Indian Outbound Travel
Salient Features & Potential
Report by European Travel Commission (ETC) and the World Tourism
Organization (UNWTO)
The Indian Outbound Travel Market with Special Insight into the Image of
Europe as a Destination
Description: India is one of the fastest-growing outbound travel markets in the
world. International tourism departures from India have grown from 3.7 million in
1997 to 9.8 million in 2007 and international tourism expenditures have increased
from US$ 1.3 billion in 1997 to US$ 8.2 billion in 2008 and over 12 million in 2010
and expected to reach over 20 million by 2015.
With more than 1.3 billion inhabitants and GDP increasing by more than 8% every
year, the country offers enormous potential for future growth in outbound travel.
The Indian Outbound Travel Market with Special Insight into the Image of Europe as
a Destination, covers issues such as travellers’ behaviour and patterns – destination
choice, purpose of travel, spending, holiday activities, market segmentation, like air
transport, the profile and structure of the travel trade, as well as the media or
internet use trends. The report also sets out comprehensive recommendations on
how to best promote a destination in the Indian market.
Summary






Indian outbound travel market has grown from 3.7 million in 1997 to 9.8
million international departures in 2007 and over 10 million for 2008; the
pace of growth has accelerated since 2004 at an average annual growth rate
of over 16%. International tourism expenditure by Indians has grown from
US$ 1.3 billion in 1997 to US$ 8.2 billion in 2007 to US 14 Billion in 2010.
The UNWTO predicts that India will account for 50 million outbound tourists
by 2020; the ‘Kuoni Travel Report India 2007’ predicts that total outbound
spending will cross the US$ 28 billion mark in 2020.
With over 28 million passport holders in the country who are potential
travellers, the source market for outbound travel is wide and complex
because of its size and variety. According to the primary research among the
travel trade, the main source regions are west and north (including central
India) together accounting for about 65% of all outbound travel, followed by
south (25%) and east (10%).
According to Pacific Asia Travel Association (PATA), 40% of all outbound trips
by Indians are for business purposes, while leisure, visiting friends and
relatives (VFR) and other reasons each account for 20% of outbound trips
from India.
Europe commands an estimated market share of about 20% of all Indian
outbound departures. The Indian travel trade estimates that the market for
Europe is growing at a steady pace of 5-7% per annum and that the pace of
growth for Europe can be accelerated with greater focus by European tourism
boards on the Indian market.
40% of travel to Europe is estimated to be for holiday purposes. Five
European destinations account for a majority of the share of travel from India
to Europe – United Kingdom, France, Italy, Germany and Switzerland.






According to the travel trade, international leisure travellers belong to the 2565 years age group, a larger proportion being males (65%) than females
(35%). They are well educated and belong to the upper socio-economic strata
of society. Majority are married (75%) and have children living in the
household. Two-thirds of leisure travellers tend to holiday abroad with family.
In the short-term, a large proportion of potential visitors to Europe are likely
to be first-time visitors, although the majority will have travelled abroad at
least once. Families and couples are likely to be the key customer segments
travelling to Europe on holiday. Some travel from groups of friends and
affinity group travellers can also be anticipated.
The key travel motivation of potential first-time visitors to Europe is a
culture/sightseeing holiday. The key travel motivations among repeat visitors
are culture/sightseeing holiday, touring/driving holiday, snow/ski holiday and
holiday in the mountains. Majority of the potential visitors are likely to
undertake a multi-country vacation in Europe.
In terms of travel destination selection, the top five factors that influence
destination selection for Indians are safety and security; variety of things to
see and do; overall image of holiday destination; good tourist facilities; and
infrastructure; and the ease of obtaining visas. The travel trade confirms that
travellers will often change their mind about a travel destination if obtaining
visas is a complex or time-consuming process.
Euromonitor predicts: The US is predicted to be the most preferred
destination for Indian travelers in days to come and is set to receive 10.2% of
outbound tourists from India by 2011.
With departures by air accounting for more than 98% of all departures from
India, the air travel market is "clearly on a high".
Report by Neilsen along with PATA (Pacific Asia Travel Association)
On India outbound travel.












Indian outbound travellers (12%) are increasingly booking their travel online.
Hot destinations in Asia – Singapore (24% of Indians), Dubai, Australia, and
Malaysia (17% of Indians, respectively)
Overall, Asian destinations account for 72% of international leisure trips and
63% of business trips originating in India,
Travel to Europe accounts for 18% of Indian travelers’ business trips and
14% of pleasure trips.
Of those Indians who travel internationally, 64% named sightseeing as the
main purpose of their trip, while 47% reported they travel abroad to explore
new countries. Another 25% of those surveyed said they travel abroad to
relieve stress, to have a good time, or to visit family and friends.
As per 2007 figures provided by Singapore Tourism Board, Indians spent an
average of USD 1,200 a visit; while Americans spent USD 700 and British
USD 500.
Travellers from the small two-tier Indian cities are bigger spenders than those
from first-tier cities.
From 1996-2006, the Indian outbound market expanded by an
unprecedented 10% annually, well above the world average. Latest figures
puts India as a key global outbound travel market.
There are "56 dollar-billionaires in India, and 126,000 dollar-millionaires!
The size of the Indian middle class currently stands at somewhere over 350
million: roughly the size of the population of the US and growing at an
estimated 40-50 million a year.
It is estimated that more than half of these people are less than 35 years old,
for whom travel is an exciting proposition. With the GDP in the country
growing by 8% per annum, disposable incomes have increased rapidly. Indian
outbound travellers, once considered low spenders, are now recognized as
high-yield visitors.
An average Indian traveller spent US$1,700 dollar per trip, which amounts to
a US$15 billion Indian outbound market. Most of the money came from their
own pockets, and not from bank-loans.
Increased Internet access throughout India has facilitated strong growth in
online bookings. While 60 million Indians had Internet access in 2007, that
number is expected to more than double by 2010. There are also more than
70 million cell phone users in the country, with an additional 5 million being
added every month.
WTTC: World Travel and Tourism Council



WTTC says India will be the Third fastest generator of Travel and Tourism
Demand from 2010 - 2019 with an annualized growth of 8.2%
India shall depict the fifth fastest growth in Business Travel from 2010 - 2019
at the annualized rate of 7.6%, only behind China (among large nations)
India is only next to Sao Tome & Principe to grow their travel and tourism
exports from 2010 - 2019 at the annualized growth rate of 13.8%
Spendings:
India ranks as Australia’s largest source market in terms of duration of stay and fifth
in regards to spend per person. Australia received a total of 120,500 visitors from
India in 2008/09, an increase of 12 per cent compared to the previous year.(Source:
Tourism Australia)
By
ROHIT HANGAL
Director
Sphere Travelmedia & Exhibitions Pvt. Ltd.,
# 473, 2nd floor, 2nd Cross, 9th Main
HAL 2nd Stage, Indira Nagar
Bangalore - 560 008. India
Ph: 91-80-4115 2215, 4115 2922
Fax: 91-80-2529 0708
Mobile: 91-98440-92150
Email: rohit@iitmindia.com
www.iitmindia.com