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How does India travel? Let us count the 94 billion ways

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Bain & Company and Google India are together launching a report on “How Does India Travel.” According to the report, the Indian traveler has come of age, spending approximately $94 billion in 2018 on around 2 billion domestic and international trips. This has helped the Indian travel and tourism industry achieve unprecedented scale, and the momentum is expected to continue with the industry growing at a 13 percent CAGR to $136 billion by 2021, according to a report.


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Fueled by digital, Indian travelers are expected to spend an additional $24 billion on online travel bookings over the next 3 years. The report outlines how India spends on travel, the influence of online channels in their purchase journey, and potential growth opportunities for travel businesses until 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing.  The report states that during key research-heavy phase of interest, research and experience, digital plays a pivotal role with over 86 percent of consumers being influenced by online channels. During this phase, travelers spend their maximum time on search, travel tour provider websites, price comparison websites, and travel articles. Online video too plays a significant role with 21 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent share feedback online with social media being the dominant platform.

Talking about the market opportunities for online travel players, Vikas Agnihotri, Country Director – Sales, Google India said, “New users perceive that online channels are geared towards the more frequent flyers and experience-oriented travelers; and existing travelers research online but the lack of trust in payments and booking experience make them end up booking offline. If travel players tap these online users through personalized marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey and moving from one-time engagement to ongoing relationships to have a positive impact.”

“There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorized each against their online research behavior:

  • Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.
  • Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.
  • Experience-oriented traveler: Around 70 percent of their bookings were done online. and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.
  • Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.
  • Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

However, challenges remain in meeting the expectations of these travelers. Customers perceive online channels geared towards premium cohorts (frequent flyer and experience-oriented traveler), while mass cohorts, with $55 billion in spending, remain underpenetrated. There are about 160 million non-transacting active Internet users in India with only 5 percent of online travelers from Tier-2 or Tier-3 cities. There is a significant (20 percent) difference between the booking rates of premium cohorts and mass cohorts, the latter being also dissatisfied with online channels (~33 percent satisfied) vs. premium cohorts (~42 percent). The second challenge is in penetrating existing users who exhibit a marked distrust in use of online channels to make bookings, especially around payment and pricing terms and booking experience compared with offline channels. Consequently, their online usage drops between the research (>86 percent online influence) and booking phases (~40 percent offline bookings).

How travel businesses need to adapt to the needs of online consumers

The report cites five major shifts that marketers need to make to market to the online travelers – First, alleviate consumer concerns by improving the booking and payment experience to build a trusted brand and increase adoption. Second, they need to address the negative customer perception issues by mass customization to drive higher share in the segment. They also need to utilize consumer technology to penetrate mass segments (standardize, enable sharing), reach non-transactors (build offline presence), and create new user access.  Moreover, they need to find innovative and frugal ways to package the experience to increase both adoption and retention.  Finally, they need to create a robust digital backend to adapt to customer needs across the purchase journey.

“The contribution of travel and tourism’s spend in India has reached developed market levels, from 6.7percent of GDP in 2013 to 9.4 percent in 2018. This growth, combined with a rapidly growing internet user base and adoption of online bookings will lead to $24 billion in incremental revenues through online channels by 2021. In order to benefit from this trend, businesses need to actively increase new user adoption and increase penetration in the existing user base across the purchase journey.” Joydeep Bhattacharya, partner Bain & Company said.

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Rolls-Royce Tay 611-8 engine achieves 10 million flying hours

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The Rolls-Royce Tay 611-8 engine, which entered service in 1987, recently achieved another incredible milestone by reaching 10 million flying hours in nearly 5 million flights. The engine powers a range of Gulfstream’s highly successful large-cabin business aircraft, such as the Gulfstream GIV, GIV-SP, G300 and G400, and has established a reputation for outstanding dependability, efficiency and low noise generation.

The performance of the Tay 611-8 enabled the Gulfstream GIV to revolutionise the business aviation market with its high cruising speed and the intercontinental range of about 4,300 nautical miles. Over the past three decades, the Tay 611-8 has achieved numerous records for speed and range. These achievements have been perpetuated by its successor, the Tay 611-8C, powering the Gulfstream G350 and G450. There are over 1,700 Tay 611-8 and -8C engines in service today, with many of these supported by Rolls-Royce’s market leading CorporateCare®.

The background to the first Tay order contract is part of aviation history. In December 1982 the basic details – engine price, quantity, payment terms – were written on a napkin in less than 10 minutes by Sir Ralph Robins, who at the time was the company’s Managing Director, and Allen Paulson, Gulfstream’s founder and then Chairman and CEO. The deal was formally settled in March 1983.

Dirk Geisinger, Director Business Aviation, Rolls-Royce, said: “Reaching 10 million flying hours is an impressive milestone and we are very proud of this achievement. With its legendary reliability the Tay 611-8 became the benchmark for ultra-reliable long distance business aircraft and perfectly illustrates why Rolls-Royce is the leading engine manufacturer in Business Aviation.

“The Tay family with its proven performance has been very successful for us and has propelled our market leadership in this sector. Combining this engine with our latest aftermarket programme CorporateCare Enhanced raises the bar for the whole industry by introducing uncapped troubleshooting, coverage for mobile repair team travel costs and nacelle coverage on later engine models.”

He adds: “CorporateCare Enhanced provides our customers with a global support infrastructure which includes Engine Health Monitoring, a worldwide network of Authorised Service Centres and globally distributed spare parts and engines, all managed by our dedicated 24/7 Business Aircraft Availability Centre. Our customers benefit directly from this investment in proactive care, an in most cases are prevented from missing a planned trip.”

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India’s tea gardens beckon tourists

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India, one of the top tea producers in the world, is experimenting with tea tourism in view of the growing interest shown by tourists to visit tea plantations and tea factories. Ambling through a sprawling tea plantation with greenery all around in the early hours of the day watching a group of local women plucking two leaves and a bud at a fast pace with their nimble hands and collecting them into baskets slung on their shoulders is a winning sight for tourists. India now leads to give tea-buffs and tourists a closer understanding of tea by organizing tea tourism at places like Assam, Darjeeling (West Bengal), Nilgiris belt in Tamil Nadu, and a few pockets in Kerala and Karnataka.

Tea tourism is defined as tourism that is motivated by an interest in the history, culture, traditions and consumption of tea. Estate bungalows amidst sweeping acres of manicured tea plantations have now been converted into tourist accommodations. Not just staying in the midst of tea gardens, tea tourists  are taken to a tea factory, where they get to experience how the fresh green leaves are brought into the tea factory for withering to the rolling, drying and shifting stages, grading and packaging and followed by  a tea-tasting session where they could sip some of the finest tea that is grown in that area.

A view of Tea plucking in a tea garden of Assam

Assam in the lead for tea tourism

The first name that crops up in mind for tea tourism is Assam, the largest tea producing region in India.  The Assam Tea Tourism Festival held at Jorhat every year is a big hit with tourists. Staying in a rustic  colonial-era planter’s bungalow has its own charm. Home to more than 800 tea estates in the state,  where amidst luxury and serenity one can drift back in time to days of that elegant colonial aristocracy.  The B & A Limited operates through seven quality Tea Estates in the India’s largest tea growing region of Assam. The Guwahati Tea Action Centre, one of the busiest tea trading facilities in the world, is a place not to be missed. Others  include Corramore Tea Estate, Teloijan Tea Estate and Khongea Tea Estate besides a host of others.

Another major development which is currently in progress is the tourist-friendly makeover of  world’s oldest and biggest tea research center at Tocklai (Assam), with edifices  that each have a story to tell. A.K. Barooah, director of the Tea Research Association, said recently that the Tocklai Guest House, a heritage building, was home to  British tea planters A tea museum will be built with suitable dioramas, models and displays. He said Tocklai can tie-up with other tea tourism enterprises like Kaziranga Golf Resort (Bura Sahib bungalow), Banyan Grove and Thengal Manor bungalow in Jorhat district, the Mancotta chang bungalow and Chowkidingee chang bungalow situated in the heart of Dibrugarh town.”

West Bengal is also fast catching up with Assam in promoting tea tourism. Its Chief Minister Mamata Banerjee last month mentioned that her government will consider tea tourism to benefit tea plantations in the state.

She said, “We have allocated more than Rs. 1,000 crore for the welfare of tea garden workers since 2011. Tea tourism is also under our consideration.”

The WB state government permits one acre of tea estates to be used for tourism purposes. Currently there are 87 operational tea gardens in Darjeeling district covering an aggregated area of about 19,000 hectares under tea plantation. Darjeeling surrounded by tea orchards that produce the famous light-colored and aromatic Darjeeling Tea has the right ingredients for tea tourism. Makaibari Tea Estate and Homestay in Kurseong, 37 kms from Darjeeling, is one of the top tea producing gardens in the world. In the vicinity of  Darjeeling is the Happy valley Tea Estate, one of the highest tea gardens in the world. Raj-era estates located in some of the most scenic destinations in India — the rolling Himalayan foothills of Darjeeling and Dooars beckon tourists. Some famous estates include Glenburn Tea Estate, Sourenee Tea Estate, Singtom Tea Estate and Resort, Ambootia Tea Garden, Barnesbeg Tea Estate and  Castleton Tea Estate among others. Goodricke Group Ltd. is offering tourism opportunities in one of its tea estates in  Darjeeling where it has five gardens.

South India also catching up fast

Besides the Northeast belt, in south it is Tamil Nadu which is home to some of the largest tea-growing belts in the country. Nilgiris in Tamil Nadu is the largest tea producing district in South India, and its tea is  renowned for its aroma and flavor. With Tamil Nadu producing  65% of tea in South India spanning an area of 65,000 hectares, the Nilgiris area offers great scope for tea tourism. Valparai, a quaint hill station located about 100 km from Coimbatore, is teeming with tea plantations. Billimalai Tea Estate at Glendale, about 10 kilometers from Coonoor, is a perfect place to experience  how tea is processed.

Munnar in Kerala is rustic belle of hill stations where acres and acres of tea plantations feast one’s eyes. A visit to country’s first Tea Museum at Nallathanni Estate is highly recommended at it narrates the history of tea production in the region. The Kundala Tea Plantation in Munnar offers tourists the tea making process in great detail. Tea Sanctuary here is home to refurbished vintage colonial style bungalows amidst misty tea plantations. Considered the  highest altitude tea plantation in the world, Kolukkumalai, near Munnar, is known for  preserving the British heritage in tea-making at the factory here. Wayanad in Kalpatta district produces substantial amount of tea whose lush green tea gardens are a feast for the sore eyes. The Wayanad Tea County in the midst  of the picturesque  395 acre estate, many  vantage viewpoints, and trekking routes is a better option.

In Karnataka, Coorg, and  the Baba Budan Hills in Chickmagalur are tea-producing regions, but tea tourism is yet to catch here.

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IMEX to deliver surprise and creativity with new Discovery Zone

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Holograms, robots, magic, music and art are among the surprises set to inspire and delight attendees at IMEX in Frankfurt, taking place 21- 23 May.

The show’s new Discovery Zone is packed with education and experiences to fire up the imagination of event planners and exhibitors alike. It’s designed to help them to question the conventional and explore fresh approaches to business events, with a strong emphasis on ‘experiential’.

Carina Bauer, CEO of the IMEX Group, explains: “There are some surprises in store for attendees this year! We don’t believe in ‘business as usual’ and are always evolving and looking for new and engaging ways to encourage innovation in the industry – our new Discovery Zone is the perfect way to do this.”

Robots and holograms

Many innovations at the Discovery Zone turn conventional thinking on its head. Think a piano is played using hands? Think again! ‘Mister Piano’ is a walking piano played using the feet and attendees can put their fancy footwork to the test to hit the right notes. Attendees can also go hands-on and tap into their inner artist at a painting party, craft their own bespoke luggage tags and even take part in fire-infused magic tricks. A talking robot, holographic show and 360degree photography booth are also among the engaging experiences this year.

Practical applications of event tech, diversity and a firm focus on future-thinking all form part of a packed program of sessions at The ZEUS Innovators Club. Attendees will also find the Inspiration Hub – the show’s learning powerhouse – in the Discovery Zone, with sessions covering hot topics such as sustainability and diversity to business skills and creative learning.

Tap into your creative streak at the new Discovery Zone

Fresh green grass and a swing

Prepare for sensory overload and explore the great outdoors while dining indoors at the show’s food court – this has been transformed into Central Park, complete with trees, grass and even a swing! Attendees can also kick back with table football, table tennis and other games for some purposeful rest and relaxation.

Carina Bauer continues: “We know our show delivers significant business benefit to buyers and exhibitors. We also know it’s important for them to have the time and space to experiment, discover new experiences and gather fuel for fresh, innovative ideas. Our new Discovery Zone is set to deliver a huge dose of creativity, with a few surprises along the way. Inspired by this year’s Imagination Talking Point, we asked….what if we wove more experiential and fun elements into the show? What if that translated into more business benefit for everyone attending?”

As well as exploring the new corners of the show, attendees can explore new corners of host city, Frankfurt, thanks to a new interactive accommodation booking map. The map on the IMEX website, powered by Stay 22, provides a simple and efficient overview of many of the independent accommodation options in and around the German city.

Some of the IMEX team took an extended day trip to Frankfurt earlier this year to sample hidden coffee shops, bars, museums and parks in the city. They share memories and tips here.

IMEX in Frankfurt takes place 21 -23 May 2019. Registration for the show is free of charge and open to all who work in the meetings, events and incentive travel industry. EduMonday, its pre-show day of learning and development, is on 20 May (no charge to attend) at Kap Europa next to Messe Frankfurt. 

 

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Antigua and Barbuda strengthens its partner relations for win-win solutions for the upcoming cruise season 2019/2020

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Antigua & Barbuda’s Tourism Delegation led by the Hon. H. Charles Fernandez held a series of meetings with the country’s critical cruise line Partners  at Seatrade Cruise Global, the cruise industry’s largest annual conference being held at the newly rebuilt Miami Beach Convention Center.

The annual Seatrade Cruise Global Conference presented Antigua and Barbuda with a not to be missed opportunity to showcase its products and services to the cruise industry buyers and decision makers. It provided unique networking opportunities with industry leaders from all facets of the industry, and exposed its tourism executives to the conference’s educational industry programs, which allows participants to stay ahead of the curve.

The Country’s vibrant destination booth was a hub of activity as Antigua and Barbuda tourism officials conducted a series of one-on-one meetings, and media interviews.

In its communication to the major cruise lines the destination provided updates to its industry partners on its recently announced partnership with Global Port Holdings (GPH) and the Government’s strategic plans to expand the St. John’s Port facilities, to position the destination to take advantage of the growing industry trend towards larger cruise ships.

GPH also used the opportunity to announce its partnership with its two new Caribbean destinations Antigua and Barbuda and the Bahamas at a gala reception attended by over 600 cruise industry stakeholders.

In meeting after meeting Cruise-line executives reconfirmed their support for the initiative taken by Antigua & Barbuda to improve its infrastructure to offer the best possible service to cruise passengers. This more than anything else will ensure it remains well positioned as a premier cruise destination of choice within the Caribbean on many of the cruise line itineraries.

A major increase for the destination comes from a Key European cruise line partner TUI Cruises whose new ship the Mein Schiff 2, will increase calls to the destination after an absence of three years. Mein Schiff 2 will visit the destination on its inaugural call on November 6th with a total of 13 calls for season 2019/20 bringing over 37,000 passengers.

Another key Partner Norwegian Cruise Lines will return with the Norwegian “Epic” which was a diversion that has now become permanent, along with the Norwegian “Bliss” in the breakaway plus class. This ship will make its inaugural call on December 9th with over 4,000 passengers.

Royal Caribbean Cruise Lines (RCCL) one of the Country’s key partners confirmed that larger ships will be serving the destination this upcoming season and we will see an increase to approximately 250,000 passengers this year from its various lines. Antigua and Barbuda continues to record strong customer satisfaction scores of 8.8 out of a maximum of 10 with RCCL guests.

MSC cruise lines the world’s fastest growing cruise line, indicated Antigua is and will continue to be a key port of call as the company has 10 new ships on order and will be increasing its fleet to 29 ships with the delivery of one new ship per year up to 2027.

In a joint meeting with representatives for all the Carnival Corporation Cruise Lines the commitment was given at the highest level by all the attendee member lines to continue to work together with Antigua and Barbuda to our mutual benefit.

The Country’s presence at Seatrade also facilitates local stakeholder partners to also meet cruise line executives to increase their tours and excursion business. Local partners included Wadadli Cats, South American Ventures Ltd, The Rendezvous Company and Tropical Adventures.

Minister of Tourism the Hon. Charles Fernandez in all meetings thanked our cruise line partners for their support over the years and reconfirmed our commitment to work with all partners for win-win outcomes as the country continues on its development path to be a premier port of call for all cruise lines visiting the Caribbean.  “The Industry leaders have  reported that 2018 was the best year for profitability and have forecasted that, with a record orderbook for 70 new ships over the next three years and a record 25 million set to cruise in 2019, the Caribbean continues to be the world’s number one cruising destination. The renewed focus on improving our infrastructure by the Government has now positioned the destination to increase its share of this business,” said Minister Fernandez.

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