Synopsis of the final report on the Tourism Industry

Company Selected - Cox & Kings

Subject – Managerial Economics

Batch – 2010-12 Section – D Group No. - 4

Group Members

Serial Name Roll

Number Number
1 Raunak Narain 2010175
2 Ravi Mittal 2010176
3 Richa Jain 2010178
4 Rishabh Maheshwari 2010179
5 Rishabh Rakhecha 2010180
6 Rituparna Adak 2010182

Total Words in the Assignment – 459

Submitted to Dr. Veena Pailwar

Background of the Firm

Cox & Kings is the longest established travel company in the world. Its distinguished
historybegan in 1758 when it was appointed as general agents to the regiment of Foot
Guards in Indiaunder the command of Lord Ligonier.

The principal services offered by the company are:

•Destination Management
•Outbound Tourism
•Business Travel
•Incentive & Conference Solutions
•Domestic Holidays
The main goal of the firm is to provide benefit to the customer in terms of service and thus
make the experience of a holiday worthwhile.

Market Structure and Pricing Policies

The competitors of the firm are:
1. Thomas Cook
2. Raj Tours and Travels
3. Kesari
4. Kuoni Travel Group
The competition in the tourism sector is very stiff and since they offer services, the
experience is the sole factor in brand loyalty. The fragmented nature of the market makes it
a monopolistic competitive market. The demand for tourism has been rising in India
because of the liberalisation and low cost transport structure. Also with the number of
customers rising per year, the income of C&K is also rising along with profit which makes it
clear that the demand is rising.

The pricing policies of the company are based on various factors one being a fixed
percentage of profit based on previous year profits and projected profits margins for the
next year to meet the focal agenda decided by the company another is scenario of the
competitors in the market and their pricing structures. The disposable income and the
tastes of the potential consumers of services are also factors that carry weightage.
Challenges faced by the firm

The challenges are:

1. The seasonal variation of travelling

2. The currency fluctuation
3. The climatic changes
4. Geo-political events
5. High input costs

Due to the seasonal variation, some of the locations have a lean patch at the given times in a year,
another factor that influences the same is the current global warming scenario where the climatic
conditions are changing every year by a margin and it makes the stay uncomfortable. The currency
fluctuation leads to increase in demand for travelling to a country if its currency gains strength and
vice versa.

Strategies to combat the aforementioned points are:

1. Time based advertising.

2. Demand forecasting based on foreign exchange and alliances.
3. Introduction of new modes of travelling and leisure.

Advertising of travel at a particular place at the right season would result in a fruitful campaign and if
the currency fluctuations support the mentioned clause then it would be further profitable. If
conditions are not supportive enough, new modes of travelling should be introduced like Royal
Trains.

References

1. www.coxandkings.co.in
2. www.sebi.gov.in/dp/coxandkingsdraft.pdf
3. www.tourisminindia.com
4. www.hinduonnet.com