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 anothermother tongue. There are about 80 of them, of which 21 arescheduled official languages, English is widely used inbusiness.•An estimated 180mn Indians, including most people affluentenough 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 OutlookOne of the fastest growing economies in theworld
India-Macro Outlook•Country in upswing with stabilized political and economic situation•Indian economy has regained momentum; Growth in the fiscalyear that ends in March 2011 would accelerate to 7 to 8% aftergrowing by about 7% in 2009/10•Indias financial hub Mumbai and political capital Delhi are likely towitness a significant jump in economic growth along with otheremerging markets and make it to the league of the worldswealthiest cities by 2025•5th Largest consumer market by 2025•The luxury products market is likely to grow at a CAGR of 28 percent to reach US$ 1.2 billion by 2010. The market is expected todouble 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) & 11.7million (2009) [Source: The Ministry of Tourism]•After the global economic slowdown, the Indian travellers are optingfor short haul destinations, a low airfare, and best affordable 4-staraccommodation hotels and prefer traveling•Intra-regional destinations have become more popular thandestinations further field (per a recent MasterCard survey)•Over 70% of business travelers were looking to increase orconsolidate their spend on corporate travel and 39% will beincreasing their corporate travel budgets [FCM Travel SolutionsSurvey 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 Estimated growth: 15-20% per annum As per Euro Monitor: [ 60 % Business & 40 % Leisure / VFR /Estimated to reach 16.3 Immigrants ] million By end 2011 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 OutlookAsia is the most traveled region followed by Europe in their mostrecent trip abroad among Business and Leisure travelers. Leisure Travel Business Traveller America 5% America 5% 8% 13% 14% Europe Europe 1% 18% Africa Africa Asia 2% Asia 72% 63% South South Pacific Pacific
India- Travel Market Outlook•FIT Travel is showing the highest growth•Growing demand for niche products – off the beaten track locationsand activities•Average length of holiday is getting longer; they travel with families,and have high repeat visitation rate to preferred destinations (as perPATA)•Relaxation in Government regulations . – bank finance, credit cardissuance and usage•Cruise and Theme Park tourism rapidly increasing•Growth in MICE business – travel based rewards very popular.•With economic liberalization overseas Convention and Exhibitionvisits have rapidly increased.
India- Travel Market Outlook Future Outlook•Increase in capacity of carriers toEurope has improved travel outlook•The domestic air traffic will reach150-180mn pax per annum; while theinternational traffic will reach 50mn by2020. (Source: CAPA)•The outbound travel market is stilllargely untapped vis-à-vis the sheersize and current potential.•The changing profile of the travelerwill continue to create demand forniche and unique tourism products.
India- Travel Market Outlook Future Outlook•The Indian Rupee will remain relativelystable against the US Dollar•The Government has made severalfiscal reforms – stimulating large andmid sized businesses•The market remains buoyant andstrong
Indian Market share in Flanders Visa Situation•Visas are required for Indianstraveling as tourists to the Schengencountries and all other Europeancountries.•Nominally a Schengen visa can beissued in three or four days, but inpractice the process may take aweek• Visas in India can be acceptedthrough Global VFS, which furthersend the applications to theEmbassy in Delhi or the Consulatein Mumbai for further processing thevisas.
Indian Market share in Flanders Jet Airways/Qatar/Etihad•Indian carrier Jet Airways madeBrussels its hub in Europe andbegan flying to USA and Canadaeveryday via Brussels from Delhi,Mumbai and Chennai•This really helped increase trafficto Brussels and Flanders fromIndia and create awarenessabout the destination.•Besides Jet Airways, entrantslike Qatar and Etihad Airwaysalso help increase arrivals fromIndia to Flanders
Indian Market share in Flanders Jet AirwaysThis graph shows the impact of the Indian visitor arrivals inFlanders over the last 10 years. The volume of the Indian marketalmost tripled in 10 years (+190%). We see the biggest growth inthe last 2 years, since Jet Airways is flying to Brussels 120.000 100.000 80.000 60.000 40.000 20.000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Indian Market share in Flanders Overnight Stays 2009 Overall Total foreign Indian % Ranking travelers travelers India IndiaArrivals 5.688.647 34.557 0.6% 19thovernightstays 12.466.741 69.176 0.6% 19thlength ofstay (nights) 2,2 2,0
Indian Market share in Flanders Indian overnights in Flanders1% 16% 84%KustKunststedenVlaamse regio’s ___________________________________________________________________________Wallonië NRIT Trendsymposium
Indian Market share in Flanders The Indian market in Flanders by region 2009 [arrivals (left) and overnights (right)] 29.999 43% 16.310 47% 18.247 53% 39.177 57% Flemish region Brussels region arrivals % Overnights %Flemish region 21.152 47% 60.993 58%Brussels region 18247 53% 44.430 42%Flanders 53.723 100% 29999 100%
Indian Market share in Flanders Indian overnights in the historic cities 200935.000 29.99930.00025.000 20.93420.00015.00010.000 5.000 2.524 2.630 1.006 903 0 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 internationalleisure trips – 84% (PATA•Leisure & sightseeing are the key motives for internationalholidays. (PATA Nielsen)•Indians prefer multi destinations / locations•Love shopping – 50% say that shopping is one of their mainreasons for travelling abroad. According to ACNielsen, 73% buyduty-free goods•Package tours tend to opt for 3 or 4 star hotels, whileindependent travellers often choose more up-marketaccommodation.
The Indian Tourist Profile•67% of Indian outbound travelers now use credit cardsunlike 5 years back. Many banks and tour operators nowoffer 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 bynewspapers/magazines, travel agencies,recommendations from friends & TV.
The Indian Tourist Peak Outbound Travel SeasonWINTER SUMMER HOLIDAYS HOLIDAYS(a) Around Diwali (15 April - 30 June Festival (Oct/early Nov)(b) Christmas & New Year Period
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 thanthe 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 gourmetexperiences.
The Indian Tourist Spending Habits/Characteristics•They are increasingly lookingfor “rich experiences” through avaried range of activities andattractions.•There is a new league ofdiscerning sophisticatedtravelers, who appreciatecontemporary art, musicalconcerts, designers andfashion etc.•Based on regional and culturalbiases – people in the samesocio-economic segment havedifferent 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 withVegetarian options• Always provide them with a list of shopping areas especially theoutlet shopping areas as that is something their clients will alwaysask them for• Ensure your itinerary covers all the important elements of the cityalong with sufficient time for photo-stops.• Try and create all inclusive 3 star hotel packages. Indian familiesgenerally opt for this option the most. Avoid too many additionalhidden costs•Visit India from time to time and meet with the Indian travel industryin order to increase potential business
Tips while dealing with Indian Trade What sells/What does not•Theme Parks because generally Indians travel with their familiesthat include young children•Indians are avid shoppers therefore Flemish cities provide anexcellent opportunity for those indulging in retail therapy• Villages for eg would not be the most ideal experience for anIndian, as although it may be the past for the Europeans it is thereal 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 drinkor delicious meal in a relaxed atmosphere at Flemish townsotherwise bustling with life.
Tips while dealing with Indian Trade Cautions• Don’t offer credit facility to the Indian Travel agent unless youhave worked with them in the past• Check credibility of the agent before working with them•Indians are generally late bookers, and will be constantlytalking 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 thebeginning
Online Market In India India will be a $5.7 B Online Travel Market by End 2010•81 million users - 4th largestin the world 2010•Online travel industryexpected to grow by 51 % 2009•Travel is the largest e-commerce category in India. 2008•Surpass US$ 5.7 billion by2010 ( PhoCusWright) over2.7B in 2008. 2007 $0 $2,000 $4,000 $6,000 $8,000
Online Market In India Online Market Players
Online Market In India ApproachDifferentiated ATL Online BTL Product Marketing Marketing Marketing Offerings Television Micro-site Retail Commercials Unique and Marketing Tangible Print SEM / Advertiseme Value Display nts Additions Direct Social Marketing PR Activities Marketing
Online Market In India ApproachHighlights of Communication Target shoppers:•Increased visibility for destination •HoneymoonersFlanders •Family and Kids•Promote Flanders-as ‘lead the good •Group Travellife”•Art & Architecture, Activities, Food,Shopping, History-endless fun onoffer.
Online Market In India Examples
European Bound Scenario Profile of Indians traveling to Europe•Families on holidays•Young Couples & Honeymooners•Business travellers•MICE (Meetings & Incentives)•Transit Travellers
European Bound Scenario Drawbacks• Typically, Indians regardEurope and North America ashighly aspirational, if expensive,destinations•. Southeast Asia and theMiddle East are closer andcheaper, and (being Asian)within their comfort zone• However, travelers areincreasingly looking for moreadventurous and prestigiousexperiences worldwide.•Visa free short hauldestinations sometimes have anadvantage
European Bound Scenario Tips for Flemish Trade•Indians prefer to have a multi-destinationholidays• The travel trade could be encouraged topackage other complimentary destinations likeAmsterdam, France or London•Regular sales calls to the travel trade in Indiawill help penetrate the market and createawareness•Participation in roadshows like OTR, OTM•Create distinct travel products different fromneighbouring countries concentrating onEurope- A rich experience
Tourism Flanders India Activities•Participation in road-shows or organize product updates tointroduce Flanders to equip travel trade partners to includeFlanders packages in their upcoming European itineraries•Coordinate visits on behalf of Flemish trade to encouragethem to meet and contract with the local Indian trade which inturn would push tourism for Flanders from India•Consumer Contests – we proactively pursue opportunities tocreate a consumer outreach platform; this could includeconsumer contests with strategic partners like cinemamultiplexes, shopping malls and social media networks•Trade activities- Monthly e-newsletter, Product updates, jointpromotions
Tourism Flanders India Activities•Online marketing tie ups with portals usually include banneradvertising on their websites, web link to our website, andcross promotion via popular consumer, matrimonial and socialmedia sites•Since companies have their employees traveling for MICErelated purposes from all across India, we leverage on the factthat Jet Airways has 3 daily flights from Chennai, Mumbai andDelhi to Brussels•Besides above, we will regularly provide fam support tojournalists who are already traveling to Flanders This in turnwill help us to secure incremental destination coverage