With Europe losing market share, inbound tour operators need to look to new markets to attract visitors…
With Europe losing market share, inbound tour operators need to look to new markets to attract visitors. India is the world’s largest democracy and has historic ties to Europe. It has a rapidly growing, free-market economy, with GDP increasing so fast that it is set to double over the next decade.
A report commissioned by the European Tour Operators Association (ETOA), reinforces the view that India is an exciting new origin market for visitors to Europe.
Many of the fundamentals of this market are promising. The population is young. The stock market is booming (in October 2005 it is nearly three times its level of 2003). The software industry is flourishing, as are call centres and other branches of the service economy that have enabled India to become the “outsource” capital of the English-speaking world. English is the standard language for commerce, communication, education, politics and law and an Indian who can afford to travel to Europe is able to do so.
Relevant highlights from the report include the following statistics:
- Over the past 10 years, India has accounted for just under one-fifth of Asian growth and about 10% of world growth.
- Growth is expected to be 7.2% in 2005 and 6.7% in 2006
- There are 61,000 US$ millionaires in India
- In the 1990s, departure of Indians abroad nearly doubled, from 1.9m to 3.9m
- From 2000 to 2005 seat capacity in direct air services from India to Europe increased by more than 250% from 1.7m to 4.3m and direct weekly flights from India to Europe increased by 135% from 99 to 232
- Travel is a status symbol in India and a trip to Europe carries with it considerable prestige
- Competition between the larger travel agencies is fierce, with aggressive marketing and tactical promotions
- 38 million people have access to the Internet and that is set to grow. The internet is one of the few deregulated areas in a heavily regulated market
- The UK, Switzerland and Italy are the most popular destinations for Indian tourists. In 2004, Britain received 256,000 visits from India – an increase of nearly 60,000 (31%) on 2003.
Tom Jenkins, Executive Director, ETOA said: “There is a new cultural connection between India and Europe that reinforces the institutional legacy of long standing European influence. Of all the Asian economies, India has the closest identification with Europe. This is particularly the case among the elite who are the target market for European vacations. It is also true for those millions of Indians who have relatives based in Europe, for whom Europe is a second home.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
