infosessie india

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- 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


• 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.


Drivers of Outbound Tourism

Growing and Affluent middle class

Strong Consumption Patterns

Higher Disposable Income


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


•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.


•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


•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


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 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


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.


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


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.


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

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