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1 United National World Tourism Organisation (2012), Tourism Highlights 2012

2 Tourism Research Australia, International Visitor Survey, December 2012; Australian B ureau of Statistics,

Visitor Arrivals, April 2013

Knowing thecustomer in India2020

The India 2020 Strategic Plan

India is one of the worlds fastest growing outbound travel markets, with the UnitedNations World Tourism Organisation predicting 50 million outbound travellers by20201. The India 2020 Strategic Plan(the Plan) was developed to maximise Indiastourism potential and to set the foundation for the future, when long haul leisuretravel becomes more common. Launched in June 2012, it was developed by TourismAustralia in collaboration with industry and government stakeholders. It is a keydeliverable of the Tourism 2020, Grow Demand from Asia strategy, recognisingIndias role in driving tourism growth in this Asian Century. The Tourism 2020Strategy 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 andwinning 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 and16 per cent respectively. India is one of Australias fastest growing inbound marketsand is amongst Australias top 10 source markets. Indian arrivals grew 7.5 per cent in2012, reaching 159,400, and were worth A$786 million in overnight spend.2

Knowing the target Customer in India

Integral to achievement of the India 2020 Strategic Plan is putting the target customerat the centre of all that we do at Tourism Australia. This means understanding theneeds and wants of consumers and sharing these insights so that the Australiantourism 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 TourismAustralias target customer in India to improve understanding of what drives theirtravel decisions. Research was undertaken in Delhi and Mumbai (where TourismAustralia has been focusing its consumer marketing efforts), as well as Kolkata,Chennai, Bangalore and Hyderabad.

The research indicates that there are considerable opportunities for Australiantourism. While Delhi and Mumbai continue to present the strongest opportunities,there is also potential in Chennai, Kolkata, Hyderabad and Bangalore.

Key Research Findings

Australia is a highly aspirational

destination for Indian travellers,

with visiting Australias beaches and

iconic landmarks high on their list.

Associations with Australia are

strongest for its natural landscapes

and wildlife. Australia is perceived tohave 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 provideconvenience, 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 customer in India July 2013

Mumbai

Singapore

Hong Kong

New Delhi

Bangkok

Kolkata

Dubai

KualaLumpur

Hyderabad

BangaloreChennai

Ahmedabad

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How Australia stacks up

Perceptions of Australia arelargely positive

Beautiful scenery andinteresting wildlife, as well asmodern infrastructure

Australian people are viewed aslaid back and friendly

Culture is appealing lotsof freedom.

Holidaying in Australia generally hashigh status among friends somethought it definitely had a wow factor.

Australia is viewed as a goodhoneymoon destination (romantic);

as well as good for older people (laidback, relaxing) and young travellers (hasadventure, lots to see and do).

Most associations with Australia tendnot to go beyond icons (most involvedkangaroos, Sydney and cricket). Overall,there is a low level of knowledge aboutspecific Australian locationsand attractions.

Australia is viewed as a luxurydestination a long way away,expensive to visit, highly developed,not polluted and with good facilities.Although Australia is considered anexpensive holiday, it is also felt to begood value for money as it provides amemorable experience.

Delhi and Mumbai continue to havesignificant potential. Outside Delhiand Mumbai, the cities with themost potential for increasing travel toAustralia are Bangalore and Hyderabad.

Once Indians travel to Australia,they rank it highly in terms ofsafety. However a little negativity

remains in some Indian cities, withAustralia viewed as potentially lesssafe compared to other long-hauldestinations. This is resultant frompast incidents of violence affectingIndian students.

The leisure traveller... what we learnt about Tourism Australias target customer

0 10 20 30 40 50 60

Italy

Hong Kong

Thailand

UK/Britain

Canada

Malaysia

Switzerland

Australia

USA

Singapore

11%

12%

15%

15%

21%

23%

23%

24%

33%

12%

Australias competitiveness

Australia fares well compared to other destinations ranking third as the countrythey 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

0 20 40 60 80 100

Guided sightseeing tours withan experienced guide

Transfers to and from your hotel

All entertainment and activities

Some entertainment and activities

All meals

Some meals

Hotel/Accomodation (some)

Transport within Australia

Hotel/Accomodation (all)

Everything

Car rental

Flights

12%

19%

24%

25%

25%

27%

27%

32%

35%

23%

42%

51%

How they like to travel

Prefer semi-free independent travel most will pre-book / package parts oftheir 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 travelis considered safer for a new destination so far away from home.

Convenience, value and safety are the main reasons these consumers pre-book partsof their holiday.

Most Indians travel to Australia after first travelling short haul within Asia and longhaul to Europe or the USA.

Pre-booked holiday components

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How they research and book a holiday

Overseas holidays are planned with immediate family, with feeling comfortable ofmost importance in their destination choice.

Planning is done both in person with travel agents and online. These are the two keyinformation 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 travelagent. For short haul and familiar destinations, bookings are increasingly madethrough online channels, particularly for airfares and accommodation. Even if travelagents are used, most consumers will do some independent research to verify what theagent is telling them.

Travel Agents are used to arrange and obtain visas.

Preference for package, group or independent travel by city

0 20 40 60 80 100

Total

Bangalore

Hyderabad

Kolkata

Chennai

Mumbai

Delhi 4% 32%

16% 19%

14% 74%

18% 25%

23% 41%

27% 52%

14% 35%

33%

41%

13%

39%

31%

21%

33%

26%

18%

18%

5%

15% 4%

7%

6% A pre-packaged group tour/deal, travellingwith people I may or may not know

A pre-packaged group tour/deal, travellingonly with my friends/family

A package that is customised to my needsor the needs of my friends/family

A holiday I design and book myself (e.g.

accomodation and flights and activities

booked separately)

Do not know/Not sure

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How to influence their travel decision-making

Recommendations from family and friendswho have visited or who live in Australiaplay the most influential role these are

seen as trusted information sources.

Travel specific information on the internetinspires and is used to get ideas andrecommendations.

Travel agents and tour operators areconsulted for information on where toholiday, and are important in the planning

and booking process.

Online social networking sites suchas Facebook are used to consult andgather information.

Destinations featured on TV and in filmsplay a role in destination choice.

Marketing messaging should givereassurance that they are getting a gooddeal; and that once they arrive at theirholiday destination people will be helpfulif anything goes wrong.

0 10 20 30 40 50 60

Gaining social prestige and status/bragability

Media ads by govts/tourism boards/orgs marketing holiday destinations

Media ads/promotions by airlines or travel agentsTravel-specific programs on the radio

Locations your children want to visit

General news reports (in print, on television, in online media, etc)

Travel brochures

Travel books or guides

Online blogs and reviews, e.g. Trip Advisor

Travel-specific articles or information in newspapers or magazines

Locations/places that you have seen in movies or TV serials

Social networking sites on the internet (e.g. Facebook)

Travel-specific programs on TV (e.g. on Travel and Leisure Channel)Advice from a travel agent or tour operator

Travel-specific information on the internet

Recommendations from friends or family who have lived or do live there

Recommendations from friends or family who have visited there

1%

2%

2%6%

6%

7%

9%

10%

17%

19%

20%

23%

25%27%

31%

34%

51%

Influences on destination choice

What travel sellers have to say...

The research included interviews with travel sellers in India. Some insights:

Australias visa application process has become easier for Indian travellers in the last12 months.

Indian consumers are high users of the internet and as a result they are well informedand will shop around for the best deals. Australia has a wide variety of products andexperiences, but needs to continue to innovate, create and communicate new reasonsto travel to Australia in order to remain competitive with other destinations.

The average middle-class Indian traveller makes two overseas trips a year, one longhaul and one short haul.

The luxury travel segment has grown significantly in the last year and continues to doso, despite the declining Rupee. These travellers are often accompanied by domesticstaff (cooks, personal assistants, drivers and so on) as luxury travellers do not want tocompromise on the service levels they are used to at home.

Because of Indias rising wealth, Tourism Australias target customer - affluentconsumers in key cities - is endorsed as the right target segment in India.

To reach these tech-savvy target customers, operators are increasing marketing spendin online channels. This includes not just information, but also online sales.

Non-stop direct flights, whilst not essential, are preferred by Indian travellers asthey allow more time in the destination and are easier to manage when travellingwith children.

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Who our target customers are

Affluent they are amongst thewealthiest of Indias population, butincome does vary across cities.

Men and women aged 35-54 years.

Couples (including honeymooners) andfamilies (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 andhave Australia as part of their holidayconsideration set.

Live predominantly in Delhi andMumbai, but also in Chennai, Kolkata,Hyderabad and Bangalore. Analysis ofeconomic and demographic forecastsas well as aviation, visa access andindustry feedback was undertaken toidentify 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 timeto de-stress and spend time with family. The latter are key motivators for leisuretravel 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. Thosefrom 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 learningabout the Indian consumer, their purchasingintentions and desire for experiencing travel. India isalready Australias tenth largest source market and hasthe potential to grow strongly in coming years if weget the marketing, product, distribution and aviation

access right.Andrew McEvoy, Managing Director, Tourism Australia.

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Knowing the customer in India July 2013

Next steps

Tourism Australia will share the findings and insights from this consumer researchwith industry and governments in Australia and India to help drive targetedmarketing communications, and inform product and experience development.Insights from this research will also help to refine Tourism Australias marketingactivities in India, including improving media efficiencies and determining keyprojects that will drive demand for Australia.

The Research

This is the first time Tourism Australia has undertaken such comprehensive researchinto the travel behaviour and preferences of consumers living outside Mumbai andDelhi. Along with these cities, analysis was also undertaken in Kolkata, Chennai,Bangalore and Hyderabad. Ipsos undertook the study, focusing on understanding thedifferences 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 booktheir own holiday; while the comfort and safety of a package was more appealing forrespondents from Chennai, Kolkata and Mumbai.

The research was undertaken in two stages using both qualitative (focus groups andin-depth interviews) and quantitative (face-to-face surveys) methodologies. A targetsample of 2,054 participants was used.

Research objective

The key objective of this research is to increase Tourism Australias understanding ofwhat motivates the Indian target customer to travel long haul, their intention anddesire to travel, what they currently know about Australia and how Australia compareswith other destinations, travel preferences, planning and booking channels, and

media consumption habits. Insights from the research will inform Tourism Australiasmarketing and communication strategies in India.

Want to know more?

For more detail, please contact theGlobal Insights team in Sydney

Chris RiggSenior Insights Analyst, GlobalInsights, Tourism Australia

E: crigg@tourism.australia.comT: +61 2 9361 1354

For media queries, please contact theCorporate Affairs team in Sydney

Leo SeatonManager, Media Relations,Tourism Australia

E: lseaton@tourism.australia.comT: +61 2 9361 1363

Orask.us@tourism.australia.com

www.tourism.australia.com@TourismAus

Tourism Australias corporate site(www.tourism.australia.com) containsinformation on India and the Indianconsumer. Updates on TourismAustralias activities and the India marketare published in Tourism Australiasindustry newsletter, Essentials.

State and regional tourism

organisations are also a source ofmarket intelligence on India.

About Ipsos Social Research

The Ipsos Social Research Instituteis part of the Ipsos group, a globalorganisation based in Paris with over85 offices world-wide. It is a leaderin understanding the perceptions ofcitizens, public service users and otherstakeholders. Its aim is to help clientsin governments and the public sectormake better, evidence based decisions.

www. Ipsos.com

The research revealed the high status and importanceof overseas travel to Indians in all six of the citiesincluded. Australia certainly has a wow factor for thismarket, with its natural environment being among thestrongest attractions. There is now an opportunity tofurther build on these positive perceptions by raising

awareness of specific destinations and activities onoffer to visitors to Australia. Hannah Race, Research Managerat Ipsos Social Research Institute