Travel & Tourism Trends in India

Contents
• Travel & Tourism
• India - A Tourist Destination
• Types of Tourism
• Favorite Destinations
• Activities
• Seasonality of Travel
• Online Portals
• Travel & Tourism Industry in 2005
• Travel & Tourism Industry in 2006
• Travel & Tourism Industry in 2007
• Predictions for the Future
• Inbound Tourism
• International Travel Behavior

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Travel & Tourism Industry – A Brief Overview
• Travel and Tourism one of the world's largest foreign exchange earner among industries
providing employment directly to millions of people worldwide.

• The industry includes:

• Government tourism departments

• Immigration and customs services

• Travel Agencies

• Airlines

• Tour Operators

• Hotels

• Many associated service industries such as Airline catering or Laundry services,

Guides, Interpreters and Tourism promotion
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Industries earning Foreign Exchange
• Cashew Industry

• Apiculture – Honeybee industry

• Marine food industry

• Textile Industry

• Floriculture Industry

• Venture Capital

4
Welcome To India

• A 5,000 year old History of Culture, Religion, Alternative Medicine, Art and
Spirituality fascinate both budget and luxury travelers

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Tourism Scene - India
• India has been ranked 9th amongst the top tourism destinations

• India’s travel and tourism market was valued at US$42 billion in 2005

• The World Travel and Tourism Council (WTTC) have named India as one of the fastest
growing tourism industries for the next 10 to 15 years

• Tourism in India contributes 5.9% to the country’s Gross Domestic Product

• Provides employment to 41.8 million people

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TOURISM IN INDIA
Types of Tourism
• Primary Tourism • Location

• Pilgrim - visiting places of worship • Char Dham Yatra, Yamunotri,

Gangotri
• Delhi, Agra, Jaipur, Jaisalmer,
• Heritage - visiting historical
Jodhpur, Udaipur
monuments
• Adventure - adventure through
trekking, air/water sports • Sikkim, Goa, Leh, Ladakh
• Business - executives arriving in
India on business combine
• Mumbai, Delhi, Kolkata,
tourism with their business trips
Bangalore, Ahmedabad
• Leisure - hill resorts, beach
resorts, waterfalls, zoological
parks, bird sanctuaries, • Goa, Kerala
botanical/horticultural gardens

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Types of Tourism
• Secondary Tourism • Location

• Medical - medical services like • Himachal Pradesh, Jharkhand,

knee/hip replacement, heart Ooty
surgery, dental procedures and
different cosmetic surgeries
• Graveyard - tourists visiting
tombs/cemeteries of their
ancestors in India especially in • Delhi, Mumbai
Himachal Pradesh where there
are “European Cemeteries”
• Slum - tourists roam around
streets of Delhi, experiencing the
life of poor, underprivileged

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Places & Activities
• Golden Triangle - Delhi, Agra and Jaipur • Watch the world’s most beautiful monuments, forts,
palaces and heritage spots

• Sikkim
• Trekking, mountaineering, mountain biking, river
rafting, kayaking and yak safari temples,
monasteries, churches and mosques

• The Backwaters of Kerala

• Stay on a houseboat, relish authentic South Indian
meals, ride a canoe, get an Ayurvedic massage

• Goa • Beaches, Water sports, Christian Pilgrimage tours

and Goan Carnival

• Varanasi • Bathe in the Ganges and worship the morning Sun

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Places & Activities

• Leh &h Ladakh- center of Tibeto-Buddhist culture • Visit Buddhist Monasteries

• Rajasthan • Camel festival at Pushkar, sand dunes, palaces &

forts at Jaipur, Jodhpur, Udaipur, Jaisalmer
Sandunes, Indian Folk Dance and Pushkar Fair.

• Spiritual Tour – Hardwar, Rishikesh, Badrinath, • Cleanse the mind, body and soul
Kedarnath (Char Dham), Gangotri and Yamunotri

• Watch erotic sculptures with utmost architectural

• Temples of Khajuraho harmony and beauty

• Wildlife Sanctuaries - Bandhavgarh, Kaziranga, • Watch Bengal Tigers,Indian Peacocks. Asian

Kanha, Shivpuri, Periyar, Gir, Ranthambore, Elephants, Peacocks , exotic wildlife species
Bharatpur and Corbett

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Major International Tourist Attractions
• Palace on Wheels

• Heritage on Wheels

• Deccan Odyssey

• Luxury Spas & Ayurveda Resorts in India- Ananda Spa

• Star Cruise Holidays

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Major International Tourist Attractions
• India Wildlife Holidays
• Jim Corbett National Park, Ranthambore National Park

• India Pilgrimage Tours

• Adventure Tours to India

• Andaman & Nicobar Islands, Gulmarg, Darjeeling, Leh, Manali

• International Events in India

• India International Trade Fair, Jobs & Education Fair, International Handicrafts Fair, Delhi International Leather
Fair

• Fairs and Festivals of India

• Pushkar Camel Cattle Fair

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Major Tour Operators
• Popular Tour Operators in India
• Mann Tours
• Namaste Tours India
• Kesari Travels
• Travel Corporation of India
• Maharani Voyages
• Apollo Voyages
• India LTC
• J M Mehta Travels and Tours

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Seasonality Of Travel
• FEB - JUNE • MAY- OCTOBER
• Kanha National Park • Kashmir
• Ranthambore • Leh, Ladakh
• Shimla • Himachal Pradesh
• Uttaranchal • Betla National Park (Jharkhand)
• Srinagar • Srisailam National Park (Andhra
Pradesh)
• Gir Forest (Gujarat)
• Dudhwa National Park(Uttar
Pradesh)
• Jim Corbett Park (Uttaranchal)
• Rajaji National Park(East of
Haridwar)

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Seasonality Of Travel
• OCTOBER - MARCH
• Kerala
• Rajasthan
• Golden Triangle
• Goa
• Vrindavan
• Varanasi
• Khajuraho

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DOMESTIC & INTERNATIONAL
TRAVEL TRENDS
Inbound Tourism
• There has been a gradual increase in the number of foreigners visiting India during the
past few years. Increasing at the rate of 11% per annum, the inbound tourism has
brought in huge amount of foreign exchange to India

• Inbound tourism, in India, is at its peak during the months from October through
December

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Domestic travel
• 230 million domestic travelers in 2002

• There has been a sharp rise in domestic travel by 15-20% in 2003

• Inbound tourism, in India, is at its peak during the months from October through
December

• Domestic travelers prefer to visit Char Dham and South India

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Domestic travel
• States promoting Tourism
• Himachal Pradesh
• Kerala
• Tamil Nadu
• Andhra Pradesh
• Arunachal Pradesh
• Madhya Pradesh
• Rajasthan

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International Travel Behavior
• UK and USA are the prominent contributors to the Indian Travel and Tourism industry.
Each of them accounted for 15% of overall tourist traffic in India during the year 2005

• India, the cradle of Hinduism, Buddhism and Sikkhism attracts Asians such as the
Japanese, Chinese, Korean, Thai for religious reasons

• India, being the second biggest Muslim country in the world attracts a large number of
tourists from the Middle East

• India’s rich spiritual and cultural heritage attracts many international tourists

• They visit India in search of inner peace and contentment

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International arrivals in India
• India is the most preferred destination for more than 42% of the total foreign tourists
coming to South Asia

• In 2003 tourist arrivals reached 2.73 million

• The bulk of international arrivals in India, both in 2003 and 2004, have been business
travelers

• India witnessed nearly 3.5 million foreign tourist arrivals in 2004, 25.8% more than what
it was in 2003

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International arrivals in India
• The UK and the US lead arrivals into the country. Combined, they accounted for 33% of
total arrivals in 2005

• Most of the tourists, coming to India, have preferred northern and western India to any
other part of the country

• Recently there has been an inclination towards Kerala

• Adventure tourism, a major draw - 40% of tourists, who visited India in 2004-05 came
looking for escapades

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International arrivals

1998-2001 Showed an Increasing Trend

2001-2002 Showed a Negative Trend
2003-2006 Showed an Increasing Trend
2004-2005 Showed Maximum Growth Rate

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Online portals – India
• Major online airline & hotel booking portals are:
• Yatra
• Make my trip
• Cleartrip
• Travelguru
• Desiya
• Ezeego
• Ghumo

• The most popular are

• Make my trip
• Yatra
• Cleartrip

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Online portals – India
• Make my trip
• Crossed the $100 million sales mark on February 12, 2007 which was the full year target.
• It closed the financial year (ending March 31, 2007) with sales of $120 million

• Clear trip
• A 360 degree approach to customer acquisition : Marketing plan includes a healthy mix of
offline & online advertising activities.
• Cleartrip currently has a digital content sharing agreement with Lonely Plant and has launched ‘
Small World ‘
• They offer the customer exhaustive travel guide information.

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Online portals – India
• Yatra
• Second in the $750 million online travel industry with a 25% market share
• It posts an average revenue of $5 million a month with a volume of 2,500 tickets and 150
rooms a day
• The company has tied up with Reliance Capital to offer online travel solutions through the
Reliance Web World outlets

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ONLINE BOOKING – AIRLINE &
HOTEL
Online bookings
Airline
• Globally:

• 400 million flights in a year is booked using online systems

• It is saving airlines nearly US$ 2 billion a year
• distribution costs for traditional airlines were over 14-15%, now is reduced to less then 5 %

• Major international markets are the US, UK and UAE

• 40% of all American travel and 15 % of global travel is done through e-tickets

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Online bookings
Airline

• In India major market for online ticket booking are Mumbai, Delhi, Bangalore, Pune and
Hyderabad

• In India, airline tickets are the largest selling items on the internet

• In India about 40-50 passengers per day travel via e-tickets

• On a futuristic note, at least 200 online bookings a day in India is expected

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Online bookings
Hotel
• Globally, over 20% of all hotel reservations are done online through the Internet

• Between January and November 2000, $3.5 billion hotel rooms were booked online

• In 2006 the Internet accounted for 38.3% of online hotel booking, compared to 20.2% in
2005

• Demand for hotel grew at approximately 18% across India in 2003/04 and is growing at
15-20%

• On-line hotel reservations in India has risen to 7% of the business in 2005/2006,

compared to 3% in 2004/2005

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ONLINE BOOKING – OVER THE
YEARS
Online Bookings - 2005
• On-line hotel reservations in India also picked up in 2005 and constituted 3% of the
business

• Travel agents recognised the importance of the Internet as a means to distribute and
market various deals, drawing in 7% of business from this medium

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Online Bookings – 2006
• Most hotels in the country are seeing an increase of 15-20% in online bookings as
compared to 2004.

• Indians are expected to make about Rs2 crore worth of online hotel bookings in 2005-06

• Out of all the online shoppers, 20% made hotel bookings. The number is likely to go up
to 31% by 2006

• Hotels located in Mumbai and Delhi accounted for 47% of all online booking

• At present, it is the leisure travellers who make the most bookings online

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Online Travel Retail Market Present & Future - India
• Online travel grew over a 100% in 2006 and is expected to grow by over 70% in 2007
crossing $1bn dollar mark

• By 2010, India is expected to have 100 million Internet users; majority aged 25 – 39

• The country is Asia’s fastest growing market for online travel retail by 2010

• 16% of travel retail business in 2010 is expected to be sourced through the Internet

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Travel & Tourism - 2007
• 2007 will see an increase in the importance of Online Travel Agencies as can be
gauged from the 271% expected growth

• Travelocity has just set up its India office, and Amadeus has bagged five of India’s top
OTAs - Indiatimes, MakeMyTrip, Sify, TravelGuru and Yatra

• MakeMyTrip.com does business amounting to $120 million a year

• Yatra.com is averaging $5 million in gross sales per month, selling 2500 airline tickets
and 150 rooms per day

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Travel & Tourism - India - Future
• Domestic tourism is expected to increase by 15% to 20% p.a. over the next five years

• Foreign tourist arrivals are expected to grow to 5 million by 2007 and subsequently to
10 million
by 2010-12

• By 2020, the Government of India expects Travel and Tourism Industry to contribute
Rs8,500 billion to GDP

• The Confederation of Indian Industry has prepared a vision paper for 2020, which
envisages employment of 50 million persons in the Travel and Tourism industry
(currently it is 42 million) and an increase in the share of this industry to 7% of GDP

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Executive Summary
• Travel & Tourism Industry
• provides employment to about 41.8 million people
• contributes to country’s 5.9% GDP

• India attracts a large number of foreign tourists

• 2004 – 2005 witnessed 22.8% growth for International Arrivals which is the highest growth rate till
date

• Favorite destinations
• Domestic : Char Dham & South India
• International : Northern & Western India

• Future
• By 2020,Travel and Tourism Industry is expected to contribute Rs8,500 billion to India’s GDP

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Thank You