THE INDIA OPPORTUNITY AND THE INDIAN TRAVELLER A report on the Indian economy, culture, behaviour, and how you can leverage this to increase your share of business from India.

The Economy

Market Performance

India is the world’s second most populated country with 1.37 billion people, accounting for 18% of the world population. By 2035, India is expected to overtake China as the world’s most populous country and is predicted to become the third largest economy behind China and the US. The United Nations World Tourism Organisation (UNWTO) has estimated an additional 273 million people will be added to the Indian population between 2019 and 2050, and that one fifth of the world’s working age population will be Indian.

Tourism Australia’s Consumer Demand Project reveals Indian High Value Traveller (HVT) sentiment is positive compared to other countries in 2019, with 66% feeling positive overall, 53% feeling that India is progressive and 42% being optimistic about the future.

India is one of Australia’s fastest growing inbound markets for visitor arrivals. As of the year-ending September 2019, arrivals are 386,400, up 11.8 per cent. In terms of spend, Indian travellers account for $1.8 billion of total spend, up 17.4% as of year-end June 2019. On average Indian travellers spend approximately $5,000 per trip and $80 per night.

156 k176 k

194 k

230k252k

290k

346 k

386k

0

50

100

150

200

250

300

350

400

450

Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019

Num

ber

of A

rriv

als

Source: Australian Bureau of Statistics, Overseas Arrivals and Departures September 2019

Indian Visitor Arrivals (YE September 2019)

0.69B0.80B

0.73 B

1.00 B 1.05 B

1.35 B

1.50 B

1.76 B

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Tota

l tri

p Sp

end

($)

Source: Tourism Research Australia, June 2019

Total Trip Spend for Indian Travellers (YE June 2019)

Lizard Island, Queensland

Rottnest Island, Quokka, Western Australia

Tourism Australia’s Target Audience

The Indian High Value Traveller

The High Value Traveller (HVT) is Tourism Australia’s target audience which is defined by four core psychographics which assist in targeting consumers based on their attitudes, interests and behaviors.

Definition of a High Value Traveller

Trip Behaviour

In 2019, India is the third largest market for High Value Travellers (HVTs), with;

Travel long haulTravels long haul (out of region)

on a regular basis.

Key drivers of destination choice

Food and wine, aquatic and coastal, and nature and wildlife

experiences are key drivers when choosing a holiday destination.

Preference for AustraliaConsideration to visit Australia in

the short or long term.

Represent high valueAbove average trip expenditure. Higher likelihood to stay longer.

Higher likelihood to disperse further.

2.7mHigh Value Travellers

in India

45%Travel with family

37%Prefer free and

independent travel (FIT)

49%Flew first class on their

last holiday

47%Prefer to stay in 5 star

accommodation

63%Prefer to travel as part

of a tour group

Staying an average of

8 nightsVisit an average of

5 places

1.5mconsidering Australia in

the next four years

1.2mconsidering Australia in beyond four years

39%of the Indian long-haul

travel market

Planning and Booking behaviour

Booking Channels

Airfares to destination Organised ToursAccommodation at destination Individual Experiences

Information sources for inspiration

76% of Indian HVTs select a holiday

destination 1-6 months prior to departure

47% of Indian HVTs book

1-2 months prior to departure

Indian consumers are traditionally late bookers. 71% of Indian HVTs book holidays using direct sources, with the most frequently used planning sources for Indian HVTs intending to travel being; online hotel and flight booking sites (74-81%), internet videos (71%), online travel agents (64%), and traveller review sites and social media (60%).

Online

Combination

Offline

30%

35%

37%

39%

40%

42%

42%

44%

56%

56%

60%

60%

64%

71%

81%

Travel agent (offline)

Tour Operator

Accomm./experience provider site

Advertised deal/package

TV travel programs

Travel/guide books

Airline

Brochures

NTO site

Sites for specific dest'ns in a country

Traveller review sites

Social media

Online Travel agent

Videos on internet

Online hotel booking site for hotels & accommodation

% of respondents

Booked more than one month prior to trip

Booked <1 month prior trip

Booked while on trip

Booked more than one month prior to trip

Booked <1 month prior trip

Booked while on trip

Booked more than one month prior to trip

Booked <1 month prior trip

Booked while on trip

Booked more than one month prior to trip

Booked <1 month prior trip

Booked while on trip

Huskisson, New South Wales Bondi Beach, New South Wales

Insights and Recommendations

Planning and Booking behaviour

India is a highly complex, fragmented market with a combination of different players. There are not only large wholesale/retail companies who have branches and franchisees across the country, but also medium-sized regional players and numerous smaller players nationwide. The traditional 80:20 principle does not apply in India hence the cost of servicing the market is usually high. Indian trade buyers tend to like working directly with the Australian Industry and it is important to work within a system where the interests of all three parties – The Tourism Product, the Inbound Tour Operator (ITO), and Indian trade buyer are all taken care of.

There are over 30 Australian ITOs operating into the Indian Market, many of whom have physical representation in India. A three to four-city (state), 10-14 night itinerary is the most common product promoted to the Indian market.

Australia is packaged and sold much later than competing destinations such as Europe and North America. Early offers with special rates/products for the Indian market can assist in promoting Australia as early as three to five months before the intended travel dates. The peak travel time for Indian travellers to Australia is between November to December, and from April to June.

E-commerce has emerged as the fastest growing business model in the Indian market, and consumers’ daily usage spans multiple sectors (not just travel). Young audiences are extremely tech-savvy and access all the necessary information through mobile phones or desktop devices. Today, India is the second largest market for both mobile phone subscribers and internet users.

Food & Dining Habits

97% of Indian HVTs like to travel in order to get a taste of local cuisine and Australia is the leading destination for food and wine among Indian HVTs. Holiday makers aged 25-44 are more inclined to ditch their diet when they are away. Local cuisines and fast foods are a hit for Indian tourists abroad, however most prefer Indian food after a few days, suggesting that the scope of experimentation is limited.

There is the tendency for travellers to prefer hot meals, and breakfasts of an ‘American’ buffet-style are generally preferred. Non-vegetarian travellers generally avoid beef and pork. Vegetarians also prefer their meals to be prepared and served using separate utensils and kitchenware.

A significant portion of Indian tourists are vegetarians (40%). Visitors who adhere to ‘Jain’ diets are strict vegetarians (no eggs) and avoid having any kind of vegetable grown underground (eg. potatoes, onions, garlic, carrot). The use of spices are a must for enhancing flavour when preparing vegetarian cuisine. Group escorted tours sometimes also carry their own chefs who take care of the meals.

Examples of a typical Indian meal can include:

• Breakfast – Milk/Coffee/Tea with “Idly”, “Dosa”, “Parathas”, “Poha”, Toast • Lunch – An assortment of cooked vegetables, rice, wheat “Chapathis”

or “Parathas” (South Asian flatbreads) • Tea-Time Snacks – Tea/Coffee with biscuits. “Masala Chai” if

available is preferred • Dinner – Preferably a light dinner consisting of curried vegetables

and “Chapathi”

Recommendations

• Ensure that your product is easily available online for purchase either through aggregator sites, Online Travel Agents (OTAs) or your own website. Ensure your site is mobile friendly.

• ITOs/ DMCs are encouraged to have online booking engines to enable the trade to make live bookings, compare rates, and receive instant confirmations.

• Industry are advised to come prepared with, and be ready to offer rates to Indian buyers at trade events like Australian Tourism Exchange, Australia Marketplace India, Dreamtime, etc.

Recommendations

• Restaurants and hotels should consider providing extensive vegetarian options as well as Jain/Indian dishes as part of buffet selections, especially for breakfast and dinner. Having an Indian chef would be seen as a positive.

• Hotel concierges should be prepared to give suggestions for local Indian and Vegetarian restaurants and be familiar with their opening and closing times. Note that Indian visitors usually prefer to dine late i.e. post 9pm.

Spending and Shopping habits

Shopping is very important to Indian HVTs with nearly 20-30% of their budget often allocated towards shopping. Indian travellers love shopping around for offers and deals. They tend to research extensively when shopping in a holiday destination and rely heavily on word-of-mouth recommendations from friends and family, online blogs and reviews. This means that creating awareness about the retail offering in your destination is of key importance.

Indian shoppers like the concept of ‘Value for money’ and feel that bargaining for the best deal enhances the shopping experience – This is especially true at markets and roadside shops. Examples of popular souvenirs from Australia would be items related to cricket, chocolates and anything quintessentially ‘Australian’. Personalisation during shopping experiences (ie. Assistance throughout) ensures that the Indian shopper feels taken care of. Among Indian HVTs, Australia is considered the top out-of-region destination for value for money

Indian travellers prefer shopping in the evenings (after 5pm). This is an important point to be noted as a mismatch in opening hours may result in a potential loss of business and may detract from the overall holiday experience.

Service Needs of the Indian traveller

Welcoming with a “Namaste” (traditional Indian greeting with palms joined and pointing up), hotel-arranged airport pickups, and generally creating a welcoming atmosphere can go a long way to leaving a lasting impression on Indian Travellers.

Accommodation check-in and check-out times are often a major concern for Indian travellers – If the likelihood of getting an early check-in are low, it is important to stress that it is recommended to also book the previous night to guarantee access to rooms before the standard check-in time (especially when arriving on early flights).

Activities are a key driver for the Indian traveller, so be prepared to make suggestions on available activities in the area. Families in particular seek attractions to keep their children engaged.

Recommendations

• The mismatch in the expected opening hours can be addressed by providing clear (and accurate) information about the key shopping destinations to manage expectations and avoid inconvenience.

• Provide a clear summary of information on any offers and discounts available.

• Ensure that sales staff are trained on the concept (and how to deal with) bargaining.

• “Indian Bazaars” – Local haunts of Non-Resident Indians in Australia can provide the right environment to target the Indian traveller.

Recommendations

• Indian travellers have a strong affinity for their traditional festivals and seasonal events, using these to bond with others and often as a key travel-time for families. Events and services offered around these festivals (eg. Diwali) can help endear your product to the Indian consumer and increase word-of-mouth referral. 95% of Indian HVTs love to tell family and friends about their holiday experiences.

• As timings can be more fluid to the Indian traveller, it is often recommended to make meeting times earlier than they ‘need’ to be – eg. Ask groups to meet in the lobby at 7.30am when departure is actually scheduled for 8am.

• Hotels should ensure that they are conscious of the needs of the Indian Traveller. Aspects such as Indian food, Indian reception staff, Indian TV channels and other tailored services can go a long way in making your product stand out.

• Service staff should be given specific training for handling Indian visitors, in particular the general traveller styles and what sorts of behaviour to expect.

• Indian visitors love to be pampered and to feel important, especially at their chosen accommodation. This expectation of service and being waited upon increases if they are residing in luxury hotels.

Uluru, Field of Light, Northern Territory Rottnest Island, Western Australia

Pike and Joyce, South Australia

Shopping, Melbourne, Victoria

Working with Tourism Australia Checklist

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For more detail on the Indian market, please contact Tourism Australia’s team in India

Samar Chokshi Business Development Manager

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For other Tourism Australia queries, please contact the Industry Relations team:

Dominic MehlingIndustry Relations Manager - ACT, NSW, NT & QLD

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Perth City Beach, Western Australia