Вы находитесь на странице: 1из 51

PTS- 06

REPORT

ENROLLMENT NO. 076413680

PROJECT REPORT

KUONI DESTINATION MANAGEMENT:

Expect More
Project on Tourism Marketing and operations

School Of Hospitality And Tourism Year 2011-2013 Submitted By Vishv Dev Singh

PTS- 06

REPORT

ENROLLMENT NO. 076413680

No.1 in Outbound No.1 in Destination Management No.1 in India Rs. 2,200 Crores Sales 620 Office & Branches 3200 Employees

PTS- 06

REPORT

ENROLLMENT NO. 076413680

TABLE OF CONTENTS 1. Introduction 2. Methodology 3. Executive Summary 4. Industry Profile 5. Special Forms of Tourism 6. Types of Tourist 7. Marketing Mix 8. Pest Analysis 9. SWOT Analysis of Tourism in India 10. Company Profile 10.1 KUONI India No. 1 Holiday Company 11. KUONI Brand 11.1 KUONI World Famous Tours 11.2 KUONI Do-it-Yourself Holidays 11.3 KUONI Holidays of India 11.4 KUONI Travel India 11.5 KUONI Travels and SOTC Tours 11.6 KUONI Holidays Over 100 years of experience 11.7 KUONI Holidays Worldwide holidays 11.8 KUONI Holidays Brochure List 11.9 KUONI Specialist Holidays 12. Competitor 13. Outbound Tourism 14. Types of Passport 15. Types of Visa 16. Currency Regulation 17. Travel Tax 18. Formalities 19. Conclusion 20. Research

PTS- 06

REPORT

ENROLLMENT NO. 076413680

1. INTRODUCTION

The training was carried out as a partial fulfillment of my MBA degree under JAMMU UNIVERSITY.

The project has been carried out at KUONI, Gurgaon. My project was based on the study of find out the potential and awareness of KUONI brand as well as creating awareness amongst the people of NCR region and understanding the whole process of booking .

PTS- 06

REPORT

ENROLLMENT NO. 076413680

2. METHODOLOGY

The methodology of my assignment was purely based on personal observation as well as interaction and discussion with the executive of the KUONI Gurgaon.

STUDY AREA: Present study has been carried out at KUONI Franchises, Gurgaon.

NATURE OF DATA: Primary Data: The primary data has been collected through personal observation as well as through both open and closed ended questionnaires with customer and the executive of KUONI. Secondary Data: The secondary data has been collected from the company information system.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

3. EXECUTIVE SUMMARY

This is a project which has been carries out at KUONI, Gurgaon. The project is conducted on Study of awareness about KUONI brand, a topic which was assigned by the KUONI authority.

In this project we have collected both Primary and Secondary data. The Primary data was collected through questionnaire and personal observation and the Secondary data was collected from the KUONI information system.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

4. INDUSTRY PROFILE

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-Lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry Tourism is one of the worlds fasted growing industries at present and holds the status of the worlds no. 1 industry. Spending on tourism amounts to 5%-10% of total consumer, spending in a year worldwide. The industry creates a job every 2.4 seconds with every one of those direct jobs creating another 11 indirect ones. The tourism industry as a whole is presently estimated to earn over US$ 3.5 trillion worldwide. Indias share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India. The tourism industrys foreign exchange earnings in India are around $3.2 billion. Tourism is the highest foreign exchange earner if we consider the fact that net value addition in Gems and jewellery is less than 30% whereas, in tourism it is more than 90%.

Recent statistics have revealed that during the first quarter of 2006, the the tourism industry has been very encouraging which has foreign tourist arrivals.

performance of

registered an 11% increase in

PTS- 06

REPORT

ENROLLMENT NO. 076413680

India Tourism office at Tokyo won two International Awards in Tour Expoheld at Daegu in Korea for excellent tourism promotion. Indian Pavilion won the Best Booth Design Award as well as Best Folklore Performance Award competing with major players in tourism such as china, Japan, Thailand, Malaysia and Canada.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

5. SECIAL FORMS OF TOURISM

For the past few decades many forms of tourism are becoming more popular, particularly: ADVENTURE TOURISM This type of tourism involves travel in rugged regions, or adventurous sports such as mountaineering and hiking (tramping).

CULTURAL TOURISM It includes urban tourism, visiting historical or interesting cities, such as Delhi, Amritsar, Mumbai, Bangalore, Chennai, Ahmadabad, etc. and experiencing their cultural heritages. This type of tourism may also include specialized cultural experiences, such as art museum tourism where the tourist visits many art museums during the tour, or opera tourism where the tourist sees many opera or concerts during the tour.

EDUCATIONAL TOURISM It may involve travelling to an education institution, a wooded retreat or some other destination in order to take personal-interest classes, such as cooking classes with a famous chef or crafts classes.

GARDEN TOURISM It means visiting botanical gardens, famous places in the history of gardening, such as Versailles and the Taj Mahal.

HERITAGE TOURISM It is visiting historical to (Rome, Athens, Cracow) or industrial sites, such as old canals, railways, battlegrounds, etc,

PTS- 06

REPORT

ENROLLMENT NO. 076413680

HEALTH TOURISM It means usually to escape from cities or relive stress, perhaps for some fun in the sun etc. often to health spas

MEDICAL TOURISM It is used for advanced care that in not available in ones own country, in the case that there are long waiting lists in ones own country for use of free or cheap health care organizations for what is illegal in ones own country, e.g. abortion, euthanasia; for instance, euthanasia for non-citizens is provided by Dignitas in Switzerland.

HOBBY TOURISM Tourism alone or with groups to participate in hobby interests, to meet others with similar interests, or to experience something pertinent to the hobby. Examples might be garden tours, square dance cruises, etc.

POP-CULTURE TOURISM This tourism refers to tourism by those that visit a particular location after reading about it or seeing it in a film.

PERPETUAL TOURISM Pilgrimage tourism refer to ancient holy place (Rome and Santiago de Compostela for Catholics, Temples and stupas of Nepal for the Hindus and Buddhist, Mount Athos or Painted churches of northern Moldavia for the orthodox), religious sites such as mosques, shrines etc.

SPORT TOURISM Skiing, golf and scuba diving are popular ways to spend a vacation. Also in this category is vacationing at the winter home of the tourists favorite baseball team, and seeing them play every day.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

ECO TOURISM It means sustainable tourism which has minimal impact on the environment, such as Safaris (Kenya), Rainforests (Belize) and Hiking (Lapland), or national parks.

GAMBLING TOURISM This tourism refers to tourism to Atlantic City, Las Vegas, Macau or Monte Carlo for the purpose of gambling at the casinos there.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

6. TYPES OF TOURISTS

One such way of classifying the users is by dividing them into categories such as general, Sex, Region, Education, etc. General: Domestic, Foreign Kids, Teens, Youths, Seniors Students, Executives, Artists Politicians, Movie stars Sex: Men, Women Region: Rural, Urban Education: Literate, Illiterate Status: Rich, Poor Profession: Executives, Academics, Sportsmen, Artists Occupation: White collar, Blue collar. Another method of classifying of tourism services is on the basis of the frequency of usage of services: Non-users: They lack the willingness, desire and ability (income & Leisure time). Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse. Actual Users: They are already using the services generated by the tourist organizations Occasional Users: They have not formed the habit of traveling Habitual Travelers: They have formed a habit and avail of the services regularly.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

7. MARKETING MIX

Product Product is the combination of tangible and intangible elements. The tourism product, which is mainly the destination, can only be experienced.The views of the location travel to the destination, the accommodation and facility as well as the entertainment at the destination all form the tourism product. Thus it is a composite product combination of attraction, facilities and transportation. Each of these components has its own significance in the product mix and in the absence of even single components, the product mix is incomplete. Price Pricing in tourism is a complex process. Pricing includes the prices of other services like Air travel, Bus, Railways, Hotels, etc. All are included in tourism package. Pricing also depends on the Geographic location of the destination. Pricing also depends on seasonality. Seasonality is the most important factor in pricing. To match demand and supply tourist managers try to get either discount. E.g. Taj is the tourist attraction in India. Pricing is also based on competitors pricing. Pricing is also subject to government regulations. E.g. Air price changes tourism package also changes, if Hotel charges change then also tourism package changes. Pricing of the tourist product is a complex matter because of its composite nature. Geographical location of the destination affects the pricing decision. At the same time, seasonality factor and varying demand cannot be overruled. The objective of pricing in any other firms is to fetch a target market share, to prevent competition, and to take care of the price elasticity of demand. A very important way, in which the travel and tourism business responded to their highly complex pricing circumstances, is to operate at two levels. The first

PTS- 06

REPORT

ENROLLMENT NO. 076413680

level is corresponds with the marketing strategy, which concerns with the product positioning, value for the money, long run return on investments etc. The second level corresponds to the marketing operations or tactics where the prices are manipulated to match the current demand and competition. Place Different distribution strategies can be selected for Tourism marketing Tourism as a product is distributed as a travel. Internet is also used widely. There is an also small agent spread all over the town who plays a role of place. Large travel companies like Thomas Cook, Cox & Kings, KUONI, etc they act as a wholesalers and these wholesalers also act as a retailer. The tourism marketer may not have adequate choice of the tourist center, because in most of the case the tourist destinations many be natural, historical attraction. But, infrastructure facilities, transportation, communication are important for the development of the tourist center. The major decision that the tourism marketer takes regarding distribution is relating to the channel of choice and channel members. The uniqueness of tourism industry is predominant position of intermediaries. The two major functions performed by the distribution system in tourism marketing are: To extend the number of points of sales or a access, away form the location at which services are performed or delivered To facilitate the purchase of service in advance Different distribution strategies may be selected to reflect the companys overall objectives. The middleman may be tour operators , who buy tourism products in bulk and make them available to travel agents who are retailers. The range of tourist products, which are bought by the tour operators are airline seats, hotel accommodation, bus for local sight seeing, etc. they may also sell directly to customers. The latest mode of reaching the tourist is through Internet. Ticket booking can be done through the Internet and payment is made with credit card.

Promotion

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Advertising and sales promotion in Tourism can be very effective when supplemented by publicity and personal selling. They use electronic, print all sorts of media they use; and it is highly promoted industry. Public or PR (Public Relation) plays an important role in tourism, It is also through recommendation of friends and relatives this is a biggest promotion. Creation of awareness is an important factor in the formulation of marketing mix for the tourism industry. The promotion task simplifies the activities of informing. Persuading and influencing the decisions of potential tourists. The promotion mix plays a vital role as the users of service feel high degree of involvement and uncertainty about the product and their role in buying process. Some of the important and Public relation. Advertising and sales promotion activities in tourism can be very effective when supplemented by publicity and personal selling. Advertising messages may range from subtly attractive visual message and symbols designed to appeal and stimulate travel desire and needs to simple sales announcements drawing attention to specific product offers. World-of-mouth is a very important tool of promotion in tourism. Research shows that about 80% of the tourist visited different places on the persuasion of their friends and relatives and also their own judgments. Brochures are another form of communication provided by tour judgments. Brochures are another form of communication provided by tour operators to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the images and positioning of the product and the organizations. People It plays a most important part in tourism. In people local people are very important, that how they treat tourist. The travel agents, guides, staff of travel companies, sales staff, etc they are the people. Travel Company also like Railways, Air, etc. is included in people. Normally a tourist assures a tourism quality like hotels, Travel Company. The personnel who attend to the needs of the tourist form an essential ingredient in tourism marketing. The sales personnel are responsible for dealing with the customer behind the counter. The airline and transportation crew interact with customers while traveling. The resort of hotel representatives enter to the needs of the tourist when they reach the destination.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

The tourist guides, who interact with the customers at the tourist location, all form the people element in tourism marketing. These contract persons must be trained on interpersonal skills as well as knowledge of the product. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. Hence it is imperative that they have to be at their best at all times travel guides especially, are expected to have a lot of patience, good sense of humor, tact to transform the occasional tourists into habitual ones, thorough knowledge of the places, linguistic skills etc. Process The operation process of the tourism firm will depend on the size of the tourism firm. The sequential steps involved in the delivery of the tourist products are: Provision of travel information------- The information regarding the travel is provided at a convenient location where the potential tourist seeks clarification about his proposed tour. Preparation of itinerates -------- It is a composition of series of operations that are required to plan a tour. Liaison with providers of services ------- Before any form of travel is sold over the counter to a customer; contracts have to be entered with the providers of various services including transportation companies, hotel accommodation, coaches for local sightseeing etc. Planning and costing tours ------- Once the contracts and arrangements are entered into, then the task of planning and costing the tour, will depend on the tour selected as well as individual requirements. Ticketing ------ The computerized reservation system has in recent years revolutionized the reservation system for both rail and air travel. Provision of foreign currency and insurance ------- In case of foreign travel the final task provide foreign currency as well as insurance

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Physical Evidence The tourist attraction, which is an expensive for the customer must be tangibilised with the help of tangible items like, comfortable seats while traveling, layout, and design of the resort, natural service scope, etc. the sigh posts that indicate directions, route maps, information regarding rules and regulations of the tourist spot and the sign regarding the public utilities like toilets, telephone booth also form a part of the physical evidence.

Printed matters such as brochures also play an important role in the development of tourism, as the product, in tourism is intangible. There is a need to describe fully the product, which is done by providing an elaborate brochure, which shows how different element of the programmers are carefully planned to include all necessary information to make holiday establishes expectation of quality value for money, product image and status, which must be matched when the product is delivered.

Segmentation Though there are a number of bases for segmentation of tourists, one of the most important is Lifestyle. Traveling decisions are fantastically influenced by changing lifestyles. They are also affected by other factors such as level of income, availability of leisure time, etc.

Base of Segmentation Holiday

Categories Mass market Popular market Individual market

Demand

Primary Secondary

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Opportunity Geography International On the basis of regions, cities, etc. Psychographic Lifestyle Personality motive Knowledge Demography Age Sex Religion Socio-economic Rich, Poor Rural, Urban Literate, Illiterate Purpose Business Travel Cultural Tourism Common Interest Convention Age Teens Youth Seniors

Such segmentation is useful when deciding the offerings to target a particular segment. For example. The mass market consists of vacation ists that travel in large groups and prefer all-inclusive tours, they are generally conservative. The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This group includes pensioners and retired people. The individual market consists of chairmen, senior executives, etc. As the lifestyle changes, consumption of services might change. For example, a newly married couple might prefer romantic holidays, but once they have children they would prefer family

PTS- 06

REPORT

ENROLLMENT NO. 076413680

vacations where there are plenty of activities to entertain kids. Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations.

8. PEST ANALYSIS

Environmental influences can be analyzed by using the PEST analysis. Political The political factors are the main driving force of the industry. The Indian tourism industry is built on the backbone of government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry, the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government. The major reason as to why tourists visit India is for the vast and rich heritage that our country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges high rates of taxes on the luxury and the star category hotels and this always been a cause of disagreement between the hotel associations and the Government. There are many areas where the growth of tourism has not been rapid or has seen dramatic fall because the political environment has not been conducive. Examples are the North East for the former and Kashmir for the latter. The neglect of the Government in developing the North-East has led to a situation where there is practically no tourism in the seven states. Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual decimation of the flourishing tourism industry. However,

there has been a change in many of the policies of the Government with regard to the tourism industry. The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Economic: The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world. Since we are concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has led to a tourism boom the world over and India has been no exception. There have been more people coming into the country with more cash than ever before. This has lead to an increase in the demand for better hotels. People who previously used to come to the country on a shoestring budget and hunt around for the cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in the number of hotels in the country. However, an increase in spending does not only limit itself to accommodation. The increase in the spending is also evident in the increase in the number of people traveling by air. Even the number domestic tourists traveling by air has dramatically gone up. Social: Tourism was always looked upon as something that led to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60s to the early 80s when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state. This had a ripple effect on the country. People became cautious, especially of the international tourists. Whenever a certain place became famous, the example of Goa was cited to discourage the inflow of international tourists. However some places such as kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

In addition, tourism as a form of recreation has really caught on. People themselves have started traveling and are willing to travel to a place that is out of the way and exotic. While traditionally traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for adventure tourism and also visit places that might be exotic and cannot really be called hospitable. For example, now places like Leh and Lakshwadeep are mentioned in the same breath as Goa or Kashmir. Technology: A lthough technology does not seem to be a major influence at first glance, it plays a major part in the promotion of place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Improved technology in the field of communication at cheaper costs has resulted in many remote and inaccessible areas of the country getting connected to the rest of the world. This connectivity has made these places visible to the world. Better communication means access to media. And that is very important if any place wants to be on the world tourist map. Similarly better transportation facilities have lead to a dramatic increase in the number of tourists visiting any particular place. The presence of an airport and the availability of frequent flights are a great convenience to any traveler.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

India: Tourism Revenues and Expenditures 1997-2008 ---------

PTS- 06

REPORT

ENROLLMENT NO. 076413680

9. SWOT ANALYSIS OF TOURISM IN INDIA

Strength: Indias geographical location, a culmination of deserts, forests, mountains, and beaches. Diversity of culture i.e. a blend of various civilization and their traditions. A wealth of archaeological sites and historical monuments. Manpower costs in the India hotel industry are one of the lowest in the world. This provides better margins for the industry. A very wide variety of

hotels is present in the country that can fulfill the demand of the tourists. There are international players in the market such as Taj and Oberoi. Thus, the needs of the international tourists and travelers are seen to while they are on a visit to India. Weakness: Lack of adequate infrastructure. The airlines in India, for example, are inefficient and do not provide basic facilities at airports. The road condition in India is very bad. A xenophobic attitude among certain sections of people. No proper marketing of Indias tourism abroad. Foreigners still think of India as a land of snake charmers. There are many places where the image of India is one of poverty, superstition, and diseases. The case of plague in Surat in 1994 led to a decrease of 36% in arrival of foreign tourists in India. Opportunity: More proactive role from the government of India in terms of framing policies. Allowing entry of more multinational companies into the country giving as a global perspective. Growth of domestic tourism. The advantage here is that domestic tourism and international tourism can be segregated easily owing to the diffierence in the period of holidays. Threat:

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Economic conditions and political turmoil in other countries affects tourism. Political turbulence within India in Kashmir and Gujarat has also reduced tourist traffic. Aggressive strategies

adopted by other countries like Australia, Singapore in promoting tourism.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

10. COMPANY PROFILE

10.1 KUONI India No. 1 Holiday Company Kuoni Travel Group, India was formed in 1996 through the acquisition of SOTC, India's foremost outbound package tour brand; with a vision to provide all travel and travel-related services to travellers to, from and within India. Between 1996 and 2000, Kuoni India registered prolific growth with an eight-fold increase in profit and consolidated its position as the uncontested leader in India's Outbound market. The company further strengthened its position with the launch of Kuoni Holidays - Indias only travel brand focused exclusively on the premium segment - in January 2006.In 2000, to diversify its business, Kuoni India acquired SITA World Travel, a forerunner in Destination Management, incentive and business travel market In 2001, the strategic acquisition of Tour Club, India's principal destination manager in the Middle East, further strengthened Kuoni India's leadership position in the Inbound travel segment. In June 2006, Kuoni, India acquired Distant Frontiers, a specialist focusing on the FIT Iindividual travel market) and MICE (Meetings, Incentives, Conferences & Exhibitions) segments and consolidated its position as Indias No.1 Destination Management company.

Kuoni launched VFS, its visa services arm, in July 2001 as an outsource partner of diplomatic

PTS- 06

REPORT

ENROLLMENT NO. 076413680

missions with one customer and three offices. Today, VFS Global is a worldwide leader in the visa services business, with operations in 18 countries and 135 offices. Among the top three in India, Kuoni Indias Business Travel activity has been re-launched as HRG SITA India effective from January 2007. HRG, with whom a strategic alliance has been formed, is a global giant in the business travel segment.Today, Kuoni India is active across virtually every travel segment and operates a number of highly successful brands in India as also controls strategic markets around the world. The brand portfolio includes SOTC in the Leisure segment; HRG Sita India in the Business Travel segment; Kuoni Destination Management in the Incoming Services segment; and VFS in the Visa services segment. The company employs over 3,200 travel professionals and its annual turnover has crossed Rs.2200 crore.Kuoni India's vision focuses on providing all travel and travel-related services to travellers from, within and to India.The company is deeply committed to the Indian travel industry.

Among other initiatives, it launched the Kuoni Academy of Travel in 2003 in an endeavour to offer world-class education and training for young aspirants in the travel and tourism industry. Currently, the Academy has 6 centres across India and in March 2007 has launched its first centre outside India, in Guangzhou, China. In 2001, it supported the Mumbai Police to launch the nations first police force dedicated to the safety and well-being of tourists the Tourism Police and continues to support this endeavour . It has partnered with the Municipal Commission of Greater Mumbai and separately with India Tourism in garbage awareness clean-up initiatives.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Kuoni India's most important asset is its people and the company is committed towards building 'A Fellowship of Winners'. An environment of inspiration, motivation, creativity, training and unparalleled performance ensures that over 3,200 employees at Kuoni India offer the best of service to all their customers, and achieve exceedingly high levels of customer delight.In the recent past, Kuoni has added many feathers to its cap. Like, the Government of Indias National Tourism Award (for Destination Management Services) for 2005-2006. This is the 5th consecutive and overall the 17th year that it has been honoured with this prestigious award. For the 3rd consecutive year, it received the Galileo Express Travel World Award for Best Outbound Tour Operator and for the 4th consecutive year, the Galileo Express Travel World Award for the Best Inbound Tour Operator (Destination Management) for 2005-2006. Outlook Business magazine (Feb 2007) recognized Kuoni India as one of Indias top ten unlisted companies Kuoni was presented the highly prestigious Worlds leading tour Operator 2006 award Worlds leading tour operator at WTM, London in November 2005. The world Travel awards, which are bestowed for exceptional services in the travel sector, have evolved into one the industrys most important annual events over the past few years. The awards are voted on by thousands of travel sector specialist from over 80,000 agencies in more that 200 countries. And winning one is clear confirmation of a companys excellence within the travel sector.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

11. KUONI BRAND

11.1 KUONI World Famous Tours KUONI World famous tours are the flagship brand of KUONI, which pioneered the designing and marketing of escorted tours for cosmopolitan travelers in India. KUONI World famous tours has escorted over 3,00,000 travelers across the globe for more than 30 years, to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100% subsidiary of Kuoni travel Holding, Switzerland- one of the worlds largest travel companies KUONI leverages the advantage of the buying power and travel services to provide customers value for money packages. KUONI has built a reputation that it lives up to its promise to take Indians around the world, while making them feels completely at home, no matter where they are. 11.2 KUONI Do-it-Yourself Holidays KUONI Do-it Yourself Holidays caters exclusively to the needs and requirements of the discerning Free Individual Traveler. It offers a wide range of customized holidays that allows individual travelers the freedom to define their preference of the destination, length of stay and pace of travel Following high-quality standards, KUONI Do-it-Yourself Holidays have ensured accommodation at some of the worlds finest hotels allowing for proximity to city centre attractions such as shopping malls, pubs, cafes, restaurants and scenic delights. An individual traveler on KUONI Do-it-Yourself Holidays has the option to explore all the attractions of a single city. Or focus on all key cities of a particular country. They can even combine two to eight countries in their holiday, depending on their tastes.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

11.3 KUONI Holidays of India Family Holidays

Holiday in India and let your senses be stimulated by the fragrant spices and colourful saris, marvel at the magnificent temples and enjoy the festivals and fairs that are an integral part of India life. From the buzzing cities and architectural wonders of the Golden Triangle in the North to the scenery and serenity of Kerala in the South and from tiger sanctuaries and national parks to colonial hill stations and tea plantation, a holiday to India leaves a lasting impression. The splendours of Rajasthan including the colonial grandeur of Delhi, the legendary Pink City of Jaipur, the enchantingly beautiful jodhpur and Jaiselmer, rising sheer from the desert sands. The Taj Mahal in Agra, the most sublime monument to love ever created and possibly the Worlds most beautiful building. Goa, Indias smallest state of Portuguese colonial culture, World Heritage listed architecture and natural wonders, from aromatic spice gardens to breathtaking India Ocean beaches. SOTC Holidays of India is a division of Kuoni Travel (India) Pvt. Ltd., Indias Largest Travel and Tourism Company. A market leader in its field, this division markets and operates foreign holiday packages under the KUONI World famous tours brand in the big NRI markets of the

PTS- 06

REPORT

ENROLLMENT NO. 076413680

middle East, USA and UK. It currently operates from 120 sales points across India and boasts of more than 250,000 loyal customers. KUONI Holidays of India offers packages that cover every conceivable tour requirement whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break KUONI Holidays of India offers you an opportunity to visit and explore all the splendors of India through various categories of holidays packages Classic Holidays of India are time tested popular attractions like Kashmir, Himachal, Rajasthan and Kerala those have proved their ability to completely satisfy the traveler Fun-filled Beach Holidays offers not just sun and sand but also cool lagoons, clear waters, corals, reefs and beach resorts, Hill Stations & Quick Getaways offer a break through a multitude of retreats at a short distance from home. Spiritual Retreats to Rediscover your Soul provide excursions to various spiritual and hallowed sites . KUONI Holidays of India has categorized all holiday packages into Standard, First and Deluxe Class categories. 11.4 Kuoni Travel India Kuoni India will rediscover India with its beautiful destination. Kuoni India will mesmerize you and you will be relaxed. Kuoni travel will take you to the beautiful sunshine between the Himalayas or sunset to the middle of the sea. Kuoni travel gives you the chance to sail in the beautiful scenery whether you are a beginner or an experienced one. Kuoni travel teaches you to ride the playing waves. Kuoni India also gives you the opportunity of mountain biking in the mountains of Leh. Kuoni India travel is a guide for you in the heights. Kuoni travel gives a boost to Indian tourism as they get to know that India has a great potential for good vacations. Kuoni India helps foreigners to discover the diversity of India. Kuoni India gives the chance to the travellers to discover the unknown places of India. Kuoni India has the potential to attract tourists whether interested in cultural exploration, pilgrimages, adventurous tour, or to visit beautiful beaches and the scenic mountains. Kuoni

PTS- 06

REPORT

ENROLLMENT NO. 076413680

travel brings light to Indian states and cities. Kuoni travel explores the geographical and cultural wealth of India. Kuoni India provides you the path for all major tourist destinations in India. Kuoni India takes care of all your needs when you are in India. Kuoni India shows you the wealth in tourism of India. Kuoni travel will help you if you want a holiday in India. Kuoni travel will provide you with best of accommodation and hotels in India. Kuoni travel will provide you with events information and can help you to get tickets in India. Kuoni travel will guide you if you are only interested in travelling India. Kuoni India will guide you with many travelling options within the country. Kuoni India will help you to explore beautiful India with its mysteries and that can only be done if you visit the ancient Landscapes. Only one thing will take you across 5,000 years of culture and tradition that is Kuoni India. Kuoni travel has an excellent range of holidays for you. 11.5 Kuoni Travels and SOTC Tours You can travel to Thailand, the city of smiles with SOTC tours. Kuoni travels will take you to the fascinating culture of Bangkok city, down to the Buddhist temples. SOTC tours relax you on the beautiful beaches of Ko Samui and Phuket. Kuoni travels gives you experience for delightful flavours, mouth-watering cuisine and scents of coconut with a little bit of spice. Kuoni travels take you to the exciting destination of Dubai, which have the most luxury hotels of the world. SOTC tours offer the top 30 hotels of Dubai in their packages, which include the Burj Al Arab, The Sheraton Deira, and Hilton Dubai Jumeirah Resort; they have been embedded by the famous architecture of Islamic culture. SOTC tours are looking forward to give you the best package which could not be found anywhere else. Travel with Kuoni travels around the world at cheap fares. SOTC tours give you the opportunity to have challenging and adventures experience in low budget. Kuoni travels make it easier to spend time and collect memories with family and friends. Run out for the beach holidays this summer with Kuoni travels, one holiday that you will always remember. If you opt to have holidays with Kuoni travels you will find the blend of nature with mountain biking, skiing, river rafting, and sailing. SOTC tours will help you to see the most beautiful

PTS- 06

REPORT

ENROLLMENT NO. 076413680

holiday resorts of the world. Kuoni travels give the opportunity to learn something more for a professional relaxed holidays. SOTC tours make you enjoy your tour at every point of age. You can enjoy with Kuoni travels at every moment of life. SOTC tours have many packages which will suit your choices. SOTC tours packages for action holidays as well as relaxing holidays. SOTC tours packages not only stop here it have packages for romantics also. If you believe to visit the religious place you feel for and then come to SOTC tours. Now it is easy to choose holidays of your kind with SOTC tours. Kuoni travels will take you to your dream place as you choose your holidays.

11.6 Kuoni Holidays Over 100 years of experience With more than 100 years of expertise, it's no wonder Kuoni is regularly voted as Britain's favourite holiday company. Kuoni Travel Ltd has grown into not only the largest travel company in Switzerland, but also one of the leading travel organisations in the world. Kuoni in the UK is a wholly owned subsidiary of Kuoni Travel Ltd in Switzerland. The choice of Kuoni holiday options is endless, with all inclusive holidays, beach holidays, city breaks, cruise holidays, diving holidays, escorted tours, family holidays, fly-drive holidays, golf holidays, villas, safaris, singles holidays, ski holidays, weddings & honeymoons and many more all with dedicated and skilled staff ready to help in all areas. For the last 21 consecutive years British travel agents have voted Kuoni "The Best Longhaul Tour Operator in Britain". Daily Telegraph newspaper readers voted Kuoni the title of 'Best Major Tour Operator' and for the last five years Kuoni have won the World Travel Award for the World's Leading Tour Operator. In 2003 Kuoni won Cond Nast Traveller - Readers' Travel Awards for Favourite Tour Operator.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

11.7 Kuoni Holidays Worldwide holidays Curise @ Train

Kuoni holidays are available to almost 100 countries throughout the world, including Africa, the Indian Ocean, Australasia, the Caribbean, Central & South America, Europe, the Far East, North Africa, the Middle East, USA & Canada. Other destinations include Botswana, Zimbabwe, Mombasa, Nairobi, Namibia, Safaris, Seychelles, Mauritius, South Africa, Zanzibar, Belize, Brazil, Argentina, Costa Rica, Galapagos, Ecuador, Mexico, Peru Tours, Antigua, Aruba, Bahamas, Barbados, British Virgin Islands, Cayman Islands, Cuba, Grenada, Jamaica, Nevis & St Kitts, St Lucia, Tobago, Turks & Caicos, Australia & New Zealand, Bali, Lombok, Burma (Myanmar), Cambodia, China, Hong Kong, Japan, Kuala Lumpur, Kuala Lumpur & Beach, Kuantan, Borneo, Langkawi, Pangkor, Penang, Singapore Multicentre, Singapore & Sentosa, Thailand, Vietnam, Goa, India, Nepal, Maldives, Sri Lanka, Dubai, Egypt, Jordan, Lebanon, Oman.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

11.8 Kuoni Holidays Brochure List

Kuoni have a selection of more than 25 superb brochures, showcasing thousands of holidays to hundreds of exotic destinations on seven continents, and covering every holiday interest from relaxing beach getaways to escorted cultural tours, or from overseas weddings to wildlife safaris. Kuoni holidays brochures include Worldwide 2008 & 2009, World Class 2008, World Class Europe 2008, Ski Holidays

Weddings 2008 & 2009, Tropical Sun 2008 & 2009, Americca & Canada 2008/2009, Florida 2008, China 2008, Morocco 2008, Lakes & Mountains 2008, Indochina 2008, Africa & Indian Ocean 2008, Italy 2008, Seychelles 2008, Australia, New Zealand & South Pacific 2008/09, Egypt 2008, Selections 2008, Dubai 2008 and Snow 2009. Kuoni Sport Abroad holiday brochures include Monaco Grand Prix 2008 and Rugby 2007/08. Kuoni Holidays ATOL number is 0132. Kuoni Holidays is a member of the Association of British Travel Agents.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Kuoni Holidays is currently in the process of reviewing its corporate strategy following the news of last month's merger of TUI Travel and First Choice Holidays reports Swiss finance magazine Bilanz. It is reported the main focus will be on the Swiss tour operator's volume business and distribution channels as well as the future of its Edelweiss airline. Exotic Beach Holidays

The proposed merger between TUI and First Choice to create TUI Travel has been reportedly met with a mixed reaction at Kuoni Holidays after previous merger talks themselves and First Choice fell apart. Kuoni Travel, who have grown into not only the largest travel company in Switzerland, but also one of the leading travel organisations in the world. Kuoni Travel has diversified into Voyages Jules Verne, Travel Collection and Sport Abroad but specialise in the long haul tour operation market to destinations throughout Europe, Africa, Asia and America. Kuoni holidays are available through directline-holidays.co.uk.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

First Choice Holiday

KK

11.9 KUONI Specialist Holidays Charity challenges

Kuoni has been organizing charity activity travel since 2000. Take advantage of Kuoni's experience and expertise, and achieve your fund-raising goals.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Music holidays

Book a music holiday and see some exciting musical performances at some of the worlds most incredible opera houses and music venues. Private villas

Choose a relaxing holiday in a private villa. Visit the Greek islands, Europe, the Caribbean, Asia and many more exotic locations across the world.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

12. COMPETITOR

Cox & Kings is the longest established travel company in the world. At present, the COX & KINGS group has office in UK (2 offices), USA, Japan, Germany Italy, Turkey, Pakistan and Nepal. In India, Cox & Kings has office in Mumbai, New Delhi, Chennai, Bangalore, Calcutta, Ahmedabad, Cochin, Hyderabad, Pune, Goa and Jaipur and one satellite office in Andheri in Mumbai and Gurgaon.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Thomas Cook in one of the worlds leading international travel and financial services groups and serves over 20 million customers a year. They

provide services to customers at 4,500 locations in more than 100 countries and employee over 20,000 people. The Thomas Cook Holiday comes with a 150-year-old guarantee of eternally sunlit memories. They couldnt expect any less from the people who invented travel for leisure. They offer the worlds most enjoyable holidays, to exotic destinations in India and abroad where everything is taken care of from beginning to end. Established in 1984, Kesari Tours is a premium travel company, which offers world-class holidays in India and around the world. Kesari have perfected their tour itineraries to meet the special needs of the Indian tourist abroad. The motto of organization is No compromise on quality At Kesari Tours. They have made a motto that if they make a promise to their customers, they honor it. They believe in honest, transparent deals No hidden costs and no compromise on sightseeing. They strive for 100% satisfaction of tourists. The company enjoys an immense good will. Thats what they earned out of their beliefs.

A Passion for Travel & a vision for creating innovative travel packages were the two driving forces saw the beginning of a Travel of a Travel Company in a very modest way in Mumbais Masjid Bunder.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

The tremendous success & satisfaction of their tours paved way for Raj to hold its banner high & it continues to do so till date. They are proud to say that year after year they have improved on the product ,adding new destinations, new attractions, Pro-active marketing, & building customer confidence.

Latest Trends in Outbound Tourism India society is increasingly being driven by consumerism. Foreign holidays are becoming more of an aspiration. As a result, the society-conscious Indian is making an international holiday an essential part of his/her annual plan. As the average Indians spending power has gone up, so too has his interest in overseas travel and the willingness to spend money the rise in disposable incomes has led to move families opting for annual foreign holidays with a large number of international airlines entering the Indian skies, there has been a rise in capacity. Air fares too have become more competitive, thereby benefiting the customer. Over the last few years, there has been stability in tour prices and increase in value-added offers such as Holiday now, Pay later Take your Partner Free Holiday Vouchers, etc. So overall, a booming economy, affordable air fares, better connectivity, increased scat capacities, and a prospering middleclass have together contributed to the large number of holiday-seekers.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

13. OUTBOUND TOURISM

Outbound Tourism Outbound Tourism is growing at the rate of 25% touching 6.2 million in 2006-07 booking increased to 30% compared to the corresponding period in the previous year Domestic tourism has also witnessed an annual growth of 20% from 2006 to 2007. Popular Segments Two segments in domestic tourism which have been showing exceptional upward turn are Medical tourism and adventure tourism. India is rapidly growing into a major health destination, targeting one million additional medical tourists by 2010. These arrivals are expected to increase foreign exchange up to Rs.5000-10000 crore. India has also become Know for adventure tourism with the excellent facilities that it offers for water sports, Trekking, rock climbing, mountaineering, Aero sports, Safaris, Motor Sports etc. Two million tourists are participating in adventure tourism annually. The market is growing at 35% but given the right impetus, it can attract another half a million foreign adventure tourists and the domestic adventure tourism market can see a 10-fold growth in the next five years. Document Required for Outbound tour: Passport: A passport is a travel document issued by a national government that usually identifies the bearer as a national of the issuing state and requests that the bearer be permitted to enter and pass through other countries. Passport are connected with the right of legal protection abroad and the right to enter ones country of nationality. Passports usually contain the holders photograph, signature, date of birth, nationality, and sometimes other means of individual identification. Many countries are in the process of developing biometric properties for their passports in order to further confirm that the person presenting the passport is the legitimate holder.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

14. TYPES OF PASSPORT

1) Ordinary Passports are the normal passports issued to most citizens and have no special connotations. 2) Diplomatic Passports are issued to diplomats and diplomatic representatives of a home country, and other state employees according to the rules of a particular country. Having a Diplomatic passport does not necessarily accord the bearer diplomatic immunity. Same countries Visa requirements may have different requirements for Diplomatic and nonDiplomatic passport. 3) Official or Service Passport are issued to employees ( or Technical and Administrative Staff Members) of a government traveling for work related reasons who either do not qualify as Diplomats or are not entitled to Diplomatic Status under the Vienna Convention. 4) Special Passports are issued to high-ranking state officers and their dependents as a means of officially guaranteeing their sustenance to have them exempted from requirements. 5) A collective Passport may be issued, for example, for a school trip. All children on the trip would be covered by the group passport for the duration of the trip.

6) Internal Passports have been issued by some countries, as a means of controlling the movement of the population. Examples include the iqama in Saudi Arabia, the Soviet internal passport system, and the hukou residency registration system used in the People s Republic of China.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

7) Emergency or Temporary Passports are issued to persons whose original passport has been lost or stolen and who need to urgently travel. 8) Business Passports are passports with extra pages issued to frequent travelers. 9) Family Passports are passports that are not issued to individuals but to family units.

15. TYPES OF VISA

Visa: Is an authorized given by a state to a foreigner to enter its territory for a designated period and foe a special purpose. It is not equivalent to a passport and it differs in as much as it is issued by the country to which or through which the visitor will travel out not by the state of which he is a national.

Types of Visa: 1) - Tourist Visa Is given for 6 month normally; rest specifically depends on the country of residence. The applicant is required to produce/ submit documents in proof of his financial standing. 2) Business Visa is valid for one or more years up to 5 years with multiple entries. A letter from a sponsoring organization indicating nature of business, probable duration of stay, places and organization to be visited, incorporating therein a guarantee to meet maintenance expenses, etc. should accompany the application.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

3) Student Visa Are issued for the duration of the academic course of study or for a period of live years whichever is less, on the basis of firm letters of admission from universities/ recognized colleges or educational institution in India. Change of purpose and institutions are not permissible.

4) Transit Visa Are issued for a maximum period of 15 days with single / double entry facilities to passengers only. Visa To Missionaries Are valid for single entry and duration as permitted by government of India. A letter in triplicate from sponsoring organization indicating intended destination in India, probable length of stay and nature of duties to be discharged should be submitted along with guarantee for applicants maintenance while in India. Journalist Visa Are issued to professional journalists and photographers for visiting India. The applicant are required to contact on arrival in New Delhi, the external publicity division of the ministry of external affairs and in other places, the office of the government of Indias Press Information bureaus. Employment Visa Are issued to skilled and qualified professionals or person who are engaged or appointed by the companies, organizations, economic undertakings a technicians technical export, senior executives, etc. Applicants are required to submit proof of contract / employment / engagement of foreigner nationals by the company or organization. Initially granted for a period of one year, it can be extended in India up to the period of contract.

5)

6)

7)

PTS- 06

REPORT

ENROLLMENT NO. 076413680

8)

Collective Visa The facility also exists for the issues of collective visas to group tours consisting of not less than four members and sponsored by a travel agency recognized by the government of India. Such groups may split into smaller groups for visiting different places in India after obtaining a collective license to travel from the immigration authorities in

India. However, they must reassemble and depart as the original group.

16. CURRENCY REGULATION

There are no restrictions on the amount of foreign currency or travelers cheque a tourist may bring into India provided he makes a declaration in the Currency Declaration form given to him on arrival. This will enable him not only to exchange the currency bought in, but also to take the unspent currency out of India on departure. Cash, bank notes and travelers cheque up to US$ 1,000 or equivalent, need not be declared at the time of entry.

Any money in the form of travelers cheque, drafts, bills, cheques, etc. in convertible currencies, which tourists authorized money changers and banks that will issues an encashment certificates that is required at the time of recon version of any unspent money into foreign currency. Exchanging of foreign currency other than banks or authorized money changers is an offense under Foreign Exchange Regulation Act 1973.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

17. TRAVEL TAX

Foreign Travel Tax Passengers embarking on journeys to any place outside India from a customs airport/seaport will have to pay a foreign travel tax (FTT) of Rs. 500 and Rs. 150 o journey to Afghanistan, Bangladesh, Bhutan, Myanmar, Nepal, Pakistan, Srilanka and Maldives. No tax is payable on journeys performed by ship from Raeshwari to Talaimanar and in case of transit passengers, provided they do not leave the customs barrier. Transit sea passengers leaving the ship for sightseeing, shopping etc. during the ships call at any of the Indian ports will not be required to pay FTT

Exemption from registration Foreigners coming to India on tourist visa on 180 days or shorter period are not required to register themselves with any authority in India. They can move about freely in India, expect to restricted/protected areas and prohibited places. Nationals of Bangladesh are exempted from registration up to six months. If their stay exceeds six month, they have to register themselves. Individuals without nationality ( stateless persons; IRO refuges, persons receiving legal or political protection, holders of Nansen Passport etc.) should have valid passport, identify documents or sworn affidavits along with the visa for which they should apply two months in advance. Pakistan nationals are required to register themselves within 24 hours of their arrival with the nearest police station, Those holding a long-term multiple entry visas do not require Intended Departure Clearance from the city office when leaving the country. Accredited journalists are given the Intended Departure Clearance at the airport family passport issued by other governments are recognized without discrimination.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

Landing Permit Facility Tourists may note the no Landing Permit Facility is available to any foreign tourist landing without a visa. A limited facility exists only for groups tours consisting of four or more members and sponsored by a travel agency recognized by the Government of India. Children of foreigners of Indian origin below the age of 12 may be granted a landing permit by the immigration authorities up to a period of 90 days to see their relatives, in case they happen to come without a visa.

Tourist Groups A tourists group arriving by air, ship or by a chartered or scheduled flight may be granted a collective landing permit for a period of up to 30 days by the immigration authorities on landing, provided the group is sponsored by a recognized travel agency and a pre- drawn itinerary is presented along with details of passport etc. of the members, and travel agency gives an undertaking to conduct the group together.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

18. FORMALITIES

Arrival Formalities If the visa, for stay in India, is for more than 180 days, a Registration Certificate and Registration office within 15 days of arrival. All persons including Indian nationals are required to fill in a Disembarkation Card, at the time of arrival. Four photographs are also required for registration. The foreigners registered at Foreigners Registration Office are required to report change of their addresses.

Departure from India All persons, expect nationals of Bhutan & Nepal, leaving by air, road or rail have to fill in an Embarkation Card at the time of departure.

Exit Formalities Every foreigner who is about to depart finally from India shall surrender his Certificate of registration either to the Registration Officer of the place where he is registered or of the place from where he intends to depart or to the Immigration Officer at the Port/Check post of exit from India.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

19. CONCLUSION

In the short term, geopolitical events in the Middle East will largely determine the direction of travel stocks. We believe that a war with Iraq is - to a large extent - already in the share prices of travel companies. So if political tensions were to subside, shares like Kuoni and Tui would have above-average upside potential. However, the economy this year is not in any position to lend shares support. If private consumption were to deteriorate any further, we would expect this to slice into earnings performance. Also, structural problems are holding the industry back. In our opinion, tour operators have been rather lax about controlling capacities, so overcapacities are likely to remaina feature of this sector.

INVESTMENT CONCLUSION FOR TRAVEL COMPANIES

We only recommend stocks of travel operators to risk-aware investors who wish to take a punt on easing political Tension in the Middle East. A political resolution to the Iraq conflict or a brief, effective war with Iraq could send Prices of travel stocks much higher in the interim compared with other sectors.

CONCLUSION :HOTEL INDUSTRY

Prices of hotel stocks are expected to underperform other European sectors in 2003. Since 2002 conditions in the hotel industry have deteriorated. We expect demand for business travel (fewer conferences and fewer overnight stays) will continue to wane in the face of the poor economy. We assume that the downward pressure on prices in the business travel segment will increase as companies rein in corporate expense accounts. And since the hotel industry is a very capitalintensive business with relatively high fixed costs and little scope to cut expenses, increased price pressure inevitably leads to smaller margins. Hotel groups are likely to see their earnings fall further this year, and the top end of the market (four and five star establishments) will be

PTS- 06

REPORT

ENROLLMENT NO. 076413680

worst hit. In a difficult market environment, a high debt/equity ratio (= high interest burden) can be a serious competitive drawback (Hilton and Accor).

It will take an economic upswing to turn the situation around - but this is still nowhere in sight. We consider hotels to be late-cyclical stocks that only show upside price potential when a lasting economic recovery is underway. Statistical Evidence reveals that demand in the hotel industry lags the economic cycle by nine to twelve months.

CONCLUSION: TUI AND KUONI HAVE GREAT UPSIDE PRICE POTENTIAL

The bleak mood (continuing geopolitical risks) has punished the shares of travel operators and is mirrored in the negative price performance last year of Tui and Kuoni. A political resolution to the Iraq conflict or a brief and effective war with Iraq might spell above-average price gains for tourist groups vis--vis other sectors. With this in mind, we favor Tui and Kuoni. Our scenario is supported by the technical analysis.

Kuoni stock has been moving in a sideways consolidation since November last year. If the share were to break out above CHF 275 or CHF 280, technical research suggests it might then turn into to an uptrend. Tui might also break above the resistance line, if the share price breaches EUR 11.30. Investors with a high risk profile should take a punt on Kuoni or Tui because we believe these investments offer dynamic investors an optimum risk/reward ratio. Given the lackluster economy and the structural problems in the travel industry, our fundamental 12-month rating for Kuoni and Tui remains Hold.

PTS- 06

REPORT

ENROLLMENT NO. 076413680

20. RESEARCH

Potential and awareness of KUONI and other tour operators amongst the people of Gurgaon.

To find out the operational work out of KUONI in india

To find out the potential for tour and travel industry amongst the people of Udyog Vihar, Gurgaon.