Trailblazers

The way of the kings

Cox & Kings, the world's oldest travel company, occupies a position of regality in India's travel market. Bhisham Mansukhani finds out how it continues to retain its position in India in the highly competitive field of travel

The remnants of a colonial hangover have its place of pride in a few selected literary novels spanning the British Raj. But what is a travel company, which traces its Indian origins as far back as 1758 when it was appointed as general agents to the regiment of Foot Guards in India under the command of Lord Ligonier, still doing in India? A lot of things incidentally.

The British left India after she gained her independence. But Cox & Kings stayed on and today it has offices in Mumbai, New Delhi, Chennai, Bangalore, Kolkata, Ahmedabad, Cochin, Hyderabad, Pune, Goa and Jaipur, and one satellite office in Andheri in Mumbai and Gurgaon in Delhi. Employing over 800 trained professionals, the company specialises in destination management, leisure travel, business travel, conference/MICE and currency exchange.

Arup Sen, executive director of Cox & Kings India, explains the company's strategy, "Our strength lies in our ability to understand the needs of the customer. Since the Indian travel market is in a nascent stage and will take some time to mature, the growth for us is happening in several areas be it group tours, FITs, incentives, trade fairs and the luxury segment. We have the distinction of launching a luxury brand called Luxury Escapes 18 months ago."

Out of the box

The strategy followed by the company strengthens the value-for-money proposition with each of its product offerings. This is imperative in a market where hidden costs in packages and tours are prevalent and not reflected in the price upfront. "We also believe in giving value to our customers and are therefore perceived as providing premium products at affordable prices. Secondly, we ensure that our customers get value for their holiday. This is our basic approach to holidays," Sen adds.

With an increase in outbound travellers and growth in the domestic travel segment, competition is inevitable with rival brands aggressively promoting holiday packages across the spectrum. Small and agile tour operators are mushrooming across the country and are concentrating on niche segments. This requires constant innovation and consistency in the products that a travel company offers to stay ahead.

Asserting that Cox & Kings is always a step ahead of competition, Sen claims, "We always think out of the box. Every new concept that we have introduced in the market has been aped by competition. This can be noticed even in the ongoing summer campaign. Secondly, our pedigree gives us immense impetus; we are the oldest travel company in the world and this gives our clients the confidence to book with us and take us seriously."

The Cox & King strategy includes segmentation of the product offering so that it can concentrate on each sub-brand. For instance, the leisure segment is further subdivided into domestic holidays with the 'Bharat Dekho' brand, which has according to Sen, already captured 50 per cent of the organised domestic package tour market.

Meanwhile, the customer profile has undergone tremendous change in terms of the demographics over the years. Their attitude towards travel, includes changes in food preferences and the willingness to experiment with cuisine with the entry of international fast food chains and exposure to world trends. Sen gives more insight, "Also, with the easing of restrictions on foreign exchange, travel abroad has become easier. With these restrictions out of the way, the Indian customer can have a more relaxed holiday."

He feels that the first time traveller and family travellers are most comfortable in a group tour as the tour operator takes care of all the requirements and everything is done under one roof. "As a tour operator, we have the advantage of consolidation and therefore the customer gets the benefit of affordable prices. The concept has not changed dramatically - there are large number of people who prefer going on a group holiday package even more than once," he adds.

The challenge of  globalisation

Globalisation has come with its own set of challenges. Worldwide security has become a critical issue after 9/11 and the global traveller is treading with caution with possibility of epidemics in certain parts of the world. "The main challenge is something that's out of our control - it may be a Tsunami, political unrest or a terror strike. They do have an immediate impact on travel. I hope that these incidents do not occur. However, let me say that unlike in the past, the Indian travel market bounces back faster," says the optimistic executive director. The other challenges that the industry faces, according to him, are its growth outpacing that of manpower and IT.

The company's approach to the future will be a continuation of its philosophy of consistency - to give more value to the customer. "We have a very practical and down-to-earth approach when selling a holiday. All our sales staff are advised not to oversell and not compromise on the quality. I think that this is the right approach that one needs to take if you are a serious player in the market," he explains.

Ultimately, it is the case of survival of the fittest. Sen promptly adds, "We are very aggressive in the market and our aim is to increase our turnover and profit." Till the King roars, travellers can rest assured that they are in safe hands.