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International BusinessKESARI TOURS : EXPANSION TO AUSTRALIA

GROUP NO: 7

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About the Company

Established in 1984, Kesari is a premium travel company, headquartered in Mumb

The company ventured into the domain of world tours in 1992.

By 2003, Kesari established itself in the world tours segment and then went ahead

Caters to theneeds of the

individual travellerCost-saver tours

Caters to thecorporate travel

needs ofcompanies

Forex fulfills all thecurrency needs ofthe Indian traveller

going abroad

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Indian Tourism Industry

According to the United Nations World Tourism Organization (UNWTO) Tourism Highlights 2013, tourisms tworldwide GDP is estimated at 9 per cent.

Tourism exports in 2012 amounted to USD 1.3 trillion accounting for 6 per cent of the worlds exports.

India ranks 11th in the Asia pacific region and 65th globally out of 140 economies ranked on travel and Competitiveness Index.

The travel and tourism sector directly contributed INR 2222 billion to Indias GDP in 2013 reflecting a growcent. This is forecasted to grow at a CAGR of 12 per cent to INR 6818 billion by 2023.

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Kesaris international Expansion

Between 1985 and 1989, Kashmir was Kesaris main tourist destinationaccounting for 60-70% of the revenue

In 1992 they moved into countries like Thailand and Singapore followed boffering destinations of South East Asia, Europe, the Americas, AustraliaScandinavia and Alaska.

By 2011,they had 11 branches in India and abroad, with 24 subsidiariespecializing in verticals ranging from branding and promotion to in-housforeign exchange services.

In January 2012, they organized their first trip to Antarctica, covering aseven continents.

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Expansion Strategy

Kesari, started its international operation with countries like Singapore, Thailand, Malaysia.

After the regular success of their outbound program they ventured into different countries where leverage the foreign exchange rates.

Franchised in 5 countries:

Our Focus is on Kesarisexpansion in AUSTRALIA.

Increasing incomes, exchange rate movements and aviation capacity growth are contributing tpropensity among Australians to travel

Australians travelling for holiday purposes are the most responsive to exchange rates.

Australian Youth travellers are more influenced by exchange rates

Highdemandfrom loyaldomesticcustomers

Ease of VISAprocessing.(

VISA onarrival)

Cheaperthan other

westerndestinations.

Easy tie-upwith airlines

andrespective

hotels

Comfortablepackagedesign by

Kesari

Numda

advrequ

plan

USAIrelandNew

ZealandOmanAustralia

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Kesaris expansion in Australia

Growing tourismtrade in botheconomies.

Cooperation is alsoassisted by the JointWorking Group on

Tourism

The TourismForecasting

Committee estimatedin 2002 that Indianvisitation will reach340,000 annually by

2007, with TIEVexpected to be US$ 1

billion

Kesari Entered theAustralian market:

significant rise in theinbound tourism from

Australia

India's travel servicesexports to Australia

have been risingconsistently,

increasing by 12 percent in 200809. They

represent India'slargest services export

to Australia.

The GOI opened anIndian Tourism officein Australia (Sydney)

in 2007, while theAustralian

Government openeda Tourism Australiaoffice in Mumbai in

2008, and theAustralian State of

Queensland has alsoopened a tourism

office in India.

IndaA

ent

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TOWS MATRIX

Internal Factors

Externalfa

ctors

Strengths (S) Weakness (W)

Opportunities (O)

SO Strategic options

Expansion into newer

exotic locations.

WO Strategic options

Diversification through

vertical integration,

considering economicdownturn as an

uncertainty

Threats (T)

ST Strategic options

Innovation in product

development to

differentiate its

product from

competitor

WT Strategic options

Improving the Online

booking facility to

cope up with future

demands

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Problems faced by Kesari

CompetitionKesari is facing tough competition from very big players like Cox and Kings, Thomas Cook, Kuoni etc. as they have entered In

becoming established players in the Indian Markets (international giants with deep pockets )

Market is becoming highly concentrated : There are about 6000 big and small players in the tourism market consisting of touand tourist transporters

Internal Strife In 2013 Kesari Tours faced a management crisis in its leadership. Veena Patil who was Managing Director of the company a

leave her position from the company due to so cal led misuse of the company assets.

Fluctuating Exchange RateDemand for international tourism was highly exchange rate elastic.

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Foreign Exchange Rates

During the 2008-09 sub-prime crises when tourism across the world suffered heavily. During this period, aall the other countries showed negative growth in outbound tourism.

They focus more on inbound tourism in Australia so that the royalty earned adds more value to the revedollar is far more stronger and stable than Indian rupee.)

2008 2009 2010 2011

Australia 37.01 38.22 41.96 47.95

NewZealand 31.00 30.65 32.93 36.77

Oman 113.74 125.21 118.61 120.67

Ireland 64.14 67.36 60.58 64.65

U.S.A 43.78 48.37 45.66 46.46

30.0040.0050.0060.0070.0080.0090.00

100.00110.00

120.00130.00

Exchange Rate

2008 2009

Australia 143340 149074

NewZealand 29688 30876

Oman 31703 32971

Ireland 18484 19223

U.S.A 795327 827140

10000110000210000310000410000510000610000710000810000

910000

Tourists Inflow

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Recommendations

The company should pursue Transnational Strategy by obtaining the benefits of value network that better suits the local nations, e.g.. It should cater to the ageiU.K.

To maintain its position as innovator in Tourism, we would like to suggest the follo

Event based TourismTennis Grand Slams, Auto-Expos, Super bowls etc.

Curated Tours

Wonders of the world tour.

Concentrate on forward vertical integration by acquiring hotels in the most ope