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5) Sotc Travel Limited
5) Sotc Travel Limited
SOTC Travel Limited which was earlier called as SOTC Travel Private Ltd. & Kuoni Travel
(INDIA) Pvt.Ltd.. This industry is a step down subsidiary of Fairfax Financial Holdings Group .
This group includes two companies i.e, THOMAS COOK INDIA LIMITED (TCIL) and
TRAVEL CORPORATION LTD.( TCL) is a subsidiary of Thomas cook India ltd.SOTC was
founded in the year 1949. This is a travel and tourism industry which is active across various
travel segments like Leisure Travel , Business Travel , Destination Management Services and
distribution Visa marketing services.
SOTC mainly provides the customized holidays around the world to the peoples.They mainly
offers the Corporate Tours and provides the packages for MICE ( Meetings, Incentives,
Conferences and Events).SOTC promotes the escorted tours to the international travellers in
India.SOTC has recently launched various religious tours called as ‘darshans’ which aims at
offering spiritual experiences across various religious destinations in India.
HISTORY
SOTC ( Sita online tourism corporation) is a leading travel and tourism industry which is active
across various travel segments including Leisure travel, Incentive travel and Business travel.This
industry is established in the year 1949.It is a stepdown subsidiary of Fairfax Financial Holdings
group that includes Thomas cook india limited . SOTC has make the holidays a priority for every
indian. This company’s customer focus , innovation and operational excellence has not only
tapped the existing market potential but has also created new markets through innovative
packages.The vast array of holiday services is taking holiying for peoples on the next level.With
the investments in the technology and with a strong online presence the SOTC is serving its
customers through an omni channel play.
1) LEISURE TRAVEL
SOTC’S leisure segments includes the offerings namely Escorted group tours , Customised
holidays , luxury holidays and Holidays of india.
This company is taking various initiatives to reach out its customers through their innovative
products so that they can grab more and more attention of them.They have started the concept of
one day road shows named Holiday bazaars that promotes the international and domestic
escorted and group tours so that they can fulfill the dream holidays of customers.
2) INCENTIVE TRAVEL
They have a team of 100 professionals across india who can organize various meetings ,
conferences and events so that they can attract more and more customers and can increase their
market leadership across the outbound travelling area.
3) BUSINESS TRAVEL
With the use of leading technologies , user oriented software applications and strong focus on the
customers , the company has establishes itself as the expert in the travelling business sector.
Pics
SOTC: An Overview:-
A major turning point came in 1976 when SOTC handled its first group tour to the
US during the bicentennial celebrations.
Between the years 1983 and 1995, SOTC grew by leaps and bounds. It moved to
new premises at Church gate, Mumbai, installed the first computer for sales and
operations, and went through a management metamorphosis with a complete
restructuring of the business into autonomous Strategic Business Units (Subs) with
a state-of-the-art call centre. SOTC has been fulfilling the travel needs of Indians
for over five decades now. It continues to seek out new and exciting destinations to
offer to outbound travelers.
SOTC Do-It-Yourself Holidays caters to seasoned individual travelers who want to
see the world at their own pace. And for domestic vacationers we have Holidays of
India.
SOTC has been the pioneer in the development of organized leisure travel in India.
With a sales turnover of Rs 400 crores (2005), growing at 30% p.a., and a wide
distribution network of 130 sales outlets and 3500 travel agents across India, it is
more than double the size of the next biggest competitor
SOTC is the Outbound Travel Division of Kuoni India and the country’s largest
outbound tour operator. World Famous Tours is the flagship brand of SOTC,
which pioneered the designing and marketing of escorted tours to cosmopolitan
travelers in India. SOTC World Famous Tours has escorted over 3,00,000 travelers
across the globe, for more than 50 years to various destinations including Europe,
Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East.
Being a 100% subsidiary of Kuoni Travel Holding, Switzerland – one of the
world’s largest travel companies - SOTC leverages the advantage of the buying
power and travel services to provide customers value-for-money packages. SOTC
endeavors to bring alive customers dream holiday. To begin with, SOTC ensures
that customer’s family travel safe, sure and secure with the finest Indian families.
SOTC has a wide distribution network of 130 sales outlets and 3500 travel agents
across India to retail our range of products and serve customers better.
SOTC – Voted The Best Outbound Tour Operator 2004, 2005 & 2006
SOTC has been voted the Best Outbound Tour Operator 2004, 2005 and 2006 in
India by the Galileo Express Travel & Tourism Awards Committee. The Galileo
Express Travel & Tourism awards have been designed to give recognition to the
trade for outstanding achievements during the year. The advisory board formulated
the criteria for the award in consultation with the renowned audit firm, Deloitte
Touche Tohmatsu, which used both a subjective and objective methodology that
included a polling process. This award was based on various parameters of
judgment and took into consideration factors including revenue generated,
operational efficiency, perceived service levels, and the ability to retain and
increase market share.
It is also significant to note that Kuoni India, the parent company of SOTC has
won all the 3 top awards in the travel operations category at the prestigious Galileo
Express Travel and Tourism awards for all its three core activities.
Kuoni was presented the highly prestigious World’s Leading Tour Operator 2006
award ' World's leading tour operator ' at WTM, London in November 2005. The
World Travel awards, which are bestowed for exceptional services in the travel
sector, have evolved into one the industry’s most important annual events over the
past few years. The awards are voted on by thousands of travel – sector specialist
from over 80,000 agencies in more that 200 countries. And winning one is clear
confirmation of a company’s excellence within the travel sector.
SOTC’s Brands
SOTC World Famous Tours is the flagship brand of SOTC, which pioneered the
designing and marketing of escorted tours for cosmopolitan travelers in India.
SOTC World Famous Tours has escorted over 3, 00,000 travelers across the globe
for more than 30 years, to various destinations including Europe, Australia, New
Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100%
subsidiary of Kuoni Travel Holding, Switzerland - one of the world's largest travel
companies SOTC leverages the advantage of the buying power and travel services
to provide customers value for- money packages. SOTC has built a reputation that
it lives up to its promise to take Indians around the world, while making them feels
completely at home, no matter where they are.
2)-SOTC BhramanMandal
SOTC Holidays of India has something for every kind of traveler - be it families,
youth, students, honeymooners, groups or individuals. SOTC Holidays of India
offers packages that cover every conceivable tour requirement - whether it is an
extended vacation with the family, a paragliding spree with friends or simply a
rejuvenating weekend break. SOTC Holidays of India offers an opportunity to visit
and explore all the splendors of India through various categories of holiday
packages. SOTC Holidays of India has categorized all holiday packages into
Standard, First and Deluxe Class categories.
Vision Statement
Providing a platform for dialogue with other partners (eg. with destination
authorities and stakeholders focused on implementing programmes for sustainable
development in destination areas).
Broaden the support for sustainable development among other players in the
tourism sector, including of tourists BY
Objective 3:
Increasing the visibility of committed tour operators and creating the image
of the Initiative as a world leader in the area of environmentally, socially and
culturally responsible tourism (public and industry recognition).
3. Solid and fruitful strategic alliances: Considering the nature of their services
and our relative infancy on the market, SOTC should realize the importance of
establishing and maintaining fruitful strategic alliances with various stakeholders,
including hotels, lodges, and travel agencies, amongst others, so as be assured of a
constant flow of customers, fulfilling their needs at every opportunity.
2. Drive year-round travel from visitors in our domestic target audience and
lengthen their average stay by encouraging them to be destination-oriented in this
state.
3. Drive year-round travel and lengthen the average stay from visitors from our
primary international markets.
PRODUCT
Escorted tours
Customized holidays
Trade fairs
SOTC sports
Corporate tours
PRICE
The second level corresponds to the marketing operations or tactics where the
prices are manipulated to match the current demand and competition.
PLACE
To extend the number of points of sales or access, away form the location at
which services are performed or delivered
Different distribution strategies are selected for Tours marketing by SOTC. There
are also small agents (who have taken franchise of SOTC) spread all over the
town/country who also play a role of place. SOTC act as wholesalers and also act
as a retailer. The latest mode of reaching the customers is through Internet that is
SOTC has its own website from where information on the tours can be procured,
direct booking can be done for which the payment can be made through the credit
card. SOTC also has its own offices from where booking can be done.
PROMOTION
Electronic Ads
Publicity/PR
Exhibitions/Trade Fairs
Tie ups with Yash Raj Films, Experiencing the Magical moments of Yash
Raj Films with SOTC.
SOTC appointed as the Tour Partner to Kingfisher Airlines for the DLF IPL
T20.
PEOPLE
It plays a most important part in tourism. In people local people are very important,
that how they treat tourist. The travel agents, guides, staff of travel companies,
sales staff, etc they are the people. Travel Company also like Railways, Air, etc. is
included in people. Normally a tourist assures a tourism quality like hotels, Travel
Company.
In the tourism industry the travel agents and the travel guides are the two most
important people who speak a lot about the industry. Hence it is imperative that
they have to be at their best at all times. Travel guides especially, are expected to
have a lot of patience, good sense of humor, tact to transform the occasional
tourists into habitual ones, thorough knowledge of the places, linguistic skills etc.
• 2900 employees through its 347 offices and caters to 3 million customers.
PROCESS
The operation process of the tourism firm will depend on the size of the tourism
firm. The sequential steps involved in the delivery of the SOTC products are:
Liaison with providers of services--- Before any form of travel is sold over
the counter to a customer; SOTC enters into the contracts with the providers of
various services including transportation companies, hotel accommodation,
coaches for local sightseeing etc.
Planning and costing tours------ Once the contracts and arrangements are
entered into, then the task of planning and costing the tour, this will depend on the
tour selected as well as individual requirements.
PHYSICAL EVIDENCE
Market Segmentation
2. Business travelers
3. Conference attendees
4. Students
5. Visiting friends
The mass market consists of vacationists that travel in large groups and
prefer all-inclusive tours. They are generally conservative.
4 I’s of Services-
Inflexibility
The tourism industry is highly inflexible in terms of capacity. The number of beds
in a hotel or seats on a flight is fixed so it is not possible to meet sudden upsurges
in demand similarly restaurants tables, hotels beds and flights seats remain empty
and unused in periods of low demand.
Inventory / Perishability
It is related to the fact that travel products are intended to be consumed as they are
produced. For example, an airline has seats to sell on each flight; a hotel has rooms
to sell for each night. If the airline is not able to sell all its seats on its flight, or a
hotel is not able to sell its rooms for the night then the opportunity to sell the
product is lost forever. Service sector cannot keep inventory like products. To
overcome this problem, the travel industry has come up with various marketing
strategies. One is to overbook. An airline overbooks its seats to a certain extent in
anticipation that even though certain customers do not turn up but the flight will be
fully seated. Another strategy is multiple distributions. For example a customer can
buy an airline ticket from an airline, tour operator or from a travel agent. The
chances of perishability are reduced. If the tourist cannot visit the place, the
opportunity is lost. Hence, this becomes one of its important characteristics.
Inconsistency
A general norm is that in Travel and Tourism industry the product or the package
of the tourism can be standardized i.e. for example of 2 days 3 night in so and so
hotel, but the actual experience of consuming this package is highly inconsistent.
We hear a lot of travel stories which becomes a portrayal of a lot of bad
experiences for example the tourist guide may not be good, the hotels lodging and
boarding was bad etc. Therefore there is high level of inconsistency prevailing.
Intangibility
Political
The political factors are the main driving force of the industry. The Indian tourism
industry is built on the backbone of Government support and the industry cannot
sustain itself without it. The various archaeological sites and the places of
historical importance, the roads and the railways are all in the hands of the
Government. All the support services like the hotel industry, the airlines industry
and the tourist operators to name some are heavily dependent on the support and
the cooperation of the Government. are encouraging the growth of
major hotels in their states.
Economic:
The tourism industry not unlike the other industries grows with the increase in the
spending of the people. The more the people spend the more the industry grows.
The spending power of the people has been increasing in the country and all over
the world. Since we are concentrating on the international tourists, the large
increase in the spending power in most developed countries has left a large amount
of idle cash in their hands. This has led to a tourism boom the world over and India
has been no exception. There have been more people coming into the country with
more cash than ever before. This has lead to an increase in the demand for better
hotels. People who previously used to come to the country on a shoestring budget
and hunt around for the cheapest accommodation can now afford to go in for
luxury hotels. This has led to an increase in the number of hotels in the country.
However, an increase in spending does not only limit itself to accommodation. The
increase in the spending is also evident in the increase in the number of people
traveling by air. Even the number domestic tourists traveling by air has
dramatically gone up.
Social:
Tourism was always looked upon as something that led to the destruction of the
social fabric of a place. The more the amount of outside people coming into a
place, the more the perceived risk of that place losing its identity. A good example
is Goa. From the late 60's to the early 80's when the Hippy culture was at its
height, Goa was a haven for such hippies. Here they came in thousands and
changed the whole culture of the state. This had a ripple effect on the country.
People became cautious, especially of the international tourists.
Technology:
Although technology does not seem to be a major influence at first glance, it plays
a major part in the promotion of a place. Better communication facilities are one of
the first prerequisites for growth in the inflow of tourists. This has been made
possible with technology. Improved technology in the field of communication at
cheaper costs has resulted in many remote and inaccessible areas of the country
getting connected to the rest of the world. This connectivity has made these places
visible to the world. Better communication means access to media. And that is very
important if any place wants to be on the world tourist map.
Strength-
3) Tie ups with other tour operators and travel agents across India.
6) Cost Saver tours designed by SOTC, keeping in mind the budget of the
traveler, without compromising on sightseeing and basic holiday needs.
Weakness-
2) Lack of corporate offices and small city offices across the nation
Opportunities-
1) Economic conditions
2) Security
3) New entrants
5) Competitors
Internet is one of possible bye pass instrument through which new entrants
can enter the market, this can reduce entry barrier for new entrants.
For SOTC biggest rivalry in India is From Cox and Kings , Thomas Cook
The Internet brings many more companies into competition with one another
by expanding geographical markets and reduce entry barrier, it can raise the rivalry
within the industry and increase the pressure for price discounting. For Example
Makemytrip.com, Travelguru, Yatra.com etc.
3. Power of Supplier
4. Power of Buyer
The reduced Switching costs of Buyer also increase the bargaining power of
buyer.
The customer can easily compare different prices and gain knowledge about
products, thus prices becomes the most important criterion.
5. Threat Of Substitutes
Vision-
To create value for all religious people, giving them all comfort and convenience
from the start to the end of their journey.
Product-
A SOTC religious tour offers following services for all the devotees
who have taken our religious tour package-
Price-
Place-
Customers can buy tickets and package from the following places-
4) Tie up with SBI and ICICI Banks for the sale of tickets.
Promotion-
There are various promotional campaigns through which SOTC can promote this
religious tour like-
Segmentation-
3) Religious people
PROJECT OUTCOMES AND RECOMMENDATIONS-
Through this project we came to know about the current scenario of tourism
industry in India with respect to the world. We also came to know about SOTC,
it`s brands, how SOTC uses the 7P`s of marketing and how it segmented the
market. This project also tells us about the 4 I`s of services in tourism industry,
PEST analysis, like how various sectors of environment affects the tourism
industry, SWOT analysis of SOTC. In spite of having so many strengths, SOTC
also have so many weaknesses like shortage of branches and offices across India,
ineffective customer services, not focusing on rural areas and Indian railway
network. In order to avoid any inconvenience to its customers, it should open new
branches, more effective online ticket booking facilities and focus on small cities
and towns. Through porter`s five forces model we have learned about the external
environment of SOTC, like rivalry among competitors, threat of new entrants in
tourism industry, it should focus on it`s online ticket booking facilities to restrict
online tourism provider like makemytrip.com, yatra.com. We have also made a
separate marketing plan for SOTC`s religious tour to Mata Vaishno Devi which
will be beneficial for all devotees visiting Vaishno Devi for worship.