PHILIPPINES DESTINATION MARKETING STRATEGY FOR INDIA

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Presentation by –

Siddharth Kundu Chief Experience Officer & Founder

Luhobhraman Pvt. Ltd( India)

Population 1.21 Billion ( 2011)

15 – 35 years account for 50% of the population

Hindi, English, and Tamil are the commonly spoken languages

Seventh largest country in the world with 3.2 Million Sq. km. land area

27 States( provinces), 5 autonomous regions

( union territories ), 14 International Airports

Major business centers are Delhi, Mumbai, Bangalore, Chennai , Kolkata

Glimpse of India

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More than 150 dollar-billionaires and 200,000 dollar-millionaires in India! An average Indian traveller spent US$ 1,800 dollar per trip, which amounts to a US$15 billion Indian outbound market Most of the money came from their own pockets, and not from bank-loans.

Are the Indian Wallets Fat?

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Is Philippines getting the adequate share of the cake ?

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NO! An example- 0.03% Indian outbound travelers makes approximately 10 % of New Zealand's inbound travelers in 2010.

Share of neighboring countries of Indian Tourists in 2010

17.4 million Indian outbound travellers in 2010 growing

at the rate of 10.5% CAGR

14.19 Billion US Dollar spending in 2010 which is 1.54%

of the global spending on tourism, ranking 17th in the world

in tourism receipts

The size of the cake( Read India)…

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Growth % 8.3 16.1 15.6 16.1 17.3 11.1 1.8 17.4

Growth of Indian Outbound Travel

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• Indian outbound travelers growing 10.5% CAGR • Indian outbound travel is expected to 50 Million by 2020

Reasons for the growth of Indian Outbound Travel

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Large flow of travellers fluent in English and comfortable with international travel Growing economy and foreign investment Air transport liberalization – more Indian airlines and more foreign carriers adding new

services or increasing frequencies Increasing number of destination tourist boards setting up offices and expanding their

market representation in different cities ‘Look East’ policy – a desire to boost trade and travel relations with China (PRC) and

North and Southeast Asia Growing number of multinationals investing in India, leading to more outbound travel

for conventions, incentives and business travel Growing demand for niche travel products, such as honeymoon and cruises

The marketing impact of Bollywood movies shot abroad

Singapore 725,624

Thailand 596,600

Indonesia 1,565,545

Malaysia 590,000

Macau 107,513

Australia 124,888

New Zealand 55,336

Korea 73,000

Philippines 42,000

Surely Indian tourists have not yet explored that its more fun in the Philippines !!!

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Top Tourist Destinations for Indians, 2011

Growth %( YOY) 29.71 4.92 24.92 15.1 13.8 23.89

India Contribution in Tourism Business of Philippines & neighboring countries

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Do you think are we missing out on something ?

The great potential of Incredible India!

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Difficult Philippines Visa Processing till

year 2011

Avoidance of Indian travel

Agents of Philippines market

due to lack of proper Business

partnership

No direct flight and poor

connectivity between both

countries

The big question ‘Why’ is the opportunity unexplored ?

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‘What’ remains the unsolved problem ?

Problem 1-Lack of Destination Marketing by DOT, Philippines in India compared to other hot selling tourist destinations in India

Problem 2-Lack of tie ups with Indian travel agents with Travel & hospitality Industry of Philippines due to lack of information, trust, awareness about the products and services and scope of business

Problem 3- Lack of direct connectivity between the countries all flights have a layover at BKK, KUL , SING, HK etc and no flight to India Manila is less than total 7 hours.

Problem 4 – Lack of monetary incentives for Indian travel agents compared to other destinations from the Philippines hospitality & travel industry due to low volume and hence reducing attractiveness of the Philippines Market

Extremely price – conscious category

• Price is a major consideration

• Tour cost has to be cheap

• No optional tours and demand compliance with tour description

• They don’t mind paying extra to go shopping or other activities not included in the package.

• 3 /4 star accommodation but has to be value for money

• Shop authentic but cheap souvenirs for neighbors, colleagues, etc.

Luxury Customers category • Beautiful scenery and new experience in terms of service and hospitality • Relaxation, knowledge and experience different culture • Taste different food • Give status in the community • Personal attention and Pamper • Exclusive travel arrangements and hotel accommodation • Service Attitude and quality • High Budget shopping of clothes and accessories

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Key Success factors of Indian Travelers

Sources of Information about destinations in India

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Personal

Travel Agent,

41%

Online Mega

Agents, 29%

Specialised

New Agent,

10%

Direct

Booking

Online, 9%

Other, 7%

Travel Arrangements for Pleasure Travelers

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This exciting venture has been started by Siddharth Kundu, an MBA graduate

from The Asian Institute of Management, Manila. After having spent close to

sixteen months in paradise (read-The Philippines), he realized that there were

umpteen stunning and exotic locations just waiting to be discovered! During one

of his travels, Siddharth wanted to showcase these beautiful and untouched

places to the world and decided to start right here at home- by encouraging

Indians to make the trip of a lifetime to The Philippines and likewise bring

Filipinos to this magical world called India! So with the support of the Indian

Tourism Department and Department of Tourism, Philippines, he intends to

promote a novel concept called 'Bilateral Tourism'. In his own words Siddharth

describes the experience as "Incredible India having More Fun in The

Philippines."

What’s Luhobhraman

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After detailed calculation and analysis the previous trends

• Get business from over 3000 Outbound travel agents in India

• Luhobhraman will have a very high ranking Search engine optimization on Google India

for Keywords related to Philippines holiday, travel and packages by June 2013

• We will update you on regular trends of Indian tourism pattern and other statistics

• We will make attractive packages and offers with your existing resources, if required

• We have office set up, and right networking in both in Philippines and India this will make

transactions more easier , earn trust and do business with transparency

• Support of Department of Tourism, Philippines, intending to promote a novel concept

called Bilateral tourism

• We Expect the flow of Tourist flow from India to Philippines to increase by 200% to

approximately 120,000 by 2014* ( with other factors taken as constant)

• By 2020 we can expect an year flow 1 million( annually) Indian travelers in Philippines

Why partner with Luhobhraman

What is required for partnering with Luhobhraman

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Your business entity will be providing us the best rates for your different kind services you offer and keep us updated with different offers on timely basis

We will scrutinize the best available offer given by your company by comparing it with other offers given at different give you feedback on ways of improving the offer and / or accept your offer

We will repackage the offers for the seal of trust ( or can be sold on your brand name* ) and then we will push your offer among the 3000 Indian out bound travel agencies . Surely the best offer will get most of the business India can generate for Philippines !

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• Indian Food at hotels and choice of vegetarian if possible besides world cuisines ( most Indian's also enjoy Thai and Italian food),Yet some Indians have specific needs (e.g. dietary) when traveling because of their social/religious background

Big spenders but always want quality competitive prices – looking for deals always (

not necessarily cheap ) Sticklers for detail and service quality as Indian culture is highly service oriented

eg – Bell boys taking bags/Service with a genuine smile/ Equal respect for all Attitude towards travel: Status is important. The prestige attached is high

Going somewhere off the beat track…destinations such as Koh Samui or Chiang Mai are becoming popular. Other city delights similar to global leisure - Shopping , night life , spa etc

The Indian market is highly complex and consists of many segments (region, religion,

caste, language, etc.)

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Sex

Male 68%

Female 32%

Age

30 or younger 28%

31 – 50 49%

51 and older 21%

Demographic Profile of Indian Traveler

Middle class – 15 to 20,000 USD(PA) Nouveau Riche– 20 to 50 ,000 USD(PA) Elite - Not accounted for Marital Status Married 78% Non-married 20%

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If you find my work interesting , I'd be happy to meet and discuss details. I look forward to hear from you.

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Contact – Name -Siddharth Kundu Designation- Chief Experience Officer Email – info@luhobhraman.com Yahoo- Siddharth.kundu@yahoo.com Skype – siddharth.kundu007 Telephone- (+91)8584921647 (+63)9152611289 LinkedIn-http://www.linkedin.com/pub/siddharth-kundu/36/482/70b Facebook- https://www.facebook.com/Luhobhraman