Capstone Project 2017 - 19

Title of the Project: Brand awareness of Thomas cook

Submitted by:
Faculty Guide : Name Geetanjali pinto Name of the Student :Harsh parasher
Designation : Professor finance department Roll No.:1719PGDM1403
Program :PGDM
Batch :F2

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai
 TABLE OF CONTENTS

SL.NO CHAPTERS PAGE NO.

1.
Introduction and Company profile

2.
Review of Literature

3.
Analysis and Interpretation

5.
Findings, Suggestions and Conclusion

6.
Appendix Questionnaire

7.
Bibliography
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________________________________________________ (title) is a bonafide work carried out

by Mr. / Ms. ________________________________________________ (name of the student)

Roll No. ______________________, a student of PGDM program 2018 – 2020 of the Institute

for Technology & Management, Kharghar, Navi Mumbai under my guidance and direction.

Signature of Guide : __________________________

Name of Guide : ____________________________________________________

Designation : __________________________

Date: _____________ Place: ________________

INTRODUCTI
ON
1. INTRODUCTION
The service sector is probably the most liberalized
of the sectors. Liberalization offers the opportunity for
the sector to compete internationally, contributing to
GDP growth and generating foreign exchange. It radically
changed India‟s Foreign Exchange sectors; the trade habit
and transaction related to business has become more
international. The identities providing the foreign
exchange service also have become more universal. The
business and education with its new ways, makes the
foreign exchange sector more and more competent.
Thomas Cook India Limited is the most dominant
company in the field of foreign exchange services. It is
the leading integrated travel and travel related financial
services company in the country offering a broad
spectrum of services that include Foreign Exchange,
Corporate Travel, and Insurance. The Company launched
its Indian operations in 1881 and is celebrating its 132
years of world-class services in India.
Number of innovative products for making payment has
developed in topical year, taking advantage of swift
technological steps forward and financial market
development. Transactions refined using these
innovative products are accounting for a mounting
proportion of the dimensions and value of domestic and
cross-border retail payments. This paper is been framed
based on the concept of payments made through Plastic
Money. Plastic money is the alternative to the cash or the
standard 'money'. Plastic money is referring to the credit
cards or the debit cards that we use to make purchases
in our everyday life. Plastic money is much more
convenient to carry around, as you do not
have to carry a huge sum of money with you. Though
this plastic money comprises different payment
channels, this paper is focusing to bring the conceptual
framework of Credit Card.

2.1 Topic
“A Study of Consumer Awareness Of Foreign Exchange
Services with special reference to the Various Forex Services
Provided By Thomas Cook India Limited”
Statement of the Problem
The study is an attempt to know, about the
awareness level of foreign exchange services in the
Mumbai district.

2.2 About the Organization

Since the beginning of time, people have had a
fascination with exploring and seeking new adventure.
Each new journey is a personal voyage of discovery. As a
pioneer with a trusted heritage, Thomas Cook has shaped
the modern travel experience by understanding what their
customers want and inspiring their dreams. Their timeless
spirit of innovation started in 1842 and it is this that
makes them stand out from the crowd, reflected in their
new, trusted products and growing suite of online tools
and applications. Innovation shaped their past and it will
shape their future. Trust, personalization and innovation
are the values that customers go to them for. TCIL is very
proud to serve the 23 million who chose to travel with
them annually and are transforming their business so that
they can serve even more customers in ways that deliver
better the most important weeks of their year. Their very
essence is to deliver inspiring personal journeys as the
trusted pioneer in global travel. The core of their strategy
is to deliver a high-tech, high-touch approach, there for
their customers wherever, whenever and however they
want to connect with them. Thomas Cook Group plc is one of
the world‟s leading leisure travel groups with sales of £9.5
billion and 23 million customers in the year
ended 30 September 2012. Thomas Cook is supported
by 27,000 full time equivalent employees and operates
from 19 countries; it is number one or two in all its core
markets. Thomas Cook Group plc‟s shares are listed on the
London Stock Exchange (TCG).
Thomas Cook Group plc is a British global travel
company listed on the London Stock Exchange. It was
formed on 19 June 2007 by the merger of Thomas Cook
AG, itself the successor to Thomas Cook & Son, and
MyTravel Group plc. It is a constituent of the FTSE 250
Index. At the time of the merger, 52% of the shares in
the new company were held by the German mail-order
and department store company Arcandor (the former
owner of Thomas Cook AG) and 48% owned by the
shareholders of MyTravel Group.
3.1 History of Thomas Cook AG
In recent years, a number of key trends in leisure
travel, namely increasing online distribution and the rise
of low-cost carriers, have facilitated a shift towards more
flexible consumer-led travel choices.

Thomas Cook (22 November 1808 – 18 July 1892)

of Melbourne, Derbyshire, England founded the travel
agency Thomas Cook & Son (popularly nicknamed
Cook's Tours ) that became Thomas Cook AG before
eventually becoming Thomas Cook Group in 2007.
Thomas Cook was born to John and Elizabeth Cook, who
lived at 9 Quick Close in the village of Melbourne,
Derbyshire. The couple's first child, he was named after
Elizabeth's father, Thomas Perkins. John Cook died when
Thomas was three years old, and his mother remarried
later that same year. At the age of 10, Cook started
working as an assistant to a local market gardener for a
wage of six pence a week. At the age of 14, he secured
an apprenticeship with John Peg, and spent five years as
a cabinet maker. Thomas Cook was brought up as a strict
Baptist, and joined his local Temperance Society. In
February 1826, Cook became a preacher, and toured the
region as a village evangelist, distributing pamphlets,
and occasionally working as a cabinet maker to earn
money. After working as a part-
time publisher of Baptist and Temperance pamphlets, he
became a Baptist minister in 1828. In 1832, Cook moved
to Adam and Eve Street in Market Harborough.
Influenced by the local Baptist minister Francis Beardsall,
he took the temperance pledge on New Year's Day in
1833. As a part of the temperance movement, he
organized meetings and held anti-liquor processions. On
3 March 1833, Cook married Marianne Mason. John
Mason Cook, their only son, was born on 13 January
1834.

The first ever excursions

Panels from the Thomas Cook Building in Leicester,

displaying excursions offered by Thomas Cook Cook's
idea to offer excursions came to him while walking from
Market Harborough to Leicester to attend a meeting of
the Temperance Society. With the opening of the
extended Midland Counties Railway, he arranged to take
a group of 540 temperance campaigners from Leicester
Campbell Street station to a rally in Loughborough,
eleven miles away. On 5 July 1841, Thomas Cook
arranged for the rail company to charge one shilling per
person that included rail tickets and food for this train
journey. Cook was paid a share of the fares actually
charged to the passengers, as the railway tickets, being
legal contracts between company and passenger, could
not have been issued at his own price. This was the first
privately chartered excursion train to be advertised to
the general public, Cook himself acknowledging that
there had been previous, unadvertised, private excursion
trains. During the following three summers he planned
and conducted outings for temperance societies and
Sunday school children. In 1844 the Midland Counties
Railway Company agreed to make a permanent
arrangement with him provided he found the
passengers. This success led him to start his own
business running rail excursions for pleasure, taking a
percentage of the railway tickets.
Leicester railway station - this was built between 1892
and 1894 to replace, largely on the same site, Campbell
Street station, the origin For many of Cook's early tours.
On 4 August 1845 he arranged accommodation for a
party to travel from Leicester to Liverpool. In
1846, he took 350 people from Leicester on a tour of
Scotland; however his lack of commercial ability led him
to bankruptcy. He persisted and found success when he
claimed that he arranged for over 165,000 people to
attend the Great Exhibition in London. Four years later,
he planned his first excursion abroad, when he took a
group from Leicester to Calais to coincide with the Paris
Exhibition. The following year he started his 'grand
circular tours' of Europe.
During the 1860s he took parties to Switzerland,
Italy, Egypt and United States. Cook established
'inclusive independent travel', whereby the traveler went
independently but his agency charged for travel, food
and accommodation for a fixed period over any chosen
route. Such was his success that the Scottish railway
companies withdrew their support between 1862 and
1863 to try the excursion business for themselves.

Thomas Cook & Son Nile cruise poster from 1922 in 1872,
he formed a partnership with his son, John A Mason Cook,
and renamed the travel agency as Thomas Cook & Son.
They acquired business premises on Fleet Street, London.
By this time, Cook had stopped personal tours and became
an agent for foreign or domestic travel. The office also
contained a shop which sold essential travel accessories
including guide books, luggage, telescopes and footwear.
Thomas saw his venture as both religious and social
service; his son provided the commercial expertise that
allowed the company to expand. In accordance with his
beliefs, he and his wife also ran a small temperance hotel
above the office. Their business model was refined by the
introduction of the 'hotel coupon' in 1866. Detachable
coupons in a counterfoil book were issued to the traveler.
These were valid for either a restaurant meal or an
overnight hotel stay provided they were on Cook's list. In
1865, the agency organized tours of the US, picking up
passengers from several departure points. In 1874,
Thomas Cook introduced „circular notes‟, a product that later
became better known by American Express‟s brand, „traveler‟s
cheques. Conflicts of interest between father and son were
resolved when the son persuaded his father, Thomas
Cook, to retire in 1879. He moved back to Leicestershire
and lived quietly until his death. The firm's growth was
consolidated by John Mason Cook and his two sons,
especially by its involvement with military transport and
postal services for Britain and Egypt during the 1880s,
when Cook began organizing tours to the Middle East. By
1888, the company had established offices around the
world, including three in Australia and one in Auckland,
New Zealand, and in 1890, the company sold over 3.25
million tickets. John Mason Cook promoted, and even led,
excursions to, for example, the Middle East where he
was described as "the second-greatest man in Egypt ".
However, while arranging for the German Emperor
Wilhelm
II to visit Palestine in 1898, he contracted dysentery and
died the following year.

The world got around and by the early 1900s, the

who's who of the era- kings, politicians, bishops and
professors - patronized Thomas Cook's travel itinerary.
As the years passed by, the Company introduced the
world to a whole new concept of leisure and business
travel. Driving innovation in the business, it connected
continents and presented the people an economic and
state mode of travel across them. In 1881, Thomas Cook
started its India operations, with its first office being set
up in Mumbai. As it expanded its horizons across the
subcontinent, the Company came to be known as
Thomas Cook Overseas Ltd. And on 21st October 1978,
it was christened Thomas Cook (India) Ltd, only to make
its first public issue in February 1983.
In the year 2000, the Group commenced its
operations in Mauritius and also acquired the Sri Lanka
business from Thomas Cook Overseas Ltd, UK. In 2006,
Thomas Cook (India) Limited acquired LKP Forex Limited
and Travel
Corporation (India) Pvt. Ltd. (TCI). In May 2012, Thomas
Cook Group plc, UK (the erstwhile parent) sold its
investment in Thomas Cook (India) Limited (TCIL) to
Fairbridge Capital (Mauritius) Limited (Fairbridge).
Fairbridge made an open offer to the non-promoters and
post August 14, 2012, TCIL is part of Fairfax Group,
Canada.

TCIL presently operates in over 98 cities across

over 235 locations (including 23 airport counters). The
company has overseas
operations in Sri Lanka which is a branch of TCIL and
Mauritius which is a subsidiary of Thomas Cook (India).
TCIL is supported by a strong partner network of 133
Gold Circle Partners and 165 Preferred Sales Agents in
over 150 cities pan India. The Company employs over
2,802 resources and is listed on both the Bombay Stock
Exchange as well as the National Stock Exchange.
Thomas Cook India‟s Centre of Learning has received
IATA accreditation as “Top 10 South Asia IATA Authorized
Training Centre‟s”, 2012 & 2013.

4.1 Organization Profile

Thomas Cook India Limited

Thomas Cook (India) Ltd. is the leading integrated travel

and travel related financial services company in the
country offering a broad spectrum of services that
include Foreign Exchange, Corporate Travel, Leisure
Travel, and Insurance. The Company launched its Indian
operations in 1881 and is celebrating its 132 years of
world-class service in India. Thomas Cook (India)
operates in the following areas of business, namely:

Leisure Travel

lMICE

Corporate Travel Management

Foreign Exchange

Insurance

E-Business

In May 2012, Thomas Cook Group plc, UK (the erstwhile

parent) sold off its investment in Thomas Cook (India)
Limited (TCIL) to Fairbridge Capital (Mauritius) Limited
(Fairbridge). Fairbridge made
an open offer to the non-promoters and post August 14,
2012, TCIL is part of Fairfax Group, Canada. Thomas
Cook (India) Ltd has been honoured with The Most
Trusted Brand in travel services by The Brand Trust
Report™, India study 2012, voted Best Tour Operator at
the Lonely Planet Travel Awards 2013, Best Tour
Operator - Outbound at the CNBC AWAAZ Travel Awards
2013 and Favourite Specialist Tour Operator at the Condé
Nast Traveler Readers' Travel Awards 2011 & 2012. In
addition, TCIL has been chosen as the Best Corporate
Travel Management Company by World Travel Brands
2012 and recognized as a “Consumer Superbrand” 2011-
2012 by Superbrands. The Company was selected
Retailer of the Year – Leisure & Holidays, by ET NOW in
2013. At the recently concluded National Tourism Awards
2011-2012, TCIL was honoured with 3 prestigious
awards: Special Award for endeavors in launching new
tourism products and exemplary performance during the
year 2011-12; Tour Operator Promoting Niche Segments
other than Adventure and MICE and Award of Excellence:
Best Tourism Promotion Publicity Material.
 Organizational Structure

4.2 Foreign Exchange Services of TCIL

Currency Notes
Prior to your travelling abroad, destination currency
could be picked up from Thomas Cook. There is a range
of 26 currencies.
Traveller’s Cheques
Traveller‟s Cheques are one of the safest and most
convenient ways to carry money while going abroad.
Thomas Cook sells American Express Traveller‟s Cheque in
all the 7 major currencies i.e.: USD, British pounds, Euro,
Australian dollars, Canadian dollars, Swiss francs and
Japanese yen.

Prepaid Cards
Avail of innovative PIN protected prepaid cards that are
now available in different 8 currencies. It is convenient
and safe way to carry money while travelling abroad.
The card can also be reloaded in case you need more
funds while abroad. As far access, withdraw your money
in local regency from VISA and VISA electron ATMs
across the world and also the card to pay for goods and
services at VISA electron merchant establishment.
Wire Transfer (SWIFT)
Thomas Cook Wire Transfer offers a genuinely risk free
channel to send money abroad. Being a privilege
member of SWIFT, your money is remitted with accuracy
and speed. Fund can be wired in 12 major currencies.

Money Transfer Services

Money sent from overseas can be received and paid out
in Indian Rupees, in as little as 10 minutes by any
Thomas Cook office.
U-Special Student Program
This is a unique value proposition for students travelling
abroad for higher studies. A student gets reward points
for any purchase of Thomas Cook products. These points
can be redeemed for attracted gifts/discounts on his
next purchase.
Airport Counters
Thomas Cook 24 hour foreign exchange counters
operating at all the major international airport in India.
Attractive Air Fares
Services of ticket booking and passport assistance are
provided. Tie-up with leading airlines makes to avail of
with fabulous air fares.
Travel Insurance
Thomas Cook Insurance has been most trust worthy in
providing to tourists, students, corporate executives
emigrating Indians. Their world class products viz. travel
care, scholar care, family care, corporate care and
domestic care to help you travel without a worry in the
world.
 4.4 Vision and mission statement

Vision: “we go further to make dreams come true”

Mission/Values: “PRIDE”
P- Pioneering the future
R- Respect the individuals and united as team
I- Integrity
D- Delighting the customer
E- Excellence

Services of Thomas Cook India Limited (TCIL)


Holidays- Inbound

Holidays- International

Holidays- Domestic

Air Tickets

Rail Tickets

Corporate Travel

Meetings, Incentives, Exhibitions and Conferences

Foreign Exchange

Credit Cards

Travel Insurance
Thomas Cook has been granted authorized dealers
license (category11) by RBI to deal in foreign exchange
through its designated branches.
Under this license they have been granted permission to
undertake the following activities:
1. Retail purchases of foreign currencies and traveler‟s cheques.
2. Bulk purchases/sale of foreign currencies from/to
authorized dealers, money changers and
franchisees.
3. Release/remittance of foreign exchange for the
following activities:
a) Private visits
b)Remittance by tour operators/ travel agents to
overseas agents/ principal/ hotels
c) Business travel (including for central and state
government officials)
d)Fee for participation in global conferences and
specialized training
e) Payment for crew wages
f) Film shooting
g)Medical treatment abroad
h)Overseas education
i) Remittance under educational tie up
arrangements with universities abroad
j) Maintenance of close relatives abroad
4. Import and export of foreign currency and export of
encashed
Traveler‟s cheques
 5. Maintenance of foreign currency accounts with
banks abroad and undertaking Forex cover
operations in India and abroad
The activities permitted by RBI are carried out only at
the Foreign Exchange Dealers Association of India.
Foreign Exchange – Products and Services
As an Authorized dealer, services includes wholesale and
retail purchases and sale of Traveler‟s cheques (“TC”),
Prepaid international cards, Inward and outward remittance and
money transfer(“MT”). Some of our services are:

Purchase and Sale of currency notes in 26 destination
currencies

Purchase and sale of foreign currency denominated

Traveler‟s cheques

State Bank of India and Citibank World Money Card as
prepaid cards, which is a convenient way to carry
money overseas

Foreign currency drafts

Wire Transfer of funds

Remittance of money to India through Money Gram

Cash advances against international credit card

Network
Strong network enables us to attract large wholesale
clients such as public and private sector banks, FFMC‟s and
RMC‟s to use our services. We have a strong network of
approximately 216 offices in 79 cities and 169 RMC‟s and
hotel Franchise. Company has foreign exchange counters at
the 24 international airports of Mumbai, New Delhi,
Kolkata, Chennai, Cochin, Trivandrum etc which are open
24 hours and 365 days a year to cater to the needs of
the International travelers. Our company also has a
round the clock Foreign Exchange counter at the New
Delhi Railway station.
 4.5 Company at a glance

Name : Thomas Cook (India)

Limited

Board of Directors

M K Sharma : Chairman

Madhavan Menon : Managing Director

Krishnan : Executive Director-Finance

Chandran : Executive Director-

Ratnaswami Foreign
Exchange
Harsha : Non- Executive Director

Raghavan : Non- Executive Director

Ramesh : Non- Executive Director

Savoor Uday : Non- Executive Director

Khanna

Kishori Udeshi

Regional Head Office

Thomas Cook Building
Dr.Dadabhai Navoroji Road,
Fort Mumbai, Maharashtra
India
PIN-400001
Research Methodology
5.1 Research Methodology
Research Methodology is a way to systematically
solve the research problem. It may be understood as a
science of studying how research is done scientifically.
The various steps that are generally adopted by a
researcher in studying his research problem along with
the logic behind them are studied from it. It is necessary
for the researcher to know not only the research
methods/techniques but also the methodology. It is
therefore necessary to design his/her methodology for
them problem as the same may differ from problem to
problem.

For successful understanding and completion of the

project, this research was carried out in distinctive steps
which is shown below with the help of a figure:

Problem Identification

Research Design

Data Collection

Data Analysis & Interpretation

Research Report
Fig 5.1 Steps in Research Methodology
5.2 Problem Identification:
The first and the most important step of research are to
properly define the problem. Here the research problem
is regarding the level of consumer awareness of Plastic
money; a comparative study on Multi Currency Forex
Cards.

5.3 Research Design:

Research Design indicates the methods and procedures
of conducting research study. In this case Descriptive
research is undertaken which helps t know the
characteristics of certain groups.

5.4 Data Collection and Sampling:

Data has been collected from various sources, there is
combination of both primary and secondary data that
has been used in this research.
a) Primary Data
Primary data has also been collected through
questionnaire and interviews of a cross section of
population. The data collected through this method was
adequate enough to make projections in the study.
 Questionnaires:
Questionnaires are popular means of collecting data,
but are different to design and often require many
rewrites before an acceptable questionnaire is produced.
Types of Questions Used Are:
 Attitude questions to find out the respondent‟s opinions or
attitudes to a given situation. A likert scale provides a
battery of attitude statements. The respondents then
say that how much they are aware with each one.
An open question such as “What are the advantages of Thomas
Cook? and What are the disadvantages of Thomas Cook? ”
should be used as an adjunct to the main theme of the
questionnaire and could allow the respondent to
elaborate upon an earlier more specified question.
However they were not be used to introduce a section
since there is high risk of influencing later responses.
The main problem of open question is that many
different answers have to be summarized and possibly
coded.
 Interviews
Interviewing is a technique that is primarily used to gain
an understanding of the underlying reasons and motivations for
people‟s
attitudes, preference and behavior.
b) Secondary Data
Articles have been sourced from magazines and journals
dealing with current happenings in Foreign Exchange.
Internet and Text books related to Foreign Exchange and
Research methodology have been a major secondary source
for the extraction of the Expert‟s opinion.

Sampling Technique
Since the project deals with the peoples from abroad,
NRIs, leisure travelers and corporate travelers
convenient sampling is approximate for making
projection in the study. Population group which includes
Peoples from abroad and corporate travelers are from
Mumbai region only. The units are selected because of
their convenient accessibility and proximity. The data are
quickly available and easily gathered. I have therefore
chosen the sampling method.

Sampling Size:
The research is restricted to a sample size of 50.
5.5 Data Analysis and Interpretation
Data Analyzing and Interpretation is the step to be
taken after the completion of the above mentioned
steps. For this research bar diagrams, pie charts and
other data representation techniques are used for
analyzing and interpreting the data.

6.1 Objective
Appropriate decisions, innovations and
implementations are necessary to compete with the
international standards of any kind of the industry.
Potential market is the vital part of it. So to attract
potential customers and retain them is the success of
the business. The project which is being implemented in
the name of “consumer awareness of plastic money; a
comparative study on TCIL‟s new product line-Borderless
Prepaid Multicurrency Forex cards”
1. To find out the awareness of foreign exchange
market, its evolution from hard core basic services
to modern technologies.
2. To access the different foreign exchange services
of Thomas Cook India Ltd.
3. To find out the markets, where the foreign
exchange business is carrying out.
4. To find out the various foreign exchange services
carried out the travel agents.
6.2 Scope Of Study
1.As the company is a MNC, its operations are also
in the global level.So the awareness level
assesses its marketability.
2. Consumer awareness assesses product‟s market position also.

6.3 Limitations Of Study

1.As the Company is a MNC,its hard to assess a product‟s
Marketability only by taking the reports from
single city and a Retail outlet.

2.The study is conducted only in Mumbai area only.

3.Forex Cards are mainly used by foreign

travellers; common peoples are still unaware of
the New product.
LITERATURE
REVIEW
 7.1 INTRODUCTION

Happenings in the foreign exchange market (henceforth

forex market) form the essence of the international
finance. The foreign exchange market is not limited by
any geographical boundaries. It does not have any
regular market timings, operates 24 hours 7 days week
365 days a year, characterized by ever-growing trading
volume, exhibits great heterogeneity among market
participants with big institutional investor buying and
selling millions of dollars at one go to individuals buying
or selling less than 100 dollar.

Traditionally Indian forex market has been a highly

regulated one. Till about 1992-93, government exercised
absolute control on the exchange rate, export-import
policy, FDI( Foreign Direct Investment) policy. The
Foreign Exchange Regulation Act(FERA) enacted in 1973,
strictly controlled any activities in any remote way
related to foreign exchange. FERA was introduced during
1973, when foreign exchange was a scarce commodity.
Post-independence, union government‟s socialistic way of
managing business and the license raj made the Indian
companies noncompetitive in the international market,
leading to decline in export. Simultaneously India import
bill because of capital goods, crude oil & petrol products
increased the forex outgo leading to sever scarcity of
foreign exchange. FERA was enacted so that all forex
earnings by companies and residents have to
reported and surrendered (immediately after receiving)
to RBI (Reserve Bank of India) at a rate which was
mandated by RBI.

FERA was given the real power by making “any violation of

FERA was a criminal offense liable to imprisonment”. It a
professed a policy of “a person is guilty of forex violations unless
he proves that he has not violated any norms of FERA”. To sum
up, FERA prescribed a policy – “nothing (forex transactions) is
permitted unless specifically mentioned in the act”.

Post liberalization, the Government of India, felt the

necessity to liberalize the foreign exchange policy.
Hence, Foreign Exchange Management Act (FEMA) 2000
was introduced. FEMA expanded the list of activities in
which a person/company can undertake forex
transactions. Through FEMA, government liberalized the
export-import policy, limits of FDI (Foreign Direct
Investment) & FII (Foreign Institutional Investors)
investments and repatriations, cross-border M&A and
fund raising activities.

Prior to 1992, Government of India strictly controlled the

exchange rate. After 1992, Government of India slowly
started relaxing the control and exchange rate became
more and more market determined.
Foreign Exchange Dealer‟s association of India (FEDAI), set up in
1958, helped the government of India in framing rules
and regulation
to conduct forex exchange trading and developing
forex market In
India.
7.2 PARTICIPANTS AND DEALERS IN FOREIGN EXCHANGE
MARKET

Foreign exchange market needs dealers to

facilitate foreign exchange transactions. Bulk of foreign
exchange transaction are dealt by Commercial banks &
financial institutions. RBI has also allowed private
authorized dealers to deal with foreign exchange
transactions i.e. buying & selling foreign currency. The
main participants in foreign exchange markets are

1. Retail Clients

Retail Clients deal through commercial banks and

authorized agents. They comprise people, international
investors, multinational corporations and others who
need foreign exchange.

2. Commercial Banks

Commercial banks carry out buy and sell orders

from their retail clients and of their own account. They
deal with other commercial banks and also through
foreign exchange brokers.

3. Foreign Exchange Brokers

 Each foreign exchange market center has some
authorized brokers. Brokers act as intermediaries
between buyers and sellers, mainly banks. Commercial
banks prefer brokers.
4. Central Banks

Under floating exchange rate central bank does

not interfere in exchange market. Since 1973, most of
the central banks intervened to buy and sell their
currencies to influence the rate at which currencies are
traded.

From the above sources demand and supply

generate which in turn helps to determine the foreign
exchange rate.

7.3 TYPES OF FOREIGN EXCHANGE MARKET

Foreign Exchange Market is of two types‟ retail and

wholesale market.

1. Retail Market

The retail market is a secondary price maker. Here

travelers, tourists and people who are in need of foreign
exchange for permitted small transactions, exchange
one currency for another.

2. Wholesale Market
 The wholesale market is also called interbank
market. The size of transactions in this market is very
large. Dealers are highly professionals and are primary
price makers. The main participants are Commercial
banks, Business corporations and Central banks.
Multinational banks are mainly responsible for
determining exchange rate.

3.Other Participants

a) Brokers

Brokers have more information and better

knowledge of market. They provide information to banks
about the prices at which there are buyers and sellers of
a pair of currencies. They act as middlemen between the
price makers.

b) Price Takers

Price takers are those who buy foreign

exchange which they require and sell what they earn at
the price determined by primary price makers.

Indian Foreign Exchange Market

It is made up of three tiers

 Here dealings take place between RBI and

Authorized dealers (ADs) (mainly

Commercial banks).

Here dealings take place between ADs

Here ADs deal with their corporate customers.
7.4 GENERAL GUIDELINES REGARDING FOREIGN
EXCHANGE

1)Documents needed for release of Foreign exchange:

 A valid passport

 Confirmed air ticket, if not available. CRS print put

 Form A2- Application cum Declaration

 Sales advice in case of issue of travelers cheques

 TT/DD/Prepaid card application

2)Mode of release of foreign exchange

 Maximum of USD 3000/- or equivalent, in foreign

currency notes.

 Not exceeding USD 5000/- in foreign currency

notes for persons traveling to Iraq/Libya.

 Entire entitlement may be released in foreign

currency notes for travel to Russia, CIS or Iran.

 Forex can be purchased in a combination of

Currency notes, Travelers Cheques, Demand
drafts, Telegraphic transfers, prepaid cards.
3)Mode of payment

 Cash payment may be accepted if the value of

transaction does not exceed Rs.50000/-

 However, for cash payments in excess of

Rs.25000/- PAN card/ G.I.R number is required. If
the PAN card or G.I.R number is not available then
the applicant must fill up FORM 60

 Cheques / Demand drafts/ Pay orders where the

rupee equivalent exceeds Rs.50000/-

4)Acknowledgment of receipt of foreign exchange

 A delivery letter should always be carried by the

person going to handover the FX to the customer.

 The customer should sign the sales bordereaux or

a copy of the same.

 The customer should sign on the reverse of the

copy of the sales advice as acknowledgment of
having the currency note as well as Travelers
cheques listed on the face of the sales advice.
5) RBI prescribed limits for release of foreign exchange:

Purpos whic RBI prior approval

Sr.No e for h required
foreig exchang
n e could where the drawal exceeds
be drawn

USD 10000 per person

1 Private visit per
financial year

USD 20000 per visit per

2 Business Travel person

Overseas Estimate from institution

3 education abroad
or USD 100000 per
academic
year whichever is higher

Medic Estimate from doctor in

4 al treatment India or
hospital/doctor abroad or
abroad USD
100000 whichever is
higher

5 Employment USD 100000

6 Emigration USD 100000

7 Maintenance of close USD
100000 relatives

(RBI prescribed limits for release of foreign exchange)

6)Resident foreign currency (domestic) [(RFC (d))]
account

 A resident individual may maintain a RFC (D)

account of foreign exchange acquired in the form
of currency notes and travelers cheques:

 While on a visit to any place outside India by way

of payment for services

 From any person not resident in India who is on a

visit to India, as honorarium or gift or for services
rendered or in settlement of any lawful objection

 By way of honorarium or gift while on a visit to

any place outside India or

 Represents the unspent amount of foreign

exchange acquire by him from an authorized
person for travel abroad

 As gift from a close relative

 By way of earnings received as proceeds of life

insurance policy

 Representing disinvestment proceeds

 By way of earning of exports of goods and
services
 
Debits to the account shall be for payments
towards current account transactions

There shall be no ceiling on the balance in the
account

7)AML guidelines for sale of foreign exchange

 In all cases of foreign exchange, irrespective of

the amount involved, for identification/
verification purpose, the passport of the customer
should be insisted upon if travel is involved. In
other cases i.e. outward remittances e.g.
maintenance of close relatives. Application fees,
processing fees, etc. any other form of
government issued photo of signature identity
may be accepted provided the customer does not
have a passport at all. Copies of all the relevant
pages of the ID document/ passport must be kept
on record.

 The sale of foreign exchange should be made only

on personal application identification.

 If the amount due from the customer for sale of

foreign exchange transaction is more than
Rs.50000/-, payment received only by account
payee cheque / demand draft. The transaction
should not be split into part payment pay order/
demand draft and cash.
  All sales to a person within a calendar month are
to be treated as single transaction for the
purpose.

 If the rupee equivalent of foreign exchange drawn

exceeds Rs.50000/- for a single transaction or
more than one transaction reckoned together at
any time during the calendar month, it should be
paid only by cheque or draft.

8)Compliance with the provisions of the Income Tax Act

1961

 Before making remittances to non-residents we

have to obtain from the applicant an undertaking
(in duplicate) and a CA certificate (in duplicate).

9)Approaching RBI

 If there is a need to approach RBI either verbally

or by way of a letter, prior approval should be
obtained from the Sr. Vice President- foreign
exchange/ Head of foreign exchange and the draft
of the letter to be sent to RBI should also be
vetted by the Sr. Vice President/ Head of foreign
exchange operations and the FEMA consultant.
 7.5 PARTICIPANTS AND DEALERS IN FOREIGN
EXCHANGE MARKET
 Foreign exchange market needs dealers to
facilitate foreign exchange transactions. Bulk of
foreign exchange transaction are dealt by
Commercial banks & financial institutions. RBI has
also allowed private authorized dealers to deal
with foreign exchange transactions i.e. buying &
selling foreign currency. The main participants in
foreign exchange markets are
 1. Retail Clients
Retail Clients deal through commercial
banks and authorized agents. They comprise
people, international investors, multinational
corporations and others who need foreign
exchange.
 2. Commercial Banks
Commercial banks carry out buy and sell
orders from their retail clients and of their own
account. They deal with other commercial banks
and also through foreign exchange brokers.
 3. Foreign Exchange Brokers
 Each foreign exchange market center has
some authorized brokers. Brokers act as
intermediaries between
 buyers and sellers, mainly banks. Commercial
banks prefer brokers.
 4. Central Banks
Under floating exchange rate central bank
does not interfere in exchange market. Since
1973, most of the central banks intervened to buy
and sell their currencies to influence the rate at
which currencies are traded.
From the above sources demand and supply
generate which in turn helps to determine the
foreign exchange rate.
 DATA ANALYSIS
AND
INTERPRETATION
8.1 INTRODUCTION

The purpose of data collection is to obtain information to

keep on record, to make decisions about important
issues, to pass information on to others. A formal data
collection process is necessary as it ensures that data
gathers is both defined and accurate and that
subsequent decisions based on arguments embodied in
the findings are valid. The process provides both a
baseline from which to measure from and in certain
cases a target on what to improve.
This chapter provides analysis of the data collected
through the sample survey in the market. The
respondents were the travel agencies,Foreign Exchange
Agencies and Banks. This survey is an initiative to
understand the level of awareness about the Forex
Services, especially the acceptance level of TCIL‟s various
Forex services. Total 50 respondents were surveyed. The
software‟s used were MS OFFICE, MS Excel. After analyzing
the data various findings and suggestions were given at
the end of the report to sort out the problem.
 1. Awareness of forex services Table 1

No:
Variables Respondent
Extremely aware 22
Moderately aware 20
Slightly aware 8
Not at all aware 0

Fig 1

Awarness of foreign exchnage

Extremely aware Moderately aware Slightly aware Not at all aware

0%

16%

44%

40%

In the above diagram 44% of the respondents are

extremely aware of foreign exchange services, 40% of
the respondent are moderately aware about the foreign
exchange services, 16% of the travel agents are
slightly aware.
2. Awareness of various forex services by Travel Agents
Travelers Cheques 50
Foreign Currency 50
Notes
Forex Cards 37
Drafts 34
Swift Transfer 20

Fig 2

Awareness of forex services

60

50

40

30

20

10

0
Traverles Foreign Forex Drafts Swift
cheque Currency Cards Transfer Awareness of forex services
Notes

Since it was a multiple choice question the above

diagram shows that 50 respondents are aware of
travelers cheque and foreign currency notes, 37
respondents knows about the Forex card, 20
respondents knows about the swift transfer , 34
respondents know about the drafts.
 3.Sources of information of different forex services
Table 3
No:
Variables Respondent
Brokers 12
others 23
Friends and
Relatives 10
Prospectors 8
Newspaper/Maga
zine 15

Sources of Information
Sources of Information
25 23

20
15
15 12
10
10 8

In the above diagram other sources of information is the

widely used sources of information, 12 respondent came
to know from brokers, 10 respondents feels they got
information from friends and relatives, 8 respondents
came to know from the prospectors and 15 respondents
got the information from newspaper and magazine
4.Earlier used forex services by travel agents Table 4

Variabl No:
es Respondent
Traverles
cheque 50
Foreign
Currency
Note
s 50
Prepaid Travel cards 5
Draft
s 10
Swift Transfer 6
Fig
4

Earlier used forex services

Earlier used forex services

60
50 50
50
40

30

20
12
9 10
10
0
Traverles Foreign Forex Cards Drafts Swift Transfer
cheque Currency Notes

In the above diagram all the 50 respondents have

earlier used travelers cheque and foreign currency, 9 of
the respondents have used the Forex card, 12
respondents have earlier used draft services, 10 of the
respondent have used swift transfer
 5.Forex services which is preferred by Travel Agents
Table 5
No:
Variables Respondent
Traverles cheque 11
Foreign Currency
Notes 26
Forex Cards 4
Drafts 2
Swift Transfer 7

Fig 5

Good to use
travers cheque foreign currency notes Forex card drafts swift transfer

14%
4%
22%

8%

52%

In the above diagram 52% of the travel agents feels

foreign currency is good to use, 22% are feels travel
cheque is good to use, 8% of the travel agents feels
Forex card is good, and rest 4% & 14% supports drafts
and swift transfer respectively.
 6. Major priority given to Forex Services by travel agents Table 6

No:
Variables Respondent
Safety 11
Speed 25
Liquidity 5
Convenient 4
All 5

Fig 6

Major Priority Given To Forex Services

Safety Speed Liquidity Convenient All

10%
8% 22%

10%

50%

50% of the respondent has given priority to speed, 22%

of the respondent has given priority to safety, 10% has
given priority to all the services, 8% of them given
priority to convenient, 10% of them has given priority to
liquidity
 7. Any Association with particular forex Company by
travel agents Table 7

No:
Variables Respondent
Yes 12
No 38

Fig 7

Association with forex company

yes no

24%

76%

In the above diagram it shows that 76% of the respondent doesn‟t

have any association with particular forex company
while 24% of the
respondent have tie up with foreign exchange company
 8. Awareness of Thomas Cook

Table

No:
Variables Respondent
Yes 38
No 12

Fig 8

Awareness Of Thomas Cook

Yes No

24%

76%

The awareness level of Thomas cook (forex) in Trissur

district is 76% while 24% of the travel agents are not
still aware of the forex services.
 9. Forex Services of Thomas Cook Used by
Travel agents. Table 9

No:
Variables Respondent
Yes 11
No 39

Fig 9

Forex Services TC Used By Travel agents

Yes No

22%

78%

22% of the respondent in Trissur district has used Forex

Card services of Thomas cook while 78% haven‟t used the
services of Thomas cook‟s Forex Card.
 10. Awareness of Multi Currency Card

Table 10

No:
Variables Respondent
Yes 8
No 42

Fig 10

Awareness Of Multi Currency Card

Yes No

16%

84%

84% of the respondents are not aware of the newly

launched multi-currency card of Thomas cook forex,
while 16% of the respondents are aware of the multi-
currency card.
 11.Swift Transfer Used by Travel Agents

Table 11

Variables No: Respondent

Yes 3

No 47

Fig 11

Swift Transfer Used

Yes No

6%

94%

94% of the respondents have never used the swift transfer of Thomas Cook India Ltd, while 6%
of the respondents have used the swift transfer of Thomas Cook
FINDINGS AND
SUGGESTIONS
 9.1 FINDINGS

Different services of forex and RBI regulations are co
related that is when the travel agents use different
services of forex they will be more aware of the RBI
regulations.

Operations of the travels agents and services of
foreign exchange are correlated that is when the
travel agents do more foreign business they are
getting more aware of the different forex services.

44% of the respondents are extremely aware of
foreign exchange services, 40% of the respondent
are moderately aware about the foreign exchange
services, 16% of the travel agents are slightly
aware.

52% of the travel agents feels foreign currency is good
to use, 22% are feels travel cheque is good to use, 8%
of the travel agents feels prepaid travel card is good,
and rest 4% & 14% supports drafts and swift transfer
respectively.

50% of the respondent has given priority to speed,
22% of the respondent has given priority to safety,
10% has given priority to all the services, 8% of them
given priority to convenient, 10% of them has given
priority to liquidity.

Other sources of information is the widely used
sources of information, 12 respondent came to know
from brokers, 10 respondents feels they got
information from friends and relatives, 8 respondents
came to know from the prospectors and 15
respondents got the information from newspaper and
magazine.

The awareness level about the Thomas Cook in
Mumbai 76%.

76% of the respondent doesn‟t have any association with
particular forex company while 24% of the respondent
have tie up with foreign exchange company.

22% of the respondent in Mumbai has used services of
Thomas cook forex while 78% haven‟t used the services of
Thomas cook forex.

While told to rate the travel agency when compared to
its Competitors the travel agency got itself an average
6 on 10.

All the respondants are on the positive note of using
the services of the travel agency in the future.
 9.2 SUGGESTIONS
 The Foreign Exchange Market has been growing
at a
rapid pace, reflecting a general growth in the
volume of cross boarder transaction, trade, and
investment. When the government takes the
decision of removing the restriction on multi brand
investment, there is a chance of foreign investment
in Mumbai Districts. Even now those districts have
the potential for foreign exchange activity.

Now there are a lot of players are in every urban
and semi urban areas. So we should more in
accessible to customers. Thomas Cook India Limited
[TCIL] has to start more than 2 branches in major
towns in Mumbai.

Thomas cook may conduct a marketing program
such as help desk in small districts of Mumbai about
their new offers and products which can attract the
travel agents of that area.

Thomas cook can develop a customer relationship
management(CRM) program and use it for getting
aquainted
with its frequent fliers and other service users.
Customer in
today‟s marketing world looks for personalized attention.
Therefore any CRM program will provide a
competitive edge to the organization. Thomas Cook
could use CTM as a base line for developing CRM
program. By extracting enormous data stored in
CTM, it could prepare a separate list of most
frequent
 service users. Depending upon the service used
some discount or any kind of favour could be
provided to them.

More no of people are needed inward remittance
and currency exchange services. Very less people
are prefering the travelers cheque. By considering
the Tourism opportunities of the Mumbai
multicurrency card has to be popularized.

Increase the awareness level of the Thomas Cook in
the Whole Sale and Retail Customers especially the
service wise and product wise. Brand advertisement
has to reach the mind of the customers in all the
areas.

The development of leisure team of Thomas cook in
Trissur can increase the business of leisure travel as
well as the forex business.

Respondent were very keen to participate in survey
as they are eager to let the agency know about the
services rendered and also to give in their
suggestions. Therefore these kind of surveys should
be continued in order to get a feedback from
travellers directly.
 9.3 CONCLUSION
The nature of business is changing because of the
globalization and flow of technology. Because of that the
Foreign Exchange Business has also very good
opportunities in the emerging economy like India.
Finding the potential market and accessible to the
customers by providing very good services essential to
success in this field.

The project on “A Study of Consumer Awareness Of

Foreign Exchange Services with special reference to the
Various Forex Services Provided By Thomas Cook India
Limited” reveals the market details of Forex Business.

Thomas Cook (India) Limited is one of the oldest and

most trusted travel agency celebrating its 130 years of
world-class service in India, and the Corporate travel
division is the backbone of the company. Consumer
awareness is considered as one of the important factors
as far as Foreign Exchange Company is concerned. Being
a company in the service industry Thomas Cook should
give more importance to the consumers and their
awareness level. As we all know the golden word of
management is “Consumer is the King”. Consumer is the
only revenue source for a company. Being a giant in this
business Thomas Cook has a prosperous future ahead.
The brand image itself is an important advantage for the
company. So satisfying the consumer must be the pivotal
function of the company.
BIBLIOGRAPH
Y
 BIBLIOGRAPHY

This project was completed with the help of some

secondary sources which are mentioned below:

1. Tourism Statistics at a Glance, 2012. Ministry of

Tourism Government of India
2. http://incredibleindia.org/Tourism_Stastics2012.pdf
pg 15
3. www.wikipedia.org/wiki/Foreign_exchange_market.
4. www.thomascook.in