Market Research Report

Adventure Sports & Offbeat Travel Market in India

Anubhav Pahwa, Shivani Sharma & Yasmin Hussain

Table of contents

1. Adventure Tourism – An Introduction

2. Adventure Tourism in India

3. Adventure Activities

4. Market Size

5. Market Segmentation

6. SWOT Analysis

7. PEST Analysis

8. Existing Players & Corporate Clients

*For a gist of the market research report, please refer to the link of the presentation:

http://prezi.com/sfav3kpatazw/elan-adventures/?auth_key=357ce39652f53a8b127cfd626f2b36be3a249ff1

Adventure Tourism : An Introduction

Adventure tourism is a form of travel in which the heightened risk involved creates a magnetic pull for certain

segments of the travel market. According to John Canning, “the fascination for the word adventure is perhaps

that most people think of it as a life being lived at a far greater intensity than normal.” Moreover, the

unpredictability of ‘nature’ adds to the thrill.

Categories of Adventure

I. Aerial Adventure

Ballooning - Balloons used for these activities are of two types– Hydrogen filled and Hot air balloon,

which though heavier than Hydrogen is neither flammable nor explosive. Balloons filled with Helium

are also used. To promote this product Department of Tourism conducts Ballooning Fairs at Delhi and

Ahmedabad every year.

Parachute Jumping – Requires use of aircraft, expensive, proper training required.

Sky Diving - Requires use of aircraft, expensive, proper training required.

Paragliding - done using light aircraft, but differs from parachute jumping since the shape of chute used

in this activity is almost flat and rectangular from above.

Parasailing - A jeep or speedboat on water helps in towing the parasailers and stopping of the machine

results in parasailers’ descent.

Gliding or soaring - popular though risky.

Hang-gliding - variation of gliding, has full FAI status.

Bungee Jumping

II. Water Adventure

Diving

Snorkelling

Scuba diving

Tethered or surface supplied diving

Deep sea diving

White water rafting

Canoeing

Water skiing

Surfing

III. Land Adventure

Safari - has a tourist group travelling caravan style over a long specified distance. Safari could be desert

jeep safari or wild life excursion or travelling the jungle where the element of adventure exists.

Motor rally

Rock climbing

Trekking

Mountaineering - tougher than trekking as it requires specialized skills which can only be acquired by

training. For this mountaineering institute has been established by Govt. of India to promote and

provide trained trainers.

Mountain biking

Skiing - a popular activity with both international and domestic tourists. India was the first country

offering heli-skiing in Asia.

Adventure Tourism In India

The Adventure sports industry has long existed in India, but under an altogether different form. For years since

the country was liberated, this industry has been catering to the Indian Defence Forces. They were the only

buyers in the beginning and gradually as the industry flourished, remained the biggest buyer. Till late 90s, as

much as 80 percent of all the equipment sold in india for adventure sports went to the Defence.

With the economy being liberalized and western influence creeping in, the industry grew slowly, but steadily. No

private companies invested in adventure sports as it was not a big enough market at that time. Since the largest

consumption came from the govt, there was no profit for big brands to market their goods so most of them

refrained from stepping in.

This remained the trend for quite some time, until adventure junkies started turning into entrepreneurs

themselves. Several startups came up and set camp in various parts of this vast country that had their own share

of adventure to offer. Initially the numbers for these ventures were very low, as adventure sports can be a costly

affair. There was no defined market or sharp focus on consumers. It was there for who could afford it.

But that was the old story. Over the last 6-7 years, India has seen tremendous growth in terms of economy and

in terms of culture. Not only has the attitude changed, the wallet of an average Indian now has a considerably

higher disposable income. The standard of living for Indian urban households to has gone up. Travel and

tourism has grown at a fast rate and has gone from being functional to leisure and now from leisure to

aspirational. The World Travel and Tourism Council (WTTC) and World Tourism Organisation (UNWTO)

have predicted that India and china are going to drive Asian tourism in the future. This prediction is backed by

data released by the Ministry of Tourism (MOT) and WTO according to which tourism in Asia has seen a

double digit growth in spite of worldwide recession. According to the latest monthly statistical data released by

the MOT, India, foreign tourist arrivals (FTA) during the Month of January 2012 was 6.81 lakh as compared to

FTAs of 6.24 lakh during the month of January 2011. The trend of positive growth in FTAs observed during the

year 2011 continued in January, 2012 too with a growth rate of 9.2 per cent.

Compared to its western counterparts, adventure tourism in india is in its nascent phase. It is a much too

fragmented and scattered a market to actually represent a strong unified sector. There is no one major centre

which represents all the small and medium size tour operators who are providing quality services but lack

exposure. Apart from lack of promotions, various reasons stop Indians from availing these services. The biggest

one is a notion that adventure sports are meant for the elite and the rich who have too much money and time

to spend on adventure trips. Here is a need for communication that would convince Indians that adventure

tourism is not a product for the elite but a service meant for all to provide healthy recreation and thrill within

minimum leisure time at disposal.

Apart from this misconception, several others factor are hindering this sector’s growth.

• Risk of life – Either because of limited knowledge or a few unfortunate incidents, adventure sports is

considered to be dangerous.

• Budget constraints – Although not too expensive, adventure sports can’t be called affordable either.

• Availability – Since all these are outdoor activities, they are specific to a certain geographical locations.

All sports cannot be available everywhere. People have to travel which adds to the time overhead.

• Red tape – Indian government isn’t too friendly for adventure startups. Insurance of sports gear is not

legalized and a zillion permissions only slow down the process. Additionally, policies to support any

employment generating adventure tourism or retail are inconsistent and weak.

• Rare accidents – A few unfortunate accidents have painted a formidable image in the consumers’ mind.

Nobody wants to have a thrill that might claim their life. Extensive marketing and promotions are

needed to assure them about the safety measures taken by the tour operators.

• Apprehension – Even if a youngster wants to go for adventure trips, his family’s apprehension about his

safety hold him back.

• Lack of the hunger for adventure – The Indians generally are still averse to adventure sports. Except for

the urban upwardly mobile, below 35, segment, even the youth in the rest of India is vary of indulging in

this kind of leisure activity.

Adventure Activities in India

Top Adventure activities in India include:

1. Skiing in Gulmarg

2. Trekking in Zanskar

3. Mountain Biking in Ladakh

4. Scuba Diving at Andaman Islands

5. Trekking in Sikkim

6. White Water Rafting at Rishikesh

7. Forest Trail at Jim Corbett National Park

8. Mountaineering in Darjeeling

9. Forest Trails at Kaziranga National Park

10. Trekking in Gangotri

11. Forest Trails at Periyar National Park

12. Paragliding in Manali

13. Camel Safari in Bikaner

14. Fishing at Cauvery Fishing Camp, Bheemeshwari

15. Camping at Kabini River Lodge Camps

Other adventure activities include –

• Rock climbing

• Bungee jumping

• Hot-air ballooning

• Paintball

• Skating

• Canoeing & Kayaking

• Snorkelling

• Jeep Safaris

• Wildlife safari

• Bird watching

• Hang Gliding

Market Size

Indian Tourism Industry

The Indian tourism and hospitality sector is a US$32 billion business and contributes about 5.3 percent of the

Indian GDP. It’s growing at the rate of 35% every year and attracts 2 million adventure tourists. Tourism is one

of the third largest revenue generators of foreign exchange for India and also employs one of the highest

numbers of manpower. A staggering 20 million people work in India’s tourism industry which is a great

example of India’s tourism and is great for India’s economy.

India is gradually emerging as the second most rapidly increasing (8.8 percent) tourism economy in the world

over 2005-14 according to the World Travel & Tourism. Conde Nast Traveler, one of the most decorated travel

magazines, rated India as one of the hottest destination in the world.

According to the World Tourism Organization, India will be the leader in the tourism industry in South Asia

with 8.9 million arrivals by 2020. According to the Indian Tourism ministry, the Indian tourism industry would

be the third largest foreign exchange earner in the country in the next three year. Till the end of 2012, foreign

tourists will grow at the fastest pace in comparison with the last decade and it is estimated that tourism in India

could contribute US$1.8 billion to India’s GDP.

Adventure Tourism

The adventure sports/goods industry is estimated to be worth around 1300 crores and expanding at the rate of

32- 35% per annum. According to PHD chamber of commerce and industry, adventure tourism in India has

immense potential and has the potential to be number one in getting revenue from abroad.

Adventure sports market in India: Rs.1300 crore

Minimum investment in equipment: Rs.1 crore

Minimum investment for owning property: Rs.1 crore

Minimum investment for office equipment: Rs.50 lakh

Minimum overall investment: Rs.3-5 crore

Established players: Snow Leopard, Wonder Lust, Adventure Sports, Flying Fox

According to industry estimates, domestic adventure tourism is seeing an annual growth of about 30 per cent

while inbound adventure tourism to India is increasing by up to eight to 10 per cent annually. Unofficial figures

say that we have over one million adventure tourists in India every year. According to estimates provided by

various tour operators, approximately 20% of the earnings from tourism comes from adventure tourism. Of the

20% contribution, approximately 65% of it comes from foreign tourists arriving in India. This translates into

adventure tourism contributing Rs. 731.2 billion or $ 2 billion. Though tourism is on an upswing in the

country, and travel portals have been backed strongly by investors at various stages, venture capitalists are yet to

invest in adventure sports firms.

Adventure sports tourism, till not too long ago a passive contributor to the tourism market in India, is growing

on the back of concerted marketing and promotional initiatives being undertaken by state tourism departments

and tour operators. As far as the various parts of the country contributing to the market are concerned, North-

East India dominates with adventure tourism contributing 85% of overall tourism earnings in the region

followed by North India (65%); Western India (55%); South India (40%); and East & Central India (20%

each).

What mostly goes against these firms is their localized nature. A majority of them operate on a local basis in

locations such as Bangalore, Rishikesh, Manali, Rohtang Pass, Lakshadweep, Goa and Pune, offering varied

services. As the firms themselves are minuscule, their capital needs also tend to be small. Not many mainstream

investors tend to do sub-$0.5 million deals.

Consumer Profile : The Urban Youth

Why Urban?

Adventure sports as a leisure activity needs at least medium level disposable income. About 70% of India is

rural, but lack of disposable income makes this segment invalid on an adventure sports company’s charts. As the

Urban region is growing in India as quick as 29% and composes 30% of the total population, it can be

considered a safe bet to invest in this rapidly growing section with their increasing income and standard of

living.

So, the industry has found a significant market in the affluent, price-insensitive group in India. Though they are

small in number, they do make up for it in terms of Aspu (average spend per user).

Why Youth?

India at this moment is one the youngest nations of all! With the median age of 25 years, India is projected to

have more than 55% of the population of working age by 2025. Also, 76% of the Indian population is aged

below 39 years. Youth is the largest segment in India and one with most potential. Appealing to this segment of

India would promise exponential growth in near future as well as in the long term.

Adventure sports comes with a tinge of exhilaration, lots of thrill and a kind of high that generally only

victory/winning entails. To go beyond conventional modes of leisure and travel, one needs to have that

openness towards new things and be bold enough to experiment.

All this spells Youth. From the just turned adults with their newfound freedom to a grown up professional

wanting to live his life to the fullest, Youth covers them all. Any younger, the children are under their parents’

jurisdiction and never get permission to get involved in any activity that has risk attached to it. On the other

side, after 40, the body of the person does not allow him to indulge in extreme sports or activities that are

demanding to the body.

Hence, the perfect market for adventure sports lies in the “Urban” (Disposable income) “Youth” ( 16-40).

Peripheral Market : The older generation

Apart from the bold and experimental young, there are quite some people who have grown up in age but not at

heart. These are people above 40-45 who want to delve in adventure and perhaps want to compensate for the

lack of it early in their lives. They are at a stage in life where they have accumulated money for themselves and

they think it’s high time they pamper themselves and get on to achieving all that was on that bucket list they

made long time ago. Or they might even be just too exhausted with their hectic lifestyles and want a break that

relaxes as well as stimulates them. These would typically go for trekking, jeep safaris or nature walks.

This would not be the core target for any adventure tour operator, but is a highly profitable segment

A general research on adventure sports consumers in india unearthed a few facts

·∙ Tourists from the age 16-40 partake adventure tours the most.

·∙   Urban people to go on adventure trips more often.

·∙    Land based sports are most popular in india.

·∙ Trekking is most popular among all, though those between the age of 14-18 and 40-45 like to go on

trekking the most.

·∙ School and colleges organize special camping and other trips for their students.

·∙ College educated individuals are more likely to go for adventure tours.

·∙ Corporate houses are taking up adventure tours as incentive tours and team building exercise.

Characteristics of The Urban Youth

Although most of Indian travelers go for either pilgrimage or sightseeing tours, adventure trips are catching on

among school students and especially college students. Also, once these college students pass out and take up

jobs, they don’t want to let go of the thrill of adventure even though they don’t have much time for it. So,

professionals are a major contributor to short adventure trips as they have quite some money and very less time.

With decreasing leisure time and increasing incomes, trips short in duration but high on action are a win win

with the urban youth. Activities that need training and expertise get limited to a very few who have the time and

money to invest into this activity. For example, Bungee Jumping or White water rafting. These don’t need any

training and take no time at all!

People who would probably take up an adventure trip are ones who want to explore new things and try new fun

and cool activities. Some do it for others, some for themselves. A general trait among this section is going in

groups, with an idea to have fun with each other. It would be profitable to offer group packages and discount

for such groups.

This segment shows a varying quality when it comes to their motive for the trip. Some do it to prove their own

mettle to themselves. Some would think its fashionable and do it so that they have something to boast about.

Most of them, though, do it for the sake of it.

Elan adventures essentially represents the passion for adventure, be it extreme or soft. The core services are all

high on physical activity and the hunger for exploration. Now, if Elan were to differentiate itself from the

umpteen tour operators in India and make itself an established brand, it must go beyond just being a service

provider to standing for a value. Standing for something that resonates with the young hearts. The Love for

adventure.

Most operators in the market segment their consumers by their objective for the trip, say fun, thrill etc.

Proposed here under as new profiling system, which delves deeper and divides the travelers by the inherent

‘motivation’ behind them undertaking this journey or this activity. This approach grows out of the insight

model, where Walle offered a definition of adventure tourism as “the quest for insight and knowledge (rather

than risk) that underlies adventure tourism.” (1997). Furthermore, Ewert saw it as the “deliberate seeking of risk

and uncertainty of outcome” associated with adventure recreation. When discussing Maslow’s theory, Walle

implies that individuals, by not fully addressing their safety needs, do accept a certain element of risk and

danger in order to satisfy higher level needs through adventurous pursuits. Here, risk takes on a central role as

satisfaction with the experience, and a desire to participate may decrease if risk is absent. In this context, risk is

most commonly equated to the physical risk of serious injury or death.

This model then lists the characteristics of adventurers.

• The adventurer seeks risk for its own sake and because of the emotional rewards provided by

experiencing it.

• Contrary to the theory that they don’t care about safety, research has shown that they are very much

concerned with safety and equipment.

• Although they seek out increasingly difficult and challenging opportunities, they paradoxically do not

necessarily seek higher levels of risk.

• Adventure for them is a “search for competence with a valuation of risk and danger”.

• A Completely different side of this is adventure tourism with no risk, like jeep safari or bird watching.

The driving motivation behind such activities is knowledge and exploration.

The “X” factor Model of adventure seekers

A scale called “X factor scale” is made which signifies the level of risk involved in the adventure activity.

Depending upon the kind of trips and adventures a particular category of adventure traveller would undertake,

he/she is given a X factor rating which determines how far would he/she would probably go.

Higher a person on this scale, More adventurous and experimental he/she is. The two ends of this scale would

be –

Soft adventure Extreme sports

Based on this scale, individuals are divided in following groups

1. Adventure Junkie – An extremist, this person lives to live on the edge. Strong character and a bold

personality are his usual traits. Underneath it all, its all about self-worth. He HAS to know that he can

take it all. He has to prove his might to himself, not others. This is the person who is chasing that pure

exhilaration and the knowledge that he is capable and competent. He would indulge in the extreme

sports and activities with high /highest X factor.

2. Thrill seeker - A notch lower than the junkie. A thrill seeker wants that high, that excitement which

adventure sports of medium risk provide. This would lie in the middle and little higher part of the scale.

The motivation for this person would be to have those moments of brilliance in an otherwise less

interesting life.

3. Escapist - This is a person living a life he never thought he would live, or a life he is not happy with. He

is running away from reality, looking for solitude and peace. He would go to picturesque and relaxing

places. The risk factor is not definite in this case. This kind of person would mostly travel alone.

4. Weekend Wannabe – A Corporate slave, who probably only has 2 days off. He might be too busy with

his work but he wouldn’t accept that he is leading a less fashionable life. He has to keep up a show of

living a fabulous adventurous life. He prefers close locations. He wants to do cool stuff that he can feel

good about doing and can show off to his colleagues. Social image and esteem are a priority. He would

typically indulge in medium and low risk adventure sports.

5. Family Guy - low risk trip where physical effort is not much, so it is easy for elders as well as children.

Generally pay more. Generally fathers who want to please their children and have a pleasant family time.

Such trips also can signify bonding between family members.

6. Elder but not old - adventure seekers of the yesteryears who just don’t wanna give up. Will do as much as

the body will allow. This segment needs the planner and guide most. They don’t want to give up on the

thrill just because they are old. Probably have a motto – winners never quit.

7. High on Life - teenagers and early 20s. As common at this age, people want to conquer the world. The

new adults feel they can win it all, do it all and if there is something out there that needs guts, they just

have to do it. They want to live their life to the fullest before they get tangled in responsibilities of life.

Market Segmentation

I. Schools (16-18 yrs)

II. Colleges (18-24 yrs)

III. Corporate Houses ( 24 – 35 yrs)

IV. Individuals ( 18-35 yrs)

School Students

A typical school student would generally go to adventure trips in groups, mostly with family or with a supervisor.

It can be a family or school trip, always pre scheduled. The risk factor is deliberately kept low by the elders in

charge and they usually go for trekking, safaris or sightseeing.

Targeted here would be secondary school children in tier 1 and 2 cities. This segment is a little tricky to deal

with since the communication audience and the consuming audience is not the same. Although the ultimate

consumers are the kids, the decision for them is taken by their teachers and parents.

Students below 16 years of age are left out of this circle as they have even lesser say in these decisions, also they

are deemed too young for adventure sports. This, though, is a prevailing notion but not an unusual one.

Frequency of trips : Once a year

Motive : Summer Holiday Fun. It is the School’s initiative to take its students to tourist spots in groups, which

they otherwise wouldn’t be able to do.

Duration : 4 – 7 days

Budget : 2 – 4 lacs

Activities : trekking, Sightseeing, jeep safaris & camping

Agency booked : General tour operators. Adventure operators hired only if a specialized activity is scheduled.

College Students

Once a student enters college, they are considered to be old enough to take their own decisions. This segment is

the strongest and a very large target section for any adventure sports operator. Several factors make this segment

appealing – Disposable income in form of pocket money, greater control over the decision making process,

better scope of adventure trips as they make new friends and gangs, and most importantly, the thirst for thrill

and adventure which comes naturally with their elevated freedom.

This segment includes the students in undergraduate as well as postgraduate colleges. A majority of this segment

stays away from home, so the inhibitions are eliminated. And since they live on their own, they decide where

they spend their monthly budget. This gives way to very unpredictable and impulsive lifestyle that young people

generally take pride in.

Frequency of trips : Once, OR, Twice a year

Motive : Break from hectic academic schedules, fun, experiencing the thrill of travel and rush of adventure on

their own for the first time, Breaking free from the “kid” role and making their own decisions.

Duration : 3 – 5 days

Budget : Depends on the size of the group. If a group of friends, about 5 k per head. If an official college trip, 2

– 3 lacs

Activities : Almost everything that they fancy! Since they are over excited, they want to go for the toughest things

out there. Bungee jumping, river rafting, cliff diving, rock climbing, mountain biking, paragliding, parasailing

and recently skiing.

Agency booked : This segment seldom consult with any tour operator since they are very money conscious. Also,

the tendency to want to go against the flow and take a risk inspires them to do everything on their own.

On the contrary, an official college trip would be generally handled by tour operators. These are mostly local

operators who don’t charge much and offer a wider range of activities at an affordable price.

Corporate Houses

The recent times are seeing the trend of big multinationals taking out large batches of their employees on trips

and excursions for building synergy and as a team building exercise. Since they go out in large numbers, the

companies usually hire tour operators to conduct these trips for them, who can handle the entire trip, from

transportation to food and stay.

This segment offers a highly profitable business to the tour operators since the budgets are usually huge and the

publicity is exponential.

Frequency of trips : Standard – Once in 10 months.

Motive : A Human recourse decision for Team Building, employee motivation and internal PR.

Duration : 2 – 4 days

Budget : 3 lacs onwards (depending on size of team. The standard rate per head varies between 1000 to 3000

and company to company)

Activities : Camping, nature trails, trekking, Rafting, Kayaking, rock climbing, swimming, rappelling etc.

Agency booked : Yes! Proper adventure tour operators that handle the trip completely. Usually the companies

stick to one operator if they once find the services are good.

SWOT Analysis

Strengths

Be it in the form of corporate activities, outdoor programmes for children or weekend activities for parents,

adventure sports is gradually making its presence felt even in our country and culture. It is starting to find place

and acceptance among young people and adults as well. What used to be a hobby for nature and adrenaline

freaks some years ago is now being embraced by a larger urban public. In the past ten years, there has been rapid

diversification in the leisure, recreation and tourism activities in India, which can be attributed to the booming

Indian economy. The rapidly growing disposable income among people has generated a sizeable demand for

trained professionals in the industry

Other factors contributing to the growth of the profession are lifestyle changes. One-third of people in India are

young, who often look out for adventurous leisure activities. Secondly, there is increased awareness about the

importance of creatively utilising one’s spare time and developing hobbies that aid in personality development.

Thirdly, popularization of sports by the central and state governments and private agencies has also played a

significant role. Much of the fascination with adventure has been triggered by brands like Red Bull, Mountain

Dew, and even Bajaj Pulsar who leverage the aspirational adventure platform to establish a market for

themselves. Their smart adverts and BTL activities have played a role in the growing awareness and

consumption of adventure related goods and activities.

The continuous scale of adventure tourism in India is mainly because of its different geography and climate. On

land and water, underwater and in the air, you can enjoy whatever form of adventure in India you want. The

hilly regions present many opportunities for mountaineering, rock climbing, trekking, skiing, skating, mountain

biking and safaris, while the flowing rivers from these mountains are ideal for river rafting, canoeing and

kayaking. The oceans are not far behind as well. The huge and profound area of water provides many chances

for adventure sports in the form of diving and snorkeling.

Outdoor adventure is on the rise. Improved infrastructure is also allowing people to venture out in the wild.

There are better roads today. Public transport can take you to most places of natural beauty for cheap rates.

And then all you have to do is climb the mountain or walk a few miles to get to a spectacular place.

Weaknesses

The adventure sports and offbeat travel industry is still in the infancy stage. There is a scarcity of trained &

professional manpower to meet the operational requirements of the industry. The Market place itself is not

synchronized and organized yet. There is a lack of adventure gene code in Indians.Barring the semi trained

locals of the area conducive to adventure sports who end up being operators for the other consumer, the urban

upwardly mobile below 35 segment, the regular Joe is still aversive to any adventure.

India is a country blessed with all different kinds of terrain but still doesn’t boast of a thriving adventure

industry. Scuba & Sky diving, mountaineering, ballooning, trekking & camping, rafting, kayaking, etc ranks so

low as a destination and a market for adventure travel & goods.

Though adventure tourism has come a long way in the last decade or so, a lot of ground still needs to be

covered. Matters like the use of satellite phones by adventure tour operators in the course of their work need to

be resolved. Tourism being a state subject, there is need for a national adventure tourism policy that is endorsed

by all the states. Some operators in the far-flung regions of the country still have to adhere to national and

international benchmarks in safety and adopt the good field practices that are advocated by the Global

Sustainable Tourism Criteria.

The Indian adventure travel fraternity, which is a 200-member community, represented by the Adventure Tour

Operators' Association of India, strongly feels that India has the potential of becoming a global hotspot for

adventure and ecotourism. The current market stands at an estimated Rs.400-Rs.500 crore.

Opportunities

The market for adventure sports in India is still in a nascent stage.However, people are opening up to the

need for adventure, so as to become tougher and more self-reliant in their everyday lives. The industry is

working in close cooperation with the Ministry of Tourism to harness this potential in a sensitive manner and

to take Indian adventure tourism quite literally to the summit.

Threats

One obstacle that the industry is facing is the lack of synergy between the government and the operators.

Otherwise it is a good product in terms of quality as major operators provide international safety measures. A

lot of tour operators have been consistently taking efforts to boost the sector in India.

Also, the equipment required for such activities are very expensive; the equipment made in India isn’t reliable

enough to encourage people to take the plunge.Also, the bureaucratic red-tapism and the tedious rules and

regulations in India are a deterrent to the growth of adventure sports as a business here.

PEST Analysis

Political

Government has not promoted adventure sports in spite of India being a country with all kinds of terrains that

support any kind of adventure sports.

Economic

People now have higher disposable incomes, which is increasing with the economy flourishing. This directly

translates into more money to spend on things/activities people like. There is improved infrastructure and

better public transport system that is a plus for the industry. The tourism industry is in its growth phase and the

potential of India as a global tourist spot is just beginning to realize.

Socio-cultural

People are opening up to new areas of entertainment. There has been a significant change in the pattern from

the time when people used to go on vacations once a year - to now - where every weekend one is ready to escape

from their busy schedule & enjoy the weekend exploring new places and new ways to keep them entertained.

Especially, 18-35 age group often look out for adventurous leisure activities.

Technological

Technological changes like the advent of internet have hugely changed the face of the tourism industry. Earlier

every booking – flights, railways, hotels, tours – used to be done through the offline travel agents. But now,

internet has changed the whole scenario. These offline agents cease to exist. People have started to book all of

these online – through the company’s websites or the online travel agents like Make my trip, Yatra, Cleartrip

and so on. People want to compare every website to get the lowest cost possible, and therefore, he/she has

started exploring new options.

Existing Players & Corporate Clients

Some of the existing players in the adventure sports market are as follows:

S

no

Name of

Company

Started

in

Origin Services offered Extra Facts

1 Treks n rapids pvt

ltd

2002 Mumbai Trekking, rafting, rock

climbing, skiing, aero sports,

safaris, marine sports,

mountain biking, bungee

jumping

Over 200 corporate

clients.

Alcatel,citibank, The

DoonSchool,HCL,In

telenet,etc.

2 Mercury

Himalyan

Explorations

1982 New Delhi Trekking, rafting, paintball,

safaris, fishing, camping,

Leadership camps, corporate

training

National Award

winner. Also

organises various

camps for corporate

personality

development &

youth leadership.

3 Wonderlust 1988 Delhi Camel safari, fishing, bicycle

tours, trekking, rafting,

scuba-diving, skiing, river

running

Specializes in

handling Inbound

adventure tours.

4 Thrillophilia Bengaluru Wildlife safaris, trekking,

camping, rafting

More than 120

corporate

outbounds.

5 XTREME Zone

India

2003 Bengaluru Kayaking, rapelling,

campfire, raft building,

paintball, boating, rock

climbing

Also organises dance

events along with

sports activities.

6 GO Adventure

sports

2005 Panchkula Rafting, kayaking, trekking,

wildlife safari, sport fishing,

heli fishing, scuba diving,

desert safari, para gliding,

hang-gliding, road trips

Organises summer

camps for children.

7 India Adventure

Travel

Skiing, trekking, rock

climbing, aero sports,

mountain biking, rafting,

yatching, fishing, canoeing,

forest trails

Specialize in

Inbound Tours to

India, Nepal,

Bhutan, Tibet& Sri

Lanka.

8 Snow leopard

adventures

1990 New Delhi Trekking, river running,

wildlife safaris, horse safari,

cycling, rapelling, fishing,

skiing

Received National

Tourism award in

2010.Very reputed

organisation. Also

deals in outbound

adventure activities

in Bhutan,Nepal&

Tibet.

9 Katabatic

Adventure Sports

pvt ltd

2005 Gurgaon Rafting, kayaking, trekking,

camping, training programs

Also holds

Corporate team

building

programmes.

10 Flying fox UK based Rapelling, team games Operates only in

Neemrana,Punjab&

Jodhpur. Clients like

Accenture,Wipro,YE

Sbank,Maruti

Suzuki.

11 AXE Adventure

sports pvt ltd

2002 Bengaluru Abseiling, Archery,

Canoeing, gorge walking,

kayaking, mountain biking,

paintball, para sailing, raft

building, rock climbing,

treasure hunt.

Provide Customized

Corporate team-

building, corporate

outbound training

programmes.

12 Red Chilli

Adventure

Rafting, trekking, wildlife

safari.

Specialize in trekking

& rafting tours.

Operate in

Uttarakhand,Himac

halPradesh,Ladakh,

Arunachal Pradesh

Following is the list of some of the existing corporate clients:

Microsoft India Motorola

HDFC Bank Honeywell

HDFC Mutual Fund Mahindra

Standard Chartered Bank SAP

Ebay India IBM

NDTV Good Times Ernst & Young

ICICI Prudential Life Insurance Tata Motors

RGA ( Reinsurance Group of America) Siemens

DCNS India McAfee

RABO Finance India Nokia

SBI Life Insurance TCS

Red Bull AOL

Genpact Shoppers’ Stop

Dbolt Goldman Sachs

Infosys Oracle

Wipro UB Group

Ericsson GE

Lemon tree hotels Indian Oil

Reliance Industries HCL

Keane Mind Tree

NTT Data Dell

Accenture Samsung

ITC Limited Cisco

Philips Airbus

Bosch KPMG

Sasken Marks & Spencer

Comcast Logica

National Geographic Indus Outback