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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.

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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Tartan pride celebrated nationwide and in Hawaii, too

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Tartan Day is a North American celebration of Scottish heritage, observed April 6, the date on which the Declaration of Arbroath (Scottish Declaration of Independence) was submitted to Pope John XXII, in 1320. It was written in Latin, and essentially decreed Scots will choose their own king, and furthermore, Scotsmen rejected the propaganda that God desired the English kings to victimize and abuse them.  Among the signatories of this papal protest was Walter Stewart, 6th High Steward of Scotland, the progenitor of my ancestors, the Stewart Kings of Scotland.  Throughout the North American Continent, Tartan Day was celebrated this past weekend.

There are well over 4,000 tartan designs that are registered. However, there are only about 500 tartans that have ever been woven.  The most exclusive is the Balmoral, worn only by the Royal Family of The United Kingdom.  Queen Victoria made wearing tartans popular; bringing back a tradition that was once banned, following the Battle of Culloden in 1746.  She dressed all her sons in kilts regularly. Prince  Alfred Ernest Albert, Duke of Edinburgh, was the second son of Queen Victoria and Prince Albert of Saxe-Coburg and Gotha.  On August 2, 1869, this Duke of Edinburgh (called Affie by his parents) arrived in Honolulu.  The kilted Duke was feted by King Kamehameha V, the future Queen Liliuokalani, and the Queen Dowager Emma, with whom Prince Affie danced at a magnificent ball held in the original Iolani Palace.  The tartan-clad prince was so popular, the city’s leaders named one of Honolulu’s streets for him – Edinburg Street, which was the block of Bishop Street between Queen Street and Ala Moana Boulevard. Of course, Beretania (the Hawaiian word for Britannia) was already taken, for it was the road leading to the British Consul, and the community where Brits lived.  The area where the British consulate stood in 1843 is now Washington Place, the historic home of Queen Liliuokalani.  Before coming to the throne, Princess Lililuokalani along with Queen Kapiolani, attended Queen Victoria’s Golden Jubilee in London in 1887. The Hawaiian Royal family was one of Queen Victoria’s greatest admirers.   Affie started a wave of Brito-mania that endured for decades.

With the rise of kilts, so to speak, Victorian clan chiefs adopted tartans for their respective clans.  Later, individuals, organizations, and governments followed suit. There is even an official tartan for the State of Hawaii. British motifs have been popular in Hawaii for over two centuries – recall that the Union Jack of the British Empire is represented on the Hawaiian flag.

Members of The Saint Andrew’s Society of Hawaii, The Caledonian Society of Hawaii, Hawaiian Scottish Association, Friendly Sons of St. Patrick, and tartan-proud members of the Celtic community gathered at the Hawaii State Capitol to celebrate Tartan Day on April 6. The capitol is across the street from Washington Place, home to the original British community in Honolulu, and location for the formal dinner given to HM The Queen Elizabeth II on her Hawaiian visit.  Although most people associate tartans with Scotland, they are popular in multiple Celtic nations.  Dr. Nancy Smiley, MD, brought a variety of Celtic flags to the Capitol, which were gallantly flown, all day long, to celebrate Tartan Day.

Some of the tartan enthusiasts posed in front of the Father Damien statue, honoring the Catholic priest who gave his life helping Hawaiians afflicted by Hansen’s Disease (leprosy).  The victims suffered the humiliation and injustice of being banished to Kalaupapa, on the island of Molokai, beginning in 1866.  Scottish author Robert Louis Stevenson was a friend and guest to King David Kalakaua and Princess Victoria Kaiulani (heiress to the Hawaiian throne). The princess’ father was Archibald Cleghorn, a wealthy Scottish financier who married the king’s sister, Princess Likelike.  Robert Louis Stevenson was the Stephen King or J. K. Rowling of his era, and he took a keen interest in Hawaii and her people. He traveled to Molokai for eight days and seven nights in 1889 to research the work of Father Damien, after which he published a scathing 6,000 word polemic attacking the way these patients were discarded like human garbage. Stevenson targeted Rev. Dr. Charles McEwan Hyde, a Congregationalist “Christian” who placed great importance on fashion and how he looked in public, but was rather hateful toward the Catholic Priest Damien, and, by consequence, Damien’s passionate devotion to the leprosy victims.  At one point, Stevenson said he wanted to stab the good Reverend Hyde to death.  A blood-soaked white shirt wouldn’t look so fabulous on the dapper Reverend Hyde, you know. The Scottish rebuke from Stevenson became the most famous account of Father Damien, featuring the future saint in the role of a European aiding a benighted and maltreated native people.

The famed Father Damien statue was unveiled at the Capitol Rotunda, almost exactly 50 years ago, on April 15, 1969. Damien’s story, as told by Stevenson, is an attestation to fiery Scottish tempers – a people who are resolute in standing against injustice, just like they did at Arbroath in 1320.  And the statue is as hard as a hard-headed Scot  – constructed from bronze. Bronze is generally harder than wrought iron.   Not many craftsmen are able to produce works like this anymore. This piece was cast at a foundry in Viareggio, Italy, an area famous for creating sculptures, dating way back to 1541.

Marco Airaghi, who recently flew to Hawaii from Northern Italy, participated in the Tartan Day gathering. “The general area of Switzerland/Italian Alps/Austria is now accepted by anthropologists as being the aboriginal home of the Celtic peoples,” Airaghi said. “I’m a citizen of Italy, but Celtic passion runs deep in my soul, and these Hawaiian Celts are so much fun!  They exhibit a lot of integrity, they work very hard, and they are highly compassionate. I like that.”

Follow the author at facebook.com/ILoveAnton.

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Middle East visitors to Egypt to increase 50% by 2022, ATM report reveals

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Arrivals from the Middle East to Egypt are expected to increase 50% from 1.49 million in 2018 to 2.23 million in 2022 with visitors from Saudi Arabia driving this growth, according to data published ahead of Arabian Travel Market 2019, which takes place at Dubai World Trade Centre from 28 April – 1 May 2019.

While arrivals from Europe are expected to be the largest contributor on a regional basis, increasing from 6.2 million in 2018 to 9.1 million tourists in 2022, the latest research from Colliers International revealed arrivals from the Middle East will actually witness the highest Compound Annual Growth Rate (CAGR) at 11%.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “Over the last 12 months, Egypt’s tourism industry has witnessed healthy and steady growth, with arrivals up 14.5% from 8.3 million in 2017 to 9.5 million in 2018. Growth has been fuelled by the cheaper Egyptian Pound and government incentives for charter airlines operating international flights.

“Adding to this, we are witnessing this growth first hand at ATM with the total number of attendees coming from Egypt increasing 16% YoY.”

Taking advantage of this resurgence in tourists are some of Egypt’s most prominent tourism companies including Dana Tours, Nicolas Tours and Standard Tours who will exhibit at ATM 2019 – and of course the Egyptian Tourism Promotion Board who will have a major presence too.

Egypt tourism capital investment is estimated to reach US$ 4.2billion (EGP 75bn) in 2019, up 25 per cent on 2018, as the country strives to keep pace with an ongoing leisure travel boom and GDP growth.

The data from Colliers revealed that Egypt’s total tourism revenue will increase at a CAGR of 16.5% between 2018 and 2022 – outperforming the business segment. During 2017 and 2018, the leisure spend was US$ 13.79billion (EGP 239bn) and US$ 16.67billion (EGP 289bn) respectively, while business totaled US$ 1.93billion (EGP 33.5bn) and US$ 2.36billion (EGP 41bn) over the same period.

“The overall revenue generated by the leisure segment in 2018 represented 87% of total tourism spend and we expect this growth to continue as a series of new government and private sector attractions and investments are unveiled – including the development of new airports and new luxury hotel resorts in Red Sea destinations Sharm El Sheikh and Hurghada,” Curtis said.

Egypt has a diverse range of source markets – decreasing the risk of being over-reliant on one specific market. Germany, Russia, the UK and Italy are Egypt’s top four source markets, with the first and last in top gear – both growing 29% in 2018 – and showing the highest CAGR growth of 11%.

The UK, which recorded just a 4% increase in arrivals between 2017 and 2018, has traditionally been a long-standing major source market for the Red Sea resort of Sharm El Sheikh. However, an ongoing ban on direct flights between the two destinations has stifled visitor numbers.

Curtis added: “It is hoped the recent resumption of Serbian flights to Sharm El Sheikh after a six-year absence and the introduction of Turkish Airlines’ daily flight from Moscow to the Red Sea via Istanbul, will kick-start direct flights between the UK and Egypt, and of course Russia and Egypt.”

ATM, considered by industry professionals as a barometer for the Middle East and North Africa tourism sector, welcomed over 39,000 people to its 2018 event, showcasing the largest exhibition in the history of the show, with hotels comprising 20% of the floor area.

Brand new for this year’s show will be the launch of Arabian Travel Week, an umbrella brand comprising four co-located shows including ATM 2019, ILTM Arabia, CONNECT Middle East, India & Africa – a new route development forum and new consumer-led event ATM Holiday Shopper. Arabian Travel Week will take place at Dubai World Trade Centre from 27 April – 1 May 2019.

About Arabian Travel Market (ATM)

Arabian Travel Market is the leading, international travel and tourism event in the Middle East for inbound and outbound tourism professionals. ATM 2018 attracted almost 40,000 industry professionals, with representation from 141 countries over the four days. The 25th edition of ATM showcased over 2,500 exhibiting companies across 12 halls at Dubai World Trade Centre.  Arabian Travel Market 2019 will take place in Dubai from Sunday, 28th April to Wednesday, 1st May 2019. To find out more, please visit: www.arabiantravelmarket.wtm.com.

About Arabian Travel Week

Arabian Travel Week is an umbrella brand comprising four co-located shows including Arabian Travel Market and ILTM Arabia as well as CONNECT Middle East, India and Africa – a new route development forum launching this year and ATM’s first ever consumer event – ATM Holiday Shopper. Providing a renewed focus for the Middle East’s travel and tourism sector – under one roof over the course of one week – the inaugural Arabian Travel Week will take place at Dubai World Trade Centre from Saturday 27th April – Wednesday 1st May 2019. For more information visit: arabiantravelweek.com

About CONNECT

CONNECT Route Development Forum delivers a total networking experience, bringing together airports, airlines and aviation suppliers in a format that offers formal one-to-one pre-arranged meetings, engaging industry seminars together with social opportunities to cement relationships with existing clients and engage with new ones. Created and organised by The Airport Agency-France, CONNECT is now in its 16th year and set to attract over 650 participants in June 2019 at its flagship event taking place in Cagliari, Sardinia. For more information, visit: www.connect-aviation.com

The inaugural CONNECT Middle East, India & Africa event will be the first and only networking forum in the Middle East. Ideally located in Dubai to address the booming aviation market of the Middle East, it will bring together the aviation and the tourism industry which are the backbone and catalyst to economic development. For more information, visit: www.connect-aviation.com/2019-meia/

About ATM Holiday Shopper

ATM Holiday Shopper is the brand-new travel event for consumers offering the very best travel and tourism discounts and deals plus the chance to learn about a range of emerging and unexplored destinations and activities from destinations around the world.  The inaugural event will take place in Hall 1 of the Dubai World Trade Centre on Saturday, 27th April 2019 from 12:00 – 20:00. For more information, visit: www.atmholidayshopper.com

About ILTM Arabia

International Luxury Travel Market Arabia is an exclusive event for those looking to attract HNW travellers from the Middle East to their destination. Returning for its third year, ILTM will allow international luxury suppliers and key luxury buyers to connect via one-to-one pre-scheduled appointments and networking opportunities. ILTM will take place on Sunday 28th April and Monday 29th April 2019. For more information, visit: www.iltm.com/arabia/

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United Airlines: Non-binary gender booking options

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United Airlines today announced it has become the first U.S. airline to offer non-binary gender options throughout all booking channels in addition to providing the option to select the title “Mx.” during booking and in a MileagePlus customer profile. Customers now have the ability to identify themselves as M(male), F(female), U(undisclosed) or X(unspecified), corresponding with what is indicated on their passports or identification.

“United is determined to lead the industry in LGBT inclusivity, and we are so proud to be the first U.S. airline to offer these inclusive booking options for our customers,” said United’s Chief Customer Officer Toby Enqvist. “United is excited to share with our customers, whether they identify along the binary of male or female or not, that we are taking the steps to exhibit our care for them while also providing additional employee training to make us even more welcoming for all customers and employees.”

As part of implementing these new changes, United has worked with the Human Rights Campaign and The Trevor Project on employee training initiatives. These initiatives include teaching employees about preferred pronouns and the persistence of gender norms, LGBT competency in the workplace and other steps to make United an inclusive space for both customers and employees.

“At the Human Rights Campaign, we believe being acknowledged as the gender you identify with is part of treating everyone with dignity and respect,” said Beck Bailey, acting director of the Workplace Equality Program. “By providing non-binary gender selection for ticketing and the gender-inclusive honorific ‘Mx’ in user profiles, United Airlines is taking an important step forward for non-binary inclusion.”

“The Trevor Project is grateful for United Airlines’ support of our life-saving work on behalf of LGBTQ youth,” said Amit Paley, CEO & Executive Director of The Trevor Project. “We are thrilled to bring Trevor’s expertise on the mental health of LGBTQ people to United to ensure its employees maintain safe and inclusive spaces for LGBTQ employees and guests.”

Alongside partner organizations, customers, and employees, United will continue working to build the world’s most inclusive airline. The changes to the booking process are now currently available.

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