India - Outbound Travel Trends

INDIAN MARKET OVERVIEW

• India is the second fastest growing major economy in the world.

• Until recent years, outbound tourism was restricted only to the privileged few.

• The Growth in GDP has put more disposable income in a larger number of hands, resulting in a larger number of Indians traveling domestic and overseas as well.

• Also contributing to this growth in Indians traveling abroad is the increase in basic travel quota which now stands at a whopping US$ 10,000 per person per annum for leisure travel.

• Rising Incomes, Higher Affordability

• Thriving economy

• Higher pay scales

• Double income families

• Attitude change

• Long term saving mentality remains but growing today’

• Higher Visibility, Greater Lure

• Media

• Word of Mouth

• Movies (Bollywood)

• Lower travel fares+ Enticing packages and offers

• Popular Trend

• Everyone around is taking a foreign holiday

Language and Food are two key concerns about foreign travel

A Hindrance but not a Deterrent

HOLIDAY: INDIA V/S ABROAD

India

•Regular and easily accessible

•Delight of new places•No language or food problems

Foreign

•“Wow!!!”

•Some years ago, a key STATUS SYMBOL

•Though more accessible now and more common but

•Still has talk value•A personal delight and sense of achievement

CHOICE OF PLACE

Asia

South East Asia

Affordable

•cheaper tickets, stay

Short Trip Possible

•hence less expensive

Foreign yet Familiar

•food, climate not too alien

Superlative experience for

First time/ Early travelers

Aggressive Marketing Strategies

Europe

US

Africa More Expensive + More Exotic Higher Status Value

•more aspirational

•Superior and Unique Experience even for Frequent Travelers

•(US) Relatives and Friends staying

•hence no stay and food expense Destination options like Australia, New Zealand, Egypt too are beeping on the radars of Indian