infosessies intercontinentale

markten

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 OutlookGeographic 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 marketMumbai

(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

• Outbound Travel: Over 12 million

As per Euro Monitor:

Estimated to reach 16.3 million

By end 2011

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 ]

Estimated growth:

15-20% per annum [ 60 % Business & 40

% Leisure / VFR / Immigrants ]

More than 48 million people with valid passports.More than 48 million people with valid passports.

India- Travel Market Outlook

Drivers of Outbound TourismDrivers of Outbound Tourism

Growing and Affluent middle class Growing and Affluent middle class

Strong Consumption Patterns Strong Consumption Patterns

Higher Disposable Income Higher Disposable Income

India- Travel Market OutlookAsia 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 FlandersVisa 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 FlandersJet 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 FlandersJet 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 FlandersOvernight Stays 2009

Overall Total foreign

travelersIndian

travelers%

IndiaRanking

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 FlandersIndian overnights in Flanders

___________________________________________________________________________ ___________________________________________________________________________ NRIT Trendsymposium NRIT Trendsymposium

Kust

Kunststeden

Vlaamse regio’s

Wallonië

1%

16%84%

Indian Market share in FlandersThe 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%

39.17757%

29.99943%

Flemish region Brussels region

16.31047%

18.24753%

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 TouristProfile

•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 destinationEnvironment – 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 TouristPeak Outbound Travel Season

WINTER HOLIDAYS

(a) Around Diwali Festival (Oct/early Nov)

(b) Christmas & New Year Period

WINTER HOLIDAYS

(a) Around Diwali Festival (Oct/early Nov)

(b) Christmas & New Year Period

SUMMER HOLIDAYS

(15 April - 30 June

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 TradeImportant Players in the market

The Indian Travel Trade

Flemish Products offered

The Indian Travel TradeFlemish 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 IndiaOnline Market Players

Online Market In IndiaApproach

Online Market In IndiaApproach

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 ScenarioDrawbacks

• 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 ScenarioTips 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