A STUDY ON CONSUMER AWARENESS OF FOREX

SERVICES OF THOMAS COOK INDIA LIMITED,

THRISSUR
PROJECT REPORT
A project submitted to the University of Calicut in partial
fulfillment of the requirement for the award of the
Degree of Bachelor of Commerce
Submitted by

ARJUN LAL.S
REG.NO:- ICALBCM027
Under the Supervision of
Ms. Smitha P.G
(Lecturer in Commerce)
College of Applied Science, Chelakkara,(IHRD)

DEPARTMENT OF COMMERCE

ACKNOWLEDGEMENT
I hereby express my profound gratitude to my guide
Ms.Smitha.P.G Lecturer in Commerce, College of Applied Science,
Chelakkara for his valuable guidance and suggestion rendered during
the course of this study also during the presentation of the report.
I am highly indebted to the management of Thomas Cook India
Limited, Thrissur for giving me the permission to undergo the project
report in the organization. I express my sincere thanks for necessary
help and guidance in this regard.
I express my sincere gratitude to all teaching staff in the
department of commerce and friends who helped me in the preparation
of this report.
I express my gratitude to my family and friends who game me
moral support during the preparation of this report.
Above all I thank almighty God for giving me all grace
throughout the completion of my work.

PLACE:
DATE:

ARJUN LAL.S
6 th SEMESTER B.Com

TABLE OF CONTENTS
SL.NO

CHAPTERS

1.
Introduction and Company profile
2.
Review of Literature
3.
Analysis and Interpretation
5.
Findings, Suggestions and Conclusion
6.
Appendix Questionnaire
7.
Bibliography

PAGE NO.

INTRODUCTION

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

have to carry a huge sum of money with you. Though this plastic
money comprises different payment channels, this paper is focusing to
bring the conceptual framework of Credit Card.

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

2.3 About the Organization

Since the beginning of time, people have had a fascination with
exploring and seeking new adventure. Each new journey is a personal
voyage of discovery. As a pioneer with a trusted heritage, Thomas
Cook has shaped the modern travel experience by understanding what
their customers want and inspiring their dreams. Their timeless spirit
of innovation started in 1842 and it is this that makes them stand out
from the crowd, reflected in their new, trusted products and growing
suite of online tools and applications. Innovation shaped their past and
it will shape their future. Trust, personalization and innovation are the
values that customers go to them for. TCIL is very proud to serve the
23 million who chose to travel with them annually and are
transforming their business so that they can serve even more
customers in ways that deliver better the most important weeks of
their year. Their very essence is to deliver inspiring personal journeys
as the trusted pioneer in global travel. The core of their strategy is to
deliver a high-tech, high-touch approach, there for their customers
wherever, whenever and however they want to connect with them.
Thomas Cook Group plc is one of the worlds leading leisure travel
groups with sales of 9.5 billion and 23 million customers in the year

ended 30 September 2012. Thomas Cook is supported by 27,000 full

time equivalent employees and operates from 19 countries; it is
number one or two in all its core markets. Thomas Cook Group plcs
shares are listed on the London Stock Exchange (TCG).
Thomas Cook Group plc is a British global travel company listed on
the London Stock Exchange. It was formed on 19 June 2007 by the
merger of Thomas Cook AG, itself the successor to Thomas Cook &
Son, and MyTravel Group plc. It is a constituent of the FTSE 250
Index. At the time of the merger, 52% of the shares in the new
company were held by the German mail-order and department store
company Arcandor (the former owner of Thomas Cook AG) and 48%
owned by the shareholders of MyTravel Group.

3.1 History of Thomas Cook AG

In recent years, a number of key trends in leisure travel,
namely increasing online distribution and the rise of low-cost carriers,
have facilitated a shift towards more flexible consumer-led travel
choices.
Thomas Cook (22 November 1808 18 July 1892) of
Melbourne, Derbyshire, England founded the travel agency Thomas
Cook & Son (popularly nicknamed Cook's Tours ) that became
Thomas Cook AG before eventually becoming Thomas Cook Group
in 2007. Thomas Cook was born to John and Elizabeth Cook, who
lived at 9 Quick Close in the village of Melbourne, Derbyshire. The
couple's first child, he was named after Elizabeth's father, Thomas
Perkins. John Cook died when Thomas was three years old, and his
mother remarried later that same year. At the age of 10, Cook started
working as an assistant to a local market gardener for a wage of six
pence a week. At the age of 14, he secured an apprenticeship with John
Peg, and spent five years as a cabinet maker. Thomas Cook was
brought up as a strict Baptist, and joined his local Temperance
Society. In February 1826, Cook became a preacher, and toured the
region as a village evangelist, distributing pamphlets, and occasionally
working as a cabinet maker to earn money. After working as a part-

time publisher of Baptist and Temperance pamphlets, he became a

Baptist minister in 1828. In 1832, Cook moved to Adam and Eve
Street in Market Harborough. Influenced by the local Baptist minister
Francis Beardsall, he took the temperance pledge on New Year's Day
in 1833. As a part of the temperance movement, he organized
meetings and held anti-liquor processions. On 3 March 1833, Cook
married Marianne Mason. John Mason Cook, their only son, was born
on 13 January 1834.
The first ever excursions
Panels from the Thomas Cook Building in Leicester, displaying
excursions offered by Thomas Cook Cook's idea to offer excursions
came to him while walking from Market Harborough to Leicester to
attend a meeting of the Temperance Society. With the opening of the
extended Midland Counties Railway, he arranged to take a group of
540 temperance campaigners from Leicester Campbell Street station
to a rally in Loughborough, eleven miles away. On 5 July 1841,
Thomas Cook arranged for the rail company to charge one shilling
per person that included rail tickets and food for this train journey.
Cook was paid a share of the fares actually charged to the passengers,
as the railway tickets, being legal contracts between company and
passenger, could not have been issued at his own price. This was the
first privately chartered excursion train to be advertised to the general
public, Cook himself acknowledging that there had been previous,
unadvertised, private excursion trains. During the following three
summers he planned and conducted outings for temperance societies
and Sunday school children. In 1844 the Midland Counties Railway
Company agreed to make a permanent arrangement with him
provided he found the passengers. This success led him to start his
own business running rail excursions for pleasure, taking a percentage
of the railway tickets.
Leicester railway station - this was built between 1892 and 1894 to
replace, largely on the same site, Campbell Street station, the origin
For many of Cook's early tours. On 4 August 1845 he arranged
accommodation for a party to travel from Leicester to Liverpool. In

1846, he took 350 people from Leicester on a tour of Scotland;

however his lack of commercial ability led him to bankruptcy. He
persisted and found success when he claimed that he arranged for over
165,000 people to attend the Great Exhibition in London. Four years
later, he planned his first excursion abroad, when he took a group
from Leicester to Calais to coincide with the Paris Exhibition. The
following year he started his 'grand circular tours' of Europe.
During the 1860s he took parties to Switzerland, Italy, Egypt
and United States. Cook established 'inclusive independent travel',
whereby the traveler went independently but his agency charged for
travel, food and accommodation for a fixed period over any chosen
route. Such was his success that the Scottish railway companies
withdrew their support between 1862 and 1863 to try the excursion
business for themselves.
Thomas Cook & Son Nile cruise poster from 1922 in 1872, he formed
a partnership with his son, John A Mason Cook, and renamed the
travel agency as Thomas Cook & Son. They acquired business
premises on Fleet Street, London. By this time, Cook had stopped
personal tours and became an agent for foreign or domestic travel.
The office also contained a shop which sold essential travel accessories
including guide books, luggage, telescopes and footwear. Thomas saw
his venture as both religious and social service; his son provided the
commercial expertise that allowed the company to expand. In
accordance with his beliefs, he and his wife also ran a small
temperance hotel above the office. Their business model was refined
by the introduction of the 'hotel coupon' in 1866. Detachable coupons
in a counterfoil book were issued to the traveler. These were valid for
either a restaurant meal or an overnight hotel stay provided they were
on Cook's list. In 1865, the agency organized tours of the US, picking
up passengers from several departure points. In 1874, Thomas Cook
introduced circular notes, a product that later became better known
by American Expresss brand, travelers cheques. Conflicts of interest
between father and son were resolved when the son persuaded his
father, Thomas Cook, to retire in 1879. He moved back to
Leicestershire and lived quietly until his death. The firm's growth was

consolidated by John Mason Cook and his two sons, especially by its
involvement with military transport and postal services for Britain
and Egypt during the 1880s, when Cook began organizing tours to
the Middle East. By 1888, the company had established offices around
the world, including three in Australia and one in Auckland, New
Zealand, and in 1890, the company sold over 3.25 million tickets. John
Mason Cook promoted, and even led, excursions to, for example, the
Middle East where he was described as "the second-greatest man in
Egypt ". However, while arranging for the German Emperor Wilhelm
II to visit Palestine in 1898, he contracted dysentery and died the
following year.
The world got around and by the early 1900s, the who's who
of the era- kings, politicians, bishops and professors - patronized
Thomas Cook's travel itinerary. As the years passed by, the Company
introduced the world to a whole new concept of leisure and business
travel. Driving innovation in the business, it connected continents and
presented the people an economic and state mode of travel across
them. In 1881, Thomas Cook started its India operations, with its first
office being set up in Mumbai. As it expanded its horizons across the
subcontinent, the Company came to be known as Thomas Cook
Overseas Ltd. And on 21st October 1978, it was christened Thomas
Cook (India) Ltd, only to make its first public issue in February 1983.
In the year 2000, the Group commenced its operations in
Mauritius and also acquired the Sri Lanka business from Thomas
Cook Overseas Ltd, UK. In 2006, Thomas Cook (India) Limited
acquired LKP Forex Limited and Travel
Corporation (India) Pvt. Ltd. (TCI). In May 2012, Thomas Cook
Group plc, UK (the erstwhile parent) sold its investment in Thomas
Cook (India) Limited (TCIL) to Fairbridge Capital (Mauritius)
Limited (Fairbridge). Fairbridge made an open offer to the nonpromoters and post August 14, 2012, TCIL is part of Fairfax Group,
Canada.
TCIL presently operates in over 98 cities across over 235
locations (including 23 airport counters). The company has overseas

operations in Sri Lanka which is a branch of TCIL and Mauritius

which is a subsidiary of Thomas Cook (India). TCIL is supported by a
strong partner network of 133 Gold Circle Partners and 165 Preferred
Sales Agents in over 150 cities pan India. The Company employs over
2,802 resources and is listed on both the Bombay Stock Exchange as
well as the National Stock Exchange.
Thomas Cook Indias Centre of Learning has received IATA
accreditation as Top 10 South Asia IATA Authorized Training
Centres, 2012 & 2013.

4.1 Organization Profile

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

In May 2012, Thomas Cook Group plc, UK (the erstwhile parent) sold
off its investment in Thomas Cook (India) Limited (TCIL) to
Fairbridge Capital (Mauritius) Limited (Fairbridge). Fairbridge made

an open offer to the non-promoters and post August 14, 2012, TCIL is
part of Fairfax Group, Canada. Thomas Cook (India) Ltd has been
honoured with The Most Trusted Brand in travel services by The
Brand Trust Report, India study 2012, voted Best Tour Operator at
the Lonely Planet Travel Awards 2013, Best Tour Operator Outbound at the CNBC AWAAZ Travel Awards 2013 and Favorite
Specialist Tour Operator at the Cond Nast Traveler Readers' Travel
Awards 2011 & 2012. In addition, TCIL has been chosen as the Best
Corporate Travel Management Company by World Travel Brands
2012 and recognized as a Consumer Superbrand 2011-2012 by
Superbrands. The Company was selected Retailer of the Year
Leisure & Holidays, by ET NOW in 2013. At the recently concluded
National Tourism Awards 2011-2012, TCIL was honoured with 3
prestigious awards: Special Award for endeavors in launching new
tourism products and exemplary performance during the year 201112; Tour Operator Promoting Niche Segments other than Adventure
and MICE and Award of Excellence: Best Tourism Promotion
Publicity Material.

Organizational Structure

4.2 Foreign Exchange Services of TCIL

Currency Notes
Prior to your travelling abroad, destination currency could be picked
up from Thomas Cook. There is a range of 26 currencies.

Travellers Cheques
Travellers Cheques are one of the safest and most convenient ways to
carry money while going abroad. Thomas Cook sells American
Express Travellers Cheque in all the 7 major currencies i.e.: USD,
British pounds, Euro, Australian dollars, Canadian dollars, Swiss
francs and Japanese yen.

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

Money Transfer Services

Money sent from overseas can be received and paid out in Indian
Rupees, in as little as 10 minutes by any Thomas Cook office.

U-Special Student Program

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

4.4 Vision and mission statement

Vision: we go further to make dreams come true

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

Services of Thomas Cook India Limited (TCIL)

Holidays- Inbound
Holidays- International
Holidays- Domestic
Air Tickets
Rail Tickets
Corporate Travel
Meetings, Incentives, Exhibitions and Conferences
Foreign Exchange
Credit Cards
Travel Insurance

Thomas Cook has been granted authorized dealers license

(category11) by RBI to deal in foreign exchange through its
designated branches.
Under this license they have been granted permission to undertake the
following activities:
1. Retail purchases of foreign currencies and travelers cheques.
2. Bulk purchases/sale of foreign currencies from/to authorized
dealers, money changers and franchisees.
3. Release/remittance of foreign exchange for the following
activities:
a) Private visits
b) Remittance by tour operators/ travel agents to overseas
agents/ principal/ hotels
c) Business travel (including for central and state government
officials)
d) Fee for participation in global conferences and specialized
training
e) Payment for crew wages
f) Film shooting
g) Medical treatment abroad
h) Overseas education
i) Remittance under educational tie up arrangements with
universities abroad
j) Maintenance of close relatives abroad
4. Import and export of foreign currency and export of encashed
Travelers cheques
5. Maintenance of foreign currency accounts with banks abroad
and undertaking Forex cover operations in India and abroad
The activities permitted by RBI are carried out only at the Foreign
Exchange Dealers Association of India.

Foreign Exchange Products and Services

As an Authorized dealer, services includes wholesale and retail
purchases and sale of Travelers cheques (TC), Prepaid international
cards, Inward and outward remittance and money transfer(MT).
Some of our services are:
Purchase and Sale of currency notes in 26 destination currencies
Purchase and sale of foreign currency denominated
Travelers cheques
State Bank of India and Citibank World Money Card as prepaid
cards, which is a convenient way to carry money overseas
Foreign currency drafts
Wire Transfer of funds
Remittance of money to India through Money Gram
Cash advances against international credit card

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

4.5 Company at a glance

Name

: Thomas Cook (India) Limited

Board of Directors
M K Sharma

: Chairman

Madhavan Menon

: Managing Director

Krishnan

: Executive Director-Finance

Chandran Ratnaswami
Exchange

: Executive Director-Foreign

Harsha Raghavan

: Non- Executive Director

Ramesh Savoor

: Non- Executive Director

Uday Khanna

: Non- Executive Director

Kishori Udeshi

: Non- Executive Director

Regional Head Office

Thomas Cook Building
Dr.Dadabhai Navoroji Road,
Fort Mumbai, Maharashtra
India
PIN-400001

Research Methodology

5.1 Research Methodology

Research Methodology is a way to systematically solve the
research problem. It may be understood as a science of studying how
research is done scientifically. The various steps that are generally
adopted by a researcher in studying his research problem along with
the logic behind them are studied from it. It is necessary for the
researcher to know not only the research methods/techniques but also
the methodology. It is therefore necessary to design his/her
methodology for them problem as the same may differ from problem
to problem.
For successful understanding and completion of the project, this
research was carried out in distinctive steps which is shown below
with the help of a figure:

Problem Identification

Research Design
Data Collection
Data Analysis & Interpretation

Research Report
Fig 5.1 Steps in Research Methodology

5.2 Problem Identification:

The first and the most important step of research are to properly
define the problem. Here the research problem is regarding the level
of consumer awareness of Plastic money; a comparative study on
Multi Currency Forex Cards.

5.3 Research Design:

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

5.4 Data Collection and Sampling:

Data has been collected from various sources, there is combination of
both primary and secondary data that has been used in this research.
a) Primary Data
Primary data has also been collected through questionnaire and
interviews of a cross section of population. The data collected through
this method was adequate enough to make projections in the study.
Questionnaires:
Questionnaires are popular means of collecting data, but are
different to design and often require many rewrites before an
acceptable questionnaire is produced.
Types of Questions Used Are:
Attitude questions to find out the respondents opinions or
attitudes to a given situation. A likert scale provides a battery of
attitude statements. The respondents then say that how much they are
aware with each one.

An open question such as What are the advantages of Thomas Cook?

and What are the disadvantages of Thomas Cook? should be used as
an adjunct to the main theme of the questionnaire and could allow the
respondent to elaborate upon an earlier more specified question.
However they were not be used to introduce a section since there is
high risk of influencing later responses. The main problem of open
question is that many different answers have to be summarized and
possibly coded.
Interviews
Interviewing is a technique that is primarily used to gain an
understanding of the underlying reasons and motivations for peoples
attitudes, preference and behavior.
b) Secondary Data
Articles have been sourced from magazines and journals dealing with
current happenings in Foreign Exchange. Internet and Text books
related to Foreign Exchange and Research methodology have been a
major secondary source for the extraction of the Experts opinion.
Sampling Technique
Since the project deals with the peoples from abroad, NRIs, leisure
travelers and corporate travelers convenient sampling is approximate
for making projection in the study. Population group which includes
Peoples from abroad and corporate travelers are from Thrissur region
only. The units are selected because of their convenient accessibility
and proximity. The data are quickly available and easily gathered. I
have therefore chosen the sampling method.
Sampling Size:
The research is restricted to a sample size of 50.

5.5 Data Analysis and Interpretation

Data Analyzing and Interpretation is the step to be taken after the
completion of the above mentioned steps. For this research bar
diagrams, pie charts and other data representation techniques are used
for analyzing and interpreting the data.

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

6.2 Scope Of Study

1. As the company is a MNC, its operations are also in the global
level.So the awareness level assesses its marketability.
2. Consumer awareness assesses products market position also.

6.3 Limitations Of Study

1.As the Company is a MNC,its hard to assess a products
Marketability only by taking the reports from single city and a
Retail outlet.
2.The study is conducted only in Thrissur area only.
3.Forex Cards are mainly used by foreign travellers; common
peoples are still unaware of the New product.

LITERATURE REVIEW

7.1 INTRODUCTION

Happenings in the foreign exchange market (henceforth forex market)

form the essence of the international finance. The foreign exchange
market is not limited by any geographical boundaries. It does not have
any regular market timings, operates 24 hours 7 days week 365 days a
year, characterized by ever-growing trading volume, exhibits great
heterogeneity among market participants with big institutional
investor buying and selling millions of dollars at one go to individuals
buying or selling less than 100 dollar.
Traditionally Indian forex market has been a highly regulated one.
Till about 1992-93, government exercised absolute control on the
exchange rate, export-import policy, FDI( Foreign Direct Investment)
policy. The Foreign Exchange Regulation Act(FERA) enacted in
1973, strictly controlled any activities in any remote way related to
foreign exchange. FERA was introduced during 1973, when foreign
exchange was a scarce commodity. Post-independence, union
governments socialistic way of managing business and the license raj
made the Indian companies noncompetitive in the international
market, leading to decline in export. Simultaneously India import bill
because of capital goods, crude oil & petrol products increased the
forex outgo leading to sever scarcity of foreign exchange. FERA was
enacted so that all forex earnings by companies and residents have to

reported and surrendered (immediately after receiving) to RBI

(Reserve Bank of India) at a rate which was mandated by RBI.
FERA was given the real power by making any violation of FERA
was a criminal offense liable to imprisonment. It a professed a policy
of a person is guilty of forex violations unless he proves that he has
not violated any norms of FERA. To sum up, FERA prescribed a
policy nothing (forex transactions) is permitted unless specifically
mentioned in the act.
Post liberalization, the Government of India, felt the necessity to
liberalize the foreign exchange policy. Hence, Foreign Exchange
Management Act (FEMA) 2000 was introduced. FEMA expanded the
list of activities in which a person/company can undertake forex
transactions. Through FEMA, government liberalized the exportimport policy, limits of FDI (Foreign Direct Investment) & FII
(Foreign Institutional Investors) investments and repatriations, crossborder M&A and fund raising activities.
Prior to 1992, Government of India strictly controlled the exchange
rate. After 1992, Government of India slowly started relaxing the
control and exchange rate became more and more market determined.
Foreign Exchange Dealers association of India (FEDAI), set up in
1958, helped the government of India in framing rules and regulation
to conduct forex exchange trading and developing forex market In
India.

7.2 PARTICIPANTS AND DEALERS IN FOREIGN EXCHANGE

MARKET
Foreign exchange market needs dealers to facilitate foreign
exchange transactions. Bulk of foreign exchange transaction are
dealt by Commercial banks & financial institutions. RBI has also
allowed private authorized dealers to deal with foreign exchange
transactions i.e. buying & selling foreign currency. The main
participants in foreign exchange markets are
1. Retail Clients
Retail Clients deal through commercial banks and authorized
agents. They comprise people, international investors, multinational
corporations and others who need foreign exchange.
2. Commercial Banks
Commercial banks carry out buy and sell orders from their
retail clients and of their own account. They deal with other
commercial banks and also through foreign exchange brokers.
3. Foreign Exchange Brokers
Each foreign exchange market center has some authorized
brokers. Brokers act as intermediaries between buyers and sellers,
mainly banks. Commercial banks prefer brokers.

4. Central Banks
Under floating exchange rate central bank does not interfere in
exchange market. Since 1973, most of the central banks intervened to
buy and sell their currencies to influence the rate at which currencies
are traded.
From the above sources demand and supply generate which in
turn helps to determine the foreign exchange rate.

7.3 TYPES OF FOREIGN EXCHANGE MARKET

Foreign Exchange Market is of two types retail and wholesale
market.
1. Retail Market
The retail market is a secondary price maker. Here travelers,
tourists and people who are in need of foreign exchange for permitted
small transactions, exchange one currency for another.
2. Wholesale Market
The wholesale market is also called interbank market. The size
of transactions in this market is very large. Dealers are highly
professionals and are primary price makers. The main participants are
Commercial banks, Business corporations and Central banks.

Multinational banks are mainly responsible for determining exchange

rate.
3. Other Participants
a) Brokers
Brokers have more information and better knowledge
of market. They provide information to banks about the prices at
which there are buyers and sellers of a pair of currencies. They act as
middlemen between the price makers.
b) Price Takers
Price takers are those who buy foreign exchange which
they require and sell what they earn at the price determined by
primary price makers.
Indian Foreign Exchange Market
It is made up of three tiers
Here dealings take place between RBI and Authorized dealers
(ADs) (mainly
Commercial banks).
Here dealings take place between ADs
Here ADs deal with their corporate customers.

7.4 GENERAL GUIDELINES REGARDING FOREIGN EXCHANGE

1) Documents needed for release of Foreign exchange:
A valid passport
Confirmed air ticket, if not available. CRS print put
Form A2- Application cum Declaration
Sales advice in case of issue of travelers cheques
TT/DD/Prepaid card application
2) Mode of release of foreign exchange
Maximum of USD 3000/- or equivalent, in foreign currency
notes.
Not exceeding USD 5000/- in foreign currency notes for
persons traveling to Iraq/Libya.
Entire entitlement may be released in foreign currency notes
for travel to Russia, CIS or Iran.
Forex can be purchased in a combination of Currency notes,
Travelers Cheques, Demand drafts, Telegraphic transfers,
prepaid cards.

3) Mode of payment
Cash payment may be accepted if the value of transaction does
not exceed Rs.50000/ However, for cash payments in excess of Rs.25000/- PAN
card/ G.I.R number is required. If the PAN card or G.I.R
number is not available then the applicant must fill up FORM
60
Cheques / Demand drafts/ Pay orders where the rupee
equivalent exceeds Rs.50000/-

4) Acknowledgment of receipt of foreign exchange

A delivery letter should always be carried by the person going
to handover the FX to the customer.
The customer should sign the sales bordereaux or a copy of
the same.
The customer should sign on the reverse of the copy of the
sales advice as acknowledgment of having the currency note
as well as Travelers cheques listed on the face of the sales
advice.

5) RBI prescribed limits for release of foreign exchange:

Sr.No Purpose

for

which RBI prior approval required

foreign exchange could where the drawal exceeds

be drawn
1

Private visit

USD 10000 per person per

financial year

Business Travel

USD 20000 per visit per person

Overseas education

Estimate from institution abroad

or USD 100000 per academic
year whichever is higher

Medical

treatment Estimate from doctor in India or

abroad

hospital/doctor abroad or USD

100000 whichever is higher

Employment

USD 100000

Emigration

USD 100000

Maintenance

of

close USD 100000

relatives

(RBI prescribed limits for release of foreign exchange)

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

A resident individual may maintain a RFC (D) account of
foreign exchange acquired in the form of currency notes and
travelers cheques:
While on a visit to any place outside India by way of payment
for services
From any person not resident in India who is on a visit to
India, as honorarium or gift or for services rendered or in
settlement of any lawful objection
By way of honorarium or gift while on a visit to any place
outside India or
Represents the unspent amount of foreign exchange acquire
by him from an authorized person for travel abroad
As gift from a close relative
By way of earnings received as proceeds of life insurance
policy
Representing disinvestment proceeds
By way of earning of exports of goods and services

 Debits to the account shall be for payments towards current

account transactions
There shall be no ceiling on the balance in the account
7) AML guidelines for sale of foreign exchange
In all cases of foreign exchange, irrespective of the amount
involved, for identification/ verification purpose, the passport
of the customer should be insisted upon if travel is involved.
In other cases i.e. outward remittances e.g. maintenance of
close relatives. Application fees, processing fees, etc. any other
form of government issued photo of signature identity may be
accepted provided the customer does not have a passport at
all. Copies of all the relevant pages of the ID document/
passport must be kept on record.
The sale of foreign exchange should be made only on personal
application identification.
If the amount due from the customer for sale of foreign
exchange transaction is more than Rs.50000/-, payment
received only by account payee cheque / demand draft. The
transaction should not be split into part payment pay order/
demand draft and cash.

 All sales to a person within a calendar month are to be treated

as single transaction for the purpose.
If the rupee equivalent of foreign exchange drawn exceeds
Rs.50000/- for a single transaction or more than one
transaction reckoned together at any time during the calendar
month, it should be paid only by cheque or draft.
8) Compliance with the provisions of the Income Tax Act 1961
Before making remittances to non-residents we have to obtain
from the applicant an undertaking (in duplicate) and a CA
certificate (in duplicate).
9) Approaching RBI
If there is a need to approach RBI either verbally or by way of
a letter, prior approval should be obtained from the Sr. Vice
President- foreign exchange/ Head of foreign exchange and
the draft of the letter to be sent to RBI should also be vetted
by the Sr. Vice President/ Head of foreign exchange
operations and the FEMA consultant.

7.5 PARTICIPANTS AND DEALERS IN FOREIGN

EXCHANGE MARKET

Foreign exchange market needs dealers to facilitate

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

1. Retail Clients
Retail Clients deal through commercial banks and
authorized agents. They comprise people, international
investors, multinational corporations and others who need
foreign exchange.
2. Commercial Banks
Commercial banks carry out buy and sell orders from
their retail clients and of their own account. They deal with
other commercial banks and also through foreign exchange
brokers.
3. Foreign Exchange Brokers
Each foreign exchange market center has some
authorized brokers. Brokers act as intermediaries between

buyers and sellers, mainly banks. Commercial banks prefer

brokers.
4. Central Banks
Under floating exchange rate central bank does not
interfere in exchange market. Since 1973, most of the central
banks intervened to buy and sell their currencies to influence
the rate at which currencies are traded.
From the above sources demand and supply generate
which in turn helps to determine the foreign exchange rate.

DATA ANALYSIS
AND INTERPRETATION

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

1. Awareness of forex services

Table 1
Variables
Extremely aware
Moderately aware
Slightly aware
Not at all aware

No: Respondent
22
20
8
0
Fig 1

Awarness of foreign exchnage

Extremely aware

Moderately aware

Slightly aware

Not at all aware

0%
16%

44%

40%

In the above diagram 44% of the respondents are extremely aware of

foreign exchange services, 40% of the respondent are moderately
aware about the foreign exchange services, 16% of the travel agents
are slightly aware.

2. Awareness of various forex services by Travel Agents

Travelers Cheques
Foreign Currency
Notes
Forex Cards
Drafts
Swift Transfer

50
50
37
34
20

Fig 2

Awareness of forex services

60
50
40

30
20
10
0
Traverles Foreign Forex
cheque Currency Cards
Notes

Drafts

Swift
Transfer

Awareness of forex services

Since it was a multiple choice question the above diagram shows that
50 respondents are aware of travelers cheque and foreign currency
notes, 37 respondents knows about the Forex card, 20 respondents
knows about the swift transfer , 34 respondents know about the drafts.

3.Sources of information of different forex services

Table 3
Variables
Brokers
others
Friends and Relatives
Prospectors
Newspaper/Magazine

No: Respondent
12
23
10
8
15

Sources of Information
Sources of Information
23

25
20

15
15
10

12

10

5
0

In the above diagram other sources of information is the widely used

sources of information, 12 respondent came to know from brokers, 10
respondents feels they got information from friends and relatives, 8
respondents came to know from the prospectors and 15 respondents
got the information from newspaper and magazine

4.Earlier used forex services by travel agents

Table 4
Variables
Traverles cheque
Foreign Currency
Notes
Prepaid Travel cards
Drafts
Swift Transfer

No: Respondent
50
50
5
10
6
Fig 4

Earlier used forex services

Earlier used forex services
60
50

50

50
40
30
20
9

10

12

10

Drafts

Swift Transfer

0
Traverles
cheque

Foreign
Currency Notes

Forex Cards

In the above diagram all the 50 respondents have earlier used

travelers cheque and foreign currency, 9 of the respondents have used
the Forex card, 12 respondents have earlier used draft services, 10 of
the respondent have used swift transfer

5.Forex services which is preferred by Travel Agents

Table 5
Variables
Traverles cheque
Foreign Currency Notes
Forex Cards
Drafts
Swift Transfer

No: Respondent
11
26
4
2
7

Fig 5

Good to use
travers cheque

foreign currency notes

4%

Forex card

14%

drafts

swift transfer

22%

8%

52%

In the above diagram 52% of the travel agents feels foreign currency is
good to use, 22% are feels travel cheque is good to use, 8% of the
travel agents feels Forex card is good, and rest 4% & 14% supports
drafts and swift transfer respectively.

6. Major priority given to Forex Services by travel agents

Table 6
Variables
Safety
Speed
Liquidity
Convenient
All

No: Respondent
11
25
5
4
5
Fig 6

Major Priority Given To Forex Services

Safety

Speed

Liquidity

Convenient

All

10%
8%

22%

10%

50%

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

respondent has given priority to safety, 10% has given priority to all
the services, 8% of them given priority to convenient, 10% of them has
given priority to liquidity

7. Any Association with particular forex Company by travel agents

Table 7
Variables
Yes

No: Respondent
12

No

38

Fig 7

Association with forex company

yes

no

24%

76%

In the above diagram it shows that 76% of the respondent doesnt

have any association with particular forex company while 24% of the
respondent have tie up with foreign exchange company

8. Awareness of Thomas Cook

Table 8
Variables
Yes

No: Respondent
38

No

12

Fig 8

Awareness Of Thomas Cook

Yes

No

24%

76%

The awareness level of Thomas cook (forex) in Trissur district is 76%

while 24% of the travel agents are not still aware of the forex services.

9. Forex Services of Thomas Cook Used by Travel agents.

Table 9
Variables
Yes

No: Respondent
11

No

39
Fig 9

Forex Services TC Used By Travel agents

Yes

No

22%

78%

22% of the respondent in Trissur district has used Forex Card services
of Thomas cook while 78% havent used the services of Thomas cooks
Forex Card.

10.

Awareness of Multi Currency Card

Table 10
Variables
Yes

No: Respondent
8

No

42
Fig 10

Awareness Of Multi Currency Card

Yes

No

16%

84%

84% of the respondents are not aware of the newly launched multicurrency card of Thomas cook forex, while 16% of the respondents are
aware of the multi-currency card.

11.Swift Transfer Used by Travel Agents

Table 11

Variables

No: Respondent

Yes

No

47

Fig 11

Swift Transfer Used

Yes

No
6%

94%

94% of the respondents have never used the swift transfer of Thomas Cook India Ltd, while 6%
of the respondents have used the swift transfer of Thomas Cook

FINDINGS AND SUGGESTIONS

9.1 FINDINGS
Different services of forex and RBI regulations are co related that is
when the travel agents use different services of forex they will be
more aware of the RBI regulations.
Operations of the travels agents and services of foreign exchange
are correlated that is when the travel agents do more foreign
business they are getting more aware of the different forex services.
44% of the respondents are extremely aware of foreign exchange
services, 40% of the respondent are moderately aware about the
foreign exchange services, 16% of the travel agents are slightly
aware.
52% of the travel agents feels foreign currency is good to use, 22%
are feels travel cheque is good to use, 8% of the travel agents feels
prepaid travel card is good, and rest 4% & 14% supports drafts and
swift transfer respectively.
50% of the respondent has given priority to speed, 22% of the
respondent has given priority to safety, 10% has given priority to
all the services, 8% of them given priority to convenient, 10% of
them has given priority to liquidity.
Other sources of information is the widely used sources of
information, 12 respondent came to know from brokers, 10
respondents feels they got information from friends and relatives, 8
respondents came to know from the prospectors and 15
respondents got the information from newspaper and magazine.

 The awareness level about the Thomas Cook in Thrissur 76%.

76% of the respondent doesnt have any association with particular
forex company while 24% of the respondent have tie up with
foreign exchange company.
22% of the respondent in Trissur district has used services of
Thomas cook forex while 78% havent used the services of Thomas
cook forex.
While told to rate the travel agency when compared to its
Competitors the travel agency got itself an average 6 on 10.
All the respondants are on the positive note of using the services of
the travel agency in the future.

9.2 SUGGESTIONS
The Foreign Exchange Market has been growing at a
rapid pace, reflecting a general growth in the volume of cross
boarder transaction, trade, and

investment.

When the

government takes the decision of removing the restriction on

multi brand investment, there is a chance of foreign investment
in Thrissur Districts. Even now those districts have the
potential for foreign exchange activity.
Now there are a lot of players are in every urban and semi urban
areas. So we should more in accessible to customers. Thomas
Cook India Limited [TCIL] has to start more than 2 branches in
major towns in Thrissur.
Thomas cook may conduct a marketing program such as help
desk in small districts of Thrissur about their new offers and
products which can attract the travel agents of that area.
Thomas

cook

can

develop

customer

relationship

management(CRM) program and use it for getting aquainted

with its frequent fliers and other service users. Customer in
todays marketing world

looks for personalized attention.

Therefore any CRM program will provide a competitive edge to

the organization. Thomas Cook could use CTM as a base line
for developing CRM program. By extracting enormous data
stored in CTM, it could prepare a separate list of most frequent

service users. Depending upon the service used some discount or

any kind of favour could be provided to them.
More no of people are needed inward remittance and currency
exchange services. Very less people are prefering the travelers
cheque. By considering the Tourism opportunities of the
Thrissur multicurrency card has to be popularized.
Increase the awareness level of the Thomas Cook in the Whole
Sale and Retail Customers especially the service wise and
product wise. Brand advertisement has to reach the mind of the
customers in all the areas.
The development of leisure team of Thomas cook in Trissur can
increase the business of leisure travel as well as the forex
business.
Respondent were very keen to participate in survey as they are
eager to let the agency know about the services rendered and
also to give in their suggestions. Therefore these kind of surveys
should be continued in order to get a feedback from travellers
directly.

9.3 CONCLUSION
The nature of business is changing because of the globalization and
flow of technology. Because of that the Foreign Exchange Business
has also very good opportunities in the emerging economy like India.
Finding the potential market and accessible to the customers by
providing very good services essential to success in this field.
The project on A Study of Consumer Awareness Of Foreign
Exchange Services with special reference to the Various Forex
Services Provided By Thomas Cook India Limited reveals the market
details of Forex Business.
Thomas Cook (India) Limited is one of the oldest and most trusted
travel agency celebrating its 130 years of world-class service in India,
and the Corporate travel division is the backbone of the company.
Consumer awareness is considered as one of the important factors as
far as Foreign Exchange Company is concerned. Being a company in
the service industry Thomas Cook should give more importance to the
consumers and their awareness level. As we all know the golden word
of management is Consumer is the King. Consumer is the only
revenue source for a company. Being a giant in this business Thomas
Cook has a prosperous future ahead. The brand image itself is an
important advantage for the company. So satisfying the consumer
must be the pivotal function of the company.

APPENDIX QUESTIONNAIRE

Questionnaire Survey
A study on Consumer awareness of foreign exchange services provided by Thomas Cook.

Name
Address

Contact Number*
Contact E-mail*

Professional Details:
Name of the Organization*
Designation*

1. You undertake the following

Domestic

International

both

2. How many international tour operation have you conducted in last month?
< 10

10-50

50-100

3. Are you aware of the various Foreign Exchange services available?

Extremely aware
Not at all aware

Slightly aware

Moderately aware

>100

4. Among the various options below, which are the Foreign Exchange Services you are aware of
Travelers Cheques

Foreign Currency notes

Drafts

SWIFT Transfer

Prepaid Travel card

5. From which source you came to know about these services?

Prospectus

Brokers

News Papers/Magazines

Others

Friends/Relative

6. From the below options which are the various Foreign Exchange services you have earlier used
Travelers Cheques

Foreign Currency notes

Drafts

SWIFT Transfer

Prepaid Travel card

7. From the below options which type of Foreign Exchange Service you feel particularly good
(SelectOne)
Travelers Cheques

Foreign Currency notes

Drafts

SWIFT Transfer

Prepaid Travel card

8. What is the priority while selecting the type of Foreign Exchange services?
Safety
Swift

Speed

Liquidity

All

9. Are you aware of the RBI Regulations regarding the usage of foreign Exchange services?
Extremely aware
Not at all aware

Slightly aware

Moderately aware

10. Do you have associations with any of the foreign exchange service Providers?
Yes

No

11. Are you aware of foreign exchange services provided by Thomas Cook?
Yes

No

12. Have you ever used the foreign exchange service of Thomas cook?
Yes

No

13. Are you aware of the Multi Currency Card launched by Thomas Cook?
Yes

No

14. Are you aware of the Swift/Telegraphic Money transfer services provided by Thomas Cook?
Yes

No

15. Rate Thomas Cook on a scale of 10 when compared to its competitors

_____________________________________________________________________

BIBLIOGRAPHY

BIBLIOGRAPHY

This project was completed with the help of some secondary sources
which are mentioned below:
1. Tourism Statistics at a Glance, 2012. Ministry of Tourism
Government of India
2. http://incredibleindia.org/Tourism_Stastics2012.pdf pg 15
3. www.wikipedia.org/wiki/Foreign_exchange_market.
4. www.thomascook.in