2020 Knowing the customer in India The India 2020 Strategic Plan India is one of the world s fastest growing outbound travel markets, with the United Nations World Tourism Organisation predicting 50 million outbound travellers by 2020 1. The India 2020 Strategic Plan (the Plan) was developed to maximise India s tourism potential and to set the foundation for the future, when long haul leisure travel becomes more common. Launched in June 2012, it was developed by Tourism Australia in collaboration with industry and government stakeholders. It is a key deliverable of the Tourism 2020, Grow Demand from Asia strategy, recognising India s role in driving tourism growth in this Asian Century. The Tourism 2020 Strategy identifies that India has the potential to be worth between A$1.9 billion and A$2.3 billion to the Australian economy by the end of the decade. The Plan identifies four strategic pillars that are pivotal to being competitive and winning market share in India: Knowing the customer, A dedicated Geographic strategy, Delivering Quality Australian tourism experiences, Building Aviation and access. Since its launch, leisure spend and arrivals from India have grown by 26 per cent and 16 per cent respectively. India is one of Australia s fastest growing inbound markets and is amongst Australia s top 10 source markets. Indian arrivals grew 7.5 per cent in 2012, reaching 159,400, and were worth A$786 million in overnight spend. 2 Dubai New Delhi Ahmedabad Mumbai Hyderabad Chennai Bangalore Kolkata Kuala Lumpur Bangkok Singapore Hong Kong Key Research Findings Australia is a highly aspirational destination for Indian travellers, with visiting Australia s beaches and iconic landmarks high on their list. Associations with Australia are strongest for its natural landscapes and wildlife. Australia is perceived to have a range of experiences on offer, both adventurous and family friendly. Recommendations from family and friends who have visited or who live in Australia play a very influential role in destination choice. Indian travellers want a holiday that offers comfort, happiness, relaxation and adventure. Pre packaged holidays are preferred for long haul travel as they provide convenience, a range of options, value for money and safety. Online travel information is their primary source when dreaming or considering a holiday destination as well as in the holiday planning phase. Most Indian travellers continue to use travel agents to plan and book a holiday to Australia. Knowing the target Customer in India Integral to achievement of the India 2020 Strategic Plan is putting the target customer at the centre of all that we do at Tourism Australia. This means understanding the needs and wants of consumers and sharing these insights so that the Australian tourism industry can tap into the potential of this growing but complex market. In early 2013, Tourism Australia commissioned Ipsos Social Research Institute (Ipsos) to conduct research into the long haul travel behaviour and preferences of Tourism Australia s target customer in India to improve understanding of what drives their travel decisions. Research was undertaken in Delhi and Mumbai (where Tourism Australia has been focusing its consumer marketing efforts), as well as Kolkata, Chennai, Bangalore and Hyderabad. The research indicates that there are considerable opportunities for Australian tourism. While Delhi and Mumbai continue to present the strongest opportunities, there is also potential in Chennai, Kolkata, Hyderabad and Bangalore. 1 United National World Tourism Organisation (2012), Tourism Highlights 2012 2 Tourism Research Australia, International Visitor Survey, December 2012; Australian Bureau of Statistics, Visitor Arrivals, April 2013 Knowing the customer in India July 2013
The leisure traveller... what we learnt about Tourism Australia s target customer How Australia stacks up Perceptions of Australia are largely positive Beautiful scenery and interesting wildlife, as well as modern infrastructure Australian people are viewed as laid back and friendly Culture is appealing lots of freedom. Holidaying in Australia generally has high status among friends some thought it definitely had a wow factor. Australia is viewed as a good honeymoon destination ( romantic ); as well as good for older people (laid back, relaxing) and young travellers (has adventure, lots to see and do). Most associations with Australia tend not to go beyond icons (most involved kangaroos, Sydney and cricket). Overall, there is a low level of knowledge about specific Australian locations and attractions. Australia is viewed as a luxury destination a long way away, expensive to visit, highly developed, not polluted and with good facilities. Although Australia is considered an expensive holiday, it is also felt to be good value for money as it provides a memorable experience. Delhi and Mumbai continue to have significant potential. Outside Delhi and Mumbai, the cities with the most potential for increasing travel to Australia are Bangalore and Hyderabad. Once Indians travel to Australia, they rank it highly in terms of safety. However a little negativity remains in some Indian cities, with Australia viewed as potentially less safe compared to other long-haul destinations. This is resultant from past incidents of violence affecting Indian students. Australia s competitiveness Australia fares well compared to other destinations ranking third as the country they are considering for a holiday in the next one to two years. Singapore is top, followed by the USA. Australia shares third place with Switzerland. The desire to visit Australia is highest among those who have visited before. Countries considered for holiday/leisure travel in the next one to two years Singapore USA Australia Switzerland Malaysia Canada UK/Britain Thailand Hong Kong Italy 12% 12% 11% 15% 15% 21% 24% 33% 0 10 20 30 40 50 60 How they like to travel Prefer semi-free independent travel most will pre-book / package parts of their holiday before arriving in Australia. This includes booking flights, transfers, accommodation and some activities. Group travel/tours are popular options for less experienced travellers group travel is considered safer for a new destination so far away from home. Convenience, value and safety are the main reasons these consumers pre-book parts of their holiday. Most Indians travel to Australia after first travelling short haul within Asia and long haul to Europe or the USA. Pre-booked holiday components Flights Car rental Everything Hotel/Accomodation (all) 35% 32% 42% 51% Transport within Australia Hotel/Accomodation (some) Some meals All meals Some entertainment and activities All entertainment and activities Transfers to and from your hotel 27% 27% 25% 25% 24% 19% Guided sightseeing tours with 12% an experienced guide 0 20 40 60 80 100
How they research and book a holiday Overseas holidays are planned with immediate family, with feeling comfortable of most importance in their destination choice. Planning is done both in person with travel agents and online. These are the two key information sources used. Family and friends also provide inspiration and information. Most start planning 2-6 months before travelling, with some variations across cities. For long haul destinations, bookings are predominantly made with a trusted travel agent. For short haul and familiar destinations, bookings are increasingly made through online channels, particularly for airfares and accommodation. Even if travel agents are used, most consumers will do some independent research to verify what the agent is telling them. Travel Agents are used to arrange and obtain visas. Preference for package, group or independent travel by city Delhi 4% 32% 33% 26% 6% A pre-packaged group tour/deal, travelling with people I may or may not know Mumbai 16% 19% 41% 18% 7% A pre-packaged group tour/deal, travelling only with my friends/family Chennai 14% 74% 13% A package that is customised to my needs or the needs of my friends/family Kolkata 18% 25% 39% 18% A holiday I design and book myself (e.g. accomodation and flights and activities booked separately) Hyderabad 41% 31% 5% Do not know/not sure Bangalore 27% 52% 21% Total 14% 35% 33% 15% 4% 0 20 40 60 80 100
How to influence their travel decision-making Recommendations from family and friends who have visited or who live in Australia play the most influential role these are seen as trusted information sources. Travel specific information on the internet inspires and is used to get ideas and recommendations. Travel agents and tour operators are consulted for information on where to holiday, and are important in the planning and booking process. Online social networking sites such as Facebook are used to consult and gather information. Destinations featured on TV and in films play a role in destination choice. Marketing messaging should give reassurance that they are getting a good deal; and that once they arrive at their holiday destination people will be helpful if anything goes wrong. Influences on destination choice Recommendations from friends or family who have visited there 51% Recommendations from friends or family who have lived or do live there 34% Travel-specific information on the internet 31% Advice from a travel agent or tour operator 27% Travel-specific programs on TV (e.g. on Travel and Leisure Channel) 25% Social networking sites on the internet (e.g. Facebook) Locations/places that you have seen in movies or TV serials 20% Travel-specific articles or information in newspapers or magazines 19% Online blogs and reviews, e.g. Trip Advisor 17% Travel books or guides 10% Travel brochures 9% General news reports (in print, on television, in online media, etc) 7% Locations your children want to visit 6% Travel-specific programs on the radio 6% Media ads/promotions by airlines or travel agents 2% Media ads by govts/tourism boards/orgs marketing holiday destinations 2% Gaining social prestige and status/bragability 1% 0 10 20 30 40 50 60 What travel sellers have to say... The research included interviews with travel sellers in India. Some insights: Australia s visa application process has become easier for Indian travellers in the last 12 months. Indian consumers are high users of the internet and as a result they are well informed and will shop around for the best deals. Australia has a wide variety of products and experiences, but needs to continue to innovate, create and communicate new reasons to travel to Australia in order to remain competitive with other destinations. The average middle-class Indian traveller makes two overseas trips a year, one long haul and one short haul. The luxury travel segment has grown significantly in the last year and continues to do so, despite the declining Rupee. These travellers are often accompanied by domestic staff (cooks, personal assistants, drivers and so on) as luxury travellers do not want to compromise on the service levels they are used to at home. Because of India s rising wealth, Tourism Australia s target customer - affluent consumers in key cities - is endorsed as the right target segment in India. To reach these tech-savvy target customers, operators are increasing marketing spend in online channels. This includes not just information, but also online sales. Non-stop direct flights, whilst not essential, are preferred by Indian travellers as they allow more time in the destination and are easier to manage when travelling with children.
Who our target customers are Affluent they are amongst the wealthiest of India s population, but income does vary across cities. Men and women aged 35-54 years. Couples (including honeymooners) and families (often travelling with children). Work as: Entrepreneurs or are self employed. Highly qualified professionals. Senior executives at multinational companies. Experienced travellers have travelled for leisure in the past 12 months and have Australia as part of their holiday consideration set. Live predominantly in Delhi and Mumbai, but also in Chennai, Kolkata, Hyderabad and Bangalore. Analysis of economic and demographic forecasts as well as aviation, visa access and industry feedback was undertaken to identify cities with potential. (Travel sellers in India have endorsed this target). What they want from a holiday For a long haul trip (such as Australia), a holiday of up to 10 days that includes time to de-stress and spend time with family. The latter are key motivators for leisure travel and the main consideration when designing their holiday. Safety and security Australia is generally viewed as safe for tourists and families. Visiting beaches and famous landmarks are the most popular activities. Direct flights are preferred, however most are happy to consider a stop-over. Those from smaller cities (for example, Chennai), accept two flights are often necessary. Ease of obtaining a visa. Value for money. The availability of Indian/ Jain / pure vegetarian food is valued. For some, it is key in destination choice, while for others trying different cuisines is appealing. This research provides some really valuable learning about the Indian consumer, their purchasing intentions and desire for experiencing travel. India is already Australia s tenth largest source market and has the potential to grow strongly in coming years if we get the marketing, product, distribution and aviation access right. Andrew McEvoy, Managing Director, Tourism Australia.
The Research This is the first time Tourism Australia has undertaken such comprehensive research into the travel behaviour and preferences of consumers living outside Mumbai and Delhi. Along with these cities, analysis was also undertaken in Kolkata, Chennai, Bangalore and Hyderabad. Ipsos undertook the study, focusing on understanding the differences between these cities. Findings included some similarities and differences across cities, for example, Australia is in the top three future destinations of choice in all cities except Delhi and Mumbai. Another finding was that Delhiites are most likely to design and book their own holiday; while the comfort and safety of a package was more appealing for respondents from Chennai, Kolkata and Mumbai. The research was undertaken in two stages using both qualitative (focus groups and in-depth interviews) and quantitative (face-to-face surveys) methodologies. A target sample of 2,054 participants was used. Research objective The key objective of this research is to increase Tourism Australia s understanding of what motivates the Indian target customer to travel long haul, their intention and desire to travel, what they currently know about Australia and how Australia compares with other destinations, travel preferences, planning and booking channels, and media consumption habits. Insights from the research will inform Tourism Australia s marketing and communication strategies in India. Want to know more? For more detail, please contact the Global Insights team in Sydney Chris Rigg Senior Insights Analyst, Global Insights, Tourism Australia E: crigg@tourism.australia.com T: +61 2 9361 1354 For media queries, please contact the Corporate Affairs team in Sydney Leo Seaton Manager, Media Relations, Tourism Australia E: lseaton@tourism.australia.com T: +61 2 9361 1363 Or ask.us@tourism.australia.com www.tourism.australia.com @TourismAus Next steps Tourism Australia will share the findings and insights from this consumer research with industry and governments in Australia and India to help drive targeted marketing communications, and inform product and experience development. Insights from this research will also help to refine Tourism Australia s marketing activities in India, including improving media efficiencies and determining key projects that will drive demand for Australia. The research revealed the high status and importance of overseas travel to Indians in all six of the cities included. Australia certainly has a wow factor for this market, with its natural environment being among the strongest attractions. There is now an opportunity to further build on these positive perceptions by raising awareness of specific destinations and activities on offer to visitors to Australia. Hannah Race, Research Manager at Ipsos Social Research Institute Tourism Australia s corporate site (www.tourism.australia.com) contains information on India and the Indian consumer. Updates on Tourism Australia s activities and the India market are published in Tourism Australia s industry newsletter, Essentials. State and regional tourism organisations are also a source of market intelligence on India. About Ipsos Social Research The Ipsos Social Research Institute is part of the Ipsos group, a global organisation based in Paris with over 85 offices world-wide. It is a leader in understanding the perceptions of citizens, public service users and other stakeholders. Its aim is to help clients in governments and the public sector make better, evidence based decisions. www. Ipsos.com Knowing the customer in India July 2013