Thomas Cook (India) Ltd Management Discussions

India aims to reach a USD 7 trillion economy by FY 2029-30, following its trajectory towards a USD 5 trillion economy within the next three years and solidifying its position as the worlds third-largest economy. Additionally, the government targets transforming the country into a developed nation by FY 2046-47. With strong domestic demand, growing private consumption and investments, and continued structural reforms, India is poised to maintain its upward growth trajectory in the upcoming years.

Sun and beach travellers: These travellers prefer infrequent trips and budget-conscious spending, favouring accessible sun and beach destinations. They prioritise relaxation and family visits, placing greater importance on direct flights and showing less interest in immersive, authentic experiences.

Culture and authenticity seekers: These are active and high-budget travellers who typically spend more than USD 150 per day on holiday, love to sightsee, are willing to spend on experiences, and dont want to settle for typical bucket-list destinations.

Strategic spenders: These travellers are open to selectively splurging on authentic, carefully curated experiences. Trend-conscious jet-setters: Travelers in this high-budget group (they spend more than USD 150 per day when traveling) turn first to friends and family (79%) and then to social media (62%) when scouting destinations. 76% say the popularity of a destination is an important factor, compared with 63% overall. And 75% say they focus on hotel brands when selecting accommodations.

Cost-conscious travellers: This travel segment is made up of predominantly older travellers who travel rarely and frequently return to the same destinations and activities. Premium travellers: This segment prioritises luxury during travel, with only 20% considering cost significant. They are discerning about accommodations, placing high value on brand, prestige, exclusivity, design, decor, amenities, and sustainability.

Adventure seekers: This younger segment enjoys active holidays that present opportunities to encounter like-minded travellers.

The global hospitality market is estimated to increase from USD 4,673.63 bn in FY 2022-23 to USD 4,993.71 bn in FY 2023-2024, registering a CAGR of 6.8%. This growth is attributed to factors such as the expansion of travel and tourism, cultural shifts, global events, including pandemics, and increased investment in infrastructure.

The hospitality market is forecasted to reach USD 6,189.59 bn by FY 2027-28, clocking in a CAGR of 5.5%. This growth will be fuelled by key drivers like sustainability initiatives, the rise of wellness tourism, the flexibility of booking options, collaborative community efforts, and increased health and safety standards.

Additionally, the hospitality industry is undergoing a dynamic transformation, marked by cutting-edge trends like AI-powered personalisation, smooth contactless technology, groundbreaking technological advancements, customised guest experiences, and an enhanced digital marketing landscape with a focus on harnessing the power of social media influence. In FY 2022-23, Asia-Pacific boldly asserted its dominance as the largest region in the hospitality market, with North America ranking second.

The evolution of transportation infrastructure, with accessible air travel and enhanced road networks, has paved the way for global exploration like never before. The rise in disposable income, has empowered a broader swathe of individuals to indulge in travel escapades. This newfound adventurous spirit fuels the quest for undiscovered gems and offbeat locales, propelling tourism into uncharted territories. As the desire to travel deepens, theres an insatiable hunger for authentic and immersive encounters. This beckons travellers to explore the rich tapestry of diverse cultures, landscapes, and activities that our world has to offer.

The booming global tourism industry, coupled with rising for consumer spending, presents a significant the imaging industry. This trend sets the stage to expand its footprint and capitalise on the flourishing market for entertainment imaging services, perfectly attuned to the evolving tastes of todays modern consumers.

In the era of digital dominance, the allure of digital souvenirs and memories holds sway over modern hearts. Digital Imaging leverages digital technology, offering instant photo printing, online sharing, and customisation options, that appeal to modern consumers. By offering professional photography services at tourist destinations and events, the industry offers to enhance the overall customer experience. Visitors can relish every moment, secure in the knowledge that professional shutterbugs stand ready to immortalise their cherished memories.

The global tourism body forecasts that by FY 2032-33, the tourism sector will contribute USD 15.5 trillion to GDP, comprising 11.6% of the global economy. This growth is substantial, considering that in FY 2018-19, the sector contributed USD 10 trillion, accounting for 10.4% of global GDP. Employment in the sector is projected to rise to USD 430 mn by FY 2032-33, up from USD 334 mn in FY 2018-19. This growth underscores the industrys crucial role, translating to approximately one in every nine jobs worldwide being tied to travel and tourism.

In FY 2022-23, the global foreign exchange market reached a size of USD 805 bn. Looking ahead, it is projected to reach USD 1,466 bn by FY 2031-32, with a CAGR of 6.92% from FY 2023-24 to FY 2031-32. The market is being driven by factors such as the increasing integration of modern technology in trading platforms, the globalisation of businesses leading to a greater demand for currency exchange services, and the influence of economic indicators like inflation, interest rates, and GDP growth.

In South Asia, remittance flows to India saw significant growth, contributing to the overall positive trend. South Asia experienced a 7.2% increase in remittances in FY 2022-23. The Indian economy exceeded expectations, fuelled by a tight labour market in the United States and robust employment growth in Europe, reaching USD 125 bn in remittances for the year.

The Indian tourism sector is one of the fastest-growing economic sectors in the country. Indias tour and travel operators are expected to grow revenue by 15-17% this fiscal year, driven by rising domestic and international travel, according to CRISIL. This growth is supported by improving infrastructure, rising incomes, shifting travel patterns, and the governments push for domestic tourism.

This follows a strong fiscal year with a 40% revenue increase to around Rs 14,500 crore, exceeding pre-pandemic levels by about 20%. Growth in overseas travel is fueled by higher incomes, visa-free access from 37 countries, easier visa processes, and new travel packages. Despite a recent tax hike on international travel packages, Indian airlines focus on new destinations in Southeast Asia and Central Asia is contributing to record-high outbound travel this year. In conjunction with Indias G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism declared FY 2023-24 as the ‘Visit India Year to boost inbound travel. The government has adopted a mission-oriented strategy to propel tourism during the Amrit Kaal, accompanied by a strategic roadmap for the next 25 years. The ambition is to transform India into a premier global travel destination by 2047, creating an unmatched allure for visitors from around the world.

Indias inbound tourism witnessed a remarkable 64% surge in FY 2023-24 compared to the previous year, attracting 9,236,108 visitors. Despite this growth, the numbers are still 15.5% below pre-pandemic levels. Foreign exchange earnings from tourism increased by over 106% in FY 2023-24, a recovery driven by the aftermath of the Covid-19 pandemic and the lifting of travel restrictions. Indias air passenger traffic is anticipated to increase by 8-10% in FY 2024-25. From 105 mn domestic passengers in FY 2021-22, the figure surged to 270 mn in FY 2023-24. International air traffic, having recovered to pre-pandemic levels in FY 2023-24, is projected to grow by 10-14% in FY 2024-25.

Spiritual Tourism is seeing a boom in India and makes up 60% of Indias domestic tourism. The industry is estimated to grow at a compounded annual rate of 16.2% and is likely to reach $4.6bn in size by 2033. The governments proactive tourism initiatives and enhanced connectivity and infrastructure development between pilgrimage sites are fuelling the markets growth trajectory. Riding the wave of a spiritual revival, the economic dynamics of the country are gaining momentum, driven by targeted government schemes such as *PRASHAD, SWADESH DARSHAN, which aims to enhance tourism infrastructure at key pilgrimage and heritagesites,offeringpilgrimsandculturalaficionadosa richer experience. Complemented by improved connectivity and digital advances in religious commerce, these efforts are building a comprehensive growth story for the nations spiritual and economic landscape.

India recorded its highest ever cruise tourism footfall of 470,000 in FY 2023-24. Domestic tourists accounted for nearly 80% of this, as international cruise tourism in India has yet to revive to pre-Covid levels. In 2019-20, the international and domestic tourists were roughly equal out of the 420,000 cruise passengers.

Indias Meetings, Incentives, Conferences, and Exhibitions

The Indian hotel industry is poised to witness a 7-9% revenue growth in the fiscal year 2025, slightly down from the expected 14-16% growth in FY2024, according to ICRA (Investment Information and Credit Rating Agency). The sustained demand for domestic leisure travel, coupled with the resurgence of meetings, incentives, conferences, and exhibitions (MICE), including weddings and business travel post the election period, is projected to be the driving force behind this positive outlook ICRA estimates premium hotel occupancy across India to reach decadal highs of approximately 70-72% in both FY2024 and FY2025, showcasing a steady recovery from 68-70% in FY2023. Average room rates (ARRs) for premium hotels are expected to rise to Rs.7,200-7,400 in FY2024 and further to Rs.7,800-8,000 in FY2025. Despite this increase, the revenue

(MICE) industry, continues to exhibit promising potential for expansion. Fuelled by state-of-the-art infrastructure and the vibrant threads of our cultural heritage, it stands ready for an extraordinary journey ahead. The swift economic development in India has spurred corporate expenditure on MICE endeavours. Furthermore, the global expansion of Indian enterprises has escalated the demand for international meetings, resulting in a substantial uptick in outbound MICE events. The Indian business travel market is expected to register 7.6% CAGR from FY 2024-2032, driven by the pillars of stable economic growth and Indias potential as a business hub. New airlines are contributing to increased capacities, while corporate expansions in the region are creating opportunities for office setups. Collaborations between corporates and business travel providers for tailored spaces and team-building activities are also boosting market growth. Moreover, increased business activities in sectors like healthcare, pharmaceuticals, and manufacturing, major end-users of business travel, are further fuelling inter-regional operations.

per available room (RevPAR) is forecasted to remain at an 8-12% discount to the peak observed in FY2008 in FY2024, converging towards the FY 2008 peak in FY2025.

Domestic tourism continues to be the primary demand driver, maintaining its significance in FY2024 and expected to persist in the near term. However, foreign tourist arrivals (FTA) are yet to recover to pre-Covid levels, contingent upon the global macroeconomic environment.

PRASHAD: Under the ‘Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme, the

Ministry offers financial assistance to State Governments and Union Territory Administrations for infrastructure development at tourist destinations. Currently, the Ministry has approved 46 projects amounting to USD 215.85 mn. Additionally, 26 new sites have been earmarked for development under the PRASHAD Scheme.

Swadesh Darshan 2.0: The Ministry of Tourism introduced the Swadesh Darshan Scheme to develop theme-based tourist circuits. With 76 projects approved, the Ministry has revamped the Swadesh Darshan Scheme as Swadesh Darshan 2.0 (SD2.0), striving to foster sustainable and responsible tourism destinations, employing a destination and a tourism-centric strategy. Following the schemes guidelines, each State/UT devises a State Perspective Plan, and destinations are chosen for development by the Ministry of Tourism accordingly. A total of 57 destinations across the country have been identified for development under the dynamic umbrella of SD2.0.

Dekho Apna Desh: Presented in FY 2022-23 Budget, the ‘Dekho Apna Desh scheme seeks to inspire individuals to explore Indias rich heritage and vibrant culture. Under this initiative, 50 destinations across the country will be chosen for comprehensive tourism development. Primarily geared towards encouraging domestic travel, especially among the middle-class, it advocates exploring the diverse terrains of India over foreign shores. Additionally, the scheme is expected to create employment opportunities in the tourism sector and contribute to the nations economic growth.

NIDHI: NIDHI is an initiative aligned with the vision of Aatmanirbhar Bharat, leveraging technology to empower businesses, particularly in the hospitality & tourism industry. From accommodation units to travel focus on Tier 2 and Tier 3agents, tour operators, and independent restaurants, stakeholders can register their entities on this platform, unlocking a plethora of services and benefits at their fingertips through a unique NIDHI ID

(NID). Moreover, NIDHI will serve as a platform for hospitality organisations to exchange ideas, share best practices, and engage with the Government to facilitate ease of doing business.

RCS-UDAN: The inaugural RCS-UDAN flight, connecting Shimla to Delhi, took off on April 27, 2017. Since then, RCS-UDAN has facilitated travel for over 13 mn passengers. As a pivotal component of the National Civil Aviation Policy

- NCAP 2016, RCS endeavours to propel domestic travel, setting its sights on the ambitious target of achieving 500 mn domestic ticket sales by FY 2026-27.

DPPH: State Governments/UTs receive financial support for organising fairs, festivals, and tourism events under the Domestic Promotion & Publicity, including Hospitality Scheme.

Programme: The Ministry of Tourism administers the Pan-

India Incredible India Tourist Facilitator (IITF) Certification

Programme, a digital initiative designed to establish an online learning platform. Its goal is to nurture a proficient and professional pool of tourist facilitators/guides across the nation, thereby creating employment prospects at the grassroots level.

According to the Union Budget, the government has maintained consistent allocations for the tourism ministry, earmarking approximately USD 328.31 mn.

Out of the allocated USD 328.31 mn, USD 275.71 mn is designated for tourism infrastructure development. USD

231.85 mn is allocated specifically to develop tourist circuits based on thematic themes under the Swadesh Darshan scheme. An additional USD 31.82 mn has been earmarked for the Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) Scheme.

Initiatives to empower iconic destinations and local entrepreneurs with interest-free loans and quality ratings will elevate Indias tourism scene. Additionally, projects focussing on enhancing connectivity through the development of airports, railways, metros, ports, and tourism infrastructure will spur demand and foster job opportunities.

By 2028, the tourism sector is expected to generate a revenue of USD 59 bn, while creating around 140 mn temporary and permanent jobs by 2030. The tourism GDP is expected to contribute USD 3 trillion to the economy by 2047. By 2030, the Indian aviation sector is projected to have over 200 cities, airports, with a significant facilitating the movement of more than 400 mn passengers. The Government of India aims to achieve USD 56 bn in foreign exchange earnings and create approximately 140 mn jobs in the tourism sector by 2030 through inclusive growth, with a specific focus on cruise tourism, ecotourism, and adventure tourism.

Thomas Cook (India) Limited (referred to as ‘Thomas Cook India, ‘TCI, or ‘the Company, ‘We, or ‘Our Company), a pioneer in the travel and financial services sectors, boasts a rich legacy of serving customers for over 143 years. With an extensive array of customised services, the Company caters to the diverse travel needs of clients worldwide, spanning four primary categories: Travel and Related Services, Financial Services, Leisure Hospitality, and Digital Imaging Services.

With a strong focus on the Asia-Pacific region, Thomas

Cook India has strategically expanded its global footprint. The illustrious Thomas Cook brand extends itsinfluence in shapingreach across multiple entities, operating in 28 countries across five continents. Anchored by a vibrant team comprising 9,097 professionals from various corners of the globe, the Company achieved a remarkable consolidated revenue from operations of Rs. 74.4 bn in FY 2023-24. For further details, please refer to the Integrated Report on 12 page.

At the heart of the Groups ethos lies a profound commitment to a ‘customer-first philosophy, seamlessly blending innovation with a robust omnichannel presence to craft outstanding solutions that foster unforgettable travel experiences. Thomas Cook India offers an extensive array of travel products and services catering to both B2B and B2C clientele, encompassing domestic and international leisure travel, business travel, MICE, and destination management services. Adapting swiftly to evolving client preferences, the Company harnesses its scale and extensive reach to curate bespoke travel experiences. With an indomitable dedication to enhancing customer satisfaction, the Company drives forward with digital initiatives and delivers cost-effective solutions.

The leisure travel market pulsates with dynamism and constant evolution. Technology stands as its backbone, driving innovation with online booking platforms, travel apps, and a myriad of digital tools that empower travellers in trip planning and reservations. There is a notable surge in demand for personalised travel experiences, as travellers seek unique and tailor-made options. Consequently, companies within the leisure travel sector are amplifying their focus on personalised offerings that meet these evolving desires head-on. Moreover, there is a growing awareness of environmental issues, prompting a shift towards sustainable travel practices. This eco-consciousness is increasingly shaping consumer decisions within the leisure travel market. The Thomas Cook Group orchestrates its Leisure Travel (LT) business through formidable entities like Thomas Cook India, SOTC Travel Limited, TC Tours Limited, and Travel Circle International Limited in Hong Kong. Riding a wave of momentum, Thomas Cook India has leaped forward, boasting an impressive year-on-year growth rate of 107%. Whats more, theres been a discernible shift in the demographics of its customer base, with the average age plummeting by 10 years. In response to this dynamic trend, the Company has taken proactive strides, launching an array of new products and irresistible deals tailored to captivate this youthful demographic. Spearheading the charge are engaging online campaigns specifically crafted to resonate with Gen Z and young India.

With a legacy spanning over seven decades in India, SOTC Travel Limited (SOTC), a subsidiary of Thomas Cook India, has leisure wielded significant travel sector, both domestically and internationally. Through a persistent focus on delivering exceptional customer service, introducing innovative offerings, embracing cutting-edge technological advancements, and broadening its destination portfolio, SOTC has laid a sturdy foundation over the years. Today, it stands tall as a prominent player across various segments, including domestic and international travel, incentive travel, escorted group tours, and tailor-made vacations. SOTCs unflinching commitment to customer engagement, innovation, and operational excellence has not only tapped into existing market potential but also carved out new avenues for growth. By harnessing the power of technology and developing a robust online presence, the company guarantees a smooth omnichannel experience for its clients, elevating accessibility and convenience to unparalleled heights.

Taking the lead, the company unveiled its eagerly awaited Europe Summer Holidays 2024, rolling out alluring early bird offers to entice bookings from as early as October 2023. SOTC has also introduced an extensive collection of vegetarian and Jain festive tours, catering to diverse dietary preferences. Moreover, SOTC set out on a groundbreaking journey, launching land plus cruise programmes in collaboration with Costa Cruises from Mumbai, Kochi, Goa, and Agatti-Lakshadweep. This initiative aims to enrich the travel experience for adventurers seeking both land and sea escapades.

As a wholly owned subsidiary of Thomas Cook (India) Limited, TC Tours stands as a powerhouse, offering an all-encompassing suite of services ranging from air ticketing to hotel bookings, domestic tours, and associated services. Seamlessly integrated into the Groups diverse portfolio, these offerings cater to diverse needs across leisure, corporate travel, and MICE (Meetings, Incentives, Conferences, and Exhibitions) categories.

As the premier tour operator in Hong Kong, Travel Circle International Limited specialises in catering to the upscale niche market of all-inclusive long-distance group leisure travel. The company remains dedicated to ongoing product development and has intensified its research efforts to comprehend the changing customer behaviours and preferences of customers. Currently, it offers personalised services and booking flexibility to smaller groups, aligning with the shifting paradigms of travel.

While the entity saw an increase in revenue y-o-y, the recovery post pandemic is still underway as Hong Kong was one of the last jurisdictions in the world to reopen after the pandemic. The company, with a view to providing unique travel experiences to its valuable customers, focussed its efforts on development and designing new tour programs. The Product portfolio has been broadened and product offering optimized with inclusions of highly differentiated elements and memorable experiences in some of the popular destinations. It continued to leverage its online presence, including social media platforms and other promotional channels, to deepen connections with both new and existing customer base.

Corporate Travel

The Corporate Travel division of Thomas Cook India and SOTC is dedicated to providing business travellers with smooth and hassle-free services. As travel restrictions gradually ease and health concerns diminish, corporate travel is experiencing a steady resurgence. Thomas Cook India is witnessing sustained growth as business activities across various industries gain momentum. Our corporate travel division is dedicated to achieving seamless digital transactions from start to finish. Through robust integration across various platforms, including CRM systems, multiple online booking tools, e-invoicing platforms, payment an systems, and ERP back-office unparalleled customer experience.

For our tech-savvy business travelers, we have implemented leading self-service booking tools like Zillious, EVA, Happay, and Concur. We offer flexibility to corporations in selecting tools that best fit their needs. These tools have been widely adopted, with over 50% usage among our corporate clients, resulting in significant reductions in manual tasks, increased efficiency, and enhanced scalability.

Our corporate travel income form operations has seen remarkable growth, with a Y-o-Y increase of 12%. This growth can be attributed to the acquisition of new accounts across various sectors, including IT/ITES, manufacturing, automobiles, banking and finance, consulting, and entertainment, alongside the retention of key global accounts. In FY 2023-24, over 49% of clients have embraced the corporate self-booking tool, showcasing a significant adoption rate.

At the forefront of the Companys focus is the enhancement of productivity through technological advancements and digital tools. This empowers customers to handpick the technology that perfectly aligns with their organisations unique requirements. Corporate travel revenue (reported on net basis) has risen by 12% Y-o-Y, driven by the acquisition of large and SME accounts across diverse industries, including Banking and Insurance, IT Services, Infrastructure, Media and Entertainment, Telecommunications, Automobile, Consumer Products, and Manufacturing.

Thomas Cook India and SOTCs MICE portfolio provides seamless travel solutions for large groups spanning diverse industries. The growth of the MICE sector is intricately tied to the broader economic recovery witnessed across industries. uptick Inthe latter part of FY 2023-24 there was a significant in business activity, accompanied by a distinct preference for in-person events. Achievements during the year includes:

• Managed sizeable corporate movements with over 500 groups between 100-3,000 delegates per group.

• Handled large inbound groups and delegates from across 116 countries.

• Managed over 25 G20 preparatory meetings and coordinated the participation of more than 22,000 athletes for the National Games 2023 held in Goa.

Additionally, executed significant government initiatives such as hosting the International Solar Alliance meeting with 555 delegates from 116 countries.

• Facilitated multiple corporate groups for major sporting events such as the ‘Khelo India and ‘National Games.

The focus remains consistently on innovating offerings to meet the rising demand for various activities, including sales meetings, brand promotions and activations, product launches, and employee training programmes. Moreover, the Company collaborates closely with major corporate entities to orchestrate large-scale domestic and international events. As the appetite for outbound events surges, Indian multinationals increasingly favour international locations for hosting business meetings and events, setting the stage for unmatched growth and global prominence.

The MICE turnover has increased by 46% Y-o-Y.

For over six decades, Thomas Cook India through its brands SITA, TCI and Distant Frontiers has been at the helm of the Companys India inbound travel business, offering customised travel experiences and unmatched services. With an extensive footprint across India, Nepal, Bhutan, and Sri Lanka, and a team of seasoned professionals stationed, the business has forged strong partnerships with over 2,000 global partners. This extensive network enables it to serve customers from over 100 nationalities.

As a dependable ally to international tour operators in the leisure and charter industries, Travel Corporation (India) Limited (TCI) stands as a beacon of unparalleled service and reliability.

• The strategic alliance between the Company and REWE Group - Germany, through TCI-Go Vacation India Private Limited, represents a destination management enterprise specialising in tailored travel and related services for REWE Group entities across the European subcontinent. Strengthened by a team of seasoned professionals committed to excellence, this partnership reinforces the Companys strong foothold in the industry, setting new benchmarks for service excellence.

• Tropiculture Private Limited, our partnership with Authenticities (Private) Limited, is a destination management company that customises travel and related services and provide a high level of service for our clients visiting Sri Lanka.

The DMS Group operates across 21 countries, with a reach extending from Southeast Asia and . Additionally,the Middle East automation Australia, North America, and South and East Africa.

In the Asia-Pacific region, Asian Trails experienced an encouraging uptick in sales throughout the year, largely attributed to key destinations such as Thailand, Indonesia, Vietnam, Malaysia, Singapore, Laos and Cambodia.

This positive trend reflects the growing confidence and interest of travellers in exploring the diverse offerings of these destinations once again. Asian Trails focussed on automation and digitalisation, including the launch of a B2B online booking platform with API connectivity to major online players. Future growth is expected from Europe, South America, the USA, India, and China, with an emphasis on eco-friendly tours and incentive travel events.

Private Safaris East Africa enjoyed high sales this year, bolstered by strong volumes from traditional markets like the US, the UK, Germany and France. There were decent volumes from emerging markets like Eastern Europe, to mention Romania and also good performance from India. Private Safaris East Africa has upgraded to Tour plan NX which will help in improving operational efficiencies by connecting first with agents and later on with suppliers. The entity has engaged in expansion and upgradation of its vehicle fleet, which will aid in delivering a better customer service.

Desert Adventures UAE expanded its distribution channels to reach a broader audience and increase market penetration. It forged partnerships with new travel agencies, tour operators and online travel platforms, increased strategic distribution initiatives, to drive higher revenue and market share. The company entered into a Joint Venture Agreement (JVA) with Kanoo Travel, launching a new Destination Management Company in Saudi Arabia. This initiative has expanded its geographical footprint and fostered strong partnerships with local stakeholders, for smoother operations and market penetration. The new DMC is strategically positioned to leverage the strengths of both Desert Adventures and Kanoo Travel, creating a robust platform for growth. The company is committed to sustaining growth in the CIS region, broadening its footprint in the subcontinent market, and nurturing growth in additional European markets. Allied TPro, a subsidiary and a leading inbound operator in the US, has seen strong performance across all business segments such as FIT (Free Independent Travelers), Groups and Escorted tours driving overall volume growth. Technology integrations have helped improve efficiencies on both, supply and delivery front. Key European markets also continued to perform strongly, positively impacting all three business lines. In addition to improved sales performance, a continued focus on cost control remained a key focus area of ATP.

Private Safaris South Africa made strategic moves to prioritise cost-saving measures, while simultaneously expanding its business horizons. By harnessing technology related to booking and systems it enhanced agent interactions of aswellasimproved tasks and digital engagements has enabled the company to grow with limited human resources.

Thomas Cook India is a distinguished non-bank foreign exchange entity in India, holding an AD-2 licence from the Reserve Bank of India. The Companys Group Forex operations, managed by Thomas Cook (India) Limited, Thomas Cook Lanka (Private) Limited, and Thomas Cook (Mauritius) Operations Company Limited, encompass a wide spectrum, catering to retail, wholesale, corporate, and payment solutions. With an array of comprehensive services, Thomas Cook India has established its status as the foremost omnichannel Forex provider in India, leveraging its extensive physical distribution network and reliable Digital Forex Centre. From 23 airport counters spread across India, Mauritius, and Sri Lanka to strategically positioned retail stores in various destinations, the Company ensures smooth accessibility to premium services.

Since its inception, Thomas Cook Indias Borderless Prepaid Card has facilitated transactions, boasting a load volume exceeding Rs. 4.5 bn. This innovative multi-country prepaid travel card, offered by Thomas Cook India, enables users to transact in various currencies, eliminating the hassle of carrying multiple cards or cash. Moreover, with a focus on all our foreign exchange business segments, the Companys Forex business caters to a diverse clientele, ranging from leisure outbound segment to education.

The company pursued and consolidated its market penetration strategy with respect to the corporate and financial institution segment, posting a turnover growth.

As the tourism industry continues its upward trajectory of recovery, the Retail segment grew by 50%. The Money Transfer business through MoneyGram has also contributed significantly to the revenue generation during the financial year with the focus on enhancing the service delivery to its clients.

Thomas Cook Lanka (Private) Limited, a wholly-owned subsidiary in Sri Lanka, extends foreign exchange services across Sri Lanka, operating from prime locations at Bandaranaike International Airport and branches in Colombo and Kandy.

The economic situation in Sri Lanka is exhibiting early signs of stabilisation, supported by improved fiscal and external balances. This positive trajectory is backed by a recovery in remittances and tourism, combined with ongoing debt service suspension measures. Tourism thrived with a notable increase in arrivals. In 2023, the Major tourist arrival was from India (20.30%).

The Company, through its Value Added Services team, offers a wide range of services including, overseas and domestic travel insurance support for its customers, the TBA (Travel

Business Associate) programme—an innovative channel of business which has freelancers who are associated with the Company for sourcing all lines of business, The VAS Team actively engages with businesses by means of regular training programmes to offer appropriate products / services to their customers.

Sterling Holiday Resorts Limited (Sterling) stands as a leading leisure holiday lifestyle company, offering extraordinary getaways amid an eclectic mix of picturesque locales. From majestic mountains and sun-kissed beaches to lush jungles, revered heritage sites, spiritual pilgrimages and easily accessible drive-to destinations from bustling metropolises, Sterling curates an exquisite portfolio of accommodations.

Driven by a firm commitment to crafting unforgettable vacations, the Company goes beyond mere accommodation to deliver distinctive experiences, complemented by exceptional cuisine and impeccable services.

With a formidable leadership team rich in experience across the hospitality industry and other relevant sectors, the company possesses unparalleled strength, vision, and expertise to propel its growth strategies. Sterling has successfully implemented a digitisation initiative encompassingbothcustomer-facingoperationsandbackend processes, sharpening its focus on customer-centric growth. over Demonstrating consistent operational profitability multiple quarters, the business has achieved sustainable revenue growth while effectively managing costs.

Sterling continued to focus on leveraging its technology-based proprietary distribution channel, Sterling ONE, to increase occupancies from various source markets in India. With over 5,200 partners, this channel accounted for 25% of all room-nights sold without incurring incremental fixed costs. Sterling also re-engineered its back-end ERP and front-end Property Management Systems (PMS) in FY 2023-24, adopting cloud-based and scalable solutions for future expansions In FY 2023-24, Sterling inaugurated 7 new resorts, including resorts in Sariska, Athirappilly, Panchgani, Udaipur (Balicha), Udaipur (Jaisinghgarh), Shimla and Pushkar bringing the total to 48 resorts across 44 destinations, further broadening its resort inventory and room rate distribution through the its Sterling One platform. The company has also intensified focus on technology, introducing various digital initiatives like robotic automation tools and bots to enhance operational efficiencies.

The Groups souvenir imaging company, Digiphoto Entertainment Imaging (DEI), is headquartered in Dubai, with a global presence across 18 countries. With a comprehensive end-to-end service model, the business provides state-of-the-art equipment, innovative software, skilled talent, and unique operational expertise. Its esteemed partners span 133 establishments over 265 iconic tourist attractions, water parks, aquariums, theme and amusement parks, luxury hotels and resorts, cable cars, animal and bird parks, and snow parks. The company not only expanded its portfolio by adding 39 new partnerships, and 25 new projects, but also strengthened it by renewing 30 of its existing partnerships. Furthermore, during the year, the rollout of WeC, the new imaging platform, was initiated.

The captive Shared Services Centre (SSC) within the Group is essential in consistently meeting both business and financial targets. Its main objective is to streamline business transactions and harness synergies across various entities within the organisation.

To realise these objectives, the SSC focusses on refining processes through advanced digital technologies, including artificial intelligence and machine learning, cloud-based platforms, and bespoke reporting solutions.

In the current landscape, the SSC is placing an even greater emphasis on improving customer experiences. This involves a continuous effort to understand and prioritise the evolving needs of the business while simultaneously navigating and adhering to increasingly complex compliance requirements throughout the year. Through these efforts, the SSC not only supports the Groups overall strategic goals but also ensures that it remains agile and responsive in a rapidly changing business environment.

During the year, the emphasis shifted from maintaining liquidity to supporting increasing business requirements of the growing company with a consistent focus on timely collections and bringing in operational and financial efficiency.

After the hypothecation of current assets (excluding BPC monies), mortgage creation on major part of the properties emphasis on succession planning. favoring the lenders was completed in March 2023, we continue to work with the lenders and lawyers on balance part of the properties to be mortgaged. Since two of the properties were taking time for mortgage, we have given negative lien to the lenders as an interim arrangement/ comfort. This security creation was done for securing our borrowings to ensure timely availability of funded and non-funded facilities and for efficient operations of the Groups businesses.

Looking at the multiple credit defaults continuing in the post-Covid-19 pandemic era impact on financial position of players in multiple industries, our Company primarily made investments in bank deposits / mutual funds which were pre-approved by the Board and the senior management. In principle, the Company continued to be guided by this ‘Safety First principle and this helped avoid any hits on account of credit defaults.

Resumption of near normal business in most of the geographies resulted in reduced dependence on financial support to Group companies in India and overseas in the form of inter-company loans during 2023-24. However, such support was continued for critical payments in case of a few entities where the market recovery was comparatively slower.

The Thomas Cook India Group represents a varied workforce representing diverse backgrounds and 56 nationalities and a unified aim of service excellence and superior delivery standards. Adopting industry best practices in HR, the Company ardently strives to increase the representation of female talent, aligning with its diversity goals. Recognising the correlation between employee contentment and productivity, the Company encourages upskilling initiatives and fosters a collaborative work milieu that exudes positivity. With a firm commitment to growth, the Company nurtures a culture of empowerment through extensive training programmes, dynamic leadership modules, and engaging developmental sessions for its employees.

Thomas Cook (India) Limited is deeply committed to offering a wide array of training and development initiatives. These programs are tailored to boosts productivity and process efficiencies, refine and promote self-management. In addition, the Company provides comprehensive training in fraud prevention and risk management to safeguard its operations.

As part of its forward-looking strategy, Thomas Cook India

The places significant

Company employs advanced HR analytics to pinpoint top talent for future leadership roles and evaluate overall organisational synergy. Through meticulous succession planning within the Executive Committee, Thomas Cook India ensures a seamless transition and sustained leadership continuity.

Quarterly Newsletters: Thomas Cook India fosters a culture of engagement through various channels. One such channel is the quarterly newsletter, ‘Pulse, which provides insights into the organisations activities and achievements over the past few months.

Virtual Town Hall Sessions: Regular virtual town hall meetings invigorate the workforce by offering motivational workshops and updates from business leaders. These sessions also serve as a platform for employees to showcase their skills and involve their families.

Motivational Workshops and Quarterly Confluence: The quarterly confluence is a dynamic event that encourages interaction between employees and business leaders. This event not only keeps employees informed but also provides a space for talent showcases and family involvement. The confluence has recently transitioned back to an in-person format, further enhancing its impact.

Incentives and Compensation: To retain top talent, Thomas Cook India offers long-term incentives, stock options, and competitive compensation packages. These efforts aim to create a workplace where individuals feel safe, valued, and empowered to perform at their best.

Leadership Connect Sessions: Throughout the year, the Company organises leadership connect sessions across multiple forums. These sessions encourage dialogue between employees and senior management, fostering a sense of inclusion and transparency.

Be Well Program: The ‘Be Well initiative is a holistic wellness program designed to elevate physical, mental, and spiritual well-being. This initiative has been well-received by employees, contributing to a healthier and more balanced workforce.

Confluence Employee Meet Program: The Confluence employee meet includes key business updates shared by leaders, followed by the PRIDE awards ceremony, which recognizes top performers across the Group. This program also features employee talent shows and family engagement activities, boosting morale and ensuring that employees feel appreciated and recognised for their efforts.

Thomas Cook India, a distinguished member of the Fairfax Group of Companies, has joined forces with the Fairfax India Charitable Foundation (FICF) to support a nationwide dialysis program. This initiative aims to eliminate access barriers and deliver essential nephrology care to those in need.

In India, it is estimated that approximately one out of every seven adults suffers from chronic kidney disease (CKD) and requires dialysis. More than 1.3 million patients need dialysis twice/thrice a week to survive but only about 15% of them undertake dialysis due to the high cost of treatment & long travel to access treatment. Today over 200,000 dialysis machines are needed but just 35,000 dialysis machines are operational—of which more than 80% serve the urban and the affluent.

To tackle this pressing concern, Thomas Cook India has established strong connections with state governments and hospitals nationwide. The Companys main goal is to significantly improve the lives of these patients by fostering a cooperative environment. This environment seeks to offer complimentary or reasonably priced, top-notch dialysis services to renal patients, particularly in areas of India where dialysis facilities are scarce. Through this endeavour, the Company aims to ease the challenges of chronic kidney disease and enhance the well-being of those impacted by it. For more details, refer to page no. 68 of Integrated Annual Report.

*Excluding the non-operational mark-to-market gain of Rs. 112 mn (compared to Rs. 353 mn the previous year) from the equity shares held by Thomas Cook (India) Limited in Quess Corp Limited through its Employees Benefit Trust.

** The consolidated Profit before tax excluding Mark to Market gain ofRs. 112 mn (Previous Year loss of Rs. 353 mn) and excluding exceptional item is Rs. 3,337 mn (Previous Year Rs. 642 mn).

*** The stand-alone Profit before tax excluding Mark to Market gain of Rs. 112 mn (Previous Year loss of Rs. 353 mn) and excluding exceptional item is Rs. 1,409 mn (Previous Year Rs. 561 mn).

Risk Management

Assessing and managing risks is pivotal for ensuring the long-term viability of the business. Thomas Cook India has established a robust risk management framework, vigilantly overseen by senior management through routine reviews. Here are the primary risks identified, along with corresponding measures meticulously crafted to mitigate them.

At Thomas Cook India, internal control systems are integrated into all processes across every function. These systems undergo regular reviews and are modified or redesigned as needed to enhance efficiency, effectiveness, and control. All processes and systems are subject to Internal Audit through an annual plan approved by the Audit Committee. This is further supported by Internal Financial Auditors and Statutory

Auditors, who ensure that financial reporting is accurate and that controls are both well-designed and effective. In line with RBI guidelines, the Company has also implemented a system of Concurrent Auditing for its Foreign Exchange business across branches. Thomas Cooks (India) Anti-Money Laundering Policy is regularly reviewed and updated to reflect any changes in RBI guidelines. Furthermore, the Company has implemented measures to ensure compliance with audit trail requirements. The results of all audits are thoroughly discussed with Senior Management and reviewed by the Audit Committee, which convenes at least once every quarter.

Statements forming part of the Management Discussion and Analysis Report covered in this Report may be single quotes within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the ‘forward-looking statements. Important factors that could influence the Companys operations include demand and supply conditions, changes in government regulations, exchange rates, tax laws, monsoons, natural hazards, national and global economic developments, and other factors.