The tourism industry in India is growing rapidly at 15-20% annually. The government has encouraged this by allowing 51% foreign equity in hotels and promoting India as a top tourist destination. Tourism products must be tailored to specific customer segments and their needs. Thomas Cook follows a model of providing on-site travel services to corporate clients. It aims to capitalize on the growing leisure travel market in India through new packages, advertising, and a multichannel approach integrating offline and online presence. Opportunities exist in leisure travel, but Thomas Cook will face competition from new entrants and low-cost operators.

1. Tourism Industry

2.  In India, industry growing at the rate of 15 to
20%.
 By Dec 2012, estimates that India’s forex
earnings from foreign tourists will cross $ 12
billion.
 Government allowed 51% foreign equity in
hotel industry.
 India – rated as top 5 tourist destinations in
the world.

3.  Understand the product-customer
relationship.
 Tourism Products – attractions people expect
to experience away from home.
 Strategy developed in relation to target
segment of market
 Service – people dependent
 Customer perception crucial.

4.  Market penetration
 Create a differential advantage in pricing or
promotion or both
 Find out a package for a specific need
segment
 Reach new classes of tourists

5.  Size of Segment
 Marketing strategies of competitors
 Different tour packages offered to customers
– eg. 3 nights, 2 days stay in Singapore &
Malaysia.
 - a package tour for schools / colleges

6.  Carlson Wagonlit followed this model.
 Thomas Cook adopted the in plant service
model.
 Employee of Thomas Cook shall be available at
the client site for the whole day and will take
care of all travel arrangements of all employees.
 Titan, Novell, Texas Instruments are the clients
of Thomas Cook.
 Thomas Cook also opens dedicated branches
where there is scope for business.

7.  New Product Development
 Value addition for customers
 Source of Service Differentiation
 NPD process – Feedback survey, exploration
survey

8.  Be near the customer and grow the business.
 Recruit experienced staff and train them
 On the job training + training with the help of
external consultants

9.  Competition
 Increase in overheads
 Opportunities also increasing
 Main focus on corporate travel.
 Now leisure travel market in India expected
to grow between 13 – 15%

10.  No advertisements
 Simply improve customer service

11.  Increasing levels of disposable income
 Satellite TV – increase of western influence
 Society transforming from a conservative
(savings mindset) to consumeristic (spend
money) mindset
 Corporates offering foreign travel to best
sales persons

12.  Look at leisure travel management too
 Advertisement about new package tours –
media advertisements
 Revise marketing budget

14.  Complete range of travel services
 Customer Service
 Wide network
 International operations
 Employee empowerment
 Close contact with corporate world
 Strong shareholder support

15.  Higher overheads
 Lack of marketing competence
 No personalised relationship with individual
traveller
 Small network within India

16.  Higher growth rate of leisure travel
 Rising affluence of Indian middle class
 Holiday abroad – status symbol
 Overlap between corporate and leisure travel
 More money
 More leisure time
 Need for greater Work-life balance

17.  Entry of other MNC services
 Lateral competition from Timeshare resorts
 Low cost operators in unorganised sector
 Generic competition
 Cost cutting in organisations

18.  Core businesses – leisure travel, forex,
business travel, card products
 Opened offices in Sri Lanka, Mauritius
(SAARC) region

19.  “ CLICKS & BRICKS” – business model in
which a company integrates both offline
(bricks) and online (clicks) presence,
additionally telephone support.

20.  Thomas Cook started a new internet services
division.
 Destination guides, Maps, travel tips,
weather.
 Also, a study abroad guide
 Travellers choose from a range of holidays,
tours, cruises, weekend packages and special
airfares.

21.  Services can be purchased on line. Customers
have a choice of 60000 hotels world wide
 Travellers cheques, currency notes, drafts,
forex – all these can be ordered online for
home delivery, along with travel insurance
that can be made available on line.
 24 x 7 call center at Chembur, highly
technology intensive.
 Video Conferencing facilities too.

22.  What strategies should Thomas Cook adopt
to become market leader ?
 What are the opportunities available ?
 How can they exploit opportunities in
growing leisure travel business in India ? Is
advertising only in print media, the right
approach.
 Compare the pros and cons of advertising
versus direct sales.