India Tan Siew Hoon Regional Director South Asia : India Tan Siew Hoon Regional Director South Asia International Market Briefing 21 November 2006
Slide2: WEST EAST SOUTH NORTH Primary Key cities:
Mumbai and Delhi
Secondary cities:
Chennai, Ahmedabad, Bangalore, Kolkata, Hyderabad
Market Summary- India: Market Summary- India
Rising India …..: Rising India ….. 2nd most populous country with 1.09 Billion
Current stage : Expansion, Acquisitons
Every Corner …GROWTH, GROWTH…GROWTH…
Manufacturing
Infrastructure
IT
In Literacy
Young Population : > 50% are less than age 25
Dynamic Consumption Trends – From Savings to Spending
Indian Consumer Snapshot: Indian Consumer Snapshot
Increasingly affluent middle class (300 million) and is growing rapidly. Per capita income is increasing by around 5% a year, and its per capita expenditure is rising twice as fast.
Behaviours: ‘Cash rich/time poor‘, Bragging rights, Demand improved quality on their trips. Travel moves up the list of household spending priorities.
Multi-state itinerary: Sydney, Gold Coast/Cairns and Melbourne
Booking pattern: Short lead time for booking, pre-planned all inclusive itinerary, predominantly book through travel agents.
Indian Consumer Snapshot: Indian Consumer Snapshot
High maintenance: Start late, sleep late. Change in itinerary while they are still on the trip, transfers are very important
Loves: Icons, Cricket, Shopping, Nightlife (discos, pubs, shows & entertainment), Younger generation love soft adventure
Meals: Vegetarian vs Non Vegetarian
Peak Season : May, Dec, Feb, Oct , April
India - Trade Development : India - Trade Development Highly Fragmented Trade Distribution
ITO dominated market (approx 95% of leisure business)
Big 4 Operators (25% of the mkt share for Australia) with big marketing budgets:
Thomas Cook, Kuoni, TCI and Cox & Kings.
Up & Coming : Kesari Travel
Medium Size Operators (20% of the market share for Australia)
Either wholesalers or retailers (FIT or GIT).
Moderate Marketing budgets.
Small Operators (40% of the market share for Australia)
Retailers, FIT
Copy the Big Four itineraries.
City specific
A Lot of Family Owned Business
Products In Market- What Travel Agents Are Selling: Products In Market- What Travel Agents Are Selling Key inclusions :
Visiting the Icons (Darling Harbour, Sydney Opera House, Sydney Harbour Bridge, The Rocks, etc)
Attractions: Sydney Aquarium, Sydney Tower, Cruise, Sydney Showboats
Shopping
Day trips to regions
Blue Mountains, Hunter Valley, Port Stephens or Canberra
Gap to fill: Personalised touring operators
Accommodation
Ranges from 3 to 5 star, with huge potential for luxury resorts stay - especially for Honeymoon segments
Optional FIT inclusions
BridgeClimb, Jetboats, Skywalk, Seaplane, Quad Bike
Aviation Update- India: Aviation Update- India
Key Players Qantas Airways
3x weekly from Mumbai to Sydney. Flying time 11.5 hrs
Code-share partnership with Jet Airways operating out of New Delhi (Daily from Delhi, Mumbai & Chennai )
LCC: Create a new traveler segment from RAIL to FLIGHT! Cathay Pacific, Thai International, Emirates Airline, and Air India code sharing with Qantas via Singapore or Bangkok. 8 points around India. Gd connecting thru Spore The only airline providing direct svc
Tourism NSW focus: Tourism NSW focus Capture top end of the Indian market – upscale family, Honeymooners, Potential for mono-incentive groups
Increase appeal of Sydney as a must visit holiday destination
Maintain 2 to 3 nights’ stay in Sydney
Increase length of stay through diversity of experiences in Sydney & Surrounds
Increase NSW operators’ awareness & interest in India
Integrated approach for PR & Media (consumers), Trade Development in-market and with NSW operators and Australian ITOs
Slide11: Trade – ASP Famil Feb 06
Slide12: Trade- Corporate Incentive Famil Feb 06
Trade: Spectacular Sydney Night Out at India Sales Mission Sept 06: Trade: Spectacular Sydney Night Out at India Sales Mission Sept 06
Slide14: Trade Partnership: Thomas Cook-Times of India 16 Page Australia Booklet Mar/ Apr 06
Trade Partnership: Holiday Representation & Trav Talk Trade Publication: Trade Partnership: Holiday Representation & Trav Talk Trade Publication Advertorial & Tactical Ad In Trav Talk
(26,000 Copies Circulation, 120,000 Readers) Sept 06- Jan 07
Slide16: PR/ Media: Editorials in Economic Times Mar 06
Slide17: PR/ Media: Zee TV “Full Circle” Travelogue (Feb 06)
PR/ Media: 20 Page Vivaha Sydney Wedding Supplement Sept 06: PR/ Media: 20 Page Vivaha Sydney Wedding Supplement Sept 06
Moving Ahead – Challenges : Moving Ahead – Challenges Increase competition – active NTOS with $$ budget
Increased resources by other STOs
TQ, Gold Coast Tourism Bureau, MCVB
Perception of Sydney as only for 2 nights’ stay
Engage ITOs & NSW suppliers: overcome perception that India is a difficult market
Manage yield
Why Should You Invest in India : Why Should You Invest in India Small Base, Good yield:
Highest TIEV per visitor to NSW (A$2604) across all Emerging markets (China, Korea, etc)
3rd Highest TIEV per visitor to NSW across all markets.
Higher than USA (A$1466), China (A$1727), Japan (A$1304), Korea (A$2094) (IVS June 06)
No language barrier:
Fluent in English and comfortable with international travel.
Air transport liberalization
more Indian airlines and more foreign carriers adding new services or increasing frequencies.
More outbound travel:
Growing number of multinationals investing in India = more outbound travel for conventions, incentives and business travel.
Higher desirability to visit Australia
Marketing impact of Bollywood movies
Greater segmentation in the market:
stronger demand for travel among families, young people, women and seniors.
Growing demand for niche travel products e.g. honeymoon and cruises
How You Can Be Involved! Upcoming Market Opportunities- India Jan- Dec 07: How You Can Be Involved! Upcoming Market Opportunities- India Jan- Dec 07