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Indian travelers expected to spend $136 billion by 2021

April 24, 2019 by Forimmediaterelease

The Indian traveler has come of age, spending approximately $94 billion in 2018, on around 2 billion domestic and international trips, helping the Indian travel and tourism industry achieve unprecedented scale.

The momentum is expected to continue and the industry will grow at a 13 percent CAGR to $136 billion by 2021, according to a report, ‘How Does India Travel’. The report outlines how India spends on travel, the influence of online channels in their purchase journey and potential growth opportunities for travel businesses till 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 travellers; 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 personalised 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 categorised 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.

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

April 17, 2019 by Forimmediaterelease

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.

Travel News | eTurboNews

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UNWTO World Forum on Gastronomy Tourism to analyze sector’s potential

April 16, 2019 by Forimmediaterelease

The countdown begins for the 5th World Forum on Gastronomy Tourism to be held on 2 and 3 May in Donostia-San Sebastián, organized by the World Tourism Organization (UNWTO) and the Basque Culinary Center (BCC). International experts will analyze and discuss the influence and capacity of gastronomy tourism to create employment and promote entrepreneurship and how to increase its potential in the future. Registration to attend the forum is still open here.

Stimulating employment

The Forum will explore how the most favorable frameworks can be created in order to stimulate job creation and entrepreneurship throughout the gastronomy tourism value chain. In addition, the speakers will try to identify the most relevant skills for this type of tourism, which should foster synergies among emerging companies, promote the inclusion of disadvantaged groups and take full account of digitalization. The event will bring together speakers and experts from all regions of the world, as well as internationally renowned Basque chefs such as Elena Arzak, who is a UNWTO Ambassador for Responsible Tourism and joint head chef of the restaurant Arzak, and Andoni Luis Aduriz.
In addition, the event will host the presentation of the UNWTO/BCC Guidelines for the Development of Gastronomy Tourism.

Sessions and startups

The forum will open with a high-level panel with ministers and secretaries of state from countries that have included gastronomy tourism as part of their strategies, such as Cyprus, Slovenia or Spain, among others. Under the theme, “Public policies as key ingredients to promote gastronomy tourism”, the participants will discuss the necessary political framework for the development of gastronomy tourism as well as its capacity to create jobs and promote entrepreneurship.

In addition to shedding light on the competencies needed to meet the demands of gastronomy tourists, the sessions will encourage the creation of environments that stimulate entrepreneurship, that connect emerging companies and better integrate disadvantaged groups in the labour market. Issues related to local communities or to under-represented groups, such as women, youth and persons with disabilities, will also be discussed. In addition, topics such as the digitalization of the sector will also be analyzed in order to identify the new opportunities they offer to companies. In addition, the latest advances in the creation of the necessary framework to stimulate entrepreneurship will be presented, connecting the different ecosystems with the startups that are part of the value chain of gastronomy tourism.

In this context, the five finalist startups of the First Global Gastronomy Tourism Startup Competition, organized by the UNWTO and the BCC, will present the most innovative projects in line with the UNWTO’s strategy and the contribution of gastronomy tourism to the sustainable development goals.

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Italian exhibition group launches key words for the 2020 tourism industry

April 15, 2019 by Forimmediaterelease

Active food and wine tourism, the quality of life, the search for beauty and creativity: the combination of ingredients on which tourists increasingly base their choice of vacation will be at the center of the 2019 expo showcase of TTG Experience, SIA Hospitality Design e SUN Beach&Outdoor Style, the three leading expos dedicated to the tourism chain – respectively focused on vacations, the hospitality sector and that of outdoors and beaches – organized by Italian Exhibition Group, being held from Wednesday 9th to Friday 11th October 2019 at Rimini Expo Centre.

The tourist flow scene confirms positive signs from Italy: in the first eleven months of 2018, with 208.5 million nights’ stay by foreign tourists in accommodation facilities (+1.8%), Italy is in second place in Europe, ahead of France (134.7 nights, +5.7%) and behind Spain (287.8 million, -1.6%). In this context, the three expos, with an unequalled offer for the expo sector, will respond precisely to the tourist trade’s requirements.

TTG Travel Experience

The 56th edition of TTG, is a national and international reference point for the Italian offer for tourists and Italian tourism abroad. The most important B2B tourist expo and the one most attended by tourism professionals will host 130 destinations, in a layout divided into three areas – The World, Global Village and Italy – conceived to highlight all the latest in vacation products.

TTG Travel Experience 2019, with two special projects, will intercept the trends that increasingly influence tourists’ choice of destination: the interest in wine and food and that for active vacations.

223 million euros were spent in 2017 by foreign visitors to Italy on food and wine, 70% more than spending in 2013. With the Eatxperience project at TTG Travel Experience 2019, an entire hall will be dedicated to food and wine tourism with a format conceived precisely for trade members: food service in hotels is also among the opportunities to include in travel proposals.

On the other hand, with a high visual impact, the special Be Active project will feature proposals, opportunities and trends for vacations in Italy, where in 2016 18.6% of the tourists indicated sport as the motivation for their vacation.

SIA Hospitality Design

The expo that is a national reference point for the hospitality sector, SIA Hospitality Design, at its 68th edition, boosts its format linked with design and Italian-made products, addressing three issues that are particularly topical for the hospitality sector: Design (design for hospitality will not only be the first focus of SIA, but also the leitmotif of the entire expo); Water: (bathrooms, wellness and swimming pools, as well as services, technology, products, cosmetics and wellness treatment); Taste (the most important food service moments for accommodation facilities: breakfasts and aperitifs). Each project will have a dedicated arena involving professionals, an exhibition and expo areas.

Sun Beach & Outdoor Style

For decades, the b2b expo that is a reference point for the outdoor, beach facility and campsite worlds, SUN Beach&Outdoor Style, at its 37th edition, has focused on two macro sectors: the beach facility world and the campsite and village show world.

Contests are confirmed, in collaboration with Mondo Balneare, Best Beach Bar, Best Design Beach and Best Italian Beach, to award prizes respectively to the best beach facilities from the point of view of food & beverage, architecture and tradition. All the new products and services on the start-up front will be featured at SUNNext, the space dedicated to innovation, in collaboration with Mondo Balneare and CNA Emila-Romagna.

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Genting Cruise Lines welcomes Explorer Dream to its fleet

April 12, 2019 by Forimmediaterelease

Genting Cruise Lines welcomed the third member of its Dream Cruises’ fleet with the christening and inaugural homeport deployment of Explorer Dream in Shanghai Wusongkou International Cruise Terminal. Explorer Dream is the first newly-launched cruise ship of the post-recalibration period in the Chinese cruise industry and her arrival also marks Dream Cruises’ debut in Eastern China, with the cruise liner purposely-built and recently renovated for the Asian and Chinese luxury market. Leveraging on the deployment of Explorer Dream, Dream Cruises’ first 200,000-tonne Global Class ship, set to debut in 2021, will also celebrate her inaugural deployment in Shanghai as the largest cruise ship to homeport in the Asia-Pacific.

Honorable guests Mr. Su Ping, Vice Magistrate of Shanghai Baoshan District Government and Mr. Hui Lim, Deputy Chief Executive Officer and Executive Director of Genting Hong Kong were joined by management executives and over 500 guests at the ceremonial launch event. The christening ceremony featured Ms. Grace Chen, the godmother of Explorer Dream and one of the most influential fashion innovators in China. The innovative christening was activated by her magic wand of dreams and aspirations and the spirit of exploration was symbolised by a majestic unicorn that led the iconic Dream Cruises’ mermaid out of the ocean and into a new realm, where she will embark on the quest to discover new horizons across the seas. With the traditional breaking of the champagne bottle against the bow of the ship, Explorer Dream officially begins her journey with Dream Cruises.

“Dream Cruises is the most recognized cruise brand in Southern China due to World Dream being positioned in the dual homeports of Guangzhou and Hong Kong. However, as we all know, the Eastern and North Chinese market is five times larger than the south and Dream Cruises will be building two 204,000 gross ton “Global Class” ships to be launched starting early 2021 in Shanghai and Tianjin to accommodate this market. These two ships, being built in our own shipyards Germany, are also designed to be the most advanced and intelligent cruise ships ever to be constructed,” said Mr. Hui Lim, Deputy Chief Executive Officer and Executive Director of Genting Hong Kong. said, “In order to prepare the foundations and increase Dream Cruises’ brand awareness in East and North China, we are pleased today to welcome “Explorer Dream” in Shanghai as the third ship in our Dream Cruises fleet.”

Explorer Dream is the second cruise ship of Genting Cruise Lines to homeport in Shanghai, made possible by the tremendous support of the Shanghai Baoshan District Government. Mr. Su Ping, Vice Magistrate of Shanghai Baoshan District Government said, “In July 2017, Genting Cruise Lines launched the Golden Sea Route 7-night itinerary in Shanghai, which garnered the Best Itinerary Award during the Shanghai Cruise Tourism Festival. In October 2018, a strategic Memorandum of Understanding was signed between the Baoshan District Government and Genting Cruise Lines to forge a new partnership. Now, the inaugural arrival of Explorer Dream, the newest member of Dream Cruises in Shanghai, will bring forth distinctive and premium cruise travel products to propel the optimal development of the cruise industry in China.”

After the inaugural ceremony, Grace Chen presented a spectacular fashion show at sea aboard the ship. Eighteen models showcased her Voyage collection and walked the runway on the Palace Pool Deck, where guests enjoyed a visual feast inspired by the spirit of exploration and discovery, both of which are the brand essence of Dream Cruises.

Since its launch two years ago, Dream Cruises has garnered numerous accolades for its two cruise ships, Genting Dream which debuted in 2016 and World Dream in 2017, including Star Performer Top Ten Ratings in the Large Resort Category, “Most Popular Family Cruise Brand in China 2018” by Global Times, Top 5 Cruise Lines in the Large/Medium sized cruise ship category by Conde Nast Traveler’s Gold List and more.

Built with German craftsmanship, Explorer Dream measures 268 meters in length and 32 meters in width. She has a total gross tonnage of 75,338 tons, 928 cabins and lower berth capacity of 1,856 passengers. The signature, luxury “ship within a ship” enclave of Dream Cruises – The Palace, provides an unprecedented “True Asian Luxury” experience to discerning travelers in China and Asia, boasting an industry leading staff to guest ratio, a majority of its suites at over 40 square meters, as well as Proprietary Butler Training endorsed by affiliated company Crystal Cruises – The World’s Most Awarded Luxury Cruise Line.

A generous variety of culinary options will also be available to cater for every taste – from inspired Asian flavours to exquisite Western delicacies. Acclaimed Australian Chef Mark Best will extend his influence on to Explorer Dream with his Seafood Grill by Mark Best serving up the ocean’s bounty in a spectacular al fresco setting. Signature Dream dining favorites will also take pride of place on the new ship including Umi Uma for Japanese delights, Silk Road for traditional Chinese fare, Blue Lagoon for Southeast Asian comfort food and Palm Court for informal refreshments and breath-taking views. For adventurous foodies, the all new Mozzarella Ristorante e Pizzeria will tantalize with a modern fusion of classic Italian dishes and pizzas with a Japanese twist.

Guests of Explorer Dream can also enjoy thematic programs on their journeys at sea including “The Connoisseurs Circle” bespoke enrichment program, featuring inspirational talks and events that are especially curated for guests of The Palace, such as a fashion talk by Grace Chen, the godmother of Explorer Dream.

As the fastest cruise ship in Asia, Explorer Dream offers a great variety of itineraries and flexibility. Sailings from Shanghai homeport will take guests on cruises to popular destinations in Japan that range from 3-night to 6-night itineraries, such as the 3-night cruises to Kyoto, Osaka or Kobe, or the 2-night round-trip cruise to Okinawa. In the month of April, when cherry blossoms in Japan are in bloom, guests can enjoy the dazzling floral display on shore, complemented by authentic Japanese experiences on the cruise, such as specialty dishes featuring Japanese Wagyu beef and pork, tuna cutting performances, Yukata trials, poolside festivals and more.

Starting from 1 July, Explorer Dream will begin her homeport deployment in Tianjin with more summer cruise options for family travelers, who will enjoy the renowned stage productions of Kaixin Mahua at sea. Taking the first step to evolve Dream Cruises into “Asia’s Global Cruise Line” by sailing outside Asian waters, in October 2019, Explorer Dream will homeport in Sydney and Auckland where she will embark on a variety of seven-night weekly itineraries to “Down Under” destinations.

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