### **Key Strategic Developments (Nov 2025 Focus)** #### **1. Financial Services & Forex Innovation** - **Strategic Shift in Forex Strategy**: Management has clearly stated that zero mark-up and zero currency exchange models are unsustainable. The focus is now on **margin preservation**, not GMV growth, especially in foreign exchange. - **Customer Segmentation**: - **Holiday Segment**: Served via the **Borderless Prepaid Card** (multi-currency with 12 currencies). - **Students**: Targeted with the **Study Buddy Card**, offering free airport lounge access, global SIM, ISIC, and zero ATM withdrawal fees. - **Corporate Clients**: Served by the **FX Enterprise Card**, India’s first eco-friendly prepaid forex card. - **Ghar pe Forex**: Reinforced through ultra-fast doorstep delivery via **Blinkit** (available in Delhi, Mumbai, Bangalore, and expanded to Hyderabad, Pune, Chennai—pan-India rollout planned). - **Technology Integration**: Partnership with **Google & Visa** made it the **first forex card provider in India to enable contactless cross-border payments** via wearable and digital wallets. - **Omnichannel Forex Reach**: Serves over **1 million retail customers annually** via 125+ physical stores (69 cities), 23 airport counters, website, app (FX Now), and **WhatsApp-based forex services**. #### **2. Digital Transformation & AI Leadership** - **Dhruv.ai & TravelOne**: - Launched **TravelOne & Dhruv.ai**, a first-of-its-kind **AI-powered, multi-modal, multi-lingual generative AI platform** for corporate travel. - Allows voice- or email-based touchless bookings (flights, insurance), real-time policy enforcement, sentiment-aware support, and 24/7 resolution. - Developed in collaboration with **LTIMindtree**, **Voicing.AI**, **SOTC**, and **Fairfax Digital Services**. - Already achieving **56% touchless transactions** in the fiscal year. - **Self-Service Ecosystem**: - **Customer Self-Service App** enhanced for **MICE clients** (self-registration, documentation, invoice access). - Dedicated **MICE Corporate Service Portal** launched for group management, invoicing, and notifications. - **Digital First Strategy**: Emphasis on migrating from B2B2C to **direct B2C digital platforms**, enhancing self-service, reducing turnaround time (TAT), and improving customer experience. #### **3. Travel & Destination Management Excellence** - **Geographic & Segment Diversification**: - **International Operations**: Contribute **94% of Q2 FY26 revenue**. - Key revenue contributors: **Asian Trails (46%)**, **Allied Tpro (32%)**, **Desert Adventures (11%)**, **Private Safaris – both Southern and East Africa (6% each)**. - **Performance Highlights**: - **Southern Africa Safaris**: 38% YoY sales growth (Q2 FY26) due to peak season and upselling. - **East Africa**: 12% YoY growth, supported by India and USA demand. - **India’s inbound DMC (TCI)**: 21% YoY turnover growth, serving top markets – UK, USA, France, Germany, Japan. - **MICE Leadership**: - Served **570+ MICE groups** in Q2, including events with 500–1,000+ delegates. - Exclusive ACT partner for **India’s 38th National Games**, managing 20,000+ participants, 67,000 room nights, 610,000+ meals. - Positioned as a global leader in **sports and incentive travel**, partnering with **Cricket Australia**, **Malaysia Aviation Group**, **Sabah Tourism**, and the **Moscow Project Office**. - **Expansion**: - **Van Tours** launched: Premium chauffeur-driven service allowing customizable itineraries for small groups. - Opened **four new leisure travel outlets** (Davangere, Kanpur, NCR, Kozhikode) and **six new franchises** across Tier 2–3 towns. #### **4. Leisure Hospitality & Resorts (Sterling Brand)** - **Brand Positioning**: **Sterling** is the company’s leisure hospitality arm, with **61 resorts** as of FY25 (up from 48), spanning 17 Indian states. - **Performance Metrics**: - **Occupancy**: Improved from **69% to 75%** (FY25). - **F&B Revenue Growth**: Up 16%, with increasing in-house guest participation. - **TripAdvisor**: Average rating improved to **4.61** (from 4.57 YoY); **25 Sterling resorts ranked #1** in their location, **65% in Top 5**. - **Expansions**: - **Sterling Puri**: Expansion by **46 new suites** (increasing capacity to 167), with revenue expected from Q3 FY26. - **Sterling Kodai Valley**: Added **32 suites** (to 120), full impact from H2 FY26. - **Sterling GK Exotica, Dehradun**: New boutique business-cum-leisure property. - **Strategic Focus**: **Asset-light model** via management contracts (77% portfolio); de-flagged 8 lease resorts; added 16 management-contract resorts. Focus on **upper mid-scale and upper upscale segments**, with **average room rates nearly doubled** (₹3,000–3,500 pre-COVID to ₹6,200 in 2025). #### **5. Revenue Diversification & Competitive Strengths** - **Margin & Efficiency**: Operating at **~15–16% gross margin**, supported by: - **Group purchasing power** (Allied Tpro, Asian Trails, SOTC, Thomas Cook) for bulk deals with airlines/hotels. - **Technology-led TAT reduction** in a manual-intensive industry. - **New Models**: - **Service Capital**: Core differentiator combining skilled employees, training systems, digital tools, and human-centric service protocols. - **Revenue Streams Beyond Travel**: **DEI** expanding in Asia via partnerships with **LEGOLAND Shanghai**, **Studio City Macau**, and **Ocean Park Hong Kong**. - **DEI Innovations**: - Introduced **WeC platform** with gesture-triggered cameras, facial recognition, robotic arm capture, and selfie kiosks. - Launched **video-capture tech** and **pre-sold photo bundles**, growing e-commerce. - Exploring **SaaS-based non-operative model** with Hummingbird platform. #### **6. Market Position & Expansion Strategy** - **Geographic Focus**: - **Global Leadership in Forex Cards**: Top issuer by volume, serving banks, forex agents, and millions of travelers. - **Saudi Arabia**: Strategic focus—launched 3 locations, with Qiddiya (Six Flags) contract signed. - **Southeast Asia**: Revived through **Universal Studios and Disney** reopenings, with strong performance in China and the Maldives. - **Domestic Strategy**: - Expanding in **Tier 2/3 cities**—Madurai, Bokaro, Dehradun, Karwar—with a **first-mover advantage** in emerging destinations like **Ayodhya and Malampuzha**. - Targeting **hybrid (business-bleisure) travelers** with curated offerings. - **Brand Portfolio**: Manages **16 key brands**, including Thomas Cook, SOTC, Sterling, TCI, Allied Tpro, and Desert Adventures. --- ### **Financial & Market Highlights (2025)** | Metric | Performance | |--------|-------------| | **Total Operating Income** | ₹82.8 billion | | **Profit Before Tax (PBT)** | ₹3.8 billion | | **Return on Equity (ROE)** | 12% | | **Travel Segment Revenue (Q2 FY26)** | ₹16,891 million (6% YoY growth) | | **Sterling Resorts Portfolio** | 61 resorts, ~3,254 rooms | | **Guest Occupancy (FY25)** | 75% | | **Corporate Travel Non-Air Business** | 93% of bookings; grew 15% QoQ |