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Indian Tourism and Hospitality Industry:

Rising ahead of the Overcast


December 2013
January 2014
1
Executive Summary....
Industry Overview...
I. Sector Overview....
II. Segmentation...
III. Evolution of the Industry in India...
Growth Drivers...
Governments Initiatives...
Segment Analysis....
I. Accommodation and Catering.
II. Tourist Destinations...
III. Events...
IV. Travel and Tour Formats..
Challenges and Opportunities...
Emerging Trends Whats Exciting....
Major Players..
Glossary....
Contents: Page No:
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2
Executive Summary
The Tourism and Hospitality industry is the largest service industry
globally in terms of gross revenue and foreign exchange earnings.
It is also one of the largest employment generators in the world.
The driving forces of this industry lie in the recreational,
knowledge seeking, religious and business interests of people
around the world. The human urge for new experience, adventure,
and entertainment plays the role of a catalyst for the growth of
this industry. It also has the potential to stimulate other sectors in
the economy owing to the cross - synergistic benefits and its
backward and forward linkages which makes tourism and
hospitality both a cause and consequence of economic
development
In the Indian context, the story is no different. Despite the few
ebbs and flows and the political uncertainty that the whole
economy is facing, this industry is poised for long term sustainable
growth and looks to stabilize and grow further in the near future
I hope you enjoy reading this report as we continue to indulge
ourselves more in this dynamic and burgeoning industry
Pankaj Dinodia
Chief Executive Officer
3
Industry Overview
4
Industry Overview
Sector Overview
The Indian Tourism and Hospitality industry is one of the largest segments
under the services sector of the Indian economy and offers the most
diverse products globally. The countrys rich history, cultural heritage,
diversity of religion, variety of landscapes and medicine fascinate both,
budget and luxury travelers. Tourism in India has registered significant
growth over the years, which is led by rising incomes, increasing
affordability, growing aspirations, increasing globalization, and a growing
airline industry along with improvement in travel-related infrastructure.
The industry holds immense potential for the Indian economy and it can
provide impetus to other industries through backward and forward
linkages
This sector contributes around 6.23% to the national GDP and 8.78 % of
the total employment of the country. The direct contribution to the GDP
totaled US$ 30.95 Bn in 2012
1
and is expected to rise to ~US$ 40.8 Bn this
year. The market size of the tourism and hospitality industry stood at ~US$
117.70 Bn. The industry grew at a CAGR of 36.50% during 2009-2013 and
growing at a forecasted CAGR of 15.15%, it is expected to become a ~US$
418.90 Bn industry by 2022
Market Size of the Industry in India over the last decade ( $ In Bn )
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WTTC Report
Note: Figures in white represent estimates
33.9
117.7
418.9
10
60
110
160
210
260
310
360
410
460
2009 2013 2022
5
Industry Overview
Segmentation
Accommodation and
Catering
Tourist Destinations
Events
Travel and Tour
Formats
Indian Tourism and Hospitality Industry
Accommodation and Catering: This segment is highly fragmented and it is
further divided in two broad sub segments namely; Restaurants and
Hotels. It is the largest segment of the industry and it is mostly dominated
by the unorganized sector
Tourist Destinations: This segment comprises Indias vast array of tourist
destinations varying from world heritage sites to beautiful scenic
destinations and extravagant festivals among other attractions
Events: It is the newest segment of the industry and it is driven by the
rising trend of concerts, youth festivals and weekenders in the country
Travel and Tour Formats: This segment works under two broad categories;
Offline Mode and Online Mode and it comprises various tour and travel
formats such as Eco-tourism, Medical tourism, Adventure tourism etc.
6
Industry Overview
Evolution of the Industry
2000-
2005
2005-
2010
Present Pre 1990
1990-
2000
Pre- 1990
The National Tourism Policy was announced and the
government formulated a comprehensive plan to promote
tourism in 1988
1990-2000
Government stressed on public-private partnership in the
sector and the policies gave a boost to the hotel industry. Many
such partnerships are still active
2000-2005
A new policy on tourism was announced in 2002 with focus on
developing infrastructure and Online travel portals and low-
cost carriers were launched
2005-2010
The government undertook marketing initiatives and the
domestic spending on tourism accounted for over 80.3% of the
total tourism revenues
Present
Foreign tourists visiting India rose to 6.36 Mn and new products
such as Medical tourism and Ecotourism came into existence
7
Growth Drivers
8
Regulatory
Drivers
External
Drivers
Internal
Drivers
Policy and incentives
Central Level Initiatives
State Level Initiatives
FDI Inflow
Increasing domestic
and international
arrivals
Changing consumer
dynamics
Demand supply gap
New entrants in the sector
The Government of India has initiated a number of steps to ensure full
utilization of the potential that tourism and hospitality holds in India
Central Level Initiatives State Level Initiatives
(A) Regulatory Drivers
Elimination of Custom Duty for
Import of equipment and liquor
for new projects
Capital subsidy program for
budget hotels
Five year income tax holiday
granted to 2-4 star hotels
established in specified districts
having UNESCO-declared World
Heritage Sites
Exemption of Luxury Tax and
Sales Tax for 5-7 Years for new
Projects
Small capital subsidy for the
development of budget hotels
Below market rate allotment of
land controlled by State for
development projects
Zonal auction rate has been
brought down
Growth Drivers
9
1. FDI Inflow: Out of the total FDI inflow in the last decade, the
hospitality sector contributed ~3% of the inflow. The hospitality sector
requires over US$ 10 Bn investment in the coming five years for which
the government is relying on FDI by making regulatory changes in-line
with the past investment trends
2. Increasing Domestic Travel Visits and Foreign Travel Arrivals (FTAs):
(B) External Drivers
Domestic Travel Visits
From 269.60 Mn domestic travel visits in 2002, the number rose to 1.04 Bn
in 2012. Over the last decade, the domestic travel visits increased by a
CAGR of 14.41%. The Ministry of Tourisms vision is to achieve 3.22 Bn
travel visits by 2022 with a compounded annual growth rate of 12% (As
shown in Fig.1)
269.60
1,036.35
3,218.75
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
2002 2012 2022
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Fig.1: Growth in the number of Domestic Travel Visits in India ( In Mn )
Source: Indian Tourism Statistics. Figures in white represent estimates
Growth Drivers
External Drivers (1/3)
10
Foreign Travel Arrivals
Foreign tourist arrivals (FTAs) grew at a CAGR of 10.70% during the last
decade. In 2012, the Indian tourism and hospitality industry clocked 6.58
Mn FTAs as compared to 2.38 Mn during 2002, growing at the same rate it
is expected to touch ~18.19 Mn by 2022 (As shown in Fig.2). The foreign
exchange earnings also increased to US$ 17.78 Bn in 2013 as compared to
US$ 3.10 Bn in 2002 (As shown in Fig.3)
Fig.2: Growth in the number of Foreign Travelers in India ( In Mn )
2.38
5.08
6.58
18.19
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2002 2007 2012 2022
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Fig.3: Foreign Exchange Earnings over the last Decade ( $ In Bn )
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Source: Indian Tourism Statistics. Figures in white represent estimates
Growth Drivers
External Drivers (2/3)
3.1
10.73
17.78
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7
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2002 2007 2013
11
3. Changing Consumer Dynamics and NewSchemes for easy Finance:
Changing Consumer Dynamics
India has the second largest plastic cards base in the Asia Pacific region.
The outstanding plastic cards in 2007 were ~130 Mn and in 2012, the
number rose to more than double at ~296 Mn cards. 35% of those who
use plastic cards use it for travel and dining (As shown in Fig.4)
Travel and
Dining, 35%
Apparels, 35%
Jewellery, 10%
Consumer
Durables, 10%
Others, 10%
No. of Outstanding Cards in 2012: 296 Mn Cards
Fig.4: Use of Plastic Cards under different categories
Source: RBI and CCI Technopak Report
New Schemes for easy Finance
Players such as Thomas Cook, Cox & Kings and SOTC have tie-ups with
ICICI Bank, CitiBank and Kotak Mahindra to offer holiday nowpay later
schemes. These banks also offer a basket of products such as personal
loans for the purposes of business, wellness or sports travel
Growth Drivers
External Drivers (3/3)
12
(C) Internal Drivers
1. Demand-Supply Gap: Statistics on the demand and supply for hotel
rooms indicate that India currently has around 1,28,000 hotel rooms
spread across the various hotel categories, whereas the requirement
of rooms in India is estimated at more than 2,00,000 rooms
The impact of this demand and supply gap is felt by way of increased
room tariff. In metro cities, the room rents have simply sky rocketed.
This is especially the case with mid segment and budget hotel
categories where a large gap in supply exists at the moment
2. New Entrants in the Sector: Apart from the demand and supply
gap, there are other internal factors that drive growth for the industry.
Healthy performance of the services sector (specially IT and ITes) has
led to increased number of business travelers (both domestic and
international) in the country which makes it imperative for such
companies to either build their own hospitality infrastructure or use
hotels etc, other such examples are as under:
Internal
Diversification
Emaar Group of Dubai and
Armani Brand have launched
boutique luxury hotels in India
IT Companies
Infosys has a room inventory of
13,000 and Wipro has 500 rooms
Private Equity Firms
Warburg Pincus invested US$ 60
Mn in Lemon Tree Hotels
Low Cost Carriers
Cheap Air fares boost tourism
and encourage people to travel
Growth Drivers
Internal Drivers
13
Governments Initiatives
14
In India, the Tourism and Hospitality industry is primarily driven by the
private sector service providers, while the public sector contribution is
significantly through provisions of infrastructure, either directly or through
Public Private Partnership (PPP) in hospitality and tourism projects
Growth in this industry goes hand in hand with the performance of allied
industries such as aviation, transport, basic tourist infrastructure and
facilitation systems, etc. Thus, sustainable growth in this sector cannot be
attained unless the issues related to these sectors are addressed
simultaneously. For the same purpose, following are some of the initiatives
that the government has undertaken to give a boost to this robust and
growing industry:
Governments Initiatives
Foreign Direct Investment (FDI)
The Hotel and Tourism related industry has been declared as a high priority
industry and Foreign Direct Investment (FDI) of up to 100% (under the
automatic route) has been permitted for this sector
The sector contributes ~3% to the total FDI inflows of the country. Due to
governments initiatives, it attracted US$ 17.78 Bn
1
worth of FDI inflows in
FY 2013
To propel the growth of the
sector, it is imperative that the
hospitality sector receives
Infrastructure status

Chris Moloney
Chief Operating Officer
InterContinental Hotel Group
1
DIPP Data
15
Tourism Infrastructure Development
In the review of the ongoing 12
th
Five Year Plan
1
, the total number of
projects that were sanctioned across all states and across all schemes were
314. An amount of US$ 294.50 Mn
2
(i.e. INR 1,826 Crores) has been
sanctioned so far for the development and promotion of tourism and
related infrastructure
The 12th Plan Five Year Plan is focused on the development of tourism
infrastructure in an integrated manner by identifying the important circuits
and the gaps in infrastructure amenities in the convergence of resources of
various Ministries/ Organisations at the Central and State levels
The states with the maximum number of tourism projects sanctioned are
Jammu and Kashmir, Madhya Pradesh, Arunachal Pradesh, Uttar
Pradesh, Himachal Pradesh and Nagaland (As shown in Fig.5)
Source: Project Monitoring Information System, Ministry of Tourism
1
12
th
five year plan only includes plans sanctioned for the year 2012-13 and 2013-14 till date
2
Exchange Rate: I US $ - INR 62
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Fig.5: Statewise Sanction of Projects for the year 2012-13
Total no. of projects: 151
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Governments Initiatives
Tourism Infrastructure Development
16
India as 365 day Destination
India caters to all kind of tourists and therefore the government of India
aims to make India A 365 day Destination that offers a vast array of
destinations with exquisite locations from peaceful beaches across Kerala
to the snow clad mountains of Kashmir
Today, India is also one of the most popular health and wellness tourism
markets in the world. The Ministry of Tourism and the State tourism boards
of India are developing new products to capitalize on India's potential as a
365 Day Destination with an emphasis on positioning the country as a
unique destination offering something for everyone
Visa on Arrival
Incredible India International Campaigns
Currently, there are 11 countries that are allowed Visa on Arrival, the
ministry of tourism is in the process of adding three more countries
(France, Germany and Russia) to the list. The consumption
demand, emanating from tourist expenditure also creates more
employment and generates a multiplier effect on the economy
The Ministry of Tourism commenced its International TV Campaign (2009-
10 Extended to 2010-11) for Europe and Americas region, which finished
in the first half of the 2010-11. In December 2010, the Ministry launched
its International TV Campaign 2010-11 in Europe. Leading TV channels of
pan-regional reach are a part of the Media Plan of the Ministry. The
Incredible India Campaigns have also become a rage across the world today
Governments Initiatives
365 Day Destination, Visa on Arrival, Campaigns
17
Segment Analysis
18
I. Accommodation and Catering
Restaurants Sector (1/3)
Accommodation and Catering is one of the most versatile segments and
serves anyone from 2 to 90. It is driven by a number of Demand Side and
Supply Side factors that are discussed later in the report. Despite the
traditional Indian culture of eating home made food, the trend of eating
out and splurging on food from different parts of the world is picking up
This segment is highly fragmented and it is further divided in two broad sub
segments namely:
A) Restaurants
B) Hotels
The current market size of the Indian Restraunt sector is US$ 12.10 Bn and
growing at a CAGR of 7%, the industry is expected to grow to US$ 23.80 Bn
by 2022. The industry is highly fragmented with over 1.5 Mn eating outlets
under the Organized and Unorganized Segments. The organized segment
accounts for 16% of the industry and it is worth US$ 1.94 Bn. The organized
sector is characterized by an organized supply chain with quality control
and sourcing norms, multiple outlets with standardized design, and
accounting transparency, while the unorganized segment accounts for the
bulk of the industry (84%) and lacks technical, accounting or standardized
practices
In terms of market segments, quick service restaurants (QSRs) and casual
dine-in formats are clear winners with 74% of the total market, growing at
a CAGR of 21%. Cafes make up for 12% of the market, while fine dining (or
Full Service Restaurants) and pubs, bars, clubs and lounges (PBCL) comprise
the rest. The key growth drivers and emerging trends indicate an increasing
share of delivery and take-away formats (drive-thru etc.) with a focus on
convenience
The various formats under the Indian restaurants sector are discussed in
the following section of the report
(A) Restaurants Sector
19
Different formats under the Indian Restaurants Industry
Full Service Restaurants
Fine Dining: Offers finest in
food, service, and ambience; high
priced; highly trained staff; usually
located in luxury hotels in
metropolitan cities
Casual Dining: Offers moderately
priced food, casual
ambience, quick table service;
some of these dine ins also
provide takeaway
Quick Service Restaurants
Also called fast food joints; serve processed foods at low prices; typical
menu items include burgers, pizzas, milkshakes, French fries; minimal
table service; also provide takeaway and home delivery
Cafes
Outlets serving range of coffee and other hot and cold beverages, quick
bites such as pastries and sandwiches, and breakfast
I. Accommodation and Catering
Restaurants Sector (2/3)
20
Different formats under the Indian Restaurants Industry
Pubs, Bars, Clubs and Lounges
Ice Cream and Yogurt Parlors
Outlets usually exclusively selling ice cream, gelato, sundaes and
shakes, sorbet, and frozen yogurt
Kiosks
Small standalone structures dispensing quick snacks and drinks; typical
items include wraps, Indian snacks, fruits and fruit juice, Chinese
food, corn, ice cream, salads; commonly found in public spaces such as
shopping malls
Casual or upscale establishments serving alcoholic beverages and food
Juice Bars
Stores usually selling fresh and bottled fruit and vegetable
juices, smoothies, and juice blends; some of them also sell
soups, salads, and wraps
Food Courts
A designated area in large public places such as shopping
malls, airports, hospitals, offices with several QSRs and Kiosks etc.
I. Accommodation and Catering
Restaurants Sector (3/3)
21
The Hospitality industry is one of the largest service industries in India.
Despite seeing the least hotel occupancy in the past two years, this sector
will promise robust growth over time with new travel concepts and
innovative hotel projects. The growth of the Indian hotel market is based
on the rising domestic and foreign tourism
Approximately 300 hotels will come up in India over the next three
years, constituting about 17% of Asias hotel construction pipeline. India
has the second largest number of hotels (292) under construction after
China (592). The hotel projects under construction include projects from
companies such as Four Seasons, Carlson Rezidor Hotel Group, Hilton
Worldwide, Hyatt Hotels Corp. and Indian Hotels
(B) Hotels Sector
I. Accommodation and Catering
Hotels Sector (1/3)
22
Fig.6: The upcoming and Existing Keys in
top 8 Cities
*
As shown in Fig.6, NCR is likely to experience the maximum addition to
its keys inventory over the next three years. The development of the
hospitality district in Aerocity near the Delhi airport alone is likely to add
close to 4,000 keys to the region. Mumbai comes in second, with brands
such as Conrad, Bellagio and MGM Grand entering the market.
Bengaluru will also witness the debut of The Ritz Carlton in the city;
considered to be one of the most significant openings anticipated over
the next three years
*
All the data pertain to the year 2012, RevPAR Revenue Per Available Room, ARR Average Room Rate
Fig.7: ARR and RevPAR for the Top 8 Cities
*
4000
6360
4920
4775
5220
6095
7835
3460
2442
3561
2956
2536
3308
4120
4348
1754
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Ahmedabad Bengaluru Chennai Hyderabad Kolkata Mumbai NCR Pune
ARR RevPAR
2000
10000
4000
5000
4000
10000
17000
2000
3000
11500
7000 6300
5000
18000
18000
6500
0
5000
10000
15000
20000
Ahmedabad Bengaluru Chennai Hyderabad Kolkata Mumbai NCR Pune
Upcoming Existing
I. Accommodation and Catering
Hotels Sector (2/3)
23
Fig.8: Hospitality Hotspots Across India
Mumbai and NCR remain the most occupied hotel destinations and also
enjoy the highest Revenue per Available Room (RevPAR) performance
and highest average room rates (ARR) performance. Apart from the
tourist destinations that these cities have, they also have an upper hand
in terms of being the economic and financial capitals of the country
Image Courtesy: Cushman and Wakefield Hospitality
I. Accommodation and Catering
Hotels Sector (3/3)
24
There are various demand side and supply side factors that drive the
growth of the Accommodation and Catering segment, some of them are as
under:
Favorable Demographies
The urge for trying new cuisines, exploring new places, going out for
weekend gateways have been the key growth drivers for this segment. An
average young Indian eats out almost thrice a week and goes out for a
short weekend trip every 2 months. QSRs are also increasingly becoming
social hangout spots, where the young population gathers to meet friends
and spend their leisure time
India is demographically one of the youngest countries in the world with
more than ~50% of its population below the age of 25 and more than ~65%
below the age of 35. (As shown in Fig. 9)
Demand Side Drivers
0-14
Years, 28.90%
15-24
Years, 18.20%
25-54
Years, 40.40%
55-64
Years, 6.90%
65 Years and
Above, 5.60%
Indian Population as of 2013: 1.3 Bn People
Fig.9: Age Structure of the Indian Population
1
1
Population Census
I. Accommodation and Catering
Demand Side Drivers (1/2)
25
Along with an increase in Indias working population, there has also been a
stark increase in the number of working women. With more women
spending a substantial number of hours at work, there is little or no time to
prepare elaborate meals at home. More working women are spending
their disposable incomes on eating out or serving ready-to-eat or frozen
foods picked up on the way home from work
Rising Number of Working Women
Change in Consumption Trends and Disposable Income
Growing affluence and higher spending capacity provides a huge
opportunity for the foodservice sector. With higher disposable
incomes, consumers do not hesitate to spend more on eating out. By
2025, India will have 583 Mn people living on incomes of above US$ 4,380
/ year. With 65% of the population being under the age of 35, an increasing
number of Indians are capable of earning and have rising disposable
incomes, which is driving up demand for specialty and value-added food
products
I. Accommodation and Catering
Demand Side Drivers (2/2)
26
Multiple Cuisines
The foray of Indian hotels and restaurants into a variety of global cuisines is
creating a positive impact on the segment. Indo-Chinese food has risen in
popularity to almost become a staple cuisine across the country, and new
favorites such as Mexican, Italian, Thai, and Japanese food are tickling the
palates of Indian consumers
Supply Side Drivers
Better Retail Concepts
The development of malls and multiplexes has provided the industry with
ideal spaces for operation. Malls have allowed new formats such as food
courts to enter the market and offer consumers to access multiple cuisines.
A portion of the malls traffic is also converted into customers for the food
courts
I. Accommodation and Catering
Supply Side Drivers (1/2)
27
The food supply chain in India is complex, less developed, and involves
numerous small stakeholders at various stages: farmers, wholesalers, food
manufacturers, retailers, and multiple intermediaries who add little value
to the product. While most of these challenges are dealt with, contract
farming has come up as a boon for this segment
Contract farming companies are those companies that sign contracts with
farmers to grow a specific crop, guaranteeing to buy the produce at an
agreed price. These companies have emerged as a preferred way for big
global and domestic catering brands to source agricultural produce. Third
party logistics providers, which transport the produce and food products
from source to destination, have also emerged as a growth driver in this
segment
Improved Logistics and Supply Chains
I. Accommodation and Catering
Supply Side Drivers (2/2)
28
II. Tourist Destinations
India is home to a vast array of tourist destinations varying from world
heritage sites to beautiful scenic destinations that the domestic and foreign
travelers love to visit repeatedly. These places attract a lot of tourism in the
form of tourists who wish to discover the countrys diverse culture and
different climatic conditions across the country. From the coldest weather
in Kashmir to the driest places on earth in the form of Thar dessert, the
snow clad Himalayan ranges of the north to the long beaches of the
south, India is truly diverse. The country offers a bit of everything for every
traveler. The top tourist destinations of the country are:
Agra
Agras Taj Mahal is one of the most famous tourist attractions in the
world, the mausoleum of Shah Jahans wife, Mumtaz Mahal. It is one of the
New Seven Wonders of the world, and one of the three World Heritage
Sites in Agra. Set amidst the landscaped gardens, the monument got
completed in 1653. The perfectly symmetrical monument took 22 years
(1630-1652) of hard labour and 20,000 workers, masons and jewelers to
build
29
Jaipur and Udaipur
Jaipur is popularly known as the Pink City of India. It is a very famous
tourist destination and lots of people flock to Jaipur to view the various
forts and monuments which reflect its glorious past. Tourism is a significant
part of Jaipurs economy and has some of the worlds best hotels. Udaipur
has become a hot favorite wedding destination for locals as well as NRIs
Goa
Goa is famous for its pristine beaches, in fact 90% of all the tourism in Goa
happens only for its beautiful beaches in coastal areas. Many foreigners
have made Goa as their second home for its laid-back and relaxed lifestyle
throughout the year
II. Tourist Destinations
30
Situated on the lush and tropical Malabar Coast, it is one of the most
popular tourist destinations in India. Named as one of the "ten paradises of
the world" and "50 places of a lifetime" by the National Geographic
Traveler magazine, Kerala is especially known for its ecotourism
initiatives, beautiful backwaters and alternative healing massages
Kerala
Kashmir (Paradise on Earth)
Kashmir is called paradise on Earth and it is one of the most beautiful
places in the world. It has three main geographical regions known as The
Lesser Himalayas or the Jhelum Valley (Kashmir), The Inner Himalayas
or The Indus Valley (Ladakh) also called Trans-Himalayas, and The
Outer-Himalayas or The Southern mountain range (Jammu)
II. Tourist Destinations
31
III. Events
Although this segment of the industry is at a very nascent stage, it has
come out as one of the fastest growing segments. Given the rising trend of
concerts, youth festivals and weekenders, the segment is poised for rapid
growth. It also gives the opportunity to international artists to discover the
Indian market as the countrys youth is the driving force of this segment.
Some of the prominent Indian events are:
Sunburn is the most popular electronic dance and music Festival held
at Candolim Beach, Goa every year (now expanded nation-wide). The
festival is a mix of Music, Entertainment, Food and Shopping. It was ranked
amongst the Top 10 Festivals in the World. The Festival is organized by
Percept, a leading Entertainment, Media and Communications company in
India. Spread over 3 days, the festival has multiple stages with many
international artists playing simultaneously
The Auto Expo is a biennial automotive show held in New Delhi. It is Asia's
largest and the world's second-largest motor show. The expo is mainly
organized jointly by the Automotive Component Manufacturers
Association (ACMA), Confederation of Indian Industry (CII) and Society of
Indian Automobile Manufacturers (SIAM) and works as a brand promotion
and corporate image development platform for exhibitors
32
Kumbh Mela is a mass Hindu pilgrimage of faith in which Hindus gather to
bathe in a sacred river. It is considered to be largest peaceful gathering in
the world with over 100 Mn people visiting during the Maha Kumbh Mela
in 2013
It is a 3 day music and dance festival organized by the Ragasthan Events
Private Limited in Rajasthan. Many international artists come over for the
event and it is gaining popularity amongst the Indian youth and foreign
travelers
The NH7 Weekender is a three-
day Indian music festival and it is
considered to be the second best
music event in India after
Sunburn. This event happens
across various cities in India
India Bike Week is the first and
only festival in India that is built
around bikes, bikers and music.
It is a new concept and is fast
gaining popularity
III. Events
33
This segment is the most fragmented segment of the tourism and
hospitality industry. It comprises travel bookings, tour packages, weekend
planners, group holidays etc. This segment works under two broad
categories: Offline Mode (large tour operators such as Air Travel Bureau
and Uniglobe Travels) and Online Mode (Make MyTrip, Red Bus etc.)
When a customer books tickets and makes his travel package over the
internet, it is categorized under the online mode and when a travel agent
or a physical delivery of tickets etc. is involved in the process, it falls under
the offline mode. Retail Customers generally opt for the online mode of
booking because of the on-the-go convenience, while the corporate
customers prefer offline mode driven by bulk discounts and complicated
arrangements
In India, there are a number of different travel formats that have emerged
over time, some of them are shown as under:
Eco-Tourism
Eco-tourism focuses on local cultures, wilderness adventures, personal
growth and learning new ways to live on our vulnerable planet. It is
considered as the fastest growing market in the tourism industry. According
to the World Tourism Organization, this format has shown an annual
growth of 5% worldwide
Eco-Tourism in India is still at a very nascent stage, but there are conscious
efforts to save the fragile Himalayan Eco System and culture of the
indigenous people. In the 11
th
Five year plan, the government expended
only Rs. 1.73 Crores for the development and conservation of eco system of
the country, but it has grand plans for this segment in the future
Source: Reference Note, Lok Sabha Secretariat
IV. Tour and Travel Formats
34
Medical Tourism
Medical tourism (also called medical travel, health tourism or global
healthcare) is used to describe the rapidly-growing practice of traveling
across international borders to obtain cost-effective and high quality health
care. Services typically sought by travelers include elective procedures as
well as complex specialized surgeries such as joint replacement, cardiac
surgery, dental surgery, and cosmetic surgeries
The current market size of this sub segment is ~US$ 1.25 Bn
1
. India is well
positioned to take advantage of the upcoming growth in the medical
tourism sector, given its proximity to the MENA region as well as Europe.
Rising health care costs worldwide drive growth for this segment, following
is a time-cost analysis of various health treatments in India and abroad:
Nature of Treatment
Approximate
cost in
India($)
Cost in other
Major Healthcare
Destinations ($)
Approximate
waiting period
in USA / UK
(Months)
Open Heart Surgery 4,500 > 18,000 9-11
Cranio - facial Surgery and skull base 4,300 > 13,000 6-8
Neuro - surgery with hypothermia 6,500 > 21,000 12-14
Complex spine with implants 4,300 > 13,000 9-11
Simple Spine surgery 2,100 > 6,500 9-11
Simple Brain Tumor
- Biospy 1,000 > 4,300
-Surgery 4,300 > 10,000
Parkinsons
- Lesion 2,100 > 6,500
-DBS 17,000 > 26,000
Hip Replacement 4,300 > 13,000 9-11
9-11
6-8
IV. Tour and Travel Formats
Medical Tourism
1
ASSOCHAM Report
35
Meetings Incentives Conferences and Exhibitions
(MICE)
It is a specific form of business tourism that relates to the activities of
groups of business people travelling for business purposes rather than
individual business travelers and represents a multi-million dollar segment
of tourism worldwide
India is in a continual process of upgrading its MICE facilities. There are
multiple plans on the anvil for more world-class convention
centers, airports that contest with the best in the world (recent testaments
are the T3 at Delhi and the T2 at Mumbai International Airport) and efforts
to team-up the famous Indian hospitality with customization as per a
visitor's requirement. MICE trips generally involve elements of
relaxation, shopping and sightseeing. Hence, most MICE travelers can be
converted into leisure travelers who would spend money on sightseeing
and shopping as well
Golf Tourism
One of the latest trends in sports tourism is golf tourism. There has been a
recent surge in golf tournaments and golfing events world over. India has
several golf courses of international standards. Further, golf events held in
India also attract domestic and international tourists, which makes it a
niche tourism product in India (e.g. Hero Indian Open at Delhi Golf Club)
IV. Tour and Travel Formats
MICE and Golf Tourism
36
Pilgrimage Tourism
Famous shrines such as the Vaishno Devi Shrine, Vrindavan and Char
Dhaam of Hindu religion attract a lot of domestic tourism. Vaishno Devi
Shrine in Jammu alone attracts over 10Mn people in a year. Apart from
this, foreign tourists visit India for Buddhism. As India is believed to be the
birth place of Buddha, all Buddhists travel to places of Buddhist significance
such as Bodh Gaya, Sarnath etc. to know and understand Buddhism
comprehensively, which makes it a growing format of travel
IV. Tour and Travel Formats
Pilgrimage and Cruise & Adventure Tourism
Cruise and Adventure Tourism
India, with its vast and beautiful coastline, untouched forests and
undisturbed idyllic islands has emerged as an attractive luxury tourism
destination for cruise tourists
Adventure travel is a type of tourism that involves exploration with
perceived risk, requiring specialized skills and physical exertion. Adventure
tourism is rapidly growing in popularity, as tourists seek different kinds of
vacations. Access to inexpensive consumer technology, with respect
to Global Positioning Systems (GPS), social networking, fast
telecommunications and photography, have increased the worldwide
interest in adventure travel
37
Challenges and
Opportunities
38
Challenges
The potential of the tourism and hospitality industry in India is vast.
However, at the same time, the industry faces various challenges, of which
the most critical is lack of proper infrastructure and low occupancies
among others
There are many other challenges that bar the growth of this sector, but the
good news is, these challenges can be converted into opportunities. If the
infrastructure of the this industry gets better, it will not only result in the
growth of travel and but will also benefit the allied sectors such as
domestic transport (surface and air), market for handmade products and
the F&B sector. The various challenges that the industry faces are as under:
Challenges
Infrastructure Development
Infrastructure needs for the tourism and hospitality industry range from
physical infrastructure such as ports of entry to modes of transport to
urban infrastructure such as access roads, electricity, water
supply, sewerage and telecommunication. The sectors related to this
industry include airlines, surface transport, accommodation(hotels), and
infrastructure and facilitation systems
39
Sluggish Room Occupancy Rates
The top six cities witnessed an average occupancy rate (AOR) of 58% with
an average room rate (ARR) of Rs 6,214 in the year 2012-2013. The current
averages record a marginal decline of 4% in AOR and 5% in ARR over the
average of 2011 performance
Image Courtesy: Economic Times
The average occupancy and room rates for hotels in India are expected to
be under further pressure with 50,000 new hotel rooms coming up in the
top six cities over the next three years. Over the next three years, the
national capital region will see the maximum number of new rooms getting
built at 17,000 rooms, followed by Mumbai and Bangalore with 10,000
rooms each. The decline in occupancy was primarily due to a moderate
slowdown in global economies which led many corporations to curtail
travel, while individual travelers have also been cautious due to various
uncertainties such as terrorism, hold-ups etc
Challenges
Sluggish Room Occupancy Rates
40
Service Levels
In addition to tour operators and hotel staff, tourists interact with people
from different backgrounds, ethical standards, occupations and experience.
Such people include staff at bus/ railway station, immigration staff at
airports, taxi/ coach operators, ticketing/ travel agencies, small hotels, staff
at heritage sites, and tour guides among others
The degree of service offered by these people has a significant impact on
determining the tourists overall experience of India. The government has
taken initiatives to promote responsible tourism by sensitizing the people
involved in the tourism industry through training and orientation and by
inspiring confidence of foreign tourists in India as a preferred destination.
One such major initiative is the Atithi Devo Bhava campaign. More such
efforts are required to improve the degree of service across various service
sectors of this industry
Challenges
Service Levels
41
Regulatory Bottlenecks and Operating Costs
Multiple taxation is adversely impacting India's Tourism and Hospitality
industry. The cascading effect of these multiple taxes has resulted in
structural distortions in the industry's cost and pricing structure. This in
turn makes the industry uncompetitive as an international tourist
destination and also discourages discretionary spending by domestic
tourists
Security
Security has been a major problem as well for growth of tourism for a
number of years. Terrorist attacks and political unrest in different parts of
the country have adversely affected the sentiments of foreign tourists
Cyber crime is another major challenge that the travel industry faces. Use
of the Internet in the tourism and hospitality industry has increased in
recent years and has emerged as one of major segments for online spends.
However, some of the biggest frauds have been detected in this segment
and the issue of online security has assumed significant importance
Challenges
Regulatory Bottlenecks and Security
42
Opportunities
Opportunities
Indias massive natural, cultural and culinary diversity offers enormous
opportunities for the tourism and hospitality industry. This industry is one
of the largest service sector industries in India and generates considerable
employment in the country. It promises sustainable growth in the long term
and gives rise to a number of opportunities for different tourism formats
and hospitality services
Medical tourism in India has gained considerable popularity in recent years.
India has a major cost advantage in this field as compared with other
countries. In addition to its cost advantages, the Indian healthcare industry
offers state-of-the-art equipment, technological advancement, qualified
and experienced medical personnel and a blend of modern and traditional
medicines, which makes it a booming opportunity for the country
Opportunities also exist in ecotourism, which is evident in the development
of eco-friendly hotels and tour packages. MICE tourism is another area
where the opportunity lies as there is a serious need for meeting and
conferencing facilities across Tier 1 and Tier 2 cities. Some hotel developers
are increasingly building hotels with extensive meeting and conference
facilities. The ITC Grand Chola in Chennai, the Sheraton and Vivanta by Taj
in Bengaluru are some examples of this phenomenon. Other opportunites
in the sector are as under:
Employment Generation
It is estimated that to cater for the growing need of the hospitality
sector, over 2,03,000 hospitality trained manpower would be required
annually. A scheme of capacity building for service providers has been
implemented to impart hospitality training to those employed in this sector
which ensures quality employment in the industry
43
Opportunities
Countrys Promotion and Allied Sectors
Countrys Promotion
The advertising campaigns and the Indian tourism offices overseas have
promoted India as a 365 day tourist destination. The various promotional
activities in overseas markets with added focus on emerging markets will
generate greater awareness about India as a tourist destination and will
also increase Indias share in international tourist arrivals and receipts
Growth of Allied Sectors
Growth in the tourism and hospitality industry has a multiplier effect on the
related sectors. Tourists come to the country and travel in and around, for
which they use surface transport, they also look for handmade products
that the Indian artisans are famous for and in order to stay connected to
their home countries, they also look for fast telecommunication facilities.
All these factors drive growth in the allied sectors of this industry
44
Emerging Trends Whats
Exciting
45
Emerging Trends Whats Exciting
Budget Hotels
In this robust tourism and hospitality industry, many emerging trends are
gaining momentum. The soaring real estate costs and other operational &
functional challenges lead to innovative solutions that become industry
trends overtime. Change in business models, rejigs, re-branding etc are
some of the common tools that the managements are applying to their
organizations to keep up with this dynamic industry. Some of the exciting
and new industry trends are as under:
Budget Hotels
Budget hotel is the newest category of hotels that provides the rooms and
meals at an affordable cost. These hotels do not offer ultra luxurious
facilities but offer facilities that are required to only fulfill the basic
requirements such as daily room service, telephone, television, air
conditioning, mineral water etc.
This trend has taken pace because of the lower occupancies in the
hospitality sector in the past few years. The multi-star rated hotels could
barely see 50% occupancy, to overcome this challenge many prestigious
hospitality brands have launched budget hotels for people who look out for
a sophisticated place at affordable prices. Ginger hotels by Indian Hotels
(Taj Hotels) and Premier Inn by Whitbread group of the UK are classic
examples of this phenomena. Accor group has also announced its
expansion in India under the budget hotels category
46
Rebranding
As hospitality becomes more competitive, hotel rebranding has become
more prevalent. Segmentation is no longer just about price, but
increasingly about finding the niche and creating an identity thats
distinctive in the hotel fraternity. Standing out from the competitors is the
name of the game to remain profitable and relevant, which is generally the
motivation behind the rebranding exercise. Sluggish economy and the
highly competitive nature of the industry drive this move. Some of the
recent rebranding that happened in the India hospitality are as under:
Then Now
InterContinental
EROS Hotel
Crowne Plaza Hilton Hotel
Double Tree Hotel
Holiday Inn
Shangri-La Hotel Palladium Hotel
Emerging Trends Whats Exciting
Rebranding
47
Michelin Star Restaurants
The Michelin Star is one of the most prestigious ranking systems for food
establishments in the world. In the highly competitive world of fine
dining, the Michelin star status is gaining totemic status. Hospitality
companies are bringing restaurants and chefs that are featured in the
Michelin Red Guide to India, this guide is widely considered as the bible for
gastronomes across the world. The extra spending involved in setting up a
specialty Michelin-star restaurant is worth the price as this gives it added
cachet with the substantial expat crowd. There is a star based ranking
system that the Michelin Red Guide follows:
1 Star Worth Stopping For
2 Star Worth a Detour
3 Star Worth a trip
The trend of such eating outlets have started gaining pace in India, some of
the prominent Michelin Starred Restaurants in India are:
Price for Two:
Rs. 5,000-8,000
Located : Mumbai
Price for Two:
Rs. 4,000-5,000
Located : Delhi
Price for Two:
Rs. 3,000-5,000
Located :
Bengaluru, Mumbai,
New Delhi
Price for Two:
Rs. 8,000-10,000
Located : Mumbai
Price for Two:
Rs. 4,000-5,000
Located : Mumbai
Emerging Trends Whats Exciting
Michelin Star Restaurants
48
The Online Way
New standalone eateries with new sitting and dining concepts are wooing
in the Indian palate. As a reciprocal, big hotels are also offering discounts
on food & beverages on the internet to reach out to the young, middle-
class customers. Websites such as tastykhana.com and groupon.co.in offer
great deals on food and beverages that attract young customers to try new
places
Cage Culture
Gourmet restaurants in the coastal states of the country are serving
more high value fishes such as cobia, seabass and tilapia, all due to the
emergence of the new concept called Cage Culture. Cage Culture means
rearing and breeding of exotic and Indian fishes in enclosures that are
generally constructed of wire or netting as bags, supported with rigid
frames that are floated in large bodies of water. The increasing demand for
such fishes in the local market is compelling the seafood exporters to buy
and sell these fishes in the local market by procuring them through these
cages, which reduces the cost of seafood which is generally high
Timeshare - Vacation Ownership
Vacation ownership is a period of time that you can buy for a specific
property (usually a residence at a resort) or multi-destination club, during
which the right-to-use the property belongs to you. The idea is that you
benefit by "pre-paying" for a vacation place rather than renting it, as you
might otherwise do. In Recent years, leading hospitality companies such as
Hilton, Marriott, Hyatt, Fairmount, Four Seasons, Accor Hotels have been
building and converting upscale hotels in order to satisfy the vacation
ownership and membership demand. These vacation ownerships typically
involve both a purchase price and an annual maintenance fee
Emerging Trends Whats Exciting
Timeshare, Cage Culture, Online Way
49
Major Players
50
Jubilant Foodworks
Company Profile
Jubilant Foodworks Limited
(JUBI.BO), is a part of the Jubilant
Bhartia Group. The company owns
and operates two restaurant chains
in India; Dominos and Dunkin
Donuts. It opened the first Dominos
store in New Delhi in 1996 and has
exclusive rights to use the Dominos
brand in India, Nepal, Bangladesh
and Sri Lanka across a network of
650 Dominos Pizza Stores (as of
October 2013). Dominos is the
market leader with a 67% market
share among pizza chains in India, it
operates stores in 132 cities across
the country
Dunkin Donuts was launched in
India in April 2012 and there are 19
Dunkin Donuts restaurants in India
(as of October 2013)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 1,018.88 Rs. 1,414.31 44.40%
% Growth 38.80%
EBITDA 187.93 241.66 42.00%
% Margin 18.40% 17.10%
EBIT 150.19 186.08 43.38%
% Margin 14.70% 13.20%
PBT 156.17 193.88 45.04%
% Margin 15.30% 13.70%
Reported PAT 103.29 131.10 35.19%
% Margin 10.10% 9.30%
Adjusted PAT 106.00 131.10 35.19%
% Margin 10.40% 9.30%
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Summary Income Statement (In Crs.)
Particulars Mar-12 Mar-13
Total Assets 467.25 651.80
Shareholders' Equity 296.30 429.77
Total Debt 13.35 12.20
Cash & Cash Equivalents 105.20 131.50
Net Working Capital (119.53) (149.75)
Summary Balance Sheet (In Crs.)
Source: Company Website and Annual Filings
Brands Under the Hood
51
Speciality Restaurants
Company Profile
Speciality Restaurants is a fine dining
restaurants operator in India. The
companys current portfolio stands at
62 owned and operated
restaurants, 23 franchisees and 14
confectionary outlets spread across
25 cities in India and Bangladesh
The companys flagship brand is
Mainland China, with 50 outlets
serving Chinese cuisine in a fine
dining setting. Another high profile
core brand is Oh! Calcutta that
encompasses 8 restaurants across
India and Bangladesh. Other fast-
growing restaurant chains under the
company are Sigree, Flame &
Grill, Haka, Just
Biryani, Kibbeh, Kix, Machaan, Shack
as well as the popular confectionary
brand, Sweet Bengal
Summary Income Statement (In Crs.)
Summary Balance Sheet (In Crs.)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 196.23 Rs. 226.92 14.49%
% Growth 15.60%
EBITDA 37.50 36.75 -1.48%
% Margin 19.10% 16.20%
EBIT 24.63 21.82 -3.76%
% Margin 12.60% 9.60%
PBT 24.68 30.48 12.51%
% Margin 12.6% 13.40%
Reported PAT 17.24 23.41 20.88%
% Margin 8.80% 10.30%
Adjusted PAT 106.00 23.41 20.88%
% Margin 8.80% 10.30%
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Particulars Mar-12 Mar-13
Total Assets 172.43 326.18
Shareholders' Equity 114.86 290.52
Total Debt 29.23 0.22
Cash & Cash Equivalents 19.74 146.23
Net Working Capital (4.68) (13.27)
Brands Under the Hood
Source: Company Website and Annual Filings
52
Indian Hotels
Company Profile
The Indian Hotels Company Limited
(NSE: INDHOTEL) and its subsidiaries
are collectively known as the Taj
Hotels Resorts and Palaces. It is well
recognised as one of Asia's largest
hotel company. It comprises 93
hotels in 55 locations across India
with 16 international hotels in
Maldives, Malaysia, Australia, UK, US
A, Bhutan, Sri Lanka, Africa and the
Middle East
The company operates across all
hospitality segments through its
renowned brands such as Taj, Taj
Exotica, Taj Safaris, Vivanta, The
Gateway Hotel and Ginger. It also
operates Taj SATS Air Catering
Ltd., the largest airline catering
service in South Asia
Summary Income Statement (In Crs.)
Summary Balance Sheet (In Crs.)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 3,443.52 Rs. 3,743.36 14.36%
% Growth 8.70%
EBITDA 545.25 537.64 9.21%
% Margin 15.80% 14.40%
EBIT 290.18 249.22 5.73%
% Margin 8.40% 6.70%
PBT 149.09 138.64 250.27%
% Margin 4.30% 3.70%
Reported PAT 3.06 (430.24) NA
% Margin 0.10% (11.50%)
Adjusted PAT 4.08 (142.79) NA
% Margin 0.10% (3.80%)
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Particulars Mar-12 Mar-13
Total Assets 9,232.14 9,296.56
Shareholders' Equity 3,093.70 2,979.28
Total Debt 4,450.18 4,525.36
Cash & Cash Equivalents 222.47 250.75
Net Working Capital (252.61) (192.36)
Brands Under the Hood
Source: Company Website and Annual Filings
53
EIH
Company Profile
EIH Ltd. (NSE: EIHOTEL) has a 100%
equity interest in the six The Oberoi
Hotels located in Mumbai, New
Delhi, Kolkata, Bangaluru, Udaipur
and Ranthambhore. The company
also manages, The Oberoi Hotels in
Agra, Jaipur, and Shimla
The Company also has equity
interests in nine hotels that operate
under the Trident brand name. EIH
has a 100% equity interest in
Trident, Nariman Point and
Trident, Bandra - Kurla Complex in
Mumbai. In addition to its primary
hotel business, the company is also
involved in other businesses such as
flight and airport services, car
rentals, air charter services, and a
printing press
Summary Income Statement (In Crs.)
Summary Balance Sheet (In Crs.)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 1,407.18 Rs. 1,468.48 8.30%
% Growth 4.40%
EBITDA 315.81 277.45 2.55%
% Margin 22.40% 18.90%
EBIT 278.07 221.87 22.75%
% Margin 19.80% 15.10%
PBT 157.67 100.76 109.07%
% Margin 11.20% 6.90%
Reported PAT 122.32 41.77 NA
% Margin 8.70% 2.80%
Adjusted PAT 114.87 51.83 NA
% Margin 8.20% 3.50%
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Brands Under the Hood
Source: Company Website and Annual Filings
Particulars Mar-12 Mar-13
Total Assets 172.43 326.18
Shareholders' Equity 114.86 290.52
Total Debt 29.23 0.22
Cash & Cash Equivalents 19.74 146.23
Net Working Capital (4.68) (13.27)
54
Mahindra Holidays
Company Profile
Mahindra Holidays (NSE:MHRIL), is
one of the leading leisure hospitality
providers and part of the renowned
Mahindra Group. The company is the
largest within the timeshare industry
in India
It provides quality family holidays
through vacation ownership
memberships and other allied
services required for a complete
holiday experience. Members can
choose to holiday at any of the fully
operational resorts, for seven days
each year, in a season and apartment
type of chosen entitlement. It offers
complete holiday solutions to its
customers, drawing on its wide range
of products and services
Summary Income Statement (In Crs.)
Summary Balance Sheet (In Crs.)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 578.11 Rs. 694.45 17.80%
% Growth 20.10%
EBITDA 95.44 122.82 -0.17%
% Margin 16.50% 17.70%
EBIT 72.35 95.56 -2.79%
% Margin 12.50% 13.80%
PBT 143.26 142.78 -1.39%
% Margin 24.80% 20.60%
Reported PAT 102.33 90.92 -4.81%
% Margin 17.70% 13.10%
Adjusted PAT 102.33 90.92 -4.81%
% Margin 17.70% 13.10%
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Brands Under the Hood
Source: Company Website and Annual Filings
Particulars Mar-12 Mar-13
Total Assets 1,981.18 2,243.23
Shareholders' Equity 563.36 612.79
Total Debt 8.95 8.90
Cash & Cash Equivalents 141.23 55.42
Net Working Capital 265.88 373.06
55
Thomas Cook
Company Profile
Summary Income Statement (In Crs.)
Summary Balance Sheet (In Crs.)
Particulars
Historical
Mar-12 Mar-13
2 Year
CAGR
Total Income Rs. 391.82 Rs. 430.19 17.73%
% Growth 9.80%
EBITDA 106.65 111.96 27.68%
% Margin 27.20% 26.00%
EBIT 92.71 97.78 33.13%
% Margin 23.70% 22.70%
PBT 80.64 77.08 10.07%
% Margin 20.60% 17.90%
Reported PAT 56.24 50.44 3.41%
% Margin 14.40% 11.70%
Adjusted PAT 56.24 50.44 11.59%
% Margin 14.40% 11.70%
Note: EBITDA & EBIT figures exclude Other
Income, Adjusted PAT excludes the effects of
Exceptional Items (Net of Tax)
Brands Under the Hood
Thomas Cook (India) Ltd. (NSE:
THOMASCOOK), is an integrated
travel and travel related financial
services company offering a broad
spectrum of services that include
Corporate Travel (MICE), Leisure
Travel, Forex and Insurance. The
Company has celebrated 131 years of
high quality service in India
The company operates in over 78
cities across 206 locations. It has
overseas operations in Sri Lanka and
Mauritius which is a branch of
Thomas cook India. It is supported by
a partner network of 117 Gold Circle
Partners and 166 Preferred Sales
Agents in over 100 cities pan India. In
2012, Prem Watsas Fairbridge
Capital bought a 77% stake in the
company for US$ 150 Mn
Source: Company Website and Annual Filings
Particulars Mar-12 Mar-13
Total Assets 923.01 955.28
Shareholders' Equity 392.27 438.42
Total Debt 225.56 187.29
Cash & Cash Equivalents 310.67 317.36
Net Working Capital 41.36 20.87
56
Glossary
57
Glossary
Tourism: It relates to the activity / spending of travelers on trips
outside and within their home countries
Hospitality: Includes spending on eating out at Restaurants and
staying at Hotels
CAGR: Compounded Annual Growth Rate
GDP: Gross Domestic Production
UNESCO: United Nations Educational, Scientific and Cultural
Organization
Direct Contribution: GDP generated by industries that deals
directly with tourists, including hotels, travel agents, airlines and
other passenger transport services, as well as the activities of
restaurant and leisure
FTAs: Foreign Travel Arrivals, the number of arrivals of foreign
visitors, including same-day and overnight visitors to the
country
DTAs: Domestic Travel Arrivals, the number of visits of domestic
travelers within the country
QSR: Quick Service Restaurants
ARR: Average Room Rates
RevPAR: Revenue Per Average Room
AOR: Average Occupancy Rate
MENA: Middle East and North Africa
IT and ITes: Information Technology and Information Technology
Enabled Services
Dinodia Capital Advisors Private Limited
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