This document provides a summary of travel trends across the Indian subcontinent. It discusses key trends such as growing demand for both foreign and domestic tourism, with foreign tourist arrivals increasing by 5.9% in 2013. Supply of hotels is also growing rapidly across major cities in India. The online travel market is growing significantly and online booking is becoming more popular than offline booking due to convenience. Mobile apps are also gaining popularity for travel planning. Other trends discussed include medical, spiritual, and adventure tourism on the rise in India.

1. PART 1
PART 1

2. Travel Trends Across Indian
Sub-Continent
Deepti Kochhar
Pooja Sharma

3. Agenda
 Demand trends in terms of Foreign arrivals
 Demand trends in terms of Domestic arrivals
 Supply trends
 Online and Offline travel market
 Key trends
 Forecast
 On the job learnings

4. Travel Industry

5. POPULAR DESTINATIONS CHOSEN
TripAdivsor : Global Travel Economy Report
Asia : Second
most preferred
destination in
the world after
Europe.

6. Foreign Tourist Arrivals
Year FTAs FROMTourism in India (in miilion) % change over the previous year
1997 2.37 3.8
1998 2.36 -0.7
1999 2.48 5.2
2000 2.65 6.7
2001 2.54 -4.2
2002 2.38 -6
2003 2.73 14.3
2004 3.46 26.8
2005 3.92 13.3
2006 4.45 13.5
2007 5.08 14.3
2008 5.28 4
2009 5.17 -2.2
2010 5.78 11.8
2011 6.31 9.2
2012 6.58 4.3
2013 6.97 5.9
Jan-June 2014 3.54(P) 5.2 @
Foreign tourist arrival (1997-2014)
Source: Ministry of tourism, Govt. of India, 2014
Month wise number and percentage share of FTA’s in India

7. Foreign Tourist arrivals
Share of top 10 UT/State of India in no of foreign tourist visits in 2013
Source: State/UT Tourism Departments

8. DOMESTIC TOURIST ARRIVALS
No of domestic tourist visits to all States/UTs in India (1997-2013)
Source: State/Union Territory Tourism Departments

9. PURPOSE & PEAK MONTHS
OF VISIT
Foreign Tourists-
Domestic Tourists-
Distribution of Social trips on purpose of travel
Distribution of trips by purpose of travel

10. Key tourism circuits in northern states
STATE KEY TOURIST DESTINATIONS
PUNJAB Amritsar, Golden temple, Wagah border, Patiala, Anandpur sahib,
Jalianwala Bagh
DELHI Cannaught Place, Chandni Chowk, Raj Ghat, Bangla sahib, Lodi garden,
Jantar mantar, India gate, Red Fort, Qutab Minar, Lotus temple, Rajpath
HIMACHAL PRADESH Dalhousie, Shimla, Mandi, Hamirpur, Chamba, Manali, Kullu, Solan,
Dharamshala, Kangra, Narkanda, Rohtang, Sarchan
JAMMU & KASHMIR Mubarak Mandi Heritage Complex, Gulmarg, The Mughal Gardens of
Kashmir, Pahalgam, Sonamarg, Leh, Kargil, Vaishno Devi
UTTRAKHAND Dhanaulti, Dehradun, Jim Corbett, Mukteshwar, Mussoorie, Nainital,
Haridwar, Char Dham
UTTAR PRADESH Taj Mahal, Agra Fort, Fatehpur Sikri, forts at Allahabad, Jhansi, Bithoor,
Lucknow, Varanasi, Sarnath
HARYANA Gurgaon, Ambala, Karnal, Panchkula, Kurukshetra, Jyotisar, Thanesar, Morni
Hills, Pinjore
RAJASTHAN Alwar, Dargah Sharif-tomb of the Sufi saint Khwaja Moinuddin Chisti at

11. Destinations at the North-Eastern States
STATE DESTINATIONS
ARUNACHAL
PRADESH
Ziro (hill station), Tawang monastery, Bomdila monastery, Itanagar
ASSAM Digboi, Guwahati, Navagraha temple, Kaziranga National Park, Manas
National Park
MANIPUR Chandel, Bishnupur,
MEGHALAYA Khasi hills, Garo hills, Cherapunjee, Plant, animal and bird kingdom
MIZORAM Caves & lakes of Mizoram, Aizawl, Trekking & mounterring activities
NAGALAND Dimapur, Kohima, Fakim wildlife sanctuary, Trekking in Nagaland
SIKKIM Gangtok, Pelling, yuksam, Temi tea garden, Tsomgo Lake, Phensang
Monastery
TRIPURA Agartala, Kumarghat, Govt. museum, Neermahal water palace,
Also 27.5% are visiting for the purpose of visiting friends and relatives, followed by the purpose of
leisure, holidays and recreation (24%), and business and professional purpose (18.6%).
May is the lean month for foreign visitors while November to February are peak months with
December as the favorite.

12. Rest of the major destinations:-
STATE DESTINATIONS
MAHARASHTRA Foreign tourists for business purpose, Domestic- iskon, sidhivinayak temple, shirdi,
trimbkeshwar temple
TAMIL NADU Kanchipuram(8,05,983),Madurai, Kanyakumari, Rameshwaram,
WEST BENGAL More domestic-Darjeeling, Howrah bridge, Shantiniketan, Sunderbans delta
KERALA Domestic-1.17 crore, Foreign-9.23 lakh, Beaches, backwaters,
BIHAR More domestic tourists than foreign, Patna, Bodhgaya, Nalanda, Vaishali
KARNATAKA Bangalore, Mysore Palace, Mangalore, Hampi, Gokarna
GOA Beaches-Dona Paula, Baga, Colva.
GUJARAT Ahmedabad, Surat, Vadodara, Rajkot, Junagarh & Jamnagar, Bhuj
MADHYA
PRADESH
Gwalior, Kanha national park, Omkareshwar, Ujjain
CHHATTISGARH Chitrakot waterfall, Kailash and kutumsar caves, Kawardha palace
ANDHRA
PRADESH
Hyderabad, Vishakapatnam, Tirupati in Chittor district

13. SUPPLY SIDE OF TOURISM
• More supply created
from 2008/09 to 2012/13
(CAGR 17.8%)
• Large part of supply
proposed in 2006-2007
• Shift to budget and mid
market hotels
• Rising demand with CAGR
17.3% over the last five
years
• Challenge of hotels going
empty on weekends

14. 844
994
1172
1380
1004
1172
1368
1596
2014 2015 2016 2017
No of hotels no of rooms(00's)
119 118
117 116
Average no of rooms per hotel
Next 4 year Projections on the basis of CAGr of Last five Years

15. Key Operating characteristics by hotel classification-Occupancy
Key Operating characteristics by hotel classification-
Average Rate
The five-star segment
registering the maximum
decline (8.7%), followed by
the three-star segment
(4.0%).
• The newly introduced
two-star category
registered the highest
RevPAR growth (10.4%).
• Acceptance of branded
economy and budget
hotels by travelers

16. FUTURE GROWTH-TRAVEL INDUSTRY
Indian Travel and Tourism Industry- Market Size
(2010-2020)
Source: EIU, Red Seer Analysis, web search
Government Initiatives:-
• Ministry of Tourism has
launched a web-based
Public Delivery System
• Tripigator.com, a travel
planning engine, launched.
• Sanctioned Rs 4,090.31 crore
(US$ 680.52 million) for a total
number of 1,226 tourism
projects.
Key driving
factors
• Govt’s boost to
tourism
• Middle class
expected to
increase 10 times
between 2005-2025
• Aggregate
disposable income
from Indian
households-
expected to
increase with CAGR
of 7% between
2005-2025.

17. Expansion plans for global hotel majors in India Brands present in
India Existing
• IHG took a 24% stake in
Duet India Hotels
Group to build 19
Holiday Inn Express
hotels over the next
five years.
• Carlson bought out its
long term local
development partner
RHW Hotel Service
• Choice group
proposes to buy out its
Indian development JV
partners.

19. Proposed Branded Hotel Rooms Across Major Cities (2012/13 – 2017/18)
• 57% of the proposed supply: Budget and mid-market hotels
• 40.1% : Luxury and upscale hotels
• Pune, Hyderabad and Chennai: growing number of mid-level domestic business travelers.

20. OFFLINE AND ONLINE TRAVEL AGENCY
Major Players:-
Online
• Make My Trip
• Yatra
• Cleartrip
• Expedia
• Agoda
• Booking
Other players-
• Goibibo
• Travelguru
Offline
• Thomas Cook
• Cox & Kings
• SOTC
• Akbar Travels of India Pvt Ltd.
• ITDC
• Raj Tours & travels
The consumers love booking online because of two primary reasons-Transparency and
Convenience.
• mobility,
• flexibility
• easy real time access to information.

21. Market share of online travel players (2011) Business models in online travel market-
The offline players are turning online and have their own websites where the booking can be done both online
and offline. The trend towards turning online is becoming common because of increasing online penetration and
conveyance of the customers and quickness of tasks.
Merchant Model
• Contract between
hotels and OTA to
sell base no of
rooms.
• Amount is collected
by the OTA when
customer makes
the booking
• Amount is payed to
hotel owner after
deducting the
commission of OTA.
Example-Orbitz,
Travelocity
Agency Model
• Commission
based model
• The final
amount is
collected by
hotel owner
• The hotel pays
to OTA its
commission.
Example-
Booking.com
Both merchant and
agency model
• Expedia has
Expedia Travel
Preference Model
• The customer can
pay at the site while
making a booking
or can pay at hotel
• The commission
charged remains
same in both cases.
Examples-Expedia

22. Increasing Online trend
India total and online travel markets, gross bookings and annual change %
Source: Phocuswright report, 2014

23. India online travel market, penetration by segment, 2013 vs 2016
Indian Online Travel Market, Annual Change by Online Chann
• Online air gross bookings will exceed $16.9 billion in 2016.
• Online gross bookings for the rail segment rose 13% to reach $2.6 billion in 2013.
• Online car rental bookings were $68 million in 2013 and will swell to $106 million by 2016.
• Online hotel gross bookings will increase more than 23% annually through 2016

24. SOME PITFALLS OF ONLINE TRAVEL
MARKET
Effectively, the OTA’s today are not entirely
addressing the pain identified in the offline
ones. To catch up with the customers’
needs OTAs should have to focus more on
technological innovations/solutions
capable of making holiday planning joyful.

25. META SEARCH ENGINES
A metasearch engine (or aggregator) is a search tool that uses another search engine's data to produce
their own results from the Internet.
MAJOR PLAYERS-
TripAdvisor
Trivago
Kayak
Google
Other players are
Room 77
Wego
Nextag
Ixigo

26. GATHERING
POPULARITY

27. Meta search engines different from
ota’s

28. Mobile applications
Mobile creates opportunity for in-trip touch points
Source: Flight view survey-June 2014
• Connect with your clients at the time and
place they plan their trip
• Increased brand visibility-fully branded
mobile app, deep Facebook integration.
• Perfect travel companion for clients-
Detailed guides, offline maps and
navigation, Daily itineraries.
Source: mtrip.com

29. MOBILE APPS
Major Players-
Expedia-Expedia iPhone app o Expedia Android App
Google Flights- same as Kayak but does with a different
interface
Hipmunk Flight & Hotel Search-includes non-traditional
lodging, such as listings from Airbnb and Home Away.
Kayak-finding best deals on flights, includes in its searches
other aggregation services like Orbitz and Priceline.
Orbitz flights, hotels, cars-searches for best travel deals
Make My Trip-manage trip itineraries, check for flight
schedules
Contribution in revenue
• In 2014, Travel market comprises a total of 71% of e-commerce in India.
• Online travel in India, has been the largest digital commerce segment in terms of
revenue generation.
• The penetration levels for online travel will remain high because the sector is more
service-oriented and is a friction-less product, said co-founder and chief executive
of Yatra.

30. OTHER NEW TRENDS
MEDICAL TOURISM
The citizens of countries that visit India for Medical purposes are mainly from Maldives (59% of 50,000
visitors), Nigeria (29% of 37000 visitors), Iraq (33% of 39000 visitors), Afghanistan (16% of 95000 visitors),
Oman (11% of 50000 visitors), UAE (8% of 41000 visitors).

31. SPIRITUAL TOURISM
Some Government Initiatives
• ‘Spiritual Tourism’ programme.
• Launching of E-Ticketing for Taj Mahal in Agra and
Humayun's Tomb in New Delhi
• 500 crores embarked by P.M. for development of five
tourist circuits such as Ganga, Krishna, Buddha, northeast
and Kerala.
• 100 crores earmarked for Pilgrimage Rejuvenation and
Spirituality Augmentation Drive.

32. MICE TOURISM
(M)Meetings-corporate conferences
(I)Incentive(Travel)-reward or training to employees by companies
(C)Convention-general assemblies, academic conferences
(E)Event/Exhibition-cultural and sports events, trade shows, exhibitions

33. ADVENTURE AND WILDLIFE TOURISM
Adventure travel has been growing 65%
year over year since 2009.
57% of adventure travelers are male
48% are single or have never been
married.
The average age of adventure travelers is
36
The wildlife tourism industry spans the globe and
generates billions of dollars of revenue, while also
providing an economic incentive for wildlife and
habitat conservation and cultural preservation. The
popular destinations for wildlife tourism protected key
areas

34. CULINARY TOURISM
India Food Tour includes-
• More than food tasting
• Maximum varieties of food covered
• Safe and hygienic
• English speaking guides
• Meeting with chefs, cooking classes

35. SHOPPING TOURISM
• India-5th largest shopping destination globally
• Important Destinations-Delhi, Kashmir, M.P., Kerala & Rajasthan
• Shopping festivals organized by some countries
• Economic Impact of shopping tourism
• Future Trends in shopping tourism

36. Introduction to Tools
 Dashboard:
 Rate
 Availability
 Content
 To ensure right hotels are getting contracted
 Summarize the important details about an activity with the partner
 Technical terms :
 Rate Parity
 Avail Parity

37. BML(Beat-Meet-Lose)
 Rate Oppy: Demand based rate
 Avail Oppy: Availability based rate
 Expedia Partner Central
 Manual shopping of rates
 Learning : Difference in business model
 Difference in weekday and weekend rates
 Priority listing

38. Acquisitions
 Process of registering property on Expedia
 Contract clauses:
 Rate Parity
 ETP(Expedia Traveler Preference): Pay at hotel; Pay at Expedia
 Compensation: Standalone, Package Rates
 Sales Cycle:

39. Process of Contracting

40. Learning: 4P’s
 Proposal: Negotiating and communicating
 Partner: Adaptation according to it
 Patience
 Perseverance