BRM PROJECT REPORT (Primary Data) on

Impact of Foreign Exchange Rates on Tourism

Industry

UNDER THE GUIDANCE OF

Prof. Tejas Fadia

Submitted by Group Number 10:

Name

Roll No

Garima Agrawal

FM201

Ashish Gupta

FM211

Deep Ahluwalia

FP234

Jalpan Shah

FP253

Virag Shah

FP254

Neha Talreja

FP256

ACKNOWLEDGEMENT
We take this opportunity to express our deep and sincere gratitude to Prof. Tejas
Fadia for his valuable guidance and encouragement in implementing the
knowledge gained through lectures in the form of a project. It is because of his
support that we could synchronize the efforts in covering the manifold features of
the project. We acknowledge the infrastructural support provided by the
organization.
Finally we are thankful to all the members of the organization and friends who
have given their full support in collecting the required and continuous help during
the preparation of the project.

INDEX
Sr. No.

SR
NO

Title

Page no.

Primary Data Collection

Detailed transcript of an interview

Analysis of the interviews

Variables

13

NAMES

DESIGNATION
OF PERSON

PLACE OF
WORK

DAY OF
MEETIN

TIMIN
G
4

G
1.
2.

Agent

Super Air Travels Pvt

Ltd

Sunday
(25TH Jan)

2 pm

Agent

Ujala Travels Pvt Ltd.

Saturday
(24th Jan)

6pm

Manoj Vasani

Agent

Destination365 Travels

Saturday
(7th Feb)

6pm

Darpan Patel

Agent

Synergy Tours And

Travels

Sunday
(25th Jan)

4pm

Piyush Jawkar

Agent

Merry Go World
Travels

Saturday
(24th Jan)

8pm

Rinkesh
Ajwani
Umesh
Agrawal

3.

4.
5.

Primary Data Collection

Interview Transcript
5

Person Interviewed:
Name: Mr. Rinkesh Ajwani
Day and Time of interview:
Profile:

Name of the organization

Super Air Travels Pvt. Ltd.
1)Approximate percentage of people opting for international holidays?
75%
2)Does increase/decrease in foreign exchange rate affect the number of foreign
tourists/travelers?
yes, it does affect a little, say 20-25%,Because my client base includes a portion
who are very price sensitive hence these people are reluctant to take a foreign trip
when the exchange rates are on a high
3)How do you keep a track on change in foreign exchange rates?
Newspapers, internet, forex app
4)How do you hedge foreign exchange fluctuations? What all methods do you
use for hedging?
Mostly forward rate contracts, or by leading/lagging
5)How do you manage/set your long term travel package prices?
The prices are set keeping the forecast trend in view plus in some cases upfront
payment is required by which the loss(if any) gets covered
6)How much does a foreign exchange rate impact pricing decision?
A little bit, once prices are fixed revisions are less likely, as the customer gets
disappointed with the sudden surges.
7)Are the prices of long term travel packages subject to foreign exchange rate
fluctuation?
No, unless major fluctuations are expected, no risk is passed on to the customer
8)Approx how many customers book 6 months in advance?
6

(%)
12-15%
9)Approx how many customers book 2-3months in advance?

(%)
Around 60%, that is majority of the bookings are done 2months in advance
10)If Forex rate appreciates do you refund them the change amt?
No, we dont have any such policy
11)At the time of ticket booking,do you EXPLICITLY tell the customer that
the prices are dependent on foreign exchange rates nd it might
increase/decrease by the day of journey and you can be charged extra etc?do
you have any such policies?
No we dont have any such policies.
12)Most preferred countries for trips/holidays?
Thailand, Singapore, Malaysia, US, Australia , NZ
13)Do you have a foreign customer base?
(do people from other countries contact you for booking trips to india and within
India)
Very few, we dont advertise anywhere so I is only through the word of mouth that
people have contacted from overseas
14)If yes, How do you charge them? In foreign currency or Indian currency?
US Dollars
15)Do you also provide assistance to customers in money changing? if
yes,please state the way.

Yes through travelers cheques and forex cards.

Analysis of the Primary Data

7

Approximate percentage of people opting for international holidays

60
50
40
30
20

percentage

10
0

Travel agency

This is how increase/decrease in foreign exchange rate affect the number of foreign
tourists/travelers.
90
80
70
60
50

percentage

40
30
20
10
0

Yes

No

Travelers usually travel for different reasons like Foreign Trip,Business meetings,Study tours,Medical
reasons etc.
So in most of the cases except for Foreign Trip, increase or decrease in exchange rates(prices) does not
affect the number of travelers.

This is how they keep a track on change in foreign exchange rates

Different tourism agencies keep a track on exchange rates through different mediums such as,
Through newspapers,
Online portals & websites,
mibor rates via media,
Internet,news channels
interbank exchange rates
Via money exchange (banks)

Methods used for foreign exchange fluctuation hedging

80
70
60
50
40
30
20

percentage

10
0

Axis Title

Mostly all the travel agencies use more than one method for hedging. But forward contracts and Future
currency options are the most widely used methods to hedge against exchange rate fluctuations.

This is how they manage/set long term travel package prices.

By anticipating the future prices and the demand for season and non-season based on the previous records
and also by adding the anticipated forex fluctuations,
By keeping the forecast trend in view plus in some cases upfront payment is required by which the loss(if
any) gets covered
Prices are also dependent on the seasons, competitors price , accommodation rates etc.

How much does a foreign exchange rate impact pricing decision?

Increase in exchange rates makes the travel packages more costly,but majority of the travel agencies do
not revise the prices once they are fixed.

Are the prices of long term travel packages subject to foreign exchange rate fluctuation?
90
80
70
60
50

percentage

40
30
20
10
0

Yes

No

Majority of them agreed

Wherein Super Air Travels stated specifically that unless there is a major fluctuation in exchange rate,no
risk is passed on to the customers

10

Percentage of customers book tickets 6 months in advance:

80
70
60
50
40
30
20
10
0

0-20

21-40

41-60

61-80

81-100

Percentage of customers who book tickets 2-3months in advance:

80
70
60
50

percentage

40
30
20
10
0

0-20

21-40

41-60

61-80

81-100

11

Do they have any policies to inform the customers beforehand that the prices are dependent on
foreign exchange rates nd it might increase/decrease by the day of journey and you can be charged
extra etc?
100
90
80
70
60

Percentage

50
40
30
20
10
0
Yes we do it for long term 6mnths prior booking but we have a margin

Most preferred countries for trips/holidays

People travel abroad for different purposes & destinations change accordingly.
Most preferred countires for family and personal tours are Singapore, Thailand, Malaysia, Dubai
For education purposes the preferred countires are mainly UK, USA, New-Zealand & Canada
For business purpose the most preferred countires are Spain, France, Italy, Hongkong, UK & USA

Assistance to customers in money changing:

12

80
70
60
50
40
30
20
10
0
Prepaid Forex Cards

Travellers Cheques

Foreign Currency Notes

No

Variables
Dependent variables

Tour package prices,

Air fare,
Convenience

Independent variables

Foreign exchange rates,

Increase in number of travel agents,
Trade Fairs,
Events

Name
Age
Gender
Profession
Do you travel abroad?
How often do you travel?
For what all purposes you travel abroad?
Do you know what are foreign exchange rates?
What do you prefer? Cheaper air fare or more convenicnce?
How many months before you book your tickets?
What are you favourite holiday destinations abroad?
13

Are you aware about the fact that foreign exchange fluctuations can increase your tour package prices?
Would you still travel( not in case of urgency) if the tour package prices goes above the limits set by you?
Which option do you prefer while travelling abroad?(foreign currency notes/travelers cheques/forex
cards)

14