SUMMER TRAINING PROJECT REPORT

THOMAS COOK (I) LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OFBACHELORS OF BUSINESS ADMINISTRATION (BBA)

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY, HISAR

“AN ANALYSIS OF AIRLINE TICKET

RESERVATION SYSTEM”

Training Supervisor : Submitted By:Name : Mr Navin Jain Sahil JainDesignation :Director Enrollment No. 06511242209

SESSION 2006 – 2009

The Guru Jambheshwar University of Science & Technology

HISAR – 125001

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PREFACE

This report is an overview of the analysis of Domestic Airline Strategies in Ticket

Distribution. The project gives specific emphasis on the Indian domestic airlines,

explaining the factor that pulls the consumer towards choosing the services of airlines.

It is survey done explaining the likes of the passengers while selecting an airline.

As India's booming economy, and the deregulation of the aviation industry, has brought

about a huge increase in the number of domestic airlines in India in recent years.

Passengers can now choose from one government owned full service airline, three

privately owned full service airlines, and five privately owned low cost carriers.

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ACKNOWLEGEMENT

My sincere gratitude to Mr. Navin Jain for providing me the opportunity to have my

Summer Training in their prestigious organization and guiding me with his immense

knowledge.

I would also like to thank the other members of the distribution and ticketing department

who helped me during the course of my project.

I would also like to express my gratitude for the contribution of a number of people

without their co-operation & support this report wouldn’t have taken the current form. I

deeply appreciate their valuable contributions.

SAHIL JAINEnrolment No.: 06511242209

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TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1. INTRODUCTION

1.1 Overview of the industry

1.2 Profile of the company

1.3 Problems of the company

1.4 Competition information

1.5 S.W.O.T. Analysis

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2. RESEARCH METHODOLOGY

2.1 Significance

2.2 Managerial usefulness of the study

2.3 Objective of the Study

2.4 Scope of the Study

2.5 Research Methodology

2.6 Limitations of the study

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3. CONCEPTUAL DISCUSSION 40

4. DATA ANALYSIS 60

5. FINDINGS AND RECOMMENDATIONS 70

ANNEXURES

BIBLIOGRAPHY

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CHAPTER-1

INTRODUCTION

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INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

Travel and Tourism one of the world's largest foreign exchange earner among industries,

provides employment directly to millions of people worldwide and indirectly through

many associated service industries. A very wide industry, it includes Government tourism

departments, Immigration and customs services, travel agencies, airlines, tour operators,

hotels etc and many associated service industries such as airline catering or laundry

services, Guides, Interpreters, Tourism promotion and sales etc. Travel and Tourism

enterprises include major internationals with a workforce of thousands, to the small

private travel agent with a handful of employees.

Work in the travel and tourism industry is essentially concerned with providing services

for people who are away from home, on business or holiday. Travel can be leisure travel

involving package tours, pilgrim travel, adventure travel etc or purely business. Work at

every functional level in the industry involves dealing directly with people. Travel agents

assess the needs of tourists and businessmen and help them make the best possible travel

arrangements from the many travel options available. Also, many major cruise lines,

resorts, and specialty travel groups use travel agents to promote travel packages to the

millions of people who travel every year. 

Travel company personnel must be up-to-date on current rules and regulations and

documentation required, in areas like cargo, ticketing and passports, visas etc. so as to

correctly advise their clients, and to take care of the paperwork when necessary. Besides

this, all tourism staff in marketing, counter sales, or guide services, should be

knowledgeable about the places their clients visit, in terms of general background, how

to get there connections by air, rail and road and the facilities available.

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In India, Travel and tourism, as an industry, has been somewhat slower to take off   than

in many other places. However, with increasing worldwide interest in travel, and with the

Government's encouragement of its activities, it is undergoing massive expansion and

improvement. This forecasts a bright future for all those who choose to make a career of

travel and tourism. Young people with drive and a capacity for hard work can rise to top

positions very quickly in travel and tourism or even head their own agencies. A job in the

industry gives good returns as well as perks including opportunity to see many locales at

low prices.

OVERVIEW OF DOMESTIC AIRLINES IN INDIA

India's booming economy, and the deregulation of the aviation industry, has brought

about a huge increase in the number of domestic airlines in India in recent years.

Passengers can now choose from one government owned full service airline, three

privately owned full service airlines, and five privately owned low cost carriers.

With new airlines starting domestic flights in India, joining the skies, and increasing

flight routes over the sub-continent, coupled with the trend of travellers opting to fly

under tight schedules, it seems conducive to have a thread containing everything you

need or want to know about domestic flights in India.

To help you make the right decision when flying, here's an overview of what you can

expect from each of India's domestic airlines.

Airlines offering domestic flights in India

Indian Airlines

Indian Airlines is India's government owned, full service domestic airline, based in

Mumbai. The airline was merged with Air India, the government owned international

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airline, in 2007 but still retains its name. Its market share has dropped significantly, to

around 14%, in recent years.

As is to be expected with a state-run airline, Indian Airlines has its share of

inefficiencies. Flights are often delayed, flight attendants and in-flight service leave a

lot to be desired, and the airline has been involved in as many as 12 fatal accidents in its

history. On the positive side, it has well planned routes and flight schedules, flies to

most destinations in India, and is surprisingly reliable when it comes to baggage

handling.

E-ticketing is available for all domestic India flight routes except those to/from Calicut,

Lucknow and Goa Offers day fares and night fares (the latter being cheaper).

Air India offers youth discount of up to 25% off for those under 30 years of age, although

you may have to call their offices if you want youth fares. They e-mail you a payment

slip which needs to be filled in and faxed back plus with your passport id to verify your

age.

Check-in baggage rules for domestic flights in India (per person): First Class - 40 kgs,

Executive Class - 30 kgs, Economy Class 20 kgs.

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Deccan

Deccan, formerly known as Air Deccan, is India’s first low cost airline carrier. It was

founded in  August 2003, " with the vision to empower every Indian to fly by providing

the lowest airfares and connectivity to unconnected towns and cities". Deccan is based in

Bangalore, with another hub in Chennai. 

Deccan does not differentiate in fares between NRI, tourists, and locals for Indian

domestic flights. Check-in baggage rules for domestic India flights (per person): 15 kg

(Rs 70/kg for excess check-in luggage)

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JetLite (formerly Air Sahara)

JetLite, formerly known as Air Sahara, is one of the older privately-owned airlines in

India. It was founded in September, 1991, is has bases in Indira Gandhi International

Airport in New Delhi, Begumpet Airport in Hyderabad, Chatrapati Shivaji International

Airport in Mumbai, Chennai International Airport in Chennai, and Netaji Subhash

Chandra Bose International Airport in Kolkata.

JetLite covers domestic flights all over India, as well as travel between Delhi and

Chicago through a code share with American Airlines. Check-in baggage for domestic

flights in India (per person): 20 kg.

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GoAir

GoAir is another low-cost carrier, and is a relative new-comer for Indian domestic

flights, having been established in June 2004. It is based in Mumbai.

GoAir does not differentiate in fares between NRI, tourists, and residents, and flies

between Ahmedabad, Mumbai, Coimbatore ad Goa. GoAir offers 10,000 Free Tickets

Per Month. Check-in baggage rules for domestic India flights: 15 kg (Rs 70/kg for

excess check-in luggage)

Indigo Air

Indigo Air began its flight operations for domestic Indian flights in August 2006, and

currently links Agartala, Ahmedabad, Bangalore, Bhubaneswar, Chennai, Goa,

Guwahati, Hyderabad, Imphal, Jaipur, Kochi, Kolkata, Mumbai, Nagpur, New Delhi,

Pune, Udaipur, and Vadodara. This low cost Indian flight carrier’s main hub is in Delhi.

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Indigo Air does not differentiate between NRI, tourist, and local fares for domestic

Indian flight tickets.

Jagson Airline

Jagson Airline, established in November 1991, is India’s first private airline. It is based

primarily in Delhi. Jagson Airlines currently operates Delhi-Kullu and Delhi-Shimla

routes, as well as Shirdi-Mumbai and Shirdi-Pune flights. Jagson airlines has offices in

Mumbai, Shirdi, Manali, Kullu, Shimla, with good connects for the Delhi-Rajasthan

sector

Jagson airlines does offer internet booking facilities for domestic Indian flight tickets

through their online booking site.

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Jet Airways

Jet Airways is based in Mumbai, and offers over 370 daily flights across 44 domestic

destinations. Jet Airways also operates numerous international flights to destinations like

the United Kingdom, United States, Canada, Thailand, and Nepal. Jet Airways became

the first Indian carrier to offer internet check-in facilities for its passengers.

Jet Airways offers youth discount (25%) for those under 29 years of age, and Senior

Citizen discounts for those 65 years and older. To get the discount rates for domestic

flights in India, the airline requires you to fax over credit card as well as pass port ID

details.

Check-in baggage rules for domestic India flights (per person): Economy - 25 kg,

Premiere - 35 kg.

Kingfisher Air

Kingfisher Airlines Limited is based in Bangalore, and was established in May 2005. It

operates over 200 domestic Indian flights a day across 37 destinations in India. Its

primary hub is in Bangalore International Airport.

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Although Kingfisher only operates flights in India, the airline has plans to expand into

the international market by adding the Unted States as a possible destination. Check-in

baggage rules for domestic India flights: Kingfisher Class - 20 kg, Kingfigher First - 35

kg.

Paramount Airlines

Paramount Airlines’ primary focus is on the business traveler, and flies between Tamil

Nadu, Kerala, Andhra Pradesh, and Karnataka. Some of its Indian domestic flight

destinations include Bangalore, Chennai, Kochi (Cochin), Hyderabad and Madurai.

It is based in Madurai India, with its primary hub located in Chennai International

Airport. The airline started operating in October 2005.

There is no differentiation in fares for domestic flights in India between NRI, tourists,

and residents for Paramount Airlines. The airline also offers  a booking facility through

its Online Paramount Booking site.

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SpiceJet

SpiceJet was voted the best low-cost carrier in Central Asia by SkyTrax in 2007. It is

based in New Delhi, with its main hub in Mumbai and an additional hub in Ahmedabad.

SpiceJet also offers service to Bangalore, Chennai, Goa, Hyderabad, Kolkata, and

Varanasi.

SpiceJet offers online booking services, and has no differentiation in fares between NRI,

tourists, and locals. Check-in baggage rules for domestic flights in India: 20kg.

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CURRENT UPDATES OF DOMESTIC AIRLINES IN INDIA

Travel agents threaten to stop selling airline tickets

Major travel agents have threatened to stop selling domestic and international air tickets

until airlines agreed to restore commissions that they had said they would scrap starting

October 1, citing higher costs and slower growth.

The decision was taken at a meeting in Mumbai by the country's three top travel

associations — the Travel Agents Association of India, Travel Association Federation of

India and Indian Association of Tour Operators — representing over 4,500 IATA-

accredited international and domestic agents and more than 85 per cent of the total air

ticketing business.

The associations said they would stop selling tickets if a meeting between the agents and

leading airlines scheduled for July 24 in Delhi did not come out with a solution.

The move could impact air travelers, who may face problems booking or canceling

tickets only through company-owned ticketing counters or through the internet, which is

not a popular option for international travel.

Airlines have been giving agents 5 per cent of their base fare on the tickets as

commission, a recent reduction from the earlier 9 per cent. Last month, domestic airlines

Jet Airways, Kingfisher and Air India unilaterally sent letters to travel agents saying no

commissions would be given from October 1. Foreign carriers like Lufthansa, Singapore

Airlines and British Airways, among others, did the same. Airlines say they will save

over Rs 1,000 crore from the move.

"This zero-commission is the question of our very existence," said Sunil Bijlani, a travel

agent from Mumbai.

Agents question the premise of doing away with the commission and cite examples of

Australia and Japan, where the commission is still 9 per cent. "Airlines like British

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Airways and Singapore Airlines are profitable. Why do they not want to pay us?"

questions Hari Devnani, a travel agent.

Airlines in Pakistan recently introduced zero-commission for the agents but reversed the

decision within a week.

MARKET SHARE OF AIRLINES IN INDIA

The total fleet size of commercial airlines in India is 439. In 1994 the Air Corporation

Act of 1953 was repealed with a view to remove monopoly of air corporations on

scheduled services, enable private airlines to operate scheduled service, convert Indian

Airlines and Air India to limited company and enable private participation in the national

carriers. However, beginning 1990 private airline companies were allowed to operate air

taxi services, resulting in the establishment of Jet Airways and Air Sahara. These changes

in the Indian aviation policies resulted in the increase of the share of private airline

operators in domestic passenger carriage to 68.5% in 2005 from 0.4 of 1991.

Market share

Current market share of Indian carriers in the domestic aviation market is shown below:

Jet Airways and Jet Lite 30.4%

Kingfisher Airlines and Air Deccan 29.0%

Air India and Indian 19.8%

IndiGo 8.4%

SpiceJet 5.3%

Others 5.2%

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Operational airlines

AIRLINE   ICAO   IATA   CALLSIGN  COMMENCEDOPERATIONS  

Air India AIC AI AIR INDIA October 1932

Air-India Express AXB IX EXPRESS INDIA April 2005

Air India Regional September 2007

Blue Dart Aviation BDA BZ BLUE DART May 1994

Club One Air August 2005

Deccan DKN DN DECCAN August 2003

Deccan Aviation DKN DN DECCAN December 1997

GoAir GOW G8 GOAIR June 2004

IndiGo Airlines IGO 6E IFLY August 2006

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Jagson Airlines November 1991

Jet Airways JAI 9W JET AIRWAYS May 1993

Jet Lite RSH S2 JETLITE April 2007

Kingfisher Airlines KFR IT KINGFISHER May 2005

MDLR Airlines March 2007

Paramount Airways PMW I7 PARAWAY October 2005

SpiceJet SEJ SG SPICEJET May 2005

Defunct airlines

AIRLINE   ICAO   IATA   CALLSIGN  COMMENCEDOPERATIONS  

CEASEDOPERATIONS  

Archana Airways ACY* - ARCHANA* 1991 1999

Alliance Air LLR CD ALLIED 1996 September 2007

Crescent Air Cargo

2000 2006

Damania Airways

East-West Airlines 1992

Gujarat Airways

Himalayan Aviation

1948 1953

Indus Airways 2006 2007

Kalinga Airlines 1946 1953/1965

ModiLuft MOD* HT* MODILUFT* 1994 1996

NEPC Airlines

Vayudoot

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Fewer people fly in June; airports see dip in traffic

New Delhi, July 11 The large number of aircraft seen grounded at some airports in the

country is but corroborated by the figures of Directorate General of Civil Aviation

(DGCA) for June.

After recording buoyant growth, the domestic airline industry has reported a decline in

passengers carried during June as compared to the same period last year.

Slowdown

Air India has suffered the maximum loss carrying 1.44 lakh passengers less than in the

same period last year. It collectively carried 35.06 lakh passengers during the month,

almost 1.3 lakh passengers fewer than previously.

The slowdown has been recorded despite Kingfisher, JetLite, SpiceJet, Paramount

Airways and IndiGo increasing passenger numbers in June this year compared to the

previous year.

Last month, low cost IndiGo reported the largest jump in passenger carriage at 4.22 lakh

(2.55 lakh), while SpiceJet carried 3.66 lakh ( 3.03 lakh).

Among others, Kingfisher carried 5.02 lakh passengers in June this year up from 4.70

lakh passengers previously, JetLite flew 2.85 lakh (2.43 lakh), while Paramount

transported 46,000 passengers (44,000).

In June, Jet Airways flew the maximum number of passengers at 7.44 lakh (8.01 lakh).

Frequency Axed

Anticipating a slowdown, the domestic industry has already cut back on over 120 daily

flights and warn that the number could reach 300 soon.

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Jet Airways and its subsidiary, JetLite, announced a temporary reduction in schedules

which will see a 10 per cent reduction in flight frequencies of combined fleet.

The Chief Commercial Officer of the new Hyderabad airport, Mr A. Vishwanath, said the

number of daily landings now stood at 126, down from 135 about 10 days ago, while the

new Bangalore airport has reported a drop of three per cent in air traffic movement which

could rise to 10 per cent.

“There has been a decline of about 19 daily flights into Delhi and 16 daily flights into

Mumbai. Air Deccan has cancelled or suspended 35 daily flights, JetLite 26 and SpiceJet

21,” officials said.

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1.2 PROFILE OF THE ORGANISATION

Company Profile

Thomas Cook (India) Ltd. is the largest integrated Travel and Travel related Financial Services

Company in the country offering a broad spectrum of services that include Foreign Exchange,

Corporate Travel, Leisure Travel, and Insurance. The Company launched its Indian operations

in 1881 and is celebrating its 127 years of world-class service in India. Thomas Cook (India)

operates in the following areas of business, namely: Leisure Travel, Corporate Travel

Management, MICE, Foreign Exchange, SWIFT Network, Travel Insurance, Credit Cards,

Pre-Paid Cards, Life Insurance and E-Business.

Post March 31st 2008, Thomas Cook (India) Limited (TCIL) is a part of Thomas Cook Group plc

UK (TCG). On March 7th 2008, TCG announced its decision to acquire TCIL from Dubai

Investment Group. Thomas Cook Group plc is one of the largest travel groups in the world with

a market capitalization of approximately US$6 Billion.

In June 2006, Thomas Cook (India) acquired LKP Forex Limited and Travel Corporation (India)

Pvt. Ltd. (TCI).

TCIL presently operates in over 61 cities across almost 166 locations in the country. The

company has overseas operations in Sri Lanka which is a branch of TCIL and Mauritius which

is a subsidiary of Thomas Cook (India). The Company employs over 2,500 resources and is

listed on both the Bombay Stock Exchange as well as the National Stock Exchange.

Thomas Cook (India), over the years has received several prestigious awards such as the

Golden Peacock Award for excellence in Corporate Governance and the Pacific Asia Travel

Association (PATA) Golden Award for Best Travel. Recently, the Company won the Best Tour

Operator at the CNBC Awaaz Travel Awards 2008 and was also accredited the P1 rating which

is the highest financial rating given by Crisil.

History of Thomas Cook

In 1841, young Thomas Cook arranged an 11-mile train journey for a motley group of

passengers from Leicester to Loughborough. And it marked the beginning of a chapter in

history. He went on to introduce a railway tour of Europe. But it wasn't until the early 1860s that

he began the travel firm, Thomas Cook & Son, which included tours of the USA. The Company

also started operations for military transport and postal services for England and Egypt during

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the 1880s. The world got around and by the early 1900s, the who's who of the era - kings,

politicians, bishops and professors - patronised Thomas Cook's travel itinerary.

As the years passed by, the Company introduced the world to a whole new concept of leisure

and business travel. Driving innovation in the business, it connected continents and presented

the people an economic and state mode of travel across them.

In 1881, Thomas Cook started its India operations, with its first office being set up in Kolkata. As

it expanded its horizons across the subcontinent, the Company came to be known as Thomas

Cook Overseas Ltd. And on 21st October 1978, it was christened Thomas Cook (India) Ltd, only

to make its first public issue in February 1983. In the year 2000, the Group commenced its

operations in Mauritius and also acquired the Sri Lanka business from Thomas Cook Overseas

Ltd, UK.

Awards

Thomas Cook (India), over the years has received several prestigious awards such as the

Golden Peacock Award for excellence in Corporate Governance and the Pacific Asia

Travel Association (PATA) Golden Award for Best Travel. Recently, the Company also

won the Best MICE Operator Award and was also accredited the P1 rating which is the

highest financial rating given by Crisil.

Apart from this Thomas Cook has won the following awards:

Best Travel Agency Award 2004 given by TTG Asia - Part of Pacific Asia

Travel Association (PATA) for the 5th year in succession.

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The Golden Peacock Award for Corporate Governance,

for the second time in a row. The Criteria for this award are

transparency, excellence in conducting business, various

levels of management, social and environmental

responsibility, ethical business practice and Consistent

creation of value for all the stakeholders.

The National Tourism Award for 2001-2002 & 2002-

2003, winning the second rank in category 1 for the company that achieved the

highest foreign exchange earnings from Ministry of Tourism.

National Tourism Award - Best MICE Operator 2006-07

National Tourism Award - 3rd prize Inbound Operator 2006-07

The Association of Business Communications of India (ABCI) where

the company won the first prize for its website - www.thomascook.co.in

Awarded "The Best Outbound & Inbound Tour Operator of the Year" award

at the Hospitality India Awards 2006 hosted by Hospitality India.

Recipient of the prestigious Government of India Ministry of Tourism award for

"Excellence in Conference Tourism"

Best Travel Agency - India for the year 2008 by TTG Asia - Part of Pacific

Asia Travel Association (PATA)

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Best Tour Operator by CNBC Awaaz in 2008

Best Outbound Tour Operator in the 4th Hospitality India & Explore the world

Annual International Awards - 2008

SERVICES

Holidays - Inbound

Inbound Tourist refers to tourists/ travelers coming to India.

Inbound tour operators promote India as a tourist destination. We organize tours for foreign

tourist visiting India. We organize Individual tours, group tours and Conferences. Various

services offered in inbound business are accommodation, ticketing, roundtrip, excursion, land

arrangements, airport transfer etc. These services are procured from providers of these

services like hotels, airlines, transporters, guides etc. within India. Customers are typically

individuals and are sourced by overseas principals, tour operators or travel agents. TCI, one of

the subsidiaries is among the leaders in inbound tourism and works closely with tour operators

worldwide.

TCI has a widely distributed network of travel agents and tour operators worldwide. It has

around 20 offices in India and a total of 11 offices in USA, Canada, UK, France, Germany,

Spain, China, Korea, Japan and Australia.

We also act as a ground handling agent domestically for Charter flights coming from

international destinations. We also offer customized individual holidays, group escorted

holidays, MICE (Meeting, Incentive, Conference and Exhibition) arrangements and emergency

medical assistance.

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Inbound travelers handled by our Company are primarily from Europe and USA. Our company

enters into business arrangements with the foreign tour operators for servicing their customers

when they arrive in India.

International Holidays

Outbound tourist refers to Indian Nationals traveling out of India.

Our Company offers outbound tour packages across approximately 50 Countries. Outbound

packages include various services like air tickets, visa, travel insurance, airport transfer, hotel

accommodation, sight seeing, etc.

International Holidays is further classified into following categories:

1. Group Escorted Holidays: These are ready made packages where a group of

travelers is escorted by a Tour Manger.

2. Customised Individual Holidays: Tailor made packages based on individual

requirements

3. MICE: Dealers/Employees are sent on tour by Corporates.

4. Sales agency amongst others for Star Cruise, Rail Europe, Globus, Cosmos Tours,

Greyhound, Amtrak, Rocky Mountaineer Vacations, Japan Rail and Costa Cruises

Domestic Holidays

Domestic Travel refers to Indian Nationals (Tourists, Business Travelers, Students, Leisure

travelers) traveling within India. Various services offered are accommodation, ticketing,

roundtrip, excursions, land arrangements, airport transfer, etc. These services are procured

from service providers like hotels, airlines, transporters, guides, etc.

TCI, one of our subsidiaries specializes in special interest and incentive tours, conferences and

air charter / cruise ship ground operations. It operates its own Taj Mahal Tour and Delhi City

Tour and is a General Sales Agent ("GSA") for the Palace on Wheels and the Deccan Odyssey.

We are active members of various industry and professional organizations.

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Air Tickets

Book your Air Tickets for your travel with us either offline or online through the site

www.thomascook.in. We offer a complete range for flights, right from Low Cost to Full

service Airlines, to choose from. From time to time we have great deals to offer you on

your flights, Please check out the latest deals and book your flight today on

www.thomascook.in

Rail Tickets

Book your Rail Tickets for your travel with us either offline or online through the site

www.thomascook.in. You can choose either Indian Rail Tickets that are available via

IRCTC or International Rail Tickets via Rail Europe. We offer a complete range for Rail

Bookings, International or Domestic. From time to time we have great deals to offer you

on your Rail Bookings, Please check out the latest deals and book your Rail Ticket with

us today on www.thomascook.in.

Corporate Travel

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Corporate Travel forms a dominant share of overall travel business of our Company. We

manage the travel budgets of several large national and multinational companies. Our large

scale of operations enables us to effectively manage travel budgets of several Multi National

Companies, Blue-Chip companies and Multinational banks to their advantage. Our Company

provides Integrated Travel Management / Advisory Services to more than 300 Corporates.

Our Company provides customers a complete basket of products for all their travel needs:

Air Reservations

Hotel Reservations

Land arrangements which includes sight seeing, car rental, transfers etc.

Passport / Visa Service

Conference / Incentive tour arrangements

Foreign Exchange

Insurance

Our branches specialize in offering tailor-made Travel Policies for each corporate, thereby

bringing savings on spend.

Based on requirements and volumes of business, corporate are serviced either by having a

dedicated relationship team visits client's office regularly or having a dedicated & expert travel

consultant with Centralised Reservation System located at the client's site as an 'implant'.

Meetings, Incentives, Exhibitions & Conferences

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One Stop Shop for all your travel needs i.e. air tickets, accommodation, event management,

forex, visas, travel insurance etc. Hands on approach of senior management, including

travelling along with the group Dedicated team in each hub providing specialised services Most

experienced and cooperative Tour Managers in the industry Operations geared up to handle

large groups. We have successfully handled several groups of over 300 pax in the year 2008 A

specialised quality control department that would ensure smooth delivery of services at every

stage.

Experience: This refers to the experience of the travelers right from the time they board the

airline to the foreign destination till the time they come back. The travel here is a REWARD for

the dealers/employees of the company who have done well over a period of time. The company

(as well as the employees) expects the trip to be an enjoyable, hassle free and fun filled

"experience". We at Thomas Cook understand their concern and provide them this experience

through our:-

Experienced, dependable and extensively traveled Tour Managers, who are available

with the group 24 X 7, provide their personalized services to the group and at times, act

as crisis managers. In contrast, the other tour companies often send their ticketing

person as the "tour manager".

The requests for special Dietary requirements are taken care of completely. The Indians

are very particular about the food they eat (e.g.) Jain food. We make sure that our clients

get the same, irrespective of the location they are traveling to.

The sightseeings that we offer are often exotic and different from the rest of the tour

operators.

Customer Focus/Customer Centric/Exceptional Service: This primarily refers to the

experience of the corporate with our sales representatives. There is a huge extent of

customization in case of a MICE trip in terms of destinations, hotel requirements, conference

needs, sightseeings to be covered, gala dinner venue, team building activities etc. Our prime

focus is always to cater to our customers’ specific needs and the intent is to delight the

customer by always delivering more than promised by us/expected by them.

Dependable: This comes out of the reputation of the company (TCIL) and the vast experience

of handling a large number of MICE movements in the past. The fact that we have got trusted

business partners (suppliers) for every destination and that there is always an experienced tour

manager with the group ensures that the clients feel secure when they travel with us. Moreover,

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the reputation of the company ensures that there will be no let up in the service quality and

there won’t be any trivial financial issues.

Reservoir of Knowledge: The experienced employees of the MICE business make sure that

they function as a "travel consultant" to the client rather than being a "travel agent" to them. We

believe that with our expertise, we are in a position to provide multiple options to our customers.

This is especially true in case of clients who have a budget constraint. Once the client is

provided with multiple options along with the pros and cons for the same, they are in a much

better position to take a decision regarding the destination as well as the services that they

expect us to provide them.

Value for Money/Cost Effective: We are committed to provide quality service to our clients

and we do not believe in any compromise on the same (0% Compromise). We make sure that

the experience that our clients get is of a greater value than the cost that they pay for it. If our

cost is more than the competition, then there is ALWAYS a very strong reason for the same

(which could be better quality of hotels, better airlines, EXTRA inclusions etc.). Our endeavour

is to have our customers delighted by our services so that at all times, they feel that they have

got something EXTRA than the worth of the currency that has been spent on it.

Product Innovation: Over the last decade or so, the MICE industry has been booming. Since

then, some of the companies have been traveling each year (with multiple

incentives/conference tours). They are always looking out for new destinations for the incentive

trips. Our endeavour is to be ahead of the competition at all times and product innovation is one

way of doing that. We have promoted new destinations at different points of times which have

traditionally never been thought of for a MICE trip. E.g. Jordan, Japan, Macau, Canada.

Moreover, within the same destinations, we have managed to change the product mix by

changing the venues for Gala Dinner (at cruise, Desert Safari etc.) or including some exotic

sightseeings or providing some out of the box team building activities or in any other way.

Wide Reach: We are confident of providing our customers with the best of the services at any

destination that they wish to visit. This is due to the vast resources of the company and due to

the number of trusted business partners that we have all over the world.

One Stop Shop for MICE needs/Integrated travel services: It’s our firm belief that once the

customer enters one of our offices, all his travel needs will be catered to. We provide the

customer with the forex services, insurance cover and a travel card. Moreover, we can service

their visa requirements better than any other tour operator because of our goodwill and the

27

relationships that we have with the various embassies/consulates. We have the ability to

provide the customer with a 360 degree experience on a consistent basis.

Work with Play: This is particularly true in case of the corporates who have an offsite for a

conference/meeting. We ensure that after a hard day’s work, they have a relaxed and fun filled

evening. This can be done by sending them on a night cruise or by treating them to a Gala

Dinner with free flow of liquor and a Live DJ. In one of the cases, we had sent a couple of VJs

and RJs (RJ Taraana) from India who made sure that everyone from the group was involved in

the fun activities.

Foreign Exchange

Thomas Cook has been granted an authorized dealers' license (category II) by RBI to deal in

foreign exchange through its designated branches. Under this license, we have been, inter-alia,

granted permission to undertake the following activities:

1. Retail purchases of foreign currencies and travelers cheques.

2. Bulk purchases/sales of foreign currencies from/to authorized dealers, money

changers and franchisees.

3. Release / remittance of foreign exchange for the following activities:

a. Private Visits

b. Remittance by tour operators/travel agents to overseas agents/ principals/

hotels

c. Business Travel (including for Central and State Government officials)

d. Fee for participation in global conferences and specialized training

e. Payment of crew wages

f. Film Shooting

g. Medical Treatment abroad

28

h. Overseas Education

i. Remittance under educational tie up arrangements with universities abroad

j. Maintenance of close relatives abroad

k. Stall rentals and participation fees in connection with participation in

overseas exhibitions / fairs

4. Import and export of foreign currency and export of encashed Traveler's Cheques

5. Maintenance of foreign currency accounts with banks abroad and undertaking

forex cover operations in India and abroad.

The activities permitted by RBI are carried out only at the specific locations permitted by RBI. As

an Authorized Dealer, we are a member of the Foreign Exchange Dealers Association of India.

Our Company provides the foreign exchange and payment solutions for:

Individual travelers

Foreign exchange for leisure outbound travelers

Foreign Exchange for migration, employment, medical treatment

Remittances for students studying abroad, gift remittances etc

Encashment services & inward remittances for inbound tourists visiting

India, Non Resident / Resident Indians.

Corporates

Travel money and remittances for business travelers.

On site support for inbound tour conferences.

29

Film production houses traveling for shoots abroad.

Remittances of tour proceeds for tour operators.

Institutions

Bulk purchases and sales of foreign currencies from Banks, Non Bank

Retailers and Money Changers.

Our business model revolves around leveraging its position as an Authorized Dealer with

systems, ability and experience of handling large volumes of forex transactions for both

wholesale and retail customers in a highly cost-efficient manner.

Foreign Exchange - Products and Services

As an Authorised Dealer, our services includes wholesale and retail purchase and sale of

currency notes, Purchase and Sale of Traveler Cheques ("TC"), pre paid international cards,

inbound and outbound remittances and Money Transfers ("MT"). Some of our products and

services are:

Purchase and Sale of currency notes in 26 destination currencies

Purchase and Sale of foreign currency denominated travelers cheques

Thomas Cook Global Money Card and Citibank World Money Card as prepaid

cards, which is a convenient way to carry money overseas

Foreign Currency Drafts

Wire transfer of Funds

Remittance of money into India through MoneyGram

Cash Advances against International Credit Card

Network

30

Our strong network enables us to attract large wholesale clients such as public and private

sector banks, FFMC's and RMC's to use our services. We have a strong network of

approximately 160 offices in 55 cities and 100 RMCs & Hotel Franchisee.

Our Company has foreign exchange counters at the international airports of Mumbai, New

Delhi, Kolkata, Chennai, Cochin and Trivandrum which are open 24 hours and 365 days a year

to cater to the needs of the international travelers. Our Company also has a round-the clock

Foreign Exchange counter at the New Delhi Railway Station.

Thomas Cook Credit Card

Our Company offers Thomas Cook credit card in association with ICICI Bank Limited.

Our Company and ICICI Bank are marketing and issuing a co-branded credit card to the

customers for using the same at various Master Card retail merchant establishments for

availing benefits attached to the said card. The card has been devised as part of loyalty

program for the products of the company with benefits attached to spend through the card

at Thomas Cook outlets.

31

Salient Features:

Thomas Cook Titanium MasterCard features in brief:

The card has been specially designed for frequent travelers.

Attractive 6 reward points for each spend of Rs.100 on the card on Thomas Cook

products

- Free Delivery of Foreign Exchange within city limits

Rs. 5,000 discount on any Thomas Cook GIT product

1 Free Air ticket to a domestic destination on the issuance of new card

Complimentary travel inconvenience insurance policy

Access to MasterCard travel lounges at Airports across the world

Redemption of reward points for Thomas Cook holiday packages, hotel stays, air

tickets, airline upgrades, etc

Conversion of Thomas Cook reward points to frequent flyer miles - convert the

reward points earned on card to frequent flyer miles on select domestic airlines.

Positioned as a comprehensive travel card

Assured gifts for the joining fees - free air ticket / discount voucher

Higher reward points for card swipes at Our Company's outlets

Redemption of reward points against Thomas Cook products encouraged

32

Travel Insurance

Insurance business of being carried out through our 100% subsidiary - Thomas Cook Insurance

Services (I) Ltd. ("TCISL"). TCISL is a corporate agent of Tata AIG General Insurance Company

Limited. TCISL entered insurance distribution in 2001 and offers the following products and

services:

1. "TravelCare" (Overseas Travel Insurance) - Travel Care offers security for

travelers which covers travel insurance, hospitalization, loss of documents,

Repatriation of Remains, emergency Cash Advance or any other crises which

requires assistance.

2. "FamilyCare" - An Overseas travel Insurance cover for entire family of 4-5

persons with single overall sum insured.

3. "ScholarCare" (Overseas Student Insurance) - A customized product for all

students studying abroad which ensures timely assistance in case of unexpected

surprises in a foreign land.

4. CorporateCare (Overseas Corporate Travel Insurance) - For Companies

where employees travel abroad frequently on work, we have customized group

policies. All foreign trips undertaken by employees in a year are covered under a

single policy.

TCISL provides all insurance products at all our outlets, leveraging on ability to cross sell

insurance products to our Travel and Forex customers.

Logos

Thomas Cook logo (4 colour, CMYK)

Intended for use in full colour print applications, you can download this logo

here

33

Thomas Cook logo (single colour)

For use in one colour print applications, you can download the single colour

logo here

Thomas Cook logo (black and white)

For use in black and white print applications, you can download this logo

here

1.3 PROBLEMS OF THE ORGANISATION

. Low capital investment by the partners

. Costly as compared to services provided

. No discount provided

. No branches in different states

34

1.4 COMPETETION INFORMATION

Name Location Specialists

J S World Travels Jay Ess World Travel

Janak Puri Air Ticketing Agents For Domestic, Railway Ticketing Agents, Air Ticketing Agents For International

Sai G Travel N Forex Pvt Ltd

Hauz Khas Air Ticketing Agents For Domestic, Money Exchanger, Tour Operator

Seven Seas Tours & Travels

Connaught Place Air Ticketing Agents For Domestic, Air Ticketing Home Delivery, Air Ticketing IATA

A 2 Z Travel Planners Noida Air Ticketing Agents For Domestic, Air Ticketing Agents For International, Tour Operator

Nimbuss Incredible India Pusa Road Air Ticketing Agents For Domestic, Car Hire, Railway Ticketing Agents

35

1.5 S.W.O.T. ANALYSIS

Strengths

1) Number of offices from which information can be gathered.

2) No hidden costs

3) Number of different tours available like world tours, honeymoon tours, India tours,

NRI tours.

4) High quality food prepared in deluxe kitchen vans.

5) Luxurious hotels provided.

6) Coaches available with each group.

7) Huge awareness among customers through newspapers, magazines.

WEAKNESSES

1) Focuses more on international tours rather than Indian tours.

2) Costly as compared to services provided.

3) No refund for unutilized service.

4) All flights,hotels,restraunts subject to change without prior notice.

5) Lesser emphasis on cunstomer satisfaction.

6) Low investment.

36

OPPORTUNITIES

1) Can provide large number of services with different package.

2) Increasing number of franchisees will increase the clientele base.

3) With high financial viability company is expected to grow more in near future.

4) It can easily tap the retail investors with its savings through promotional channels like

newspapers,magazines etc.

5) Can also provide its customers different schemes like EMI Scheme as it has good

banking relations.

THREATS

1) With a rise in number of competitors Thomas Cook may loose new clients.

2) Expensive packages may move a customer to other companies.

3) Risk of technological obsolescence.

4) Due to low customer satisfaction customer may not again trust Thomas Cook.

37

CHAPTER-2

OBJECTIVES AND

METHEDOLOGY

38

OBJECTIVE AND METHODOLOGY

2.1 SIGNIFICANCE OF THE STUDY

A brief introduction of Domestic Airlines and their strategies is studied in this project. It

helps in finding the market share, customer preference, likes and feedback about the

airlines and customer service.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

Market survey will help to know the prevailing market condition and also help in

framing the policies accordingly.

The study will help the management to understand the customer mindset and also

estimating the present and future market demand for the products.

It will help to estimate the level of awareness established in the market and in

deciding the extent of promotion required.

It will help in finding out the customers expectations about the product and also

help to know the customer physiology.

2.3 OBJECTIVES OF THE STUDY

Study of Domestic Airline Strategies in Ticket Distribution

Comparison of various Airlines in India.

Analysis of Thomas Cook with competitors.

Customer Preferences

Customer Service

Various Airlines Reservation Systems

39

Computer Reservation Systems

Ticket Reservation Systems

Various Process of the Airlines Ticketing

Finding the recommendation

2.4 SCOPE OF THE STUDY

The survey was conducted on the ticket reservation system of Thomas Cook (I)

Ltd. The main objective behind the survey was to find out the various process of

the airlines ticketing and ticket reservation system. The survey also aimed at

finding the factors which are attracting the people for online reservation system.

2.5 METHODOLOGY

DATA SOURCE

Primary data

A questionnaire is prepared and analyzed to compare different airlines, and able to learn

more about the position in the market. Information is especially collected by means of a

research program carried out for a specific purpose.

Data has been collected from questionnaire method

SAMPLE SIZE 100

SAMPLE AREA DELHI

SAMPLE DURATION 3 MONTHS

Secondary Data

40

Reanalysis of the secondary data, by using appropriate procedures to verify accuracy. It

is collected from internet, magazines, newspaper. 

 

2.6 LIMITATIONS OF THE STUDY

. Questionnaire lacks flexibility in wordings and sequencing of the questions

. There is no scope of rewording, rephrasing the questions

. Only 100 people were included in the sample

. Sampling was done only in Delhi

. Questionnaires were not completely filled

. People were biased

. Time constraint

. Wrong interpretation / observation

. Misleading on part of researchers

. Lack of appropriate training to researchers

. Lack of theoretical base

. Information is limited

. Lower classes cannot be surveyed

41

CHAPTER -3

CONCEPTUAL DISCUSSION

42

AIRLINE RESERVATION SYSTEM

The Airline Reservations System (ARS) was one of the earliest changes to improve

efficiency. ARS eventually evolved into the Computer Reservations System (CRS), and

then into Global Distribution System (GDS).

The history of airline reservations systems began in the late 1950s when American

Airlines required a system that would allow real-time access to flight details in all of its

offices, and the integration and automation of its booking and ticketing processes. As a

result, Sabre (Semi-Automated Business Research Environment) was developed and

launched in 1964. Sabre's breakthrough was its ability to keep inventory correct in real

time, accessible to agents around the world. Prior to this, manual systems required

centralized reservation centers, groups of people in a room with the physical cards that

represented inventory, in this case, seats on airplanes.

The deregulation of the airline industry, in the Airline Deregulation Act, meant that

airlines, which had previously operated under government-set fares ensuring airlines at

least broke even, now needed to improve efficiency to compete in a free market.

Commercial air travel

43

Airlines List of all airlines • List of passenger airlines

Industry associations IATA • ICAO • ISTAT

Ticketing

Airline Reservations System • Airline ticket • Airline timetable

• Boarding pass • Codeshare agreement • Continent pass •

Electronic ticket • Frequent flyer program • Government

contract flight • Open-jaw ticket • Red-eye flight • Round-the-

world ticket • Standby • Travel search engine

AirportAirline hub • Airport • Airport lounge • Domestic airport •

International airport • Regional airport

LuggageBag tag • Baggage allowance • Baggage carousel • Baggage

claim • Baggage handler • Checked baggage • Lost luggage

Check-in Airstair • Airport Check-in • Airport security • Boarding • Gate

SeatingAirline seat • First class • Business class • Premium Economy

class • Economy class • Travel class

In flightAircraft lavatory • Airline meal • Airsickness bag • In-flight

entertainment

Crew Deadheading • Flight attendant • Pilot

Immigration Arrival Card • Departure Card

Safety Air traffic control • Aircraft safety card • Airline security •

Airport authority • Airport police • Civil Aviation Authority •

Flight data recorder • In-flight safety demonstration • Overwing

44

exits

AIRLINE TICKET

An airline ticket generally was a document created by an airline or a travel agent to

confirm that an individual has purchased a seat on an airplane. This document is then

used to obtain a boarding pass at the airport. Then with the boarding pass and the

attached ticket, the passenger is allowed to board the aircraft

An airline ticket generally was a document created by an airline or a travel agent to

confirm that an individual has purchased a seat on an airplane. This document is then

used to obtain a boarding pass at the airport. Then with the boarding pass and the

attached ticket, the passenger is allowed to board the aircraft

It is now common for a traveler to pay a surcharge for a paper ticket. Many airlines no

longer issue paper tickets. IATA has announced that as of June 1, 2008, airlines will no

longer issue any paper tickets.

A paper ticket is generally only good on the airline for which it was purchased. However,

an airline can endorse the ticket so that it may be accepted by other airlines, sometimes

on standby basis or with a confirmed seat.

Usually the paper ticket is for a specific flight. It is also possible to purchase an 'open'

ticket which allows travel on any flight between the destinations listed on the ticket. The

cost for doing this is greater than a ticket for a specific flight.

Some tickets are refundable. However the lower cost tickets are usually not refundable

and may carry many additional restrictions.

A ticket is made up of one or more flight coupons. These flight coupons are the actual

tickets that are used for travel. One flight coupon is used for each leg of the flight.

The carrier is represented by a standardized 2-letter code. In the example above Thai

Airways is TG. The departure and destination cities are represented by International Air

45

Transport Association airport codes. In the example above, Munich is MUC and Bangkok

is BKK. The International Air Transport Association is the standard setting organization.

Only one person can use a ticket. If multiple people are traveling together, the tickets are

linked together by the same record locator or reservation number which are assigned if

the tickets were purchased at the same time. If not, most airlines can connect the tickets

together in their reservation system. This allows all members in a party to be processed in

a group allowing seat assignments to be together (if available at the time of the

assignment).

Black market

When paper tickets were still frequently used, a practice existed by travellers to get rid of

their tickets (which are person-specific) when they decided to alter the course of their

trips. This practice consisted of selling the ticket to other travellers (often at discount

prices), after which the seller accompanied the buyer at the time of departure to the

airport. Here, the original owner checked in under his name, and provided the airport

with the buyer's baggage. After this, the buyer boarded the airplane at the moment of

departure. However, since most airlines check identification on boarding, this procedure

was rarely functional.

Cheap tickets

Besides simply obtaining airline tickets from travel agencies, online, or at the airport at

regular prices, two special types of cheap tickets exist. These include Standby tickets and

Discount tickets.

Standby tickets are obtained at the airport itself, only hours before departure. They

represent places freed up by people who cancelled their flight shortly before departure (so

the airline has free places available, yet can no longer sell it at at regular price because of

the shortage of time).

46

Discount tickets are tickets that are only available at travel agencies; they are usually

targeted at students. Discount tickets may be 50-70% cheaper than other similar regular

tickets (not low-cost).

An electronic ticket or e-ticket is used to represent the purchase of a seat on a passenger

airline, usually through a website or by telephone. This form of airline ticket rapidly

replaced the old paper tickets (from close to zero to 100% in about 10 years) and became

mandatory for IATA members as of June 1, 2008. During the last years, where paper

tickets were still available, airlines frequently charged extra for issuing them. E-tickets

are also available for certain entertainment venues.

Once a reservation is made, an e-ticket exists only as a digital record in the airline

computers. Customers usually print out a copy of their receipt which contains the record

locator or reservation number and the e-ticket number.

47

COMPUTER RESERVATION SYSTEM

A computer reservations system (CRS) is a computerized system used to store and

retrieve information and conduct transactions related to air travel. Originally designed

and operated by airlines, CRSes were later extended for the use of travel agents; major

CRS operations that book and sell tickets for multiple airlines are known as global

distribution systems (GDS). Airlines have divested most of their direct holdings to

dedicated GDS companies, who make their systems accessible to consumers through

Internet gateways. Modern GDSes typically allow users to book hotel rooms and rental

cars as well as airline tickets.

History

In the early days of American commercial aviation, passengers were relatively few, and

each airline's routes and fares were tightly regulated by the Civil Aeronautics Board.

These were published in a volume entitled The Official Airline Guide, from which travel

agents or consumers could construct an itinerary, then call or telex airline staff, who

would mark the reservation on a card and file it. As demand for air travel increased and

schedules grew more complex, this process became impractical.

In 1946, American Airlines installed the first automated booking system, the

experimental electromechanical Reservisor. A newer machine with temporary storage

based on a magnetic drum, the Magnetronic Reservisor, soon followed. This system

proved successful, and was soon being used by several airlines, as well as Sheraton

Hotels and Goodyear for inventory control. It was seriously hampered by the need for

local human operators to do the actual lookups; ticketing agents would have to call a

booking office, whose operators would direct a small team operating the Reservisor and

then read the results over the telephone. There was no way for agents to directly query

the system.

In 1953, Trans-Canada Airlines (TCA) started investigating a computer-based system

with remote terminals, testing one design on the University of Toronto's Manchester

48

Mark I machine that summer. Though successful, the researchers found that input and

output was a major problem. Ferranti Canada became involved in the project and

suggested a new system using punch cards and a transistorized computer in place of the

unreliable tube-based Mark I. The resulting system, ReserVec, started operation in 1962,

and took over all booking operations in January 1963. Terminals were placed in all of

TCA's ticketing offices, allowing all queries and bookings to complete in about one

second with no remote operators needed.

In 1953, American Airlines CEO C. R. Smith chanced to sit next to R. Blair Smith, a

senior IBM sales representative. Their idea of an automated Airline Reservation System

(ARS) resulted in a 1959 venture known as the Semi-Automatic Business Research

Environment (SABRE), launched the following year. By the time the network was

completed in December 1964, it was the largest civil data processing system in the world.

Other airlines soon established their own systems. Delta Air Lines launched the Delta

Automated Travel Account System (DATAS) in 1968. United Airlines and Trans World

Airlines followed in 1971 with the Apollo Reservation System and Programmed Airline

Reservation System (PARS), respectively. Soon, travel agents began pushing for a

system that could automate their side of the process by accessing the various ARSes

directly to make reservations. Fearful this would place too much power in the hands of

agents, American Airlines executive Robert Crandall proposed creating an industry-wide

Computer Reservation System to be a central clearinghouse for U.S. travel; other airlines

demurred, citing fear of antitrust prosecution.

In 1976, United began offering its Apollo system to travel agents; while it would allow

the agents to book tickets on United's competitors, the marketing value of the convenient

terminal proved indispensable. SABRE, PARS, and DATAS were soon released to travel

agents as well. Following airline deregulation in 1978, an efficient CRS proved

particularly important; by some counts, Texas Air executive Frank Lorenzo purchased

money-losing Eastern Air Lines specifically to gain control of its SystemOne CRS.

49

European airlines also began to invest in the field in the 1980s, propelled by growth in

demand for travel as well as technological advances which allowed GDSes to offer ever-

increasing services and searching power. In 1987, a consortium led by Air France and

West Germany's Lufthansa developed Amadeus, modeled on SystemOne. In 1990, Delta,

Northwest Airlines, and Trans World Airlines formed Worldspan, and in 1993, another

consortium (including British Airways, KLM, and United Airlines, among others) formed

the competing company Galileo International based on Apollo. Numerous smaller

companies have also formed, aimed at niche markets the four largest networks do not

cater to.

Recent developments

The system architectures of the four major GDSes are largely based on a mainframe

Transaction Processing Facility framework, which, while reliable and capable of large

workloads, has relatively little processing power and can be expensive to maintain and

upgrade. Recently, the companies have begun selectively migrating processes from their

older mainframes to service-oriented architectures. By using high-performance, lower-

cost platforms, they improve their capacity to handle a fast-rising "look-to-book" ratio;

that is, the total number of shopping transactions compared to actual purchases. The ratio

has increased over time as Internet bots search GDSes more frequently and consumers

compare offers more often before buying.

The declining cost of modern server hardware and the relatively recent introduction of

automated pricing, shopping, and booking software has allowed many airlines to shift

significant buying volume to their own websites, thereby avoiding GDS distribution fees

of $4 or more per flight segment. (The average flight consists of 2.5 segments.) It remains

uncommon for a travel agency to operate without the use of at least one of the four major

GDSs. Meanwhile, the GDS companies have developed their own Web interfaces, and

now sell their services directly to consumers through sites such as Expedia (formerly

owned by IAC/InterActiveCorp, but now spun off into a separate company called

"Expedia Inc."), Travelocity (owned by SABRE), and Orbitz (formerly owned by

Cendant, which is now a wholly-owned subsidiary of Blackstone called Travelport).

50

Further competition exists in the form of newcomers to the business such as ITA

Software.

United States Department of Transportation regulations governing CRSes were

eliminated by July 31, 2004, but CRSes remain subject to government regulations in

Canada and the European Union. Since all of the major GDS companies operate globally,

the most restrictive requirements—currently those of the European Union—effectively

govern all their operations. The companies have been lobbying Canada and the European

Union for total deregulation of the industry.

Today, each system allows an operator to locate and reserve inventory (for instance, an

airline seat on a particular route at a particular time), find and process fares/prices

applicable to the inventory (Revenue management, Variable pricing and Geo

(marketing)), generate tickets and travel documents, and generate reports on the

transactions for accounting or marketing purposes.

Major systems

Name Created by Also used byUS Market share*

Amadeus Air France

Iberia

Lufthansa

SAS

Online travel agencies including

o ebookers

o Expedia

o Opodo

o Flights

o Anyfares

Over 500 individual airlines

Over 120 individual airline websites

Over 90,000 travel agencies

9.2%

51

Over 76,000 hotels

SABRE American Airlines

All Nippon Airways

Cathay Pacific Airways

China Airlines

Singapore Airlines

Expedia

Travelocity

Anyfares

Kayak

Over 20 individual airlines

44.7%

Galileo Aer Lingus

Air Canada

Alitalia

Swissair

TAP

United Airlines

CheapTickets

ebookers

Ixeo

19.7%

Worldspan Delta

Northwest

Orbitz

Hotwire

Priceline

26.5%

Patheo KLM

Finnair

Lufthansa

VA

Online Travel agencies including

o Airgorilla

o Flights

o Kayak

o Anyfares

o American Express

Abacus Cathay Pacific Airways

52

TICKETING PROCESS OUTSOURCING

An Introduction

53

It presents an approach towards outsourcing in the areas of back office processing of

Ticketing Helpdesk and Fulfillment Services for the flight and/or holiday businesses of

Travel Agencies.

Travel Agencies today can avail of outsourcing options that provide enhanced efficiency,

better quality of service and superior value.

The document provides information on why outsourcing of ticketing operations is

becoming a practical, viable and efficient option for Travel Agencies to cut down on

operating costs. The document also details some typical processes that can be evaluated

by mid-to-large sized Travel Agencies for outsourcing. Finally, it lists the essential steps

towards structuring a commercial engagement for outsourcing.

The Case for Outsourcing Ticketing processes

For Travel Agencies, ticketing is a function that entails high process time, while being

low as a value generating function. It is a function that adds to the agency‘s costs in terms

of the time spent on query handling and ticket distribution, while the agency does not

create additional value by handling this process on its own. Nor is there a significant

Knowledge protection issue that necessitates this process being handled directly by the

agency.

Reducing Costs:

On the contrary, agencies can drastically reduce distribution costs and improve the

customer travel experience, by outsourcing the ticketing function. Outsourcing enables

the agency to redirect staff to handling the real-time needs of it's customers, whether

those customers are calling from office, home or from an airport. Call center staff are

thus freed up to deal with customer enquiries, rather than processing tickets. This enables

the Travel agency to streamline its business processes and cut overheads through

outsourcing, and thus drive customer service and concentrate on core areas of its

business.

54

Relevant Experience:

The ticketing processes outlined in this paper are predominantly fares related. Fares is an

area where an Outsourcing partner with the relevant experience can bring superior value

in terms of its fares expertise and trained and qualified fares experts. An outsourcing

partner with fares experts having experience in fare loading, quality check of fares and

rules, rules coding for both published as well as private fares, as well as working

experience on GDS-based fares systems œ can provide the right resource base to take on

a outsourced Ticketing operation.

Such a partner can not only manage the processes efficiently, but also improve

productivity levels once processes are stabilized after migration. Added to this, the cost

advantages by virtue of off- shore location and a flexible pricing model, make

outsourcing an ideal option for most mid-to-large Travel Agencies. Listed below some

key differentiating factors that a Travel Agency should look for, while outsourcing its

Ticketing operation:

Travel domain knowledge, with in-depth knowledge of airline & tour operator processes

Domain expertise in fares and ticketing

Trained and experienced travel industry professionals especially fares & ticketing experts

State-of-the-art BPO delivery centre well equipped with systems, links and security

measures as required for any world-class operations

55

Ticketing Process Outsourcing the Benefits

An outsourcing partner with the right expertise with fares and ticketing, coupled with

strong process frameworks, can ensure that a client looking to outsource its ticketing

functions stands to benefit in the following ways:

Outsourced services with defined Service Level Agreements œ and often exceeding

them.

Client Agency‘s core business requirements met without undue risk.

Painless Transition of the service delivery from the current provider using a realistic,

phased, low-risk approach.

Guaranteed bi-directional delivery through SLA driven tie-ups with globally reputed

courier companies.

Services delivered with price-predictability and scalability.

Break-even point for migration of services achieved within an agreed, specific time-

frame.

Innovation in reducing cost of services and improving operational efficiencies.

Allowance for market load and price flexibility without compromising quality.

Practical, working mechanisms for management, communication, escalation, risk

mitigation and service improvement

Outsourced Ticketing Operations Processes

Outsourcing of the Ticketing function to an Outsourcing Partner (referred to hereon

as ”Partner‘) can cover the following Operations Processes:

Help Desk Support Process - for Inter-branch Ticketing (IBT)

56

This process entails handling inbound calls only from Client Agency shops. Agents

from the Client Agency shops would call up for queries related to Published fares

(e.g. unable to obtain a fare quote of the itinerary or inability to attain the right

fare etc).

To address these, the Partner accesses the Fares database to resolve agent issues:

The query shall mostly be resolved and thereafter updated in 1P.

If unresolved, the query shall be escalated to Client Agency through email/ phone and

the caller shall be informed for the possible time of resolution.

Sat as per the Local Country Time of the Client Agency.

Ensuring Quality for the Help Desk Process

Call monitoring takes place of calls handled by different agents by the supervisor of the

team according to an assessment sheet with clear parameters .The supervisor shares the

strengths & weaknesses of the agent coach and puts back the agent on refresher trainings

if required.

MIS of calls handled is tracked by the supervisor to check the average handling time of

each agent. To ensure if a particular agent AHT is much higher than the prescribed time,

the supervisor ascertains the reasons and addresses it.

Queue Management & Resolution Process

This process entails processing rejected PNR‘s to enable printing of tickets through

Robots. The unresolved ticketing requests (PNRs) rejected from the ROBOT system land

on specific 1P queues, which are attended (manually intervened) to sort the discrepancy.

The PNR‘s are assessed in order of their priority and allocated to associates.

Agent have access to 1P, Fares database and intranet to investigate/ resolve the

reason for reject.

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The discrepancy is then rectified and the PNR forwarded for Ticketing through

ROBOT ticketing system.

In case the discrepancy is out of scope the PNR is addressed to the originating

agent for further clarification or escalated to product/ ticketing team.

The Queues Processing & Dispatch process can be operational on a 24 x 7 pattern.

Ensuring Quality for the Queue Management Process

Quality is ensured for this process through remote monitoring i.e. viewing the

monitor of the agent from a remote location without his knowledge. A supervisor

does the monitoring to ensure the accuracy of action and quantity of messages

transacted and the quantum of calls escalated. This exercise is carried out

randomly for all agents.

Dispatch Process for tickets & other documents to the Client Agency

The process entails processing two separate types of documents:

a) Scheduled air ticket/ e-ticketing quality check & dispatch - issued for a

journey at least 21 days ahead.

This process covers:

Inter-branch ticketing and flight-savers (Client Agency shop published)

Flight direct œ receipt letters (Client Agency shop nets)

Flight direct œ ticket dispatch (Sales center bookings nets / pubs)

Flight direct œ invoice dispatch (Sales center bookings nets / pubs)

E-ticket itinerary dispatch

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In this process, the Partner‘s operation would receive scheduled airline tickets / E-tickets

(access from TIS) / invoices from the Client Agency‘s location for journeys commencing

over 20 days ahead from the date of dispatch. There can be a combination of receipt

letters received either through courier or printed by the Partner‘s local printers

The documents namely, airline tickets, E-tickets, invoices and receipts are

counted, sorted and recorded in a particular order and segregated according to

specifications.

The documents go through a Quality Check to verify the details are correct and

In accordance with the information available in the system. If found in order, the

system is accordingly updated.

In case the ticket does not pass the Quality Check, it is accordingly rectified or

escalated. The escalated documents are packed separately.

The supporting documents / labels required are printed from the system. The

invoices are then scanned and stored.

The documents passing the set specifications are collated with other support

documents and put in envelopes and packed for dispatch after appropriately

labeling them to the Client Agency‘s shops or customers.

All transactions are counted, recorded and sealed for dispatch to the Client

Agency

This process shall be operational on a 24 x 7 pattern.

b) Package holiday/ charter flight ticket/ invoice/ errata/ receipts dispatch

(Travel Cat) issued for a journey at least 15 days ahead.

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This process covers:

Tour operator tickets

Tour operator errata

Receipt letters

Tour operator invoices

The transaction can include receiving documents / carrying out primary & secondary

verification and quality checks followed by dispatching the documents to the Client

Agency. The Objective of the process, thus, is not only to deliver well within prescribed

SLA‘s but also offer value to the Client Agency to widen the scope of work. The

Outsorucing Partner can receive chartered airline tickets / errata‘s/ invoices from the

Client Agency for journeys commencing over 15 days ahead from the date of dispatch.

Receipts and insurance letters from the Client Agency get printed by the Partner‘s

local printer.

The documents are counted, sorted and recorded in a particular order and

segregated according to specifications.

The documents shall go through a Quality Check to verify the details are correct

and in accordance with the information available in the system. (Travel CAT). If

found in order, the system is updated.

Supporting documents are printed from Travel Cat & invoices are scanned. In

case the ticket does not pass the quality check it is accordingly rectified or

escalated. The escalated documents are separately packed.

Documents passing the set specifications are collated with other support

documents; put in envelopes and packed for dispatch after appropriately labeling

them to Client Agency shops/customers.

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All transactions are counted, recorded & sealed for dispatch to the Client Agency.

In both the above cases, the dispatch process is completed through a tie-up with a

global courier organization operating out of India as well as the Client Agency‘s

location(s). The specifics of the courier process deliverables can be finalized with

the Client Agency separately.

Ensuring Quality for the Dispatch Process

A complete checklist is made for all the different jobs to be handled. The person

handling the each job ensures the job once completed is checked against the

checklist to complete the Quality Check. The supervisor on duty again does a

random check to ensure all procedures are being followed.

Each staff handles only one document at a time to ensure no mixing of documents

occurs at any level.

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CHAPTER-4

DATA ANALYSIS

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Q1. How is your experience with Thomas Cook ticketing process?

Average 13

Good 20

Excellent 67

13%

20%

67%

Average Good Excellent

INTERPRETATION

The above graph shows that 67% of respondents had excellent experience with Thomas

Cook ticketing process, 20% of respondents had good and remaining 13% had average.

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Q2. What is your experience with online reservation facility?

Average 22

Good 30

Excellent 48

22%

30%

48%

Average Good Excellent

INTERPRETATION

The above graph shows that 48% of respondents found online reservation system

excellent , 30% of respondents found it good and remaining 22% said online reservation

is average..

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Q3. What is your mode of ticket reservation?

Directly 15

Online 55

Through Agent 30

15%

55%

30%

Directly Online Through Agent

INTERPRETATION

The above graph shows that 55% of respondents said that booked their tickets online,

30% said that they booked their ticket through agent and remaining 15% said that they

booked their ticket directly.

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Q4. How would you describe the ease with which you booked your airline ticket, hotel

reservation, your tour etc

Difficult 15

A little difficult 25

Neither 25

Easy 35

15%

25%

25%

35%

Difficult A little difficult Neither Easy

INTERPRETATION

The above graph shows that 35% of respondents found their hotel reservation, ticket

reservation and tour reservation easy, 25% of respondents found a little difficult, 25% of

respondents found neither and remaining 15% respondents found its difficult.

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Q5. Do you think the amount paid by you for the ticket reservation is reasonable?

Yes 65

No 35

65%

35%

Yes No

INTERPRETATION

Above graph shows that 65% of respondents are satisfied with the amount they paid and

remaining 35% are not satisfied.

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Q6. Which class of airline ticket would you like to reserve?

Economic 45

Business 55

45%

55%

Economic Business

INTERPRETATION

The above graph shows that 55% of respondents had opt for the business class section

reservation and remaining 45% of respondents like economic class section.

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Q7. Which one would be your preferred airlines?

Jet Airways 15

Kingfisher Airlines 20

Indian Airlines 15

Indigo 25

Spice Jet 20

Others 5

15%

20%

15%25%

20%

5%

Jet Airways Kingfisher Airlines Indian Airlines Indigo Spice Jet Others

INTERPRETATION

The above graph shows that 15% of respondents preferred jet airways, 20% of

respondents preferred Kingfisher Airlines, 15% of respondents preferred Indian Airlines,

25% of respondents preferred Indigo, 20% of respondents preferred spice jet and

remaining 5% preferred others.

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Q8. Would you like to be updated with our new packages of reservation?

Yes 70

No 30

70%

30%

Yes No

INTERPRETATION

The above graph shows that 70% of respondents preferred like to update with our new

packages of reservation and remaining 30% of respondents are not interested.

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Q9. How is the hotel reservation provided to you by Thomas Cook?

Average 24

Good 22

Excellent 54

24%

22%

54%

Average Good Excellent

INTERPRETATION

The above graph shows that 54% of respondents found there hotel reservation excellent,

22% Good and remaining 24% average.

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CHAPTER 5

FINDINGS AND

RECOMMENDATIONS

72

73

FINDINGS AND RECOMMENDATIONS

FINDINGS

Most of the customers are happy with customer service and had good image of

Thomas Cook. There are using the services and would also recommend the same to

their friends and relatives.

Thomas Cook has proven one of the most successful examples of how an advertising

message can be modified from one campaign to the next to attribute new methods of

online ticket reservation system giving consumers more reasons to book tickets

through this medium.

The ticketing process of Thomas Cook is found excellent by majority share of

customers as 67% of them found it excellent, 20% of people found it good and

remaining 13% found them average.

Introduction of online reservation facility has been adopted by maximum number of

people as 48% had excellent experience, 30% good and 22% had average experience.

It has been found that ticketing reservation has been cancelled or changed without

any prior notice which as a result lead to loss of goodwill.

As the company does not provide any discount on ticket reservation so the customers

are switching to there competing companies

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RECOMMENDATIONS

1) An immediate response should be given for people who are

making there reservations online in form of mail feedback or any other medium.

2) Decent discounts should be provided on the reservations and

special discounts should be introduced during vacations and festivals.

3) The online booking form should not be complicated but should be

made easier so as to attract more customers.

4) Company should provide customers with such attractive offers

that they feel satisfied for the amount paid and would recommend them to there

relatives and friends.

5) To increase the goodwill of the company further in the minds of

customers. Thomas Cook should send greetings to its customers on occasions

like festivals, birthdays and anniversaries. small gifts like calendars, diaries, cards

etc.

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ANNEXURE

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QUESTIONNAIRE

Q1. How is your experience with Thomas Cook ticketing process?

Average

Good

Excellent

Q2. How is your experience with online reservation facility?

Average

Good

Excellent

Q3. What is your mode of ticket reservation?

Directly

Online

Through Agent

Q4. How would you describe the ease with which you booked your airline ticket,

hotel reservation, your tour etc

Difficult

A little difficult

Neither

Easy

Q5. Do you think the amount paid by you for the ticket reservation is reasonable?

Yes

No

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Q6. Which class of airline ticket would you like to reserve?

Economic

Business

Q7. Which one would be your preferred airlines?

Jet Airways

Kingfisher Airlines

Indian Airlines

Indigo

Spice Jet

Others

Q8. Would you like to be updated with our new packages of reservation?

Yes

No

Q9. How is the hotel reservation provided to you by Thomas Cook?

Average

Good

Excellent

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Magazines

Business Today

India Today

Websites

www.thomascook.in

www.visittoindiatours.com

Newspapers

Hindustan Times

Times of India

Business Times

Mint Newspaper

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