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