INDUSTRY REVIEW PROJECT THOMAS COOK

DONE BY

RADHIKA MURARKA

1011559

Group 23.

TRAVEL INDUSTRY PROFILE

The travel industry caters to recreational, leisure and business travelers. According to the World

Tourism Organization, the travel industry generated revenues of US$856 billion in 2007.

The travel sector covers the following services:

Transportation services (such as cruise ships, airlines and taxis)

 Hospitality services (including accommodation in hotels and resorts

Entertainment services (in casinos, amusement parks, shopping malls and the theatre) 

Travel Industry: Major Players

The most popular travel destinations include:

Country

International   touristarrivals  (in millions) - 2007 figures

France 81.9Spain 59.2US 56.0China 54.7

Travel Industry: Forms of Travel

The major forms of travel include:

o Ship travel: Sea travel has largely been replaced by faster means of travel, such as automobiles and

airplanes. However, it is still used for short trips (ferries) and leisure cruises. The largest cruise

ships in the world include three ships of the ‘Freedom Class’ owned by Royal Caribbean

International. Popular destinations for sea travel are the Caribbean and North America. 

 

o Air travel: It is the most popular form of international travel, due to its speed and coverage. Some

of the busiest airports of the world are Los Angeles International Airport (the US), Heathrow

Airport (the UK) and Frankfurt International Airport (Germany). 

 

o Rail travel: The popular forms of rail travel include inter-city trains, rapid transit (metro rail) and

high speed long distance trains. Rail travel is generally restricted to domestic territory. However, it

is permitted across some countries in Europe. Countries with the largest rail travel density are

China, India, Japan and Russia. 

 

o Road travel: It is the most popular form of travel and includes various modes such as personal

automobiles, buses and taxis. The busiest road in the world is Highway 401 (Ontario, Canada).

Travel Sector: Related Industries

The travel sector includes the following industries:

o Tourism Industry : The global tourism industry is a multi-million dollar industry. It contributes

approximately 10% of the world GDP. The industry began booming with increasing affordability

of overseas travel. 

 

o Hospitality Industry : It includes services provided by the tourism and food sectors. This industry is

highly prone to economic fluctuations. It can be broadly classified into entertainment and

accommodation. 

 

o Aviation Industry : The global aviation industry generated revenues of approximately $430 billion

catering to more than 2,000 million passengers in 2007. 

 

o Shipping Industry : It involves the transportation of goods (cargo) through designated sea routes.

The global shipping industry is regulated by the International Maritime Organization (IMO). It is

considered a catalyst for economic development, as it accounts for approximately 90% of world

trade. 

 

o Shipbuilding Industry : It involves the construction and modification of ships, in specialized

facilities called shipyards. The industry supports trade, employment and other ancillary services

and is worth over $100 billion (Bloomberg report, December 2006).

o  

o Transportation Industry : This industry includes the provision of transport and related services

through a wide range of modes. The industry is vital for economic development, as it aids in the

production and distribution of goods and services.

 

o Logistics Industry : It involves the delivery of freight. This industry is governed by various factors

such as technology, legislation, globalization and confederations. According to industry reports,

revenues of the logistics industry were approximately US$910 billion in 2002.

Tourism Industry- A Special Focus on India

India’s tourism industry is experiencing a strong period of growth, driven by the

burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated

government campaigns to promote ‘Incredible India’.

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

global destination. India’s travel and tourism industry is one of them 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 2006, four million tourists visited India and spent US $8.9

billion.

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

Economic growth has added millions annually to the ranks of India’s middle class, a group that

is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually

from 2001-2006, and much of that is being spent on travel.

Thanks in part to its booming IT and outsourcing industry a growing number of 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. Tourist arrivals

are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign

exchange earnings recorded in 2004.

The Tourism Ministry has also played an important role in the development of the industry,

initiating advertising campaigns such as the 'Incredible India' campaign, which promoted India’s

culture and tourist attractions in a fresh and memorable way. The campaign helped create a

colorful image of India in the minds of consumers all over the world, and has directly led to an

increase in the interest among tourists.

The tourism industry has helped growth in other sectors as diverse as horticulture, handicrafts,

agriculture, construction and even poultry.

Both directly and indirectly, increased tourism in India has created jobs in a variety of related

sectors. The numbers tell the story: almost 20 million people are now working in the India’s

tourism industry.

India’s governmental bodies have also made a significant impact in tourism by requiring that

each and every state of India have a corporation to administer support issues related to tourism.

A new growth sector is medical tourism. It is currently growing at around 30% per

annum. Medical   tourist arrivals are expected to reach one million soon.

Medical tourism in Asia, plastic surgery in particular, has grown rapidly. Medical tourism is

approaching fever pitch at the tune of $4 Billion US, fueled largely by the cosmetic surgery

market. One of the problems India has, despite having some world-class hospitals, is sanitation.

The tourism industry of India is based on certain core nationalistic ideals and standards which

are: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or

infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security.

The following table provides the major tourist attractions in India by state:

Tourist AttractionStateCharminarHyderabad, Andhra PradeshKaziranga National

ParkAssamQutubMinarDelhiMangueshiTempleGoaShimlaHimachalPradeshDalLakeJammu and

KashmirJogFallsShimoga District,

KarnatakaKovalamBeachKeralaAmarkantakMadhyaPradeshAjantaMaharashtraPuriOrissaGolde

nTempleAmritsar, PunjabJaipur

RajasthanChennaiTamilNaduBadrinathTempleUttarakhandVaranasiUttarPradesh

VictoriaMemorialKolkata, Bengal

COMPANY PROFILE

Thomas Cook (India) Ltd is the largest integrated travel and travel related financial services company in India. The company offers a range of services that include foreign exchange, corporate travel, leisure travel, and insurance. Their subsidiaries include Travel Corporation (India) Ltd, Thomas Cook Insurance Services (India) Ltd, Thomas Cook Tours Ltd, Indian Horizon Travel & Tours Ltd and Thomas Cook (Mauritius) Holding Company Ltd. The company has overseas operations in Sri Lanka which is a branch of TCIL and Mauritius which is a subsidiary of Thomas Cook (India) Ltd. The company along with their subsidiaries has their presence in 166 locations in India and seven countries outside of India. The company operates in two segments, namely foreign exchange and financial services, and travel and related services. Foreign Exchange and Financial Services deals with providing travel related foreign exchange & payment solutions. The company also offers credit cards and financial services relating to travel insurance. Travel and Related Services include consumer leisure travel retailing, travel management services, leisure inbound service and general sales agency business. Thomas Cook (India) Ltd was incorporated as Thomas Cook (India) Pvt Ltd on October 21, 1978. The name of the company was changed to Thomas Cook (India) Ltd on March 07, 1979. The company was originally promoted by Thomas Cook Group Ltd, the history of which can be traced back to the founder Thomas Cook. He commenced business in the United Kingdom in 1841 which included organizing group tours called Cook's Tours. In accordance with the permission granted by RBI, Thomas Cook Overseas Ltd transferred their business in India to the company as a going concern with effect from November 01, 1978. In the year 1994, the company transferred their cargo business to their subsidiary company. The company set up a Leisure Travel department to promote domestic and outbound holiday travel, within India and to others parts of the world. In the year 1996, the company opened a foreign exchange office at Jallandhar in Punjab and foreign exchange counter at Kolkata International Airport. They also inaugurated full-fledged offices at Saltlec in Calcutta and the Indian Institute of Sciences at Bangalore. In the year 1998, the company successfully established their first ever implant with State Bank of India at Calangute in Goa. The company also launched Visa Travel Money Card, a pre-paid ATM card which enables the traveler to withdraw local currency from more than 44,000 Visa ATMs across 117 countries worldwide. In the year 2000, the company signed the Name License and Technical Assistance agreement with Thomas Cook Holdings, UK, for operating in the Indian Ocean Rim region of India, Bangladesh, Nepal, Bhutan, Syechelles, Maldives, Mauritius, Myanmar, and Sri Lanka etc. They also acquired the business of Thomas Cook's overseas business in Sri Lanka for Rs. 2.74 crore. The company opened their second office in Mauritius at Port Louis. In the year 2001, the company opened their leisure travel office in Panjim, Goa for targeting up-market tourists. In June 2001, they launched India's first ever Ticket Auctions on Bidorbuyindia.com with their European tickets. In April 2002, Thomas Cook Insurance Services (India) Ltd, a wholly owned subsidiary of the company was given the corporate agency license of TATA - AIG General Insurance Company. In the year 2003, the company won two key new accounts from Belgium and the Netherlands for their inbound charter handling business. The company along with Galileo India issued the first e-ticket in India through the Global Distribution System. They issued the first remotely printed international airline ticket at the office of one of their key customers. In the year 2004, the company incorporated four step-down subsidiary companies during the year, two each in Mauritius and Sri Lanka. In Mauritius, the company incorporated Thomas Cook (Mauritius) Travel Ltd to undertake the business of General Sales Agent (GSA) of Airlines operating out

of Mauritius while Thomas Cook (Mauritius) Holidays Ltd was incorporated to undertake the Indian outbound tourist business in Mauritius. Both these companies are wholly owned subsidiaries of Thomas Cook (Mauritius) Holding Company Ltd. In Sri Lanka, the company incorporated Thomas Cook Lanka Holdings (Pvt) Ltd as an investment vehicle for the company's investments in Sri Lanka. This company is a wholly owned subsidiary of Thomas Cook (Mauritius) Holding Company Ltd. The other company incorporated is Airline Services Lanka (Pvt) Ltd, the wholly owned subsidiary of Thomas Cook Lanka Holdings (Pvt) Ltd to undertake the business of General Sales Agent (GSA) of Airlines operating out of Sri Lanka. The company commenced General Sales Agency (GSA) operations through their subsidiary Airline Services Lanka (Pvt) Ltd and Thomas Cook (Mauritius) Travel Ltd by entering into an agreement with Condor. In the year 2005, the company incorporated a step-down subsidiary in Thailand, named as Thomas Cook Travel & Foreign Exchange (Thailand) Ltd and a wholly owned subsidiary in Singapore named as Thomas Cook Travel & Foreign Exchange (Singapore) Pte Ltd. Also, they opened a new outlet at Union Place, the prime area in Colombo for retail businesses. In the year 2006, the company acquired the LKP Forex Ltd and Travel Corporation (India) Ltd. Also, they sold their 100% stake in Hindustan Cargo Ltd. In March 2006, the Leisure and Corporate Travel business started trading and offers inbound holidays, outbound holidays, and corporate travel services. In February 2007, the company launched their new premium holidays brand '100% Holidays'. In March 2007, the company and ICICI Bank launched Thomas Cook Titanium Mastercard. In December 2007, the company signed a MOU with JTB Corp, Japan, in which the company able to access the JTB Corp network across 30 countries along with affiliates spreading over 800 offices. For JTB Corp, the alliance provides a ready platform to enter the Indian market. The company closed down their operations in Thomas Cook Travel (Thailand) Ltd and Thomas Cook Travel & Foreign Exchange (Singapore) Pte Ltd. In the year 2008, the company made a tie up with Axis Bank for pre-paid forex card which offers exchange of upto 7 currencies. In October 2008, the company made a tie up with that ItzCash from the Essel group stable to facilitate online travel bookings. In December 2008, the company made a tie up with cruise line operator Indian Ocean Cruises of London based Foresight Smart Ventures, to market the heritage cruise Ocean Odyssey in India and Mauritius.

BACKGROUND AND INCEPTION OF THE COMPANY

"In Our World Nothing's Foreign"

"Cook has made travel simple,easy and a pleasure. He will sell you a ticket to any place on the globe. Cook is your banker everywhere. His clerks will answer all the

questions you ask, and do it courteously. "I recommend Cook's tickets and I do without embarrassment, for I get no commission. I do not know Cook."

Mark Twain, Europe and Elsewhere – 1923

History of Thomas Cook

In 1841, young Thomas Cook arranged an 11-mile train journey for a motley group of passengers from Leicester to Loughborough. And it marked the beginning of a chapter in history. He went on to introduce a railway tour of Europe. But it wasn't until the early 1860s that he began the travel firm, Thomas Cook & Son, which included tours of the USA. The Company also started operations for military transport and postal services for England and Egypt during the 1880s. The world got around and by the early 1900s, the who's who of the era - kings, politicians, bishops and professors - patronised Thomas Cook's travel itinerary.

As the years passed by, the Company introduced the world to a whole new concept of leisure and business travel. Driving innovation in the business, it connected continents and presented the people an economic and state mode of travel across them.

In 1881, Thomas Cook started its India operations, with its first office being set up in Mumbai. As it expanded its horizons across the subcontinent, the Company came to be known as Thomas Cook Overseas Ltd. And on 21st October 1978, it was christened Thomas Cook (India) Ltd, only to make its first public issue in February 1983. In the year 2000, the Group commenced its operations in Mauritius and also acquired the Sri Lanka business from Thomas Cook Overseas Ltd, UK.

Following is a timeline of the key dates in the history of Thomas Cook:

1808 Thomas Cook is born on 22 November in the village of Melbourne in Derbyshire.

1834 John Mason Cook is born on 13 January in Market Harborough, near Leicester.

1841 Thomas Cook organises his first excursion, a rail journey from Leicester to a temperance

meeting in Loughborough. On Monday 5 July a special train carries some 500 passengers a

distance of 12 miles and back for one shilling.

1845 Thomas Cook conducts his first trip for profit. It is a railway journey to Liverpool from

Leicester, Nottingham and Derby. Fares are 15/- first class and 10/- second class, with a

supplementary charge for travelling by special steamer to North Wales

1846 Thomas visits Scotland for the first time. A party of about 350 people travels from

Leicester to Fleetwood, then to Ardrossan by steamer, and onwards by rail to Glasgow. Special

trips are made to Edinburgh, Stirling and Ayr.

1851 Thomas Cook promotes trips to the Great Exhibition in Hyde Park. More than 150,000

people from Yorkshire and the Midlands, including a party of 3,000 children from Leicester,

Derby and Nottingham, travel to London under his arrangements.

- The Excursionist is published for the first time as Cook's Exhibition Herald and Excursion

Advertiser.

1855 Thomas Cook's first continental tour. He personally conducts two parties from Harwich to

Antwerp, then on to Brussels, Cologne, Frankfurt, Heidelberg, Strasbourg and, finally, to Paris

for the International Exhibition.

1863 Thomas Cook conducts his first party of 62 people to Switzerland, via Paris. A journal of

this trip, kept by Miss Jemima Morrell, survives in the Thomas Cook Archives.

1864 John Mason Cook, aged 30, joins his father in business.

1865 Thomas Cook opens an office in Fleet Street, London, the upper floor of which is used as a

Temperance Boarding House.

1866 John Mason Cook personally conducts the first American tour.

1868 Thomas Cook introduces a system of hotel coupons (which he had tested the previous year)

in an attempt to get fixed prices for accommodation at selected hotels in all major cities.

1869 Thomas Cook escorts his first party to Egypt and Palestine.

1871 Thomas Cook & Son becomes the official name of the firm when John Mason Cook joins

his father as a business partner.

1872/73 Thomas Cook organises and leads the first round-the-world tour. He is away from home

for 222 days and covers more than 25,000 miles.

1873 Thomas Cook & Son opens its new head office at Ludgate Circus, London. Also the first

edition of Cook's Continental Time Tables & Tourist's Handbook is published.

1874 Cook's Circular Note, an early form of the travellers cheque, is launched in New York.

1878 A distinct Foreign Banking and Money Exchange Department is established.

1879 John Mason Cook becomes 'sole managing partner' of the company.

1884 The relief force sent to rescue General Gordon from Khartoum is conveyed up the Nile as

far as Wadi Halfa by Thomas Cook & Son.

1892 Thomas Cook dies, aged 83.

1898 Kaiser Wilhelm II's tour of the Holy Land is organised by John Mason Cook and his son

Frank.

- John Mason Cook dies suddenly at the age of 65. The company passes into the hands of his

three sons: Frank, Ernest and Thomas ('Bert').

1908 Thomas Cook & Son issues its first winter sports brochure.

1919 Thomas Cook & Son is the first travel agent to offer pleasure trips by air.

1922 Thomas Cook & Son organises the first tour to cover the whole length of the African

continent. The tour lasts five months and includes a one-month safari.

1924 Thomas Cook & Son Ltd is incorporated.

The head office of Thomas Cook & Son Ltd moves to Berkeley Street in London's Mayfair

district.

1927 Thomas Cook & Son Ltd organises the first personally-conducted air tour - from New York

to Chicago for the Dempsey-Tunney heavyweight boxing contest.

1928 Frank and Ernest Cook, the two surviving grandsons of Thomas Cook (Bert having died in

1914), retire, selling the business to the Compagnie Internationale des Wagons-Lits et des

Grands Express Européens.

1939 Holidays by air on specially chartered aircraft to the French Riviera are included in Cook's

summer brochure for the first time.

1948 Thomas Cook & Son Ltd becomes state-owned under the British Transport Holding

Company.

1959 Thomas Cook introduces to business clients a new worldwide credit scheme for travel and

related services.

1966 Thomas Cook's 125th anniversary.

1972 Thomas Cook is privatised and bought by a consortium of Midland Bank, Trust House

Forte and the Automobile Association.

1974 Thomas Cook launches a customer protection guarantee in UK retail shops.

1977 Thomas Cook opens its new administrative headquarters at Thorpe Wood in Peterborough.

- Midland Bank buys out Trust House Forte and the Automobile Association to become the sole

owners of Thomas Cook.

1980 Thomas Cook Travel Book Awards first presented.

1981 Thomas Cook introduces 'Holidaymaker', a private viewdata system allowing travel agents

to access directly Thomas Cook Holidays reservation system.

1982 Thomas Cook purchases Rankin Kuhn Travel Ltd

1986 Airfare Warehouse is launched.

1989 The long-standing agreement with Wagons-Lits comes to an end and the development of a

new worldwide network begins.

1990 Thomas Cook becomes the world's leading foreign exchange retailer when it acquires the

retail foreign exchange operations of Deak International Inc.

1991 Thomas Cook celebrates its 150th anniversary. A 34-day round-the-world trip is arranged

to commemorate this occasion, and a re-enactment of the first railway excursion from Leicester

to Loughborough takes place on 5 July.

1992 Westdeutsche Landesbank, Germany's third largest bank, and the LTU Group, Germany's

leading charter airline, acquire the Thomas Cook Group from Midland Bank.

1994 Thomas Cook acquires Interpayment Services Limited, the travellers cheque subsidiary of

Barclays Bank plc, to become the world's largest supplier of travellers cheques outside the

United States.

- Following a major review of its global activities, Thomas Cook sells its travel management

business to American Express.

1995 Westdeutsche Landesbank acquires LTU's 10% share of the Thomas Cook Group, making

Thomas Cook a wholly-owned subsidiary of WestLB. Thomas Cook launches its own Internet

site.

1996 Thomas Cook acquires Sunworld, the UK and Ireland's fourth largest short-haul tour

operator, and Time Off, the specialist European city breaks tour operator.

- Thomas Cook announces plans to form the world's largest leisure travel alliance with the

American Automobile Association (AAA), subject to US regulatory clearance.

1997 Thomas Cook On-Line is launched, making Thomas Cook the first UK retail travel agency

to offer customers a way to buy holidays, foreign currency, travellers cheques and guidebooks

over the Internet.

- Thomas Cook Direct Businesses open a new call centre in Falkirk.

- Sunworld acquires the Flying Colours Leisure Group, one of the UK's medium-sized tour

operators and leisure airlines.

- Thomas Cook launches its Global Traveller Services business.

- Preussag AG acquires a 24.9% shareholding in Thomas Cook.

1999 The European Commission approves the merger of Thomas Cook and Carlson Leisure

Group's UK travel interests.

- Thomas Cook's worldwide headquarters in London moves out of Berkeley Street, where it has

been since 1926, to new premises in Midford Place.

- JMC is formed (by combining the former operating brands Sunworld, Sunset, Flying Colours,

Inspirations and Caledonian Airways) and becomes the UK's third largest tour operator and

airline business.

- Preussag AG becomes the majority shareholder in Thomas Cook Holdings Ltd when it

increases its stake from 24.9% to 50.1%. (WestLB retains a 27.9% interest and Carlson

Companies Inc. holds 22%.)

2000 Thomas Cook announces the sale of its Global and Financial Services division to Travelex

on 8 November.

- C&N Touristic AG, one of Germany's largest travel groups, signs an agreement (on 7

December) to become the sole owner of Thomas Cook Holdings, subject to EC approval.

Thomas Cook completes the sale of its Global and Financial Services division to Travelex on 27

March.

- C&N Touristic AG becomes the sole owner of Thomas Cook on 30 March. C&N Touristic AG

changes its name to Thomas Cook AG and launches a new logo.

- Thomas Cook's 160th anniversary.

2002 Thomas Cook Airlines Belgium begins operating in March, serving holiday destinations in

the Mediterranean and on the Canary Islands with a fleet of five Airbus A320 aircraft.

Thomas Cook is set to become the first fully international leisure brand. The Thomas Cook brand

- hitherto used as the company's name as well as for its sales and service activities - will in future

appear in all markets and on all levels of the travel-related value chain.

2004 Thomas Cook announces its partnership with the Variety Club of Great Britain as its

chosen charity. The relationship involves fundraising activity and Christmas flights for

underprivileged, sick and disabled children.

- A new 'dynamic packaging' brand, FlexibleTrips, is launched to enable customers to build their

own holidays in store and online.

2005 Thomas Cook UK & Ireland announces its greatest ever profits of £50 million over the

financial year 2003/2004.Thomas Cook celebrates 150 years of taking Britain abroad - since the

first ever overseas holiday, and launches holidays to Brazil for the first time.

2006 The company announces record profits of £83.3 million and achieves the 'holy grail' of the

travel industry, a five per cent profit margin. Thomas Cook is also listed as one of the Sunday

Times Top 20 Best big companies to work for.

2007 Thomas Cook becomes part of Thomas Cook Group plc which was formed on June 19th

2007 by the merger of Thomas Cook AG and MyTravel Group plc.

-In December Thomas Cook UK & Ireland becomes listed on the London Stock Exchange for

the first time.

2008 Thomas Cook Group acquires Canada’s TriWest Travel Holdings, French tour operator Jet

Tours, and UK independent travel companies hotels4u, Gold Medal and Elegant Resorts.

2009 Thomas Cook’s majority shareholder, Arcandor AG places its remaining shares on the

stock market, resulting in 100% of the Group’s shares being freely floated on the London Stock

Exchange.

- Thomas Cook becomes an Official Supporter of the London 2012 Olympic Games and

Paralympic Games and the exclusive partner for UK short breaks and trips to the Games.

- The Thomas Cook Children’s Charity is launched to help sick and disadvantaged children.

2010 Following the earthquake in Haiti, Thomas Cook Group helps the Disasters Emergency

Committee, UNICEF and various charities to carry aid and relief personnel out to the affected

area.

- Thomas Cook Group acquires 100% of German tour operator, Öger Tours GmbH.

- Thomas Cook Group and The Co-operative Group announce plans to merge their UK travel

retail networks to create the UK’s largest chain of high-street agencies. The merger is subject to

anti-trust clearance from the EC, which is anticipated in December 2010

Company Background - Thomas Cook (India)

Industry Name Travel Agen. / Tourism Deve. / Amusement Park

House Name MNC Associate

Collaborative Country Name N.A.

Joint Sector Name N.A.

Year Of Incorporation 1978

Year Of Commercial Production N.A.

Regd. Office

Address Thomas Cook Building,, Dr. DadabhaiNaoroji Road,

District Mumbai

State Maharashtra

Pin Code 400001

Tel. No. 022-66091700,022-61603333

Fax No. 022-22871069,022-66091454

Email : sharedept@in.thomascook.com Internet : http://www.thomascook.in

AuditorsLoveLock& Lewes

Company Status N.A.

Registrars

Name T S R Darashaw Ltd.

Address No. 6-10, Haji MoosaPatrawala Ind. Estate, 20, Dr. E. Moses Road, Mumbai - 400011, Maharashtra

Tel. No. : 66568484 Fax No. : 66568494

Email : csg-unit@tsrdarashaw.com Internet : http://www.tsrdarashaw.com

NATURE OF BUSINESS CARRIEDNature of Business

The sale of foreign holidays

Travel insurance

Car hire

Airport hotels

Uk breaks

Cruises

Foreign currency

Money gram service

Attraction tickets

VISION, MISSION, OBJECTIVES, QUALITY POLICY

Our Mission StatementExceptional Service From Exceptional People

Our Values Taking Personal Responsibility For Achieving the Mission Displaying Honesty and Trust in all our Relations with Customers to deliver outstanding

service to them at all times Recognizing and Respecting the Needs of Individuals

 

Vision :Thomas Cook wanted to make a tourism and travel easy and more easy for all.

Objectives and Quality policyThe challenging objectives set by Thomas Cook are:

Create a single, customer-focused, group culture. .Develop management into an industry leading and united team. Maximize the value of mainstream through margin and capacity management. Increase independent travel revenues by 50%.

Significantly grow travel related financial services. Grow through M&A, with a focus on consolidation and emerging markets.

Overview of objectives

Inspired by the vision “We go further to make dreams come true,” our strategy has remained clear and

constant, focused around strengthening our existing businesses and investing for future growth.

During the year, we began work on a number of strategic initiatives that have the potential to deliver

revenue growth and lift the Group operating profit margin by 100 to 150 basis points over the medium

term.

Our strategic initiatives focus on delivering against our growth drivers; maximising value in mainstream

travel and financial services and investing in areas of future growth, primarily independent travel and

emerging markets. In parallel, we continue to look for opportunities that can accelerate our journey by

capturing growth and value through mergers and acquisitions.

Thomas Cook's Sustainability PolicyMore than 160 years ago, a former Baptist preacher and temperance supporter, Thomas Cook, created the first package holiday out of a sense of social responsibility.  In keeping with the values of Victorian society, he believed that by offering alternative, more virtuous and educational leisure activities, the lives of working people would be greatly improved and that everyone could become better educated through travel. 

Today the Thomas Cook name remains one of the world’s best known and respected brands in travel and we are proud that our business, as part of the global tourism industry, can be an economic driver for the destinations we visit – providing commercial benefit and financial impetus, as well as a positive cultural exchange.  We recognise the importance of tourism for economies and communities, whilst also being aware of the potential impact on the environments, communities and cultures of the places to which we operate. As a result, we seek to ensure that business operations are conducted in a responsible way. 

We define Corporate Responsibility as ‘operating responsibly to minimise negative and enhance positive environmental, social and economic impact: ensuring the long term sustainability of our business and of the resources on which we depend.’ 

Thomas Cook’s mission is to Perfect the Personal Leisure Experience

As part of this mission, the company is committed to working towards developing, operating and marketing our business in a sustainable manner.  We will continue to lead in developing a sustainable approach to tourism development and endeavour to predict and prevent negative economic, environmental, social and cultural impacts.  We will strive towards integrating responsible practices into business decision making and we believe that effective management of our social, environmental and economic responsibilities enhances the value of our business and reputation of our brand. This policy was originally developed in 2004 and has been revised in 2007 to reflect our continued work to improve our development and management processes. Regulatory compliance is treated as a minimum standard and the Board and Executive Management team seek to operate beyond this.  We endeavour to comply with, and respect, local, national and international laws, regulations and rules applicable to our business and to recognise (and contribute to the development of good and best practice. Our PLC Board Health, Safety and Environmental Committee, chaired by a non-executive director, oversees and monitors the activities of the operating companies within the Group, signalling the fundamental importance of Corporate Social Responsibility.

Looking after the Environment

 We recognise that it is important for the long term success of our operations to consider our environmental impact. It is essential that we do as much as we can, within our sphere of influence, to protect the resources 

the future of our business, and that of the local communities, depend upon. We will continue to develop our waste management policy, incorporating the three principles of reducing, reusing and recycling and we will strive to improve our environmental performance by expanding the range of current environmental initiatives. For example, by increasing:

• Fuel efficiency • Recycling • The purchase of locally sourced goods, where possible 

And by reducing:

• Airline emissions • Noise pollution Energy consumption • Water consumption • Solid waste production • Paper consumption • The impact of our supply chain 

In addition, we recognise that we must work to preserve and protect the natural environment, its resources and its wildlife. We will encourage our customers to respect the environment and to avoid activities which exploit it.  Looking after Customers

Our three key priorities for our customers are enjoyment, safety and wellbeing.  We acknowledge our responsibilities in relation to each of these priorities, as well as our customers' duty to look after themselves, their families and their travelling companions. We will assist our customers in doing this through the provision of information, where this would raise awareness. For example, through promoting access to Foreign Office Travel Advice and health information. We seek continuous feedback from our customers on their overall enjoyment of the holiday experience and we use this information to gather opinions, measure performance and to improve future holidays. Our overseas representatives receive regular training to ensure our customers have an enjoyable holiday which matches their expectations.

  If our customers, or employees, highlight any questions or concerns, we have the procedures in place to ensure these are resolved. The products and services that we offer must meet appropriate local health and safety criteria.  We continue to promote good practice through the use of a specialised health and safety team who focus on minimising risk to customers, through the implementation of guidance to suppliers promoted by the Federation of Tour Operators. We recognise our responsibility to contract with reputable suppliers and to take steps to provide services which meet an appropriate level of safety, having regard to each destination’s local standards. Looking after Employees

We recognise that our ability to deliver our business objectives is dependant on the effective leadership of our people in the workplace. We believe that people are the ultimate drivers of our business success and of our need to develop sustainably. We want our employees to be proud to work for The Thomas Cook Group and we promote fair and safe working conditions, equal opportunity and diversity throughout our businesses. We place considerable value on the involvement of our employees and continue to keep them informed of matters affecting them and of the various factors affecting the performance of the group. We recognise the right of employees to be involved in trade unions.

Looking after Communities and Heritage

We believe ‘quality of life’ is a basic right of the people of the communities in the places where we operate. Where possible, we will work together with local communities to ensure they benefit as much as possible from the visits of our customers and we will promote fair working conditions throughout our supply chain. We respect the natural and cultural heritage of all communities and understand that we must play our part in sustaining these. We aim to conserve cultural and national heritage, respecting the integrity of local cultures and avoiding negative impacts on social structures. We will encourage our customers to respect the tradition 

and integrity of local cultures and will promote behaviour compatible with the principles of sustainable development.  Where practical, we aim to promote the purchase of local produce. We will not tolerate any illegal, abusive or exploitative forms of tourism. Looking after our Products

We strive for our products to be of the highest quality and will therefore encourage good practice within all our operations and comply with all relevant legislation surrounding the business. We continually monitor and 

assess our product offering so that it appeals to a range of existing and new customers. By assessing and working with existing suppliers, we aim to improve the quality of our products from a social, environmental and economic perspective. Raising Awareness

We aim to ensure that we and all our stakeholders become better educated through the experience of travel, in keeping with the values of our founder. We recognise that raising awareness and understanding amongst our employees, customers and suppliers is fundamental to gain their commitment. We will endeavour to highlight the benefits of addressing these issues and will encourage all stakeholders to adopt these principles. Working Together

We are committed to working with customers, employees, investors, suppliers, local communities, industry, government and other regulatory bodies and non governmentalorganisations in order to deliver sustainable development. In particular, we actively support and engage in the work of the Travel Foundation and of the Federation of Tour Operators. Summary

Together with the support and guidance of multi-stakeholder groups, we aim to build a tourism industry which brings education and pleasure to those who travel with it, a sustainable future to the places and the people who provide it as well as a fair profit to all those who are involved in supplying it. 

PRODUCTS AND SERVICES

Thomas Cook has an active Quality & Customer Services Department to look after the needs of our clients and to constantly monitor our performance through a variety of quality initiative.

Thomas Cook is committed to dedicating time and effort in the pursuit of an excellent standard of service for all our customers. In other words, exceptional service from exceptional people:

Proactive implementation of travel policy. Responsive, accurate handling of travel arrangements. Optimum use of travel expenditure. Travel support and emergency assistance worldwide. The management information essential to control travel costs. Maximum value in supplier relationships. Continuous assessment and improvement of our service, based on quality principles and practices. Efficient after sales service.

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

Company in the country offering a broad spectrum of services that include Foreign Exchange,

Corporate Travel, Leisure Travel, and Insurance. The Company launched its Indian operations in

1881 and is celebrating its 127 years of world-class service in India. Thomas Cook (India)

operates in the following areas of business, namely: Leisure Travel Corporate Travel Management MICE, Foreign Exchange SWIFT Network Travel Insurance Credit Cards Pre-Paid Cards Life Insurance and E-Business

What we offer

Mainstream travel

Mainstream travel is primarily the sale of charter holiday packages where two or more components of travel, such as flights, hotels, transfers and in-resort support, are bundled together in advance and sold to customers.

Independent travel

Independent travel is a key area of growth. Independent travel is where consumers build up the individual components of their own trip either by themselves or with the help of an agent. We are building our position both in retail and wholesale independent travel.

Travel-related financial services

Travel-related financial services broadly fall into the categories of travel money, travel assurance and travel finance products. They are typically high margin products and are sold alongside other holiday components.

Thomas Cook has come up with a new and diverse range of services. They are as follows :

Customise your HolidaysPlan your holiday as per your needs. Either select your region of choice or select exactly

what you’re looking for in your next destination. Be it adventure, beaches, religious

pilgrimage or romance— we’ve got all the places you would love to visit.

Group Escorted ToursEmbark on cultural odysseys and family holidays with our travel experts. Opt for

delicious Indian food, vegetarian or non-vegetarian, or world culinary delights. Discover

the history, the legends and the must-visits of your next destination. You can also choose

to tour with people from different countries for a whole new cultural experience!

My India My Way Long Break - Overview

Whether it is the exciting discovery of new destination or a relaxing sojourn to your

favorite location, our Individual tours are designed to offer you maximum comfort and

privacy while ensuring the highest quality of services on your cherished holiday. While

we have suggested the best itineraries at each destination, the same can be customized

further to suit your specific needs.

Short Breaks - Overview

Fatigued out of your routine? Whether your idea of relaxation is an escape to the

mountains or a lazy weekend on a golden beach, our short breaks provide you the perfect

excuse to give yourself and your family a recharge to return to their schedule with full

vigor. These short breaks bring to you best deals combined with our expertise to provide

an option that suits your needs.

Group tours - Overview

All Inclusive, extensive and great value for your hard earned money is how we would

like to describe our group tours. Escorted, to ensure you enjoy your holiday without any

hassles, our group tours offer you an opportunity to meet families from across the length

and breadth of the country as your co-vacationers creating a family atmosphere which

adds to the fun and enjoyment of your holiday.

Interest Tours - Overview

A religious tour which will let you focus on your spiritual objectives, an adventure tour on which

you can let your hair down without worries or a cultural journey which enlightens your senses.

We have it all in our Special Interest selection. Created with our expertise to let you indulge in

your passion, these tours provide the holiday that you always wanted to go on.

Rail Tours - Overview

India has one of the most extensive rail networks in the world, a network that will provide

economical, comfortable, safe and reliable mode of traveling to some of the most exotic

destinations in our vast country. Our rail tours are designed making use of the rail network

providing you an opportunity to explore the country along the hallowed rail tracks.

Following are some of the special tour packages offered by Thomas Cook:

Scandinavian Surprise

Bali Extravaganza

Easter Island Excursion

Divine Maldives

Holland Unveiled

Cyprus Jaunt

Sentosa Sunset

OWNERSHIP PATTERN

(A) Shareholding of Promoter and Promoter Group

(1) Indian  

(2) Foreign  

Bodies Corporate

2 163,471,449 163,471,449 77.18 77.18 -

Sub Total 2 163,471,449 163,471,449 77.18 77.18 -

Total shareholding of Promoter and Promoter Group (A)

2 163,471,449 163,471,449 77.18 77.18 -

(B) Public Shareholding

(1) Institutions  

Mutual Funds / UTI

7 3,272,922 3,266,522 1.55 1.55 -

Financial Institutions / Banks

8 9,400 4,390 - - -

Insurance Companies

1 404,475 404,475 0.19 0.19 -

Foreign Institutional Investors

8 2,957,373 2,953,793 1.40 1.40 -

Sub Total 24 6,644,170 6,629,180 3.14 3.14 -

(2) Non-Institutions

 

Bodies Corporate

1,213 7,503,002 7,459,192 3.54 3.54 -

Individuals - - - - -

Individual shareholders holding nominal share capital up to Rs. 1 lakh

46,272

32,580,401 29,463,098 15.38 15.38 -

Individual 8 1,613,177 1,613,177 0.76 0.76 -

shareholders holding nominal share capital in excess of Rs. 1 lakh

Any Others (Specify)

4 4,600 4,600 - - -

Trusts 3 2,600 2,600 - - -

Directors & their Relatives & Friends

1 2,000 2,000 - - -

Sub Total 47,497 41,701,180 38,540,067 19.69 19.69 -

Total Public shareholding (B)

47,521 48,345,350 45,169,247 22.82 22.82 -

Total (A)+(B) 47,523 211,816,799 208,640,696 100.00 100.00 -

(C) Shares held by Custodians and against which Depository Receipts have been issued-m

- - - - - -

(1) Promoter and Promoter Group

- - - - -

(2) Public - - - - -

Sub Total - - - - -

Total (A)+(B)+(C)

47,523 211,816,799 208,640,696 - 100.00 -

Shares belonging to promoter and promoter group:

No.Name of the Shareholder

Total Shares held Shares pledged or otherwise encumbered

Number

As a % ofgrand total(A) + (B) +

(C)

Number% of Total

shares held

As a % ofgrand total

(A) + (B) + (C)

1 TCIM Ltd 118,125,000 55.77 - - -2 Thomas Cook UK Ltd 45,346,449 21.41 - - -

Total 163,471,449 77.18 - - -

Shares belonging to the category "Public" and holding more than 1% of the Total No. of Shares:

No.Name of the Shareholder Total Shares held Shares as % of Total No. of Shares1 Hotel Hans Pvt Ltd 2,656,770 1.25

Total 2,656,770 1.25

COMPETITOR’S INFORMATION

Introduction

Cox & Kings is the longest established travel company in the world, its history stretching back to1758 when Richard Cox was appointed as regimental agent to the Foot Guards. Cox & Kings is now an independent tour company with offices in the United Kingdom, India, the United States and Japan. Its global headquarters are in London.

A Brief History

Cox & Co grew through the 18th and 19th centuries. Timely alliances with the great

banking families such as the Hammerlseys and Greenwoods secured an established position in

London, and by the end of the 19th century most Regiments used Cox & Co as their agents. As

the empire grew, Cox & Co met the demand for officers to be looked after.

The company set up five branches in India between 1905 and 1911, supplementing those

in Alexandria and Egypt (1919 and 1920) and Rangoon (1921).

During the 1930s, Lloyds sold their Indian interests to Grindlays Bank who also took the

Travel and Shipping Agencies also which continued to flourish in India. When a change in

British banking regulations meant Grindlays had to sell off non-banking interests, a partnership

between Ajit Kerkar and Anthony Good bought Cox & Kings. The company remains

independent to this day and is run by CEO Peter Kerkar.[1]

The USA office was opened in June, 1988 in New York, NY. In June, 1998 the USA

office was moved to Tampa, FL. In August, 2009, Cox & Kings USA came under the umbrella

brand of East India Travel Company, Inc., which is a subsidiary of Cox & Kings, Ltd., the global

parent company. In October, 2010, Cox & Kings USA has been rebranded Cox & Kings, The

Americas, and is responsible for all sales for clients in North and South America. Cox & Kings,

The Americas is headed by Centre Head and COO Thomas Stanley. Cox & Kings, The Americas

is relocating from Tampa Florida to Los Angeles, California in May, 2011.

Financial Takeovers

In October 1922, Cox & Co bought Henry S. King Bank, who were had a large network in India. They also moved into new offices in Pall Mall.

Cox & Kings purchased Tempo Holidays, a Melbourne based wholesale travel company in July 2008, for an undisclosed sum but rumoured to be in the vicinity of USD$25 million.

Cox & Kings purchased Bentours (based in Sydney, Australia), previously owned by UK giant TUI, in January 2010. Bentours would "continue to operate as a standalone brand" but would "be controlled by Cox & Kings Australia’s office in Melbourne" according to Cox and Kings Australia CEO Steve Reynolds.

Financial Sellouts

In 1923, Cox & Co were still suffering from the downturn in business caused by the surrender of the Germans in 1918. They were forced to sell to Lloyds Bank.

Company Profile

Chairman: ABM GoodEmail: ipo@coxandkings.com/rashmi.jain@coxandkings.com

Site Url: http://www.coxandkings.com

Company Address:Turner Morrison Building1st Floor 16 Bank Street Fort MumbaiPhone: 91-22-22709100/

Performance Analysis

Particulars BSE NSE

EPS (Trailing 12 mnths,Rs) 5.66 5.66Free Float (%) 41.35 41.35FII holding 22.72 22.72ROCE(%) 9.02 9.02

Face Value (in Rs) 5.00

Returns

Particulars BSE(%) NSE(%)

One month 6.05 6.55Six months -19.96 -20.20One year -17.00 -16.86

(Source: BSE)

Comparisons:

Peer Group:

Company Last (Rs) Mkt Cap (Rs cr)

Thomas Cook (I) 49.95 1058

Intl. Travel Hse 203.00 162

(Source: BSE)

Stock Quote

BSE: 533144 | NSE: COX&KINGS

  BSE NSE

Open 196.00 195.80

Day High 202.90 200.90

Day Low 194.95 194.25

Previous Close 194.45 193.70

52-Week high 659.70 659.00

52-Week low 180.10 179.55

P/E 20.98 21.03

Market Cap (Rs cr) 2705.83 2711.29

Volume 152146.00 0.00

Comparisons:

Cox & Kings:

BSE: Rs 198.20    3.75 (1.93%)

Company Last (Rs) Gain (%)

Thomas Cook (I) 49.95 2.04

Cox & Kings 198.20 1.93

(Source: BSE)

Financial Results (Quarterly):

Particulars (Rs lakh) Mar-11 Dec-10 Sale 6463 4855 Other Income 422 687 Total expenses 2505 3029 Net profit 2588 1344 Equity 6826 6826

ACHIEVEMENTS AND AWARDSFollowing are the awards received by Thomas Cook:

2011 Europe's Leading Marketing Campaign2011 Europe's Leading Tour Operator2010 World's Leading Cruise Travel Agent2010 World's Leading Travel Commercial2010 Europe's Leading Marketing Campaign2010 Europe's Leading Tour Operator2010 World's Leading Tour Operator Website2009 World's Leading Cruise Travel Agent2009 Europe's Leading Tour Operator2009 World's Leading Tour Operator Website2008 World's Leading Cruise Travel Agent2008 World's Leading Tour Operator Website2007 World's Leading Travel Company2007 World's Leading Tour Operator Travel Site2006 World's Leading Travel Company2006 World's Leading Tour Operator Travel Site2005 World's Leading Tour Operator to the Caribbean2005 World's Leading Travel Company2005 World's Leading Broadband Travel Site2005 World's Leading Tour Operator Travel Site

The achievements of Thomas Cook India are as follows:

Thomas Cook (India), over the years has received several prestigious awards such as the Golden Peacock Award for excellence in Corporate Governance and the Pacific Asia Travel Association (PATA) Golden Award for Best Travel. Recently, the Company also won the Best MICE Operator Award and was also accredited the P1 rating which is the highest financial rating given by Crisil.

Recently, Thomas Cook has been Awarded the 'Best Tour Operator'

by CNBC Awaaz Travel Awards for the Second time in a row and the 'Best Forex Company in India' by CNBC Awaaz Travel Awards 2009

Apart from this Thomas Cook has won the following awards:

Best Travel Agency Award 2004 given by TTG Asia - Part of Pacific Asia Travel Association (PATA) for the 5th year in succession.

The Golden Peacock Award for Corporate Governance, for the second time in a row. The Criteria for this award are transparency, excellence in conducting business, various levels of management, social and environmental responsibility, ethical business practice and Consistent creation of value for all the stakeholders.

The National Tourism Award for 2001-2002 & 2002-2003, winning the second rank in category 1 for the company that achieved the highest foreign exchange earnings from Ministry of Tourism.

National Tourism Award - Best MICE Operator 2006-07

National Tourism Award - 3rd prize Inbound Operator 2006-07 The Association of Business Communications of India (ABCI) where the

company won the first prize for its website - www.thomascook.co.in Awarded "The Best Outbound & Inbound Tour Operator of the Year" award at

the Hospitality India Awards 2006 hosted by Hospitality India. Recipient of the prestigious Government of India Ministry of Tourism award for

"Excellence in Conference Tourism"

Best Travel Agency - India for the year 2008 by TTG Asia - Part of Pacific Asia Travel Association (PATA)

Best Tour Operator by CNBC Awaaz in 2008 Best Outbound Tour Operator in the 4th Hospitality India & Explore the world

Annual International Awards - 2008