Namaste Nevada...Breakdown of Spend Accommodation 30% Local transport 18% Shopping 20% Entertainment 9% Food & drink 16% Others 7% Outbound Travel Expenditure Outbound average US$

Namaste Nevada

Decoding the Indian TravelerUnderstanding and Adopting to the Needs of the Indian Market

Indian Market Update

Outbound travel outlook

Departures of Indian Nationals

from India (in millions)

2007-2017

9.7810.87 11.07

12.9913.99

14.92

16.63

18.33

20.38

21.87

23.94

11.1%

1.8%

17.3%

7.7% 6.6%

11.5% 10.2% 11.2%

7.3%9.5%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Departures of Indian Nationals from India (in millions) 2007-2017 Growth %

Indians are travelling everywhere

Source: Ministry of Tourism, India

The Truth about India outbound

Source: Economic Times, IBEF, Business Standard Buzz Intelligence

As per Ministry of Tourism, India 24 million Indians travelled

overseas in 2017

Extract from 2009 UN WTO report

• We are not going to hit the coveted 50 million mark next year

• However, we are growing at 10% and expect to reach 30-32 million by 2020.

• The UNWTO predicts that India will account for 50 million outbound tourists by2020; the ‘Kuoni Travel Report India 2007’ predicts that total outbound spendingwill cross the US$28 billion mark in 2020.

What’s driving the outbound outlook

• A rise in the middle class and relative growth in earnings. Can be expected in Tier II and III cities.

• Cheaper to travel overseas than India.

• Growth in experiential travel, sport vacations, Luxury travel, MiCE and cruises.

• Weddings and honeymoons (paid by the family).

Outbound landscape- What’s new

❖ Mumbai, Delhi contribute over 40% outbound pax

❖The remaining 60% are from state capitals and Tier-I cities plusthe cash-rich Tier-II & III cities

The market is very competitive

Travel Agents still dominate the market space

Self drive cars are also booked through

agents

Frequency of Indians travelling abroad is

10 months

Extended weekends abroad is the new mantra

New Niches, customized offerings

are very important

Outbound trip by Purpose of Travel

Average duration of Trip

VFR 44% 31

Leisure 30% 6

Business 26% 22

Source : Bureau of Immigration (BOI), UNWTO report by Nielsen & PATA CAPA India and Expedia Report

Length of Stay

Long Haul 15 – 25 days average

Short Haul 05 – 08 days average

Breakdown of Spend

Accommodation 30%

Local transport 18%

Shopping 20%

Entertainment 9%

Food & drink 16%

Others 7%

Outbound Travel Expenditure

Outbound average US$ 2231*

*Average taken for selected major destinations

Outbound Market Profile

Outbound landscape

• Tourism boards are gearing up to meet the growingnumber of Indians who are travelling abroad andsplurging – all through the Travel Agents.

• The frequency of Indians travelling abroad now is10 months down from 12 to 18 months in the past.

• Approximately 80 million passport holders are "Potential Travelers"– persons who have either already travelled or intend to travel in the future.

Who is travelling?

• Indian millennials (22-37 years) are more adventurous and

confident and more inclined towards discretionary consumptionof activities such as travel, as opposed to saving. They preferindependent travel over group tours

• 45% of 18-25-year went on their first international trip eitherwith friends or by themselves

• Indian baby boomers (54-72 years) are the fastest growing age

group in some destinations such as Canada and New Zealandand prefer group travel.

When do they travel?

• The peak season for travel from India has traditionally been from April to June and again from December to January.

• From October to January, due to the festival period and New Year breaks. The wedding season, which is now driving honeymoon travel. This is particularly so, in the case of short haul travel.

• However, for longer haul travel to northern hemisphere destinations, there is a much more distinct single peak season between April and June.

Strategic Ideas

Newsletterss

Press Releases

Nevada Specialist Program

We have prepared a Nevada Specialist Program for the travel trade industry.

This course is mandatory for agents participating in Nevada promotional events.

We will also ensure that junior staff at agencies undergoe this training.

The course has 5 modules –

1. Introduction

2. Need to know

3. Things to do

4. Weather and forecast

5. Miscellaneous

Nevada Specialist Program

There are multiple quizzes in the e-learn program to assess the proficiency of the

travel agent participating in the course.

This will help the travel agent to –

• Understand the destination

• Create itineraries

• Become a Nevada expert

• Increase the knowledge of the frontline staff

• Enable the agent to push beyond Las Vegas

• Be eligible for the joint co-op activity with the

Travel Nevada India team

• Be eligible for participating in the trade Fam of Nevada

Advertisements in Trade Journals

• We have showcased the Travel Nevada and its offering in the leading Trade Journals of India

• The readership of these Trade Journals – 600,000 Travel Professionals

Advertisements in Trade Journals

Advertisement in Travel TV

We have showcased/advertised destination Nevada in TravelTV, which India’s first and one-of-a-kind news capsule. It exclusively delivers relevant industry news to travel agents.

This activity is a very effective tool for increasing awareness about product offerings of the destination in terms of tourism attractions, sightseeing, road trips, high-end shopping hubs, sports activities, etc.

Collaterals

Collaterals used during meetings:

1. Nevada Map

2. Nevada Fact Sheet (Front and back)

3. Diary

4. Coasters

These are useful when explaining the destination to travel agents,

with distances and tourism attractions, so they can further sell to

their clients. Collaterals also hold recall value.

Nevada Map

Nevada Fact Sheet (Back)Nevada Fact Sheet (Front)

Collaterals

E-Blasts

Product Presentations and Sales Meetings

We are meeting 20 travel agents for Nevada

every month.

These ranged from large B2B agents to

specialist diversity agents.

Our sales calls were focused on technology:

• Each sales call includes a product

presentation video, which is then given to

the travel agent to play in their office.

Product Presentations and Sales Meetings

Participation in Travel Luxury Shows

Travel Luxury Show is an annual closed-door event that facilitates face-to-face interaction with premium hosted buyers. Entry is by invitation only, with eminent speakers addressing the audience.

Outcome

The show turned out to be a very effective tool for increasing awareness of the product offerings of the destination in terms of hotel venues, post-wedding sightseeing, high-end shopping hubs, etc., and gather more interest and consideration for the destination.

We met over 60 agents from Pan India

Participation in Travel Luxury Shows

Participation in Travel Wedding Shows

Travel Wedding Show is an annual closed-door event that facilitates face-to-face interaction with premium hosted buyers. Entry is by invitation only, with eminent speakers addressing the audience.

Outcome

The show is a very effective tool for increasing awareness of the product offerings of the destination in terms of hotel venues, post-wedding sightseeing, high-end shopping hubs, etc., and gather more interest and consideration for the destination.

We met over 60 Wedding Planners from Pan India

Participation in Travel Wedding Shows

Participation in Global Panorama Showcase

Global Panorama Showcase (GPS) is a premier businessnetworking event and business-to-business trade show.The event provides an ideal platform for interaction andbusiness between tour operators and travel agents, andfor exhibitors to understand the tourism potential therespective regions have to offer, especially from Tier-IIand III markets.

We participated in the following cities

• Ahmedabad• Chandigarh• Kochi• Kolkata• Pune

We met over 100 agents in each city

Participation in Global Panorama Showcase

Travel Nevada Webinar 2019

Travel Nevada India Team held a destination webinar on

Tuesday, 10 September 2019 to educate the Indian Travel

Trade fraternity about the various facets of the destination.

The Webinar presentation was developed in two segments.

The first segment covered topics like connectivity,

geography, currency, accessibility, Visa processes about the

Destination.

In the second segment we deep dived in two topics, one

showcasing Nevada as a premier Road trip destination and

for the second we discussed about Las Vegas and beyond.

We had over 300 registrations from over 40 cities

in India

Travel Nevada Local Hero

To promote the destination amongst the trade, we

have appointed one local travel agent as the ‘Local

Hero’ in Kolkata, Delhi and Ahmedabad.

These are the leading travel agents and are trend

setters amongst the travel trade industry of their

particular region. These are one of the biggest agents

in the market and do huge numbers to United States,

Canada and Europe.

The Local Hero has been carefully hand-picked by us

so as not to complete with other agents in the market

but to educate the travel trade in the industry.

Travel Nevada Local Hero

Travel Nevada Local Hero

Social Media - Facebook

Facebook numbers 2019

No. Of Posts 122

People reach 1,359,705

Total Impressions 1,510,896

Engaged Users 72,942

Social Media - Facebook

Social Media - Facebook

Social Media - Twitter

Twitter Numbers

Impressions 10.2K

Engagement Rate 1.15%

Likes 146

Retweets 51

Social Media - Twitter

PR Coverage

Total Coverage Value

Type INR USD

Print 13,494,000 207,600

Online 5,778,500 88,900

Electronic 351,000 5,400

Grand Total 19,623,500 301,900

PR Coverage

Indian Travel Trends

Does the Indian traveller exist?

‘The Indian traveller’ does not exist.”

• Delhi differs from Mumbai and within each region there are significant variations in preference based on age, income and religion.

• Selling in different regions has to be carefully positioned and marketed.

• We think of India as various different target markets requiring their own strategy.

Does the Indian traveller exist?

Last minute

• On average Indians book holidays 40 days before travelling for short-haul trips and 60 days for long-haul1.

• Visas can often lead to cancellation of trips.

Agents and Trade

• Indians ‘Research Online but Purchase Offline’ (RoPo). Relationships with the travel trade is therefore of key importance.

• Communities work with community agents.

• Approximately 89% of international holiday bookings are done through tour operators1.

Tailored

• Indians want customised, experimental and tailored travel packages (luxury and experiential)

• They want bragging rights!

1: Source: CAPA and Expedia study India 2018

Source: Times of India

What makes them different

Indian Survey Report

COMMON TRAVEL CONCERNS

GENERAL TREND TOP TRAVEL REGRETS

BEST TRIPEXPERIENCES

48%Finding suitable accommodation

38%of baby boomers would

like a sabbatical

33%Not travelling more

while younger

43%Living with locals

21%Language barrier

41%Of baby boomers want a

digital detox

34%Lack of adventurous

travel

57%Long-distance train

19%Getting lost in an

unknown land

47%of GenZ want to go

snorkelling or diving

34%Not travelling more

often

60%Road trip/Self drive

16%Unfamiliar situations

while travelling

63%Of baby boomers have

gone on a pilgrimage in the past year

30%Not seeing more of the

places visited

43%Spontaneous trip

Survey reported The Week with Booking.com published on July 29, 2018

The basics

1. Indian leisure travellers are between 25–65 years old, well educated, belonging to the upper socio-economic strata.

2. Indian travellers prefer 3 or 4 star hotels. Only 25% opt for 5-star hotels.

3. Travel agents, internet, newspapers, magazines, and recommendations from family and friends are the important sources for information on the holiday destination.

- However 89% book through travel agents and tour operators

- There are two main reasons for this:

I. One on one contact with a travel professional

II. A lot of overseas leisure travel is paid by undeclared income which cannot be used on line

What they’re looking for

RANKING 2009 SURVEY 2017 SURVEY

1 Shopping Sightseeing

2 Sightseeing Relaxation

3 Dining Dining

4 Relaxation Shopping

5 Activities/Sports Activities/Sports

Source: CAPA India Research

❖ Entertainment is a strong drawcard, as there is growing interest in travel to attend music and

sporting events, as well as local cultural festivals

❖ Older millennials (aged 26-34 years) are interested in nightlife and local cuisine more than

any other age group.

India Traveller's Average Spend Per Day Per Room On Overseas Holidays

34.5%

50.5%

11.3%

3.7%10%

20%

30%

40%

50%

60%

<75 USD 75-150 USD 150-300 USD >300 USD

Source: CAPA India Research

❖ Accommodation generally accounts for about 35% to 50% of total vacation spend.

❖ 50% of Indian travellers budgeted USD75-150 per room per night for leisure travel, with 35% spending less than USD75.

❖ Spenders of the 75-150 USD bracket expect 5* properties in this range.

Food? What, why, when…

• 41% Indians are Vegetarian (not vegan). They include dairy products like milk, cheese, yogurt, butter, cream, but exclude eggs.

• An additional 9% are Vegetarian, but consume eggs.

• Of the remaining 50% non-vegetarians, only 30% consume meat regularly. They always include vegetables in their diet.

(Beef is a big No for most meat eaters)

• Though a majority of the FIT travelers are happy to try out the local cuisine, they would prefer the option of at least having one Indian meal every other day.

A few other peculiarities

• The Indian Traveller loves to be demanding and appreciates customization.

• Shopping is a prerequisite for a vacation, be it for gifting or personal use.

• Indian passport holders have access to over 60 countries (Visa free or on arrival). Indians are big spenders when travelling overseas and this acts as a catalyst for destinations to open doors.

• Complimentary services, Promotional deals and discounts/add ons bring sparkle in the eye’s of Indians.

• Indian Traveler digitally evolving, phone savvy and hence Wi-Fi connectivity is a must.

Digital

Why digital is the way forward

✓ India currently has approximately 350 million Smartphone users and has a healthy YoY growth of approximately 20%

✓ 60% Indian travelers receive recommendations via online channels

✓ 73% Indian travellers are using Travel economy apps and services compared to only 37% in the rest of APAC

✓ Mobile phones will influence 9 out of 10 airline ticket purchases by 2022

Opportunities

Emergence of Digital Commerce Market

❖ Air tickets booking is the highest contributor in this segment with 19% Y-0-Y growth.

❖ The International Air ticket booking has grown to become 19% at USD 3 billion.

Component share of online Travel ($ 15.8 billion)

Domestic Air Ticket 6.509 41%

Rail Booking 3.872 25%

International Air Ticket (Short haul) 2.998 19%

Hotel Booking 1.382 9%

Bus/Cab booking 0.739 4%

Tour Package 0.162 1%

Travel Insurance 0.137 1%

Source: KANTAR IMRB, I-Cube 2017 Estimations*1 Indian Rupee equals 0.0142 U.S. Dollar

OTAs - Online Travel Agents also prefer print media for marketing

Online Travel Agents such as MakeMyTrip, Expedia, Goibibo and Yatra … frequently use print media channels to reach the target market.

Source: National newspapers and magazines

Online V/s Offline

Thank You!