India Outbound Tourism 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.
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.
Top Featured
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.
