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Part A: Case Story

1. 0 Background of Travel & Tourism Industry

Tourism industry will be the second largest fastest growing industry in Malaysia after
manufacturing. This industry comprises of travel and tour agencies, hotels. As per current
status, there are 5559 been registered under Ministry of Tourism and Culture Malaysia. Oscar
Holiday is one of the travel agent that has been registered under the ministry.
It has been 10 years since they have been officially registered in the board of tourism and
declared as one of the fastest growing travel agent in Malaysia.
The tourism sector coming together of various suppliers of services to offer people a
complete tourist experience. Travel agents and tour operators play a vital role in the
promotion of tourism. In regards to this, we have chosen this well known travel agent in
Malaysia who started up the business in a small scale and now with their continuous effort
and hard work they have operating in a very big weighbridge.

1.1 Introduction of Oscar Holiday


Oscar Holiday is a unique and fast growing travel company, having a corporate office in
Kuala Lumpur, Malaysia. It was incorporated in 2007 to render comprehensive travel
agencies all over the countries. Oscar Holiday has capitalised its dynamism and wellbeing,
towards differing demands to their customers.
They are proud of their achievements that they have made throughout all these years. They
have started up with 5 staff including 2 directors at one of the shop lots at Jalan TAR, Kuala
Lumpur. Now, after 9 years of hard work they have now operating in a big scale whereby
they have shifted from a shop lot office to a bigger office space at Menara Multi-Purpose,
Jalan Munshi Abdullah, Kuala Lumpur. They have made through with dedicated and highly
experienced staff who have immensely contributed to their consistent growth and the staff are
well trained with full IATA/UFTA qualifications who also now can be awarded as an
expertise in providing the full range of travel and its related service making.
Their main travel partners include extensive number of established giants in the leisure
industry across the globe. This success today is also a reflection of their long-standing values
in providing superior customer services, innovation and their ability to source and provide
value for money travel products to all of their customers. The staff meet the needs, the tastes
and of course the budget of the customers. Their services are efficient yet friendly,
professional yet personalizes, qualitative yet good for value for money.
The world now is continuously moving forward towards a demanding phase that revolves
around travelling has become everyones passion. Based on that, they are providing a very
good customer services and never failed to have a repeated customer and not to forget a new
one as always.

1.2 Introduction of Oscar Travel Services


Oscar Travel Services Sdn Bhd is another milestone for them. Established on
1st March 2016 as a GSA for SriLankan Airlines.
A general sale agent (GSA) is a sales representative for an airline in a specific country or
region. Typically, the GSA is responsible for selling all products of the airline in its region
which includes flight tickets and cargo space. A GSA will typically sell the product of
more than one airline.
Airlines normally use a GSA in areas that it does not operate to or from, allowing them to
have a sales presence in a country at lower cost than opening their own offices in short
term. It may also use their services because the GSA has historical ties with travel and
cargo agents which will be too time consuming for the airlines to build itself.
The GSA receive a commission of around 3-5% on all tickets and unit of cargo space hold
in the region that it represents.
All cost related to running the GSAs business are the responsibilities of the GSA
including insurance, rent, general office expenses and any travel within the country or
region needed to promote and sell the product.
And now Oscar Travel Services Sdn Bhd has been appointed as GSA for SriLankan
Airlines in Malaysia. This shows how far Oscar Holiday has been achieved throughout
this 9 years of services in travel and tourism industry.
This airline is Sri Lankas premier airlines and also one of the largest in the world. The
team has gone through many issued regardless positive or negative during the time they
have been appointed as GSA in Malaysia. There a several process which has been set up
in order to obtain the title of GSA. Start from tender, participation, getting into the
tenders, and few other process. This will be our main focus in this case study.

1.3 Introduction of SriLankan Airlines


SriLankan Airlines, the National Airline of Sri Lanka, is an award winning carrier with a
firm reputation as a global leader in service, comfort, safety, reliability and punctuality.
Launched in 1979, SriLankan is currently expanding and further diversifying its wide
range of products and services in order to drive the country's on-going boom in tourism
and economic development.
The airline's hub is located at Bandaranaike International Airport in Colombo, providing
convenient connections to its global route network of 60 destinations in 33 countries in
Europe, the Middle East, South Asia, Southeast Asia, the Far East, North America and
Australia.

Board of Directors (HQ)


Mr. Ajith N. Dias Chairman
Mr. Rakitha Jayawardena Director
Colonel Sunil Peiris
Executive Director HR
Mr. Joseph. M. S. Brito Director
Mr. Mahinda Haradasa Director
Mr. R. Chanaka De Silva Director
Mr. Niranjan De Silva Deva Aditya Director
Mr. Harendra K. Balapatabendi Director
Chief Executive Officer - Capt. Suren Ratwatte

Board of Directors (KUL GSA)


Mr.Johnson Francis - Director
Mdm.Glory Marthandan Executive Director
Country Manager:
Mr.Dilshan Kudahetty to run the station with assistance of appointed GSA staff
Station Manager Airport
Ms Reminderjeet Kaur Airport Manager, SriLankan Airlines KUL
Management Staff
Mr.Malkit Singh General Manager
Ms.Sujithra Manoharan - Manager
Sales & Marketing Team
Mr.Sivakumar Muthu Senior Sales Executive
Mr.Wan Mujahid Mohd Nordin Sales Executive
Mr.Syed Shauquan Sales Executive
Mr.Balindra Sales Support
Airport Staff Ground Handling
Mr.Vinoth Jagarao Senior Supervisor
Mr.Kamarul Hisham Supervisor
Mr.Thivagar Customer Services
Ms.May Lay Chin Customer Service
Front Desk Staff
Ms.Jasmariawati Jaslan
Ms.Kalaivany Gunasegaran
Ms.Nur Atiqah
Accounts Department
Mr.Faizal Mohd Sabran Account Executive
Ms Renugah Account Exceutive

1.4 Products

Fleets

SriLankan Airlines currently has an all-Airbus fleet of 21 modern, sophisticated aircraft


which includes:
Thirteen A330 (long haul)
Eight A320/A321 aircraft (medium haul)
Airbus A330 300
All new A330-300s come with a range of novelties where the ease of modern air travel
harmoniously blends in with the uniqueness of Sri Lanka. With cabins illustrated by
motifs featuring the diversity and beauty of the islands flora and fauna, they feature the
latest amenities.
Enjoy your flight and relax in greater comfort on-board in our enhanced Business Class,
designed to pamper. With seats that transform into full flat beds, extra space, on-demand
entertainment and direct aisle access, our new and enhanced Business Class makes you
feel right at home at 35,000ft.
Comfortable Economy Class sector provides a pleasant flying experience, and lets the
passengers relax to the latest movies on-demand, while lavishing in the true SriLankan
Airlines hospitality that we are renowned for. With mood-lighting and in-seat power for
portable electronic devices across all classes passengers can also stay connected and be
productive throughout the flight with Wi-Fi and mobile phone connectivity. Surf the
internet, send an email, and make a call or text your friends all while you fly.
Airbus A330 - 200
With SriLankan Airlines, long trips are meant for relaxing. From the moment passenger
board till land safely, its all about enjoying every comfort a journey could possibly bring.
Our A330 aircraft come with comfortable seating, entertainment options and the calming
ambience. Its all about happy flying.
Airbus A320/A321
With easy reclining seating and a relaxing ambiance, our A320 aircraft operating short
and medium-haul flights are the very embodiment of tranquility. The Airline currently
operates six A320 aircraft and two A321 aircraft on its short and medium-haul routes
operations.

SriLankan Holidays:
SriLankan holidays, it is the holiday division of the airline, which encourages travel from
and to Srilanka and also all directions throughout entire network of airlines. Its partners
having several top hotels, tour machinists and other sightseeing related associations to
help the travellers an extensive selection of time off opportunities with an allencompassing concept, which consists of customized packages. Srilankan holidays
endorses travel for musical concerts, shopping festivals, sporting events and former
activities, and it has premeditated agreements with a no of regional sightseeing bodies to
encourage tourism from and to a specific destination. It won an esteemed title called "
Best Outbound Tour operator" at the awards of presidential for tourism and travel in the
years of 2008 and in 2009.

SriLankan Air Taxi


Sri Lanka is a land that is truly blessed by Nature. Its beauty unfolds in myriad ways and
with so much to see, time is precious and travelling on land can get a little tedious. So
why waste time on the road when you can simply hop on a Sri Lankan air taxi and get a
head start on your journey?
Our internal flights in Sri Lanka operate from a dedicated domestic terminal at the
Bandaranaike International Airport and flies to Colombo City (Waters Edge, Kotte),
Bentota, Dickwella, Koggala, Kandy, Castlereagh, Sigiriya, Batticaloa and Trincomalee.
Luxury charter and scenic flights across the island are also available upon request.

Fly comfortably in a Cessna 208 Caravan Amphibian or Cessna 208B Grand Caravan
aircraft and enjoy breath-taking sceneries of this beautiful island from the air. Fly with us
and be enthralled. Serenade your senses with a mesmeric birds eye view of this paradise
isle and fall in love all over again. Flights are operated by our codeshare partner
Cinnamon Air.

1.5 Market Overview & Current Market Overview


Malaysia is currently experiencing an extreme slowdown in its economy due to the
daily weakening of the MYR and the possible causes are as follows:

Drastic drop in the world fuel price and petroleum is the largest sources of
revenue for Malaysia
Declining foreign investment in Malaysia due to loss of confidence in the
Malaysian government
Political stability due to alleged corruption by the Malaysian government

Current Market Trend

Due to budget constraints most passengers prefer to travel on low cost carrier
Holiday makers prefer short haul destinations e.g Indo Cina, Thailand, Bali

Younger generation and IT savvy passengers prefer to buy their tickets and
ground packages on-line
Cost conscious corporate companies also book on low cost carriers for their
business trips, incentive trips /ground arrangements.

1.6 Customers

Most preferred carriers


Workers to India/CMB/Middle East
Business Travelers
Tour based agents
Foreign Student

2.0 Source of Data


Data can be defined as the quantitative or qualitative value of a variable. Data is plural of
datum which literally means to give or something given. Data is thought to be the lowest unit
of information from which other measurements and analysis can be done. Data can be
numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to get
information from the data one must interpret it into meaningful information. There are
various methods of interpreting data. Data sources are broadly classified into primary and
secondary.

2.1 Data collected during the tender been given


a) During tender been offered

Interviews the team inclusive of 4 people did some research in order to obtain the
data. They had interview session with pioneers of the airlines to get the correct advice
on how to run the airlines and what would be the best way to ensure handling of
airlines will be smooth, to get to know more ideas on how to obtain and attract the
board of committee of SriLankan Airlines during interview session they had with all
the participants, the travel agents on the on sales and marketing, other travel agent
who has got GSA for other carriers to ensure what is the process of getting into
tenders and interviews and etc. During this time, Oscar Travel Services had gone thru
many obstacles as well. There are people who involved in the interview session who
had given some false news as well so that they will not win the bidding but Oscar
Travel Services with their market research and influences would be able to collect the
correct date during the interview session.

b) During interview from students to directors


Interview session held on 27th Oct at 15th Floor of Menara Multi-Purpose where Oscar
Holidays located. 3 of us managed to get in the appointment with the Executive
Directors Madam Glory at around 1500hrs local time. She managed to give us full
interview session from the beginning how do they involved till the final how do

they achieved to get the tender. Madam Glory has experienced in the travel and
tourism industry for almost 15 years.

a) During tender been offered

Internet & Social Media this covers surveys and web date collection method. This
have been the most common data collection methods in the world, in particular,
Internet experiments, online and email surveys, and web crawling and other tools for
collecting data.
The team has done a lot of research on SriLankan Airlines through internet, they have
gone thru each and every website which talks about SriLankan Airlines to ensure their
future is secured. The team wish to have a good product which will ensure to provide
profits to both parties later. This is because every business first motive will be revenue
and profit generation. Regardless any business without profit they cant run the
business for a long term. Same goes to Oscar Travel services. They also checked the
review which they got from passengers on SriLankan Airlines products time to time
so that they can grow with them together.
b) During the students choose the company to be the focus of the case study
We have gone through the websites which talks about Oscar Holiday and what is their
current activity and the achievement they have made throughout the years. We also
checked the review given by the passengers on website about Oscar Holidays. We also
found that they have strength and weakness in running the business. Hence we have
decided to choose the company so that it will match our project.
3.0 Entering process
Minimum Eligibility:
1. Should be a locally registered firm/company and possess trading license as per
local laws.
2. Should have experience in the Passenger air transportation. Preference will be
given to parties having a proven track record in the relevant field.
3. Applicant should not be an IATA approved Passenger Sales Agent IATA
Passenger Sales Agents may apply subject to relinquishment of their
accreditation prior appointment.
4. Owners, directors / shareholders should have not been involved in default /
bankruptcy proceedings or had a financial interest or a position of
management in a defaulted IATA or GSA/GSSA agency or any other
firm/Company.
5. Office premises should be preferable on ground floor and easily accessible
to general public and with ample parking space.
6. Should have sufficient qualified staff with ability of selling international air
transportation.

7. GSA will be required to allocate 0.5% of territorys revenue for brand and
advertisement.
8. The applicant should have minimum paid-up capital / investment required
under local laws. Balance Sheet and Profit & Loss Accounts not older than six
months at the time of application, duly audited by a Chartered Accountancy
Firm will be required at the time of application.
9. Mutually agreed commission or service charges will be paid to the GSA.
10. Validity of GSA Agreement will be for the period of three years. Bank
Guarantee will be required upon appointment. Other terms and conditions of
the Agreement would be negotiable.
11. Companys legal documentation and profile must be submitted along with
the application.
12. The firm/company should be eligible for running the GSA business as per
local laws/PIA policy and procedure.

Applicants Short Listing:


o Complete applications along with required documents received by the due date
o will get fair consideration.
o Applicants will have to meet the minimum laid down criteria to be shortlisted.
(minimum laid down criteria list is provided below):
o Applicants meeting the minimum benchmarks will be shortlisted for further
processing.

Financial Evaluation Criteria:


o Financial statements including annual balance sheet and Profit & Loss
statement for at least 2 years to be evaluated.
o These documents must be audited accounts by a chartered accountancy firm
and in English. Where accounts are not in English, a certified English
translation must accompany the Accounts sent for evaluation.
o While evaluating financial position of the applicants, the following will be
considered.
Capital Structure
Liquidity position

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