Structured Approach to Tourism Representation

August 2018

Structured Approach to Tourism Representation

From 9.8 million outbound travellers in 2007 to 22.5 million in 2017, India has become one of the fastest growing outbound markets of the world. While on a holiday an Indian traveller spends an average of USD 1000 and a total expenditure of USD 16.8 billion has been incurred by Indians in 2016 which makes them the second biggest spenders of the world.

Increasing disposable income, reduction in the cost of international airfares, availability of affordable packages and the rise in low cost carriers are the key factors that have resulted to this growth

India’s population is 1.3 billion and it’s interesting to note that only 1.5 % of the total population is traveling and that’s nanoscopic. There is huge potential to harvest this market for future gains. Indian traveller abroad can be divided into 3 segments viz – business traveller, VFR (Visiting Friends and Relatives) and essential tourist apart from the Indian students studying abroad.

This market is not yet fully explored because of the size, diversity and complexity. It still remains unstructured as the travel business is made of wholesalers, retailers, online travel agencies, mom and pop travel agents. Some of them focus on a specific region or a segment like Honeymooners, Adventure, Religious tourism while others focus on luxury or MICE.

Becoming fully aware of this huge potential, around 70 NTOs have their local presence in India. It becomes very difficult to set up their own office in India because of the regulations, understanding the market’s behaviour and high costs required for setting up the office. That’s when destinations looking to target specific markets often turn to destination marketing representation firms who can effectively reach local consumers, outbound operators, and local media – all in an effort to drive destinations sales and increase visitation.