Title: The Great Indian Traveller
1The Great Indian Traveller
2Indians 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)
3Overview 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
4Indian 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
5The 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
6Advantage - 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
7Advantage - 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.
8Region 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
9Region 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.
10Region 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.
11Travellers to Canada by Country of Origin - 2005
India was among the top 15 countries of origin
from 2002-2005
12Region 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.
13Region 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
14Region 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
15Region 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.
16Region 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
17Region 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.
18Power 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
19Major 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
20Cruising
- 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
21The 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
22CASE 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.
23CASE 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. -
-
24Holidays Frequency of Travelling Abroad
All figures in 000s
SOURCE The Indian Readership Survey Round 2,
2006
25THANK YOU !