PTS- 06 REPORT ENROLLMENT NO.

076413680

PROJECT REPORT- PTS- 06

KUONI BRAND: Expect More

PTS-06 Project on Tourism Marketing

Indira Gandhi National Open University (IGNOU)

Year 2009-2010
Submitted By – Vikas Kumar Pandey
PTS- 06 REPORT ENROLLMENT NO. 076413680

No.1 in Outbound
No.1 in Destination Management
No.1 in India
Rs. 2,200 Crores Sales
620 Office & Branches
3200 Employees
PTS- 06 REPORT ENROLLMENT NO. 076413680

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

I express my sincere thanks to Mr. Zubin Karkaria Owner of KUONI Franchisee for
giving me an opportunity to undergo a project on “find out the potential and
awareness of KUONI brand as well as creating awareness amongst the people of
NCR region and understanding the whole process of booking.

I would also like to take the opportunity to thank Mr. Malvinder Rikhy (Chief
Operating Officer- Business Travel), Mr. Paul John (Chief Financial Officer) Mr.
Gaurav (Sales Executive-WFT), Mrs. Dimple Mucchal (FIT), Mrs. Bhavna Tandon
(FIT) and all the other employee of the KUONI, Gurgaon for helping me to
complete my training successfully and extending all cooperation whenever I
needed it.

I would also like to thank the faculties and the administration team of the Skyline
Business School.

My deepest regards to my parents who have always encouraged me in pursuit of

higher education.

Thank to all.
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1. INTRODUCTION

The training was carried out as a partial fulfillment of my PGDBM degree under
Skyline Business School.

The project has been carried out at KUONI, Gurgaon.

My project was based on the study of find out the potential and awareness of
KUONI brand as well as creating awareness amongst the people of NCR region”
and understanding the whole process of booking .
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2. METHODOLOGY

The methodology of my assignment was purely based on personal observation as

well as interaction and discussion with customer and the executive of the KUONI
Gurgaon.

STUDY AREA:

Persent study has been carried out at KUONI Franchises, Gurgaon.

NATURE OF DATA:

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

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

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

The Travel and Tourism industry is still one of the largest single businesses in
world commerce and its importance is widely recognized.
The tourism industry is now one of the largest sectors earning foreign
exchange. In the face of many benefits, many countries have started assigning
due weight age to the tourism industry in their national development agenda.
Tourism is an industry that operates on a massively broad scale: it embraces
activities ranging from the smallest sea-side hotel; to air-Lines, multi-national
hotel chains and major international tour operators. Originally, non-traditional
industries such as tourism emerged as a solution to strike a balance between
ecology and industry

 Tourism is one of the world’s fasted growing industries at present and

holds the status of the world’s no. 1 industry.
 Spending on tourism amounts to 5%-10% of total consumer, spending
in a year worldwide.
 The industry creates a job every 2.4 seconds with every one of those
direct jobs creating another 11 indirect ones.
 The tourism industry as a whole is presently estimated to earn over
US$ 3.5 trillion worldwide.
 India’s share of the total market is a pittance at 0.51%. The non-tourist
countries like Malaysia and Indonesia get much more tourists than
India.
 The tourism industry’s foreign exchange earnings in India are around
$3.2 billion. Tourism is the highest foreign exchange earner if we
consider the fact that net value addition in Gems and jewellery is less
than 30% whereas, in tourism it is more than 90%.

Recent statistics have revealed that during the first quarter of 2006, the
performance of the tourism industry has been very encouraging which has
registered an 11% increase in foreign tourist arrivals.
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India Tourism office at Tokyo won two International Awards in Tour Expoheld at
Daegu in Korea for excellent tourism promotion. Indian Pavilion won the Best
Booth Design Award as well as Best Folklore Performance Award competing with
major players in tourism such as china, Japan, Thailand, Malaysia and Canada.
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5. SECIAL FORMS OF TOURISM

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

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

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

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

HERITAGE TOURISM
It is visiting historical to (Rome, Athens, Cracow) or industrial sites, such as old
canals, railways, battlegrounds, etc,
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HEALTH TOURISM
It means usually to escape from cities or relive stress, perhaps for some fun in
the sun etc. often to “health spas”

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

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

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

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

SPORT TOURISM
Skiing, golf and scuba diving are popular ways to spend a vacation. Also in this
category is vacationing at the winter home of the tourist’s favorite baseball
team, and seeing them play every day.
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ECO TOURISM
It means sustainable tourism which has minimal impact on the environment,
such as Safaris (Kenya), Rainforests (Belize) and Hiking (Lapland), or national
parks.

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

One such way of classifying the users is by dividing them into categories such
as general, Sex, Region, Education, etc.

 General: Domestic, Foreign Kids, Teens, Youths, Seniors Students,

Executives, Artists Politicians, Movie stars
 Sex: Men, Women
 Region: Rural, Urban
 Education: Literate, Illiterate
 Status: Rich, Poor
 Profession: Executives, Academics, Sportsmen, Artists
 Occupation: White collar, Blue collar.

Another method of classifying of tourism services is on the basis of the frequency

of usage of services:

 Non-users: They lack the willingness, desire and ability (income &
Leisure time).
 Potential Users: They have the willingness but the marketing resources
have not been used optimally to influence their impulse.
 Actual Users: They are already using the services generated by the
tourist organizations
 Occasional Users: They have not formed the habit of traveling
 Habitual Travelers: They have formed a habit and avail of the services
regularly.
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7. MARKETING MIX

Product

Product is the combination of tangible and intangible elements. The tourism

product, which is mainly the destination, can only be experienced.The views of
the location travel to the destination, the accommodation and facility as well as
the entertainment at the destination all form the tourism product.

Thus it is a composite product combination of attraction, facilities and

transportation. Each of these components has its own significance in the product
mix and in the absence of even single components, the product mix is incomplete.

Price

Pricing in tourism is a complex process. Pricing includes the prices of other

services like Air travel, Bus, Railways, Hotels, etc. All are included in tourism
package. Pricing also depends on the Geographic location of the destination.

Pricing also depends on seasonality. Seasonality is the most important factor in

pricing. To match demand and supply tourist managers try to get either discount.
E.g. Taj is the tourist attraction in India. Pricing is also based on competitors
pricing. Pricing is also subject to government regulations. E.g. Air price changes
tourism package also changes, if Hotel charges change then also tourism package
changes.

Pricing of the tourist product is a complex matter because of its composite nature.
Geographical location of the destination affects the pricing decision. At the same
time, seasonality factor and varying demand cannot be overruled. The objective
of pricing in any other firms is to fetch a target market share, to prevent
competition, and to take care of the price elasticity of demand.

A very important way, in which the travel and tourism business responded to
their highly complex pricing circumstances, is to operate at two levels. The first
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level is corresponds with the marketing strategy, which concerns with the
product positioning, value for the money, long run return on investments etc. The
second level corresponds to the marketing operations or tactics where the prices
are manipulated to match the current demand and competition.

Place

Different distribution strategies can be selected for Tourism marketing Tourism as

a product is distributed as a travel. Internet is also used widely. There is an also
small agent spread all over the town who plays a role of place. Large travel
companies like Thomas Cook, Cox & Kings, KUONI, etc they act as a wholesalers
and these wholesalers also act as a retailer.

The tourism marketer may not have adequate choice of the tourist center,
because in most of the case the tourist destinations many be natural, historical
attraction. But, infrastructure facilities, transportation, communication are
important for the development of the tourist center. The major decision that the
tourism marketer takes regarding distribution is relating to the channel of choice
and channel members. The uniqueness of tourism industry is predominant
position of intermediaries. The two major functions performed by the distribution
system in tourism marketing are:

To extend the number of points of sales or a access, away form the location at
which services are performed or delivered

To facilitate the purchase of service in advance

Different distribution strategies may be selected to reflect the company’s overall

objectives. The middleman may be tour operators , who buy tourism products in
bulk and make them available to travel agents who are retailers. The range of
tourist products, which are bought by the tour operators are airline seats, hotel
accommodation, bus for local sight seeing, etc. they may also sell directly to
customers. The latest mode of reaching the tourist is through Internet. Ticket
booking can be done through the Internet and payment is made with credit card.
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Promotion

Advertising and sales promotion in Tourism can be very effective when

supplemented by publicity and personal selling. They use electronic, print all
sorts of media they use; and it is highly promoted industry. Public or PR (Public
Relation) plays an important role in tourism, It is also through recommendation of
friends and relatives this is a biggest promotion.

Creation of awareness is an important factor in the formulation of marketing mix

for the tourism industry. The promotion task simplifies the activities of informing.
Persuading and influencing the decisions of potential tourists. The promotion mix
plays a vital role as the users of service feel high degree of involvement and
uncertainty about the product and their role in buying process. Some of the
important and Public relation.

Advertising and sales promotion activities in tourism can be very effective when
supplemented by publicity and personal selling. Advertising messages may range
from subtly attractive visual message and symbols designed to appeal and
stimulate travel desire and needs to simple sales announcements drawing
attention to specific product offers.

World-of-mouth is a very important tool of promotion in tourism. Research shows

that about 80% of the tourist visited different places on the persuasion of their
friends and relatives and also their own judgments. Brochures are another form
of communication provided by tour judgments. Brochures are another form of
communication provided by tour operators to stimulate customers and motivate
them to buy. They are used to demonstrate in pictures and words the images and
positioning of the product and the organizations.

People

It plays a most important part in tourism. In people local people are very
important, that how they treat tourist. The travel agents, guides, staff of travel
companies, sales staff, etc they are the people. Travel Company also like Railways,
Air, etc. is included in people. Normally a tourist assures a tourism quality like
hotels, Travel Company.
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The personnel who attend to the needs of the tourist form an essential ingredient
in tourism marketing. The sales personnel are responsible for dealing with the
customer behind the counter. The airline and transportation crew interact with
customers while traveling. The resort of hotel representatives enter to the needs
of the tourist when they reach the destination.

The tourist guides, who interact with the customers at the tourist location, all
form the people element in tourism marketing. These contract persons must be
trained on interpersonal skills as well as knowledge of the product. In the tourism
industry the travel agents and the travel guides are the two most important
people who speak a lot about the industry. Hence it is imperative that they have
to be at their best at all times travel guides especially, are expected to have a lot
of patience, good sense of humor, tact to transform the occasional tourists into
habitual ones, thorough knowledge of the places, linguistic skills etc.

Process

The operation process of the tourism firm will depend on the size of the tourism
firm. The sequential steps involved in the delivery of the tourist products are:

Provision of travel information------- The information regarding the travel is

provided at a convenient location where the potential tourist seeks clarification
about his proposed tour.

Preparation of itinerates -------- It is a composition of series of operations that are

required to plan a tour.

Liaison with providers of services ------- Before any form of travel is sold over the
counter to a customer; contracts have to be entered with the providers of various
services including transportation companies, hotel accommodation, coaches for
local sightseeing etc.

Planning and costing tours ------- Once the contracts and arrangements are
entered into, then the task of planning and costing the tour, will depend on the
tour selected as well as individual requirements.
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Ticketing ------ The computerized reservation system has in recent years

revolutionized the reservation system for both rail and air travel.

Provision of foreign currency and insurance ------- In case of foreign travel the
final task provide foreign currency as well as insurance

Physical Evidence

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

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

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

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

Such segmentation is useful when deciding the offerings to target a particular

segment. For example.

The mass market consists of vacationists that travel in large groups and prefer all-
inclusive tours, they are generally conservative.

The popular market consists of smaller groups going on inclusive or semi-inclusive

tours. This group includes pensioners and retired people.

The individual market consists of chairmen, senior executives, etc.

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As the lifestyle changes, consumption of services might change. For example, a

newly married couple might prefer romantic holidays, but once they have
children they would prefer family vacations where there are plenty of activities to
entertain kids. Teens and youth might prefer adventure holidays whereas senior
citizens would probably prefer more relaxing vacations.
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8. PEST ANALYSIS

Environmental influences can be analyzed by using the PEST analysis.

Political

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

Similarly, the political turmoil in the state of Kashmir and now in Gujarat has
caused a virtual decimation of the flourishing tourism industry.
However, there has been a change in many of the policies of the Government
with regard to the tourism industry. The hotel industry has been getting many
incentives and many State Governments are encouraging the growth of major
hotels in their states.
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Economic:

The tourism industry not unlike the other industries grows with the increase in
the spending of the people. The more the people spend the more the industry
grows. The spending power of the people has been increasing in the country and
all over the world. Since we are concentrating on the international tourists, the
large increase in the spending power in most developed countries has left a large
amount of idle cash in their hands. This has led to a tourism boom the world over
and India has been no exception. There have been more people coming into the
country with more cash than ever before. This has lead to an increase in the
demand for better hotels. People who previously used to come to the country on
a shoestring budget and hunt around for the cheapest accommodation can now
afford to go in for luxury hotels. This has led to an increase in the number of
hotels in the country. However, an increase in spending does not only limit itself
to accommodation. The increase in the spending is also evident in the increase in
the number of people traveling by air. Even the number domestic tourists
traveling by air has dramatically gone up.

Social:

Tourism was always looked upon as something that led to the destruction of the
social fabric of a place. The more the amount of outside people coming into a
place, the more the perceived risk of that place losing its identity. A good example
is Goa. From the late 60’s to the early 80’s when the Hippy culture was at its
height, Goa was a haven for such hippies. Here they came in thousands and
changed the whole culture of the state. This had a ripple effect on the country.
People became cautious, especially of the international tourists. Whenever a
certain place became famous, the example of Goa was cited to discourage the
inflow of international tourists.

However some places such as kerala and Rajasthan have been able to strike a
balance between their own culture and the demands of the international tourists
and have profited handsomely in the bargain. People are now adopting
themselves to the fact that tourism pays and it can be a major source of income
for them.
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In addition, tourism as a form of recreation has really caught on. People

themselves have started traveling and are willing to travel to a place that is out of
the way and exotic. While traditionally traveling on a holiday meant going to a hill
station or a beach, now people are willing to go in for adventure tourism and also
visit places that might be exotic and cannot really be called hospitable. For
example, now places like Leh and Lakshwadeep are mentioned in the same breath
as Goa or Kashmir.

Technology:

A lthough technology does not seem to be a major influence at first glance, it

plays a major part in the promotion of place. Better communication facilities are
one of the first prerequisites for growth in the inflow of tourists. This has been
made possible with technology. Improved technology in the field of
communication at cheaper costs has resulted in many remote and inaccessible
areas of the country getting connected to the rest of the world. This connectivity
has made these places visible to the world. Better communication means access
to media. And that is very important if any place wants to be on the world tourist
map.
Similarly better transportation facilities have lead to a dramatic increase in the
number of tourists visiting any particular place. The presence of an airport and
the availability of frequent flights are a great convenience to any traveler.
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India: Tourism Revenues and Expenditures 1997-2008 ---------

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9. SWOT ANALYSIS OF TOURISM IN INDIA

Strength:

India’s geographical location, a culmination of deserts, forests, mountains,

and beaches.

Diversity of culture i.e. a blend of various civilization and their traditions.

A wealth of archaeological sites and historical monuments. Manpower

costs in the India hotel industry are one of the lowest in the world. This
provides better margins for the industry.
A very wide variety of hotels is present in the country that can fulfill the
demand of the tourists. There are international players in the market such
as Taj and Oberoi. Thus, the needs of the international tourists and
travelers are seen to while they are on a visit to India.

Weakness:

Lack of adequate infrastructure. The airlines in India, for example, are

inefficient and do not provide basic facilities at airports. The road condition
in India is very bad.
A xenophobic attitude among certain sections of people. No
proper marketing of India’s tourism abroad. Foreigners still think of India as
a land of snake charmers. There are many places where the image of India
is one of poverty, superstition, and diseases. The case of plague in Surat in
1994 led to a decrease of 36% in arrival of foreign tourists in India.

Opportunity:

More proactive role from the government of India in terms of framing

policies. Allowing entry of more multinational companies into the country
giving as a global perspective.
Growth of domestic tourism. The advantage here is that domestic tourism
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and international tourism can be segregated easily owing to the diffierence

in the period of holidays.

Threat:

Economic conditions and political turmoil in other countries affects

tourism.
Political turbulence within India in Kashmir and Gujarat has also
reduced tourist traffic.
Aggressive strategies adopted by other countries like Australia,
Singapore in promoting tourism.
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10. COMPANY PROFILE

10.1 KUONI – India No. 1 Holiday Company

Kuoni Travel Group, India was formed in 1996 through the acquisition of SOTC,
India's foremost outbound package tour brand; with a vision to provide all travel
and travel-related services to travellers to, from and within India. Between 1996
and 2000, Kuoni India registered prolific growth with an eight-fold increase in
profit and consolidated its position as the uncontested leader in India's Outbound
market. The company further strengthened its position with the launch of Kuoni
Holidays - India’s only travel brand focused exclusively on the premium segment -
in January 2006.In 2000, to diversify its business, Kuoni India acquired SITA World
Travel, a forerunner in Destination Management, incentive and business travel
market In 2001, the strategic acquisition of Tour Club, India's principal destination
manager in the Middle East, further strengthened Kuoni India's leadership
position in the Inbound travel segment. In June 2006, Kuoni, India acquired
Distant Frontiers, a specialist focusing on the FIT Iindividual travel market) and
MICE (Meetings, Incentives, Conferences & Exhibitions) segments and
consolidated its position as India’s No.1 Destination Management company.
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Kuoni launched VFS, its visa services arm, in July 2001 as an outsource partner of
diplomatic missions with one customer and three offices. Today, VFS Global is a
worldwide leader in the visa services business, with operations in 18 countries
and 135 offices. Among the top three in India, Kuoni India’s Business Travel
activity has been re-launched as HRG SITA India effective from January 2007.
HRG, with whom a strategic alliance has been formed, is a global giant in the
business travel segment.Today, Kuoni India is active across virtually every travel
segment and operates a number of highly successful brands in India as also
controls strategic markets around the world. The brand portfolio includes SOTC
in the Leisure segment; HRG Sita India in the Business Travel segment; Kuoni
Destination Management in the Incoming Services segment; and VFS in the Visa
services segment. The company employs over 3,200 travel professionals and
its annual turnover has crossed Rs.2200 crore.Kuoni India's vision focuses on
providing all travel and travel-related services to travellers from, within and to
India.The company is deeply committed to the Indian travel industry.

Among other initiatives, it launched the Kuoni Academy of Travel in 2003 in an

endeavour to offer world-class education and training for young aspirants in the
travel and tourism industry. Currently, the Academy has 6 centres across India
and in March 2007 has launched its first centre outside India, in Guangzhou,
China. In 2001, it supported the Mumbai Police to launch the nation’s first police
force dedicated to the safety and well-being of tourists – the Tourism Police and
continues to support this endeavour . It has partnered with the Municipal
Commission of Greater Mumbai and separately with India Tourism in garbage
awareness clean-up initiatives.
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Kuoni India's most important asset is its people and the company is committed
towards building 'A Fellowship of Winners'. An environment of inspiration,
motivation, creativity, training and unparalleled performance ensures that over
3,200 employees at Kuoni India offer the best of service to all their customers,
and achieve exceedingly high levels of customer delight.In the recent past, Kuoni
has added many feathers to its cap. Like, the Government of India’s National
Tourism Award (for Destination Management Services) for 2005-2006. This is the
5th consecutive and overall the 17th year that it has been honoured with this
prestigious award. For the 3rd consecutive year, it received the Galileo Express
Travel World Award for Best Outbound Tour Operator and for the 4th consecutive
year, the Galileo Express Travel World Award for the Best Inbound Tour Operator
(Destination Management) for 2005-2006. Outlook Business magazine (Feb 2007)
recognized Kuoni India as one of India’s top ten unlisted companies

Kuoni was presented the highly prestigious World’s leading tour Operator 2006
award ‘World’s leading tour operator ‘ at WTM, London in November 2005. The
world Travel awards, which are bestowed for exceptional services in the travel
sector, have evolved into one the industry’s most important annual events over
the past few years. The awards are voted on by thousands of travel – sector
specialist from over 80,000 agencies in more that 200 countries. And winning one
is clear confirmation of a company’s excellence within the travel sector.
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11. KUONI BRAND

11.1 KUONI World Famous Tours

KUONI World famous tours are the flagship brand of KUONI, which pioneered the
designing and marketing of escorted tours for cosmopolitan travelers in India.
KUONI World famous tours has escorted over 3,00,000 travelers across the globe
for more than 30 years, to various destinations including Europe, Australia, New
Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100%
subsidiary of Kuoni travel Holding, Switzerland- one of the world’s largest travel
companies KUONI leverages the advantage of the buying power and travel
services to provide customers value for – money packages. KUONI has built a
reputation that it lives up to its promise to take Indians around the world, while
making them feels completely at home, no matter where they are.

11.2 KUONI Do-it-Yourself Holidays

KUONI Do-it Yourself Holidays caters exclusively to the needs and requirements of
the discerning Free Individual Traveler. It offers a wide range of customized
holidays that allows individual travelers the freedom to define their preference of
the destination, length of stay and pace of travel

Following high-quality standards, KUONI Do-it-Yourself Holidays have ensured

accommodation at some of the world’s finest hotels allowing for proximity to city
centre attractions such as shopping malls, pubs, cafes, restaurants and scenic
delights. An individual traveler on KUONI Do-it-Yourself Holidays has the option to
explore all the attractions of a single city. Or focus on all key cities of a particular
country. They can even combine two to eight countries in their holiday,
depending on their tastes.
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11.3 KUONI Holidays of India

Family Holidays

Holiday in India and let your senses be stimulated by the fragrant spices and
colourful saris, marvel at the magnificent temples and enjoy the festivals and fairs
that are an integral part of India life. From the buzzing cities and architectural
wonders of the ‘Golden Triangle” in the North to the scenery and serenity of
Kerala in the South and from tiger sanctuaries and national parks to colonial hill
stations and tea plantation, a holiday to India leaves a lasting impression.

The splendours of Rajasthan including the colonial grandeur of Delhi, the

legendary ‘Pink City’ of Jaipur, the enchantingly beautiful jodhpur and Jaiselmer,
rising sheer from the desert sands.

The Taj Mahal in Agra, the most sublime monument to love ever created and
possibly the World’s most beautiful building.

Goa, India’s smallest state of Portuguese colonial culture, World Heritage listed
architecture and natural wonders, from aromatic spice gardens to breathtaking
India Ocean beaches.

SOTC Holidays of India is a division of Kuoni Travel (India) Pvt. Ltd., India’s Largest
Travel and Tourism Company. A market leader in its field, this division markets
and operates foreign holiday packages under the KUONI World famous tours
brand in the big NRI markets of the middle East, USA and UK. It currently operates
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from 120 sales points across India and boasts of more than 250,000 loyal
customers.

KUONI Holidays of India offers packages that cover every conceivable tour
requirement whether it is an extended vacation with the family, a paragliding
spree with friends or simply a rejuvenating weekend break
KUONI Holidays of India offers you an opportunity to visit and explore all the
splendors of India through various categories of holidays packages
Classic Holidays of India are time tested popular attractions like Kashmir,
Himachal, Rajasthan and Kerala those have proved their ability to completely
satisfy the traveler
Fun-filled Beach Holidays offers not just sun and sand but also cool lagoons, clear
waters, corals, reefs and beach resorts.
Hill Stations & Quick Getaways offer a break through a multitude of retreats at a
short distance from home.
Spiritual Retreats to Rediscover your Soul provide excursions to various spiritual
and hallowed sites

KUONI Holidays of India has categorized all holiday packages into Standard, First
and Deluxe Class categories.

11.4 Kuoni Travel India

Kuoni India will rediscover India with its beautiful destination. Kuoni India will
mesmerize you and you will be relaxed. Kuoni travel will take you to the beautiful
sunshine between the Himalayas or sunset to the middle of the sea. Kuoni travel
gives you the chance to sail in the beautiful scenery whether you are a beginner
or an experienced one. Kuoni travel teaches you to ride the playing waves.

Kuoni India also gives you the opportunity of mountain biking in the mountains of
Leh. Kuoni India travel is a guide for you in the heights.

Kuoni travel gives a boost to Indian tourism as they get to know that India has a
great potential for good vacations. Kuoni India helps foreigners to discover the
diversity of India. Kuoni India gives the chance to the travellers to discover the
unknown places of India.

Kuoni India has the potential to attract tourists whether interested in cultural
exploration, pilgrimages, adventurous tour, or to visit beautiful beaches and the
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scenic mountains. Kuoni travel brings light to Indian states and cities. Kuoni travel
explores the geographical and cultural wealth of India. Kuoni India provides you
the path for all major tourist destinations in India. Kuoni India takes care of all
your needs when you are in India. Kuoni India shows you the wealth in tourism of
India.

Kuoni travel will help you if you want a holiday in India. Kuoni travel will provide
you with best of accommodation and hotels in India. Kuoni travel will provide you
with events information and can help you to get tickets in India. Kuoni travel will
guide you if you are only interested in travelling India. Kuoni India will guide you
with many travelling options within the country. Kuoni India will help you to
explore beautiful India with its mysteries and that can only be done if you visit the
ancient Landscapes. Only one thing will take you across 5,000 years of culture and
tradition that is Kuoni India. Kuoni travel has an excellent range of holidays for
you.

11.5 Kuoni Travels and SOTC Tours

You can travel to Thailand, the city of smiles with SOTC tours. Kuoni travels will
take you to the fascinating culture of Bangkok city, down to the Buddhist temples.
SOTC tours relax you on the beautiful beaches of Ko Samui and Phuket. Kuoni
travels gives you experience for delightful flavours, mouth-watering cuisine and
scents of coconut with a little bit of spice.

Kuoni travels take you to the exciting destination of Dubai, which have the most
luxury hotels of the world. SOTC tours offer the top 30 hotels of Dubai in their
packages, which include the Burj Al Arab, The Sheraton Deira, and Hilton Dubai
Jumeirah Resort; they have been embedded by the famous architecture of Islamic
culture.

SOTC tours are looking forward to give you the best package which could not be
found anywhere else. Travel with Kuoni travels around the world at cheap fares.
SOTC tours give you the opportunity to have challenging and adventures
experience in low budget. Kuoni travels make it easier to spend time and collect
memories with family and friends. Run out for the beach holidays this summer
with Kuoni travels, one holiday that you will always remember.
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If you opt to have holidays with Kuoni travels you will find the blend of nature
with mountain biking, skiing, river rafting, and sailing. SOTC tours will help you to
see the most beautiful holiday resorts of the world. Kuoni travels give the
opportunity to learn something more for a professional relaxed holidays. SOTC
tours make you enjoy your tour at every point of age. You can enjoy with Kuoni
travels at every moment of life.

SOTC tours have many packages which will suit your choices. SOTC tours packages
for action holidays as well as relaxing holidays. SOTC tours packages not only stop
here it have packages for romantics also. If you believe to visit the religious place
you feel for and then come to SOTC tours. Now it is easy to choose holidays of
your kind with SOTC tours. Kuoni travels will take you to your dream place as you
choose your holidays.

11.6 Kuoni Holidays – Over 100 years of experience

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

Curise @ Train

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

Kuoni have a selection of more than 25 superb brochures, showcasing thousands

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

Weddings 2008 & 2009, Tropical Sun 2008 & 2009, Americca & Canada
2008/2009, Florida 2008, China 2008, Morocco 2008, Lakes & Mountains 2008,
Indochina 2008, Africa & Indian Ocean 2008, Italy 2008, Seychelles 2008,
Australia, New Zealand & South Pacific 2008/09, Egypt 2008, Selections 2008,
Dubai 2008 and Snow 2009. Kuoni Sport Abroad holiday brochures include
Monaco Grand Prix 2008 and Rugby 2007/08.

Kuoni Holiday’s ATOL number is 0132. Kuoni Holidays is a member of the

Association of British Travel Agents.

Kuoni Holidays is currently in the process of reviewing its corporate strategy

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

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

First Choice Holiday

KK
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11.9 KUONI Specialist Holidays

Charity challenges

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

Music holidays

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

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

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

Thomas Cook in one of the world’s leading international travel and financial
services groups and serves over 20 million customers a year.
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They provide services to customers at 4,500 locations in more than 100

countries and employee over 20,000 people.

The Thomas Cook Holiday comes with a 150-year-old guarantee of eternally sunlit
memories. They couldn’t expect any less from the people who invented travel for
leisure. They offer the world’s most enjoyable holidays, to exotic destinations in
India and abroad where everything is taken care of from beginning to end.

Established in 1984, Kesari Tours is a premium travel company, which offers

world-class holidays in India and around the world. Kesari have perfected their
tour itineraries to meet the special needs of the Indian tourist abroad. The motto
of organization is ‘No compromise on quality’ At Kesari Tours. They have made a
motto that if they make a promise to their customers, they honor it. They believe
in honest, transparent deals No hidden costs and no compromise on sightseeing.
They strive for 100% satisfaction of tourists. The company enjoys an immense
good will. That’s what they earned out of their beliefs.

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

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

India society is increasingly being driven by consumerism. Foreign holidays are

becoming more of an aspiration. As a result, the society-conscious Indian is
making an international holiday an essential part of his/her annual plan.

As the average Indian’s spending power has gone up, so too has his interest in
overseas travel and the willingness to spend money the rise in disposable incomes
has led to move families opting for annual foreign holidays with a large number
of international airlines entering the Indian skies, there has been a rise in
capacity. Air fares too have become more competitive, thereby benefiting the
customer.

Over the last few years, there has been stability in tour prices and increase in
value-added offers such as ‘Holiday now, Pay later’ Take your Partner Free’
Holiday Vouchers, etc. So overall, a booming economy, affordable air fares, better
connectivity, increased scat capacities, and a prospering middleclass have
together contributed to the large number of holiday-seekers.
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13. OUTBOUND TOURISM

Outbound Tourism

Outbound Tourism is growing at the rate of 25% touching 6.2 million in 2006-07
booking increased to 30% compared to the corresponding period in the previous
year Domestic tourism has also witnessed an annual growth of 20% from 2006 to
2007.

Popular Segments

Two segments in domestic tourism which have been showing exceptional upward
turn are Medical tourism and adventure tourism. India is rapidly growing into a
major health destination, targeting one million additional medical tourists by
2010. These arrivals are expected to increase foreign exchange up to Rs.5000-
10000 crore.

India has also become Know for adventure tourism with the excellent facilities
that it offers for water sports, Trekking, rock climbing, mountaineering, Aero
sports, Safaris, Motor Sports etc.
Two million tourists are participating in adventure tourism annually. The market is
growing at 35% but given the right impetus, it can attract another half a million
foreign adventure tourists and the domestic adventure tourism market can see a
10-fold growth in the next five years.

Document Required for Outbound tour:

Passport: A passport is a travel document issued by a national government that

usually identifies the bearer as a national of the issuing state and requests that
the bearer be permitted to enter and pass through other countries.

Passport are connected with the right of legal protection abroad and the right to
enter one’s country of nationality. Passports usually contain the holder’s
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photograph, signature, date of birth, nationality, and sometimes other means of

individual identification. Many countries are in the process of developing
biometric properties for their passports in order to further confirm that the
person presenting the passport is the legitimate holder.

14. TYPES OF PASSPORT

1) – Ordinary Passports are the normal passports issued to most citizens and
have no special connotations.

2) – Diplomatic Passports are issued to diplomats and diplomatic

representatives of a home country, and other state employees according to
the rules of a particular country. Having a Diplomatic passport does not
necessarily accord the bearer diplomatic immunity. Same countries Visa
requirements may have different requirements for Diplomatic and non-
Diplomatic passport.

3) – Official or Service Passport are issued to employees ( or “Technical and

Administrative Staff Members”) of a government traveling for work related
reasons who either do not qualify as Diplomats or are not entitled to
Diplomatic Status under the Vienna Convention.

4) – Special Passports are issued to high-ranking state officers and their

dependents as a means of officially guaranteeing their sustenance to have
them exempted from requirements.

5) – A collective Passport may be issued, for example, for a school trip. All
children on the trip would be covered by the group passport for the
duration of the trip.
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6) – Internal Passports have been issued by some countries, as a means of

controlling the movement of the population. Examples include the iqama in
Saudi Arabia, the Soviet internal passport system, and the hukou residency
registration system used in the People ’s Republic of China.

7) – Emergency or Temporary Passports are issued to persons whose original

passport has been lost or stolen and who need to urgently travel.

8) – Business Passports are passports with extra pages issued to frequent

travelers.

9) –Family Passports are passports that are not issued to individuals but to
family units.
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15. TYPES OF VISA

Visa:

Is an authorized given by a state to a foreigner to enter its territory for a

designated period and foe a special purpose. It is not equivalent to a passport and
it differs in as much as it is issued by the country to which or through which the
visitor will travel out not by the state of which he is a national.

Types of Visa:

1) - Tourist Visa

Is given for 6 month normally; rest specifically depends on the country of

residence. The applicant is required to produce/ submit documents in proof
of his financial standing.

2) – Business
Visa is valid for one or more years up to 5 years with multiple entries. A
letter from a sponsoring organization indicating nature of business,
probable duration of stay, places and organization to be visited,
incorporating therein a guarantee to meet maintenance expenses, etc.
should accompany the application.

3) – Student Visa
Are issued for the duration of the academic course of study or for a period
of live years whichever is less, on the basis of firm letters of admission from
universities/ recognized colleges or educational institution in India.
Change of purpose and institutions are not permissible.
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4) – Transit Visa
Are issued for a maximum period of 15 days with single / double entry
facilities to passengers only.

5) – Visa To Missionaries
Are valid for single entry and duration as permitted by government of India.
A letter in triplicate from sponsoring organization indicating intended
destination in India, probable length of stay and nature of duties to be
discharged should be submitted along with guarantee for applicant’s
maintenance while in India.

6) – Journalist Visa
Are issued to professional journalists and photographers for visiting India.
The applicant are required to contact on arrival in New Delhi, the external
publicity division of the ministry of external affairs and in other places, the
office of the government of India’s Press Information bureaus.

7) – Employment Visa
Are issued to skilled and qualified professionals or person who are engaged
or appointed by the companies, organizations, economic undertakings a
technicians technical export, senior executives, etc. Applicants are required
to submit proof of contract / employment / engagement of foreigner
nationals by the company or organization. Initially granted for a period of
one year, it can be extended in India up to the period of contract.

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

must reassemble and depart as the original group.

16. CURRENCY REGULATION

There are no restrictions on the amount of foreign currency or travelers’ cheque a

tourist may bring into India provided he makes a declaration in the Currency
Declaration form given to him on arrival. This will enable him not only to
exchange the currency bought in, but also to take the unspent currency out of
India on departure. Cash, bank notes and travelers’ cheque up to US$ 1,000 or
equivalent, need not be declared at the time of entry.

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

Foreign Travel Tax

Passengers embarking on journeys to any place outside India from a customs

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

Exemption from registration

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

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

Tourist Groups

A tourists group arriving by air, ship or by a chartered or scheduled flight may be

granted a collective landing permit for a period of up to 30 days by the
immigration authorities on landing, provided the group is sponsored by a
recognized travel agency and a pre- drawn itinerary is presented along with
details of passport etc. of the members, and travel agency gives an undertaking to
conduct the group together.
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18. FORMALITIES

Arrival Formalities

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

Departure from India

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

Exit Formalities

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

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

INVESTMENT CONCLUSION FOR TRAVEL COMPANIES

We only recommend stocks of travel operators to risk-aware investors who wish

to take a punt on easing political
Tension in the Middle East. A political resolution to the Iraq conflict or a brief,
effective war with Iraq could send
Prices of travel stocks much higher in the interim compared with other sectors.

CONCLUSION : HOTEL INDUSTRY

Prices of hotel stocks are expected to underperform other European sectors in

2003. Since 2002 conditions in the hotel industry have deteriorated. We expect
demand for business travel (fewer conferences and fewer overnight stays) will
continue to wane in the face of the poor economy. We assume that the
downward pressure on prices in the business travel segment will increase as
companies rein in corporate expense accounts. And since the hotel industry is a
very capital-intensive business with relatively high fixed costs and little scope to
cut expenses, increased price pressure inevitably leads to smaller margins. Hotel
groups are likely to see their earnings fall further this year, and the top end of the
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market (four and five star establishments) will be worst hit. In a difficult market
environment, a high debt/equity ratio (= high interest burden) can be a serious
competitive drawback (Hilton and Accor).

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

CONCLUSION: TUI AND KUONI HAVE GREAT UPSIDE PRICE POTENTIAL

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

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

20. RESEARCH

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

To find out the awareness level about KUONI and create awareness about KUONI
amongst the people of Sushant LOk, Gurgaon.
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To find out the potential for tour and travel industry amongst the people of
Udyog Vihar, Gurgaon.