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India Outbound Tourism Market Segmentation By Type of Tourism (Leisure, Visit to Friends and Relatives, Business and Others); By Type of Traveller (High Net-Worth Individual, Ultra-High Net-Worth Individual and Others); By Channel of Booking (Travel Agent, Online and Others) – Industry Demand Analysis & Opportunity Outlook 2020

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Extensive insights into the Growth of India Outbound Tourism Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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IN THE NEWS
  • In September 2018, Creative Travel launched its new signature product series ‘Engaging Journeys’ crafted by Creative. The series comprise of unique journeys created around themes of varying interests.

Market Overview based on Region during 2018-2020

The market for India outbound tourism (to France) consists of the money spent by Indian travelers on their trips to France. This includes the costs incurred on air travel, food, insurance, visa, domestic travel, accommodation, local sightseeing and other expenses.

The India outbound tourism market gained a market value of USD 2,980.8 million in 2018, which grew by a significantly high amount by the end of 2019. Moreover, the number of passengers travelling from India to France increased from 800,000 in 2018 to 864,000 in 2019, and this is anticipated to grow at a high rate in the coming years.

Market Segmentation Synopsis

By Type of Tourism

As per the data recorded by Pacific Asia Travel Association (PATA), around 40% of outbound trips by Indians are for business purposes. Moreover, the segments for leisure, visiting friends & relatives and other purposes each account for over 20% of the total trips.

On the basis of type of tourism, the market is segmented into leisure, visit to friends and relatives, business and others. The segment for leisure held the highest market share of about 55% in 2018. This can be attributed to the increasing trend of vising other countries for travel by the Indian community. Moreover, various airlines are expanding their businesses on account of the growing number of VFR travelers by launching attractive and economical packages and contributing towards the India outbound tourism market growth. On the other hand, the segment for business is anticipated to grow on account of rising expenditure by businesses on their trips. CLICK TO DOWNLOAD SAMPLE REPORT

India Outbound Tourism Market

By Type of Traveler

Based on the type of traveler, India outbound tourism market is segmented into high net-worth individual (liquid financial assets above USD 1 million), ultra-high net-worth individual (liquid financial assets above USD 30 million) and others. A high net worth individual (HNWI) is generally someone with at least USD 1 million in cash or assets which can easily be converted into cash. These individuals contribute to outbound tourism by making huge investments in the travel agencies for luxury tours abroad. Moreover, there is a growing trend of customized abroad trips where the choice of ultra-high net worth individuals as well as high net worth individuals are exclusive, thus resulting in a higher generation of revenue in this market. On the back of this, the segment for ultra-high net worth individuals is projected to grow over the coming years. The growing number of free independent travelers who are adventurous and seek out for new challenging activities is predicted to be a major growth driver for the market. The middle-income households are estimated to create a demand for both domestic as well as international travel. This can have an impact on outbound leisure travel and improve affordable accessibility for middle-income travelers in France.

By Channel of Booking

The market for India outbound tourism market is segmented on the basis of channel of booking into travel agent, online and others, out of which, the segment for online channel is predicted to hold the leading share in the market. This can be attributed to rising internet penetration along with increasing number of smartphone users, which is anticipated to result in higher online bookings of holiday packages that are contributing to the India outbound tourism market growth across the country. Moreover, owing to the increasing digitization in India, growing number of business travelers have propagated the demand for reservations and ticketing through travel agents and online sales channels.

Market Drivers and Challenges

Growth Indicators

As the Indian economy is growing, the disposable income of the population is also increasing, leading to a direct increase in leisure activities including international travel. France has cultural and natural resources along with a reputation for vibrant, artistic creativity, which is resulting in the growing interest of Indian travelers. According to the World Bank, the per-capita income of India was USD 7,762.9 in 2018 and this is anticipated to further increase in the coming years, thus positively impacting the outbound tourism market. Further, the market is witnessing an increase in business travel between India and France especially in sectors such as technology, pharmaceuticals, manufacturing, construction, and energy. The exchange of investments between the countries is predicted to drive the business travel to France by developing Indian companies. India outbound tourism to France has increased over the past few years on account of the decreased cost of international airfare and the availability of affordable travel packages.

Barriers

The Indian outbound travelers are known for their price-sensitivity which negatively impacts the commissions of travel agents who provide the outbound tourism services to France. Price sensitivity is one of the trickiest issues in tourism economies which are estimated to become a challenge for the India outbound tourism market.

Competitive Landscape

Some of the affluent industry leaders in the India outbound tourism market are Creative Travel, Luxury Gold, The Appointment Group Limited, Original Travel, Thomas Cook, ABC Travels, International Travel House and Cox and Kings.

FREQUENTLY ASKED QUESTIONS

India Outbound Tourism (To France) Market

Part 1 Market Definition and Research Methodology

• Market Definition

• Research Objective

• Research Methodology

Part 2 Executive Summary

Part 3 Market Dynamics

• Drivers

• Challenges

• Trends

• Opportunities

Part 4 Industry Analysis

• Business Opportunity Mapping

o Service Offering

o Potential Partnership

• Analysis on Vacation Habits

o Average Number of Trips

o Average Money Spent Per Trip

o Top Holiday Activities for Leisure Trips in France

Part 5 Policy and Regulatory Landscape

Part 6 India Outbound Tourism (to France) Market

• Market Overview – Market Size (2018–January 2020)

• Market segmentation by:

o Tourism Type

o Channel of Booking

o Type of Traveler

o Spend Type

Part 7 Competitive Landscape

• Company Profiles of Key 8 Players

Part 8 Primary Interview Analysis

• Interview transcripts


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