(A)Name of Service Provider:

THOMAS COOK (India) Ltd. (TCIL)

(B) About Thomas Cook

Thomas Cook India Ltd. Is the largest Travel and Financial Services Company in the countryoffering a broad spectrum of travel-related services that include Foreign Exchange, CorporateTravel, Leisure Travel, and Insurance. Thomas Cook (India) Limited (TCIL) is a part ofThomas Cook Group plc UK (TCG). On March 7th 2008, TCG announced its decision toacquire TCIL from Dubai Investment Group. Thomas Cook Group plc is one of the largesttravel groups in the world with a market capitalization of approximately US$6 Billion.

Thomas Cook Group (TCG) was formed on 19 June 2007 by the merger of Thomas CookAG and My Travel Group plc. The new company is one of the worlds leading leisure travelgroups with sales of around 9 billion ( billion), 19 million customers, 30,000 employees, afleet of 97 aircraft, a network of over 3,000 owned or franchised travel stores and a number

of hotels and resort properties. It has operations in four regions: UK & Ireland; ContinentalEurope (Germany, Austria, Belgium, France, the Netherlands, Poland, Hungary, Slovenia andSlovakia); Northern Europe (Sweden, Norway, Denmark, and Finland) and North America(Canada and USA); and German airlines operating under the Condor brand.

Awards won by Thomas Cook India Ltd (TCIL)

1. Best Travel Agency Award 2004 given by TTG Asia2. The Golden Peacock Award for Corporate Governance,3. The National Tourism Award for 2001-2002 & 2002-20034. National Tourism Award - Best MICE Operator 2006-07

5. "The Best Outbound & Inbound Tour Operator of the Year" award at theHospitality India Awards 2006 hosted by Hospitality India.

6. Best Tour Operator by CNBC Awaaz in 20087. 'Best Forex Company in India' by CNBC Awaaz Travel Awards

(C) Major Products of TCIL

The Company launched its Indian operations in 1881 and is celebrating its 127 years ofworld-class service in India. Thomas Cook (India) is managing following product areas :

Leisure Travel Corporate Travel Management

MICE

Foreign Exchange

SWIFT Network

Travel Insurance

Credit Cards

Pre-Paid Cards

Life Insurance and E-Business

In travel business the company is offering various services like:

1. Group Escorted Tours (in India and abroad)2. Customized tour packages (to meet the requirements of the tourists)3. Adventure travel.

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4. Cruise travel5. Rail tours6. My India, my way (specially for those who are interested in exploring Indian spots)7. Miscellaneous tours (Religious, Pilgrimage, Romance, Medical, Historical and

Wildlife)

(D) Market Coverage

Thomas cook is the leading travel and travel related service provider of India since 1881. Thecompany has its presence in almost all corners of the country. Thomas Cook India Ltd. haslaunched `global travel services' in the Indian market. The travel services will offer a range oftravel, financial, emergency and other special services. India is the second country after theUK where the product has been launched.

Thomas Cook is also popularly covering the worlds tourism market. Being the part ofThomas Cook Group, United Kingdom, the company has a benefit to exploit the wideexperienced base available in the foreign market to capture the customers.

The company has a tie up with certain renowned brands like Cosmos, Globus, and CostaCruise of the world, which helps the firm to capture the market in a better way.

(E) Types of Customers

All categories of customers, from youth to old age, from service class to business class, fromindividuals to specific group, are targeted by the TCIL with the wide variety of products,world wide.

(F) Distribution Network

Thomas Cook (India) offers a broad spectrum of travel and related services such as packagetours, currency exchange and travel insurance as well as hotel and flight reservations.Thomas Cook has been present in India for over 126 years and operates in more than 75 citieswith offices over 160 at various locations in the country and has operations in Sri Lanka &Mauritius. It employs over 2,500 employees nation wide to manage its operations as well as ithas system of franchisee to reach to the customers of far end.

While internationally the Thomas Cook has a distribution network of 3000 plus franchiseetravel stores with more than 30000 employees. The company has very good website whichgives all the details of the services available and also offers on line booking facility. Thecompany is also looking forward to have tie up with shopping centers and malls in India tohave their retail counters for sale of products.

(G) Marketing Policy of TCIL

Following are certain policy measures taken by TCIL for effective marketing of its services:

Going to people instead of waiting for people to come and approach,through internet, press advertisement and TV commercials.

Providing all the services like product details, pricing details, ticket

booking, visa processing, foreign currency etc. under single roof as a partof One stop shop policy.

Firm has adopted expansion policy for covering the deeper segments of themarket by starting their branches in the cities like Bharuch, Vrindavan,

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Nawa Shahar, Karnal, Kapurthala and Bathinda in northern India; Nashik,Kolhapur and Bhopal in western India; Salem, Tirupati, Thrissur, Kannur,Hubli, Udupi and Trichy in southern India; and Gangtok in the North-East.

Targeting students going abroad for education as one of the source ofgetting new customer base.

Tied up with Bajaj Allianz, one of the leading private life insurance

service providers of India, for offering insurance related services throughretail outlets of TCIL across the country.

Company has a practice of rendering its social responsibility by way ofcreating public awareness towards saving water and other natural resourcein association with various social organisations. This in turn would helpthe firm to improve its brand image.

More or less these and various other policy measures practiced by the firm helps tostrengthen the overall image of the firm in the society and also increase the market for thefirm.

(H) Pricing Structure

The Thomas Cook Holiday comes with a 150-year-old guarantee of eternally sunlitmemories. They couldnt expect any less from the people who invented travel for leisure.They offer the worlds most enjoyable holidays, to exotic destinations in India and abroadwhere everything is taken care of from beginning to end. Hence the price policy they followis Above the market price. Following is the range of prices for the two popular category of

products they offer to their customers:

A. For Group Escorted Tours: Prices of the tour packages starts from Rs. 22,000 to Rs.

80,000 per person depending on the number of days of travel. The major destinationscovered are Asia, Europe, Africa, Middle East and America.B. For My India My way: Prices starts from Rs. 9,000 to Rs. 30,000 per person for the

various destinations within India depending on the number of days of travel.

(I) Competition Strategies:

Following are some of the strategies which TCIL has framed up to turn out to be differentthen the competitors in Indian market:

1. The company started Tourism road show styled holiday carnival for manor 30 popular

destinations in India for the first time. Here the firm will showcase the popular touristdestinations in India and abroad, for attracting tourist flow.

2. Company has a tie up with popular private life insurance service provider of India,Bajaj Allianz. All the offices of TCIL across the country will now also render theinsurance related solutions in association with Bajaj Allianz.

3. Company has launched a travel portal www.thomascook.in as a One Stop Shopsolution for all the travel related needs of the customers.

4. Sustainable tourism practices adopted by TCIL, whereby the firm would render itssocial responsibility by way of actively involved in generating awareness for

protection of wild life and various natural resource as well as by offering morevirtuous and alternative educational leisure activities to educate the people along with

travel.

(J) Financial Details:

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Please refer annexure no. 01

COX & KING

(A)Name of Service Provider:

COX & KING LIMITED

(B) About the Company

Cox & Kings Ltd. (CKL), is the longest established travel company in the world since 1758and in December 2009 successfully listed on the stock exchange in India. Its distinguishedhistory began when it was appointed as general agents to the regiment of Foot Guards inIndia under the command of Lord Ligonier and handled the Royal Cavalry, Artillery andInfantry, Royal Wagon Train, the Household Brigade, the Royal Navy and the Royal AirForce came under its wings.

Headquartered in India, it is a premium brand that caters to the overall travel needs of theIndian and International travellers.

The company owns Tempo Holidays Australia, East India Travel Company in NorthAmerica, ETN in the UK and Quoprro Global Services Pvt Ltd,(visa processing). InDecember 2009 it also acquired My Planet Australia Pty Ltd and Ben tours International PtyLtd in Australia.

CKL is one of the founding members of the World Travel and Tourism Council (WTTC),and are members of premier industry associations namely the Travel Agents Federation ofIndia (TAFI), the Travel Agents Association of India (TAAI), Indian Association of TourOperators (IATO), and the Pacific Asia Travel Association (PATA).

(C) Major Products of CKL

Cox & Kings is amongst the largest players with its range of specialist options. Innovativepackaging, pricing and marketing have been the hallmarks of its success over the years.Among its many products are Leisure Travel- Domestic (Bharat Deko), Inbound &International, Corporate Travel, MICE, Trade Fairs, Visa Processing and Foreign Exchange.The Outbound Tours is segregated into Duniya Dekho (escorted tours), FlexiHols(customised tours), Luxury Escapades (unique & luxurious travel) & NRI (catering to Indians

across the world).

Domestic Tourism

Cox & Kings is amongst the first travel organisations to brand domestic holidays - 'BharatDeko'. Under this brand they market exclusive products that range from religious pilgrimagetours, education tours, weekend breaks, activity holidays, spa holidays, budget holidays,summer and beach retreats, train vacations, coaching and touring holidays.

Inbound Tourism

Inbound Travel business promotes India as a tourist destination. The company catersprimarily to the high-end segment of the inbound market and conducts a range of group andindividual tours throughout India for its clients from across the world. We provide destinationmanagement services and cover all aspects of ground tour management such as hotel

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bookings, air/ rail ticketing, roundtrip, airport transfer, land arrangements, excursionplanning, meet and greet services, event planning, meetings and appointments, conferencemanagement, private air charter, etc.

Outbound Tourism

CKL design and market escorted tours to group travellers under one of its flagship brandDuniya Dekho. These are ready made packages where a group of travellers is escorted bya tour manager. The customer chooses a specific tour from the array of choices offered to suithis budget and preferences. These group tours cover some of the world's most enchanting

places such as Australia, New Zealand, Europe, U.S.A., Canada, Far-East, Middle East,South Africa and Mauritius. These are specially designed for the value travellers.Duniya Dekho recently launched a series of premium group holidays LuxuryEscapades with travel destinations like Europe, Latin America, Middle East, Far East andAfrica.

FlexiHols

These are targeted at the more discerning Free Individual Traveler (FIT), where every holidayis customized as per the convenience of the traveler. FIT can make its FlexiHol travel

plans by selecting its travel destination and holiday option (ranging from romantic holidays,exotic cruises, family vacations, etc.), identifying travel interest (i.e. explorer, family,romance or explorer) and sharing his preference of sightseeing, airline and hotels. Thedestinations range from Europe, Australia and New Zealand, USA and Canada, Far East and

South East Asia.

Meetings, Incentives, Conferences and Exhibitions (MICE)

Leisure travel is increasingly being used as an incentive tool by many organizations toconvey appreciation for recognizing achievers. It has dual benefits, one by providing aholiday that enables an executive to unwind and recharge and the other serving as a rewardfor excellence that inspires the team.We cater to all aspects of conference organizing, business meetings, event management,seminars, exhibitions, product launches and incentives. Every event is designed to meetspecific requirements right from the pre-event preparations, during the event itself andthrough to post-event settlements.

Foreign Exchange and Visa Processing services and consultancy.

Business Travel services to provide customized solutions to the corporate clients for theirtravel and corporate meetings related requirements.

Trade Fair services for those corporate clients who are frequently traveling across the globeto participate in various fairs and exhibitions. Where all sort of requirements of the client istaken care by the company.

(D) Type of Customers

Customers of CKL include all class of people from the society. The customer categoryincludes business class people, corporate houses, politicians, high income earners,

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government employees, entrepreneurs, etc. There are some specific services which coversspecific class of customers like education tours (Academicians & educational institutes),

pilgrimage (Old age people), adventure tour (Youth) and budgeted holiday tours (Lower classpeople).

(E) Market Coverage and Distribution network

The company has 15 branch offices in India located in various cities of India. The companyhas appointed over 100 franchisees across 20 states covering 70 cities. The companysextensive network of 185 GSAs (General Sales Agents) and PSAs (Preferred Sales Agents)covering all major towns and cities of India enhances its reach.Cox & Kings has subsidiaries in UK, Japan, Australia, New Zealand, UAE, USA, Singapore,Hong Kong, Greece & Germany; branch offices in New York, Moscow, Maldives & Tahiti;& representative offices in Spain, Germany, Italy, France, South America, Sweden and SouthAfrica.Cox & Kings is also a partner ofRadius, which is a consortium of leading travel agentsround the world. On the international map Cox & Kings has its presence through its own

offices as well as its Radius partners in more than 80 prominent countries worldwide.CKL has its own website, through which it provides services like product inquiry, pricingdetails, travel package details and online booking. Besides this the site also helps thecustomers to find the solutions to the various travel related issues.

(F) Pricing Structure:

Pricing in tourism is a complex process. Pricing includes the prices of other services like Airtravel, Bus, Railways, Hotels, etc. All are included in tourism package. Pricing also dependson the Geographic location of the destination.

Pricing also depends on Seasonality. Seasonality is the most important factor in pricing. Tomatch demand and supply tourist managers try to get either discount

COX AND KINGS does not believe that the customer should pay a premium for excellentservice and outstanding holidays. It is their policy to keep the prices as low as possible that isthey follow Low Price Policy.

Following is the list of prices of various tour packages offered by CKL under its twopremium services i.e. Duniya Dekho & Bharat Dekho

For Duniya Dekho

A. Europe packages: Rs. 1,05,000 to Rs. 1,90,000 for various destinations

B. USA Packages: Rs. 2,00,000 to Rs. 2,71,500

C. Far East Packages (Malaysia, Singapore, Hong Kong & Thailand): Rs.31,000 to Rs. 1,35,000

D. Australia and Newzeland Packages: Rs. 1,47,000 to Rs. 3,00,000

The prices are for couple and it includes discounts. The prices vary according to thedestinations and number of days selected by the customers.

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For Bharat Dekho

A. North India: Rs. 12,000 to Rs. 30,000

B. South India: Rs. 14,000 to Rs. 27,000

C. West India: Rs. 22,809 to Rs. 30,994

D. East India: Rs. 13,813 to Rs. 40,625

The prices are per person basis and it includes discounts. The prices vary according to thedestinations and number of days selected by the customers.

(G) Marketing Policy:

The firm believes to reach to every individual in India. There are vast opportunities available

in the tourism industry which can be very strategically encashed by the players of theindustry to survive. CKL is currently facing competition from the local tourist service

providers as well as multinational players in India. Following are the major points of themarketing policy of CKL:

1. To capture the deeper segments of the market by widening the distribution network.

2. To offer qualitative services at most affordable prices to the customers.

3. To have more tie ups with star rated hotels in India and abroad.

4. To create brand awareness among customers.

5. Convert non user category into potential users.

(H) Competition Strategies:

Currently CKL is facing competition from international tourist brands like SOTC andThomas cook in India as well as certain domestic brands like Kesari tours, Raj tours etc. Inorder to be the different from these competitors, CKL has taken following measures:

1. Achieving a well defined and unique brand personality through selection of correctpositioning strategies and consistent and appropriate brand promotion.

2. Promoting various tourism segments like medical tourism, adventure tourism,ecotourism, etc by designing segment specific packages in addition to country andregion specific packages

3. To concentrate on capacity building by improving the quality of services offered,infrastructure, manpower by benchmarking with competitors

4. Use of Information Technology (e-Tourism) to complement branding andpromotional initiatives.

5. Publish testimonials of happy customers on Cox & Kings website

6. Promote destination and segment based campaigns by writing articles in tourismmagazines, journals and newspapers

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7. Promotion of Cox & Kings on websites of various airlines, hotels, transport servicesproviders by buying banner space on the websites of these allied service providers

8. Celebrity promotion for CKL brand.

(I) Financial Details:

CKL register itself as a public limited company with Bombay Stock Exchange in 2009.Before that company was working as private firm. For financial details of CKL pleaserefer annexure no. 2

Future of Tourism in India:

The 'Indian Tourism Industry Forecast report provides an objective analysis of the futureprospects of the Indian tourism industry. This report focuses on different parameters of

tourism industry including: inbound tourism, outbound tourism, expenditure by inboundtourists, and medical tourism in India. Following are some of the upcoming trends identifiedin the report:

1. It is expected that the number of tourists visiting India for the purpose of medicaltreatment will reach one Million by 2012, representing a Compound Annual GrowthRate (CAGR) of 28.09% from 2007.

2. International tourist arrival in India is expected to grow with a CAGR of 7.9% for theperiod spanning 2010-2015.

3. Domestic tourist visits is expected to increase with a CAGR of 12.29% for the periodspanning 2008-2015.

4. Indian tourism Foreign Exchange Earnings is expected to grow with a CAGR of 7.9%for the period spanning 2010-2015.

5. In the Indian union budget for 2010, the Indian government has given more than INR1,000 Crore to Ministry of Tourism, India. This is definitely going to boost thetourism market in the years to come.

6. Budget for Incredible India campaign increased by INR 62.3 Crore for 2010-11 fromprevious year 2009-10.

7. India medical tourism market is expected to be more than US$ 2 Billion by 2013.

8. With the rise in disposable incomes, the interest and willingness to spend in overseastravel will increase in the days to come.

9. The growth in India's tourism market is expected to serve as a boon, driving thegrowth of several associated industries, including hotel industry, medical tourismindustry and aviation industry.

10. The sectors like Adventure tourism, History Tourism and Spiritual Tourism canbecome a source of attracting foreign travelers to India in the days to come.

11. By 2020, Tourism in India could contribute Rs 8, 50,000 cores to the GDP. (As perthe observation made by World Travel and Tourism Council).

This proves that tourism market in India is having a bright future.

Questions for Discussion:

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case on tourism service

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