Amazing Thailand In India March 2010 Seminar


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Amazing Thailand In India March 2010 Seminar

  1. 1. By Chattan Kunjara Na Ayudhya TAT New Delhi Office
  2. 2. India’s Potential <ul><li>Per Capita Income rising by 5% per year </li></ul><ul><li>Per Capita Expenditure rising 10% per year </li></ul><ul><li>“ Look East” policy by countries is Indian-friendly </li></ul><ul><li>India is the fastest wealth creator in the world. Now there are 1 million US$ millionaires in India. With this newfound wealth comes the burning desire to flaunt it. </li></ul><ul><li>India is a young country, with almost half of its population under the age of 20. About 22 million middle class teenagers live in India’s cities. They have a hunger for knowledge, wealth and to travel beyond India. </li></ul>
  3. 3. <ul><li>Economy grew at an average of 8.5% yearly for past 3 years. </li></ul><ul><li>Now a trillion US$ economy and world’s 12 th largest economy. </li></ul><ul><li>Likely to become one of the world’s top three economies in the next 20 years and world’s second largest consumer market in a few years. </li></ul><ul><li>Growing middle class of 300 million people. </li></ul><ul><li>And that’s not all… </li></ul>
  4. 4. <ul><li>Population now over 1 billion people, may overtake China by 2030. </li></ul><ul><li>Second largest diaspora of any nation. NRIs (non-resident Indians) and persons of Indian origin making economic impact around the world. </li></ul><ul><li>Cheap, ambitious graduates that number more than the entire population of France. </li></ul><ul><li>Estimated 80 million Internet users in 2010. </li></ul>
  5. 5. India’s Up, Up and Away (GDP) (100 billion US$)
  6. 6. The Many Faces of India <ul><li>Rich India </li></ul><ul><li>- US$10,000+/year/household head </li></ul><ul><li>- 1.2 million households </li></ul><ul><li>- Expanding by more than 20% per annum </li></ul><ul><li>- Travel abroad frequently </li></ul><ul><li>- Concentrated in big cities </li></ul>
  7. 7. <ul><li>The Wanna-Be India </li></ul><ul><li>- US$4,000-10,000/year/household head </li></ul><ul><li>- 40+ million households </li></ul><ul><li>- Expanding by over 10% per annum </li></ul><ul><li>- Will number 65 million households by end of 2010 </li></ul><ul><li>- Growing quickly in Tier 2 cities </li></ul>
  8. 8. <ul><li>The Uphill Climb India </li></ul><ul><li>- US$1,500-4,000/year/household head </li></ul><ul><li>- 110+ million households </li></ul><ul><li>- Mass migration into cities </li></ul>
  9. 9. <ul><li>Poor India </li></ul><ul><li>- Below US$1,500/year/household head </li></ul><ul><li>- 40+ million households </li></ul>
  10. 10. Indians Love to Travel <ul><li>International departures from India grew from 3.7 million in 1997 to 9.8 million in 2007. </li></ul><ul><li>50 million outbound trips by 2020, US$28 billion spending. </li></ul><ul><li>In 2007, Indians spent US$8.2 billion on foreign travel alone, up from US$1.3 billion in 1997. </li></ul><ul><li>On average, Indians spend US$1,789/person/trip. </li></ul><ul><li>Over 28 million passport holders. </li></ul>
  11. 11. More Money = More Travel (million trips)
  12. 12. Thailand is No. 2 in Asia for Indians, No. 3 in the world <ul><li>Approximately 614,531 Indians visited Thailand in 2009, second only to the 725,536 Indians who visited Singapore. Thailand is No. 3 in the world after Singapore and U.S.A. </li></ul><ul><li>TAT targets 650,358 arrivals for 2010, a 5.83% increase. </li></ul><ul><li>For a tourist market with over 100,000 arrivals into Thailand in 2009, India registered the highest growth rate at +14.45%. </li></ul>
  13. 13. So what can Thailand do? <ul><li>The Amazing Thailand, Amazing Value campaign is proactively promoted in India: </li></ul><ul><li>- Thai-ness </li></ul><ul><li>- Beaches </li></ul><ul><li>- Nature </li></ul><ul><li>- Heritage </li></ul><ul><li>- Health & Wellness </li></ul><ul><li>- Chic & Trendy </li></ul><ul><li>- Festivals </li></ul>
  14. 14. Positioning: Common Messages <ul><li>Thailand is value for money. </li></ul><ul><li>Thailand is fun for the whole family. </li></ul><ul><li>Thailand means quality holidays. </li></ul><ul><li>Thailand is close. </li></ul><ul><li>Thailand is variety. </li></ul><ul><li>Thailand is like a nice in-law. </li></ul>
  15. 15. The Consumer Promise Thailand is a year-round holiday destination for the entire family that offers high quality products and services at great value for money.
  16. 16. Getting to Know the Indian Tourist <ul><li>The most price conscious in the world. </li></ul><ul><li>- Will always look for savings. </li></ul><ul><li>- Have great perseverance in bargaining. </li></ul><ul><li>- Won’t spend more than what he has. </li></ul><ul><li>Cash rich but time poor, especially middle class. </li></ul><ul><li>- Want improved quality in a short time. </li></ul><ul><li>- No room for errors. </li></ul><ul><li>Willing to splurge for personal enjoyment, i.e. shopping, entertainment, spas, sports, dining, etc. </li></ul>
  17. 17. <ul><li>Among the fastest learners on the planet. </li></ul><ul><ul><li>Always watching & observing. </li></ul></ul><ul><ul><li>Curious about other cultures. </li></ul></ul><ul><ul><li>Ready to adapt & adopt new things while traveling. </li></ul></ul><ul><ul><li>Seek out new experiences for “boast” factor. </li></ul></ul><ul><li>Most are fluent in English. </li></ul><ul><li>Do lots of research before traveling. </li></ul><ul><li>Very late bookings. Wait for last-minute deals. </li></ul>
  18. 18. <ul><li>Travelers in 25-44 years old range, up to 65 years old </li></ul><ul><li>65% male/35% female </li></ul><ul><li>In India, from North & West 65%, South 25%, East 10% </li></ul><ul><li>Educated and from upper social status </li></ul><ul><li>Usually married (75%) with children in same household </li></ul><ul><li>Travels with family members (66%) </li></ul><ul><li>Traditional holiday period is April-June because schools closed </li></ul>
  19. 19. <ul><li>But 2009 was a strange year….. </li></ul><ul><li>- October-December had greatest number of tourists to Thailand, with December 2009 showing most increase of +96.63%. </li></ul><ul><li>- This sharp rise was due to confidence in the economy and major companies paying withholding bonuses until year’s end. </li></ul><ul><li>- Anomaly or trend? Is Thailand now a year-round destination? </li></ul>
  20. 20. Other Must-Know Facts… <ul><li>Hindus don’t eat beef! No </li></ul><ul><li>About 40% of Indians are vegetarians! Yes </li></ul><ul><li>13.4% of Indians (over 156 million people) are Muslims! </li></ul><ul><li> No </li></ul><ul><li>Late lunch (1.30 p.m.) & dinner, usually 9-10 p.m! </li></ul><ul><li>Make sure you have some Indian food on the menu! </li></ul><ul><li>Indians drink alcohol, but usually only at parties! </li></ul><ul><li>Many Indians like Thai food, but not all. Some may be allergic to Thai spices! For Indian food, they expect to be served by waiters. </li></ul>
  21. 21. More Fun Stuff… <ul><li>Indians prefer hotels with good accessibility to shopping, food and nightlife. Can be anything from luxury pool villas to more modest three-star accommodation. </li></ul><ul><li>Indian males are not heavy smokers. </li></ul><ul><li>There’ll be endless requests for room service and assistance. Room temperature drinking water is a must. </li></ul><ul><li>Overall, Indians appreciate warm smiles, courtesy and a relaxed atmosphere – everything they’re not getting at home! </li></ul>
  22. 22. <ul><li>Indians have 3 main travel periods </li></ul><ul><ul><li>School holidays (April 15-June 30) </li></ul></ul><ul><ul><li>Diwali (5 days around late Oct.-early Nov.) </li></ul></ul><ul><ul><li>Christmas & New Year (late Dec.-early Jan.) </li></ul></ul><ul><li>Indians get visa on arrival at airport </li></ul><ul><li> - Visa fee exemption important </li></ul><ul><li>Like LCD TVs, electric kettle in room, Bollywood movies, & cricket </li></ul>
  23. 23. Why Travel? <ul><li>- Business (40%) – Including MICE! </li></ul><ul><li>Holiday (20%) </li></ul><ul><li>VFR (Visiting Friends & Relatives) (20%) - Strong growth </li></ul><ul><li>Others, like education (20%) </li></ul><ul><li>* Corporate travel good whole year. *Honeymoons peak Nov.-Dec. & Feb.-Mar. </li></ul><ul><li>*FIT fastest growing segment. </li></ul><ul><li>*Groups mainly first-timers and seniors. </li></ul>
  24. 24. More Into Niche Experiences <ul><ul><ul><ul><ul><li>Sports tourism </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Luxury travel </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Weddings – late Sep.-Dec. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Honeymoons & anniversaries </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cruises </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Bollywood filming </li></ul></ul></ul></ul></ul>
  25. 25. What Kind of Thailand Holiday? <ul><li>Shopping & food </li></ul><ul><li>Sightseeing/entertainment/nightlife </li></ul><ul><li>Exploring new country </li></ul><ul><li>De-stress </li></ul>
  26. 26. <ul><li>What matters on holiday? </li></ul><ul><li>Nature & environment </li></ul><ul><li>Culture & Art </li></ul><ul><li>Safety </li></ul><ul><li>Hygiene </li></ul>
  27. 27. What influences decisions? <ul><li>1. Internet </li></ul><ul><li>- Vital initial opinion formed. </li></ul><ul><li>2. Travel Agents </li></ul><ul><li>- Face-to-face consultation deciding factor. </li></ul><ul><li>3. Print Media </li></ul><ul><li>4. Recommendations by friends </li></ul>
  28. 28. What You Must Do… <ul><li>Work with travel agents in New Delhi and Mumbai (65% market share). </li></ul><ul><li>Make sales calls to India (Indians want to feel important). Come with other properties too. </li></ul><ul><li>Have an attractive website (remember – 80 million users). </li></ul><ul><li>Join TAT road shows & travel shows. </li></ul><ul><li>Consider hiring a representative. </li></ul><ul><li>Invite travel agents and media to you. </li></ul><ul><li>Make friends with Thai travel agents. </li></ul><ul><li>Train your staff about this market & its consumers. </li></ul>
  29. 29. Requirements for Success <ul><li>India’s continued economic growth </li></ul><ul><li>Thailand’s political stability and safety guaranteed for Indian tourists </li></ul><ul><li>Thailand remains attractively affordable for holidays </li></ul><ul><li>Increased flights to Thailand, preferably from Indian cities to regional tourist destinations </li></ul>
  30. 30. <ul><li>Regular two-way travel between the two countries </li></ul><ul><li>*Overcoming old ideas and embracing new challenges </li></ul>
  31. 31. <ul><li>Bollywood star Priety Zinta on a trip to Thailand after the Tsunami on December 26, 2004: </li></ul><ul><li>“ The voyage is an affirmation of life.” </li></ul>
  32. 32. <ul><li>ขอบคุณครับ </li></ul><ul><li>Thank You </li></ul><ul><li>Danyavad </li></ul>