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Indian Tourism Industry

Tourism in India is the largest service industry, with a contribution of 6.23% to thenational GDP and 8.78% of the total employment in India. The tourism industry inIndia generated about 100 billion US dollars in 2008 and that is expected toincrease to US$275.5 billion by 2018 at a 9.4% annual growth rate. In 2010, 17.9million foreign tourists visited India. The majority of foreign tourists come fromUSA and UK. Kerala, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the topfive states to receive inbound tourists. Domestic tourism in the same year was 740million. Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Maharashtra received the

 big share of these visitors.

Ministry of Tourism is the nodal agency to formulate national policies and programmes for the development and promotion of tourism. In the process, theMinistry consults and collaborates with other stakeholders in the sector includingvarious Central Ministries/agencies, the state governments and union territories andthe representatives of the private sector. Concerted efforts are being made to

 promote new forms of tourism such as rural, cruise, medical and eco-tourism. TheMinistry of Tourism also maintains the Incredible India campaign.

According to World Travel and Tourism Council, India will be a tourism hot-spotfrom 2009–2018, having the highest 10-year growth potential. The Travel &Tourism Competitiveness Report 2007 ranked tourism in India sixth in terms of 

 price competitiveness and 39th in terms of safety and security.

Despite short- and medium-term setbacks, such as shortage of hotel rooms, tourismrevenues are expected to surge by 42% from 2007 to 2017. India's thousands of years of history, its length, diversity and the variety of geographic features make itstourism basket large and varied. It presents heritage and cultural tourism along withmedical, business and sports tourism. India has one of the largest and fastestgrowing medical tourism sectors.

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Group Introduction

Thomas Cook Group plc was formed on 19 June 2007 by the merger of ThomasCook AG and MyTravel Group plc. The new company is one of the world’sleading leisure travel groups with

• Sales of £8.9 billion

• 22.5 million customers

• 31,000 employees

• A fleet of 94 aircraft

• A network of over 3,400 owned or franchised travel stores and a number of 

hotels and resort properties.

The Group operates under six geographical segments in 21 countries, and isnumber one or two in all its core markets.

UK & Ireland, Continental Europe (Germany, Austria, Belgium, France, the Netherlands, Poland, Hungary, Slovenia and Slovakia); Northern Europe (Sweden,  Norway, Denmark, Finland) and North America (Canada and USA); India &Middle East; and German airlines operating under the Condor brand.

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Company Introduction

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

Financial Services Company in the country offering a broad spectrum of servicesthat include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance.The Company launched its Indian operations in 1881 and is celebrating its 130years of world-class service in India. Thomas Cook (India) operates in thefollowing areas of business, namely:

• Leisure Travel & MICE

• Corporate Travel Management

• Foreign Exchange

• Insurance

• E-Business

Post March 31st 2008, Thomas Cook (India) Limited (TCIL) is a part of ThomasCook Group plc UK (TCG). On March 7th 2008, TCG announced its decision toacquire TCIL from Dubai Investment Group. Thomas Cook Group plc is one of thelargest travel groups in the world with a market capitalization of approximatelyUS$6 Billion.

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

Corporation (India) Pvt. Ltd. (TCI).

TCIL presently operates in over 78 cities across over 209 locations. The companyhas overseas operations in Sri Lanka which is a branch of TCIL and Mauritiuswhich is a subsidiary of Thomas Cook (India). TCIL is supported by a strong

 partner network of 102 Gold Circle Partners and 180 Preferred Sales Agents inover 100 cities pan India. The Company employs over 2,740 resources and is listedon 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 Best Tour Operator’ by CNBC Awaaz Travel Awards 2009 and the ‘India’sMost Preferred Foreign Exchange Company' by Indian Hospitality ExcellenceAwards 2010. Recently, the Company won the ‘Most Trusted Tour Operator’ at therecently concluded Times Travel Honours Event 2011 and was also accredited theP1 rating which is the highest financial rating given by Crisil.

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Costs Workout By Thomas Cook 

For any travel packages offered by Thomas Cook, it workouts the costs by dividingthe cost into 4 major section, namely

Ticketing Costs

Visa Costs

Hotel Expenses Package Expenses (F&B, Sightseeing, Local Travelling, Entry Fees, Etc…)

Thomas Cook offers various domestic and international tour packages, the costs for all are workout using the same method. In case of domestic tours Visa Costs arenot involved.

Let us understand in detail each of the component.

Ticketing Costs

For ticketing there are 2 softwares available namely

Galileo

Amadeus

These are similar to the computer screen for movie ticket booking. As u enter the place of origin and destination it will show you the various airlines offering theservice, and the price for each of the airline. This allows the user to compare the

 prices of various airlines and choose the best out of it.

Most companies in India uses the Amadeus Software, while TCIL uses Galileo.

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Visa Costs

A visa is a document showing that a person is authorized to enter the territory for which it was issued, subject to permission of an immigration official at the time of 

actual entry. The authorization may be a document, but more commonly it is astamp endorsed in the applicant's passport.

A visa generally gives non-citizens clearance to enter a country and to remain therewithin specified constraints, such as a time frame for entry, a limit on the timespent in the country, and a prohibition against employment. The possession of avisa is not in itself a guarantee of entry into the country that issued it, and a visacan be revoked at any time. A visa application in advance of arrival gives thecountry a chance to consider the applicant's circumstance, such as financialsecurity, reason for applying, and details of previous visits to the country. A visitor may also be required to undergo and pass security and/or health checks uponarrival at the border.

The Visa costs are to be paid to the VISA Department of the country you willing tovisit. The Visa costs vary from country to country. There are also agents who helpyou out in procuring Visa. But to avoid the charges of middleman or agents TCIL

 procures visa by direct consulting the VISA Department of concerned country.

Hotel Expenses

Both the methods Online and Offline method are used for Hotel Booking. Mostly bookings are done by contacting the hotels directly. Hotels are mostly fixed as per destination. For Eg. If a tourist visit Mumbai than he would stay at Hotel TAJ.

The hotel costs in the package also depends upon the customer choice for the hotel.i.e 3 Star or 5 Star.

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Package Expenses

The Package expense include the expenses related to Food and Beverages,Sightseeing, Local Travelling, Entry Fees etc. The bookings are done mostly

through agents as everywhere direct access is not available and it becomes toocomplex for TCIL. Places where online booking facility is available than the

 booking is done online to avoid the charges of agent.

It also depends upon the customer’s choice that whether they want and inclusive package or an exclusive package.

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Profit Funda

The most important thing for any business is profit. Profit is the lifeblood of  business which keeps the business alive and kicking. In this section we will

understand that how TCIL makes profit out of the packages

Generally TCIL earns a commission 12% to 15% on each of the component. The profit margin in Hotel and Package expenses are much more.

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Bibliography

http://www.thomascook.in http://www.economywatch.com/business-and-economy/tourism-

industry.html  http://en.wikipedia.org/wiki/Tourism_in_India  http://www.rncos.com/Report/IM115.htm- RNCOS Industry Research

Solution

Interview With

Mrs. Munifa SareshwalaEx Assistant Manager,Thomas Cook (India) Ltd,Ahmedabad Branch