infosessies future
markets
de Indische markt
17 mei 2011
Contents
•India- Macro Outlook
•India- Travel Market Outlook
•Indian market share in Flanders
•The Indian Tourist
•The Indian Travel Trade
•Tips while dealing with the Indian Trade
•Online market in India
•European Bound Scenario
•Tourism Flanders in India
India
India- Macro Outlook
•National language is Hindi – but 60% of the people use another
mother tongue. There are about 80 of them, of which 21 are
'scheduled' official languages, English is widely used in
business.
•An estimated 180mn Indians, including most people affluent
enough to travel, speak English well.
•The majority (83% of the population is Hindu, 11% Moslem, 2%
Christian and 2% Sikh and 2% others)
India- Macro Outlook
One of the fastest growing economies in the
world
India-Macro Outlook
•Country in upswing with stabilized political and economic situation
•Indian economy has regained momentum; Growth in the fiscal year that ends in March 2011 would accelerate to 7 to 8% after growing by about 7% in 2009/10
•India's financial hub Mumbai and political capital Delhi are likely to witness a significant jump in economic growth along with other emerging markets and make it to the league of the world's wealthiest cities by 2025
•5th Largest consumer market by 2025
•The luxury products market is likely to grow at a CAGR of 28 per
cent to reach US$ 1.2 billion by 2010. The market is expected to
double by 2015, touching US$ 2.5 billion. (FICCI & YES BANK).
India- Travel Market Outlook
•Impressive annual growth in outbound tourism
•8.34 million (2006), 9.78 million (2007) 10.87 million (2008) & 11.7
million (2009) [Source: The Ministry of Tourism]
•After the global economic slowdown, the Indian travellers are opting
for short haul destinations, a low airfare, and best affordable 4-star
accommodation hotels and prefer traveling
•Intra-regional destinations have become more popular than
destinations further field (per a recent MasterCard survey)
•Over 70% of business travelers were looking to increase or
consolidate their spend on corporate travel and 39% will be
increasing their corporate travel budgets [FCM Travel Solutions Survey 2010]
India- Travel Market Outlook Geographic Spread- Outbound Traffic
Delhi (NCR)
(Hub of the North Zone) 33% of the travel market
Kolkata
(Hub of the East Zone) 10% of the travel market
Mumbai
(Hub of the West Zone) 34% of the travel market
Chennai/ Bangalore
(Hub of the South Zone) 23% of the travel market
India- Travel Market Outlook
• Outbound Travel: Over 12
million
As per Euro Monitor:
Estimated to reach 16.3
million
By end 2011
Estimated growth:
15-20% per annum
[ 60 % Business & 40
% Leisure / VFR /
Immigrants ]
More than 48 million people with valid passports.
India- Travel Market Outlook
Drivers of Outbound Tourism
Growing and Affluent middle class
Strong Consumption Patterns
Higher Disposable Income
India- Travel Market Outlook
Asia is the most traveled region followed by Europe in their most
recent trip abroad among Business and Leisure travelers.
Leisure Travel
8%
14%
1%
72%
5%America
Europe
Africa
Asia
SouthPacific
Business Traveller
13%
18%
2%
63%
5% America
Europe
Africa
Asia
SouthPacific
India- Travel Market Outlook
•FIT Travel is showing the highest growth
•Growing demand for niche products – off the beaten track locations and activities
•Average length of holiday is getting longer; they travel with families, and have high repeat visitation rate to preferred destinations (as per PATA)
•Relaxation in Government regulations . – bank finance, credit card issuance and usage
•Cruise and Theme Park tourism rapidly increasing
•Growth in MICE business – travel based rewards very popular.
•With economic liberalization overseas Convention and Exhibition visits have rapidly increased.
India- Travel Market Outlook
•Increase in capacity of carriers to
Europe has improved travel outlook
•The domestic air traffic will reach
150-180mn pax per annum; while the international traffic will reach 50mn by
2020. (Source: CAPA)
•The outbound travel market is still
largely untapped vis-à-vis the sheer size and current potential.
•The changing profile of the traveler
will continue to create demand for
niche and unique tourism products.
Future Outlook
India- Travel Market Outlook
•The Indian Rupee will remain relatively
stable against the US Dollar
•The Government has made several
fiscal reforms – stimulating large and mid sized businesses
•The market remains buoyant and
strong
Future Outlook
Indian Market share in Flanders Visa Situation
•Visas are required for Indians
traveling as tourists to the Schengen
countries and all other European
countries.
•Nominally a Schengen visa can be
issued in three or four days, but in
practice the process may take a
week
• Visas in India can be accepted
through Global VFS, which further
send the applications to the
Embassy in Delhi or the Consulate
in Mumbai for further processing the visas.
Indian Market share in Flanders
Jet Airways/Qatar/Etihad
•Indian carrier Jet Airways made
Brussels its hub in Europe and
began flying to USA and Canada
everyday via Brussels from Delhi,
Mumbai and Chennai
•This really helped increase traffic
to Brussels and Flanders from
India and create awareness
about the destination.
•Besides Jet Airways, entrants
like Qatar and Etihad Airways
also help increase arrivals from
India to Flanders
Indian Market share in Flanders Jet Airways
This graph shows the impact of the Indian visitor arrivals in
Flanders over the last 10 years. The volume of the Indian market
almost tripled in 10 years (+190%). We see the biggest growth in
the last 2 years, since Jet Airways is flying to Brussels
0
20.000
40.000
60.000
80.000
100.000
120.000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Indian Market share in Flanders
Overnight Stays 2009
Overall Total
foreign
travelers
Indian
travelers
%
India
Ranking
India
Arrivals 5.688.647 34.557 0.6% 19th
overnight
stays 12.466.741 69.176 0.6% 19th
length of
stay (nights) 2,2 2,0
Indian Market share in Flanders Indian overnights in Flanders
___________________________________________________________________________ ___________________________________________________________________________
NRIT Trendsymposium NRIT Trendsymposium
Kust
Kunststeden
Vlaamse regio’s
Wallonië
1%
16%84%
Indian Market share in Flanders The Indian market in Flanders by region 2009
[arrivals (left) and overnights (right)]
arrivals % Overnights %
Flemish region 21.152 47% 60.993 58%
Brussels region 18247 53% 44.430 42%
Flanders 53.723 100% 29999 100%
39.177
57%
29.999
43%
Flemish region Brussels region
16.310
47%18.247
53%
Indian Market share in Flanders
Indian overnights in the historic cities 2009
20.934
2.524
29.999
2.6301.006 903
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
Antwerp Bruges Brussels Ghent Leuven Mechelen
Source: Tourism Flanders based on GDS
The Indian Tourist
The Indian Tourist Profile
•Most leisure travelers are from the middle-class, well-educated
& well-informed
•Savings are the primary mode of finance for international
leisure trips – 84% (PATA
•Leisure & sightseeing are the key motives for international
holidays. (PATA Nielsen)
•Indians prefer multi destinations / locations
•Love shopping – 50% say that shopping is one of their main
reasons for travelling abroad. According to ACNielsen, 73% buy
duty-free goods
•Package tours tend to opt for 3 or 4 star hotels, while
independent travellers often choose more up-market
accommodation.
The Indian Tourist
Profile
•67% of Indian outbound travelers now use credit cards
unlike 5 years back. Many banks and tour operators now
offer easy holiday financing
•Activities - shopping, food, entertainment, sightseeing.
•Factors considered while selecting a destination
Environment – 62%,
Culture & Art – 53%, Safety – 50%
Hygiene & environment – 48%
Leisure & wellness 42%
•Internet is the main sources of information followed by newspapers/magazines, travel agencies,
recommendations from friends & TV.
The Indian Tourist Peak Outbound Travel Season
WINTER
HOLIDAYS (a) Around Diwali
Festival
(Oct/early Nov)
(b) Christmas &
New Year
Period
SUMMER HOLIDAYS
(15 April - 30 June
The Indian Tourist
Spending Habits/Characteristic
•86% shop for Global branded goods – fashion & accessories,
electronics, local souvenirs, gifts and fragrances
•Fastest growing spenders. Indians are spending 28% more than
the previous year (AC Nielsen for the Tax Free World Association).
•Indians love shopping - according to AC Nielsen, 73% buy duty-
free goods.
•Seasoned Indian travelers also look for and indulge in gourmet experiences.
The Indian Tourist
Spending Habits/Characteristics
•They are increasingly looking
for “rich experiences” through a
varied range of activities and
attractions.
•There is a new league of
discerning sophisticated
travelers, who appreciate
contemporary art, musical
concerts, designers and fashion etc.
•Based on regional and cultural
biases – people in the same
socio-economic segment have different needs
The Indian Travel Trade
Structure
The Indian Travel Trade Market Segments
The Indian Travel Trade Important Players in the market
The Indian Travel Trade
Flemish Products offered
The Indian Travel Trade Flemish Products offered
Tips while dealing with Indian
Trade
•List of Indian Restaurants should be available along with
Vegetarian options
• Always provide them with a list of shopping areas especially the
outlet shopping areas as that is something their clients will always ask them for
• Ensure your itinerary covers all the important elements of the city
along with sufficient time for photo-stops.
• Try and create all inclusive 3 star hotel packages. Indian families
generally opt for this option the most. Avoid too many additional
hidden costs
•Visit India from time to time and meet with the Indian travel industry in order to increase potential business
Tips while dealing with Indian
Trade What sells/What does not
•Theme Parks because generally Indians travel with their families
that include young children
•Indians are avid shoppers therefore Flemish cities provide an
excellent opportunity for those indulging in retail therapy
• Villages for eg would not be the most ideal experience for an
Indian, as although it may be the past for the Europeans it is the
real present for a part of India
•Besides looking for inspiring cityscapes and tourist landmarks,
Indian travellers now also value time to unwind over a relaxing drink
or delicious meal in a relaxed atmosphere at Flemish towns
otherwise bustling with life.
Tips while dealing with Indian
Trade Cautions
• Don’t offer credit facility to the Indian Travel agent unless you
have worked with them in the past
• Check credibility of the agent before working with them
•Indians are generally late bookers, and will be constantly talking to 2-3 agents are one time
•Ensure you are not overbooking on the Indian agents behalf
•Be clear with your set of rules and regulations from the
beginning
Online Market In India
$0 $2,000 $4,000 $6,000 $8,000
2007
2008
2009
2010
India will be a $5.7 B Online
Travel Market by End 2010 •81 million users - 4th largest
in the world
•Online travel industry
expected to grow by 51 %
•Travel is the largest e-
commerce category in India.
•Surpass US$ 5.7 billion by 2010 ( PhoCusWright) over
2.7B in 2008.
Online Market In India Online Market Players
Online Market In India
Approach
BTL
Marketing
Retail
Marketing
Direct
Marketing
ATL
Marketing
Television Commercials
Print Advertiseme
nts
PR Activities
Online
Marketing
Micro-site
SEM / Display
Social Marketing
Differentiated
Product
Offerings
Unique and
Tangible
Value
Additions
Online Market In India Approach
Target shoppers: •Honeymooners
•Family and Kids
•Group Travel
Highlights of Communication
•Increased visibility for destination
Flanders
•Promote Flanders-as ‘lead the good
life”
•Art & Architecture, Activities, Food,
Shopping, History-endless fun on
offer.
Online Market In India
Examples
European Bound Scenario
•Families on holidays
•Young Couples & Honeymooners
•Business travellers
•MICE (Meetings & Incentives)
•Transit Travellers
Profile of Indians traveling to Europe
European Bound Scenario Drawbacks
• Typically, Indians regard
Europe and North America as
highly aspirational, if expensive,
destinations
•. Southeast Asia and the
Middle East are closer and
cheaper, and (being 'Asian') within their 'comfort zone'
• However, travelers are increasingly looking for more
adventurous and prestigious
experiences worldwide.
•Visa free short haul
destinations sometimes have an
advantage
European Bound Scenario
Tips for Flemish Trade
•Indians prefer to have a multi-destination
holidays
• The travel trade could be encouraged to
package other complimentary destinations like
Amsterdam, France or London
•Regular sales calls to the travel trade in India
will help penetrate the market and create
awareness
•Participation in roadshows like OTR, OTM
•Create distinct travel products different from
neighbouring countries concentrating on
Europe- A rich experience
Tourism Flanders India
Activities
•Participation in road-shows or organize product updates to
introduce Flanders to equip travel trade partners to include
Flanders packages in their upcoming European itineraries
•Coordinate visits on behalf of Flemish trade to encourage them to meet and contract with the local Indian trade which in
turn would push tourism for Flanders from India
•Consumer Contests – we proactively pursue opportunities to
create a consumer outreach platform; this could include consumer contests with strategic partners like cinema
multiplexes, shopping malls and social media networks
•Trade activities- Monthly e-newsletter, Product updates, joint
promotions
Tourism Flanders India
•Online marketing tie ups with portals usually include banner
advertising on their websites, web link to our website, and
cross promotion via popular consumer, matrimonial and social
media sites
•Since companies have their employees traveling for MICE
related purposes from all across India, we leverage on the fact that Jet Airways has 3 daily flights from Chennai, Mumbai and
Delhi to Brussels
•Besides above, we will regularly provide fam support to
journalists who are already traveling to Flanders This in turn
will help us to secure incremental destination coverage
Activities
THANK YOU