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TravelTourism&HospitalityIndustryOverview

Preface | Foreword | ExecutiveSummary | IndustryOverview | GrowthDrivers | ChallengesandOpportunities | Policiesand

Initiatives | Interview
CompanyProfiles | LaunchEvent | EditorialTeam | Partners

Travelandtourismisthelargestserviceindustrygloballyintermsofgrossrevenueandforeignexchangeearnings.Itisalsooneofthe
largest employment generators in the world. It has been a major social phenomenon and is driven by social, religious, recreational,
knowledgeseekingandbusinessinterestsandmotivatedbythehumanurgefornewexperience,adventure,education,andentertainment.
Tourismisbothcauseandconsequenceofeconomicdevelopment.Ithasthepotentialtostimulateothersectorsintheeconomyowingto
crosssynergisticbenefitsanditsbackwardandforwardlinkages.
Globalscenario
Travelandtourismisoneofthefastestgrowingindustriesandaleaderinmanycountries.Itisexpectedtohavegeneratedaround 9.4%
ofworldGDPand8.2%oftotalemploymentin2009.Thecontributionoftheindustrytotheglobaleconomyremainshighdespitea4.38%
declinein2009.Duringtheyear,travelandtourisminvestmenttoodeclinedbymorethan12%.
International tourist arrivals rose from 682 million in 2001 to 920 million in 2008. The global travel and tourism industry experienced a
downturn in 2009 due to the global economic and financial meltdown. The industry was affected by low business volumes and consumer
confidence, given the uncertainty about factors such as availability of credit, exchange rates, employment, and the H1N1 virus.
Consequently, tourist arrivals fell 4% worldwide in 2009. Nevertheless, tourist arrivals increased 2% in the last quarter of 2009, led by
recoveryintheAsiaPacificandtheMiddleEast.

The industry is expected to improve in 2010, as most of the leading economies are exiting the recession since end2009. However, it is
expected to be gradual as corporations, households and governments slowly recover. Given the improvement in global economic
conditions, the UNWTO forecasts a 34% increase in international tourist arrivals during 2010. Asia is expected to continue showing the
strongestrebound,whileEuropeandAmericasarelikelytorecoveratamoremoderatepace.
Theexpectedreboundintourismmaterialisedinthefirstfourmonthsof2010.Thisisreflectedinthe7%increaseininternational tourist
arrivalsduringJanuaryApril2010.Touristarrivalsgrewatafasterpaceof8%inemergingmarkets,whileadvancedeconomiesreporteda
5%increase.

In 2009, following the trend in tourist arrivals, international tourism receipts also recorded a decline. It is estimated to have declined by
5.7%toUS$852bn.Thedeclineinearningsissharperthaninarrivals,asduringperiodsofslowdown,touriststendtostayclosertohome
andprefertotravelforashorterdurationoftime.

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The travel and tourism industry can be divided into inbound and outbound tourism inbound refers to countries attracting the largest
numberoftouristsandoutboundreferstocountriesfromwherethelargestnumberoftouristsoriginate.
Worldinboundtourism
Internationaltouristarrivalswere880millionin2009.TheEuropeanregioncontinuestoattractthelargestnumberoftourists, accounting
for around 52% of total traffic in 2009. The Asia Pacific and Americas follow with shares of 21% and 16% respectively. France, USA and
Spainwerethetopthreetouristdestinationsin2009ChinaandItalyrankfourthandfifthrespectivelyintermsoftouristarrivals.

Internationaltouristreceiptsweredown5.7%in2009.Europecontinuestodrawthehighestamountoftotalreceipts,accountingfor49%
theAsiaPacificandAmericasformedaround24%and19%respectively.USA,SpainandFrancewerethetopthreeearnersduring2009in
thatorderItalyandChinarankedfourthandfifthrespectively.

Germany,USAandtheUKaretheleadersintermsofinternationaltourismspending.During2009,ChinaovertookFrancetobecomethe
fourthlargesttourismspender.
Sometrendsinconsumerspendingintensifiedduringtheglobalslowdown.Theseincludelatebooking,preferenceforshorthaultrips
comparedwithlonghaulones(travellingcloserandforshorterperiodsoftime),anddemandingvalueformoney.Thesechangesin
consumerpreferenceswouldrequirechangesinbusinessmodelsofplayersintheindustry.
Airtransport,whichplaysasignificantroleintheglobaltravelandtourismindustryforbothbusinessandleisuretravel,wasalsoadversely
affectedduring2009.
Indiantravelandtourismindustry
Indiantourismoffersmostdiverseproductsglobally.Thecountrysrichhistory,culturalheritage,beauty,diversityofreligionandmedicine
fascinatebudgetandluxurytravelers.TourisminIndiahasregisteredsignificantgrowthovertheyears.Thishasbeenledbygrowthin
bothleisureandbusinesstourism.Risingincomes,increasingaffordability,growingaspirations,increasingglobalisation,andagrowing
airlineindustryalongwithimprovementintravelrelatedinfrastructurehavesupportedindustrygrowth.Tourismholdsimmensepotential
fortheIndianeconomy.Itcanprovideimpetustootherindustriesthroughbackwardandforwardlinkagesandcancontributesignificantly
toGDP.

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IndiastravelandtourismindustryisexpectedtogeneraterevenueofRs.1,970bn(US$42bn)in2010,accordingtotheWorldTravel&
TourismCouncil(WTTC).Thiswouldbearound3.1%oftotalGDP.However,sincetravelandtourismtouchesallsectorsoftheeconomy,its
realimpactisgreaterandthetravelandtourismeconomydirectlyandindirectlyaccountsfor`5,533bn(US$118bn),equivalentto8.6%
oftotalGDP.

Personaltravelandtourismisthemostsignificantcontributor,accountingfor55%ofthetotalmarket,whilebusinesstravelformsonly9%.
Capitalinvestmentisalsosignificantwithashareof24%.Hotels,airtransport,surfacetransport,basicinfrastructure,andfacilitation
systemsenvironmentaresomeoftherelatedsectors.
TheshareoftheIndiantravelandtourismindustrygloballyisveryless.Howevertheindustryholdsimmensepotential.Infact,Indiahas
beenrankedamongtheleadersbytheWTTCforlongterm(10year)growthprospects.Further,agloballyrenownedtravelmagazine,
CondeNastTraveler,rankedIndiaamongthetop10touristdestinationsoftheworld.JBIChasalsorankedIndiaasthefifthmost
attractiveinvestmentdestination.Indiaisprobablytheonlycountrythatoffersvariouscategoriesoftourismwithitsgeographicaldiversity
andrichculturalheritage.
Structureofthetourismindustry

Tourismcomprisesactivitiesofpeopletravellingtoandstayinginplacesoutsidetheirusualenvironmentfornotmorethanoneconsecutive
yearforleisure,businessandsocial,recreational,andknowledgeseekingpurposes.
Thetourismindustryisprimarilyserviceandpeopleorienteditismadeupofbusinessesandorganisationsbelongingtovariousother
industriesandsectors.Itisaninterplayamongthesebusinessesandorganisations/personswhichoffertravelexperiencetotourists.The
tourismindustrycompriseshospitality(relatedtoaccommodationanddining),travel(transportationservicesthroughdifferentmodes),and
variousotherbusinesseswhichofferservicesandproductstotourists.ThecomponentsofthetourismindustryareshowninExhibit1.1.

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MostoftheplayersinthetourismindustryareSMEs.TheunorganisedsectordominatestheindustryinIndia.Hotels,airlinecompanies,
andtouroperatorsformtheorganisedsector.
Specialisttravelserviceprovidersassisttouristswithtravelarrangements.Theseprovidersincludetravelagencieswhoareinvolvedin
retailingoftravelproductsdirectlytothetourists(individualsorgroups).Theyprovideinformationondifferenttraveldestinationsand
advisecustomersontravelplans.Theyalsosellassociatedproductssuchasinsurance,carhire,andcurrencyexchange.
Businesstravelagenciesspecialiseinmakingtravelandaccommodationarrangementsforbusinesstravelersandpromotingconference
trades.Thetouroperatorsprovidepackagesforindividualswhiletheprincipalsprovidebasictravelandtourismrelatedservices.
Touroperatorsofferholidaypackageswhichcomprisetravel(road,rail,sea,airaswellastoandfromthedestinationairport,carhire,
excursions,etc)andaccommodation(hotels,guesthouses,apartments,etc)services.
Transportserviceproviderscouldbeairlines,cruiselines,carrentals,andrailcompanies.Atouristschoiceoftransportwoulddependon
thetravelbudget,destination,time,purposeofthetour,andconveniencetothepointofdestination.Accommodationcouldbehotelsand
motels,apartments,camps,guesthouses,lodge,bedandbreakfastestablishments,houseboats,resorts,cabins,andhostels.Inaddition,
touristsalsorequirecateringfacilities,whichavarietyofoutletsforfoodandrefreshmentsoffer.Theseincludehotels,localrestaurants,
roadsidejoints,cafeterias,andretailoutletsservingfoodandbeverages.
Anothermajorcomponentofthetravelandtourismindustryisattractionssuchasthemeparksandnaturalattractionsincludingscenic
locations,culturalandeducationalattractions,monuments,events,andmedical,socialorprofessionalcauses.
Thetouristinformationandguidanceprovidersincludeanumberofserviceproviderssuchasthoseofferinginsurance,recreational,
communication,andbankingservicesgovernmentagenciestourguidesindustryassociationspackagingagentsticketingagentsand
holidaysellers.
Typesoftourists
Touristscanalsobeclassifiedbasedontheirpurposeofvisit:
Businesstourists
Thissegmenttypicallycomprisesthosetravellingformeetings,incentives,conventionsandexhibitions(MICE)however,thisdefinitionis
notconclusiveandincludesanytouristonavisittoIndiaforbusinesspurposes.Businesstourismisviewedasanimportantmarketinthe
countryandoneofthehighyieldingsectorsofthetourismindustry.
Leisuretourists
Leisuretourismcomprisestripsforpleasure.Itincludesholidayswithinthecountryorabroad.Visitingfriendsandrelativesandtravelfora
varietyofreasonssuchashealthandfitness,sports,education,andculturealsocomeunderthepurviewofleisuretrips.Inthepastfew
years,opportunitiesinIndiaforleisuretourismhaveemergedstronglyowingtothefollowingfactors:changingconsumptionpatternof
Indiancustomers,burgeoningIndianmiddleclasspopulation,andgeographicaldiversity.
Touristscanalsobeclassifiedintodomesticandforeigntouristsbasedontheirnationality.Furthermore,dependingontheduration,tourism
canbeclassifiedintopicnic,excursion,holidays,weekendgetaways,etc.
Differentformsoftourism
Therearedifferenttypesoftourism.Therecenttrendismovingtowardnichesegmentsoftourism:
Medical/healthcaretourismAdventuretourismHeritagetourismEcotourismRuraltourismPilgrimagetourism
Medicaltourism
Medicaltourismalsoknownashealthtourismhasemergedasoneoftheimportantsegmentsofthetourismindustry.Thetermhasbeen
coinedbytravelagenciesandthemassmediatodescribetherapidlygrowingpracticeoftravellingacrossinternationalborderstofor
healthcare.Travelerstypicallyseekservicessuchaselectiveproceduresaswellascomplexspecialisedsurgeriessuchasjoint
replacement(knee/hip),cardiac,dental,andcosmeticsurgeries.Psychiatry,alternativetreatments,andconvalescentcarearealso
available.
Severalfactorshavecontributedtogrowthinmedicaltourismworldwide.Theseinclude:
Lowtravelcosts
Significantreductionintravelcostsworldwidehasmadetraveltoothercountriesformedicaltreatmentsmoreaffordable.Thishasalso
boostedindustrygrowth.
Highgrowthofworldclassmedicaltreatmentsindevelopingcountries

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Healthcarefacilitiesinmanydevelopingcountrieshaveimprovedsignificantlyinrecentyearsandtheirstandardsofhealthcarearenowon
parwiththatintheUSorWesternEurope.
MedicaltourismhasdoneexceptionallywellinIndiaandthenumberofmedicaltouristscomingintothecountryisincreasing.Rising
healthcarecostsinthedevelopedeconomies,especiallytheUSandtheUK,isforcingpatientsfromtheregiontolookforcosteffectiveand
alternativeformsoftreatment.India,withitspoolofhighlytrainedandspecialiseddoctors,goodhealthcareinfrastructurefacilities,
relativelylowercostoftreatmentandavailabilityofalternativeformsoftreatmentsuchasAyurveda,Yoga,Siddha,andNaturopathyis
seeingstronggrowthinmedicaltourism.
Medicaltourismispromotedthroughsuitablepackagingofidentifiedbesthospitalsandpricebandingaspertreatmentrequirements.The
medicalcostsinIndiaaremuchlowerataround25%ofthecostsintheEuropeanandUSmarkets.Medicaltourismhasgrownswiftly
despitetheeconomicslowdown.Theindustryisstillatanascentstageandholdsimmensepotential.
ThekeybenefitsofmedicaltreatmentandmedicaltourisminIndiaare:
Worldclasstreatmentatfractionofthecostinwesterncountries
Patientsfrommorethan55countriesavailingtreatmentinIndia
Medicaltechnology,equipment,facilitiesandhealthcareinfrastructureinIndiaatparwithinternationalstandards
TheIndiandoctorsrecognisedamongthebestglobally.
VariousmedicaltreatmentsthatcanbeavailedinIndiaincludekneereplacement,hipreplacement,cosmeticsurgery,dentaltreatment,
andcardiaccare.
Thegovernmentisalsotakingseveralmeasurestopromotemedicaltourisminthecountry.ThisincludesissuanceofMedicalVisafor
patientsandtheirattendantscomingtoIndiafortreatment.Ithasalsorequestedthestategovernmentstopromotehealthcarepackages.
UndertheMarketDevelopmentAssistanceScheme,financialassistancewouldbeprovidedtomedicaltourismserviceproviders(MTSP),
i.e.accreditedhospitalsandmedicaltourismfacilitators(travelagentsandtouroperatorsapprovedbytheMinistryofTourismandengaged
inmedicaltourism).
Wellnesstourism
Wellnesstourismisregardedasasubsegmentofmedicaltourism.Here,theprimarypurposeisachieving,promotingormaintaininggood
healthandasenseofwellbeing.IndiawithwidespreadpresenceofAyurveda,Yoga,Siddha,andNaturopathy,complementedbyits
spiritualphilosophy,isawellknownwellnessdestination.Wellnesstourismincludesayurvedictherapies,spavisits,andyogameditation.
Thegovernmentispromotingthisformoftourismwithpublicityandpromotionalactivities.
Adventuretourism
Travelfortheaimofexplorationortraveltoremote,exoticandpossiblyhostileareasisknownasadventuretourism.Withtouristslooking
fordifferentoptions,adventuretourismisrecordinghealthygrowth.Adventuretourismreferstoperformanceofacts,whichrequire
significanteffortsandsomedegreeofriskorphysicaldanger.Theactivitiesincludemountaineering,trekking,bungeejumping,mountain
biking,riverrafting,androckclimbing.
Indiawithitsdiversetopographyandclimateofferstremendousscopeforadventuretourism.Themountainregionsofferlotofscopefor
mountaineering,rockclimbing,trekking,skiing,skating,mountbikingandsafarisrushingriversprovideopportunitiesforriverrafting,
canoeingandkayakingandoceansprovidetremendousopportunityfordivingandsnorkeling.
Thegovernmentisundertakingmeasuressuchasfinancialassistancetogovernmentsofstatesandunionterritoryfordevelopmentof
adventuretourismdestinations.Ithasalsoprovidedfinancialassistancefororganisingmountainbikingexpedition.TheMinistryofDefense
hasgivenpermissionforopeningof104additionalpeaksinLehareaofJammu&Kashmirforadventuretourism,whilecustomsdutyon
inflatablerafts,snowskis,sailboardsandotherwatersportsequipmenthasbeenexempted.
Heritagetourism
Heritagetourismisdefinedastravelundertakentoexploreandexperienceplaces,activities,andartifactsthatauthenticallyrepresentthe
storiesandpeopleofthepastandpresent.Itisorientedtowardculturalheritageofthetouristlocation.Itinvolvesvisitinghistoricalor
industrialsites,religioustravelorpilgrimages.Indiaiswellknownforitsrichheritageandancientculture.Thecountrysrichheritageis
amplyreflectedinthevarioustemples,majesticforts,pleasuregardens,religiousmonuments,museums,artgalleriesandurbanandrural
siteswhicharecitadelsofcivilisation.Allthesestructuresformtheproductsofheritagetourism.
Ecotourism
Ecotourism,alsoknownasecologicaltourism,istraveltonaturalareastoappreciatetheculturalandnaturalhistoryoftheenvironment,
whilenotdisturbingtheintegrityoftheecosystemandcreatingeconomicopportunitiesthatmakeconservationandprotectionofnatural
resourcesadvantageoustolocalpeople.Itinvolvestraveltodestinationswhereflora,faunaandculturalheritageareprimaryattractions.
Ecotourismalsominimiseswastageandtheenvironmentalimpactthroughsensitisedtourists.Itcanbeoneofthemediumtopreservelocal
culture,floraandfaunaandothernaturalresources.
India,withitsgreatgeographicaldiversity,offersseveralecotourismdestinations.Itishometoawealthofecosystemswhicharewell
protectedandpreserved.Theseinclude:
Biospherereserves
Mangroves
Coralreefs
Deserts
Mountainsandforests
Floraandfauna
Seas,lakesandrivers
Caves
Thebasicprinciplestobefollowedinecotourismare:
Minimisetheimpact
Buildenvironmentalandculturalawarenessandrespect
Providepositiveexperiencesforbothvisitorsandhosts
Providedirectfinancialbenefitsforconservation
Providefinancialbenefitsandempowermentforlocalpeople
Raisesensitivitytopolitical,environmental,andsocialclimateofthehostcountry
Supportinternationalhumanrightsandlabouragreements.
AfewplacesforecotourismincludetheHimalayanregion,Kerala,NorthEastIndia,Andaman&NicobarandLakshadweepIslands.
ThenmalainKeralaisthefirstplannedecotourismdestinationinIndia.Somemostpopularecotourismlocationsinthecountryare
Rishikesh,KeralaandPuducherry.

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Ecotourismconsistsof:
Ecoparks
Ecoplaces
Ecofauna
Ecoflora
Ecodestinations
Ecotrivia
Ecotreks
Ecoadventures
Ruraltourism
Ruraltourismshowcasesrurallife,art,cultureandheritageofrurallocations,benefittingthelocalcommunityeconomicallyandsociallyas
wellasenablinginteractionbetweenthetouristsandlocalsforamoreenrichingtourismexperience.Ruraltourismismultifacetedandmay
entailfarm/agriculturaltourism,culturaltourism,naturetourism,adventuretourism,andecotourism.Ruraltourismhascertain
characteristics:itisexperienceorientedlocationsaresparselypopulateditispredominantlyinanaturalenvironmentitmesheswith
seasonalityandlocaleventsanditisbasedonpreservationofculture,heritageandtraditions.Indiasruralgeographicalandcultural
diversityenablesittoofferawiderangeoftourismproductsandexperiences.Increasinglevelsofawareness,growinginterestinheritage
andculture,improvedaccessibilitytoruralareas,andenvironmentalconsciousnessareplayinganimportantroleinpromotingrural
tourism.ThisformholdsimmensepotentialinIndia,wheremorethan70%ofthepopulationresidesinvillages.
TheMinistryofTourismalongwithUNDPundertooktheExploreRuralIndiaCampaign,togivetouristsachancetoexperiencelifeinrural
India.Itisoneofthemostsuccessfultourismcampaignssofar.DuringtheVisitIndiaYear2009campaign,15ruraltourismsiteswere
selectedasruralecoholidaysites.
Wildlifetourism
Wildlifetourism,oneofthefastestsegmentsoftourism,involvestraveltodifferentlocationstoexperiencewildlifeinnaturalsettings.Due
toitsvariedtopographyanddistinctiveclimaticconditions,Indiaisendowedwithvariousformsoffloraandfaunaandithasnumerous
speciesofbirds,mammals,reptiles,amphibiansandplantsandanimals.
Totapthepotentialofwildlifetourism,thegovernmenthaslaunchedsomewildlifepackagesfortravelers.WildlifeTourisminIndiaincludes
wildlifephotography,birdwatching,junglesafari,elephantsafari,jeepsafari,junglecamping,ecotourismetc.
Thecountryoffersimmenseopportunitiesforwildlifetourism.ThestrongheritageofwildlifeinIndiacomprisesmorethan70nationalparks
andabout400wildlifesanctuariesincludingbirdsanctuaries.However,concretestepsbyboththegovernmentandtheprivatesectorneed
tobetakentopromotewildlifetourism.TajHotels&ResortshasajointventurewithConservationCorporationAfricatoprovidewildlife
enthusiasts,circuittouristsandhighenddomestictravelerswithfascinatingwildlifeexperienceswithinIndiathroughanecologically
sustainablemodel.Inabidtopreservethenaturalhabitat,theMinistryofTourismhaslaunchedaninitiative,Tigers:OurNatural
Beauties.
MICEtourism
MICE(Meetings,Incentives,ConferencesandExhibitions)tourismisalsooneofthefastestgrowingintheglobaltourismindustry.Itlargely
caterstobusinesstravelers,mostlycorporates.Itcaterstovariousformsofbusinessmeetings,internationalconferencesandconventions,
eventsandexhibitions.HongKong,MalaysiaandDubaiarethetopdestinationsforMICEtourism.Indiaisalsopresentinthissegment.
Thisformoftourismcombinesannualbusinessmeetingsandconferenceswithpleasurableeventsfordelegatesandattendants.Indiacan
becompetitivewithotherMICEtourismdestinationsowingtoitsnaturalbeauty,richheritageandgeographicaldiversity.Oneofthe
requisitesforthisformoftourismisworldclassconventioncentres.TheAshok,NewDelhiHyderabadInternationalConventionCentre,
HyderabadandLeMeridian,CochinareforerunnersintheIndianMICEtourismindustry,facilitatingdomesticandInternationalbusiness
meetingsandconferences.
Someotherformsoftourismincludecruisetourism,beachtourism,pilgrimagetourism,monsoonmagic,luxurytourism.
MajortouristcircuitsofIndia
Indiahasseveraltouristdestinationsspreadacrossthelengthandbreadthofthecountry.However,giventhedistancebetweenvarious
destinations,touristcircuitshavebeencreatedconsideringtheneeds,choicesoftouristsaswellasconvenience.Somemajortourist
circuitsareshowninthetable1.6:

PerformanceoftheIndiantravelandtourismindustry
ThetourismbusinessinIndiacanbebroadlyclassifiedinto:inboundtourism,domestictourism,andoutboundtourism.Inboundtourism
Foreigntouristarrivalsinthecountryincreasedsteadilyfrom2.4millionin2002to5.3millionin2008.It,however,fellto5.1millionin
2009,recordingadeclineof3.3%.TheslowdowninIndiascoremarkets,theUS,EuropeandUK,traveladvisoriesissuedbycountries
againsttraveltoIndiafollowingtheterrorattacksinMumbai,andpostponementofholidaysbytravelersaffectedtouristinflowintothe
countryin2009nevertheless,theimpactontheIndianindustrywasmuchlessercomparedwithothercountries.

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Foreigntouristarrivalsareexpectedtoincreasein2010.InternationaleventstobeheldinIndiaandthegovernmentssincereeffortsto
promotethecountryasatouristdestinationarelikelytodriveforeigntouristarrivals.Internationaleventstobeheldduringtheyear
CommonwealthGames,ICCWorldCupCricketandFormula1areexpectedtoattractanumberofsportsfansacrosstheworldtoIndia.
Improvinginfrastructure,lowcostairlines,andimprovedroadconnectivityareexpectedtoaidtheincreaseintouristinflow.

Thetop10countriesaccountedforaround64%oftotaltouristarrivalsinthecountryduring2009.TheUSandtheUKtogetheraccounted
foraround30%oftouristarrivals.Around14%ofthetotaltouristarrivalsin2009werefromIndiasneighboringcountries,Bangladeshand
SriLanka.

Foreignexchangeearningsfromtourism
Thetravelandtourismindustrycontributessignificantlytothecountrysforeignexchangeearnings.Foreignexchangeearnings(FEE)from
tourismincreasedsteadilyfromUS$3.1bnin2002toUS$11.7bnin2008.Inlinewithlowertouristarrivals,FEEfell3.0%toUS$11.39bn
in2009.Inrupeeterms,earningsrose8.3%to`549.6bn.FEEinrupeetermshadrecordeddoubledigitgrowthineachoftheyears
during200308.
Domestictourism
Domestictravelersrecordedanalltimehighof650millionduring2009,15.5%higherthanthepreviousyear.Afterrising18%and14%
respectivelyin2006and2007,riseindomestictravelsloweddownto6.9%during2008.Theincreasein2009reflectsrecoveryin
sentimentinthelaterpartoftheyearandpreferencefordomesticvisitsoverinternationalvisits.AlthoughtheIndianeconomywasnotas
severelyaffectedbytheeconomicslowdownasothereconomies,Indianconsumersarecautiousandareeitherpostponingtheirtravel
plansoroptingforshorterdurationholidaysandtravellingwithinthecountry.IndianstravelwithinIndiamainlyforpilgrimage/religious
reasons,leisure,visitingfamilies/friendsandbusiness.

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Threestates,AndhraPradesh,UttarPradeshandTamilNadu,accountedforalmost63%ofdomestictouristvisitsduring2009.

Thedomestictourismissettoboominthecomingyearsalongwithemergingtrendsthatwillallowtravelerstoindulgemoreinexploring
Indiaandthevariedexperiencesitoffers.
Outboundtourism
Thetrendobservedinoutboundtourismduring2009wasnodifferentfromthatseenininboundanddomestictourism.Numberofoutbound
visitsgrewamarginal1.8%to11.1millionduring2009.Aftergrowing1517%during20042007,outboundvisitssloweddownto11.1%in
2008.Aboomingeconomy,higherdisposableincomes,higheraspirations,cheaperinternationaltravel,andbettertourismproducts
boostedoutboundtouristflow.

Emergingtrends
Withchangingtimesandglobalbusinessconditions,significantchangeshavebeenobservedintheIndiantravelandtourismindustry.

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Demandfornicheandcustomisedtourismproducts
Lifestylechangesandhigherdisposableincomeshaveresultedinshiftingtravelpreferencesandtravelersarelookingforoutofthebox
experiences.Consequently,travelserviceprovidersareofferingniche,customisedtourismproducts.Thishasledtoemergenceofniche
segmentssuchaswinetourism,popculturetourism,cruisetourism,wellnesstourism,monsoontourismetc.
Tourcompaniesarealsowillingtocustomiseproductsaspertravelerschoices/preferences.
Risingonlinesales
Onlinetravelsaleshaveincreaseddrasticallyinrecentyears.GreaterproliferationoftheInternet,growthinlowcostaircarriers,secure
paymentmechanisms,andcomingupoftheIndianrailwaysportalhaveledtoriseinonlinesalesinthetravelindustry.Anumberoflow
costcarriersoperateoncertainroutes,andhenceonlinebookingofferschoiceofaircarrierstocustomers.Airlineticketbooking
constitutesmorethan70%ofonlinetravelsales.However,ashiftisbeingseenfromairtononairsegmentsintheonlinetravelmarket.
ThisshiftisduetothenonairticketbookingsegmentgrowingswiftlywithlaunchoftheIndianRailwaysonlineportal(www.irctc.co.in)and
manyonlinetravelagenciesprovidingbustickets.IndianRailwayCateringandTourismCorporationisthelargesttravelwebsiteinthe
APACintermsoftransactionvolumes.AnumberofhotelsalsousetheInternetforbookingofrooms.

Travelportalsandhotelchainsusedtoprovide360degreevirtualtours,audiotoursandphotographs,andtextreviewstothetravelers.
Theyarenowmarketingthroughvideoreviewsandvideoblogs,eitherputupbythemselvesortravelersonthetravelagencyportalora
socialmediavideoplatform.
Onlinetravelmarketsalesareexpectedtogrowinthecomingyears.
Spontaneoustravel
Onlinetravelbookinghasbecomesimplerandeasier.Highpressurelifestylecoupledwithsimpleronlinetravelbookinghasledtotravelers
takingshort,randomtripsduringtheyear.Thishasgivenrisetotheconceptofspontaneoustravel.Realisingthepotentialinthis
segment,travelcompaniesalsoofferservicesforlastminutebookings.
Finitetravel
Anotheremergingconceptinthetravelindustryisfinitetravel.Anumberofpeopleseeplacesand/orspeciesthatareendangeredor
entailsomeformoftimerelatedenvironmentalriskornaturalphenomenon.
Needtodiversifybusinessmodel
Serviceprovidersarenowofferingattractivepricerangesforservicesontheirwebsitesthishasledtoincreaseinonlinetransactions.
Consequently,themarketsizefortravelagentshasbeennarrowing.Giventhischange,travelagentsandtouroperatorsnowneedto
diversifytheirbusinessmodelsandadopttheroleofatraveladvisor.Travelcompaniesshouldalsostartofferingvaluableservicestoend
customersforhasslefreetravel.

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