Thomas Cook (India), the largest travel company in India, has reported a strong performance in the quarter ended June 30, 2022. The Mumbai-based firm reported a profit before tax of INR 59 million as against a loss of INR 385 million in the previous quarter and a loss of INR 339 million in the first quarter of last fiscal year.
The company says its income from operations for the quarter stood at INR 2,979 million, as against INR 793 million in the previous quarter and from INR 443 million in the corresponding quarter last year. The company says that surge in profits was spurred by the rapid rebound across foreign exchange and business travel as well as the sustainable savings accruing from continuing cost management initiatives.
The company says it witnessed strong growth in sales across all lines of business in India. For instance, foreign exchange turnover grew by 39 pc QoQ representing a 66 pc recovery against the pre-pandemic levels. Similarly, corporate travel turnover grew by over 97 pc on a QoQ basis and an 87 pc recovery against the pre pandemic perod.
The company goes on to say that MICE sales grew by 7.5 times QoQ and a 44 pc recovery against pre-pandemic levels. It adds that it has a robust order book for the next two quarters of the year. In an encouraging sign, it says that despite inflated air fares, limited hotel inventory and visa challenges, leisure travel grew by over 4 times on a QoQ basis. While domestic travel sales grew by over 3 times QoQ; reaching 78 pc of pre pandemic levels, international travel sales grew by over 4.4 times in the quarter.
All the subsidiaries of Thomas Cook India have reported similarly strong performance in the quarter, says a press release. “Propelled by our twin focus on customer experience and technology, the group has staged strong growth this quarter. Our rapid turnaround as a group – with income from operations, growing 87 pc QoQ reflect the group’s rapid business recovery. By effectively reducing costs from INR 4,811 million to INR 3,260 million, we are also ensuring much greater productivity going forward,” says Madhavan Menon, Managing Director, Thomas Cook (India).
“The group’s strong performance in the quarter was led by Sterling Holidays, DEI, Foreign Exchange and Business Travel segments. With some of our overseas DMS units logging profits already and other units indicating a robust order book, we expect strong growth returning across the Group in the upcoming quarters,” he adds.
Thomas Cook says that its foreign exchange business turnover rose 39 pc in the quarter, while subsidiary Sterling Holidays Resorts saw its occupancy rise to 73 pc, up from 52 pc in previous quarter and also registered a 35 pc growth in its average room rent. In terms of travel segments, corporate travel rose 97 pc in quarter and is now 87 pc of the level in the corresponding pre-pandemic period. The company says it operated over 150 physical corporate groups of between 100 to 2500 delegates across India & international destinations like Goa, Hungary, France, Australia as part of its MICE activities. On the leisure travel front, too, Thomas Cook performed well, with passenger numbers rising by 208 pc QoQ.