September 23, 2020

Outbound Tourism - India

What you need to know to about Indian Outbound Tourism market to succeed

Indian Outbound Tourism - An Overview

The Indian Outbound Tourism market continues to grow and based on data that had emerged from last successful Summer Vacation in India (2019), very Interesting trends and numbers are coming to light. Domestic Tourism and Outbound Tourism from India have both registered a growth and with the numbers growing this is a further Indication of why investing in the India Outbound Market can be a game changer for Tourism Brands.

All Indications point to the fact that the Indian Outbound Tourism Market would be a Key Player in the International Tourism Segment in the coming Years. If you are a Tourism Brand or a Luxury Hotel or a DMC who is planning to get a share of Indian Outbound Tourism then these should help you.

We have have broken down the Outbound Tourism facts into

The Why” 

“The What”
“The How”

and given our inputs for the Interested Tourism Companies to consider before they enter the Indian Market or for those already in the market to fine tune their offerings. (even if you don’t work with us, these should help) 

Reference Guide

The Why you should consider the India Outbound Tourism Market

  • India’s GDP is growing at a Steady Rate of 7% P.A.
  • A Huge Middle Class with disposable Incomes
  • The UNWTO predicts that the current 20 million+ outbound Indian travellers will more than double to 50 million over the next three years.
  • 5.5% of 1.3 Billion People (Appx: 71 Million) hold passports and around 50 million are expected to be the potential target audience.
  • India has moved up two places to become the eighth largest business travel market in the world, and travel spending in the country is projected to record a compound annual growth rate of 12 per cent through 2020. (Due to Covid-19 outbreak this figure is not going to hold true anymore)
  • The sheer size of its rapidly expanding middle class practically guarantees success for India’s travel consumer story for the next 20 years.
  • Bigger than the entire US population, India’s middle-class today numbers 350 million people.
  • When traveling abroad, Indian tourists are among the world’s highest-spending globetrotters. The average Indian traveler spends $1,200 per visit as compared with Americans who spend about $700, and British who spend $500.
Outbound Tourism
Indian Food Plays a very important role when people travel.

The What you should know about India Outbound Tourism before you enter

  • Have a deep Understanding of the Indian Market.
  • Food plays an important role
  • Family Travels is important.
  • Indians love taking Photos.
  • Eating & Shopping take priority over History..
  • Love Deals / Bargaining . Whether Buying Packages or Souvenirs
    Offline trumps Online.
  • Excellent Flight Connectivity. (Stopover Flights are acceptable. Low Cost is acceptable.)
  • Don’t like a lot of free time.
  • Speedy Response time.
  • Conversion rates are low.
  • Loyalty is not the Biggest Strength

The How to sell to the Indian Outbound Tourism Market.

  • Think long term. (If you are not able to see 2 years down the line, don’t enter this market)
  • Have Patience.
  • Have products which cater to the Indian Outbound Tourism market.
  • Create Recall with Agents. via Email & Whatsapp (India has 400K+ Agents)
  • Forget Monthly Reports. Work on Real time reports. (if your current partner doesn’t offer this then you are missing on Business)
  • Participate in OTM Roadshows
  • Cover Tier 1 Cities, Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkotta every 2 Months.
  • Cover Tier 2 and Tier 3 Cities once every 3 months.
  • Be ready to Learn. (India has a Steep Learning Curve.)

The Budgets you should consider

  • Think the Indian Spending Potential First.
  • Remember that Indians Spend 4X the Chinese or Japanese Travelers or have the Spending power of British + Americans combined.
  • Align your Budgets with the Stats above.
  • Be ready to have good amount allocated for Sales Trips.
  • Have Budgets for Trade Shows.
  • Have Budget for OTM Roadshows. (Participation Cost, Flights, Hotel Stays + Entertainment).

Final Parting Thoughts on our Research

  • If you really want to succeed with the Indian market and get your share of Travelers from the projected 50 Million+ Outbound Tourism number, then it is advisable to have someone to handhold you.
  • A Rep / Sales & Marketing Company would be the best way forward but Choose carefully.
  • Think in terms of Long term growth.
  • Pedigree of the Person leading Sales should trump Retainer cost.
  • Be ready for Disappointments
  • Have your toughest Reservation People who can accept low conversion rates to handle India Market.
  • Be Ready to fight a Price war every single time.

Get your Share of Indian Outbound Tourism

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