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The Great Indian Traveller

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The Great Indian Traveller Indians prefer travelling abroad to holidaying in India. India has been identified as the second largest travel market in Asia. – PowerPoint PPT presentation

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Title: The Great Indian Traveller


1
The Great Indian Traveller
2
Indians prefer travelling abroad to holidaying in
India.
  • India has been identified as the second largest
    travel market in Asia.
  • Outbound travel from India in 2004-05 shows
    unprecedented growth with figures touching 7.5
    million - a growth of 20.
  • Liberalization in foreign travel allowance by
    government has been a major contributory factor.
  • As much as 76 of Indian vacation seekers propose
    to visit an international destination for their
    next holidays. (Thomas Cook - Readers Digest
    Study Nov 2006)
  • Switzerland, USA and Singapore have emerged as
    the top leisure destinations for Indians.
    (Thomas Cook - Readers Digest Study Nov 2006)
  • Delhi and Mumbai are the big power houses that
    contribute 70 of Indias outbound travel market.
  • Of all international travelers, 70 ranked
    sight-seeing as the most important reason for
    travel, while shopping was most important for
    61. Casinos, cruises, location shoots are the
    other attractions for Indians travelling abroad.
    (Thomas Cook - Readers Digest Study Nov 2006)

3
Overview of the Tourism Market in India
  • The total number of Indian outbound travellers
    this year is 7.5 million.
  • The Business Traveller (including Corporate
    Incentive Travel) comprise 50 of the total.
  • A little less than 50 will travel for leisure
    purposes.
  • The rest will fall under the categories like
    students, immigrants, etc.

Source The Economic Times July 10, 2005/SOTC
Report 2004
4
Indian Outbound Traveller a growing market
  • Outbound travel from India in 2004-05 showed
    unprecedented growth with figures reaching over
    7.5 million, which is higher than the number of
    foreign tourists entering India 4.5 million
    arrivals.
  • WTO predicts that Indian outbound traffic will
    grow to 50 million tourists by the year 2020.
  • Indians travelling abroad spent 1.4 billion US
    in 1999 which is forecast to grow to 3.9 billion
    US billion rupees in 2004.
  • Government of India has eased foreign exchange
    restrictions in the last two years. RBI
    regulations w.e.f. March 2004 permits Indian
    business travellers to carry up to US 25,000
    abroad.
  • SourcePacific Asia Travel Association.
  • Economic Times Intelligence Unit/ ET July 10,
    2005

5
The Indian Outbound Traveller
  • Indians with an annual income of Rupees half a
    million and upwards are regular leisure
    travellers.
  • The main demand for overseas travel comes from
    the business community, especially those who own
    and run small businesses. Professionals ,doctors,
    lawyers and IT professionals are regular
    international leisure travellers.
  • Traditionally, Indians mostly travel with
    families and are known to be big spenders.
  • There is also a growing class of executives who
    use attractive finance options and credit cards.
  • Typically, people in the 31-42 year bracket are
    the target leisure-travel audience. These include
    many younger people especially DINK (Double
    income no kids) couples.

Source The Economic Times Intelligence Unit
/Pacific Asia Travel Association
6
Advantage - India
  • Growing incomes,changing lifestyles are
    prompting financing of holidays by banks in
    coordination with big travel companies.
  • Players include HDFC Bank, Kotak Mahindra Bank,
    Citibank, Stanchart, etc.
  • After housing and cars, banks have started to
    bet on financing holidays with buy-now,
    pay-later schemes.
  • According to Thomas Cook and Kuoni Travels,
    holiday finance has grown from 3-5 to around
    12 in FY 04.
  • Thus Holiday Financing is expected to be the
    next big area in the personal finance segment.

SourceThe Economic Times Intelligence Unit
7
Advantage - India
  • It would be foolish not to embrace India with
    its fast growing economy. - Richard Branson,
    Virgin Atlantic Airlines. He called April 1st,
    2005 a historic day when ten years of effort
    culminated in Virgin now running three flights a
    week on the London Mumbai sector.
  • What is significant is the potential the market
    offers. When you have a population of over one
    billion, even 2 is a very large number, as large
    as the entire population of Australia- Mathew
    Spacie (Sales and Marketing) Cox and Kings.

8
Region wise performance- Indian Outbound Market.
  • EUROPE
  • UK topped the chart with an average of 200,000
    Indian visitors in 2001.
  • Switzerland is next on the chart with 97,400
    arrivals from India and 2,40,000 overnight
    (transit) stays in 2004.
  • Switzerland emerged as the top favorite country
    with 23 of Indian tourists opting for it.
    (Globetrotter Study, Nov 2006)
  • MasterCards Master Index of Consumer Confidence
    Survey 2005 said 14 of their respondents prefer
    Switzerland as a destination for their next trip
    abroad.
  • British Tourist Authority rated tourists from
    India as the 2nd most important segment by
    nationality.
  • The amount spent by Indians in the UK alone
    increased by 25 from 134 million pounds in 2000
    to 163 million pounds in 2001.
  • Europe is an important regional destination for
    Indians.

SourceBTA
9
Region wise performance- Indian Outbound Market.
  • USA
  • USA is attractive to Indians because of the
    eternal fascination for all things American. The
    sizeable diaspora also beckons once in a while.
    US has some of the worlds best travel
    infrastructure making it one of the most
    enjoyable destinations.
  • 12 per cent of travelling Indians prefer to visit
    USA making it the second among the top three
    favourite destinations. (Switzerland is no. 1,
    Singapore in no.3)
  • US arrivals from India in 2003 were 272,000 a 6
    rise over 2002. Expected arrivals for 2004 are
    300,000-- a 10 rise over 2003.
  • India is one of the four strongest emerging
    inbound travel markets for the US. In the past
    decade, arrivals to the U.S. from India (and
    Poland) have grown faster than arrivals from any
    of the top 25 inbound markets to the U.S.
  • Source Travel Industry Association of America.

10
Region wise performance- Indian Outbound Market.
  • CANADA
  • Indians who travelled to Canada between 2002
    2004

Canada has been quite successful in attracting
Indian Film crews for shoots. Canada especially
is a cost-effective destination and has a wide
range of experienced technicians, artists and
other experts to assist Indian film crews.
Source Statistics Canada, Culture, Tourism and
the Centre for Education Statistics.Last
modified 2006-08-31.
11
Travellers to Canada by Country of Origin - 2005
India was among the top 15 countries of origin
from 2002-2005
12
Region wise performance- Indian Outbound Market.
  • ASIA
  • The World Tourism Organisation figures reveal
    that around 47 of Indians travel within Asia to
    countries such as Singapore, Malaysia, Hong Kong,
    Thailand and Indonesia.
  • Singapore and Malaysia have emerged as the top
    leisure destinations for Indians.
  • Malaysia has emerged as a recent favorite
    destination, as a part of the multi-destination
    trip in combination with Singapore, Thailand and
    Hong Kong.
  • South-East Asia, Singapore, have so far been
    among the hottest cruise destinations.

13
Region wise performance- Indian Outbound Market.
  • MALAYSIA
  • India was one of the top 10 visitor markets for
    Malaysia with 1,87,918 Indian visitor arrivals
    till Oct 2005.
  • Malaysia recorded a 20 surge in arrivals from
    India in 2004 (Jan-Dec), over the same period
    last year. Cumulative tourist receipts from India
    stand at 75 million with a per person average
    spend of US 400 per visit.
  • According to Mr. P Manoharan, Director, Malaysia
    Tourism Promotion Board the total inbound tourist
    flow to Malaysia from the various Asian countries
    was 8.7 million for the period January- September
    2002. Out of this the Southern Asia Region which
    comprises Bangladesh, India, Iran, Pakistan, Sri
    Lanka and others hold 20 share. India alone
    contributes to 14 of the inbound traffic from
    Asia to Malaysia.

SourceMTPB

14
Region wise performance- Indian Outbound Market.
  • SINGAPORE.
  • The number of Indians visiting Singapore in 2005
    was 583,000 making India one of the foremost
    visitor markets for Singapore. Indians are
    spending two and a half times more than the
    average visitor from any other country.
  • For the period Jan-June 2005, the growth rate of
    tourists from India has been averaging over 20,
    against a fall of nearly 7-8 in the same period
    for tourists from China.
  • MasterCards Master Index of Consumer Confidence
    Survey 2005 said 17 of their respondents prefer
    Singapore as a destination for their next trip
    abroad.
  • Carriers from Singapore no longer need to tie up
    with Indian carriers.
  • Hence air traffic between India and Singapore
    estimated at 1.5 million, is expected to grow 40
    in 2004-05 in the short term.
  • Ahmedabad and Amritsar may generate substantial
    traffic to Singapore.
  • Singapore wants to raise the total number of
    tourists from 8.94 million to 17 million by 2015.

SourceSTB/Economic Times Intelligence
15
Region wise performance Indian Outbound Market.
HONG KONG India was one of the key markets
showing a 11.3 increase in the January-November
period over 2004. Total number of visitors from
India 2,49,994 Hong Kong is celebrating the
Discover Hong Kong year throughout
2006 Source Economic Times Intelligence Group.
16
Region wise performance - Indian Outbound Market
- New Zealand
  • New Zealand has been voted as the most preferred
    tourist destination at the Condé Nast Traveller
    Awards, 2005 held in UK.
  • New Zealand received top marks for scenery (99),
    environmental friendliness (98.87) and safety
    (97).
  • New Zealand also took the top overall prize,
    beating winners of 23 other categories, Thailand,
    Australia and Italy to top the charts.
  • "The result is gratifying because the readers
    who voted for us are affluent, upwardly mobile
    professionals and, most importantly, are very
    interested in travel. said Mark Burton, Tourism
    Minister, New Zealand.
  • New Zealand is a big hit with Indian tourists
    who are attracted by its natural beauty and the
    varied holiday options that New Zealand provides.
    From adventure sports to luxury lodges, New
    Zealand has a lot to offer to the discerning
    Indian tourist. Indian film production companies
    have evinced interest in location shooting.
  • Source Conde Nast Traveller UK

17
Region wise performance - Indian Outbound Market
- UAE
  • MasterCards Master Index of Consumer Confidence
    Survey 2005 said 14 of their respondents prefer
    UAE as a destination for their next trip abroad.
  • The survey was conducted among Indians, planning
    personal air travel in the next 12 months.

18
Power Of Delhi and Mumbai.
  • The majority of Indians travelling abroad for
    leisure and other purposes are from the metro
    cities of Mumbai and Delhi.In fact these two
    cities contribute 70 of Indian outbound
    travellers.

SourcePacific Asia Travel Association
19
Major Attractions- shopping, casino cruises,
location shoots.
  • 71 of Indian travellers listed shopping as a
    priority which is one of the main motivators for
    travel.
  • An opportunity to visit casinos added to the
    attraction of any holiday, cruise or business
    trip.
  • The cruise experience is a great attraction for
    the affluent Indians.The cruise industry has a
    short term cumulative market potential of around
    70 billion.
  • Last year, there was a growth of 20. 30,000
    travellers went on cruises last year and number
    is increasingly growing. The expected growth is
    50 for the current year.
  • South-East Asia, Singapore, Alaska, Europe, and
    the Caribbean have so far been the hottest cruise
    destinations.

Source Pacific Asia Travel Association
20
Cruising
  • The Indian film industry plays a major role in
    influencing affluent Indians to visit places
    they had seen in the movies. In the recent past,
    locations such as New Zealand, Australia,
    Hungary, Scotland, Canada, USA and Bali have been
    used for shoots.
  • Over the last few years, increasingly, not just
    business families but average Indians are looking
    at cruises for their holidays.
  • According to the G.M. of Star Cruises, The
    Indian market is poised to grow and, as India is
    the flavour of the business world, it is
    imperative for cruise companies to come here.
  • TCI has introduced cruising to Indians over a
    decade ago when it brought in the QE II.
  • Last year Star Cruises took over 70,000 Indian
    passengers. Of these only 30 were corporate
    groups. The rest were Free Individual travelers
    (FITs). Star hopes to double its number this
    year.
  • Indian preferences are shorter holidays and
    plenty of activities.
  • Exotic cruises preferred by the Indian traveller
  • Yangtze, China
  • Volga and Dneiper, Russia
  • Amazon, South America
  • Nile, Egypt
  • Baltic cruise from Helsinki

Source The Economic Times Intelligence Group
Sept 9, 2006
21
The Road Ahead - TAP THE GROWING INDIAN MARKET
THE INDIAN TRAVELLER
The Diaspora traveller is the only outbound that
has a heavy traffic towards the West.
The growth however lies in the Leisure / FITs ,
honeymooners and business travelers. This sector
is predicted to grow for the next five years.The
good news is that this segment is the highest
spenders and make up for almost 75 of total
outbound travelers. All Tourism Boards want a
share of this segment .DO YOU WANT TO BE
LEFT BEHIND????
SourceCompiled from PATA report02
T
22
CASE STUDY
  • Singapore Tourism Promotion Board.(STPB)
  • A smart innovation, resulted in Singapore
    becoming the most popular destination amongst
    Indians.
  • STPB published a full page advertorial .The
    editorial covered various tourist / leisure
    attractions in Singapore. At the center of this
    page was a contest box. To ensure maximum reader
    participation, the answers to the question were
    in the edit.
  • The response was to the contest was tremendous
    and generated a strong interest level towards
    Singapore as a travel destination.
  • A sustained marketing campaign and a bundling of
    destinations along with Singapore boosted growth
    in the numbers from India to over 20 between
    Jan and June 2005. There was a drop of 7 to 8
    in the number of Chinese.
  • With more flights now connecting the two
    countries, the role of India in the Tourism
    economy of Singapore is becoming increasingly
    important.

23
CASE STUDY
  • BRITISH TOURIST AUTHORITY ( BTA)
  • In an effort to tap the potential Indian
    outbound market BTA sponsored a 4 page colour
    pull out with The Economic Times titled A
    PASSAGE TO BRITIAN.
  • The Entire report was coordinated by BTA with
    support from their various strategic partners
    both to share costs and contribute towards making
    an interesting edit for both business and leisure
    travelers.The report ended with a contest box .
    In this case also the answers to the questions
    were within the edit itself.
  • Consequently UK was the favorite destination for
    all Indians travelling to Europe.

24
Holidays Frequency of Travelling Abroad
All figures in 000s
SOURCE The Indian Readership Survey Round 2,
2006
25
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