SIP Thomas Report

8/19/2019 SIP Thomas Report

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CUSTOMER APPREHENSIONS TO NON CURRENCY OPTIONS TO

CARRY MONEY ABROAD AND SUGGESTIONS TO BUILD MARKET

FOR BORDERLESS PREPAID CARD

AT

THOMAS COOK INDIA LIMITED

SUBMITTED BY

MICHAEL JACKSON

ROLL NO: 131120

BATCH XIX, 2013-2015

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REUIREMENT FOR THE A!ARD OF THE DEGREE OF

POST GRADUATE DIPLOMA IN MANAGEMENT

"IGNANA JYOTHI INSTITUTE OF MANAGEMENT

#APPRO"ED BY AICTE, MINISTRY OF HRD, GO"T OF INDIA$

BACHUPALLY, HYDERABAD

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D%&'()(*+

I, M+&.(%' J(&/ M, hereby declare that the management project on Market Research of

Customer apprehensions towards non currency options to carry money abroad and

suggestions to build market for Borderless Prepaid Card by me and it is not submitted to any

other institution or university for the award of any degreediploma certificate or published

any time before!

Place" #yderabad MIC#$%& '$C()*+! M

ate" P-M, ./012./03

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A&/'%4%*

It would be prudent to commence this report with an e4pression of gratitude towards all those

who have played an indispensable role in the accomplishment of this project

by providing their valuable guidance! I would like to take this opportunity to acknowledge

and thank T.4( C/ I+( L* for providing me with this highly coveted opportunity to

associate my )ummer Internship Project with an organi5ation of worldwide repute! I e4tend

my gratefulness to M) T.+)64(', A&+(*% "+&% P)%+%* 7 HR, S6*. ( S)+'(/( (

M) M.( "+*. K64(), B)(&. 4((%) for their help and guidance

in various capacities which have been e4tremely proficient in getting the best out of me by

sharpening my rough edges from time to time! I am deeply indebted to my faculty guide,

P)8%) P(4(9( whose help, stimulating suggestions and encouragement helped me in all

time of research! I thank D) M(&.('( for her guidance in my internship and for referring

me to this wonderful organi5ation! I am also thankful to all my team members for their stimulating support and co2operation! &ast but not the least6 I cannot forget the help and co2

operation of the employees of T.4( C/ I+( L* My special thanks to my parents

without whom it would have not been possible and for everything of what I am today!

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Contents

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E%&6*+;% S644()<

7his study will give you an overview of customer preference of foreign e4change to carry

money abroad and about 7homas Cook newly introduced Borderless Prepaid Card 8BPC9!

T.4( C/ #I+($ L* is one of India:s largest integrated travel ; travel related

financial services company with head9 other than currency and about customer awareness about the newly introduced

Borderless Prepaid Card!

7he work was carried out in stages where analysis of the market includes competitor product

analysis, market penetration of BPC!

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INDUSTRY PROFILE

India is a tourism product which is unparalleled in its beauty, uni


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OUTBOUND TOURIST FROM INDIA:

00,3 million Indians travelled abroad in ./008E00,F than ./0/92 ./F to %urope,

)ingapore, Malaysia, 7hailand and @$% are the main destination countries

7he total numbers of Indians who travel abroad represent only 0F of the countryGs

total population, but in the ne4t ./ years the number is likely to increase si42fold!

7he growth in outbound travel will be pronounced among business travelers, those visiting

friends, relatives and senior citi5ens! In ./0/, India generated just under 01 million outbound

travelers as compared to 3A! million by China! *f the 01 million flyers, !3 million travelers

were bound for destinations in the $sia2Pacific region! #owever, the potential of the Indian

travel market is enormous! *ver the last five years outbound travel from India has more than

doubled and this is reflected in strong growth in outbound travel from India to all $sia2

Pacific destinations,H said a report released by $madeus, a technology partner for the global

travel industry! HIndian travelers to north east $sia, south $sia, south east $sia and the Pacific

are increasing at 0/F annually or more,H said the report, which analy5ed the geopolitical,

social, economic and technological trends! 7he =R 8visiting friends and relatives9 segment

is one of those slated to grow considerably in the coming years! H7here are 0// million

Indians living abroad! Jith both relatives and social relationships becoming

internationali5ed, =R travel is increasing significantly,H said $nkur Bhatia, director of

$madeus, India! $ccording to the report, more than ?? F of Indian travelers have close

relatives living overseasKthe highest for $sia2Pacific regionKwith north $merica, $ustralia,

and the @( the most common locations!

HMore than D/F of Indian travelers e4pect to visit family members overseas in the future,

with most e4pecting to visit multiple times! $mong Indian leisure travelers, our research

indicated that 1F stated =R as the main reason for travel,H the study said!

O6*=6 D%>()*6)% =< C6*)< +%:

Country2222227otal outbound2222 $s percentage of the population departures 8in millions9

India222222222222201222222222222222222222222222222222/0

China22222222222223A!222222222222222222222222222222/

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$ustralia2222222222/A22222222222222222222222222222221/

'apan222222222222220?!?222222222222222222222222222220.

2013 SALES GUIDE

T> (>+)% %*+(*+ 8) I+(

@!)!$!

+ew Lealand

@( 8&ondon )cotland9

Italy

)pain

=rance

)wit5erland

$ustralia

)outh $frica

ubai

7hailand

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FUTURE OF INDIA?S FOREX INDUSTRY

-rowing at a compounded annual growth rate 8C$-R9 of about 01 per cent, India:s foreign

e4change earnings from the tourism sector are likely to reach @) .? billion 8bn9 in ./03

from the current level of about ./ bn, ape4 industry body $))*C#$M said today!

N-rowing at a C$-R of about seven per cent, the arrival of foreign tourists in India is likely

to cross / lakh mark by ./03 from the current level of about A/ lakh,O according to an

analysis of international tourist receipts and foreign tourist arrival in India conducted by 7he

$ssociated Chambers of Commerce and Industry of India 8$))*C#$M9 ahead of the Jorld

7ourism ay celebrations on )eptember .A!

Maharashtra, 7amil +adu, elhi, @ttar Pradesh 8@P9 and Rajasthan are top five destinations

attracting ma4imum number of foreign tourists and collectively account for A/ per cent of the

total number of foreign tourists visiting India! Maharashtra tops with ma4imum share of

about .3 per cent, followed by 7amil +adu 80A per cent9, elhi 800 per cent9, @P 80/ per

cent9 and Rajasthan 8seven per cent9, according to the analysis carried out by the

$))*C#$M %conomic Research Bureau 8$%RB9!

NMaking significant strides in the tourism sector, India has improved its share in international

tourism receipts during the course of past decade i!e! from about /!? per cent in .//. to

about 0!?3 per cent in ./0., besides India has also improved its world ranking in this regard

from 1Ath position in .//. to 0?th rank in ./0.,O said Mr !)! Rawat, secretary general of

$))*C#$M while releasing the chamber:s analysis!

NCentre should further push India:s tourism industry as its total contribution to India:s grossdomestic product 8-P9 is about ?!? per cent, its contribution to the total workforce is about

A!A per cent and accounts for over si4 per cent of the total investments,O said Mr Rawat!

NBesides, the foreign e4change earned through tourism is critical to combat the rising current

account deficit 8C$9 and as such the government should look to boost foreign tourist inflow

by easing its strict visa regime, entering into an agreement with various countries: through

embassies and high commissions to strengthen tourism cooperation aiming at destination

development, promotion, marketing and capacity building!O

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NImportance of tourism as one of the major foreign e4change earner can also be gauged from

the fact that during ./0., with over @) 0A bn earnings tourism emerged as India:s fourth

biggest foreign e4change earner after India:s principal e4ports of petroleum 8@) ?/! bn9,

gems and jewellery 8@) 1!1 bn9 and transport e


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7he international tourist arrivals has increased from over A/1 million 8mn9 in .//. to about

0,/13 mn in ./0., while at the $sia2Pacific level the tourist arrivals increased from over 0.1

mn to about .1 mn and in India the foreign tourist arrival grew from over .1 lakh to over ?3

lakh during this period!

7he @nited )tates of $merica 8@)$9 commands the highest share of about 0? per cent in the

total arrival of foreign tourists across India with over 0/ lakh tourists followed by the @nited

(ingdom 8@(9 800!D per cent share9 with over seven lakh tourists visiting India from that

country! Bangladesh 8seven per cent share9, )ri &anka 8!3 per cent share9 and Canada 81!

per cent share9 are amid top five countries with ma4imum foreign tourist arrivals in India!

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I*)6&*+

A=6* T.4( C/ PLC

7homas Cook -roup plc is one of the world:s leading leisure travel groups, with sales of over D billion and more than ./ million customers! 7he group is supported by c!.A,///employees and operates from 0A countries! It is number one or two in all its core markets!7homas Cook:s vision is to deliver trusted, personali5ed holiday e4periences through ourhigh2tech, high2touch strategy! Je will be there for our customers wherever, whenever andhowever they want to connect with us!

T.4( C/ #I+($ L*

7homas Cook 8India9 &td is the leading integrated travel and travel related financial servicescompany in the country offering a broad spectrum of services that include F)%+E&.(%, C)>)(*% T)(;%', MICE, L%+6)% T)(;%', I6)(&%, "+( @ P(>)*

%);+&%! 7he company set up its first office in India in 00!

7CI&:s footprint currently e4tends to over ./ locations 8 including .0 $irport counters 9 inDD cities across India, Mauritius ; )ri &anka and is supported by a strong partner network of01 -old Circle Partners and 0?3 Preferred )ales $gents in over 03/ cities across India!

7CI&:s Philosophy"

Providing Professional )ervice by %nsuring Personal Care

7CI&:s ision"

7o be the +o! 0 Company in all our Core businesses through Customer =ocus

7CI&:s Mission"

%>C%P7I*+$& )%RIC% from %>C%P7I*+$& P%*P&%

7homas Cook 8India9 &td! has established a transactional web, which offers customers full

self2booking capabilities and facilities for placing foreign e4change purchases orders! 7he

website, additionally offers information on the company, its business and its basket of

products and services!

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K%< A() ( A&.+%;%4%*

./01 " B%* T6) O>%)(*) - O6*=6 at the CNBC A!AA T)(;%' A()

./0. B%* C)>)(*% T)(;%' M((%4%* C4>(< =< !)' T)(;%' B)(

./0.201 C64%) S6>%)=)(

.//0020. N(*+(' T6)+4 A()

MILESTONES OF THOMAS COOK INDIA LTD

1881 Thomas. Cook & Son opens its frst

branch oce in !"mbai

1978Con#ersion o$ the branch oce into a

pri#ate %imite compan'

1983

(istin) o$ Thomas Cook *+nia, (imite

on -S p"rs"ant to an +nitia% /"b%ic

erin)

1998Commencement o$ perations in

!a"riti"s

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2000Commencement o$ operations in Sri

(anka

2005100 ac"isition b' "bai inancia%

*((C, o$ TC+!

2006

100 ac"isition o$ Tra#e% Corporation

*+nia, (imite b' Thomas Cook *+nia,

(imite

2007!er)er o$ (/ ore ith Thomas Cook

*+nia, (imite

2008

c"isition o$ 74.9 stake b' Thomas

Cook : an TC+! in Thomas Cook*+nia, (imite

2009

+ss"e o$ 50;650;699 shares thro")h a

ri)hts iss"e b' Thomas Cook *+nia,

(imite

2010

• ec"tion o$ a se#en 'eararran)ement ith


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2011

• Si)ne an a)reement $or

marketin) an istrib"tion o$ borer%ess prepai m"%tic"rrenc'

$orei)n echan)e car

• +ncorporation o$ TC =isa

Ser#ices*+nia, (imite in!aharashtra; a ho%%' one

S"bsiiar' o$ Tra#e% Corporation*+nia, (imite; hich is a 100

S"bsiiar' o$ the Compan'

2012

• c"isition o$ 76.81 stake b'airbri)e in Thomas Cook *+nia,

(imite $rom Thomas Cook : an TC+! an s"bse"ent

anno"ncement o$ open oer

• +ncorporation o$ Thomas Cook

(anka */ri#ate, (imite; a 100S"bsiiar' o$ the Compan'

• (a"nch o$ -orer%ess /repai

!"%tic"rrenc' orei)n chan)eCar

2013

c"isition o$ 74.85 stake b' Thomas

Cook *+nia, (imite in +> ?"man

Capita% So%"tions; a h"man reso"rces

so%"tions compan'

COMPETITORS:

C @ K+ 2 =ound in year 0A3 Co4 ; (ings is the leader of the travel industry

in India! Company:s Indian head


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domestic and international travel services which comprises of flight, train and bus

tickets, holiday packages, hotel reservations and other products and services! Y(*)( 2 Qatra!com is India:s premium tour operator offering all travel related services

and products! It is one of the best travel companies in India providing all the

information, availability, pricing details and bookings of domestic and international

hotels, packages, train, flights and car rentals across 11? cities! SOTC - India:s leading online travel company )*7C is (uoni India:s travel brand!

)*7C is among the top 0/ travel companies in India having e4pertise in %scorted

7ours, and omestic #olidays, =ree Individual 7ravel, Corporate tours, 7rade =air

7ours and Customi5ed #olidays! G+=+= - -oibibo!com a MI- -roup company established in .//D has overpowered

its competitors to emerge as one among the best travel companies in India! 7he one2

stop online travel company features various travel services and products which allows

the user to e4plore the largest range of destinations and hotels with the world:s

leading online travel company! E>%+( 2 %4pedia, Inc! enables travelers to buy air tickets, hotels and holiday

packages in any part of the world all from one place! @nlike other travel companies

in India %4pedia offers more than A3/// hotels and over 1/// holiday packages with

additional features wherein a user can check the map and weather forecasts of the

destination! C'%()*)+> 2 Cleartrip!com is an online travel company head


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PRODUCTS @ SER"ICES OFFERED TO STUDENTS AND MIGRANTS"

$! FOREIGN EXCHANGE

REMITANCE PRODUCTS"8)tudents2 =or @niversity $pplication 7esting =ees, 7uition =ees ; &iving %4penses

Migrants2 for Migration isa =ees, )kill 7est =ees etc ; &iving %4penses9

1 FOREIGN CURRENCY DEMAND DRAFTS #DD?$

P)&% F'

Customer comes to 7homas Cook with the re)&%+ *.% )%6%*, DD + .(% ;%) * *.% *6%* +44%+(*%'< #+*.+15 4+6*% 8

(>>'


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2 TT S!IFT !IRE TRANSFERS

P)&% F'

Customer comes to 7homas Cook with the re)&%% +44%+(*%'< ( *.% &6*4%) + (;+% *.(* *.% (46* 6' =%

)%4+**% +*.+ 2 .6) #( 4( 8 .6)$

D&64%* R%6+)%

Copy of any government I proof

*ffer letter from the university, if for fee remittance

*nly copy of a government I proof of the remitter is re


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P)&% F'

Customer comes to 7homas Cook with the re


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$lso, if you have unused amount in the card, you will be paid back according to the locked

e4change rate, and not the e4isting one!

GUIDELINES SET BY RBI FOR FOREX CARDS

=or private visits abroad, other than to +epal and Bhutan, vi5!, for tourism purposes, etc!, any

resident can obtain foreign e4change up to an aggregate amount of @) 0/,///, from an

$uthori5ed ealer, in any one financial year, on self2declaration basis, irrespective of the

number of visits undertaken during the year! 7his limit of @) 0/,/// or its e


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Category II! )tudents going abroad for studies are treated as +on2Resident Indians 8+RIs9

and are eligible for all the facilities available to +RIs under =%M$, 0DDD! %ducational and

other loans availed of by students as residents in India can be allowed to continue! $ student

holding +R* account may withdraw and repatriate up to @) 0 million per financial year

from his +R* account! 7he student may avail of an amount of @) 0/,/// or its e


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7he tie ups done by me during my internship"

$! IM7P %ducational Consultants!B! Milestone %dcomC! Princeton Review

O=9%&*+ .('+ + B6+% D%;%'>4%*:

Jhen a sales person demonstrates a feature, talks about a benefit or uses a sales closing

techni


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Borderless Prepaid Card is protected by Chip and PI+ and with -lobal %mergency

$ssistance for peace of mind S your 7homas Cook Borderless Prepaid Card may be the only

travel money card you:ll ever need!

S+4>'%

• Jithdraw local Currency from 0!D million MasterCard $7Ms worldwide

• Jelcomed online and at 10! million MasterCard merchants worldwide, with no

transaction fee

• +o bank account re


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S%&6)%

• Chip and PI+ protected

• +o link to your bank account

• .A -lobal %mergency $ssistance

• Back2up Card available

• =ree replacement of lost or stolen Cards

• %mergency cash, up to your available Card balance, subject to availability

7homas Cook Borderless Prepaid Card gives you all the security of travellers che


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D(*( C''%&*+:-

Primary ata collection was gathered from random respondents and customers specifically of

the brand!

Collection of primary data"

• Tuestionnaire

=or this purpose of study


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out! 7he highest number of people falls under the age category of 102/! +o respondents

were below the age of ./!

T0! !.(* + )%8%))% 4% 8 F)% .+'% *)(;%''+ (=)(

C:BB

CB+T-+T CB

TB=((BS C?D:

/B/+ BE CB

0 10 20 30 40 50 60 70 80

Prefered mode of forex

pre$ere moe o$ $ore

Respondents were asked

what is their preferred mode of foreign e4change when travelling abroad and it is a multiple

choice where respondents can choose more than one mode! $s shown in the graph

Creditebit card was the most preferred mode of foreign e4change and when asked the

reason they are"

0! )afety as it:s easy to carry and secure from theft!.! +o need to buy currency of destination country as the home currency gets converted

to the destination country currency during transaction!

7he second preferred mode of =ore4 is 7ravelers che


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42

58

AWARE OF FOREX CARD IS MUCH SAFER THAN CURRENCY AND TC

>.S


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Respondents were asked whether they would like to carry =*R%> through Prepaid =ore4

Card! $s the chart depicts"

A.F of the respondents are willing to carry fore4 through Prepaid =ore4 Card!

7his shows that travelers are ready to try new modes of carrying fore4 and when asked the

reason for willing to carry Prepaid =ore4 Card, the most common reason was they have

heard of Prepaid =ore4 Card of banks and =ore4 dealers and want to have a hands2on

e4perience!

78

22

WOULD YOU LIE TO CARRY FX THROUGH PREPAID CARD

>.S


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A.F of the respondents are unaware about this feature of BPC!

28

72

Do " &no$ 'PC (#rr)es * ("rren()es

>.S ( >+

Borderless Prepaid Card is protected by chip and pin technology which is new in India!

Jhen respondents were asked about the awareness of BPC protected by chip and pin the

results were"

ADF of the respondents replied that they don:t know about BPC protected by chip

and pin! *nly .0F of the respondents know that BPC is protected by chip and pin

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21

79

Do " &no$ t%#t 'PC )s +rote(ted ,! (%)+ #nd +)n

>.S


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020

40

60

80

100

120

Jhen asked the reason for well2known services the respondents mentioned"

$ds of International and domestic holidays are seen more often in media!

=riends and relatives refer 7homas Cook for their holiday needs!

S6%*+ * T.4( C/:

$! Competitors like $4is bank have rigorously started to campaign their Prepaid =ore4

7ravel card through )ocial media and 7 $ds! 7homas Cook can also have their ad

campaign to create awareness about Borderless Prepaid Card!

B! Customers who used Borderless Prepaid Card suggested that they need a secondary

card in case there is a situation like theft or misplace of primary card!

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C! Jhen asked the employees they suggested that more currencies like @$% irham,

Chinese Quan etc! should be added to the card, which has only currencies now!

! 7homas Cook does strategic tie2ups with overseas educational consultants, travel

agents and banks! But the follow up with those clients after tie2up is poor! 7homas

Cook has to take necessary steps to ensure relationship with B.B clients!

%! 7homas Cook has to come up with a repositioning campaign as most of the

respondents didn:t know 7homas Cook does foreign e4change! 7homas Cook major

revenue comes from foreign e4change!

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