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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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The Travel & Adventure Show San Francisco, USA

April 9, 2019 by Forimmediaterelease

The Seychelles Islands marked its presence through its marketing body Seychelles Tourism Board (STB), as it exhibited at the Travel & Adventure Show 2019 edition.

The event took place in the city of San Francisco, in Northern California, on March 21-22, 2019.

The STB team was represented by the Regional Director for Africa & the Americas, David Germain, was present at the Show on the organisation’s behalf to showcase Seychelles as an extraordinary holiday destination to the 9,500 consumers, travel trade and Media who visited the exhibition at the Santa Clara Conference Center.

Mr. Germain mentions STB’s participation to the event is in line with its marketing efforts in the USA for increased arrivals from North America in 2019.

“Destination awareness and visibility is central to all we endeavor to do as Seychelles Tourism to grow our country’s market share in North America, and on the entire continent,” said Mr. Germain.

The annual participation by the STB at the Travel and Adventure shows in different cities of the United States each year, allow the STB to showcase Seychelles to a wide audience of consumers in the United States, creating awareness of the destination.

Viewed as one of North Americas largest consumer show for tourism and leisure, it is the place for holidaymakers to find information and offers about the latest travel trends, new destinations, among others.

In the prospect of raising the destination’s profile, the STB continues to increase its marketing efforts in North America during 2019, with marketing activities in different major cities in the United States during the year.

Mr. Germain further mentioned that as part of the marketing activities planned for the market for the year, media trips and agent’s familiarization visits to Seychelles would take place during the year, in collaboration with airline partners.

Mr. Germain explained that through the current available flight connectivity between North America and most major airlines, the destination has become even more accessible with easy connections to the archipelago via either Africa, Europe or the Middle East.

“Through our constant presence on the United States Market, Seychelles is today more known to the affluent North American travellers than in the last decade and the current visitor arrival figures from the Americas to the archipelago confirm that the North American market is one with great potential” said David Germain.

For the past 15 years, the Travel & Adventure Show has conducted more than 80 events in the major cities of the United States of America, connecting over 1.5 million travel enthusiasts, with over 3,700 unique travel professionals, facilitating face-to-face dialogue, which has resulted in more than 2.1 billion dollars in travel bookings worldwide.

Travel News | eTurboNews

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Bots, A.I, wearables and VR to create billion-dollar savings in the tourism industry

March 20, 2019 by Forimmediaterelease

The impact of disruptive technologies on the tourism industry is set to create multi-billion dollar savings through the use of IoT, robotics, artificial intelligence (A.I), Virtual Reality (VR) and wearable technology according to data published ahead of Arabian Travel Market (ATM) 2019, which takes place at Dubai World Trade Centre from 28 April – 1 May 2019.

The latest research from Colliers International, in partnership with ATM 2019, reveals that in addition to vast cost savings, the customer experience is set to be more streamlined with travel set to become better, smoother and more personalised with travel bookings on VR platforms, AI chatbots guiding customers through the booking process and IOT providing internet based inter-connectivity between everyday devices.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “Technology, and the use of technology, is evolving every day. The tourism industry is at the very forefront of tech innovation with companies investing huge sums of money to improve the customer journey and experience.

“Airports and airlines accounted for US$30 billion of investment in IT in 2018, however this will be offset by the implementation of technology that will see fuel savings alone top US$30 billion in the next 15 years.

“We’ve seen incredible developments in recent years, SITA, the multinational tech company to the air transport industry for example, is using robots to check travelers onto flights and to transport their luggage, while, although in the infancy stage, robots have been used in some hotels to welcome guests and show them to their room.”

ATM 2019 has adopted cutting-edge technology and innovation as its main theme and this will be integrated across all show verticals and activities, including focused seminar sessions.

Running throughout the event, professionals from across the industry spectrum will discuss the ongoing unprecedented digital disruption, and the emergence of innovative technologies that will fundamentally alter the way in which the hospitality industry operates in the region.

Discussing the defining evolutions of hospitality technology, the Travel Tech Show will return to ATM 2019 with 45 dedicated international exhibitors and an influential agenda of discussion and debate in the Travel Tech Theatre – sponsored by Sabre Corporation.

Launching this year will be the inaugural Arabian Travel Week, an umbrella brand which comprises four co-located shows: ATM 2019; CONNECT Middle East, India and Africa – a new route development forum, ILTM Arabia and new consumer-led event – ATM Holiday Shopper.

Curtis said: “The success of both ATM and ILTM Arabia has provided us with the platform to not only introduce two new events for 2019 – but to create a travel week which encompasses the Middle East’s inbound and outbound markets for general leisure tourism and luxury travel as well as providing a dedicated networking forum, CONNECT  Middle East India & Africa 2019 for the region’s top airline specialists, aviation authorities, tourism boards, airports and tour operators.”

Another debutant this year is the Arabia China Tourism Forum at ATM which takes place on the Global Stage on Sunday 28th April. With China set to account for a quarter of international tourism by 2030, an expert panel will discuss how destinations around the world can capitalise on this growth. The forum will also include a 30-minute networking session with over 80 Chinese buyers.

Once again, we are delighted to be working with our partners UNWTO and welcoming back the UNWTO Ministers Summit which will also take place on the Global Stage on Sunday 28th April.

Other Global Stage highlights will include a focused seminar on Saudi Arabia’s tourism potential, the Global Halal Tourism Summit and the debut ATM Hotel Industry Summit which will host various expert panels to debate and provide an insight on the latest hotel developments and innovative digital infrastructure shaping the future of the hospitality sector.

Following a successful launch last year, the second edition of ATM Student Conference – ‘Career in Travel’ will return on the final day of ATM. This programme allows students and graduates to listen to a range of guest speakers and travel industry leaders. It will also help provide a greater understanding of the industry and potential career paths.

As well as the ultra-innovative Travel Tech Show at ATM, other features returning to the show repertoire this year include the Digital Influencers and Buyers’ Speed Networking Events which will feature 20 Chinese buyers for the first time, the ATM Best Stand Awards and the Travel Agents Academy.

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.

For more information on Arabian Travel Market 2019, please log on to:  https://arabiantravelmarket.wtm.com/.

 

Travel News | eTurboNews

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