Professional Documents
Culture Documents
Thomas Cook
Thomas Cook
Thomas Cook
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.
ACKNOWLEGEMENT
My sincere gratitude to Mr. Rahul Bajaj 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 wouldnt have taken the current form. I
deeply appreciate their valuable contributions.
ABHINAV
TABLE OF CONTENTS
S.NO.
1.
2.
TITLE
PAGE NO.
INTRODUCTION
1.1
1.2
19
1.3
32
1.4
Competition information
33
1.5
S.W.O.T. Analysis
34
RESEARCH METHODOLOGY
37
2.1
Significance
38
2.2
38
2.3
39
2.4
39
2.5
Research Methodology
40
2.6
40
3.
CONCEPTUAL DISCUSSION
41
4.
DATA ANALYSIS
59
5.
77
ANNEXURES
BIBLIOGRAPHY
CHAPTER-1
INTRODUCTION
INTRODUCTION
1.1
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.
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
2
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
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.
Deccan
Deccan, formerly known as Air Deccan, is Indias 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)
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.
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 carriers main hub is in Delhi.
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 Indias 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.
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.
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.
10
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.
11
12
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.
30.4%
29.0%
19.8%
IndiGo
8.4%
SpiceJet
5.3%
Others
5.2%
14
Operational airlines
AIRLINE
ICAO
IATA
CALLSIGN
COMMENCED
OPERATIONS
Air India
AIC
AI
AIR INDIA
October 1932
Air-India Express
AXB
IX
EXPRESS INDIA
April 2005
September 2007
BDA
BZ
BLUE DART
May 1994
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
15
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
COMMENCED
CEASED
OPERATIONS OPERATIONS
ARCHANA* 1991
1999
Alliance Air
ALLIED
1996
September 2007
2004
2006
1993
1997
East-West Airlines
1992
1996
Gujarat Airways
1995
2001
Himalayan
Aviation
1948
1953
Indus Airways
2006
2007
Kalinga Airlines
1946
1953/1965
LLR
CD
Crescent Air
Cargo
Damania Airways DAM
ModiLuft
D2
MOD* HT*
MODILUFT* 1994
1996
NEPC Airlines
1993
1997
Vayudoot
1981
1997
16
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.
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.
17
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.
18
1.2
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 2011, Thomas Cook (India) Limited (TCIL) is a part of Thomas Cook Group plc
UK (TCG). On March 7th 2011, 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 2008, 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.
19
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 2007 given by TTG Asia - Part of Pacific Asia Travel
Association (PATA) for the 5th year in succession.
20
of
management,
social
and
environmental
The National Tourism Award for 2001-2002 & 20022003, winning the second rank in category 1 for the company that achieved the
highest foreign exchange earnings from Ministry of Tourism.
Awarded "The Best Outbound & Inbound Tour Operator of the Year" award
at the Hospitality India Awards 2006 hosted by Hospitality India.
Best Travel Agency - India for the year 2011 by TTG Asia - Part of Pacific Asia
Travel Association (PATA)
21
Best Outbound Tour Operator in the 4th Hospitality India & Explore the world
Annual International Awards - 2013
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.
22
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.
23
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
24
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.
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
25
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.
26
the reputation of the company ensures that there will be no let up in the service quality and there
wont 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: Its 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 days 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:
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
Corporates
29
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:
Thomas Cook Global Money Card and Citibank World Money Card as prepaid
cards, which is a convenient way to carry money overseas
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.
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:
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
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.
Assured gifts for the joining fees - free air ticket / discount voucher
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:
Logos
Thomas Cook logo (4 colour, CMYK)
Intended for use in full colour print applications, you can download this
logo here
33
1.3
No discount provided
.
2.6
Managing Director
Madhavan Menon
Vinayak K Purohit
2.7
Managing Director
Madhavan Menon
Vinayak K Purohit
Executive Director
Rakshit Desai
34
R R Kenkare
Ramesh Savoor
Chairman (Non-Executive)
Krishnan Ramachandran
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.
35
36
CHAPTER-2
OBJECTIVES AND
METHEDOLOGY
37
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
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
Customer Preferences
Customer Service
38
2.4
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
39
SAMPLE DURATION
3 MONTHS
Secondary Data
Reanalysis of the secondary data, by using appropriate procedures to verify accuracy. It
is collected from internet, magazines, newspaper.
2.6
Time constraint
Information is limited
CHAPTER -3
CONCEPTUAL DISCUSSION
41
Industry associations
Ticketing
42
Luggage
Check-in
Seating
In flight
Crew
Immigration
Safety
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
43
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
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
44
(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).
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.
45
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.
47
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 everincreasing 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, lowercost 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).
48
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 requirementscurrently those of the European Unioneffectively
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
Amadeus
Created by
US
Market
share*
Also used by
Air France
Iberia
Lufthansa
ebookers
SAS
Expedia
Opodo
Flights
Anyfares
Online travel
including
agencies 9.2%
Over
500
airlines
Over
49
90,000
individual
travel
agencies
SABRE
Galileo
Worldspan
Patheo
Abacus
American
Airlines
Expedia
Travelocity
44.7%
All Nippon
Airways
Anyfares
Cathay
Pacific
Airways
Kayak
China
Airlines
Singapore
Airlines
Aer Lingus
CheapTickets
Air Canada
ebookers
Alitalia
Ixeo
Swissair
TAP
United
Airlines
Delta
Orbitz
Northwest
Hotwire
Priceline
Online Travel
including
19.7%
26.5%
KLM
Finnair
Lufthansa
Airgorilla
VA
Flights
Kayak
Anyfares
American Express
Cathay
Pacific
50
agencies
Airways
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.
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 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
52
Painless Transition of the service delivery from the current provider using a
realistic, phased, low-risk approach.
Allowance for market load and price flexibility without compromising quality.
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:
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.
54
The PNRs 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.
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.
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.
In this process, the Partners operation would receive scheduled airline tickets / E-tickets
(access from TIS) / invoices from the Client Agencys 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 Partners 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 Agencys shops or customers.
All transactions are counted, recorded and sealed for dispatch to the Client
Agency
56
b)
Receipt letters
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
SLAs but also offer value to the Client Agency to widen the scope of work. The
Outsourcing Partner can receive chartered airline tickets / erratas/ 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 Partners
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.
57
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.
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 Agencys
location(s). The specifics of the courier process deliverables can be finalized with
the Client Agency separately.
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.
58
CHAPTER-4
DATA ANALYSIS
59
Table 4.1
Profit & Loss of Thomas Cook Ltd. (Rs. in crores)
60
Particulars
Mar-13
Mar-12
Mar-11
Mar-10
Mar-09
Mar-08
267.36
219.62
274.77
237.02
221.83
121.78
0.00
0.00
0.00
0.00
0.00
0.00
267.36
219.62
274.77
237.02
221.83
121.78
21.98
6.51
8.64
9.90
21.13
10.79
0.00
0.00
0.00
0.00
0.00
0.00
289.34
226.13
283.41
246.92
242.96
132.57
Raw Materials
0.00
0.00
0.00
0.00
0.00
0.00
3.80
3.82
3.31
3.24
2.95
1.75
94.21
78.69
79.76
62.78
59.19
29.07
6.58
5.41
5.56
4.48
4.91
2.96
81.75
68.85
93.55
92.77
86.50
43.05
Miscellaneous Expenses
6.99
4.45
6.87
4.74
9.15
3.95
0.00
0.00
0.00
0.00
0.00
0.00
193.33
161.22
189.05
168.01
162.70
80.78
Operating Profit
96.01
64.91
94.36
78.91
80.26
51.79
Interest
21.27
20.96
35.02
31.77
10.75
3.78
Gross Profit
74.74
43.95
59.34
47.14
69.51
48.01
INCOME :
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
EXPENDITURE :
Employee Cost
Other Manufacturing Expenses
Selling and Administration Expenses
Total Expenditure
Depreciation
11.59
9.85
8.88
7.85
11.01
6.50
63.15
34.10
50.46
39.29
58.50
41.51
Tax
20.85
11.41
18.70
7.18
18.64
14.00
0.00
0.15
1.65
1.19
1.40
0.43
Deferred Tax
0.76
0.38
-0.09
-2.49
-0.02
0.22
41.54
22.16
30.20
33.41
38.48
26.86
Extraordinary Items
8.38
-0.48
-2.66
3.19
7.58
-1.38
33.16
22.64
32.86
30.22
30.90
28.24
0.00
0.00
0.00
0.00
-73.94
0.00
73.78
61.70
43.97
27.06
73.98
54.54
0.00
0.00
0.00
0.00
0.00
0.00
11.93
10.08
12.47
16.50
11.46
7.42
103.39
73.78
61.70
43.97
27.06
73.98
Dividend
7.96
7.93
7.93
8.04
8.04
5.47
Preference Dividend
0.00
0.08
1.36
4.31
0.00
0.00
Equity Dividend %
37.50
37.50
37.50
50.00
50.00
37.50
1.90
0.98
1.70
1.68
21.82
17.89
1.90
0.98
1.70
1.56
2.02
1.66
14.44
12.86
5.71
4.48
35.35
112.03
61
Interpretation
Table 4.2
(Rs. in crores)
Mar-13 Mar-12
21.77
284.61
306.38
1.98
196.75
198.73
505.11
21.74
250.79
272.53
0.48
167.10
167.58
440.11
121.67
75.71
197.38
0.01
257.40
257.41
454.79
119.95
56.01
175.96
0.07
283.18
283.25
459.21
119.95
36.96
156.91
0.46
245.44
245.90
402.81
14.58
148.76
163.34
0.00
0.00
0.00
163.34
136.40
70.87
0.00
65.53
0.00
5.27
197.41
123.79
63.41
0.00
60.38
0.00
2.27
192.54
114.92
55.95
0.00
58.97
0.00
1.04
192.54
105.72
49.93
0.00
55.79
0.00
3.77
192.67
100.10
44.75
0.00
55.35
0.00
0.58
202.46
88.92
38.08
0.00
50.84
0.00
2.85
19.09
62
0.00
186.33
108.38
123.69
418.40
0.00
172.12
118.11
88.31
378.54
0.00
105.69
132.99
87.17
325.85
0.00
140.31
145.92
77.33
363.56
0.00
110.90
160.64
52.01
323.55
0.00
76.44
85.07
37.59
199.10
166.07
11.04
177.11
241.29
0.00
3.11
7.50
-4.39
505.11
73.29
178.01
11.98
189.99
188.55
0.00
3.08
6.71
-3.63
440.11
40.53
106.00
14.36
120.36
205.49
0.00
3.95
7.20
-3.25
454.79
28.84
136.13
17.10
153.23
210.33
0.00
3.69
7.04
-3.35
459.21
11.55
160.40
12.90
173.30
150.25
0.00
1.66
7.49
-5.83
402.81
10.48
95.66
7.31
102.97
96.13
0.00
1.88
7.45
-5.57
163.34
9.98
Interpretation
Table 4.3
Particulars
Cash and Cash Equivalents at Begining of the year
Net Cash from Operating Activities
Net Cash Used In Investing Activities
Net Cash Used In Financing Activities
Net Inc/(Dec) In Cash And Cash
Cash And Cash Equivalents At End Of The Year
Mar-13
Mar-12
Mar-11
Mar-10
Mar-09
118.11
8.33
-20.45
2.39
-9.73
108.38
132.99
58.30
-12.86
-60.32
-14.88
118.11
145.91
69.22
-7.77
-74.37
-12.92
132.99
149.22
70.15
-5.98
-78.95
-14.58
140.55
152.54
71.11
-3.23
-83.21
-16.67
148.44
Interpretation
Table 4.4
(Rs. in crores)
Mar-13
Mar-12
Mar-11
Mar-10
Mar-09
(Rs.Cr)
(Rs.Cr)
(Rs.Cr)
(Rs.Cr)
(Rs.Cr)
267
220
251
236
224
Other Income
22
Total Income
289
226
259
240
228
Total Expenditure
193
161
165
164
160
PBIDT
96
65
94
92
89
Interest
21
21
35
36
37
PBDT
75
44
59
53
40
Depreciation
12
10
Tax
21
11
20
20
19
42
22
30
31
28
-2
-4
-6
35
22
32
34
33
2.0
1.1
1.8
1.9
1.7
2.0
1.1
1.8
1.6
1.2
2.0
1.0
1.9
1.4
1.1
Deferred Tax
Reported Profit After Tax
Extra-ordinary Items
64
2.0
1.0
1.9
1.5
1.3
2.0
1.0
1.9
1.3
1.2
2.0
1.0
1.9
1.6
1.1
0.0
0.0
0.0
0.0
0.0
37.5
37.5
37.5
37.5
37.5
Dividend (%)
Equity
Reserve & Surplus
Face Value
Non-Promoter Holding Shares
21
21
16
18
15
284.6
250.8
75.7
67.6
60.1
1.0
1.0
1.0
1.0
1.0
48,336,250
47,975,120
40,369,905
39,365,305
35,469,205
22.80
22.70
25.10
25.78
26.01
PBIDTM (%)
35.87
29.43
37.44
33.56
29.78
PBDTM (%)
27.95
20.01
23.67
22.12
23.34
PATM (%)
15.54
10.09
12.05
12.11
11.12
Interpretation
In 2009,2010,2011,2012,2013 the Gross Sales 224, 236, 251, 220, 267 cr.
Respectively in an increasing rate but in 2012 it average goes down.
In 2009,2010,2011,2012,2013 the Total Tax paid was 19, 20, 20, 11, 21 cr.
Respectively in an increasing rate in 2009 it jumps above average but in 2012 it
goes down.
Table 4.5
Key Ratios of Thomas Cook Ltd.
65
Years
Mar-13
Mar-12
Mar-11
Mar-10
Debt-Equity Ratio
0.6
0.9
1.5
1.6
0.1
0.1
0.1
0.1
Current Ratio
1.2
1.0
0.9
0.8
Fixed Assets
2.1
1.8
2.5
2.3
Inventory
0.0
0.0
0.0
0.0
Debtors
1.5
1.6
2.2
1.9
3.4
2.6
2.4
2.2
PBIDTM (%)
31.2
29.6
34.3
33.3
PBITM (%)
26.8
25.1
31.1
30.0
PBDTM (%)
23.2
20.0
21.6
19.9
CPM (%)
16.7
14.6
14.2
17.4
APATM (%)
12.4
10.1
11.0
14.1
ROCE (%)
15.2
12.3
18.7
16.5
RONW (%)
11.5
12.1
35.2
47.1
PE
32.4
68.4
24.7
67.7
EBIDTA
96.0
64.9
94.4
78.9
DivYield
0.6
0.6
0.9
0.4
PBV
4.3
5.2
7.4
25.4
EPS
1.9
1.0
1.7
1.7
Mar-09
Interpretation
The debt-equity ratio A ratio greater than one means assets are mainly financed
with debt, less than one means equity provides a majority of the financing. In
2009 the ratio was 0.8, then in 2010 it was 1.6, then in 2011 it was 1.5, then in
2012 it was 0.9, then in 2013 it was 0.6.
Current ratio the higher the current ratio, the more capable the company is of
paying its obligations. A ratio under 1 suggests that the company would be unable
to pay off its obligations if they came due at that point. In 2009 the ratio was 1,
then in 2010 it was 0.8, then in 2011 it was 0.9, then in 2012 it was 1, then in
2013 it was 1.2.
Fixed assets turnover ratio. A higher fixed-asset turnover ratio shows that the
company has been more effective in using the investment in fixed assets to
generate revenues. In 2009 the ratio was 2.0, then in 2010 it was 2.3, then in 2011
it was 2.5, then in 2012 it was 1.8, then in 2013 it was 2.1.
66
Inventory turnover ratio: A low turnover rate may point to overstocking [2],
obsolescence, or deficiencies in the product line or marketing effort. However, in
some instances a low rate may be appropriate, such as where higher inventory
levels occur in anticipation of rapidly rising prices or shortages. A high turnover
rate may indicate inadequate inventory levels, which may lead to a loss in
business.
Interest cover ratio: A ratio used to determine how easily a company can pay
interest on outstanding debt. The lower the ratio, the more the company is
burdened by debt expense. When a company's interest coverage ratio is 1.5 or
lower, its ability to meet interest expenses may be questionable. In 2009 the ratio
was 5.3, then in 2010 it was 2.2, then in 2011 it was 2.4, then in 2012 it was 2.6,
then in 2013 it was 3.6.
PBIDTM all profits before taking into account interest payments and income
taxes. Higher PBITM(%) is the best. In 2009 the ratio was 30.8, then in 2010 it
was 33.3, then in 2011 it was 34.3, then in 2012 it was 29.6, then in 2013 it was
31.2.
67
13
20
67
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.
Experience with online reservation facility
Average
Good
Excellent
22
30
48
68
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..
15
55
30
69
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.
Describe the ease with which you booked your airline ticket, hotel
reservation, your tour etc
Difficult
A little difficult
Neither
Easy
15
25
25
35
70
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.
Amount paid for the ticket reservation is reasonable
Yes
No
65
35
71
INTERPRETATION
Above graph shows that 65% of respondents are satisfied with the amount they paid and
remaining 35% are not satisfied.
Class of airline ticket like to reserve
Economic
Business
45
55
72
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.
Preferred airlines
Jet Airways
15
Kingfisher Airlines
20
Indian Airlines
15
Indigo
25
Spice Jet
20
Others
73
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.
Like to be updated with our new packages of reservation
Yes
No
70
30
74
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.
75
24
22
54
INTERPRETATION
The above graph shows that 54% of respondents found there hotel reservation excellent,
22% Good and remaining 24% average.
76
CHAPTER 5
FINDINGS AND
RECOMMENDATIONS
77
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.
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
78
RECOMMENDATIONS
1)
2)
3)
4)
5)
79
ANNEXURE
80
QUESTIONNAIRE
Q1.
Average
Good
Excellent
Q2.
Q3.
Average
Good
Excellent
What is your mode of ticket reservation?
Q4.
Directly
Online
Through Agent
How would you describe the ease with which you booked your airline ticket,
hotel reservation, your tour etc
Q5.
Difficult
A little difficult
Neither
Easy
Do you think the amount paid by you for the ticket reservation is reasonable?
Yes
No
81
Q6.
Q7.
Economic
Business
Which one would be your preferred airlines?
Q8.
Jet Airways
Kingfisher Airlines
Indian Airlines
Indigo
Spice Jet
Others
Would you like to be updated with our new packages of reservation?
Q9.
Yes
No
How is the hotel reservation provided to you by Thomas Cook?
Average
Good
Excellent
82
BIBLIOGRAPHY
83
BIBLIOGRAPHY
Magazines
Business Today
India Today
Websites
http://www.indiainfoline.com/Markets/Company/Fundamentals/KeyRatios/Thomas-Cook-India-Ltd/500413
http://www.thomascookgroup.com/
http://www.thomascook.com/live/home/?link=view&CM_ID=1
https://www.travelairlineindia.com/aboutus/about_us.aspx
www.google.com
Newspapers
Hindustan Times
Times of India
Business Times
Mint Newspaper
84