Transcript What affects choice of Destination

European Tourism Forum
Bordeaux, 18-19 September 2008
Ajay Prakash
Europe's Attractiveness for
Tourists from Emerging Markets:
The Indian Perspective
What Drives Indian Tourists
 Visiting friends & relatives
 Travel with family
 Seek the familiar amongst the unknown
 Cover multiple destinations
 Cruises – an emerging market
 Food – extremely important
What affects choice of Destination
 Word of Mouth
 Direct Advertising – Print
 Information from the Internet
 Information from TV
 Previous Experience
 Lure of Outdoor Adventure
 “Bragging rights”
Indian Traveler Profile
 60% in the 25 – 45 years age group
 MICE & business travelers are predominantly male
 Middle class of 350 million
 Family an important part of leisure travel
 Annual household income between 3200 – 16,000 Euro
 Average daily expenditure overseas 150 – 570 Euro
Overseas Travel by Indian nationals
8
7
6
Indians Travelling
overseas
1999-2006 (in millions)
5
4
3
2
1
0
1999
2000
2001
2002
2003
2004
2005
Source: Bureau of immigration
2006
Projected Growth

With an annual growth rate of 10.5%, the
UNWTO predicts that Indian outbound
numbers will reach 30 million by 2020.

GDP growing at about 8.5%
Indian Outbound Trip Volume by
Main Segments (per cent)
Other
20%
Leisure
20%
Business
40%
VFR
20%
Leisure grew from 6% in 1995 to an estimated 20% in 2006.
Is likely to reach 35% by 2015
ASIA
64%
AUSTRALIA/
OCEANIA
2%
POPULAR
DESTINATIONS
EUROPE
20%
AFRICA
5%
AMERICAS
9%
Europe is 2nd most popular destination
Source: Scandinavian Tourist Board
Decision makers for the
Choice of
Destination
Who
decides
I along with
my spouse
32%
I along with
my parents
12%
I along with
the tour
operator 6%
I made the
decision
on my own
26%
Family has a clear role in deciding the
destination. In some families, the chief
wage earner takes the call.
I along with
my girl friend/
boy friend 6%
I along with
my spouse and
children 16%
I along with my spouse
and parents 1%
I along with my spouse,
children & parents 1%
What Indian tourists spend on
Spending patterns
of Indian tourists
26%
Travel
16%
Food
21%
Shopping
16%
Leisure
21%
Hotels
Europe’s attractiveness
 Excellent connectivity; not too far
 Multiple airlines, competitive airfares
 Choice of package tours
 Multiple experiences in one trip
 “Family friendly” holiday
 The “Bollywood” factor
 The Schengen visa
The deterrents

The Schengen visa – complex and cumbersome


Language issues
The currency differential – Europe is seen as an
“expensive” destination

Negative publicity on racial/ethnic issues
The way forward
 More NTO representation
 Streamline the visa process
 Grant of long term, multiple entry visas
 Promote special events
 Affordable chauffeur driven car options
 Greater use of English at tourist spots and on signboards
THANK YOU