Background KnowledgeThe Emerging Markets

A presentation from dda

Contents

• Overview –Tourism in the Emerging Markets• Indian Travel Trends, Media Selection• Russian Travel Trends, Media Selection• Chinese Travel Trends, Media Selection• Middle East Travel Trends, Media Selection• Airlift Overview

Tourism in the Emerging Markets

• Travel is extremely resilient and despite economic uncertainty – whether rising fuel prices, significant exchange rate fluctuations or increased taxation relating to air travel, there has been significant increases in outbound travel from the emerging markets

• Contributing factors attributed to this increase, include favourable exchange rates, competitive airfares, increased disposable incomes and the fact that travellers are undeterred by the external threats

• The expatriate community is also vast in this market with Financial, Pharmaceutical and Telecommunication industries offices based in the major cities

Indian Travel Trends

• World’s 4th largest economy• 17% increase in outbound travel in 2006 • Second largest travel market in Asia after China• The Indian tourism market was valued at US$4878 million in 2007• 8.3 million trips taken last year• Tend to be middle class, well educated with high disposable

incomes• Travel is considered a status symbol• Indian traveller is looking for new destinations and innovative

experiences such as eco-tourism

Indian Travel Trends cont.

• Indians receive 4 weeks annual leave entitlement• Average expenditure per person is US$1789 per leisure trip• Average duration of stay is 13 nights• Tend to travel in May, November and December• Prefer to pre-plan their itineraries prior to travel• 48% use the internet to research their destination before booking • Travel agents still play a major role with bookings

Indian Media Selection

• We have identified a selection of Consumer and Trade publications based on readership profile

• Consumer Magazines - key quality women’s magazines and lifestyle publications supported by insertions in relevant issues such as Femina & Lifestyle Asia

• Trade Publications – Travel Weekly Asia• Tour Operators – SITA and Creative Travel• Key Trade Shows – Arabian Travel Market

Russian Travel Trends

• World’s fastest growing outbound tourism market• 1,869,511 Russians travelled abroad in 2007 • World’s 3rd biggest spenders on tourism abroad• Total expenditure US$18.8 billion on Luxury Travel in 2007• 15.9 million trips taken abroad last year• Foreign travel is a status symbol – high disposable income groups

will travel – Super Rich, Upper Income & Middle Class• Most outbound travel emanates from major urban centres such as

Moscow, St. Petersburg and Ekaterinburg

Russian Travel Trends cont.

• Average expenditure is US$1,182 per trip• Average Age 32-45 years• Russians are demanding travellers expecting exceptional service,

good quality hotels & unique experiences • Prefer beach, exotic destinations as good weather, relaxation, spas

are key motivators• Just after New Year is most popular time to travel• Tend to book only days ahead of their departure date• 28% use the internet in planning and booking holidays although

personal recommendation and travel agents play a vital role

Russian Media Selection

• We have identified a selection of Consumer and Trade publications based on readership profile

• Consumer Magazines -key quality women’s magazines and lifestyle publications supported by insertions in relevant issues such as Atmosphera, Harpers Bazaar, Grand Magazine, Burzhuazniy Jurna, Robb Report, OK & Elle

• Newspaper Supplements – Kommersant Weekend • Trade publications - International Leisure World is aimed at elite

luxury travellers and their agents• Tour Operators – Tez Travel• Key Trade Shows – Gulf and Luxury Travel reception in Moscow

Chinese Travel Trends

• World’s 6th largest market in terms of spend on international travel• 34.5 million outbound trips last year• Population 1.315 million• Average expenditure US$704 per trip• Peak times for travel are around the traditional “Golden Weeks” –

Chinese New Year (Jan-Feb), Labour Day (May) and National Day (October)

• Chinese travellers are becoming more independent, sophisticated and demanding as they grow in travel experience and confidence

Chinese Travel Trends cont.

• Chinese receive annual leave entitlement of 14 days• Average age 30-59 years • 15% use the Internet as a research tool -the affluent and educated

urbanites • Travel trade play a vital role providing recommendations and

organising visas

Chinese Media Selection

• We have identified a selection of Consumer and Trade publications based on readership profile

• Consumer Magazines - key quality women’s magazines and lifestyle publications supported by insertions such as Lifestyle Asia & Madame Figaro

• Trade Publications – Travel Weekly Asia• Tour Operators – Zing Travel, CTS Horizons • Key Trade Events –ITB Asia in Singapore, Asia Luxury Travel

Market in Shanghai, ITE Hong Kong• Key Consumer Shows – China International Boat Show, Asia Dive

Expo

Middle East Travel Trends

• 22.7 million departures in 2006• High Net worth individuals market grew by 12% • By 2010, outbound tourism trips will have grown by 10% to 44.8

million• Arab tourists spend 10 times as much as their European

counterparts• Prefer sun, shopping for luxury goods, culture, good quality hotels

and spas

Middle East Travel Trends cont.

• Average age is 35 to 44 years• Average expenditure is US$1950 per person per trip • Prefer to book last minute - within a month of departure• Peak Travel is June to mid September• Long Haul Bookings will be made via a travel agent although

personal recommendation also plays a major role

Middle East Media Selection

• We have identified a selection of Consumer and Trade publications based on readership profile

• Consumer Magazines – Hia, Sayidaty & Ain Almusafer Magazine, • Newspaper Supplements – Weekend from Khaleej Times• Trade Publications –Travel Weekly Asia• Key Trade Shows- Arabian Travel Market in Dubai• Key Consumer Shows – The Bride Show Dubai

Airlift Overview

• All non direct flights to Antigua or San Juan• Average of 2 stops• Flight times- 23 to 33 hours to San Juan or 19 to 40 hours to

Antigua • India – Continental Airlines, American Airlines, Virgin Atlantic and

British Airways from Delhi or Mumbai • Russia – American Airlines, Lufthansa Airlines and Moscow • China – Air China, United Airlines, Delta Airlines and Air China from

Beijing or Shanghai • Middle East – Delta and Emirates from Dubai, Etihad Airlines,

American Airlines, British Airways, KLM/Continental Airlines from Abu Dhabi, American Airlines, Gulf Air, British Airways and Delta Airlines from Bahrain