INDIAN Market Profile
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Transcript of INDIAN Market Profile
INDIAN Market Profile
NAMASTE
INDIA
INDIA… ON THE MOVE Population 1.28 billion, the world’s 2nd most populous country
India is set to become the youngest country by 2020 with 64% of its population in the working age group
India ranked 5th in the number of billionaires (US$)
(This is of declared income only; unaccounted money is separate)
India’s urban population will soar from nearly
340 million in 2008 to
590 million in 2030
(Source : National Council for Applied Economic Research, McKinsey, Economic Times, The Hindu, Live Mint, Census of India)
INDIA… ON THE MOVE
India’s GDP in the global context
Note: (million $)USA - 14,991,300 China - 11,290,911India - 4,531,655
Source: World Bank
India’s Economy ranks 3rd largest in the world
2011 GDP PPP (USD mn)
Growth in Outbound Travel from India
2005 7.2 million + 15.6%2006 8.3 million + 16.1% 2007 9.7 million + 17.3%2008 10.8 million + 11.1%2009 11.7 million + 1.8% 2010 12.99 million + 17.4% 2011 13.99 million + 7.7% 2012 14.92 million + 6.7%
Source : Bureau of Immigration,
India
Source UNWTO
About 50 million Indians are expected to travel overseas by 2020
2013 17.16million +15% (provisional)
Indians Travel from…
Port-wise Indian Nationals’ Departures 2012
Source: tourism.gov.in (2012)
OUTBOUND MARKET PROFILE
Outbound Trip by Purpose of Travel
VFR -: 40 %Leisure -: 40%Business -: 20% Source – BOI
Length of Stay 15-25 days average
International Travel Expenditure
US $ 2,000 per trip Source – UNWTO report by Nielson along with PATA
Breakdown of Spending
Accommodation 30% Local transport 18%Shopping 20% Entertainment 9%Food & drink 16% Others 7%
OUTBOUND MARKET PROFILE
Nature of Travelers A larger proportion being males (65%) than females (35%). They are well educated and belong to the upper socio-economic strata of society. Source: PATA Report
Age distribution of Travelers
Leisure Traveler 22-35 yrs.Family Traveler 35-50 yrs.MICE Traveler 40-50 yrs.
According to the travel trade, international leisure travellers belong to the 20-45 years age group
OUTBOUND MARKET PROFILE
Travel CompanionsFamily - extended family membersHoneymoon – the families pay for thisFriendsCompanions on tour groups & MICE groups
Types of Tours Organized tour groups FITsSpecialized Tours: Vegetarian, Jain, Gujarati’s
Payment Methods Cash 88.5% Credit Card 11.5%
OUTBOUND MARKET PROFILE
Information Sources
Travel agents Print (Ads, brochures, flyers)Word of mouth InternetMovies
Travel Bookings Travel agent – Don’t trust Internet / Cash payments Internet – Only if they have been before
Advance Planning for Overseas Holidays
About 3 million book in less than 2 weeks
Indians do not book in advance
Over 7 months 7% = 10,000
3 to 6 months 28% = 4, 200,000
1 to 2 months 32% = 4, 800,000
Less than 1 month 14% = 2,100,000
Less than 2 weeks 19% = 2, 850,000
Source: (Visa & PATA Survey)
Market Realities
To avoid taxation people deal mostly in cash
The biggest industry in India - Agriculture is NOT taxed(only 3% of the population pays income tax)
This cash is also used for tourism and hence customers depend more on travel agents than on internet
Market Realities
Tourist boards are gearing up to meet the growing number of Indians who are travelling abroad and splurging
Today India has over 40 NTOs
Starting direct flights is the first step
43% of leisure travellers from India or VFRSource: Amadeus-Frost & Sullivan Report
Extended Weekends Abroad is the new mantra
The frequency of Indians travelling abroad now is 12 months vis-à-vis 18 months earlier
New Niches, Customised offerings is very important
Perfect MICE Destination (how many know what all to find – entertainment, nightlife,gala-evening ideas, shopping vouchers, incentives – welcome
banners, police escorts, discounts vouchers, sim card … )
LUXURY
Perception is every thing (how many know us as a truly international destination)(Starbuck/McDonalds/KFC/Pizza Hut… )
Up-market young traveler (age bracket 30-45 years – bars/pubs/lounges)
Positioning
THE INDIAN TRAVELER…
Will spend an average percentage on –
Entertainment and amusement
Food & Beverage
Apparel
Housing & Utilities
Health Care & Cosmetics
Buying Habits of Indians
Indians’ Activities Abroad
Shopping
Beaches / Coast line
Entertainment & Night life
Sports & adventures
Wellness & Spa
Monuments /Heritage Sites
Wild life
Our Ability to win in the Market
Visa free destination for Indians with AJACSSUK Visas
Vibrant nightlife & Exotic beaches
A shopper’s paradise
Friendly people
Widely spoken English Language
Indian Restaurants
SALES & MARKETING STRATEGY
SWOT Analysis
Changing Market Conditions
VISA Free Entry
English speaking nation
World Class Hotels
Casinos
Beaches
Exciting Nightlife
Shopping
Changing Market Conditions
Very Expensive Airfare
No Direct Flights
Not marketed as a standalone destination (add on with other countries)
Domestic travel is expensive
Changing Market Conditions
High street and local shopping
MICE - Upcoming destination
A new attractive destination for Indian weddings
Exciting nightlife
New opulent hotels
Changing Market Conditions
Pricing vis-à-vis other destinations
New attractions offered by Singapore, Thailand and Dubai every year
New emerging destinations in East Europe also targeting the Indian market
Destinations like Australia and South Africa spending millions of dollars in India
Exceptionally low fares to other destinations like Dubai/Thailand
DESTINATION SELECTION
1. Safety and security at the destination - IMPERATIVE
2. People like bragging about their holiday; hence the overall image of the destination is important.
3. Also, perception of the destination being Luxury
4. Ease of obtaining visa and the time required
5. Good Infrastructure in terms of hotels, transport, food – take longer routes but show them the GOOD parts of the city
6. Family destination
7. Shopping options
8. Things - to See & Do - a range of experiences/activities/culture
important criteria for choosing a holiday destination
PACKAGES
Comparative Packages
Philippines Packages
Market Findings
Indicative pricing of destination package
Destination Nights US$
Thailand 6 600Sri Lanka 6 900Mauritius 6 954Malaysia 6 1054
Singapore & Malaysia 6 1100China 6 1254Jordan 6 1327
Singapore & Cruise 6 1390Hong Kong Macau
&Disney 6 1527
Spain & Portugal 6 1393Philippines 6 1670
Philippines Specialist Program - PSP(All agents have to complete it – its mandatoryDeal with them only if they are Specialists)
Internet – landing page (Reaching out to consumers Credibility of Agents, Itinerary, Correct position)
Social Media (Great to create branding / awarenessNeed HELP – great stock of Photos)
Radio Advertising (Rush hours – morning and evening)
Activities in India
Dhanyavad