The Journey Continues On A Positive Note
Thomas Cook, one of India’s largest travel agency and listed on the stock exchange, has posted a 43% growth in this quarter when compared to the same quarter last year. The company is on an upswing and the bumps encountered in the first half of this year seem to have flattened to pave the road ahead for a smoother journey.
In general the Thomas Cook financial year began with a natural disaster of huge proportions - Tsunami. Added to that have been the unprecedented rains in Mumbai, Bangalore and Chennai affecting world sentiment towards India. This has also been the year for cuts in airfares and commissions and travel advisories issued against India.
The Financial Services business bore the brunt of nature and other economic factors including lower inflow of foreign exchange arising from lower prevalent interest rates in foreign currency accounts.
The Travel and Travel Related Services has done well despite reduction in commission structure and reduced airfares. The company has shown above average growth in the leisure businesses (Inbound and Outbound). Innovative products, new destinations, better vendor negotiations, cost control and specific pricing strategies have substantially helped.
The subsidiary companies involved in Cargo and Insurance businesses performed extremely well showing both top and bottom line growths. Focus on customer service, improved product pricing and development of new products were the corner stones of success. The operations in Sri Lanka were severely hit by the Tsunami but are courageously recovering from the disaster. Operations in Mauritius performed well showing considerable improvement over last year. Opening of new company branches and enhanced customer service, continues helping the business stride forward.
Right now, Thomas Cook is bullish and has a positive outlook all around. India is the focus of global economic growth resulting in increased tourist and business travel. This should be impacting our country in a positive manner. The year ahead, our 125th year in India, looks encouraging indeed!