Travel And Tourism in India

Euromonitor International's Travel And Tourism in India report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.

Buy online to access strategic market analysis and an interactive statistical database of market size data for travel accommodation, transportation, car rental, travel retail, tourism attractions and health and wellness tourism, tourism inflows and outflows, tourism spending and company and brand shares.

Why buy this report

• Get insight into trends in market performance
• Pinpoint growth sectors and identify factors driving change
• Identify market and brand leaders and understand the competitive environment

Product coverage

Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic; Tourism flows inbound; Tourism flows outbound; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail

Executive summary

Tourism hit due by economic meltdown and Mumbai terror attacks

Tourism growth rates declined sharply in 2008 compared to 2007 and also compared to the tourism boom seen over 2003-2008. The decline was due to the global economic meltdown and the terror attacks in Mumbai in November 2008. Decline in tourism was reflected by the much lower growth rates in international traffic and receipts, departures, domestic tourism, as well as in all tourist service providing sectors (accommodation, transport, car rental, travel retail etc.)

Government and Ministry of Tourism respond speedily to revive tourism

The Ministry of Tourism has responded speedily by introducing several steps to revive tourism, notable ones include declaring 2009, ‘Visit India year’, offering a variety of promotions to tourists in 2009 and incentives to travel retail agents, hotels and other tourism service providers to develop tourism. The Ministry increased spend on advertising campaigns (including for ‘Incredible India’ and the ‘Ahithi Devo Bhava’ - Visitors are like God - campaigns) to reinforce the rich variety of tourism in India. Another important area where it has focused is to aggressively promote India as a safe tourist destination and to emphasise this it has undertaken several measures, such as stepping up vigilance, setting up a special tourist police force in key cities and at historically important tourist sites, as well as deploying increased manpower and resources for improving security checks at key airports and railway stations.

Stiffer competition due to dwindling demand puts players under pressure

Declining tourist traffic led to falling occupancies in the accommodation sector and lower air passenger traffic. Many players in the air travel and accommodation sectors responded with price cuts to sustain demand, however price competition intensified to such high levels (e.g. in some sectors such as LCC’s) that many airlines found it impossible to financially sustain themselves in an environment of falling demand and rising costs. The overall airline industry is expected to post massive losses of Rs80 billion for 2008, and many small hotels have been unable to lower room tariffs to compete with larger players with deeper financial pockets. To cope with growing competition, most players are working aggressively to reduce their operational costs and many airlines (including large national carriers) have approached the government for a financial bailout. Other strategies adopted are to enter into temporary or permanent partnerships with a view to share costs and benefit from joint advertising.

Internet share of sales remains small but growing

Tourist bookings in most sectors (accommodation, airlines, car rental etc.) are still largely made over the phone, email or in the provider’s office, rather than booking on-line and hence in 2008, the share of internet bookings remained small yet growing. This is partly because consumers in India are still not very comfortable booking on-line due to concerns over payment security. Another reason is that many providers and intermediaries still do not offer the full range of travel products (accommodation, flight tickets, car rentals etc.) on their portals and hence it is often cheaper not to book on-line. However with the technological advancement in on-line payment security, the presence of more developed portals of direct providers as well as intermediary travel portals, and with greater internet penetration, internet booking is expected to gain significance during the forecast period.

Challenging times in the interim but long term prospects promising

Despite the decline in tourism in 2008 due to the economic meltdown and the concerns about terrorism, according to most industry sources, Indian tourism prospects remain promising in the long term. But during the forecast period the growth is expected to be slower compared to the boom of 2003-2008. Like 2008, 2009 is also likely to see lower growth rates , but a strong recovery is expected in 2010 due to the Commonwealth games being held in India then. Following the 2010 spike, tourism growth is expected to slide back again and then to gradually recover over the forecast period, in line with the expected revival of the global economy.

Table of contents

TRAVEL AND TOURISM IN INDIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Tourism hit due by economic meltdown and Mumbai terror attacks

Government and Ministry of Tourism respond speedily to revive tourism

Stiffer competition due to dwindling demand puts players under pressure

Internet share of sales remains small but growing

Challenging times in the interim but long term prospects promising

KEY TRENDS AND DEVELOPMENTS

Economic Indicators

Liberalised legislation supports growth of tourism

Sustainable Tourism

Consumer Lifestyles

Low Cost Carriers

Emerging Niche Sectors

Internet Developments

TERRORISM AND SECURITY

LEAVE ENTITLEMENT

CONSUMER DEMOGRAPHICS

BALANCE OF PAYMENTS

MARKET INDICATORS

Table 1 Leave Entitlement: Volume 2005-2008

Table 2 Holiday Demographic Trends 2003-2008

Table 3 Holiday Takers by Sex 2003-2008

Table 4 Holiday Takers by Age 2003-2008

Table 5 Length of Domestic Trips: 2003-2008

Table 6 Length of Outbound Departure: 2003-2008

Table 7 Seasonality of Trips 2005-2008

MARKET DATA

Table 8 Balance of Tourism Payments: Value 2003-2008

DEFINITIONS

Tourism parameters

Travel accommodation

Transportation

Car rental

Travel retail

Tourist attractions

Health and wellness

Internet sales

Internet sales: dynamic packaging

Internet sales: traditional package holiday

Summary 1 Research Sources

LOCAL COMPANY PROFILES - INDIA

HOTEL LEELA VENTURE LTD - TRAVEL AND TOURISM - INDIA

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Hotel Leela Venture Ltd: Key Facts

Summary 3 Hotel Leela Venture Ltd: Operational Indicators

BACKGROUND

COMPETITIVE POSITIONING

Summary 4 Hotel Leela Venture Ltd: Competitive Position 2008

JET AIRWAYS INDIA LTD - TRAVEL AND TOURISM - INDIA

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Jet Airways India Limited: Key Facts

Summary 6 Jet Airways India Limited: Operational Indicators

BACKGROUND

COMPETITIVE POSITIONING

Summary 7 Jet Airways India Ltd: Competitive Position 2008

KINGFISHER AIRLINES LTD - TRAVEL AND TOURISM - INDIA

STRATEGIC DIRECTION

KEY FACTS

Summary 8 Kingfisher Airlines Ltd: Key Facts

Summary 9 Kingfisher Airlines Ltd : Operational Indicators

BACKGROUND

COMPETITIVE POSITIONING

Summary 10 Kingfisher Airlines Ltd: Competitive Position 2008

KUONI TRAVEL INDIA LTD - TRAVEL AND TOURISM - INDIA

STRATEGIC DIRECTION

KEY FACTS

Summary 11 Kuoni Travel India Ltd.

Summary 12 Kuoni Travel India Ltd.: Operational Indicators

BACKGROUND

COMPETITIVE POSITIONING

Summary 13 Kuoni Travel India Ltd.: Competitive Position 2008

MAKEMYTRIP INDIA PVT LTD - TRAVEL AND TOURISM - INDIA

STRATEGIC DIRECTION

KEY FACTS

Summary 14 MakeMyTrip India Pvt. Ltd: Key Facts

Summary 15 MakeMyTrip India Pvt Ltd. Operational Indicators

BACKGROUND

COMPETITIVE POSITIONING

Summary 16 MakeMyTrip India Pvt Ltd: Competitive Position 2008

TOURISM FLOWS INBOUND IN INDIA

HEADLINES

TRENDS

COUNTRY OF ORIGIN

INBOUND DEMOGRAPHIC PROFILE

MODE OF TRANSPORT

PURPOSE OF VISIT

CITY ARRIVALS

Table 9 Arrivals by city: 2008

INCOMING TOURIST RECEIPTS BY COUNTRY

PROSPECTS

SECTOR DATA

Table 10 Arrivals by Country of Origin: 2003-2008

Table 11 Leisure Arrivals by Type 2005-2008

Table 12 Business Arrivals: MICE Penetration 2005-2008

Table 13 Arrivals by Method of Transport: 2003-2008

Table 14 Arrivals by Purpose of Visit: 2003-2008

Table 15 Incoming Tourist Receipts by Country: Value 2003-2008

Table 16 Tourism Expenditure by Sector: Value 2003-2008

Table 17 Method of Payments for Incoming Tourist Receipts: % Breakdown 2005-2008

Table 18 Forecast Arrivals by Country of Origin: 2008-2013

Table 19 Forecast Arrivals by Method of Transport: 2008-2013

Table 20 Forecast Arrivals by Purpose of Visit: 2008-2013

Table 21 Forecast Incoming Tourist Receipts by Country: Value 2008-2013

TOURISM FLOWS OUTBOUND IN INDIA

HEADLINES

TRENDS

DESTINATIONS

OUTBOUND DEMOGRAPHIC PROFILE

MODE OF TRANSPORT

PURPOSE OF VISIT

OUTGOING TOURIST EXPENDITURE BY COUNTRY

PROSPECTS

SECTOR DATA

Table 22 Departures by Destination: 2003-2008

Table 23 Leisure Departures by Type 2005-2008

Table 24 Business Departures: MICE Penetration % Breakdown 2005-2008

Table 25 Departures by Method of Transport: 2003-2008

Table 26 Departures by Purpose of Visit: 2003-2008

Table 27 Outgoing Tourist Expenditure by Country: Value 2003-2008

Table 28 Outgoing Tourist Expenditure by Sector: Value 2003-2008

Table 29 Method of Payments for Outgoing Tourism Spending: % Breakdown 2005-2008

Table 30 Forecast Departures by Destination: 2008-2013

Table 31 Forecast Departures by Method of Transport: 2008-2013

Table 32 Forecast Departures by Purpose of Visit: 2008-2013

Table 33 Forecast Outgoing Tourist Expenditure by Country: Value 2008-2013

TOURISM FLOWS DOMESTIC IN INDIA

HEADLINES

TRENDS

DESTINATIONS

MODE OF TRANSPORT

PURPOSE OF VISIT

DOMESTIC TOURIST EXPENDITURE

PROSPECTS

SECTOR DATA

Table 34 Domestic Trips by Destination: 2003-2008

Table 35 Domestic Trips by Purpose of Visit and by Method of Transport: 2003-2008

Table 36 Domestic Tourist Expenditure: Value: 2003-2008

Table 37 Method of Payments for Domestic Tourism Spending: % Breakdown 2005-2008

Table 38 Forecast Domestic Trips by Purpose of Visit and by Method of Transport: 2008-2013

Table 39 Forecast Domestic Tourist Expenditure: Value: 2008-2013

TRAVEL ACCOMMODATION IN INDIA

HEADLINES

TRENDS

HOTELS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 40 Travel Accommodation Sales by Sector: Value 2003-2008

Table 41 Travel Accommodation Outlets by Sector: Units 2003-2008

Table 42 Travel Accommodation by Sector: Number of Rooms 2003-2008

Table 43 Regional Hotel Parameters 2008

Table 44 Travel Accommodation Sales: Internet Transaction Value 2003-2008

Table 45 Hotel National Brand Owners by Market Share 2004-2008

Table 46 Hotels National Brand Owners by Key Performance Indicators 2008

Table 47 Forecast Travel Accommodation Sales by Sector: Value 2008-2013

Table 48 Forecast Travel Accommodation Outlets by Sector: Units 2008-2013

Table 49 Forecast Travel Accommodation Sales: Internet Transaction Value 2008-2013

Table 50 Hotel Performance in India 2007/2008

TRANSPORTATION IN INDIA

HEADLINES

TRENDS

AIRLINES

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 51 Transportation Sales by Sector: Value 2003-2008

Table 52 Airline Capacity: 2003-2008

Table 53 Airline Utilisation: 2003-2008

Table 54 Airline Passengers Carried by Distance: % Breakdown: 2003-2008

Table 55 Transportation Sales: Internet Transaction Value 2003-2008

Table 56 Airline Market Shares 2004-2008

Table 57 Airlines National Brand Owners by Key Performance Indicators 2008

Table 58 Forecast Transportation Sales by Sector: Value 2008-2013

Table 59 Forecast Transportation Sales: Internet Transaction Value 2008-2013

CAR RENTAL IN INDIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 60 Car Rental Sales by Sector and Location: Value 2003-2008

Table 61 Structure of Car Rental Market: 2003-2008

Table 62 Average Car Rental Duration by Sector 2004-2008

Table 63 Average Car Rental Duration: % Breakdown 2004-2008

Table 64 Time of Booking: % Breakdown 2005-2008

Table 65 Car Rental Sales: Internet Transaction Value 2003-2008

Table 66 Car Rental Market Shares 2004-2008

Table 67 Car Rental National Brand Owners by Key Performance Indicators 2008

Table 68 Forecast Car Rental Sales by Sector and Location: Value 2008-2013

Table 69 Forecast Car Rental Sales by Sector: Internet Transaction Value 2008-2013

TRAVEL RETAIL IN INDIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

GROWTH SECTORS

PROSPECTS

SECTOR DATA

Table 70 Travel Retail Outlets by Sector: Units 2003-2008

Table 71 Travel Retail Products Sales: Value 2003-2008

Table 72 Travel Retail Sales by Destination: % Value Breakdown 2003-2008

Table 73 Travel Retail Online Sales by Sector: Internet Transaction Value 2003-2008

Table 74 Travel Retail Products Market Shares 2004-2008

Table 75 Travel Retail Products National Brand Owners by Key Performance Indicators 2008

Table 76 Forecast Travel Retail Outlets by Sector: Units 2008-2013

Table 77 Forecast Travel Retail Products Sales: Value 2008-2013

Table 78 Forecast Travel Retail Online Sales by Sector: Internet Transaction Value 2008-2013

TOURIST ATTRACTIONS IN INDIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 79 Tourist Attractions Sales by Sector: Value 2003-2008

Table 80 Tourist Attractions Visitors by Sector: 2003-2008

Table 81 Tourist Attractions Sales: Internet Transaction Value 2003-2008

Table 82 Leading Tourist Attractions by Visitors 2003-2008

Table 83 Forecast Tourist Attractions Sales by Sector: Value 2008-2013

Table 84 Forecast Tourist Attractions Visitors by Sector: 2008-2013

Table 85 Forecast Tourist Attractions Sales: Internet Transaction Value 2008-2013

HEALTH & WELLNESS TOURISM IN INDIA

HEADLINES

TRENDS

PROSPECTS

SECTOR DATA

Table 86 Number of Hotel/Resort Spas: Units 2003-2008

Table 87 Health & Wellness Tourism Sales by Type: Value 2003-2008

Table 88 Spa Consumer Markets: Domestic Tourism 2005-2008

Table 89 Spa Consumer Markets: Arrivals 2005-2008

Table 90 Forecast Health & Wellness Tourism Sales by Type: Value 2008-2013