CHAPTER-1

INTRODUCTION

GENERAL INTRODUCTION

Tourism is travel for recreational, leisure or business purposes. The World Tourism

Organization defines tourists as people "travelling to and staying in places outside their usual

environment for not more than one consecutive year for leisure, business and other purposes

Tourism has become a popular global leisure activity. In 2010, there were over 940 million

international tourist arrivals worldwide; representing a growth of 6.6% when compared to

2009.International tourism receipts grew to US$919 billion (€693 billion) in 2010,

corresponding to an increase in real terms of 4.7%. As a result of the late-2000s recession,

international travel demand suffered a strong slowdown from the second half of 2008 through

the end of 2009. After a 5% increase in the first half of 2008, growth in international tourist

arrivals moved into negative territory in the second half of 2008, and ended up only 2% for

the year, compared to a 7% increase in 2007. This negative trend intensified during 2009,

exacerbated in some countries due to the outbreak of the H1N1 influenza virus, resulting in a

worldwide decline of 4.2% in 2009 to 880 million international tourists’ arrivals, and a 5.7%

decline in international tourism receipts

Tourism is important and in some cases vital for many countries, such as France, Egypt,

Greece, Lebanon, Israel, the United States, the United Kingdom, Spain, Italy, and Thailand,

and many island nations, such as Mauritius, The Bahamas, Fiji, Maldives, Philippines and the

Seychelles. It brings in large amounts of income in payment for goods and services available,

contributing an estimated 5% to the worldwide gross domestic product (GDP), and it creates

opportunities for employment in the service industries associated with tourism. These service

industries include transportation services, such as airlines, cruise ships and taxicabs;

hospitality services, such as accommodations, including hotels and resorts; and entertainment

venues, such as amusement parks, casinos, shopping malls, music venues and theatres

OBJECTIVES OF THE STUDY

To examine critically the organizational structure of the company

To study and understand the various functional areas of the company

To identify internal and external factors that affect Strengths, Weaknesses,

Opportunities, and Threats to activities or operations

To understand and study the various functions of the departments in this organization.

To acquire knowledge about the various functions as well as managerial aspects of the

company.

To get an idea of the performance of the organization regarding the achievement of its

goals.

To assess the effectiveness of an organization.

To suggest effective measures based on the study

RESEARCH METHODOLOGY

Research methodology is the method by which the research project is carried out. It is a

way to systematically solve any research problem.

METHODS OF DATA COLLECTION

Information’s are collected from primary and secondary data

Primary data

Primary data are those data collected freshly and from the first time.

Primary data are collected through

Observation

Interview with officials and employees of the firm

Secondary data

Secondary data are those data which are already collected by someone else.

Secondary data are collected from

Website

Journals

Magazines

Library

Annual records

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure. It

is the blue print for data collection, measurement, and analysis.

The design of this organizational study is done in such that it provides

knowledge about TCIL in terms of its infrastructure, services offered by it, its working and

so on.

The Organizational Report explains how TCIL is functioning, its departments, its SWOT

analysis etc.

LIMITATIONS OF THE STUDY

The main limitation of the study was time factor. The duration of the study was one

month.

The study was done through conversation so there is a chance for personal bias.

Lack of co-operation from certain department due to their work load.

Secondary data available from various departmental manuals were out dated (the

manual are being updated).

Only limited information was provided on financial matters in order to maintain

secrecy of the company.

Difficulty in understanding the total company detail of Thomas Cook India Ltd as

the study was done only from one of its branch at Chennai.

CHAPTER-2

INDUSTRY PROFILE

INDUSTRY PROFILE

In 1941, Hunziker and Krapf defined tourism as people who travel "the sum of the

phenomena and relationships arising from the travel and stay of non-residents, insofar as they

do not lead to permanent residence and are not connected with any earning activity." In 1976,

the Tourism Society of England's definition was: "Tourism is the temporary, short-term

movement of people to destination outside the places where they normally live and work and

their activities during the stay at each destination. It includes movements for all purposes. In

1981, the International Association of Scientific Experts in Tourism defined tourism in terms

of particular activities selected by choice and undertaken outside the home.

In 1994, the United Nations classified three forms of tourism in its Recommendations on

Tourism Statistics:

Domestic tourism, involving residents of the given country traveling only within this

country.

Inbound tourism, involving non-residents traveling in the given country.

Outbound tourism, involving residents traveling in another country

HISTORY

Wealthy people have always travelled to distant parts of the world, to see great buildings,

works of art, learn new languages, and experience new cultures and to taste different cuisines.

Long ago, at the time of the Roman Republic, places such as Baiae were popular coastal

resorts for the rich. The word tourist was used by 1772 and tourism by 1811.In 1936, the

League of Nations defined foreign tourist as "someone traveling abroad for at least twenty-

four hours". Its successor, the United Nations, amended this definition in 1945, by including

a maximum stay of six months

Leisure travel

Leisure travel was associated with the Industrial Revolution in the United Kingdom – the first

European country to promote leisure time to the increasing industrial population. Initially,

this applied to the owners of the machinery of production, the economic oligarchy, the

factory owners and the traders. These comprised the new middle class. Cox & Kings was the

first official travel company to be formed in 1758.

The British origin of this new industry is reflected in many place names. In Nice, France, one

of the first and best-established holiday resorts on the French Riviera, the long esplanade

along the seafront is known to this day as the Promenade des Anglais; in many other historic

resorts in continental Europe, old, well-established palace hotels have names like the Hotel

Bristol, the Hotel Carlton or the Hotel Majestic – reflecting the dominance of English

customers.

Many leisure-oriented tourists travel to the tropics, both in the summer and winter. Places of

such nature often visited are: Bali in Indonesia, Colombia, Brazil, Cuba, the Dominican

Republic, Malaysia, Mexico the various Polynesian tropical islands, Queensland in Australia,

Thailand, Saint-Tropez and Cannes in France, Florida, Hawaii and Puerto Rico in the United

States, Saint Vincent and the Grenadines, Barbados, Trinidad and Tobago, Jamaica, St.Lucia

Saint Maarten, Saint Kitts and Nevis, The Bahamas, Anguilla, Antigua and Barbuda, Aruba,

Turks and Caicos Islands and Bermuda.

Winter tourism

Although it is acknowledged that the Swiss were not the inventors of skiing, it is well

documented that St. Moritz, Graubünden became the cradle of the developing winter tourism;

since that year of 1865 in St. Moritz,[24] when many daring hotel managers choose to risk

opening their hotels in winter. It was, however, only in the 1970s when winter tourism took

over the lead from summer tourism in many of the Swiss ski resorts. Even in winter, portions

of up to one third of all guests (depending on the location) consist of non-skiers.[25]

Major ski resorts are located mostly in the various European countries (e.g. Andorra, Austria,

Bulgaria, Bosnia-Herzegovina, Czech Republic, France, Germany, Iceland, Italy, Norway,

Latvia, Lithuania, Poland, Serbia, Sweden, Slovakia, Slovenia, Spain, Switzerland, Turkey),

Canada, the United States (e.g. Colorado, California, Utah, Montana, Wyoming, New York,

New Jersey, Michigan, Vermont, New Hampshire) New Zealand, Japan, South Korea, Chile,

and Argentina.

Mass tourism

Mass tourism could only have developed with the improvements in technology, allowing the

transport of large numbers of people in a short space of time to places of leisure interest, so

that greater numbers of people could begin to enjoy the benefits of leisure time.

In the United States, the first seaside resorts in the European style were at Atlantic City, New

Jersey and Long Island, New York.

In Continental Europe, early resorts included: Ostend, popularized by the people of Brussels;

Boulogne-sur-Mer (Pas-de-Calais) and Deauville (Calvados) for the Parisians; and

Heiligendamm, founded in 1793, as the first seaside resort on the Baltic Sea

Adjectival tourism

Adjectival tourism refers to the numerous niche or specialty travel forms of tourism that have

emerged over the years, each with its own adjective. Many of these have come into common

use by the tourism industry and academics. Others are emerging concepts that may or may

not gain popular usage. Examples of the more common niche tourism markets include:

Agritourism

Birth tourism

Culinary tourism

Cultural tourism

Extreme tourism

Geotourism

Heritage tourism

LGBT tourism

Medical tourism

Nautical tourism

Pop-culture tourism

Religious tourism

Slum tourism

Space tourism

GLOBAL SCENARIO

World tourism statistics and rankings

Most-visited countries by international tourist arrivals

In 2010, there were 940 million international tourist arrivals, with a growth of 6.6% as

compared to 2009.

The World Tourism Organization reports the following ten countries as the most visited in

terms of the number of international travellers. In 2010, China overtook Spain to become the

third most visited country.

RANK COUNTRY UNWTOREGIONALMARKET

INTERNATIONALTOURIST

ARRIVALS(2010)

INTERNATIONALTOURIST

ARRIVALS(2009)

CHANGE(2009 - 2010)

1 France Europe 76.8 million 76.8 million 0.00%

2United States

North America 59.7 million 55.0 million 8.70%

3 China Asia 55.7 million 50.9 million 9.40%

4 Spain Europe 52.7 million 52.2 million 1.00%

5 Italy Europe 43.6 million 43.2 million 0.90%

6United

Kingdom Europe 28.1 million 28.2 million -0.20%

7 Turkey Europe 27.0 million 25.5 million 5.90%

8 Germany Europe 26.9 million 24.2 million 10.90%

9 Malaysia Asia 24.6 million 23.6 million 3.90%

10 MexicoNorth

America 22.4 million 21.5 million 4.40%

International tourism receipts

International tourism receipts grew to US$919 billion (€693 billion) in 2010, corresponding

to an increase in real terms of 4.7% from 2009. The World Tourism Organization reports the

following countries as the top ten tourism earners for the year 2010, with the United States by

far the top earner

RANK COUNTRY UNWTOREGIONALMARKET

INTERNATIONALTOURISMRECIEPTS

1United States North America $103.5 billion

2Spain Europe $52.5 billion

3France Europe $46.3 billion

4 China Asia $45.8 billion

5Italy Europe $38.8 billion

6 Germany Europe $34.7 billion

7United Kingdom Europe $30.4 billion

8 Australia Oceania $30.1 billion

9 Hong Kong (China) Asia $23.0 billion

10 Turkey Europe $20.8 billion

International tourism expenditures

The World Tourism Organization reports the following countries as the top ten biggest

spenders on international tourism for the year 2010.

RANK COUNTRY UNWTOREGIONALMARKET

INTERNATIONALTOURISM

EXPENDITURES

10 Australia Oceania $22.5 billion

9 Russia Europe $26.5 billion

8 Italy Europe $27.1 billion

7 Japan Asia $27.9 billion

6 Canada North America $29.5 billion

5 France Europe $39.4 billion

4 United Kingdom Europe $48.6 billion

3 China Asia $54.9 billion

2 United States North America $75.5 billion

1 Germany Europe $77.7 billion

INDIAN SCENARIO

Tourism in India is the largest service industry, with a contribution of 6.23% to the national

GDP and 8.78% of the total employment in India. In 2010, total Foreign Tourist Arrivals

(FTA) in India were 5.78 million and India generated about 200 billion US dollars in 2008

and that is expected to increase to US$375.5 billion by 2018 at a 9.4% annual growth rate.

The majority of foreign tourists come from USA and UK. Kerala, Tamil Nadu, Delhi, Uttar

Pradesh and Rajasthan are the top five states to receive inbound tourists. Domestic tourism in

the same year was 740 million. 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, the Ministry consults and collaborates with other stakeholders in the sector including

various Central Ministries/agencies, the state governments and union territories and the

representatives of the private sector. Concerted efforts are being made to promote new forms

of tourism such as rural, cruise, medical and eco-tourism. The Ministry of Tourism also

maintains the India campaign.

According to World Travel and Tourism Council, India will be a tourism hot-spot from 2009

to 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, tourism revenues are expected to surge by 42% from 2007 to 2017. India's rich history

and its cultural and geographical diversity make its international tourism appeal large and

diverse. It presents heritage and cultural tourism along with medical, business and sports

tourism. India has one of the largest and fastest growing medical tourism sectors.

Size of the Industry: 5 million annual foreign tourist arrivals and 562 million domestic

tourism visits.

Geographical distribution: Hyderabad, Assam, Delhi, Goa, Shimla, Jammu and Kashmir,

Shimoga, Kerala, Ajanta, Puri , Amritsar, Jaipur , Chennai , Varanasi, Kolkata, etc

Output per annum: Increased 7 % per annum

Percentage in world market: 6.5% share

Market Capitalization: 6.23% of GDP

India in recent years has gained good exponential growth in the Tourism Industry. Today

India is the preferred destination for both overseas and domestic travelers. India provides the

facility to Tourists of international origin to understand and experience cultural diversity of

the country. According to Indian official estimates the tourism in India has outperformed the

global tourism industry in accordance with the growth, volume of foreign tourists & even the

revenue.

Tremendous growth in the Indian economy is the main reason for the growth in tourism in

India. Though the infrastructure is still a constraint it sustains the current growth and that the

government should invest in infrastructure like transport, accommodation, better roads, health

and hygiene, etc. for the growth of the industry has invested in new technology like CRM

tools and state of the art security systems.

India’s tourism industry is experienced a strong period of growth which is drived by the

burgeoning Indian middle class and high spending foreign tourists with coordinated

government campaigns to promote ‘Incredible India’

India’s travel and tourism industry is one of the most profitable industries in the country, and

also credited with contributing a substantial amount of foreign exchange. This is illustrated

by the fact that during 2010, 5.78 million tourists visited India and spent US $200 billion.

The tourism industry in India is substantial and vibrant, and the country is fast becoming a

major global destination. In other word Tourism in India is the largest service industry, with a

contribution of 6.23% to the national GDP and 8.78% of the total employment in India.

Several reasons are cited for the growth and prosperity of India’s travel and tourism industry.

The booming IT and outsourcing industry in growing number of the business trips are made

by foreigners to India, who will often add a weekend break or longer holiday to their trip.

Foreign tourists spend more in India than almost any other country worldwide.

Top leading companies in the industry are Thomas Cook, Cox and Kings, SOTC, RCI,

Emirates, Indian Airlines, British Airways and so on.

RECENT DEVELOPMENTS

There has been an up-trend in tourism over the last few decades, especially in Europe, where

international travel for short breaks is common. Tourists have a wide range of budgets and

tastes, and a wide variety of resorts and hotels have developed to cater for them. For example,

some people prefer simple beach vacations, while others want more specialized holidays,

quieter resorts, family-oriented holidays or niche market-targeted destination hotels.

The developments in technology and transport infrastructure, such as jumbo jets, low-cost

airlines and more accessible airports have made many types of tourism more affordable. On

April 28, 2009 The Guardian noted that "the WHO estimates that up to 500,000 people are

on planes at any time." There have also been changes in lifestyle, for example some

retirement-age people sustain year round tourism. This is facilitated by internet sales of

tourist services. Some sites have now started to offer dynamic packaging, in which an

inclusive price is quoted for a tailor-made package requested by the customer upon impulse.

There have been a few setbacks in tourism, such as the September 11 attacks and terrorist

threats to tourist destinations, such as in Bali and several European cities. Also, on December

26, 2004, a tsunami, caused by the 2004 Indian Ocean earthquake, hit the Asian countries on

the Indian Ocean, including the Maldives. Thousands of lives were lost including many

tourists. This, together with the vast clean-up operations, stopped or severely hampered

tourism in the area for a time.

The terms tourism and travel are sometimes used interchangeably. In this context, travel has a

similar definition to tourism, but implies a more purposeful journey. The terms tourism and

tourist are sometimes used pejoratively, to imply a shallow interest in the cultures or

locations visited by tourists.

Sustainable tourism

"Sustainable tourism is envisaged as leading to management of all resources in such a way

that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity,

essential ecological processes, biological diversity and life support systems." (World Tourism

Organization)

Sustainable development implies "meeting the needs of the present without compromising the

ability of future generations to meet their own needs." (World Commission on Environment

and Development, 1987)

Sustainable tourism can be seen as having regard to ecological and socio-cultural carrying

capacities and includes involving the community of the destination in tourism development

planning. It also involves integrating tourism to match current economic and growth policies

so as to mitigate some of the negative economic and social impacts of 'mass tourism'. Murphy

(1985) advocates the use of an 'ecological approach', to consider both 'plants' and 'people'

when implementing the sustainable tourism development process. This is in contrast to the

'boosterism' and 'economic' approaches to tourism planning, neither of which considers the

detrimental ecological or sociological impacts of tourism development to a destination

However, Butler questions the exposition of the term 'sustainable' in the context of tourism,

citing its ambiguity and stating that "the emerging sustainable development philosophy of the

1990s can be viewed as an extension of the broader realization that a preoccupation with

economic growth without regard to its social and environmental consequences is self-

defeating in the long term." Thus 'sustainable tourism development' is seldom considered as

an autonomous function of economic regeneration as separate from general economic growth

Ecotourism

Ecotourism, also known as ecological tourism, is responsible travel to fragile, pristine, and

usually protected areas that strives to be low impact and (often) small scale. It helps educate

the traveller; provides funds for conservation; directly benefits the economic development

and political empowerment of local communities; and fosters respect for different cultures

and for human rights.

Pro-poor tourism

Pro-poor tourism, which seeks to help the poorest people in developing countries, has been

receiving increasing attention by those involved in development; the issue has been addressed

through small-scale projects in local communities and through attempts by Ministries of

Tourism to attract large numbers of tourists. Research by the Overseas Development Institute

suggests that neither is the best way to encourage tourists' money to reach the poorest as only

25% or less (far less in some cases) ever reaches the poor; successful examples of money

reaching the poor include mountain-climbing in Tanzania and cultural tourism in Luang

Prabang, Laos.

Recession tourism

Recession tourism is a travel trend, which evolved by way of the world economic crisis.

Identified by American entrepreneur Matt Landau (2007), recession tourism is defined by

low-cost, high-value experiences taking place of once-popular generic retreats. Various

recession tourism hotspots have seen business boom during the recession thanks to

comparatively low costs of living and a slow world job market suggesting travelers are

elongating trips where their money travels further.

Medical tourism

When there is a significant price difference between countries for a given medical procedure,

particularly in Southeast Asia, India, Eastern Europe and where there are different regulatory

regimes, in relation to particular medical procedures (e.g. dentistry), traveling to take

advantage of the

Educational tourism

Educational tourism developed, because of the growing popularity of teaching and learning

of knowledge and the enhancing of technical competency outside of the classroom

environment. In educational tourism, the main focus of the tour or leisure activity includes

visiting another country to learn about the culture, such as in Student Exchange Programs and

Study Tours, or to work and apply skills learned inside the classroom in a different

environment, such as in the International Practicum Training Program.

Creative tourism

Creative tourism has existed as a form of cultural tourism, since the early beginnings of

tourism itself. Its European roots date back to the time of the Grand Tour, which saw the sons

of aristocratic families traveling for the purpose of mostly interactive, educational

experiences. More recently, creative tourism has been given its own name by Crispin

Raymond and Greg Richards, who as members of the Association for Tourism and Leisure

Education (ATLAS), have directed a number of projects for the European Commission,

including cultural and crafts tourism, known as sustainable tourism. They have defined

"creative tourism" as tourism related to the active participation of travellers in the culture of

the host community, through interactive workshops and informal learning experiences.[31]

Meanwhile, the concept of creative tourism has been picked up by high-profile organizations

such as UNESCO, who through the Creative Cities Network, have endorsed creative tourism

as an engaged, authentic experience that promotes an active understanding of the specific

cultural features of a place.

More recently, creative tourism has gained popularity as a form of cultural tourism, drawing

on active participation by travelers in the culture of the host communities they visit. Several

countries offer examples of this type of tourism development, including the United Kingdom,

the Bahamas, Jamaica, Spain, Italy and New Zealand.

Dark tourism

One emerging area of special interest has been identified by Lennon and Foley (2000)[32][33] as

"dark" tourism. This type of tourism involves visits to "dark" sites, such as battlegrounds,

scenes of horrific crimes or acts of genocide, for example: concentration camps. Dark tourism

remains a small niche market, driven by varied motivations, such as mourning, remembrance,

education, macabre curiosity or even entertainment. Its early origins are rooted in fairgrounds

and medieval fairs.

Doom tourism

Also known as "Tourism of Doom," or "Last Chance Tourism" this emerging trend involves

traveling to places that are environmentally or otherwise threatened (the ice caps of Mount

Kilimanjaro, the melting glaciers of Patagonia, The coral of the Great Barrier Reef) before it

is too late.

Identified by travel trade magazine Travel Age West editor-in-chief Kenneth Shapiro in 2007

and later explored in The New York Times, this type of tourism is believed to be on the rise.

Some see the trend as related to sustainable tourism or ecotourism due to the fact that a

number of these tourist destinations are considered threatened by environmental factors such

as global warming, over population or climate change. Others worry that travel to many of

these threatened locations increases an individual’s carbon footprint and only hastens

problems threatened locations are already facing.

PREDICTED SCENARIO OF INDUSTRY

The World Tourism Organization (UNWTO) forecasts that international tourism will

continue growing at the average annual rate of 4 %. With the advent of e-commerce, tourism

products have become one of the most traded items on the internet. Tourism products and

services have been made available through intermediaries, although on intermediaries from

both on-line and traditional shops.

It has been suggested there is a strong correlation between tourism expenditure per capita and

the degree to which countries play in the global context. Not only as a result of the important

economic contribution of the tourism industry, but also as an indicator of the degree of

confidence with which global citizens leverage the resources of the globe for the benefit of

their local economies. This is why any projections of growth in tourism may serve as an

indication of the relative influence that each country will exercise in the future.

Space tourism is expected to "take off" in the first quarter of the 21st century, although

compared with traditional destinations the number of tourists in orbit will remain low until

technologies such as a space elevator make space travel cheap.

Technological improvement is likely to make possible air-ship hotels, based either on solar-

powered airplanes or large dirigibles. Underwater hotels, such as Hydropolis, expected to

open in Dubai in 2009, will be built. On the ocean, tourists will be welcomed by ever larger

cruise ships and perhaps floating cities.

CHAPTER-3

COMPANY PROFILE

HISTORY

1841 - Thomas Cook arranged an 11-mile train journey for a motley group of

passengers from Leicester to Loughborough.

1881 - Thomas Cook started its India operations, with its first office being set up in

Kolkata under the aegis of Thomas Cook Overseas Limited

1978 - Thomas Cook (India) Ltd came into existence.

1983 - Makes its first public issue

2000 - Commenced its operations in Mauritius and also acquired the Sri Lanka business

from Thomas Cook Overseas Ltd, UK.

2006 – Acquired TCI and LKP Forex

2008 – Thomas Cook UK plc acquired Thomas Cook (India) Ltd

About Thomas Cook Group plc

• The oldest and most respected name in the travel business

• Thomas Cook Group plc was formed on 19 June 2007 by the merger of Thomas Cook

AG and MyTravel Group plc.

• One of the world’s leading leisure travel groups with

Sales of around £9 billion (€12 billion)

19 million customers

30,000 employees

Fleet of 97 aircrafts

Network of over 3,000 owned or franchised travel stores

A number of hotels and resort properties.

Operations in four regions:

UK & Ireland

Continental Europe (Germany, Austria, Belgium, France, the Netherlands, Poland,

Hungary, Slovenia and Slovakia)

Northern Europe (Sweden, Norway, Denmark, Finland)

North America (Canada and USA); and German airlines operating under the

Condor brand.

But right now Thomas Cook India Ltd is not under Thomas Cook Group plc.

Fairbridge Capital (Mauritius) Ltd has brought it . Fairbridge is a wholly owned

subsidiary of Fairfax Financial Holdings Ltd, a Toronto based financial services

holding company with a global presence in insurance and reinsurance and a portfolio

of assets in excess of $30 billion invested worldwide.

VISION & MISSION OF TCIL

VISION

We go further to make dreams come true.

MISSION

PRIDE

P-Pioneering our future

R-Respect for Individuals and United as one team

I-Integrity

D-Delighting the Customer

E-Excellence

Geographical Spread in India

Leh LadakhDharamsala (Mcleodganj)ChandigarhJallandharPatialaAmritsarLudhianaPhagwaraDehradun

DelhiGurgaonNoidaAgra

Varanasi

Lucknow

Guwahati

JaipurJaisalmerJodhpurPushkarUdaipurAhmedabadBhujJamnagarRajkotAnandBardoliNavsariSuratVadodara

Kolkata

Bhubaneshwar

Indore

Vijayawada

Hyderabad

Goa

Pune

Mumbai

Thane

Navi Mumbai

ChennaiBangaloreCochinTrivandrumKottayamPondicherryMaduraiMangaloreCoimbatoreCalicutMysore

142 locations in

53 cities

27 counters in 8

airports

1 Counter at

New Delhi Rail

Station

Patna

VizagAurangabad

OPERATIONAL STRENGTH

• Market Capitalization - 12.68 billion

• Over a million customers

GOVERNANCE OF THOMAS COOK (INDIA) LIMITED

Thomas Cook (India) Limited is a public Limited Company and is managed by a

Board of Directors. As a part of its Corporate Governance practices, TCIL has the

following sub-committees of the Board :

Audit Committee

Recruitment and Remuneration Committee

Share Transfer & Share Holders / Investors Grievance Committee

Sub-Committee

Management Committee

The Executive Committee (or EXECOM for short), which constitutes the Managing

Director, Executive Directors and Presidents & Heads of all Businesses and Support

Services, the Coos and VP – Finance & Controller, steers the strategic direction of the

Company.

All crucial decisions related to investments, new initiatives, critical market developments

and challenges, strategic direction of the company, budgeting and planning activities, key

achievements, developments in key projects, are all keenly tracked by the Execom

members in their periodic meetings. The Execom also plays a critical role in optimising

company resources at a company-wide level.

The Executive Committee members are:

Thomas Cook (India) Limited - Board of

Directors

Mr. Heinrich Ludger Heuberg Non-Executive Chairman

Mr. Madhavan Menon Managing Director

Mr. Vinayak Purohit Executive Director - Finance

Mr. Rakshit Desai Executive Director - Travel Services

Mr. Hoshang S. Billimoria Non -Executive Independent Director

Mr. A.V. Rajwade Non-Executive Independent Director

Mr. Dilip De Non-Executive Independent Director

Mr. Ramesh Savoor Non-Executive Independent Director

Mr. Mahendra Kumar Sharma Non-Executive Independent Director

Mr. Krishnan Ramachandran Non-Executive Independent Director

Mr. Madhavan Menon, Managing Director

Mr. Rakshit Desai, Executive Director-Travel Services

Mr. Vinayak Purohit, Executive Director – Finance

Dr. D. Prasanth Nair, President & Head – Human Resources & Special Projects

Ms. Nalini Gupta, President & Head – Marketing

Mr. Amitabh Pandey, President & Head – E Business

Mr. R. Kenkare, President & Head – Legal & Company Secretary

Mr. Anil Srinivasan, COO – Visa & Passport Services & Sri Lanka Operations

Mr. Vishal Suri, COO – Leisure Outbound

Mr. Sunit Suri – COO – Leisure Travel (Inbound)

Mr. Debasis Nandy, Vice President – Finance & Controller

Key Measures Initiated / Planned by the Company

Service Quality & Customer Care Initiatives

Initiatives in HR & Center of Learning

Business Initiatives :

U Special

MICE

E Business

Visa Services

Future Plans

Organic

• Expand into new locations, add new products, cross sell across businesses

Inorganic

• Acquire relevant entities to give fillip to product expansion

• Acquisitions to help growth in other businesses

Products

• Launch products that are extensions of current operation

• Research and innovative offerings in the travel sector

Value Chain Margins

• Partnerships with suppliers to add customer values

CORE BUSINESSES

Foreign Exchange

Travel and travel related services

Leisure Travel – Inbound

Leisure Travel Outbound &

Domestic Travel

Corporate Travel

Financial Services – Insurance, Credit Cards

E Business - Travel Portal & Call Centre

Visa & Passport Services

FOREIGN EXCHANGE

TCIL is one of the India’s largest foreign exchange dealers in both wholesale and retail

segments of the market. It is one of the few non-banking institutions to have been granted an

Authorised Dealers license to deal in foreign exchange by the Reserve Bank of India. As

Authorised Dealers in foreign exchange it provides foreign exchange and payment solutions

for leisure and business travellers, students going abroad for higher studies, people travelling

for employment, medical treatment, emigration etc. The merger of LKP Forex with the

Company gives an opportunity to grow business with expanded product portfolio through

enhanced network.

Forex Business Model

The Company 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:

1. Retail purchases of foreign currencies and travellers cheques.

2. Bulk purchases/sales of foreign currencies from/to authorized dealers, money changers and

franchisees.

3. Release / remittance of foreign exchange for the following activities:

a. Private Visits

b. Remittance by tour operators/travel agents to overseas agents/principals/hotels

c. Business Travel (including for Central and State Government officials)

d. Fee for participation in global conferences and specialized training

e. Payment of crew wages

f. Film Shooting

g. Medical Treatment abroad

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, TCIL is a member of the Foreign Exchange Dealers

Association of India. Its Forex business can be classified into two segments – Retail and Bulk

(Wholesale) business. Retail business relates to providing foreign exchange services to

travelers visiting India or going out of India. Bulk business comprises providing currency

buying and selling services to institutions like banks, FFMCs, RMCs etc. The Company

consolidates the offloaded currencies at a central place and then physically exports them to

banks in other parts of the World to receive credit for the same in the company’s NOSTRO

accounts maintained with them. TCIL earns its revenue from the spread between the buy and

sell rate for forex and commissions for its services.

Customers of Forex

Individual travellers

Foreign exchange for leisure outbound travellers

Foreign Exchange for migration, employment, medical treatment

Remittances for students studying abroad, conferences, etc.

Encashment services & inward remittances for inbound tourists visiting India, Non Resident / Resident Indians

Corporates

Travel money and remittances for business travelers

On site support for inbound tour conferences

Film production houses travelling for shoots abroad

Remittances of tour proceeds for tour operators

Jaipur

Jalandhar

Trivandrum

Cochin

Goa

VadodaraAhmedabad

Delhi

Chennai

Kolkata

Pune

Bangalore

HyderabadMumbai

Chandigarh

Gurgaon

Agra

Bhubaneshwar

Vizag

IndoreJaipur

Trivandrum

Cochin

Goa

VadodaraAhmedabad

Chennai

Pune

Bangalore

HyderabadMumbai

Gurgaon

IndoreIndia

Over 120 locations in 52

cities

Sri Lanka & Mauritius

City locations in Sri Lanka

& Mauritius

Includes forex bureaux at

the Intl. Airport

NETWORK

Delhi

Institutions

Bulk purchase and sale of foreign currencies from /to Banks and Money Changers

Products and Services

Bank Notes in 26 currencies

Travelers Cheques in 6 currencies

American Express Travelers Cheques accepted worldwide.

Pre Paid Cards – Global Money and CitiWorld Money and Axis Cards

Cash access from 1 million VISA/VISA Electron ATMs and POS

acceptance.

Drafts

Issued in 7 currencies.

SWIFT wire transfers in 7 currencies

Funds remitted to credit of account or collected from network of correspondent banks worldwide

MoneyGram inward money transfers

Cash Advances against International Credit Cards issued overseas

TRAVEL AND TRAVEL RELATED SERVICES

i. LEISURE TRAVEL (INBOUND)

Inbound Tourist refers to tourists/ travellers coming to India.

Inbound tour operators promote India as a tourist destination. TCIL organize tours for foreign

tourist visiting India. They organize Individual tours, Group tours and Conferences. Various

services offered in inbound business are accommodation, ticketing, roundtrip, and 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. They also act as a ground handling agent

domestically for Charter flights coming from international destinations. Also offer

customized individual holidays, group escorted holidays, MICE (Meeting, Incentive,

Conference and Exhibition) arrangements and emergency medical assistance. Inbound

travellers handled by our Company are primarily from Europe and USA. The company enters

into business arrangements with the foreign tour operators for servicing their customers when

they arrive in India.

Inbound Servicesoffered

Accommodation

Local excursions

Transportation

Meet & Greet

Special Themes Tour manager/ Guide

Reconfirmation of Air Seats

Ticketing

Foreign Exchange Tours

ii. LEISURE TRAVEL (OUTBOUND & DOMESTIC )

Outbound tourist refers to Indian Nationals travelling out of India.

The Company offers outbound tour packages across approximately 50 Countries. Outbound

packages include various services like air tickets, visa, travel insurance, airport transfer, hotel

accommodation, sightseeing, etc.

Outbound 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

INBOUND DEPARTMENTSSALES & MARKETING

( Delhi, Mumbai & Goa)

Travel agentsWholesalers

Charters Cruises Internet

Contracting Product Development

OPERATIONS( all the 25 offices)

FIT, Groups, SeriesMeet & Greet

Booking all servicesReconfirming services

Issuing vouchersInvoicing and collection

File closing

CRUISE PRODUCTS THAT TCIL OFFER

AS TCI and Thomas Cook

o Thomas Cook – PSA

• Star Cruises (5 Ships)

• Norwegian Cruise Lines (14 Ships)

• Viking River Cruises (22 Ships)

• Disney Cruise Lines (02 Ships)

o TCI - PSA

• Costa Cruises (14 Ships)

The other cruise lines that we promote

Discover the World Marketing

• Carnival Cruise Lines (16 Ships)

Interglobe Cruises

• Cunard Cruises (2 Ships)

• Princess Cruises (17 Ships)

• Ocean Village Cruises (2 Ships)

• P & O Cruises UK (7 Ships)

• P & O Cruises Australia (2 Ships)

• Yachts of Seabourn (3 Ships)

iii. DOMESTIC LEISURE

Domestic Travel refers to Indian Nationals (Tourists, Business Travellers, Students, Leisure

travellers) travelling 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, 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.

Destinations featured in this segment are: -

Historical & Cultural Holidays – Agra, Aurangabad, Hampi, Hyderabad,

Mysore, Udaipur, Jaipur, Jodhpur, Kathmandu, Gangtok, Bhutan etc

Heritage Holidays – Jaipur, Bikaner, Jodhpur, Khimsar, Gwalior, Orchha,

Khajuraho, Kawardha, Chettinad, etc

Beach Holidays – Diu, Tarkarli, Goa, Varkala, Lakshadweep, Andaman,

Covelong, Vizag, Puri etc

Hill Stations – Srinagar, Pahalgam, Shimla, Manali, Dalhousie,

Mussoorie, Nainital, Mahabaleshwar, Matheran, Pachmarhi, Mount Abu,

Darjeeling, Ooty, Kodaikanal, Coorg, Munnar, Wayanad etc.

Pilgrim Holidays - Haridwar, Ajmer, Shirdi, Vaishnodevi, Tirupati,

Palitana, Rameshwar, Dwarka, Do Dham, Char Dham, Amarnath Yatra etc

Adventure Holidays – Gulmarg, Shimla, Manali, Dharamshala, Auli,

Rishikesh, Pokhara, etc activity based locations.

Wildlife Safaris – Corbett, Ranthambore, Chitwan, Kaziranga, Kanha,

Bandhavgarh, Thekkdy, Pench, Nagarhole, Bandipur, etc

Wellness Holidays – Rishikesh, Kovalam, Kumarakom, Goa, Kolkata,

Mahabaleshwar, etc.

iv. CORPORATE TRAVEL

Thomas Cook (India) effectively “manages” the travel budgets of several large national

and multinational companies. Handing higher volumes results in effectively able to

negotiate preferential rates with principals, consequences leading to meaningful savings

for the company’s corporate clients. For personalized service at corporate doorsteps,

Thomas Cook sets up ‘On-sites’, which are CRS-linked and offers comprehensive end to

end travel solutions

Servicing Model of Corporate Travel

Implant Servicing

Servicing from the customers’ premises

Dedicated back office servicing : Service Excellence Centre (SEC) a state of the art

centralized fulfillment

Dedicated lines and staff to service a particular Corporate

Has capability for 24 X 7 fulfillment of all travel services

Back office functionalities

International

Domestic

Visas

Revenue streams of Corporate Travel

Fee

IATA Commission from airline

Management Fee from customer

Transaction fee from customer

Cost plus models paid by customer

Commission from Hotel and Car bookings

Productivity Linked Bonus from preferred carriers

GDS Revenues from Central Reservation System

Tour packages offered by the company

International Group Tours

Dubai package

Singapore package

Hong Kong package

Thailand package

Australia package

Africa package

USA package

Europe package

International Customised Tours

China tour

Malaysia tour

Maldives tour

Switzerland tour

USA tour

Europe tour

Srilanka tour

Thailand tour

Packages in India

Kashmir tour

Himachal tour

Uttarakhand tour

Kerala tour

Chardham tour

Rajasthan tour

Goa tour

Vaishnodevi tour

Ladhak tour

FINANCIAL SERVICES

1. 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:

“TravelCare” (Overseas Travel Insurance) - Travel Care offers security for

travelers which covers travel insurance, hospitalization, loss of documents,

Repatriation of Remains, emergency Cash Advance or any

other crises which requires assistance.

“FamilyCare” - An Overseas travel Insurance cover for entire family of 4-5 persons

with single overall sum insured.

“ScholarCare” (Overseas Student Insurance) – A customized product for all

students studying abroadwhich ensures timely assistance in case of unexpected

surprises in a foreign land.

CorporateCare (Overseas Corporate Travel Insurance) - For Companies where

employees travel abroad frequently on work, there are customized group policies. All

foreign trips undertaken by employees in a year are covered under a single policy.

TCISL provides all insurance products at all our outlets, leveraging on ability to cross

sell insurance products to our Travel and Forex customers.

2. Thomas Cook Credit Card

The Company has recently launched the Thomas Cook Credit card in association with ICICI

Bank Limited. The 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.

Salient Features:

Thomas Cook Titanium MasterCard features in brief:

• The card has been specially designed for frequent travellers.

• Attractive 6 reward points for each spend of Rs.100 on the card on Thomas Cook

products

o Free Delivery of Foreign Exchange within city limits

• Rs 5000 discount on any Thomas Cook GIT product

• 1 Free Air ticket to a domestic destination on the issuance of new card

• Complimentary travel inconvenience insurance policy

• Access to MasterCard travel lounges at Airports across the world

• 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.

• Positioned as a comprehensive travel card

• Assured gifts for the joining fees – free air ticket / discount voucher

• Higher reward points for card swipes at Our Company’s outlets

• Redemption of reward points against Thomas Cook products encouraged

E BUSINESS

The B2C (Business to Customer) portal includes:

o Domestic and international flight bookings

o LCCs - Spicejet, Indigo and GoAir

o international hotel booking

o Insurance

o Rail Europe

o Costa Cruises

o Online Payments options –credit cards, ebanking ,cash cards

For the GCPs and PSAs, B2B (Business to Business) functionalities have been added

o Payment through credit, invoicing etc.,

Added functionalities and processes for staff use and direct accountal into SAP

o Refined the processes to suit operational conditions, like counter receipts,

etc.,

o Avoided accountal through FOS

Added functionalities for small and medium scale corporates with self booking and

backend support functionalities

o Group and Users Management, Booking and invoicing from support team.

VISA & PASSPORTS SERVICES

Presence in major cities – Delhi, Mumbai, Chennai, Kolkata, Bangalore.

Automation – has ready knowledge centre and visa tracker.

Team – 50 resources across country.

Offers wide range of services.

SERVICES ON OFFER

Visa Consultation and Facilitation

Meet and Assist Services

(For Embassies where Personal Presence is required)

Passports- processing for New, Renewal, Change of Address and other amendments

in the passport

Attestation and authentication of documents

Translation of documents

Meet and Assist for Foreigner’s Regional Registration Office (FRRO)

OUR NETWORK IN INDIA

Mumbai

Jaipur

Jallandhar

Trivandrum

Cochin

Goa

Vadodara

Ahmedabad

Delhi

Chennai

Kolkata

Pune

Bangalore

Hyderabad

Chandigarh

Gurgoan

Bhubaneshwar

Vizag

Indore

Noida

Delhi

Kolkata

Mumbai

Bangalore

Chennai

Applications from:

ECSELS HOLIDAYS

Incomplete

CompleteNot

accepted and returned

Accepted

Handover to the Visa Dept.

Documents are Scrutinized in detail for correction and submitted to the Embassy / VFS Centre

Thomas Cook Visa

Team

Thomas Cook Visa

Team

Visa Department

Visa Department

Charge levied

Fee receipt generated

Passport dispatched to the client

Clients

Clients

Embassy / High Commission

Embassy / High Commission

Field Executive / Courier boy

Visa Obtained / Reject

Visa Obtained / Reject

Yes

Due to Incomplete document / Fresh document

Due to Incomplete document / Fresh document

No

PROCESS FLOW CHART

CHAPTER-4

DEPARTMENT ANALYSIS

Human Resource Department

HR department is one of the most important departments in Thomas Cook. It is headed by

Mr. Maharuk Dosabai. HR department has two sub-divisions. One is remuneration and the

other is Compensation. The remuneration division takes care of the salary and payroll of

employees and the compensation division takes care of the compensation part. An important

function of HR department is recruitment. In TCIL the recruitment takes place mainly

through consultancy referrals, employee referrals, and from campus. They put up

advertisements in news papers and other Medias and encourage walk-ins. Thomas Cook also

conduct job fairs as a part of their recruitment. Employee communication is another function

of HR. It is the HR department which communicates to all the employees if there is any

change in structure of the organization, process change, status of employees, performance,

future plan etc. They also organize games, festivals, outdoor events, role of honors etc for

employees.

Service Quality Team

Service Quality team is another department under HR. This team looks into the service

quality of all the businesses of TCIL.

It takes care of the direct customer interaction in outbound and inbound counters.

The inbound counters take feedback from customers, analyze them and make

improvements.

It imparts training to forex counters for improving their behavior, gestures, talks to

customers.

Centre of Learning

It has tie up with Indian Institute of Tourism and Travel management. They provide training

and development to new employees, new products etc. It is headed by Farah Muncherjie.

They also organize some programs like educational programs for permanent employees. Now

they are planning to segregate it as a different team all together.

Finance department

Finance department controls the finance of the organization. It mainly deals with the non-

operating income of the organization. It looks into the cost control measures. If the utility bill

is going high in the organization, it analyses where it is going high and then controls it.

For example the utility bill may be going high due to the unnecessary use of photocopy

machines. Then they analyse the problems and checks it out and controls it by informing the

respected branch.

All financial obligations made by employees (eg. Sales people) are taken care of by the

finance department. It is the finance team who decides the bad debts etc. they also does the

financial analysis of the company when they plan to acquire it.

Balance Sheet of Thomas Cook (India)

----------------- in Rs. Cr. -------------------

  Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Sources Of Funds        

Total Share Capital 21.79 21.77 21.74 121.67 119.95

Equity Share Capital 21.2 21.18 21.14 16.08 16.08

Share Application Money 0 0 0 0 0

Preference Share Capital 0.59 0.59 0.59 105.59 103.88

Reserves 332.84 284.61 250.79 75.71 56.01

Revaluation Reserves 0 0 0 0 0

Networth 354.63 306.38 272.53 197.38 175.96

Secured Loans 2.21 1.98 0.48 0.01 0.07

Unsecured Loans 225.93 196.75 167.1 257.4 283.17

Total Debt 228.14 198.73 167.58 257.41 283.24

Total Liabilities 582.77 505.11 440.11 454.79 459.2

  Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Application Of Funds        

Gross Block 141.39 136.4 123.79 114.92 105.71

Less: Accum. Depreciation 71.41 70.87 63.41 55.95 49.93

Net Block 69.98 65.53 60.38 58.97 55.78

Capital Work in Progress 2.48 5.27 2.27 1.04 3.77

Investments 197.42 197.41 192.54 192.54 192.67

Inventories 0 0 0 0 0

Sundry Debtors 193.3 186.33 172.12 105.69 140.31

Cash and Bank Balance 245.53 107.13 116.85 131.75 143.91

Total Current Assets 438.83 293.46 288.97 237.44 284.22

Loans and Advances 118.58 126.8 91.4 91.12 81.02

Fixed Deposits 0.82 1.25 1.26 1.24 2

Total CA, Loans & Advances 558.23 421.51 381.63 329.8 367.24

Deffered Credit 0 0 0 0 0

Current Liabilities 230.96 173.58 184.73 113.2 143.17

Provisions 14.36 11.04 11.98 14.36 17.1

Total CL & Provisions 245.32 184.62 196.71 127.56 160.27

Net Current Assets 312.91 236.89 184.92 202.24 206.97

Miscellaneous Expenses 0 0 0 0 0

Total Assets 582.79 505.1 440.11 454.79 459.19

Contingent Liabilities 136.27 74.52 41.06 28.95 12.03

Book Value (Rs) 16.7 14.44 12.86 5.71 4.48

Profit & Loss account of Thomas Cook (India)

------------------- in Rs. Cr. -------------------

 

   Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Income

Sales Turnover 325.26 267.36 243.09 274.76 238.2

Excise Duty 0 0 0 0 0

Net Sales 325.26 267.36 243.09 274.76 238.2

Other Income 15.49 15.15 -0.14 -2.31 6.11

Stock Adjustments 0 0 0 0 0

Total Income 340.75 282.51 242.95 272.45 244.31

Expenditure        

Raw Materials 0 0 0 0 0

Power & Fuel Cost 0 0 0 0 0

Employee Cost 121.8 98.43 83.26 81.53 63.23

Other Manufacturing Expenses 0 0 0 0 0

Selling and Admin Expenses 83.93 72.05 82.61 83.64 86

Miscellaneous Expenses 26.71 22.85 18.83 19.62 19.96

Preoperative Exp Capitalised 0 0 0 0 0

Total Expenses 232.44 193.33 184.7 184.79 169.19

  Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Operating profit 92.82 74.03 58.39 89.97 69.01

PBDIT 108.31 89.18 58.25 87.66 75.12

Interest 22.34 21.27 20.09 35.02 31.77

PBDT 85.97 67.91 38.16 52.64 43.35

Depreciation 11.47 11.59 9.85 8.88 7.86

Other Written Off 0 0 0 0 0

Profit Before Tax 74.5 56.32 28.31 43.76 35.49

Extra-ordinary items 8.37 6.82 5.8 6.69 3.8

PBT (Post Extra-ord Items) 82.87 63.14 34.11 50.45 39.29

Tax 26.96 21.61 11.94 20.26 5.87

Reported Net Profit 55.91 41.54 22.16 33.39 33.41

Total Value Addition 232.43 193.33 184.71 184.79 169.2

Preference Dividend 0 0 0.08 1.35 4.32

Equity Dividend 7.95 7.94 7.93 7.93 8.04

Corporate Dividend Tax 1.23 1.32 1.36 1.58 2.1

Per share data (annualised)        

Shares in issue (lakhs) 2,120.07 2,118.08 2,114.47 1,607.96 1,607.82

Earning Per Share (Rs) 2.64 1.96 1.04 1.99 1.81

Equity Dividend (%) 37.5 37.5 37.5 37.5 50

Book Value (Rs) 16.7 14.44 12.86 5.71 4.48

'11 '10 '09 '08 '070

50

100

150

200

250

300

350

Sales Turnover

Sales Turnover

This graph indicates that the sales turnover has increased from the year 2007 to 2008. Then a slight decrease in the year 2009 after which it shows a constant increase till 2011.

'11 '10 '09 '08 '070

10

20

30

40

50

60

Net Profit

Reported Net Profit

As that of the sales turnover, there is a decrease in profit in the year 2009 after which it shows a huge increase in the years 2010 and 2011. From this graph it’s clear that Thomas Cook India Ltd is in its growth face.

'11 '10 '09 '08 '070

0.5

1

1.5

2

2.5

3

Earning Per Share (Rs)

Earning Per Share (Rs)

'11 '10 '09 '08 '070

10

20

30

40

50

60

Equity Dividend (%)

Equity Dividend (%)

The equity dividend is highest in the year 2007 and then it’s almost the same in the

consecutive years till 2011. Though in 2011 there is high profit, the equity dividend has not

increased as the company had to spend lot of cost on its expansion.

Administration department

Administration department looks into the administration of an organization. In Thomas Cook

India Ltd the Admin head is Sukumar Suresh. This department looks into the day to day

office functions of the company. These functions include checking out the electrical

problems, seating for new employees, printing of visiting cards, proper working of toilets,

maintaining office infrastructure, etc. They also look into the out sourcing of construction of

building to vendors, check it etc.

Marketing department

Marketing department looks into the marketing of products and services of the company.

TCIL have separate marketing team for each division. The marketing team under outbound

department looks into the outbound marketing strategies. The marketing team under inbound

department looks into the inbound marketing strategies.

The marketing team finds out the apt time and apt channel for promotional activities. The

marketing team decides upon whether there is a need for separate budget for advertisements.

They also decide upon when where why to promote etc. TCIL uses print and visual Medias

to advertise. In print media they usually go for pamphlets in newspapers, leaflets, samples in

some offices, prints on envelopes for forex currencies etc. The marketing team under leisure

travel uses the strategy of distributing caps, t-shirts, bags with TCIL logo to the tourists.

Other than these departments there are separate departments for leisure travel inbound,

leisure travel outbound and forex whose functions are already explained in last chapter.

CHAPTER-5

SWOT ANALYSIS

SWOT ANALYSIS

Strength

Integrated provider of travel & forex related services

Leadership & highly differentiated presence in forex market

Established institutional customer base

Strong domestic retail presence & growing overseas presence

Strong brand equity

High integrity and transparency levels

Customer focus

Strong information technology infrastructure set-up

Strategic Alliances / Tie Ups

Weakness

Credit to corporate

Lack of effective advertising through mass media.Opportunity

Advertising through mass media

Opening branches in thirunelveli

Forex counter at Coimbatore

Threats

Global recession

Competitors

STRENGTH

Integrated provider of travel & forex related services

TCIL is an integrated provider of travel & forex related services such as travel

management, airline ticket and hotel booking, package tours, travel insurance,

emergency services and providing forex to domestic and foreign tourists and

business travellers and forex services to other forex dealers as well.

Provide ‘one stop shop’ for all the travel requirements from visa to ticketing to

holidays to insurance to foreign exchange under one roof. This cross selling of

products facilitates the customers, thereby, making it their unique selling

proposition.

Leadership & highly differentiated presence in forex market

TCIL is one of the few non-banking institutions to have been granted Authorized

Dealer (AD Category II) license by the RBI.

AD license, combined with strong network, helps to offer the widest possible

product suite in a cost efficient manner.

Merger of LKP Forex has further strengthened their leadership as a Foreign

Exchange service provider.

Established institutional customer base

Country’s top public and private sector banks are customers of their wholesale

forex services

Ability to service both institutional and retail customers

Provides travel management services for business travel and services to leading

corporates including Multi National Companies in India

Strong domestic retail presence & growing overseas presence

Pan-India footprint for selling all products through a single customer interface –

presence in around 160 locations in 55 cities in India.

Approximately 200 Preferred Sales Agents in India

Forex desks at strategic locations such as airport terminals

Presence in 13 countries through subsidiaries

Strong brand equity

TCIL have a strong corporate image and brand equity

The Company has been recognized as a strong brand both locally and

internationally.

Enjoy leadership positions in all areas of operations and are a benchmark setter for

others in the industry.

TCIL operates in service industry wherein the biggest asset of the Company is the

quality of its human resources.

The Company is managed by Directors who are qualified and are having significant

experience in the industry. The Board of Directors is supported by a team of

professionals with several years of relevant experience.

High integrity and transparency levels

TCIL aims at maintaining high level of Corporate Governance - fairness,

transparency, accountability and responsibility in the functioning of the Company

with the ultimate objective of realizing and enhancing shareholders value.

The Company has in place Anti Money Laundering Policy to ensure that all internal

and statutory guidelines are adhered to.

Periodic audits are conducted to minimize risks and eliminate areas of concern.

Internal control system is in place to continuously monitor transactions.

Customer focus

TCIL lays great emphasis on customer service and providing quality care to

customers. It works towards providing 100% satisfaction to the customers. Service

quality cell has been set up to ensure customer retention and repeat business.

Strong information technology infrastructure set-up

The Company has a strong Information Technology infrastructure base with Wide

Area Network connectivity covering all locations, to support its operations across

the country.

All hardwares are installed with anti-virus software to ensure that a virus-free and

secured network is maintained.

Strategic Alliances / Tie Ups

Partnership and collaborations include those with State Bank of India, Citibank,

JTB Corp., Cosmos, EuRail, Star Cruises, Cunard and others as also an alliance

with Tata-AIG General Insurance Company Limited for underwriting of travel

insurance and with ICICI Bank for issuance of co-branded credit cards

The Company has executed an International Money Transfer Agreement with

MoneyGram Payment Systems, Inc whereby our Company is authorised by

MoneyGram to provide Money Transfer Services.

WEAKNESS

Credit to corporate

TCIL gives a lot of credit to corporate. The credits given are now unable to recover.

Lack of effective advertising through mass media.

Advertising through mass media is the most effective way to reach millions of

people. TCIL lacks effective advertising.

OPPORTUNITY

Advertising through mass media

Another opportunity for TCIL is advertising through mass media.

Opening branches in Thirunelveli

Thirunelveli is a high potential area. But TCIL does not have branches there. Opening

branches there is of big opportunity to TCIL.

Forex counter at Coimbatore

TCIL is trying hard to win auctions to open a forex counter at Coimbatore airport.

Opening up counter can generate a good revenue.

THREATS

Global recession

Global recession is one major threat faced by Thomas Cook. When there is recession

one first thing people stop is travelling.

Competitors

Another threat of Thomas Cook is their competitors such as Cox & Kings, SOTC, and

RCI etc

CHAPTER-6

FINDINGS, SUGGESTIONS AND

CONCLUSION

FINDINGS

TCIL earns high revenue from both Forex and LT. But when comparing the number

of employees in both these departments, Forex has more employees than LT. Thus LT

is actually the high revenue earning business for TCIL.

There is no airport counter for Forex in Coimbatore where there are potential

customers. It’s through auctions counters are taken in. TCIL fail to win auctions in

several potential areas.

TCIL has given a huge amount of credits to corporate which is now unable to be

recovered.

Thirunelveli is a high potential area. But TCIL does not have branches there.

SUGGESTIONS TCIL should use its strategies to open airport counters at potential areas like

Coimbatore.

TCIL should find ways to recover the credits given to the corporate.

TCIL should open up a branch at Thirunelveli.

Thomas Cook can bring in its own cruise for travel.

CONCLUSION

Thomas cook with its experience of 200 years is ruling in the field of travel and travel related

business. It is well trusted for its services globally. It is internationally branded. It has lots of

patents in its service area. It is well accepted and most preferred by the customers as it

provides one stop shop for all travel related services.

Having my organizational study in Thomas cook was a great experience. I got outlook of

what the company is, what are its businesses and how it is functioning. It was a very good

exposure for me as I could share my views with well-known persons.

The study also focused on attributes which help the organization to tackle the intense

competitive milieu of the everyday world. The SWOT analysis proved that Thomas Cook

India Ltd could easily overcome the threats with its strength.

BIBLIOGRAPHY

Company induction manual Company brochures Company leaflets Company journals and magazines http://www.thomascook.in http://en.wikipedia.org/wiki/Thomas_Cook http://www.forex4you.in

APPENDIX

LIST OF ABBREVATIONS

TCIL Thomas Cook India Ltd

FOREX Foreign Exchange

LT Leisure Travel

EXECOM Executive Committee

MICE Meetings Incentives Conference Events

PSA Preferred Sales Agent

GSA General Sales Agent

SEC Service Excellence Centre

TCISL Thomas Cook Insurance Services Ltd

GCP Gold Circle Partners