How Thomas Cook India & SOTC's business associate program beat the Covid odds

In this interview, Adgully delves into the strategies and innovations that allowed Thomas Cook India and SOTC Travel to thrive and provide employment opportunities when many other businesses were struggling amidst the pandemic. Abraham Alapatt, President & Group Head - Marketing, Service Quality, Value Added Services & Innovation, Thomas Cook India, sheds light on how the Travel Business Associate Program was able to adapt and expand, introducing forex services during the COVID-19 lockdown and achieving remarkable growth. Furthermore, he discusses the unique aspects of the TBA model and the role of “phygital marketing and distribution” in their business. As a leader in the travel industry, Abraham Alapatt shares insights into the future of travel business associates and the evolving landscape of the travel industry post-pandemic.

Could you elaborate on how Thomas Cook India & SOTC Travel's Business Associate Program was able to thrive and provide employment during the pandemic when many other businesses were struggling?

Many organisations, particularly small and medium-sized enterprises (SMEs) and sole proprietorships, were forced to close their doors during the pandemic. This resulted in significant job and income losses. In the initial stages, we leveraged our Forex services, which had resumed operations earlier than the travel industry due to their essential nature.

Our primary goal was to assist our existing agents in restarting their businesses. Moreover, as TC and SOTC emerged as industry leaders who remained active and visible throughout the pandemic, we became a sought-after partner for numerous prospective collaborators. They approached us to expand our network, offering a valuable income opportunity to those adversely affected by the pandemic.

The pandemic forced many businesses to adapt quickly. Could you explain the key strategies employed to streamline the Travel Business Associate Programs and introduce forex services during the COVID-19 lockdown?

Given the challenges around travel (that the TBA network were focused on till we went into the pandemic) we realized that the dependence on travel alone was a challenge to attract new partners and even to retain our existing partners.

Given Thomas Cook’s undisputed leadership and heritage in the Forex space, we saw a natural opportunity to:

Restart business earlier to the growing need for FX for students as travel restarted
Expand the business and earning opportunity of our partners with the addition of the FX service to the portfolio they could offer and
Given the rapid acceleration in online/ mobile solutions we had accomplished at TCIL during the lockdown, we could now offer a much easier, integrated, secure, compliant solution for customers coming via TBA partners to fulfill their FX requirements

The success of the Business Associate Programs is quite impressive, with a turnover of over Rs 45 crore for 2023 (Jan-Sept), which is over 2X growth from 2022. What factors do you believe contributed to this success, and what sets your model apart?

We believe there are four major reasons why the TBA model has appealed to our partners, helping us grow rapidly:

An opportunity to swiftly establish a business partnership with both TC and SOTC, two renowned brands that have maintained their undisputed leadership in the travel and foreign exchange sectors. Their positions were further solidified following the pandemic, as numerous smaller and less reputable players were forced to cease their operations.
We have kept our model asset/ cost light – with no investments required from potential partners in terms of hardware/ software, financial commitments, etc.
We offer partners total flexibility in terms of time, location and involvement. Partners can choose their own work hours, work from wherever they want and also decide if they simply want to pass on leads to our staff at TC/SOTC or be more involved in the selling process. Either way they get rewarded with commissions when the customers they refer to us travel or buy FX.
Last, but not the least, the simple, friendly technology solutions that we have made available to our partners to facilitate business.

It is mentioned that Thomas Cook & SOTC Travel business Associates are present in 47 strategic locations across 19 states. How do you ensure accessibility to a diverse clientele in such a vast network, and what role does “phygital marketing and distribution” play in this?

As indicated, we have a two-pronged Phygital support system in place to facilitate the partners who sign up:

Every TBA partner is mapped to a physical brand and person in a TC/ SOTC branch in the same city/ town as the partner operates. This person and branch become the partner’s base, offering the partner reassurance and support as required for training, lead conversion, relationship building, etc.
The TBA partners are also offered access to our B2B network tech platforms (Holiday Mate and FX Mate for Holidays and FX respectively) to allow them to access, monitor and manage their business

The shift to digital has been prominent in many industries. Can you provide insights into how Thomas Cook is utilising “phygital marketing” and what percentage of your sales revenue comes from digital channels?

As the oldest operating travel services brand in the country and (between TC & SOTC) India’s leading Integrated travel services company, we had built a physical network spanning over a 100 cities in India.

To complement this, in 2015 TCIL also embarked on a serious e-commerce initiative, and after the acquisition of SOTC in 2015, extended this across SOTC too. As a result, both thomascook.in and sotc.in have evolved into comprehensive e-commerce platforms supported by well-trained contact centers. These contact centers cater to online customers, providing end-to-end solutions directly or with assistance in English and major Indian languages. Additionally, we offer a live video chat service, enabling customers to connect with our Travel Experts in real-time by scanning a QR code. Customers can also schedule a video chat at their convenience, allowing them to enjoy a near-physical experience with the convenience of a virtual visit.

Currently, approximately 25-30% of our leisure passengers choose to interact with us and make bookings through our digital channels. Our hybrid business model is based on the belief that India represents many diverse markets, each in a state of evolution. On one end of the spectrum, we have "pure brick" traditional or first-time customers who require end-to-end fulfillment through physical networks. On the other end, we have "pure click" customers who prefer a completely online experience without human interaction, feeling confident in managing everything themselves.

In between, we cater to various hybrid customers and first-time travelers who are at different stages of digital maturity. Moreover, considering the complexity, costs, and regulatory requirements, especially for Visas and foreign exchange, a robust Phygital model is the only viable approach to meet customer expectations and serve them the way they desire.

As the President and Group Head of Marketing, Service Quality, Value-Added Services & Innovations, you have played a pivotal role in this success story. Could you share some of the key challenges you encountered and the strategies you employed to overcome them during this journey?

Undoubtedly, the pandemic presented the most significant challenge I've encountered as a marketer. Almost overnight, our business vanished, and we couldn’t foresee recovery for nearly 2.5 years. During this crisis, our multifaceted strategy aimed at enhancing customer service and operational efficiency.

In response to the lockdown announcement, we swiftly empowered our sales and service teams with central dialer telephony and VPN access, allowing them to work from home while maintaining constant communication with our customers. We kept the helpline numbers unchanged for customers but leveraged technology for backend flexibility.

We established ongoing communication channels for our customers and vital stakeholders through regular emails from the Managing Director of both companies, providing reassurance. To promote positivity, we shared weekly updates on the Indian market and travel sector developments. Additionally, we created dedicated MICE and Leisure newsletters to keep our customers informed about the latest developments in the travel sector.

To ensure the safety and well-being of our employees, we organized free vaccination drives for them and their families.

For our customers, we organized a range of hybrid and virtual events, including a Travel Trivia Quiz, Lockdown Travel Awards hosted by Bollywood's Boman Irani, storytelling sessions with Marathi Cinema and TV celebrity Subodh Bhave, and activities like #Spiceupyourkitchen with renowned Chef Santosh Jori, Q&A challenges, and a world photography contest. These activities delighted our customers and maintained engagement. We also hosted virtual roadshows to showcase our unique deals and offers.

The constantly changing pandemic landscape required our sales teams to stay updated on travel norms, so we established a central knowledge repository to facilitate this.

In the case of our Foreign Exchange business, it was considered an essential service and allowed to operate despite the pandemic's restrictions. The Foreign Exchange team resumed services in April 2020 and introduced innovations:

Set up a unique Virtual Branch model to implement contactless customer servicing.
Designed a digital interface for forex transactions and remittances, enabling customers to transact from their homes.
Operationalized a Corporate and B2B Booking Tool to expand reach and facilitate seamless transactions.
Introduced tech-enabled KYC for documents, ensuring compliance with regulations.

To rejuvenate the travel industry and instill confidence in concerned customers, we launched India's first travel safety standards program: the Thomas Cook & SOTC “Assured” Safe Travel Program. Developed in collaboration with Apollo Clinics, it covered all aspects of physical safety and provided mental and financial security for our customers.

Following the rollout of vaccinations, we upgraded the program to “TravShield”, which encompassed the following:

Contactless interactions during the sales and servicing stage, pre travel
Sanitised branches with safety protocols
Vaccinated Travel Advisors
Contactless payment options
Free Rescheduling & Cancellation options to reassure customers
Comprehensive COVID-19 Insurance Cover, including for Hotel & Home quarantine ( a first in India) in association with ICICI Lombard Insurance Limited.
24/7 Emergency Contact Assistance
24/7 Doctor-On-Call in association with Apollo Clinics
Local Transport: enhanced sanitising of vehicles, vaccinated/ COVID-19 Negative drivers
Hotels: quality hotel partners, sanitised and safe rooms, vaccinated/ COVID-19 Negative staff

The pandemic had far-reaching impacts on the travel industry. How do you see the future of travel business associates and the travel industry evolving post-pandemic?

As an employer, we have established and are currently scaling a pure variable “performance-based distribution network”. This network follows a simple hub and spoke model, aligning individual Associates with our local branches and equipping them with training, tools, and technology to create new customer and market opportunities. The key feature of this model is its reliance on personal connections and references, without fixed costs, resulting in a non-linear cost structure that allows for rapid scalability, especially in a post-COVID recovery period.

The TBA (Travel Buddy Associate) model is well-suited to the mindset of Gen Z, which values flexibility over security. It aligns with the trend of frequent job changes and the growing gig economy. Additionally, it emphasises equal opportunity and is tailor-made for self-made women entrepreneurs, housewives, individuals taking sabbaticals, or those constrained by domestic or family responsibilities. This model also accommodates retired individuals, small business owners, insurance agents, mutual fund distributors, social media influencers, and anyone seeking supplemental income sources with the freedom and flexibility to manage their time and leverage their own networks and customers to achieve financial goals. Importantly, this model does not require financial or technological investments, down payments, or security deposits and is backed by the reputation of the two most trusted names in the Indian Travel industry: Thomas Cook India and SOTC Travel.

The commitment of our network is a vital factor in the success of Thomas Cook India and SOTC Travel. We maintain a strong and supportive relationship with our Associates by providing them with the necessary training, tools, and technology. We ensure that they are well-equipped to succeed in their roles, offering ongoing support, guidance, and mentorship. The success of our Associates directly contributes to our overall success, and we are dedicated to helping them achieve their goals.

The diversification into forex services was indeed a bold move during a challenging time. This expansion was likely driven by the recognition of the changing needs and preferences of our customers. Forex services are essential, and the decision to offer them during the pandemic allowed us to continue providing crucial services even when many other aspects of the travel industry were on hold. It was a strategic decision to adapt to the evolving market conditions and meet the demands of our customers, further solidifying our position as industry leaders.

The outcomes of this expansion likely include a broader range of services offered to customers, increased revenue streams, and a strengthened position in the industry. Providing forex services also aligns with the trend of customers seeking a one-stop-shop for their travel and financial needs, making it a valuable addition to our portfolio. While the specifics of the decision-making process and outcomes would depend on internal factors and market conditions, it is evident that this diversification strategy has been beneficial for the organisation.