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IndIa Market and Trade Profile

Updated April 2010

India

Contents 1 - the MArket


1. Market snapshot 2. General Market Conditions
Population/Languages Economics/Politics Exchange Rate Interest in UK University Education Annual Leave Consumer and Travel Trends

8.travel to Britain
Current Volume / Value Statistics and Historic Trends Trip Characteristics Type of Accommodation Visiting the UK as Part of a Multi-Country Trip

9. Who is the Indian Visitor to Britain?


Demographics Travelling Companions and Travelling Group Types Interest in Britain/Key Market Segments 1st Timer/Repeat Markets

3. Motivations and Attitudes to holidays


Attitudes Towards Holidays Motivation to Travel Understanding Travel Needs and Behaviour Attitudes Towards Destinations

10.Activities Undertaken in the Uk


What did Visitors Do on their Visit?

11.Caring for Indian Consumers


Understanding Indian Culture Language and Information Provision Accommodation and Food Interest and Etiquette

4. reaching Indian Consumers


Sources of Inspiration for Holidays Deciding and Planning Patterns Booking Behaviour Online Environment Media Habits

Contents 2 the trAde/B2B


12. the trade
Overview of Trade Structure Reaching the Travel Trade

5. Perceptions of Britain
Britain as a Nation Brand Motivators and Barriers to Visit Products/Experiences Identified as Attractive Competitor Destinations

13.Business Visits and events


Statistics and Trends

6. Market size, share and Forecasts for Growth


World Regions Visited and Forecasts for Growth The UKs Market Share and Forecasts for Growth

14. VisitBritain in India


Working in Partnership with VisitBritain Overseas Contacts London Contacts / Further Information Information Sources Used to Compile this Report

7.Access to Britain
Political Situation Passport and Visa Issues Gateways and Access to Britain

www.visitbritain.org/research

1) Market Snapshot
India

India

(64% s e older Who visit -44. VFR visitorslla, r45% came to the 5

d2 era were 51% age 68% male. Ov ay visits of Holid hildren) 45+). aged 9. 18% er and c e in 200 UK alon families (partn al it tradition e to vis tes thosmtouristy s / tiva Whatymoors do the m agte, 40% museumnd isit v Holida uilt herit alf of Holiday a - 45% b ps. ound h ctivities a the sho 006. Ar ries in 2 siness visits hit galle d of Bu one thir

Average S pend per Visit (AEV Average L ) 2009 ength of S tay (ALS) Market P 2009 opulation 2008 Outboun d Market Size 2009 UKs Mark et Share 2 009

Total Spe n

Total Visit s

2009 273,000 (d 269m (d 985 (up 27 nights 1.15 billio 9.1 millio 3.0% n own 24% , rank 18th ) )

d 2009

Market shape
Purpose of Visit 34% Business, 29% VFR, 27% Holiday (2009)

own 4%,

26%)

rank 16th

Length of stay 37% of all visits from India last 15 nights or more (ev en Business visits are long one s). Quarter of visit In 2009, 67% of visits too k place from Apr-Sep, wh ich are traditionally the peak mo nths

al top 5 actu
1. Bahrain ore 2. Singap 3. USA

competito

rs

Top Towns London, Birmingham, Ma nch

ester, Edinburgh (2009)

67% visited the UK only and 33% stayed in anothe r country as well on their trip (2007) 81 million users in Septem ber 2009, with 7% population penetratio n

4. UAE d 5. Thailan

Internet access

ational de top 5 aspir


rland 1. Switze 2. USA ore 3. Singap 4. UK 5. Japan

stinations

www.visitbritain.org/research

on tics tatis o to: s test UK g ips e la r th to the in.org/ Fo its a t vis visitbri . ww w

Inda produced 949,220 tonnes of tea in 2007 (Un ited Nations, FAOstat)

2) General Market Conditions


Population / Languages
The US Census Bureau puts the population of India at approximately 1.148 billion in 2008. This has shown a 1.6% increase since 2007. The population is forecast to grow to 1.33 billion by 2018, and 1.79 billion by 2048. It is also expected to overtake China in the next couple of years. Currently almost a third of the population are aged under 15 years and 16% aged 50 or over. However by 2048, the pattern will reverse as India ages like the rest of the world. Indeed, it is forecast that by 2048, a third of the population will be aged 50 or over. India has 6 official religions - Hinduism (82%), Islam (12%), Christianity (2%), Sikhism (2%), Buddhism (1%) and Jainism (1%). Languages: Hindi is the national language of India but English is gaining increasing acceptance in all spheres of life. The other official languages of India are Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Konkani, Sindhi and Sanskrit. During 2009 India represented the UKs 18th most valuable trading partner for imports and our 16th most valuable partner in terms of exports. India has strong trading ties with Europe, with the EU27 accounting for more than a fifth of India exports. Looking to the future, India is set to play an increasingly important role in global economic activity, with Global Insight estimating that by 2040 India will have the worlds 3rd largest economy in terms of sheer size of GDP, compared with its 9th position in 2000. Britains strong historical ties with India provide an immense opportunity for UK tourism to benefit from the improved living standards and heightened expectations among many millions of Indians over the coming years. Cities such as Bangalore, Chennai and Pune offer attractive opportunities for business travel to the UK as they are have developed extensive business links to the UK in sectors such as banking, call centres, biotechnology, medicine, pharmacy, nursing, breweries, stud farming or film making. Direct flights from a growing number of Indian cities to Britain help make growing this segment easier and it clearly offers immense possibilities for business extenders, but on a more cautionary note carriers have found that some routes have not proved profitable in light of the global economic downturn. According to the Capgemini and Merril Lynch Asia Pacific Wealth Report the number of High Net Worth Individuals in India declined by 32% in 2008 to stand at 84,000 (High Net Worth Individuals are those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables.) Barclays estimates that there are now around 100,000 US Dollar millionaires in India, but that this figure is set to rise sharply over the next few years, reaching 400,000 by 2017.

India

economics / Politics
India is a federal republic with the next presidential election being July 2012 and next legislative elections will be in 2014. The Indian economy is gaining strength from year to year. Though primarily agrarian with twothirds of the work-force earning their livelihood through agriculture, it also encompasses other sectors like modern industries, handicrafts, textile, manufacturing and a multitude of services. According to the World Bank more than half of Indian GDP is now accounted for by the service sector with industry accounting for 29% and agriculture 18%. Sectors like pharmaceuticals, biotechnology, nanotechnology, telecommunication, shipbuilding, aviation and tourism are showing strong potentials with higher growth rates. With the increase in the number of young, educated and net-savvy people, who are fluent in English, India is also becoming a preferred back office destination for global companies. India is capitalising on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers and the economy has posted an average growth rate of more 6% in the past dozen years, reducing poverty by about 10 percentage points. India achieved 6.4% GDP growth in 2009, despite the global economic crisis. A strong domestic economy and less exposure to the banking sector than some other Asian economies helped India to maintain healthy economic growth over the past two years. Despite continuous strong economic growth per capita income in India remains low (about $3,000 in purchasing power parity terms) according to the International Monetary Fund, though of course any average figure can mask a huge variation in prosperity between different parts of society. There has been a shift in where the population lives over recent decades; back in 1975 21% of the population lived in urban areas, today it is around 30% according to the World Bank. India ranks second worldwide in farm outputs and there has been a special emphasis on agriculture in the five year plans and the steady improvements in irrigation, technology, application of modern agriculture practices and provision of agriculture credit and subsidies have resulted in the increase in yields per unit area of all crops. According to Oxford Economics Indias economy will grow by 7.8% in 2010 and then resume average annual growth of close to 9% through to 2013. Growth will be broadly based and not solely dependent on exports, indeed, private consumption is set to grow 5.8% in 2010 and by nearly 9% per annum in the following three years. The strength of the Indian economy is such that the Reserve Bank of India has started to increase base rates in the early months of 2010 as concerns mount about the pace of inflation, with higher food prices having been a key driver.

exchange rate
The rate of Sterling against the Indian Rupee has fluctuated over the past 10 years. In January 2001, 1 = R65.97, but it gradually increased to 1 = R88.03 in August 2006 therefore making Britain much more expensive for Indian visitors. However, the Rupee has slowly strengthened against Sterling and as of March 2010 was 1= R65.97. This has made Britain a more affordable destination and has helped to keep Britain as a favoured destination for Indian travellers.

www.visitbritain.org/research

Interest in Uk University education


Although long-term studies are not counted in tourism statistics by IPS, this is an important source market for VFR visits. Thousands of Indians are pursuing studies abroad, with UK, Australia, USA and New Zealand as market leaders in attracting students. UCAS data shows that in 2008, 2330 Indian applicants applied to study at UK universities and 1674 (55%) were successful. The British Council library service in India has 80,000 private members and 4,000 corporate members. Typically, education is the last expense to be cut back on by Indian families.

2) General Market Conditions (continued)


holidays / Annual Leave
30 days is the usual annual leave entitlement in India. The main school holidays take place typically in summer April to June. The schools also close for 2 to 3 weeks over Christmas and New Year. There is a largely stable economy, a feel good factor, exchange liberalisation, huge increase in consumerism and materialistic outlook, a largely aspirational lifestyle based on generous credit card / soft loans offered in the market and travel is high on the list of what people want to do. Luxury brands are taking the market very seriously, with many premium labels opening branches in Indian cities. Destination brands must start doing the same if they are to capitalise on the increase in big spenders. Indian Luxury Consumers shop Abroad According to AT Kearney Management Consulting, Indian luxury consumers like to buy luxury goods from abroad. 36% state that this is because they think there is greater range of products and 34% believe that the show off value is higher from shopping overseas sustainability Although India is home to two of the most polluted cities in the world, Indians do seem to be aware of the need to counteract damage to the environment. For example, over half of Indians would favour higher energy taxes. Marketing campaigns around energy saving and the promotion of tree cover show how important a theme global warming has become to marketers in India. Affordable organic food seems to appeal to Indians due to its perceived high quality and health benefits. Research from the Nation Brands Index showed that around half (49.1%) of Indian respondents would be more likely to choose a holiday destination that recognises the importance of protecting the environment, much higher than average across all countries (38%).

India

Consumer trends social Changes~


Some macro social changes that are relevant to marketers in relation to Indias emergence as a consumer power have been identified. Some of these include: From Hindi to Hinglish From ethnic wear to fusion dressing From arranged marriages to arranged love-marriages From large, joint families to nuclear families and more From crediting education and knowledge as the ultimate honour, to bypassing higher studies for an urgency to start working at an early age From selecting professions that challenged the intellectual ability to selecting professions by inclination or interest (eg civil service / law versus creative industries / financial services) From destiny driven, to destination driven (more personal confidence in the future) From fearing the contamination of money to money can buy happiness From reservations about publicly displaying affection to seeking occasions that celebrate relationships (eg Valentines Day) From character-based values (What you do, and how you do it) to personality-based values (Who is doing it, and how are they doing it) Middle Class India currently adds 40 million people to its middle class every year. Analysts such as the founder of "Forecasting International", Marvin J. Cetron writes that an estimated 300 million Indians now belong to the middle class; one-third of them have emerged from poverty in the last ten years. At the current rate of growth, a majority of Indians will be middle-class by 2025. Literacy rates have risen from 52% to 65% in the same period. The average income in cities is now at around 6,500 (this is actual, not PPP figures, converted to ), compared with the rural average of 2,000. Increased exposure to global living standards through the multiple TV channels and the Internet, aggressive marketing by FMCGs, soft loan options and a feel good factor in the economy has manifested a globallyoriented capital consumer culture in the middle class. Increasing Consumerism A booming economy and the emerging middle class equal Indias biggest consumer boom. It is a huge cultural and generational shift for India: from saving / frugality to self-indulgence and living well. The Indian retail sector is seeing boom times, with a steady stream of new investment funding unprecedented levels of development activity in the countrys shopping malls and plazas. India has topped the AT Kearney annual Global Retail Development Index (GRDI), maintaining its position as the most attractive market for retail investment. The Indian retail market, one of India's fastest growing industries, is expected to grow from US$ 350 billion to US$ 427 billion in 2010. As a result of faster economic growth and liberalisation, more Indians now enjoy higher disposable incomes. Also psychographic changes are taking place. In the metropolitan areas, for instance, the booming Business Process Outsourcing and IT industries have created a mass of youngsters who are westernised in their approach to shopping and lead independent lifestyles. Indians, especially the middle class and the youth (21 years onwards) have a much higher disposable income.

www.visitbritain.org/research

2) General Market Conditions (continued)


travel trends
Youth/Students Increased opportunities in new professional areas and the absence of appropriate vocational courses at home have meant that younger people travel overseas to acquire skills. Growth of Travel Indias growing openness to the outside world has stimulated travel. especially amongst young travellers. More Indian students are studying in other countries (except for the Chinese) than in any other country worldwise. Booking Trends Indians research and book their trip using a combination of traditional distribution partners and online options. Up to 95% of bookings for outbound travellers still go through traditional travel agents. Customers rely on agents for an extremely high level of servicing and often make multiple and last minute changes to travel plans. Indian consumers have a short lead-time for booking their holidays ranging from three to six weeks on average. They tend not to book in haste, but prefer to compare prices to save money and negotiate with travel agents. Most consumers will book through a retail travel agent rather than direct. However, they will research the trip through brochures and the Internet and often book hotels and attractions online. Cruise Cruise travel is emerging as a popular holiday option among Indians. It is expanding progressively due to the willingness of people to spend more on holidays as a result of higher disposable incomes. The concept of cruising is becoming popular with Indian travellers as it is viewed as a relaxing form of holiday. Visiting the Regions Visiting key iconic attractions such as Madame Tussauds, the London Eye and the Tower of London is very common but travel trends are moving towards more independent travel and a greater interest in out of London products, in particular Scotland, the Lake District and the Cotswolds (especially for repeat visitors). Some families prefer to hire a mini-bus and have a one or two-centre holiday based in Central or Northern England. Vocational courses, workplace visits and business missions are gaining in popularity as are self-drive holidays. The Rise of Value Anecdotal intelligence reports that during the economic crisis Indians took shorter holidays and looked for good value destinations. Post recession, India is witnessing a preference for low cost air travel, increase in business-driven tourism and a rise in the number of moderate tier hotels for long haul travellers. Over the next two decades the focus will be on low cost air travel to both domestic and foreign destinations. Low cost carriers are beginning to look at India as the next big thing, and Air Asia is already in operation.

India

www.visitbritain.org/research

3) Motivations and attitudes to Holidays


the Importance of holidays in Life
VisitBritain sponsored a question on the Nation Brands Index (2009) to understand how important holidays and other activities are regarded to be by Indians. Approximately 500 online respondents were asked: How important a priority are each of the following for you in your life at the moment? Their answers are shown below.

India

Top priorities Indians top priorities in life revolve around professional development (career/self development and learning) and softer aspects such as keeping fit and healthy, spending time with the family and friends, having good quality food and drink, and having time to relax. Holidays Taking domestic holidays is at least quite important for 81% and extremely important for 22%. Taking foreign holidays is at least quite important for a slightly smaller proportion (72%) and extremely important for 13%. Internet 82% of online Indians said that general browsing on the internet was at least quite important to them and 75% said the same for social networking sites. www.visitbritain.org/research

3) Motivations and attitudes to Holidays (continued)


Indians Attitudes towards holidays
VisitBritain sponsored a question on the Nation Brands Index (2009) to understand more about Indians attitudes towards holidays. Approximately 500 online respondents were asked: We would like to ask you about your attitudes and opinions related to holidays. For each statement please give your opinion on a scale of 1 to 7, where 1 is STRONGLY DISAGREE and 7 is STRONGLY AGREE. Their answers are shown below.

India

Holiday influences Online Indians agree that they choose destinations based on their natural scenic beauty (74% agree), weather (68%), and history and culture (66%). Many like to explore new places away from the crowds when on holiday (72%), but seeing famous and well-known locations is also important to 73%. 63% of Indians agree that it is more important that holidays are exciting than relaxing. 50% agreed that films they had watched have influenced their choice of holiday destination, whilst 20% disagreed. Music has been less of an influence - 40% agreed that it had influenced their choice of destination and 28% disagreed. Booking Travel Indians were more likely to agree (46%) than disagree (22%) that they prefer to use a travel agent for holiday bookings. However, Indians were also more likely to agree than disagree that the internet is a safe way to book travel, with 59% agreeing and 14% disagreeing, which could impact on booking methods in future. (More on Booking methods is discussed in Chapter 4.) Are Indians Experienced Travellers? 29% agreed they were experienced international travellers (8% strongly agreed), whilst 48% disagreed (28% strongly). Travelling long distances may be an issue for some Indians, with 30% agreeing that it is too much effort to travel for more than 5 hours for a holiday, although 40% disagreed.

www.visitbritain.org/research

3) Motivations and attitudes to Holidays (continued)


Attitudes towards holidays
International travel used to be seen as a status symbol for affluent Indian travellers, but as travel becomes more commonplace, this notion is fading. However travel experiences still have a talk factor and are important to personal senses of achievement and identity. Due to easy access, domestic travel is considered to be convenient. Indian travellers still enjoy discovering new places in their own country, especially when there are no problems in terms of language or differences in food. Some of the knock on effects of the rise of the middle class is increased English language literacy and, crucially for destinations, a rise in the uptake of international travel. There has been a rise in FIT travellers, who are usually highly educated and open to western culture and influences. Additionally leisure travel is changing from being aspirational to a necessity. Keeping up with the Joneses is becoming increasingly significant in this segment. A threat for Britain in the future will be an increased interest in and availability of more exotic destinations. In the meantime, however, Britain remains 7th in the league for travel from India, and has enough cultural ties and current links to be a strong player in this lucrative market. The family is a core focus of Indian life and holiday time is seen as family time as well as a time for new experiences. When planning a holiday, parents not only think about themselves but also about their children, and possibly the older generation. The focus is very much on experience and getting as much as possible from their time in holiday.

India

Understanding travel needs and travel Behaviour


Middle class Indian travellers will opt for 3 to 4 star accommodation in conventional hotels. Increased affluence, greater confidence and improved lifestyle means more and more travellers prefer to stay in a hotel than with a friend or relative. Interconnecting and family rooms are important and are continually requested. The Indian visitor prefers verbal reassurance and a face-to-face interaction in addition to receiving printed information. Indian visitors still depend heavily on brochures which are left with the family to mull over and make choices on where to go. Though many houses now have computers, the majority of Internet usage still takes place in the office and it is not usually possible to give a real time tour to the decision makers or influencers in the family. Additionally, family and friends in Britain play an important role for Indian visitors. They often provide a base to stay in addition as well as providing information on itineraries, transport, attractions and emotional reassurance. In some instances close family guide, drive and even pay for Indian guests. Tradionally, Indians do not feel confident driving overseas, but are more comfortable in the UK due to good signage, driving on the same side of the road. Many Indian visitors are also not accustomed to using public transport, as in India as that is seen as a poor or middle-class option. However, according to qualitative research conducted by VisitBritain in 2006, Britain is seen to be very expensive and lots of effort goes into planning and researching the holiday to maximise value for money. They are prepared to spend money but are determined to get maximum emotional and financial value for money. By and large, the Indian travel trade perceives Europe to offer a stable, safe and secure holiday environment for Indians. Indians are safety conscious, especially the first time, inexperienced travellers, many of whom have limited international travel experience. However, their apprehensions mainly centre on issues such as harassment, mugging and petty crimes involving loss of luggage, money, tickets or passports.

Motivation to travel
Seeing a new country and having fun are the main motivations for visitors travelling to a new destination. For family travellers, the destination appeal lies in its perception as a good family destination. Sightseeing is an intrinsic element in a new destination and European countries in particular offer the opportunity to see world-famous objects and monuments. Interestingly, apart from the expected factors such as experiencing and exploring the country more indepth with different travel companions, in a different climate etc, repeat visitations were motivated by a number of new factors. Some of these are the celebration of a special personal/family milestone or a family reunion as reasons for repeat visitations. (ETC Outbound Travel report 2009) Amongst younger travellers, the motivation to travel is to explore new destinations, experience their culture and gain new experiences. Some are driven to visit unexplored destinations that other people do not know much about. I usually like to visit different places where people generally wouldnt go... they prefer safe, well known places but for me thats not important. Last time, I went to Jordan for about ten days, to Oman and the Dead Sea where you can float on water. Nature and the environment, culture and art, safety and hygiene are the most important considerations for travellers when selecting their next travel destination.

www.visitbritain.org/research

3) Motivations and attitudes to Holidays (continued)


France is strongly associated with art and culture, an art-lovers paradise; with museums, paintings, with the Louvre and the famous Mona Lisa painting. French cuisine, wine and vineyards, champagne and the wine tours are other associations that France evokes. Italy brings to mind the historical city of Rome and the world famous Leaning Tower of Pisa. Italy is perceived as a very romantic country, with Rome be inthought of as the most romantic city in the world. Italy is associated with history, architecture, churches and cathedrals. However, safety is seen to be an issue. Switzerland was spontaneously associated with mountains, snow, snowcapped peaks and beautiful landscape. It is thought of as an ideal holiday destination. It also evokes immediate association with Bollywood (Switzerland is a popular location for shooting Indian films). Switzerland is seen as a romantic country, ideal for honeymoon couples and also for family fun holidays.

India

key Competitor destinations - Aspirational Attitudes towards destinations


According to the Nielsen Outbound Travel Monitor 2008, Singapore is the most common travel destination for Indians (24%) in the next 12 months, followed by Dubai, Australia, and Malaysia, each at 17%. Britain ranks at in 7th place. Indian tourists go to Asia, particularly to South East Asia because it gives them an option for shorter trips, thus making it less expensive than more far-flung destinations. They consider the neighbouring countries to be foreign, yet familiar places. While presenting them with new experiences, the food and the climate in Asian countries are not too far from what Indians are accustomed to. Due to the rich culture of the continent, these destinations are considered to be very good especially for first-time travellers. South-east Asian countries are popular holiday destinations among budget-conscious travellers as well. The proximity of these countries to India along with the competitive pricing of travel packages and ample opportunities for shopping and sightseeing have boosted their popularity as outbound destinations. Further, these countries have also been well marketed in India. Europe represents the western, developed world. It epitomises a modern, western culture and lifestyle that is distinctly different from that in India/Asian countrie. Indians aspire to see Europe and to observe and experience the lifestyle of the European people. Another strong motivation to visit Europe is that Indians are able to visit multiple countries on the same visa and using the same currency. This is deemed to be convenient and good value-for-money. Indians are going back to places they have already visited and exploring niche markets that cater to their special interests and activities. Consequently, Tourist Boards such as the Italian Tourism Board (ENIT) are focusing on promoting lesser known areas of their country to encourage repeat travel. There is also an increased demand for off-beat and far-flung places, adventure tourism, theme holidays and spa and wellness getaways in destinations like Africa, Alaska, Bali, Morocco, Greece, Egypt, Istanbul, Japan and New Zealand. Switzerland, France, Germany, and Italy are key European competitors for the Indian market. According to the Anholt-GfK Nation Brands Index (2009), which surveys a representative n=1000 sample of the online population in India, UK is ranked 4th out of 50* destinations that would be likely for a leisure visit if money were no object. 1 2 3 4 5 Switzerland USA Singapore UK Japan 6 7 8 9 10 France Germany Italy New Zealand Canada

* Note: Not all potential destinations were asked about in this survey.

www.visitbritain.org/research

4) Reaching India Consumers


sources of Inspiration for holidays
In 2008, VisitBritain sponsored a question on the NBI survey focussing on the usage and perceived reliability of different sources of holiday information. Questions relating to sources of information that are used covered the entirety of a holiday journey from getting ideas about where to go, booking, planning what to do before and during the trip and those used after the trip was over. Below is a scatter-plot swing how often sources are used for inspiration/ideas, and how reliable those sources are seen to be.

India

Conversations with friends or relatives (42%) are seen as being the most inspirational source of information by online Indian respondents. VisitBritains qualitative research conducted in November and December 2008 showed that family and friends were the most trusted source for Indian respondents. Articles in magazines (40%), newspapers (40%), advertisements on television (39%), advertisements in a magazine or newspaper (39%) and advertisements on a website (36%) were seen as being inspiring but were considered less reliable than some other sources. Other more reliable reference points used for ideas and inspiration include travel programmes on the television (35%), guidebooks (33%), and a national tourism organisation website (32%). An important point to note is that survey findings are weighted to mirror the on-line population of each country, and as such web-based tools are likely to be over represented in the results, although with web access increasingly common (especially amongst those with the means for international travel), this is becoming less of an issue.

www.visitbritain.org/research

10

4) Reaching Indian Consumers (continued)


deciding and Planning Patterns
destination decision Family and friends in Britain play an important role in decision making. Bollywood is a major driver in visiting locations used in popular films Sports (especially EPL and cricket) are significant contributors to decision-making, especially among the youth segment. Information sources Generally Indians prefer word of mouth and personal recommendations (including those of a travel agent) rather than detailed reading when making their travel decisions. Although they may value literature for browsing this literature may not be that pertinent to their actual travel decision. (European Travel Commission India report 2010) The majority (84%) would consult the Internet if planning a trip to Britain but travel agents / tour operators are also very important (73%). Almost all Indian visitors will book tickets through a travel agent. VisitBritain qualitative research (2006) tells us that most travel planning tends to happen jointly between the couple however if the wife does not work she may take a lead role on information searching and putting together possible itineraries. Travel planning involves seeking information on things to see and do in the selected holiday destination, itinerary planning, costs, visa requirements, travel connections, accommodation options etc. Potential travellers use various information sources such as friends, family and work colleagues, travel agents and tour operators, the internet, travel magazines etc to source information on a trip. In terms of word of mouth face-to-face interactions are common and potential travellers seek advice from their circle of family and friends from around the world. Apart from phone calls, emails and online chats have become the preferred mode of communication. Social networking websites such as Facebook, Orkut and Hi5 are popular among travellers, particularly the younger ones, for sharing information and pictures of holidays in India and abroad. Travel agents and tour operators are relied upon, especially by first-time travellers to a particular destination. They are seen to be very knowledgeable and experienced about travelling in different countries and have ready brochures available with the essential information and itineraries. Travel guides, travel and lifestyle magazines, travel channels on television are other sources of information that the participants make use of. Besides information on sightseeing options, accommodation, itineraries etc, food is an area of great concern for a number of people, especially for vegetarians. Typically, group travellers may even ask to see the detailed daily menu for the entire trip (from the tour operator) prior to signing up for the package tour. Others will ask for names of good restaurants from past visitors or from people who live in the destination country (if they know anyone); they will also search on the internet. Independent Travel versus Group Travel First time Indian outbound travellers are more likely to take a package tour, but repeat and VFR visitors prefer independent trips (FIT). Interestingly, the ratio of FIT(60%) to group travel (40%) is growing, which is a sign that the Indian travel market is maturing. Additionally the high levels of repeat travel and an interest in high quality niche destinations also demonstrate this. Those on group tours contact travel agents and start with a rough idea of what they want to do. They often want to be based on London, with some time to see family in the UK. They expect the travel agent to add value in terms of suggestions and then deal with all the booking and logistics concerning flights, hotels, transport, food when on the ground. This is done within an agreed budget. However, not all travel agents know Britain that well themselves they may only know London and they are much more likely to sell what they and their potential consumers are both familiar with. Those travelling independently mainly expect quite an organised trip. There is not much inclination to go spontaneously. Consumers feel that it is expensive and long way from home. They want to make the most of the time and money. (VisitBritain Qualitative research 2006) A survey of Indian Online Best Prospects found that these exhibit great interest in travelling independently. 46% plan to travel independently with a customised itinerary mostly arranged before they leave home. Practically all the FIT travellers had also used a travel agency to make the bookings. The more seasoned, savvy international travellers plan their trip very diligently. While they may use the travel agent, they will independently cross-check the sightseeing places, the itinerary, the hotels etc. on the internet or through friends/family.

India

We plan everything very well. We use the travel agent to do all the bookings etc., but the planning, the itinerary, the hotels etc.. We like to double check to make sure its all ok.

Booking Behaviour
When buying travel there are a number of distribution channels available to consumers. They may research and book their trip using a combination of traditional distribution partners and online options. Up to 95% of bookings for outbound travel still go through traditional travel agents. Customers rely on agents for an extremely high level of servicing and often make multiple and last minute changes to travel plans. Indian consumers have a short lead-time for booking their holidays ranging from three to six weeks on average. They tend not to book in haste, but prefer to compare prices to save money and negotiate with travel agents. Most consumers will book through a retail travel agent rather than direct. However, they will research the trip through brochures and the Internet and often book hotels and attractions online.

decision to travel Lead times


In 2005, 36% of Indian residents made the decision to come to the UK between one month and three months before arriving in the UK. (IPS) % of Visits 1 7 27 36 18 6 5

Day of/day before departure 2 days, less than a week 1 week, less than a month 1 month, less than 3 months 3 months, less than 6 months 6 months, less than a year 1 year or more

www.visitbritain.org/research

11

4) Reaching Indian Consumers (continued)


online environment
ETC New Media Review www.etcnewmediatrendwatch.com has a wealth of further facts and figures on the Online Market in India. Some highlights from that and other sources are included here: The number of Internet users in India has grown exponentially in the past few years. According to Internet World Stats in September 2009, there are 81 million Internet users in India (representing 7% of the population). India is often mentioned in the same breath as China when it comes to emerging markets, but the numbers tell a different story. Despite the 19% jump in urban home Internet usage, such home access is still a novelty for most of the country, especially broadband. (eMarketer) Indians are comfortable using the Internet for searching and planning, but not yet for booking. High quality information is expected to be quickly and easily obtained. Internet usage will rapidly increase when India gets broadband connectivity, currently mainly government controlled, across the country within the next few years. Online access is primarily through the dial-up method, which is very slow and where heavy files cannot be accessed or transmitted. When it gets to be largely through broadband connectivity, hopefully in the near future, there will be a monumental leap in the online population figures in India. Google Sites ranked as the top search property in India with more than 1 billion searches conducted in June 2008, representing 81% of the market, according to comScore. Yahoo ranked second with 9%, followed by Ask Network (2%) and Microsoft Sites (1.7%). Eye for Travel suggest India as a promising market for online travel - with a relatively large proportion of the online population actually using the Internet to purchase travel, compared with other Asia Pacific markets. India is also APAC's most dynamic online travel market from a competitive standpoint (ETC New Media Review). Across the travel distribution value chain there is intense market activity, with low-cost carriers (LCCs) and Indian Railways pushing the intermediaries and consumers towards electronic fulfillment. Over half of Indian travellers use the internet to search for information about destinations aboard. Travel operators and tourist bodies need an effective online presence if they are to capture India's early adopters and increasingly-affluent travellers, according to the India Outbound Travel Monitor. The survey shows that, while traditional media such as newspapers and magazines remain the primary source for travel advertising and information for many, the internet has become a popular advertising channel drawing greater attention among Indian outbound travellers. The online platform is also gaining in popularity among travellers from India's smaller cities.

As of February 2008, China had 540 million mobile subscribers, while the US had 260 million and India had 251 million. But while the US is only adding 2 to 3 million subscribers per month, India is adding a whopping 8 to 9 million. Mobile phone service revenues in India will reach $25.62 billion in 2011, from $8.95 billion in 2006, according to Gartner. Mobile handset penetration is projected to reach 38.6% in 2011, from 12.7% in 2006. Growth will be driven by an increased focus on the rural market, aggressive promotions and handset bundle offers. More than 9 in 10 urban Indians and 58% of rural Indians will have a mobile phone by 2011. The number of mobile phone subscribers in India is nearly twice the number of landline subscribers according to the International Telecommunication Union.

Social Networking
Visits to social networking sites in India increased 51% from the previous year to more than 19 million visitors in December 2008, according to comScore. The study also found that global social networking brands continued to gain prominence in India during the year, with Orkut, Facebook, hi5, LinkedIn and MySpace each witnessing significant increases in visitation. A Nielsen Company survey of internet users in India sheds some light on their reasons for joining social networks: 1. Keeping in touch with friends and acquaintances: 82% 2. Reconnecting with old friends: 58% 3. Making new friends: 53% 4. Professional networking: 43%. These days, the world has become a global village, and social networking sites are bringing people closer together and helping them to interact and share their thoughts within the group, no matter where in the world they are, according to the Nielsen Company.

Mobile
India will have 6.9 million mobile connections by the end of 2011, according to Gartner. Although the Indian government is strongly promoting its new WiMAX as a technology to connect the country with broadband services, the country-specific mobile broadband framework makes a nationwide rollout of WiMAX cost prohibitive. www.visitbritain.org/research Although presented as an important driver for broadband policy in India, the Indian government has failed to effectively motivate operators to roll out country-wide mobile broadband. WiMAX has been selected by the Indian government to connect rural areas to the internet. However, low PC penetration will lead to limited demand. Hence, in the near term, WiMAX is still a niche technology and limited to enterprise and high-end residential users in urban India. India is poised to overtake the US to become the second largest mobile market in the world behind China, according to the Cellular Operators Association of India and Informa Telecoms and Media as cited by the Telecom Regulatory Authority of India.

VisitBritain.com
An online survey of unique visitors to VB.com/India was conducted in late 2005. Indian visitors were most likely to be looking for information on events and attractions, information on places to stay, maps, detailed information on places and regions within Britain, and information on transport within Britain. Although about a fifth were not interested in purchasing anything online, those who were interested were likely to buy transport tickets within Britain, accommodation, and flights to Britain. There was least interest in British products / souvenirs or books about Britain. The online shop has been launched in India and the products with the highest incidence of being sold so far are travel cards and Brit Rail tickets.

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4) Reaching Indian Consumers (continued)


Media habits
Next to newspapers, the highest penetration of any media is television. With the advent of cable/satellite TV into India in the mid 1980s, TV now penetrates up to around 70% of all households, including in the nonurban areas. The sheer reach of this medium offsets the high cost compared to other channels. Total TV viewership estimated by India National Readership Studies (NRS) to be 500 million (approx 80% of urban population). In 1991, the government liberated its markets, and one of the defining changes was the entry of cable television. Since then, there has been a spurt in the number of channels available. Today, Indian silver screen is a huge industry by itself, and has thousands of programmes in all the states of India. Indian TV viewers now have access to many of the same channels as the rest of the world. Penetration is deep, often extending into remote rural areas. This has led to a vastly increased awareness of the global environment, but also sometimes confusion over the difference in values of human behaviour seen on TV with what has been taught or ingrained by family and society. TV has had a profound influence in changing the lifestyles and aspirations of Indians, especially the young, and given them a global perspective as opposed to a previously narrower one defined by strictly controlled messaging through state-owned channels. Total FM Radio listeners is estimated to be by India NRS 120 million and is a rapidly growing medium in the cities across all age groups and demographics, and still highly under-exploited for marketing purposes. Major Ladies magazines Femina Cosmopolitan Savvy Society Elle Womens Era Verve Vogue Filmfare Stardust Showtime Marie Claire Harpers Bazaar Major Mens magazines Mans World GQ Maxim travel trade Publications Travel Talk Travel Trends Tabloid (TTT) Todays Traveller Travelbiz Monitor Express Travel World Explore the World SellingWorld Travel Premier News Wire Travel Span Plaza Times The World of travel and tourism Go Now/ Hospitality India World of Travel Xpress Travel and Tourism travel Magazines Outlook Traveller Lonely Planet Magazine India Today Travel Plus In-flight magazines Swagat Namaskar Jetwings Darpan Spice Jet Xpressions

India

Media sources
There are several major publishing groups in India, the most prominent among them being the Times of India Group, the Indian Express Group, the Hindustan Times Group, The Hindu group, the Anandabazar Patrika Group, the Eenadu Group, the Malayala Manorama Group, the Mathrubhumi group, the Sahara group, the Bhaskar group, and the Dainik Jagran group.There are eight major travel trade magazines. However, all newspapers and many magazines have travel sections. national newspapers Hindustan Times Times of India (TOI) Economic Times (ET) Asian Age The Indian Express The Statesman The Telegraph The Hindu Deccan Herald Deccan Chronicle The Tribune Business Standard Financial Express Malayala Manorma Punjab Kesari Midday www.visitbritain.org/research

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4) Reaching Indian Consumers (continued)


The London Eye is one of London's most popular filming locations. Shoots include "Bride and Prejudice" (2004), "Wimbledon" (2004) and "Thunderbirds" (2004). Some of the London locations where films were shot are: Waterloo Station - In "Jhoom Barabar Jhoom" (2007), it is the key location around which the story revolves, including a dance sequence starring Amitabh Bachchan. The large number of Indian films being shot here has prompted VisitBritain to bring out a 'Bollywood map' depicting the locations where popular films have been shot. Visiting such locations are a must for the thousands of Indian tourists who flock to Britain every year. Some of the most popular locations for Indian films have been Trafalgar Square, Natural History, Museum, Tower Bridge, Royal Albert Hall, Millennium Dome, Parliament, Nelson's Column and the London Eye. Southall is home to one of the largest Indian communities in London and was the setting for Simran's home in "Dilwale Dulhania Le Jayenge" (1995) and Trafalger Square was used in the memorable iconic opening scene. The Albert Memorial features in "Mujhse Dosti Karoge" (2002) and also appears in "The Jokers" (1967), starring Michael Crawford and Oliver Reed, and "Greystoke: The Legend of Tarzan, Lord of the Apes" (1984).

India

The Bollywood Effect


Bollywood is a major driver influencing and inspiring Indian people to visit destinations, which are depicted in Bollywood films. In June 2007, the Bollywood Oscars (International Indian Film Awards) were held in Yorkshire, with one highlight in Sheffield being an award ceremony estimated to have been watched by up to 350 million people around the world. The Indian film industry is one of the largest in the world and produces more than 800 films a year, with an annual turnover of Rs60 billion and employing more than 6 million people. With over a billion potential viewers, it is critical for film producers to introduce a fresh look into each new film: step forward exotic locales! The award winning Slumdog Millionaire is a 2008 British film directed by Danny Boyle and co-directed in India by Loveleen Tandan. Set and filmed in India, the film tells the story of a young man from the dharavi slums of Mumbai who appears on the Indian version of Who Wants to Be a Millionaire? It won seven BAFTA Awards (including Best Film).The film was also inspired by Indian cinema and Tandan has referred to Slumdog Millionaire as a homage to Hindi commercial cinema. The rags-to-riches, underdog theme was a recurring theme in classic Bollywood movies from the 1950s through to the 1980s, when India worked to lift itself from hunger and poverty. The equally growing TV industry is not far behind the trend of looking for new filming locations. It is imperative for Britain to realise the financial earning potential of this important segment, as well as the enormous free publicity and goodwill generated for a destination when millions of viewers worldwide go for a virtual destination trip. It is indirect advertising on a scale which is unaffordable for even the richest National Tourist Office. Virtually every NTO is wooing the multi-billion Bollywood film and entertainment industry to shoot movies, advertising spots and documentaries at their destinations. When the ATC worked with an Indian TV company to shoot a soap opera against icons like the Sydney Opera House, 15 million Indian Hindis watched the series. Singapore Tourism partially funded the blockbuster KRRISH as did the Korean Tourism Board with another multi-starrer. The South African Promotion Tourism Board has appointed a famous film star, Anil Kapoor as their board ambassador. Bollywood movies are often given names in English - they are seen as catchy - especially for the youth market, eg Bend it like Beckham, Bride and Prejudice, London Dreams, Bhaji on the Beach, Monsoon Wedding etc.

Hyde Park was one of the locations for a song in "Kabhi Khushi Kabhie Gham". The song culminates with an early morning dance sequence shot at the British Museum. John Woodward, chief executive of the UK Film Council, said the effect of film tourism was long lasting. "British films and television programmes play a powerful role in showcasing the UK to the rest of the world and that is boosting tourism. In March 2005, the then Culture Secretary of state, Tessa Jowell, struck a deal to start negotiations which makes it easier for the UK film industry to share expertise with Bollywood - the largest film industry in the world. She met Indian Film Minister, Shri Jaipal Reddy, in Delhi, to develop a coproduction treaty with India. The treaty enables film makers in the UK and India to pool their resources to create films which benefits both countries financially and culturally. The Indian market has shown fairly consistent growth in visits to the UK since 1993. However the biggest increases in the number of Indian visitors to the UK have been since 2003. Nearly a quarter of Indian visitors are VFR visitors. VFR is an very important market for Britain, and makes up a significant proportion of all visits and staying for an average of 40 nights at a time.

www.visitbritain.org/research

Sources of Inspiration for Holidays In 2008, VisitBritain sponsored a question on the NBI survey focussing on the usage and perceived reliability of different sources of holiday information. Questions relating to sources of information that are used covered the entirety of a holiday journey from getting ideas about where to go, booking, planning what to do before and during the trip and those used after the trip was over. 14

4) Reaching India Consumers (continued)


reaching Visitors from India in the Uk
In 2008 VisitBritain sponsored a question on the IPS to understand what proportion of visitors from each country engaged with different forms of media when actually in the UK. 50% of visitors from India watched British TV and 43% read British newspapers. 42% used the internet and 37% listened to the radio. When just looking at Holiday visitors 33% watched British TV, 32% used the internet, 30% read British newspapers, and 16% listened to the radio. VFR visitors were more likely to engage, with 65% watching British TV, 48% reading British newspapers, 38% using the internet, and 28% listening to the radio. 56% of Business visitors watched British TV, 53% read British newspapers, 52% used the internet and 23% listened to the radio.

India

www.visitbritain.org/research

15

5) Perceptions of Britain
how Indians rate the Uk compared to other nations
The Anholt-GfK Nation Brands Index (2009) is an online survey of approximately 20,000 respondents from 20 nations around the world. Respondents are asked to give their opinion of 50 nations, including the UK regardless of whether they have visited or not (so views captured can be based on perceptions as well as experiences). The chart below shows how the 1000 Indian respondents rated the UK for a number of different aspects compared to the other 49 nations. The chart shows a) how India ranked the UK and b) how respondents from all countries ranked the UK.

India

The chart above shows that online Indians generally have extremely positive views of the UK, usually more positive than the average respondent from other countries. tourism If money were no object, the UK would (on average) be 5th on Indians list of nations to visit. The UK is seen as being rich in built/historical heritage (3rd position), with vibrant cities (3rd). Indians even appreciate the richness of the UKs natural beauty (5th), especially its greenness. www.visitbritain.org/research Culture Indians view the UK as the 3rd most exciting country in terms of its contemporary culture (eg. music, films, art, and literature). They also see the UK as having a rich cultural heritage (5th). The UK is seen to be very strong at sports, in 6th spot. People Indians see the UK as being quite a welcoming nation compared to others (rank 7th), possibly thanks to historic links and a large Indian population in the UK. They would be positive about employing a UK national (rank 5th) and they would be very open to having close friends from the UK (3rd).

the Uk as a place to live Indians rated the UK as the 3rd best place to study for educational qualifications and 3rd as a nation with a high quality of life many Indians would be prepared to live and work in the UK for a substantial period (rank 4th). exports Indians feel positive about purchasing a product that says it was made in the UK (ranking it as the 4th best nation on this aspect) and view the UK as a creative place in terms of its cutting edge ideas and new ways of thinking (4th).

16

India

5) Perceptions of Britain (continued)


Cultural Associations
Thinking of cultural products, Indians most often associate the UK with museums, followed by films, sports, and pop videos (NBI 2009).

the Uk as a tourist destination


Indians primarily see the UK as an Exciting destination, but they also view it as Educaional, Fascinating, and Romantic. Like other Asian nations they are more likely than nations from other continents to see the UK as Romantic (NBI 2009).

www.visitbritain.org/research

17

5) Perceptions of Britian (continued)


Another interesting factor that emerged as a possible inhibitor to travel to Europe was the lack of any friends or relatives resident in the destination/destinations under consideration. This was true among all prospects, irrespective of whether they had been to Europe or not. Indians love to connect with family and friends (including distant relatives and friends of friends) when on holiday abroad. Apart from the social aspect, just the knowledge that there is someone familiar in town in the event of an emergency or for any local advice is very reassuring for Indians; this is of particular significance in the case of European countries where Indian visitors find themselves in an unfamiliar culture and among foreigners who do not speak their language. Not knowing any one in the destination country can be an anxiety area especially for those who would be travelling alone for the first time to Europe.

India

Motivators to Visit Britain


VisitBritain conducted qualitative research in 2006, to better understand perceptions of Britain. Key findings show: Britain has a strong brand image to Indian consumers and there is an emotional familiarity and comfort with Britain. The historical link to Britain is a strong common influence and there is high interest in seeing the place Indian people have grown up seeing, reading and hearing about, especially London. Bollywood is a major driver which influences and inspires Indian people to visit destinations, which are depicted in Bollywood films. London is the key area of interest, as Indian people have grown up with the famous icons of London. Outside of London there is good knowledge of other areas of Britain and London is not seen to be representative of Britain or England. Shopping and nightlife are important ingredients for a holiday. Indians travelling abroad do a fair bit of shopping and love to show-off their imported purchases to friends and relatives when they get back home. Social culture also dictates that travellers bring back gifts and trinkets for family and friends from their trips abroad. As a result, most holiday travellers will spend a fair amount of time in shops and shopping malls and will invariably buy clothes, branded perfumes, cosmetics items (watches, jewellery) and gift items/novelties. Practically all Indians shop for souvenirs, chocolates and confectionary wherever they travel. Visiting key attractions such as Madame Tussauds, the London Eye and the Tower of London is very common but there is interest in out of London products, in particular Scotland, the Lake District and the Cotswolds. Greenery of nature, parks and gardens is an interesting theme. VisitBritain research shows that the refreshing greenness of nature comes as a surprise and is unexpectedly different. It is seen to be very different from Indian landscapes and a welcome contrast to hectic cities such as Delhi. The greeness is an image they have grown up with and urban parks provide an attractive element they do not necessarily expect. www.visitbritain.org/research

Accommodation is generally de-prioritised. Many Indian visitors expect to be able to stay with friends and family for a few days and to cut down on the cost of the holiday. They also like staying in B&Bs as they are seen to be good value, charming and typically British. British food is also not seen to be a priority. They have limited knowledge of what constitutes British food and the lack of availability of vegetarian food is perceived to be problematic. Similarly there is little desire to meet local Brits as part of the British experience - it is more about seeing Britain than meeting locals. The weather is not a major consideration as it is seen by some as part of the overall experience of being in a very different country. Britain is seen to be very expensive, lots of effort goes into planning and researching the holiday to maximise value for money. They are prepared to spend money but are determined to get maximum emotional and financial value for money. Visas are viewed as an element of apprehension and present a key reason to use a travel agent. However, the British process compares favourably with the American process as it is thought to be quick, clear and reasonably understandable. VisitBritain research (2006) suggested how certain current Indian expectations of Britain could be transformed via marketing what Britain could really offer: FROM - Glimpse into the past between India and Britain TO - A chance to see vibrant, exciting, contemporary Britain FROM- History, heritage and culture TO - History, heritage and culture and ALSO offer discoveries about things people dont know about Britain. FROM - Britain as rigid and formal TO - A fun spontaneous side to Britain FROM - A need to be budget conscious TO - Deals and passes that help save on attractions and transport FROM - Busy active holidays that are based in London TO - Economical and hassle free deals that take visitors to other areas of Britain (including the Lake District and Scotland) FROM - A comfortable holiday as Indian people are generally familiar with the essence of Britain and the English language TO - Hassle free trips to take in the relaxing countryside, Britains green parks and gardens

Barriers to Visit Britain


There is interest in seeing these icons, but it lacks the excitement of seeing something new. There is also some risk in the over familiarity of London/Britain and there is a danger that Britain could be slowly deprioritised by newer, more exciting destinations. As India is changing there is also a danger in relying on the historical link between Britain and India. Indian people are becoming more self confident in India and the part India will play globally in the future. New and exciting destinations make it essential for Britain to keep its freshness and excitement. Asian destinations are growing in popularity, as are other destinations within India itself.

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5) Perceptions of Britain (continued)


Products / experiences Identified as Attractive
Recent research from Anholt-GMI Nation Brand Index confirms that Britains history and heritage are key drivers in attracting Indian visitors. In terms of product drivers overall, the Online Best Prospects research found that prospective visitors were most likely to visit castles, churches, monuments and historic houses, visit countryside, try regional food and drink, and visit museums and art galleries during a trip to Britain. Going on guided tours and visiting Royal locations are other activities well regarded by Indian visitors. Other areas of interest are shopping for souvenirs and experiencing some of Britains many cultural activities such as going to the theatre, opera, ballet or a musical. historical ties and VFr Due to historical ties to Britain and the large number of Indians living in Britain, this provides a significant amount of VFR traffic. This presents many opportunities in that Britain and its customs are a known entity. Indian visitors feel a certain level of comfort and security when visiting Britain. Qualitative research shows that family and friends in Britain play an important role for Indian visitors. They often provide a base to stay as well as provide information on itineraries, transport, attractions and emotional reassurance. In some instances, close family guide, drive and even pay for Indian guests. English is also the standard language in India for commerce, communication, education, politics and law. sport - a shared Passion The Indian middle classes, especially men, are sports mad. Cricket dominates. Other sports such as tennis (Wimbledon with Indian stars like Leander Paes, Mahesh Bhupathi and Sania Mirza now shining), Racing (Narayan Karthikeyan), Football (Bhaichung Patel) and Golf offer marketing and PR opportunities.India played its first official Test against England in 1932. Cricket Cricket, like Hockey, was brought to the Indian sub-continent by the British. There are references to cricket having being played in India in the early parts of the 18th century. By the beginning of the 19th century the game was being played in the cities of Bombay, Calcutta and Madras. According to the Guardian Unlimited, when Tendulkar bats against Pakistan, the TV audience in India exceeds the entire population of Europe! If ever proof were needed of the immense appeal of cricket to India and an important link with Britain. According to TAM, 16% of cable/satellite owning households and 17.5% of non-owning households in the six main Indian metropolitan regions watched India play England in the 2003 World Cup. During a single half hour of the India versus Pakistan match in the World Cup, 29% of all individuals in Mumbai and Delhi were viewing the match on TV. Cricket is the top sport in India and offers valuable marketing opportunities. We must however expect serious competition from other cricket-loving and tourism-promoting nations. The Australian Tourist Commission has appointed Australias retired cricket team captain, Steve Waugh, as Australias Tourism Ambassador to India. He will participate in a range of marketing initiatives, and has also done charity and fundraising work in India. A large number of India players are also playing county cricket and Indias cricket loving media and public will surely keep a track of their players performances. tennis Indian pros like Mahesh Bhupati, Laender Pacs and Sania Mirza are doing very well in international circuits and play at Wimbledon every year. Football The 2006 FIFA World Cup in Germany saw unprecedented interest from the Indian public in this sport even though India was not participating in the event. However, it seems that this has not yet translated into visits to football matches in the UK, with just 2% of Holiday visitors going to a game (IPS 2007).Additionally there has been a growing craze of English Premier League amongst the Indian youth segment. Golf India was the first country outside Great Britain to take up the game of golf. What makes golfing in India exciting is the diversity of its courses. Not only does it have the oldest gold club in the world outside Great Britain, but also the highest, at Gulmarg (altitude 2,700 metres) in Kashmir. Golfing in India has come a long way, and a large number of Indian players now compete on the international circuit. Ryder Cup in 2006 and British Open in 2005 had corporate events tailored around them. Just 1% of Holidaying Indians played golf when they came to the UK in 2007 (IPS), so this has not yet become a reason to visit. Formula one Indias first Formula 1 driver was Narain Karthikeyan but currently Karun Chandok races for the Hispania team. Indians will surely tune into their media of choice to follow Chandok's fortunes . Indians in Britain and of course those visiting Britain, will have the opportunity to cheer on Karun in person now that it has been confirmed that Silverstone will host the British Grand Prix until at least 2009 after a deal was finally agreed between the circuits owners and Formula One. Commonwealth India joined the modern Commonwealth (a voluntary association of 53 nations) following independence in 1947. This membership will continue to strengthen ties between Britain and India in the modern world. The Commonwealth Games in Delhi in 2010 can be linked through a public diplomacy campaign to build up fever for the London Olympics in 2012. Education Research tells us that travelling is a way of self-improvement and learning, to experience a different culture and increase knowledge of a foreign country. Qualifications from British universities hold high prestige and Britain is strongly perceived as being the home of the two most famous universities, Cambridge and Oxford.

India

www.visitbritain.org/research

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6) Market Size, Share, and Forecasts for Growth


travel from India to different World regions
Tourism Decision Metrics estimates there were 7.8 million outbound trips from India in 2008. There are forecast to be 10.1 million such trips by 2014 (a 30% increase).

India

Forecast Visits to World regions 2009-2014


The chart below shows forecasts from Tourism Decision Metrics for travel from India to each region of the world over the coming years. The number of forecast visits relative to 2008 are shown.

The Middle East and Southeast Asia are the most commonly visited regions from India, accounting for 32% and 25% of outbound travel respectively. Western Europe accounted for 8% of arrivals. North America (9%) and Northeast Asia (11%) are visited slightly more often.

Outbound travel from India to most regions is forecast to fall in 2009, but visitor numbers to Western European destinations are expected to recover back to 2008 levels by 2010. By 2014, an additional 350,000 visits to Western Europe are forecast (compared to 2008). Only outbound travel to the Middle East and Southeast Asia is expected to grow by a greater amount by 2014.

The UKs Market Share and Forecasts for Growth


top ten destinations Visited in 2008 (key competitors)
Bahrain and Singapore are the most frequently visited destinations from India, each capturing around 10% of outbound trips. The UK is the 10th most visited with a 4.6% share of trips.

Forecast top ten destinations in 2014


According to Tourism Decision Metrics, the UK is still expected to be the 8th most popular destination from India by 2014. 1 2 3 4 5 Bahrain Singapore Kuwait Saudi Arabia USA 6 7 8 9 10 Thailand Malaysia UK China UAE

Visits to the UK are forecast to grow by 64% relative to 2008, with over 200,000 additional visits by 2014 (increasing the UKs market share to 5.8% of outbound trips).

www.visitbritain.org/research

All data is taken from Tourism Economics, an Oxford Economics company. The Tourism Decision Metrics (TDM) model forecasts future international tourism flows, based on historic economic/tourism data and future economic forecasts. It assumes that there are no barriers to tourism growth (eg no limit to route/airport capacity, no new visa regulations) and, as a forecast, it is clearly subject to external shocks which may be natural or man-made, so should be taken as a guide only. 20

7) access to Britain
The UK Border Agency Visa Statistics 2007/08 showed 47% of the 344,490 visas issued were for Visitors. This was followed by those visiting family and friends, which accounted for 24% of the total visas issued.
Visitors Family Visit Work Working Permit students holiday Makers total

India

Post Issued Chennai 41,055 kolkata 7,980 Mumbai 61,360 new delhi 51,265 total 161,660

Issued 18,300 3,975 27,800 32,935

Issued 12,680 1,410 13,750 4,965

Issued 8,465 1,205 8,970 45,690 64,330

Issued Issued 185 80,685 55 14,625 1,535 113,415 910 135,765 2,685 344,490

83,010 32,805

The British High Commission had temporarily suspended acceptance of student visa applications from northern India and this was followed by setting up new visa rules for foreign students, to control visa fraud.

Passport and Visa Issues


Passport and are visas both required. Biometrics visas were introduced in 2007. All visa applicants are required to provide biometric data (10-digit finger scans and a digital photograph) as part of the application process. Applicants have to go in person to their nearest visa application centre to provide their biometrics and submit their application, rather than lodge their application with an agent. This process puts Britain at a competitive disadvantage with other destinations. The fact that Britain is not included in the Schengen list, can also be considered a negative factor when planning a trip to Europe. The UK visa situation has improved for leisure travel, with the opening of 12 Visa Facilitation Service (VFS) centres for visa processing in major cities outside the four metro areas.
Main Gateways Servicing India

Lhr - Daily flights from Ahmedabad, Amritsar, Bangalore, Chennai, Dehli, Hydenbad, Kochi,Kolkata and Mumbai British Airways Daily service from Delhi and Mumbai - LHR

www.visitbritain.org/research

BhX - Flights from Amritsar, Dehli and Mumbai

21

7) access to Britain (continued)


Gateways / Access to Britain
In 2009 (IPS), 94% of Indian visitors travelled to UK by air, 5% by via the Channel tunnel and 2% by sea. Air capacity between India and the UK is on the increase. June, which coincides with the long Indian summer holidays in early summer. Off-peak budget travel is likely to increase with airlines offering substantial reductions during Sept/Oct and Jan/Mar. Accommodation providers can exploit this for increased occupancies during the off-peak season. Particular opportunities exist for price sensitive consumers and the VFR segment, which can be targeted through online marketing geared towards UK friends and family.

India

In 2008, 28% of visitors from India came from the Maharashtra region. A further 25% came from Karnataka, and 13% from Delhi. According to 2006 estimates, there are about 341 airports in India, of which 243 are with paved runways and 98 are with unpaved runways. On 13th April 2005, an agreement was reached between UK and Indian governments to open up more routes to competition and to allow greater frequencies on existing routes. The capacity limit on airlines operating between India and the UK on the core routes between Delhi-Mumbai and London Heathrow more than tripled between 2004 and 2006, and permitted capacity on most other routes is now almost unrestricted. This loosening of regulatory constraints has triggered a rapid increase in the number of passengers carried by airlines of both sides, suggesting that demand had previously been significantly suppressed. Between October 2004 and October 2006, the number of direct services between India and the UK rose from 34 to 112 services per week. The increase in services has been provided by a combination of carriers already serving the market (British Airways, Virgin, Air India, Jet Airways). Despite the subsequent withdrawal of Air Sahara in Spring 2006 and Bmi in late October 2006, the result has been to increase competition on most citypair routings. Competition in the UK-India market is now amongst the most intense of any long-haul market. There are currently 112 direct flights and this is expected to increase. A further 18 airlines offer indirect services. Peak travel out of India is April-

The vast majority of traffic originates from the commercial capital of Mumbai and the political capital of New Delhi. Of the 82 additional weekly air services, 61 have been added to Delhi (+23 spw) and Mumbai (+38 spw). Such concentration of new services on destinations already served by competitors emphasises the high level of suppressed demand for services from these points. One would expect carriers to focus their expansion plans on these points until they consider greater profitability can be achieved from expanding other city-pair routings between UK and India or elsewhere. However, there is increased branching out into secondary centres (eg Chennai, Bangalore) and cash-rich smaller cities (eg Kalkota, Amritsar and Hyderabad), where large numbers of IT and multi-national companies are setting up. Ahmedabad, Chandigarh, Jalandhar, Ludhiana and Pune are also interesting potential markets, for a combination of leisure and VFR. Of the other new air services that have been launched, three Indian cities, Ahmedabad, Kolkata and Chennai, have seen an increase in frequencies, only one of which benefits from competition in direct services (British Airways and Air India both operate a 3 times a week service between Heathrow and Kolkota). Passengers flying on these routes have all benefited from an increase in service frequency. A number of completely new routes have also been added. Passengers wishing to fly between the following cities now have direct services: Birmingham Amritsar London (Heathrow) Amritsar London (Heathrow) Bangalore Qatar Airways has added Bangalore as a destination and there by provides a daily connection to the UK. Private carrier Kingfisher Airlines has started a daily non-stop return flight from New Delhi to London. The average flight time (direct service) between India and UK is 9 hours from Delhi to London, 9 1/2 hours from Bangalore to London, 10 hours from Mumbai to London and 11 hours 20 minutes from Kolkata to London.

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8)Travel to Britain
Current Volume and Value statistics / trends
2006 still holds the records for overall visits and spend from India. 2009 saw a sharp fall in visits, but spend was less affected. The market continues to show a well above average spend per visit. This is most likely linked to a long average length of stay (27 nights in 2009), as the average Indian daily expenditure is well below the all markets average of 72 per day. IPs total Visits Visits rank (League table no. Visitors to Uk) total spend spend rank (League table spend in Uk) Average spend per Visit (AeV) Average spend per day (Aed) Average Length of stay (ALs) - nights 2008 2009 Change year on year -24% down 1 place -4% down 1 place 26% 1% 26%

India

historic trends (Volume and Value of travel to the Uk)


The Indian market has shown strong, and fairly consistent growth in visits to the UK since 1993, but visits took a dip in 2009.

359,237 272,754 17 280m 15 779 37 21.3 18 269m 16 985 37 26.7

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8)Travel to Britain (continued)


Purpose of Visit seasonal spread

IndIa

Business visits marginally overtook VFR in 2005 and this has continued through to 2009, with Business now representing 34% of visits and VFR 29%. This trend is likely to contribute to rising overall spend levels from India since on average a Business visit is worth 67 per day versus 12 for a VFR visit. 2008 recorded a sharp rise in Holiday visits (accounting for 37% of all visits). However this was not sustained in 2009. Nearly a quarter of Indian visitors are VFR visitors. There are about 20 million Indians and people of Indian origin living abroad globally. The 2001 census finds that there were 466,416 UK residents who had been born in India - an increase of 14% on the 1991 census. These are most likely to be found in London and the West Midlands. VFR will always be a very important market for Britain, making up a significant proportion of all visits and staying for an average of 38 nights at a time. Although VFR visitors spend significantly less per day (only 12) than other visitors (because they can to some extent rely upon friends and family for things like accommodation and transport), they are important for average spend per visit (442) because of the long stay.

Traditionally Apr-Sep are the peak months for visits from India. In 2009, 67% of visits (and 87% of Holiday visits) came during these months. Although an unusually high proportion of visits were recorded in Jan-Mar in 2008, this appears to have been somewhat of an anomaly.

Accommodation type
43% of Indian visitors overall stayed as a free guest with friends and family when they visited the UK, which accounted for 52% of nights. 95% of VFR visitors were free guests. 45% of visitors overall stayed in a hotel or guesthouse - accounting for a lower proportion of nights (14%) as typical visitors are on Holiday or Business, who have a shorter duration of stay compared with VFR.

Length of stay
37% of all visits from India last 15 nights or more. India ranks highly among all markets for having a lengthy average (mean) stay (ALS) - 27 nights in 2009. Even Business visitors stay around that average (22) which is lengthy in comparison with many markets. VFR visits are longer - about 38 nights, but Holiday visits average out at a much shorter 10 nights. The fall in Holiday visits from India in 2009 meant that the proportion of 4-7 night stays decreased to 17% (from 33% in 2008).

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8) Travel to Britain (continued)


regional spread / top towns
97% of Indian visitors stayed in England, 66% in London, 6% in Scotland and 2% in Wales in 2009 (IPS). Visitors from India 97% 66% 39% 11% 15% 15% 6% 2% Visitors from all countries 90% 50% 46% 12% 16% 22% 9% 4%

India

totAL enGLAnd *London *rest oF enGLAnd ENGLAND'S NORTH COUNTRY CENTRAL ENGLAND SOUTHERN ENGLAND sCotLAnd WALes

Top Towns for Indian visitors in 2009 were London (178,000 visits), Birmingham (12,000), Manchester (9,000), and Edinburgh (9,000).

regional Awareness
In Online Best Prospects research (2005), we asked our Indian Best Prospects about their levels of interest in visiting different areas of Britain: London, England outside of London, Scotland and Wales.

London was the most popular destination of Britains regions (72% extremely interested). Within the regions, Scotland (42% extremely interested) had greater appeal than Wales (33%). In the Anholt-GMI Nation Brands Index Wave 3 2006, we asked 1000 Indian participants how well they felt they knew the regions of Britain giving a score of 1-7 and taking into account any of the ways they had learned or heard about each region. 1 = never heard of the region and 7 = know the region very well. Indian participants were significantly more likely to be aware of London than any of the other regions, even claiming higher awareness than the UK respondents. Awareness of other parts of England, and of Scotland was similar. Indians were least aware of Wales. Looking at the 24% of Indian respondents who had ever visited Britain, awareness scores improve. London and England (other) see the best increases, up to 6.04 and 5.31, respectively. www.visitbritain.org/research

Visiting the Uk as part of a multi-country trip


In 2007, a question was included on the IPS to understand whether visitors to the UK had stayed a night in another country before or after coming to the UK. The results are shown in the table below, with 67% visiting the UK only on this trip. India Visited Uk only Visited another country before the Uk Visited another country after the Uk Visited another country before and after the % of visitors 67% 11% 13% 8% 25

9) Who is the Indian Visitor?


demographics
In 2009, 51% of Indian visitors were aged 25-44. VFR visitors are older than the average Indian visitor with 64% aged 45 or over.

India

travelling Companions
In the IPS 2009, we asked visitors to tell us more about their travelling companions. We asked who accompanied them on their visit, excluding UK residents they may have visited during the trip. The chart below shows the percentage of visits which included each category of travel companion (multiple responses allowed as the categories are NOT mutually exclusive). The profile for India is compared to that of the Total World i.e. the average overseas visit to UK.

Overall, 68% of visitors were male and 32% female - the male bias is present in all journey purposes, but especially Business.

Male %
0 -15 16-24 25-34 35-44 45-54 55-64 65+ 1 5 32 21 19 13 9

Female %
3 8 28 18 17 19 8 CAUTION: The results do need to be treated with some caution, as even if a respondent says they are travelling with Spouse/Partner and Child(ren) aged 5-11, we dont know from this how many children were in the group, or even that the children were those of the respondent (eg they could be grandchildren, nieces / nephews, or even no blood relation at all)... Compared with the world average, Indian visitors are less likely to be travelling with adult friends and slighlty more likely to be on their own.

key travelling Group types


To overcome the fact that a mix of different travel companions could be in each group, five mutually exclusive group types have been created. In India, the proportion of visitors in each type are as follows: Traditional Family Of Spouse / Partner and Children Spouse / Partner But No Children In Travel Group Children In Group But No Spouse / Partner Not Alone, But No Children Or Partner In Group travelling Alone 9% 22% 4% 21% 45%

Indian visitors are most often found travelling to the UK alone - almost half of them in 2009. Holiday visitors are likely to be travelling with their spouse (38%), as part of a group with other adults (25%), or as a traditional family (18%).

1st timers and repeat Visitors


In 2009 (IPS), 63% of Indian visitors had visited the UK previously (in last ten years). 50% of Holiday visitors had visited before in the last ten years. www.visitbritain.org/research

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10) activities Undertaken in the UK (continued)


What did Indian Visitors actually do during their visit to the Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken part in certain activities during their visit to the UK. The chart below shows the percentage of visitors from India who said they did each of the listed activities, compared to the average inbound visitor to the UK.

India

The most common activity for visitors from India was eating in restaurants (69%), but most stayed away from pubs (just 16% went to pubs compared to 40% of all inbound visitors). Shopping was also popular, with 45% shopping for clothes/accessories, and 42% shopping for souvenirs. Of the more traditional tourism activities, 43% went sightseeing Britains famous buildings/monuments, 29% visited castles, churches, monuments, and historic houses, and 22% visited museums/art galleries. Guided tours were very popular amongst visitors from India (30%) compared to the average inbound visitor (12%). 26% visited parks/gardens, 18% walked in the countryside, and 29% explored towns, villages, and other locations away from where they were staying. www.visitbritain.org/research The following pages show the proportion of Holiday, VFR, and Business visitors undertaking each activity, to give a more complete understanding of what each get up to when they visit the UK.

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10) activities Undertaken in the UK (continued)


What did Indian holiday Visitors actually do during their visit to the Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken part in certain activities during their visit to the UK. The chart below shows the percentage of Holiday visitors from India who said they did each of the listed activities, compared to the average inbound Holiday visitor to the UK.

India

Holiday visitors most common activity was eating in restaurants (78% did so), but going to the pub was not so popular (14%). A whopping 64% of Holiday visitors from India went on a guided tour (compared to 24% of Holiday visitors from elsewhere), possibly centred around traditional tourism activities, such as sightseeing famous monuments/buildings (63%) or visiting castles, churches, monuments, or historic houses (45%). 40% went to museums/galleries, similar to the world average holiday visitor. Shopping for souvenirs (58%) or clothes/accessories (54%) was another common activity. 39% visited parks/gardens and 26% went walking in the countryside. 45% explored towns or villages away from where they were staying, a high proportion compared to the world average (33%). Zoos, aquariums etc were popular reasonably popular too (13%). In the evening 8% ended up in a nightclub. Just 10% at the theatre/ballet/opera/concert (compared to 18% of Holiday visitors from elsewhere).

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10) activities Undertaken in the UK (continued)


What did Indian VFr Visitors actually do during their visit to the Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken part in certain activities during their visit to the UK. The chart below shows the percentage of VFR visitors from India who said they did each of the listed activities, compared to the average inbound VFR visitor to

India

the UK. Considering the very long average length of stay of Indian VFR visits, it is interesting to see that they sometimes undertake fewer activities than VFR visitors from elsewhere, although in some cases they are far less likely to undertake certain activities, such as going to the pub, socialising with the locals, and sports activities. 58% of VFR visitors from India went to restaurants, but a much smaller proportion went to the pub (15%). Shopping for clothes/accessories (47%) or souvenirs (39%) were the second and third most common activities. A number of VFR visitors undertook traditional tourism activities, with 29% sightseeing famous buildings/monuments and 28% visiting castles, churches, monuments, or historic houses. 19% went to museums/art galleries. www.visitbritain.org/research 29% visited parks/gardens. 23% explored towns, villages, and other locations away from where they were staying and 11% went on a guided tour.

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10) activities Undertaken in the UK (continued)


What did Indian Business Visitors actually do during their visit to the Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken part in certain activities during their visit to the UK. The chart below shows the percentage of Business visitors from India who said they did each of the listed activities, compared to the average inbound Business visitor to the UK.

India

69% of Indian Business visitors enjoyed eating in restaurants (69%) and almost 4 in 10 shopped for clothes/accessories. 30% went sightseeing famous monuments/buildings and 19% visited castles, churches, monuments, and historic houses. Apart from going to the pub (18%), Indian Business visitors were more likely to undertake activities than the average inbound Business visitor from elsewhere, thanks to their long average length of stay.

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11) Understanding Indian Culture


Understanding Indian Culture
The culture of India has been shaped not only by its long history, unique geography and diverse demography, but also by its ancient heritages. India's diversity is visible in its languages, religions, dance, music, architecture and customs which differ from place to place within the country, but nevertheless possess a commonality. The culture of India is an amalgamation of diverse sub-cultures spread all over the country and traditions that are several millennia old.

India

Religion
India is the birth place of religions such as Hinduism, Buddhism, Jainism and Sikhism. Dharmic religions, also known as Indian religions, are a major form of world religions next to the Abrahamic ones. Today, Hinduism and Buddhism are the world's third- and fourth-largest religions respectively, with around 1.4 billion followers altogether. India is one of the most religiously diverse nations in the world, with some of the most deeply religious societies and cultures. Religion still plays a central and definitive role in the life of most of its people. In Hinduism, the cow is regarded as a symbol of non-violence, mother goddess and bringer of good fortune and wealth. For this reason, cows are revered in Hindu culture and feeding a cow is seen as an act of worship.

Indian Life
Traditional Indian culture is defined by relatively strict social hierarchy. From an early age, children are reminded of their roles and places in society. This is reinforced by the fact that many believe gods and spirits have an integral and functional role in determining their life. People typically define themselves by the groups to which they belong rather than by their status as individuals. Someone is deemed to be affiliated to a specific state, region, city, family, career path, religion, etc. People typically define themselves by the groups to which they belong rather than by their status as individuals. Someone is deemed to be affiliated to a specific state, region, city, family, career path, religion, etc. The Nuclear family is becoming a lot more central to Indian culture. Family plays a big role in Indian culture. India for ages has had a prevailing tradition of the joint family system. It is a system under which even extended members of a family all live together. The elder-most, usually the male member is the head in the joint Indian family system who makes all important decisions and rules, whereas other family members abide by it. The divorce rate is extremely low , 1.1% compared with about 50% in the United States, but this has risen significantly in recent years in urban India. According to qualitative research conducted by VisitBritain (2006), as the family is still a core focus of Indian life and holiday time is seen as family time as well as time for new experiences. When accessing a holiday, parents not only think about themselves but their children and possibly the older generation.

Namaste
Namaste or Namaskar is a common spoken greeting or salutation in the Indian subcontinent. It is commonly used in India and Nepal by Hindus, Jains and Buddhists, and many continue to use this outside the Indian subcontinent. In Indian and Nepali culture, the word is spoken at the beginning of written or verbal communication. However, the same hands folded gesture is made usually wordlessly upon departure. Taken literally, it means "I bow to you".

Just Can't Say No


Indians do not like to express 'no,' be it verbally or non- verbally. Rather than disappoint you, for example, by saying something isn't available, Indians will offer you the response that they think you want to hear. This behaviour should not be considered dishonest. An Indian would be considered terribly rude if he did not attempt to give a person what had been asked. Since they do not like to give negative answers, Indians may give an affirmative answer but be deliberately vague about any specific details. This will require you to look for non-verbal cues, such as a reluctance to commit to an actual time for a meeting or an enthusiastic response.

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11) Understanding Indian Culture (continued)


Practicalities / Language, Information and Interaction
The Indian visitor prefers verbal reassurance and a face-to-face interaction in addition to receiving printed information. Indian visitors still depend heavily on brochures which are left with the family to mull over and make choices on where to go. Though many houses now have computers, the majority of Internet usage still takes place in the office and it is not possible to give a real time tour to the decision makers or influencers in the family. It is important to be courteous, while being firm. Indians can take offence easily, even over such matters as making amendments to their programme. Rules tend to be adhered to less stringently in India, so Indian visitors may feel they can adopt the same attitude when travelling overseas. The increasing visibility in Indian media of British celebrity chefs like Gordon Ramsay, Jamie Oliver and Nigella Lawson, and their obvious interest in Indian food is gradually helping to improve the perception that Britain is not an easy place to get Indian (especially vegetarian) food.

Accommodation
Increased affluence, greater confidence and improved lifestyle means more and more travellers prefer to stay in a hotel than with a friend or relative. Interconnecting and family rooms are important and are continually requested. Indian consumers want value for money, and are likely to save on accommodation so that they can spend more on other things. Apartments are also popular in London, and affluent families are likely to stay for two to three weeks. Indians insist on en-suite facilities. At meals, they expect water to be served and to have large portions of bread/rice served with gravy-based dishes. They share dishes amongst themselves and are usually more comfortable with eating Indian food.

Food and Drink


Food is an important part of Indian culture, playing a role in everyday life as well as in festivals. Indian cuisine varies from region to region, reflecting the varied demographics of the ethnically diverse subcontinent. Indian restaurants are emerging in European cities and resorts along the routes of package tour itineraries in response to the fact that many Indian tour groups travel with their own chef. Catering to the Indian palate - especially for strict vegetarians - can be extremely important. Many Indians are vegetarian, teetotallers and relatively conservative, especially those from the business communities of Gujarat and Rajasthan. Indian Hindus do not eat beef, and Indian Muslims do not eat pork. No nonvegetarian elements should be mixed in its preparation or presentation. Indians usually like to see a fair variety of vegetarian options when ordering. Most Indians don't mind eating European or British vegetarian food, but will want to eat an Indian meal every 3rd or 4th meal. Indians tend to prefer tea to coffee Tea is commonly drunk mid-morning or in the afternoon around 5pm. Dinner time is usually late, not before 9pm in most cases.Whisky, beer, vodka and rum are the most popular alcoholic beverages among those who drink alcohol. There are around 8,750 curry houses in the UK. Although a mystery dish in India, its a well-known fact that Chicken Tikka Masala has long been a strong contender for Britains national dish! However, many of the latest food and destination guides (eg Londons Timeout) hint at the changing landscape of curry in Britain and the sheer variety of regional dishes and restaurants which can now be found. London in particular has a number of fine dining Indian restaurants with chefs who have trained in some of Indias top hotels - Rasoi Vineet Bhatia being the latest of a prestigious line, which includes Sarkhels from the same premium background but with a more local approach.

Interests
Literature, poetry ( two of the worlds longest and oldest epics are poems written in India - the Mahabharata and the Ramayana), the performing arts (music, dance, theatre and drama), visual arts (painting, sculpture, architecture) have all had a profound influence on shaping Indian culture and way of life over many centuries, and continue to do so. A few games introduced during the British Raj have grown quite popular in India: field hockey, football (soccer) and especially cricket. Although field hockey is India's official national sport, cricket is by far the most popular sport not only in India, but the entire subcontinent, thriving recreationally and professionally. Chess was invented in India. Watching television, shopping and keeping up with the Joness are national traits. Bollywood movies are extremely popular and film watching is a national passion.

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11) Understanding Indian Culture (continued)


Value for Money
Indians will always convert prices to Indian Rupees, either mentally or with a calculator, to judge value. This is an ingrained trait, irrespective of income, geographical or social group and across first-timers and repeat travellers. Most Indians prefer to be driven rather than self-drive as they aren't usually confident about routes, road rules, etc. Indians do not feel confident driving overseas, except in the UK due to good signage, driving on the same side of the road and the Indian drivers licence being valid for six months in the UK. They also prefer to spectate in sports rather than participate. Most Indians are accustomed to having domestic help at home. Many are also not accustomed to using public transport in India as that is seen as a poor or middle-class option. Accents can vary depending on which part of India the visitor is from. It can sometimes be difficult to interpret words and mannerisms, for example a shake of the head can often mean "yes". Don't be surprised to hear Indians using "Indianisms" when speaking. For example the use of "Britisher" is common, as most Indians have no idea it is not a word. Physical contact is best avoided when meeting for the first time. This is especially true where women are concerned. Being touched or approached too closely in initial meetings can be considered offensive even if the intention is entirely innocent/friendly. The most common Indian greeting is "Namaste" with palms touching. Indians don't always appreciate their Indianness being highlighted to them, as they can take it for ridicule or scorn. They like to have physical material they can carry and read rather than downloading from the web, therefore brochures, pamphlets etc. are always appreciated.

India

top tips
A tourist etiquette survey conducted by Expedia in 2008 rated Indian travellers as 2nd worst (after the French) in attributes such as politeness, flexibility regarding local cuisine, the state in which they leave their rooms on checking out, noisiness, considerateness. In fact, it isn't really so bad. Some of these behaviours are a result of living in chaotic cities and environments, so are ingrained against better judgement. However, because most Indians are used to chaos in their cities, they appreciate orderliness when they see it. Indians are in general, an impatient lot, and like to be quickly attended to. This is also as a result of living in crowded environments and the need to push to get something done in time. In general Indians are very amiable. They are very inquisitive and ask a lot of questions. They are also prone to changing their minds often. There is usually a need for patience when dealing with them. However, it has been observed that the more affluent they are, the more demanding and brusque they tend to be. Indians will always try to bargain wherever they see an opportunity, i.e. not in restaurants or retail stores, but when booking flights, hotels (through their travel agent), or for example, in flea markets. They tend to be verbose beyond necessity and to over-elaborate in their written or oral communication. Indians (especially first-time travellers) have a fairly defensive mindset when travelling abroad and don't usually expect a warm, friendly response. Therefore when they get one they tend to stay longer or spend more.

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India

12) The Trade


overview of trade structure
The travel trade in India remains reactive and last minute. Most travel agents in India are only ticketing agents focussing on the lower end of the market, i.e. first time group leisure travellers on a European tour with just two or three nights in London. This represents less than 10% of the total market to UK. The top 10 agents of most airlines are consolidators, operating on high volume and low margins through a network of sub-agents. There are about 30 wholesalers but their primary focus tends to be closed groups for Europe. The emergence of agencies servicing the individual traveller for their travel-related services is a relatively new phenomenon, though some incentive and business agents control the bulk of the market. Group leisure travel to Britain peaks from the period mid-April to the end June. Visits tend to be restricted to two or three nights in London on a 14-day European Coach Tour, with FIT (Fully Independent Travel) extensions available to the rest of Britain. Visitors should be encouraged to extend their stay in Britain by taking the London stay at the end of the itinerary, rather than the beginning. This way they can take advantage of their friends hospitality or good hotel deals in UK. Increasingly, as awareness develops, larger group operators and smaller FIT/group agents are offering bespoke packages for areas beyond London (and not as part of a European itinerary), for example Scotland and North England. Almost all travel agents work on Saturday as a full working day. Working hours are usually from 10.30am to late, even up to 8pm or later sometimes, which works well for UK contacts. Indian travel trade tends to exaggerate their market standing and reputation, credit-worthiness and goodwill. It is always advisable to use local VisitBritain offices to check, or other credit check avenues. Most will insist on credit, but care should be taken unless dealing with long-standing partners. There is not much scope for arbitration or dispute resolution in case of defaults and the legal processes in India are cumbersome and time-consuming. Travel trade associations are fairly incapable of helping in this regard. The growth of online booking trends is affecting mainly domestic travel. For overseas travel, the trade continues to be the dominant channel for booking. This is unlikely to change in the short-term. top Five Producers TCI, Kuoni India,Thomas Cook, Cox and Kings and Raj Travels make up the top five producers in India. SOTC, Kesari, CLUB 7, Dewan Travels, Compass Travels amongst others are also sending big numbers of ftravellers. There are hundreds of other agents who may not send such high numbers, but their passengers have a much higher spend and stay in Britain. So both quantity and quality are important. www.visitbritain.org/research There are approximately 150 key agents in the five cities of Delhi, Mumbai, Chennai, Bangalore and Kolkata. However, there are thousands of smaller agents or non-IATA agents/ tour operators who also do good business for UK, including business incentives and other agencies selling travel in one form or other. top Brochure Producing Agents Kuoni/ SOTC Cox and Kings Kesari Thomas Cook TCI Travel Corporation Of India Raj Travels Orbit Club 7 Wholesalers / Large Agents Commission level is 5% according to IATA, but Productivity Linked Bonuses (PLBs) are the norm, going up to 20%. The traditional wholesaler has not developed in the Indian travel industry, although a few larger agents are pursuing the development of their distribution network of smaller independent agents. Most large retail agents produce their own brochures and market their own programmes with links to inbound tour operators. Large travel agencies take reservations from consumers through their own retail networks as well as from smaller agencies. examples of non-brochure-producing wholesalers Saltours Tristar Holidays Compass Holidays.

representatives
A good range of British travel products have representation in India. If you would like to appoint a representative please contact VisitBritain London or India office for advice on suitability of your products.

Inbound tour operators


Commission Level: up to 30% Inbound tour operators (ITOs) are a key link in the distribution chain, with several ITOs actively developing the market.

Travel from the Travel Trade Perspective


Most agents are happy to consider destinations in Britain beyond London. They need to be satisfied (and in turn convince their clients) about cost, reliability of the DMC they choose to work with and the commissions they are offered. In situations where they have a regular working relationship with a particular DMC, they tend to offer those destinations that the DMC is comfortable with, rather than suggesting new ones. The biggest stumbling block in trade's eyes is the UK visa. Most trade are nervous about whether their clients will get the visa, and if so, will it be on time. The UK visa is generally seen by trade to be inconsistent and unpredictable. Visa costs are also among the highest of any destination, especially the premium visas above 6 months duration, and this is another major grouse. The UK visa application form is also seen as lengthy and cumbersome. (See Chapter 7 for more information)

retail Agents
Commission Level: Many airlines, including BA, have moved to a zerocommission regime and the travel trade is fighting to have this reversed through legal and other means. Competition between the larger travel agencies is fierce, with aggressive marketing and tactical promotions in print media. Examples include buy now, pay later promotions. The integration of IT technology in the travel retail sector by top companies like Galileo, Amadeus, Abacus and Sabre for online booking of tickets and hotel reservations has led to cost benefits which have been passed on to tourists.

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India

12) The Trade (continued)


reaching the Indian travel trade
Send VisitBritain in India your company background, literature and update in advance for inclusion in their newsletter, if appropriate, and gateway site. Carry press releases, features and photographs as these can be used for media opportunities, even at short notice. trade Fairs Indian agents will also travel to the various B2B fairs held in the UK and can be reached here. In India, there are many trade fairs which would augur participation like SATTE, various IITMs, OTMs, OTRs, as well as film tourism shows in Mumbai. The last Indian Sales Mission was held in September 2009 and the next is likely in 2011. Destination Britain and Ireland in Dubai in May 2010. If it moves to India in 2011 it will replace the Sales Mission .Upcoming trade events where VisitBritain India will host Indian buyers: VisitScotland Expo April 2011, BOBI March 2011, and Discovery (date still to be decided). Trade events in India that may be worth attending: SATTE New Delhi (February 2011) and Outbound Travel Roadshow, multi-city (Jan/Feb 2011). sales Calls Best time to approach Indian trade is October-November, as they plan for next year's peak outbound season then. Face-to-face meetings are the best way to make an impact, as trade prefers to deal with people they have met. Meetings If you will be travelling to India from abroad, it is advisable to make appointments by letter, at least one month and preferably two months in advance. It is a good idea to confirm your appointment as they do get cancelled at short notice. The best time for a meeting is late morning or early afternoon. Reconfirm your meeting the week before and call again that morning, since it is common for meetings to be cancelled at the last minute. Keep your schedule flexible so that it can be adjusted for last minute rescheduling of meetings.You should arrive at meetings on time since Indians are impressed with punctuality. Meetings will start with a great deal of getting-to- know-you talk. In fact, it is quite possible that no business will be discussed at the first meeting. Always send a detailed agenda in advance. Send back-up materials and charts and other data as well. This allows everyone to review and become comfortable with the material prior to the meeting. Follow up a meeting with an overview of what was discussed and the next steps. Business Negotiating Indians are non-confrontational. It is rare for them to overtly disagree, although this is beginning to change in the managerial ranks. Decisions are reached by the person with the most authority but the decision making is a slow process. If you lose your temper you lose face and prove you are unworthy of respect and trust. Delays are to be expected, especially when dealing with the government. Most Indians expect concessions in both price and terms. It is acceptable to expect concessions in return for those you grant. Never appear overly legalistic during negotiations. In general, Indians do not trust the legal system and someone's word is sufficient to reach an agreement. Do not disagree publicly with members of your negotiating team and successful negotiations are often celebrated by a meal.

Conducting Business in India


Greetings Religion, education and social class all influence greetings in India. This is a hierarchical culture, so greet the eldest or most senior person first. When leaving a group, each person must be bid farewell individually. Indians revere titles such as Professor, Doctor and Engineer as status is determined by age, university degree, caste and profession. If someone does not have a professional title, use the honorific title "Sir" or "Madam". Titles are used with the person's name or the surname, depending upon the person's name. Wait to be invited before using someone's first name without the title. Shaking hands is common, especially in the large cities among the more educated who are accustomed to dealing with Westerners. Men may shake hands with other men and women may shake hands with other women; however there are seldom handshakes between men and women because of religious beliefs. If you are uncertain, wait for them to extend their hand. Climate October to February is the best time to visit weather-wise. March is not too late. Avoid April to September. Mumbai, Delhi, Bangalore and Hyderabad are the key cities to visit. Also Kolkata / Chennai / Amritsar and Ahmedabad, if time and budget permit. dress Business attire is conservative. The weather often determines clothing. In the hotter parts of the country, dress is less formal.

Top Tips
Most agents will insist on credit, but care should be taken unless dealing with long-standing partners. There is not much scope for arbitration or dispute resolution in case of defaults and the legal processes in India are cumbersome and time-consuming. Travel trade associations are fairly incapable of helping in this regard.

Conducting Business with the Indians


www.visitbritain.org/research Business Cards The exchange of business cards is a very common practice for most Indians and they are often disappointed if they don't get one from a new contact, although they will not express this openly. If you have a university degree or any honour, put it on your business card. Use the right hand to give and receive business cards and always present your business card so the recipient may read the card as it is handed to them. Gifts In general, Indians like to receive and give gifts, so this is not an unusual practice. Indians believe that giving gifts eases the transition into the next life. It is not the value of the gift, but the sincerity with which it is given, that is important to the recipient. Do not give frangipani or white flowers as they are used at funerals. Yellow, green and red are lucky colours, so try to use them to wrap gifts. Gifts are not opened when received.

List of Public Holidays 2010


New Years Day Republic Day Holi (Festival of Colours) Good Friday Dussehra Gandhi Jayanthi Diwali Christmas 1 January 26 January 11 March 10 April 28 September 2 October 5 November 25 December

35

13) Business Visits and Events


In 2009, 34% of all visits from India to the UK were for business purposes, and this accounted for 51% of all spend. Indian business visits were 17% Conferences, Large meetings, Trade Fairs or Exhibitions and 83% individual business travel. Business Visitors India Trade Fair / Exhibition* Conference / Large Meeting* Other Business* All Business Visits Business Visitors India Trade Fair / Exhibition* Conference / Large Meeting* Other Business* All Business Visits Visits 2009 (000) 1 14 76 92 AeV () 823 1667 1460 1482 Business Visits (%) 2% 16% 83% 100% Aed () 152 73 65 67 spend 2009 (m) 1 24 112 137 ALs (nights) 5.4 22.7 22.4 22.1 Source: IPS Business spend (%) 1% 17% 82% 100%

India

*CAUTION - low sample sizes for types of business visitor mean that AEV / AED / ALS figures should be seen as indicative only. It is impossible to estimate from the IPS figures the proportion of business travel that is incentive travel. From the very long average length of stay compared with other Business markets, it is apparent that many Business trips will also be extended into leisure trips. Britain is Indias joint second most important export market. It is perceived as an easy place to combine business and leisure. However, Indias business ties with the USA, Germany, Japan and Korea have all increased at faster rates and into more visible consumer brand product areas. The UK faces strong competition from Germany, especially for trade fair visitors, and also from the USA, as California is synonymous with new technology. Singapore and Dubai are emerging as popular trade fair conference and incentive destinations due to their proximity to India. Mumbai is one of the main international gateways with 40% of all visitors to the UK overall departing from the city. Delhi is also a major international gateway mainly for VFR and government business. Bangalore, Indias Silicon Valley, accounts for 13% of all departures.

www.visitbritain.org/research

36

14) VisitBritain in India


Working in Partnership with VisitBritain
There are many ways of working in partnership with VisitBritain. In agreement with our strategic partners VisitScotland, Visit Wales, VisitEngland and Visit London, we operate the Overseas Network as a platform for the five brands and will continue to deliver the following activity in all these markets on behalf of these brands and the travel industry: travel trade: Account management of key carriers and major tour operators Management of a travel trade e-crm programme Staging of B2B missions and events Familiarisation visits to major trade shows in Britain Media relations: Account management of key contacts in print, broadcast and online media Database of publications and journalists Media briefs and press releases Distribution of Britain Calling Assisted press visits programme Provision of Insights and Market Intelligence: Market profiles Market insight reports Public diplomacy Management: British Council FCO Britain marketing will be delivered as specified: VisitBritain leads on marketing Britain and signposts strategic partner brands. There is a strong focus on building the long term value of the Britain brand and educating consumers about the constituent brands. For more details on these and other diverse opportunities in markets of interest to you, please visit our UK Industry Website and read our worldwide marketing prospectus, or contact your VisitBritain representative in London or overseas. www.visitbritain.org ritushri dhanker PR Manager Tel: 00 91 124 2624255 Email: ritushri.dhanker@visitbritain.org sylvia Fernandes Representative-Mumbai Tel: 00 91 22 40907171 Email: sylvia.fernandes@visitbritain.org reji thomas Mathew Representative-Bangalore Tel: 00 91 80 41266130 Email: Reji.Mathew@visitbritain.org

India

London Contacts / Further Information


For any further information relating to the Indian market, please contact: Louise Bryce E: louise.bryce@visitbritain.org T: 020 7578 1129 Why not sign up to our Industry e-newsletter, or register with VisitBritain to be kept up to date with all thats new in India and other markets worldwide? www.visitbritain.org/aboutus/newsletter.aspx Alternatively, visit VisitBritains dedicated website for the UK tourism industry and a searchable database of all VisitBritains Marketing Opportunities: www.visitbritain.org/opportunitiesadvice/index.aspx

Information sources Used to Compile this report


International Passenger Survey figures (IPS) (Office for National Statistics) nB: Data from International Passenger Survey has been made available by the Office for National Statistics and has been used by permission. The ONS do not bear any reponsibililty for the analysis or interpretation of the data reported here. Anholt-GMI Nation Brands Index - 2006 and 2007 Anholt-GfK Nation Brands Index - 2008 and 2009 VisitBritain Motivations / Barriers / Perceptions Research 2006 (Qualitative) Metrixlab Online Survey of VB.COM 2005 (Quantitative) VisitBritain Emerging Markets Online Best Prospects Research - 2005 (Quantitative) VisitBritain Foresight - Nov 05 and Jun 04 IMF / Economist / US Census Bureau CIA World Fact Book https://www.cia.gov/library/publications/theworld-factbook/index.html BBC Websites 2001 UK Census Tourism Decision Metrics, Tourism Economics UNWTO (World Tourism Organisation) FCO (Foreign and Commonwealth Office) UCAS (Universities and Colleges Admissions Service) http://www.ucas.com/ ETC (European Travel Commission) and ETC New Media Trends Internet World Stats 2009 VisitBritain India Business Plans, Insights and Intelligence Reports A T Kearney Management Consultants Ledbury Research The Window to a New India (Aura 2006) UK Border Agency Visa Statistics 2008/09 www.kwintessential.co.uk European Travel Commission India report 2010 Nielsen Outbound Travel Monitor 2008 37

overseas Contacts
VisitBritain 202-203, 2nd floor JMD Regent Square, Mehrauli Gurgaon Road Gurgaon 122001 Haryana India Fax: 00 91 124 2624200 www.visitbritain.com/in Paramjit Bawa Country Manager Tel: 00 91 124 2624211 Email: paramjit.bawa@visitbritain.org reem khokhar Marketing Manager Tel: 00 91 124 2624244 Email: reem.khokhar@visitbritain.org shivani khera Marketing Executive Tel: 00 91 124 2624266 Email: shivani.khera@visitbritain.org

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