Connecting Engaging Indian Outbound Leisure Travellers · 2019-11-22 · especially favorable for...
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Many destinations in Asia (Macau, Hong Kong, Thailand, and South Korea) receive a high number of Chinese tourists annually. China is considered a lucrative outbound tourist market. Although Indian market size is not as huge as China, there has been an outstanding growth in the number of outbound tourists from India in recent times. In 2006, there were 8.3 million departures from India, which rose dramatically to 18.3 million in 2014. That’s 245% growth!. What’s more, according to UNWTO (2017), the Indian travel market was predicted to grow to around 50 million tourists by 2020, with spending up to 48 billion U.S. dollars. MarkPlus Center for Tourism and Hospitality (MPCTH) sought to provide a better understanding of Indian outbound leisure tourists coming to Bali and Indonesia, through its signature seminar titled, “Connecting and Engaging with Indian Outbound Leisure Travelers” on 27 July 2018 at Harris Sunset Road, Bali. In this second edition of newsletter, we bring you insights about the Indian tourist market, based on market profile, performance, behaviors, and perception including the special segment namely Millennial, based on MPCTH Research. We conducted an online survey to 100 Indian respondents who have visited Bali and other popular Southeast Asian destinations. The newsletter also features some valuable insights from the sessions of speakers who participated in the seminar. Authors: Mochamad Nalendra, Priyanka Shekhawat & Ida Ayu Saras Valendia The Emerging Market for Indonesia and Bali Tourism What: Indian Millennial Travellers Behaviours Figure 1 Number of Indian Nationals Departing from India In 2017, 485,314 Indian travellers visited In- donesia, with 28.80% growth compared with 2016. India was also the 6th largest market in terms of the number of international tourists (485,314) visiting Indonesia (see Figure 2) after Japan (538,334), Australia (1,188,449), and Malaysia (1,238,376). The Indonesian Travellers Leisure Outbound Indian Connecting with Engaging & “The millennial generation from India needs to be grabbed, if they come, surely their family will join too. That is why it is necessary to attract specific market segments, such as VFR." -Hermawan Kartajaya- 2 ND NEWSLETTER INDIAN MARKET EDITION 0 2 4 6 8 10 12 14 16 18 20 22 2006 8.3 9.8 10.9 11.1 13.0 14.0 14.9 16.6 18.3 20.4 2007 2008 2009 2010 2011 2012 2013 2014 2015 Departures (million) 245% Rise in Indians Going Abroad Indonesia Tourism Top 6 Market Source 2.000.000 2017 (Jan - Des) 1.000.000 0 Figure 2 Source: Kemenpar Data (2017) Figure 3 Source: MarkPlus Analysis based Kemenpar Data (2017) China Singapore Malaysia Australia Japan India tourism authority aims to attract 700,000 Indian tourists in 2018. However, a closer look reveals that India turns out to be the market with highest performance in Bali, with 48.26% growth in 2017. In recent times, Bali receives plenty of young- er and more tech-savvy tourists, the so-called Gen-Y or Millennial Travelers, which is consistent with this generation’s growing disposable incomes and yearning for greater work-life balance, which puts travel on the top of their to-do list. These millennial travel- ers are born between early 1980s and mid-1990s. The Gen-Y today casts a strong influence on all aspects of lives, including in tourism industry and will create a tremendous opportunity for travel industry. Approximately 60% of the world’s millennials reside in Asia, of which about a third originate from either China or India. Interestingly, 50% of Indian population is under the age of 25 and 65%, under 35 (Bloomberg, 2017). Our research looks at the comparison between Gen Y and Gen X in terms of their interests while vacationing, their considera- tions when choosing accommodation, restau- rant preferences, etc. When choosing a travel destination, Indian Gen X (95.65%) & Gen Y (93.02%) travelers have interests in nature and learning about cultures of a destination, as well as discover- ing the true character of a destination and fortunately, Bali is famous for its culture and nature and that naturally makes Indian Travel- ers attracted to Bali, being the third-largest for- eign visitors market in Bali in 2018. 18 16 14 12 10 8 6 4 2 0 Length of Stay (Days) $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 Spending per Trip (US$) Quantity vs Spending per Trip vs Length of Stay 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100-104 0 1 2 3 4 5 6 7 7 6 5 4 3 2 1 0 Indian “Gen Y & Gen X” Travelers’ Interests When On a Vacation India Population by Age Group Figure 4 Source: Live Population (2018) Figure 5 Source: MPCTH (2018) Sightseeing & Exploring the City 95.65% 93.02% Learning About Cultures 73.91% 67.44% Foraging Local Foods 56.52% 46.51% Shopping 52.17% 51.16% Recreation/ Nightlife 47.83% 46.51% Gen X Gen Y Male Female Indian “Gen Y” Travelers perceive Bali as a preferred honeymoon destination (41.18%), while Gen x mostly come to bali to visit their family, friends, and relatives (60%) which makes Gen X travelers more of the VFR tourist segment. Bali’s serene locales and aplenty beach-side resorts offer perfect tropical couple getaway attractions and hence Indian Gen X traveler segment could be tapped using spe- cialized honeymoon packages. Considering the limited choice of direct flights from India to Bali, it is worth notiing that more than half of Indian tourists chose direct flights to fly to Bali – clearly indicating a vast un- tapped potential. Left without much choice, a large section of Indian travelers also come to Bali with layover flights. Most Indian tourists prefer to hire a car with driver for local sight-seeing which, more often than not, helps alleviate language issues as travelers feel secure in the company of a familiar local who can take them around. Indian “Gen Y & Gen X” Travelers’ Perception About Bali Indian “Gen Y & Gen X” Travelers’ Preferences in Choosing Transport Figure 8 Source: MPCTH (2018) Honeymoon 41.18% Family Visit 60.00% 29.41% Leisure Trip (Group) 20.00% 14.71% Leisure Trip (Independent) 20.00% 11.76% Destination Wedding 2.94% Indian “Gen Y” Travelers consider accessibility (72.09%) and price (67.44%) as major factors, when choosing accommodation because a large section of them still tend to be price-sen- sitive and wish to avoid inconvenience by choosing easily accessible accommodation. Gen X, on the other hand, consider ratings (86.96%) and loyalty programs (82.61%) when selecting an accommodation of preference. Indian “Gen Y & Gen X” Travelers’ Considerations When Choosing Accommodation Figure 6 Source: MPCTH (2018) Accessibility 60,87% 72.09% Price 56.52% 67.44% Loyalty Program 82.61% 67.44% Testimonioals/ Review 69.57% 62.79% Amenities 69.57% 62.79% Ratings 86.96% 62.79% Location 56.52% 60.47% Gen X Gen Y Gen X Gen Y Indian “Gen Y” Travelers consider service (86.96%) as well as location (79.07%), as their main considerations when choosing a restau- rant and location, while Gen X’s main consider- ation tends to be location (91.30%) when choosing a restaurant, followed by service (86.96%) and ambience (86.96%). Price is con- sidered more as a factor by Gen X, as compared with Gen Y. Indian “Gen Y & Gen X” Travelers’ Preferences When Choosing Restaurants Figure 7 Source: MPCTH (2018) Service 86.96% 86.05% Location 91.30% 79.07% Price 73.91% 62.79% Ambience 86.96% 55.81% Chef 52.17% 46.51% Cuisine 52.17% 37.21% Hygiene 8.70% 11.63% RESTAURANT Hired a Car for Self-Driving 8.33% Hired a Bike 20.00% 25.00% Taxis 66.67% 33.33% Hired a Car with a Driver 80.00% 72.22% Gen X Gen Y Gen X Gen Y Direct Flight Layofer Flight 52.78% 47.22% Indian Gen Y travelers perceive Bali as an Enjoyable, Beautiful, Unique Destination, especially favorable for honeymooning, while Singapore is generally perceived as a very safe destination . Thailand is known as the best shopping destination by virtue of being the largest wholesale and retail shopping destination. Malaysia, on the other hand, is generally visited to meet friends and relatives. Although their perception about Bali fits with Indian travelers’ main interests when choosing a destination, Bali needs to improve its perception in the minds of travelers on safety and security as it is an important factor that impacts Indian Travelers’ choice of destination. Indian “Gen Y” Travelers Perceptions of Bali, Singapore, Malaysia & Thailand Bali Singapore Malaysia Thailand Family Destination Honeymoon Destination Ease of Making Payments Backpacker Friendly Shopping Destination Nature Destination Adequate Infrastructure Enjoyable Destination Friendly Local People English Speaking Tourist Friendly Beautiful Beaches Affordable Price Beautiful and Unique Destination Safe to Visit Ease of Public Transporation When in Bali, Indian Gen Y Travelers’ unpleas- ant experiences relate to the struggle to find the food of their choice/ taste. This is attribut- able to several dietary limitations of some In- dians, which may abstain from eating non-vegetarian food or food without on- ion/garlic. In Singapore, Indian leisure travel- ers’ unpleasant experience is due to the unpre- dictable weather and in Thailand, some tourists expressed dissatisfaction with hygiene. In Ma- laysia, scamming/mugging incidents accounted for the most uncomfortable situations for Indian travelers. Most Uncomfortable Experiences at a Destination, Based on Indian “Gen Y” Travelers Perception Bali Singapore Malaysia Thailand Bad Public Hospitality Bad Weather Scamming and Mugging Lack of Indian Restaurant Lack of English Usage Expensive Budget Lack of Public Transport Under-Delivered Promotional Promises Dirty Places Lack of Tourist Information Safety Issues Unsuitable Local Culture Lack of Food Places Figure 9 Source: MPCTH (2018) Figure 10 Source: MPCTH (2018) Figure 11 Source: MPCTH (2018) Indian Gen Y Travelers love to spend their va- cation budget on visiting local attractions as well as on transportation rentals when in Bali , for sightseeing and learning about new cul- tures. In Singapore and Malaysia, the money is mostly spent on visiting local attractions, transportation and enjoying nightlife. In Thai- land, Indian travelers dedicate a large chunk of their vacation budget to shopping since Thai- land is known as the largest wholesale and retail shopping destination. Where Indian “Gen Y” Travelers Spend Their Money? Bali Singapore Malaysia Thailand Local Attraction Figure 12 Source: MPCTH (2018) Special Goods Guided Tour Souvenirs Food & Beverages Shopping Ground Transportation Local Nightlife How to Deliver Quality Experiences for Indian Travelers Bargains Respect Negotiations Upgrades Food - Offer Indian dishes on menus or buffets - Use spices for more aromatic food - Include vegetarian options and wherever possible, list ingredients in the dish - Use separate kitchenware/utensils for vegetarian dishes Service - Use the “Namaste” greeting - Recognize India’s religious festivals and traditions with thematic products - Provide information on your products in-language - Ensure service staff is familiar with the needs of Indian travelers Shopping - Provide clear and visible information on the location - Create souvenirs relevant to Indian travelers, for eg. home décor - Provide information on shopping locations where bargaining is acceptable Booking - Offer discounts or value-add options on products - Offer special rates to Indian buyers at key trade events - Don’t miss out special packages for honeymooning/VFR segments
Transcript of Connecting Engaging Indian Outbound Leisure Travellers · 2019-11-22 · especially favorable for...
Many destinations in Asia (Macau, Hong Kong, Thailand, and South Korea) receive a high number of Chinese tourists annually. China is considered a lucrative outbound tourist market. Although Indian market size is not as huge as China, there has been an outstanding growth in the number of outbound tourists from India in recent times. In 2006, there were 8.3 million departures from India, which rose dramatically to 18.3 million in 2014. That’s 245% growth!. What’s more, according to UNWTO (2017), the Indian travel market was predicted to grow to around 50 million tourists by 2020, with spending up to 48 billion U.S. dollars.
MarkPlus Center for Tourism and Hospitality (MPCTH) sought to provide a better understanding of Indian outbound leisure tourists coming to Bali and Indonesia, through its signature seminar titled, “Connecting and Engaging with Indian Outbound Leisure Travelers” on 27 July 2018 at Harris Sunset Road, Bali.
In this second edition of newsletter, we bring you insights about the Indian tourist market, based on market profile, performance, behaviors, and perception including the special segment namely Millennial, based on MPCTH Research. We conducted an online survey to 100 Indian respondents who have visited Bali and other popular Southeast Asian destinations. The newsletter also features some valuable insights from the sessions of speakers who participated in the seminar.
Authors: Mochamad Nalendra, Priyanka Shekhawat& Ida Ayu Saras Valendia
The Emerging Market for Indonesia andBali Tourism
What: Indian Millennial Travellers Behaviours
Figure 1
Number of Indian NationalsDeparting from India
In 2017, 485,314 Indian travellers visited In-donesia, with 28.80% growth compared with 2016. India was also the 6th largest market in terms of the number of international tourists (485,314) visiting Indonesia (see Figure 2) after Japan (538,334), Australia (1,188,449), and Malaysia (1,238,376). The Indonesian
TravellersLeisureOutboundIndian
Connectingwith
Engaging&
“The millennial generation from India needs to be grabbed, if they come, surely their family will join too. That is why it is necessary to attract specific market
segments, such as VFR."-Hermawan Kartajaya-
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Figure 2
Source: Kemenpar Data (2017)
Figure 3
Source: MarkPlus Analysis based Kemenpar Data (2017)
ChinaSingaporeMalaysiaAustraliaJapanIndia
tourism authority aims to attract 700,000 Indian tourists in 2018.
However, a closer look reveals that India turns out to be the market with highest performance in Bali, with 48.26% growth in 2017.
In recent times, Bali receives plenty of young-er and more tech-savvy tourists, the so-called Gen-Y or Millennial Travelers, which is consistent with this generation’s growing disposable incomes and yearning for greater work-life balance, which puts travel on the top of their to-do list. These millennial travel-ers are born between early 1980s and mid-1990s. The Gen-Y today casts a strong influence on all aspects of lives, including in tourism industry and will create a tremendous opportunity for travel industry. Approximately
60% of the world’s millennials reside in Asia, of which about a third originate from either China or India.
Interestingly, 50% of Indian population is under the age of 25 and 65%, under 35 (Bloomberg, 2017). Our research looks at the comparison between Gen Y and Gen X in terms of their interests while vacationing, their considera-tions when choosing accommodation, restau-rant preferences, etc.
When choosing a travel destination, Indian Gen X (95.65%) & Gen Y (93.02%) travelers have interests in nature and learning about cultures of a destination, as well as discover-ing the true character of a destination and
fortunately, Bali is famous for its culture and nature and that naturally makes Indian Travel-ers attracted to Bali, being the third-largest for-eign visitors market in Bali in 2018.
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Indian “Gen Y & Gen X” Travelers’Interests When On a Vacation
India Population by Age Group
Figure 4
Source: Live Population (2018)
Figure 5
Source: MPCTH (2018)
Sightseeing &Exploring the City
95.65%93.02%
Learning AboutCultures
73.91%67.44%
Foraging LocalFoods
56.52%46.51%
Shopping 52.17%51.16%
Recreation/Nightlife
47.83%46.51%
Gen X Gen Y
Male Female
Indian “Gen Y” Travelers perceive Bali as a preferred honeymoon destination (41.18%), while Gen x mostly come to bali to visit their family, friends, and relatives (60%) which makes Gen X travelers more of the VFR tourist
segment. Bali’s serene locales and aplenty beach-side resorts offer perfect tropical couple getaway attractions and hence Indian Gen X traveler segment could be tapped using spe-cialized honeymoon packages.
Considering the limited choice of direct flights from India to Bali, it is worth notiing that more than half of Indian tourists chose direct flights to fly to Bali – clearly indicating a vast un-tapped potential. Left without much choice, a large section of Indian travelers also come to
Bali with layover flights. Most Indian tourists prefer to hire a car with driver for local sight-seeing which, more often than not, helps alleviate language issues as travelers feel secure in the company of a familiar local who can take them around.
Indian “Gen Y & Gen X” Travelers’Perception About Bali
Indian “Gen Y & Gen X” Travelers’ Preferencesin Choosing Transport
Figure 8
Source: MPCTH (2018)
Honeymoon 41.18%
Family Visit60.00%29.41%
Leisure Trip(Group)
20.00%14.71%
Leisure Trip(Independent)
20.00%11.76%
DestinationWedding 2.94%
Indian “Gen Y” Travelers consider accessibility (72.09%) and price (67.44%) as major factors, when choosing accommodation because a large section of them still tend to be price-sen-sitive and wish to avoid inconvenience by
choosing easily accessible accommodation. Gen X, on the other hand, consider ratings (86.96%) and loyalty programs (82.61%) when selecting an accommodation of preference.
Indian “Gen Y & Gen X” Travelers’Considerations When Choosing
Accommodation
Figure 6
Source: MPCTH (2018)
Accessibility60,87%72.09%
Price56.52%67.44%
LoyaltyProgram
82.61%67.44%
Testimonioals/Review
69.57%62.79%
Amenities 69.57%62.79%
Ratings 86.96%62.79%
Location 56.52%60.47%
Gen X
Gen Y
Gen X
Gen Y
Indian “Gen Y” Travelers consider service (86.96%) as well as location (79.07%), as their main considerations when choosing a restau-rant and location, while Gen X’s main consider-ation tends to be location (91.30%) when
choosing a restaurant, followed by service (86.96%) and ambience (86.96%). Price is con-sidered more as a factor by Gen X, as compared with Gen Y.
Indian “Gen Y & Gen X” Travelers’Preferences When Choosing
Restaurants
Figure 7
Source: MPCTH (2018)
Service86.96%86.05%
Location91.30%79.07%
Price 73.91%62.79%
Ambience 86.96%55.81%
Chef 52.17%46.51%
Cuisine 52.17%37.21%
Hygiene 8.70%11.63%
RESTAURANT
Hired a Car forSelf-Driving
8.33%
Hired a Bike20.00%25.00%
Taxis 66.67%33.33%
Hired a Carwith a Driver
80.00%72.22%
Gen X Gen Y
Gen X Gen Y Direct Flight Layofer Flight
52.78%
47.22%
Indian Gen Y travelers perceive Bali as an Enjoyable, Beautiful, Unique Destination, especially favorable for honeymooning, while Singapore is generally perceived as a very safe destination . Thailand is known as the best shopping destination by virtue of being the largest wholesale and retail shopping destination. Malaysia, on the other hand, is
generally visited to meet friends and relatives. Although their perception about Bali fits with Indian travelers’ main interests when choosing a destination, Bali needs to improve its perception in the minds of travelers on safety and security as it is an important factor that impacts Indian Travelers’ choice of destination.
Indian “Gen Y” Travelers Perceptions of Bali,Singapore, Malaysia & Thailand
Bali Singapore Malaysia Thailand
FamilyDestination Honeymoon
DestinationEase of Making
Payments
BackpackerFriendly
ShoppingDestination
NatureDestination
AdequateInfrastructure
EnjoyableDestinationFriendly
Local People
English SpeakingTourist FriendlyBeautiful
BeachesAffordable
PriceBeautiful and
Unique Destination
Safe toVisitEase of Public
Transporation
When in Bali, Indian Gen Y Travelers’ unpleas-ant experiences relate to the struggle to find the food of their choice/ taste. This is attribut-able to several dietary limitations of some In-dians, which may abstain from eating non-vegetarian food or food without on-ion/garlic. In Singapore, Indian leisure travel-
ers’ unpleasant experience is due to the unpre-dictable weather and in Thailand, some tourists expressed dissatisfaction with hygiene. In Ma-laysia, scamming/mugging incidents accounted for the most uncomfortable situations for Indian travelers.
Most Uncomfortable Experiences at a Destination,Based on Indian “Gen Y” Travelers Perception
Bali Singapore Malaysia Thailand
Bad PublicHospitality Bad
WeatherScamming
and Mugging
Lack ofIndian
Restaurant
Lack ofEnglishUsage
ExpensiveBudget
Lack ofPublic
Transport
Under-DeliveredPromotional
PromisesDirty
Places
Lack of TouristInformation
SafetyIssues
UnsuitableLocal Culture
Lack ofFood Places
Figure 9
Source: MPCTH (2018)
Figure 10
Source: MPCTH (2018)
Figure 11
Source: MPCTH (2018)
Indian Gen Y Travelers love to spend their va-cation budget on visiting local attractions as well as on transportation rentals when in Bali , for sightseeing and learning about new cul-tures. In Singapore and Malaysia, the money is mostly spent on visiting local attractions,
transportation and enjoying nightlife. In Thai-land, Indian travelers dedicate a large chunk of their vacation budget to shopping since Thai-land is known as the largest wholesale and retail shopping destination.
Where Indian “Gen Y” Travelers SpendTheir Money?
Bali Singapore Malaysia Thailand
LocalAttraction
Figure 12
Source: MPCTH (2018)
SpecialGoods
GuidedTour
SouvenirsFood &Beverages
Shopping
GroundTransportation
LocalNightlife
How to Deliver Quality Experiences for Indian Travelers
Bargains
Respect
Negotiations
Upgrades
Food- Offer Indian dishes on menus or buffets- Use spices for more aromatic food- Include vegetarian options and wherever possible, list ingredients in the dish- Use separate kitchenware/utensils for vegetarian dishes
Service- Use the “Namaste” greeting- Recognize India’s religious festivals and traditions with thematic products- Provide information on your products in-language- Ensure service staff is familiar with the needs of Indian travelers
Shopping- Provide clear and visible information on the location- Create souvenirs relevant to Indian travelers, for eg. home décor- Provide information on shopping locations where bargaining is acceptable
Booking- Offer discounts or value-add options on products- Offer special rates to Indian buyers at key trade events- Don’t miss out special packages for honeymooning/VFR segments
