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STRATEGIC MANAGEMENT

Presented By:

Aditya Kumar 61

Subodh Khedekar 73

Ajay Sasane 85Sabahur Rahman 97

Drumil Khopkar 109

Topic : Travel and Tourism

Presented to:

Prof. Shirish Bhakare

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INTRODUCTION

TO

INDUSTRY

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(Source : www.wikipedia.com)

Tourism Industry

Travel and Tourism one of theworld's largest foreign exchangeearner among industries, providesemployment directly to millions ofpeople worldwide and indirectlythrough many associated serviceindustries.

Tourism is important and in some

cases vital for many countries, suchas France, Egypt, Greece, Lebanon,Israel, United States, UnitedKingdom, Spain, Italy, andThailand, and many island nations.Tourism in India is the largest

service industry, with a contributionof 6.23% to the national GDP and8.78% of the total employment inIndia. tourism revenues are expectedto surge by 42% from 2007 to 2017.

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Market size

(Source: www.tourisminindia.com)

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(Source: http://www.travel.travel

Segments

Airlines

Attractions/Theme Parks Restaurants

Bus/Taxi/Limousine Operators

Travel Agents

Vehicle Rental Companies Tour Operators

Cruise Lines

Travel Insurance

Hotels/Resorts/Casinos

National Tourism Offices

Travel Consumer and Market

Research Organizations

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Growth Rates

GDP: Total ContributionThe total contribution of Travel &Tourism to GDP, including its

wider economic impacts, is forecast to rise by 4.2% pa from US$5,991.9bn

(9.1% of GDP) in 2011 to US$9,226.9bn (9.6%) by 2021.

Employment: Direct ContributionTravel & Tourism is expected to support directly 99,048,000 jobs

(3.4% of total employment) in 2011, rising by 2.0% pa to 120,427,000 jobs

(3.6%) by 2021.


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Example- FTAs


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Example- FEEs


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(Source: www.google.co.in)

KEY PLAYERS

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INDUSTRY OUTLINE

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Value Chain Analysis

The value chain describes the full range of activities which are required to

bring a product or service from conception, through the different phases of

production (involving a combination of physical transformation and the

input of various producer services), delivery to final consumers, and final

disposal after use

The important parts:

Travel Agent

Transport mode

Accommodation

Food Site Operator

Cultural group

(Source: www.adb.org)

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Continued.

(Source: www.adb.org)

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Competitor Analysis

Company 2009 2010

Thomas Cook India Ltd. 0.050 0.082

Transcorp International Ltd. 0.054 0.031

Cox & Kings Ltd. 0.103 0.053

International Travel House Ltd 0.112 0.145

(Source: www.economictimes.indiatimes.com)

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Continued

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Continued.

Company 2009 2010



Cox & Kings Ltd. 0.246 0.283



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Continued.

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Continued.

Company 2009 2010



Cox & Kings Ltd. 11.24 7.96



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Continued.

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Entry Barriers

Govt. regulation.

Due to a fragmented market, travel agencies do not have access to

distribution channels.

Patents and proprietary knowledge serve to restrict entry into industry.

Threats of new entrants.

Organizational Economies of Scale.

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COMPANY

PROFILING

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(Source: www.thomascook.com)

Company Overview

Industry Travel

Founded 1841

Headquarter Peterborough , UK

Products Package holidays

Website www.thomascook.com

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Corporate Structure


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Marketing Aspects

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Services


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Brands

(Source: www.thomascook)

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SWOT

Strengths

big brand name

Loyal customers Unique products

Weakness

marketing & advertisement

activities.

Threats

Competition

Economic slowdown Natural Calamities

Opportunities

Integrate with hotels to

increase its profitability

International expansion

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Segmentation

Basis of Segmentation

Geographical : Metro Cities , Tier 1& Tier 2 cities

Psychographic : Lifestyle, personality, aspiration

Behavioral : Occasion, user status, frequency

Demographic : Age, stage, income

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Targeting

Thomas Cook is targeting all Middle Class & Upper Middle Class

population.

Targeted customers are from Metro cities & urban areas.

Thomas Cook has targeted all age groups by its diverse tour programs.

Thomas Cook is trying to meet demands which they not meet through

there programs.

Thomas Cook has targeted people with special needs.

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POSITIONING

Product Price

Promotion Distribution

PremiumBasicDurable

PremiumLow PriceValue

PrestigeFunPowerful

IntensiveSelectiveExclusive

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Competitive AnalysisEnjoy a competitive advantage of corporate foreign exchange.

Foreign exchange designed to save money for your business.As one of the UKs corporate foreign exchange leaders, well cut the cost of

your international transactions, with highly competitive rates and a fast,

dynamic service. We have a full range of drafts, wires and foreign currency

available to order online making it safe and secure to trade abroad.

Customer service.

From the word go youll be assigned a dedicated Account Manager

from our team. They will get to know your business and offer their extensive

help and expertise. Using Thomas Cooks global buying power, your Account

Manager will also give you access to our secure online system and great value

services, to help you reduce the cost of trading abroad.

(Source : www.thomascookgroup.com)

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Secure online ordering

Our state of the art payment system, CFX Direct, has been designed to

save your business time and money. CFX Direct is quick to use and makes

ordering a wide range of great value corporate foreign exchange products so

easy. Simply log in and make fast international payments, order currency and

travelers cheques and send money in an emergency, anywhere in the world.

CFX Direct also lets you download tailored trading and audit reports when you

need them.

International payments

Trust Thomas Cook Corporate Foreign Exchange to provide fast,

efficient and reliable money transfers that take the hassle out of international

business, so you can get on with running yours. From sending international

payments and settling invoices, to making multiple transactions whilst youreoverseas. Whatever business you need to take care of, our experts will find you

the best combination of electronic payments, bank transfers and international

wires, at competitive rates to suit your business


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Currency

When you need foreign currency or travelers cheques fast, count on us.We have over 80 currencies in stock at all times and you wont be penalized

with expensive rates. Simply order online and well secure the most competitive

rates for that day, so youll never pay more than you have to.

Emergency money

When you need to send or receive money quickly across the world, our

extensive network of global agents will get it there usually within 10 minutes.

So ifits an urgent payment for goods and services or a traveler emergency, our

strategic partnerships with leading money transfer companies worldwidewont let you down.


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Benchmarking Financial Analysis Balance Sheet Profit & Loss A/c


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Continued..

Return on Investment:-

Year 2009 = 0.081

Year 2010 = 0.135

It indicates that shareholders have

invested Rs.1/- and got the return

of Rs. 0.081/-in the year 2009

whereas it gone up to Rs. 0.135 in2010. Company`s profitability

position should be increased.


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Continued..

Debt-Equity Ratio:

Year 2009: = 0.614

Year 2010 = 0.648

The ideal norm is 2:1 which

means that every two rupee of

debt finance is covered by onerupee of shareholders` fund.


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Continued.. Current Ratio:

Year 2009 = 1.94

Year 2010 = 2.28

Total current assets have been

increased by great margin in one

year span. The amount current

assets are more than current

liabilities, which shows liquidityposition of the firm as current

assets are easily convertible in

cash.


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Supply Chain Analysis

Thomas Cook UK adopted the Travelife Sustainability System in 2007 as a

means of engaging in sustainable supply chain management with

accommodation providers in destinations. Since then, our team of trained

Travelife auditors has assessed our highest volume properties against the

environmental and social criteria. In 2010, we now have over 41% of our UKmainstream customers staying in hotels audited against Travelife. Of these,

18% of passengers are staying in hotels which have achieved award level

status of Bronze, Silver or Gold.

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Future ScopeRevival of general Economy

The year 2010 saw a revival in the general economy as well as the tourism

industry. A strong GDP growth and the rising stock indices, coupled with

positive outlook and the resurgence of suppressed demand, helped boost travel

and tourism sector in 2010.

The demand for leisure holidays increased due to receding recessionary

pressures, economic revival and return of confidence in Indian consumers.

Despite the challenges faced last year in terms of a slow economy, sluggish

demand and security concerns, the country was fighting back and tourism

developments were taking place. Although there could be some short- to

medium-term setbacks, the long- term outlook remains positive.

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Indian economy growing at around 8% per annum

With Indian economy growing at around 8% per annum and rise in

disposable incomes of Indians, an increasing number of people are goingon holiday trips within the country and abroad resulting in the tourism

industry growing wings. 2010 saw a revival in foreign tourist arrivals

after the slump last year on account of the slowdown with a growth rate

of 8% as compared to a de-growth of 2.2 % in 2009.

The year 2010 witnessed rupee appreciation against major currencies.

The buoyant market conditions helped financial services of the Company

grow by 8% in volumes over 2009 despite the fact that rupee

appreciation created a challenging trading environment for the wholesale

forex volumes.

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Natural Calamities

Despite the constraints faced such as the volcanic eruption in Iceland and

consequential ash cloud formation over UK & Europe, and heavy snowfall in

the USA and UK, which disrupted air traffic, your Company overcame thedifficult situation to report an increase in revenues by Rs. 539 million to Rs.

2792 million. Profit before Taxation and exceptional items increased to Rs.

532 million from Rs. 341 million.

Recorded Turnover

Your Company recorded turnover of Rs. 2792 million and profit before tax and

exceptional item of Rs. 532 million with profit after tax being Rs. 415 million

for the year ended 31st December, 2010. The basic earning per

share of the Company is Rs. 1.96.

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Recommendations

Take a close look at ways and means of improving the existing

infrastructure and hygiene conditions at places of tourist interest and public

places.

Conduct a joint promotional campaign for various states in India and

allocate budgets for marketing at international travel fairs to boost tourist

inflow in the country.

Promote Public Private Participation.

Coaching, development and training of employees for their long-term

carrier development and retention process.

Measures to be undertaken to face the negative impact of Terrorism

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Documents

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