Promoting Australia in the India Market

April 2009 Darwin, Australia

Contents

India Overview: India Growing Traveling Potential of an Indian Outbound tourism trend Rising potential & growth estimates Segments of interests to Australia SWOT Analysis for Australia Awareness Generation Promoting Australia - The Way Forward

Kuoni Travel Group, India

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India Growing

India has been climbing rapidly the world rankings for Outbound Tourism. India's economy grew an average of 8.1 percent annually in the past three years. India ranks 8th in the world in terms of the number of billionaires. Super Rich Indians: Over 1.6 million households earning over Rs. 4.5 Mn (AUD 130,000) or more per year. Luxury/ Premium market potential of Rs. 650 Bn (AUD 18.6 bn). Affluent Indians have shown an increase in their leisure travel :
No. of Indians taking one or more leisure trips in a year increasing by 16% No. of Indians taking three or more leisure trips increasing by 200%

Ownership of mobile phones with Internet access grew from 12.3% to 23.7% Ownership of luxury goods saw an increase from 15% to 19%
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Traveling potential of an Indian is remarkable

India has been climbing rapidly the world rankings for Outbound Tourism. The World Travel and Tourism Council (WTTC) estimates a 4.5 per cent per annum increase in the total amount of travel and tourism Indians are also amongst the high spenders on shopping, prefer luxurious stay & visit more attractions than other nationalities Perfect opportunity to promote exotic/ new places that offer varied experiences Evolved Indian travellers are willing to experiment with niche products such as golf, wine and wellness tourism is gaining importance leading to a rise in experiential tourism. Emergence of niche products like adventure sports, luxury holidays, Spa & Wellness retreats, wildlife vacations amongst others.

Kuoni Travel Group, India

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India: Rising Potential Annual growth forecast 2009 2027

India's GDP Forecast (2009 27) is among the highest in the world Indians are also amongst the high spenders on shopping, prefer luxurious stay & visit more attractions than other nationalities
8 7 6

Percentage

5 4 3 2 1 0

Southwest Asia

Southeast Asia

Central America

South America

Northeast Asia

World*

China

India

CIS

Middle East

Oceania

North America

Europe

Africa

Source: Global Insight

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Kuoni Travel Group, India

Inbound, Outbound and Domestic Travel The Potential is Immense

380 mn domestic trips are undertaken every year Outbound travel crossed 10 mn travelers in 2008 Outbound travel industry growing at a CAGR of 15.5% Outbound likely to reach 20 mn by 2015

Kuoni Travel Group, India

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Indians visiting Australia

The year 2008 witnessed a total of 116,000 Indians visitors, an increase of 22% over 95,200 visitors in 2007. With these numbers Australia has crossed the 100,000 mark for Indian visitors for the first time. Arrivals from India are expected to perform well, with an average annual growth rate of 17.1% through to the year 2017.
Source: Tourism Australia

There were 458,300 visitors during January 2009, an increase of 3 per cent relative to the same month of the previous year. There were 8,600 visitors from India during January 2009, an increase of 14 per cent relative to the same month of the previous year.
Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

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India: Outbound tourism trend

India Outbound: Top10 recently visited destinations

Rank Destination Last visited % Rank

India Outbound: Top10 Aspirational destination

Destination Weighted scores

1 2 3 4 5 6 7 8 9 10

Singapore Dubai & Middle East Malaysia Australia United Kingdom USA: New York & East Coast Sri Lanka Switzerland Thailand USA: California & West Coast

17% 14% 12% 7% 6% 6% 4% 3% 3% 3%

1 2 3 4 5 6 7 8 9 10

USA (New York/ Other US) Singapore UK (London/ Scotland) Switzerland Australia Malaysia Europe Mauritius/Seychelles Dubai Thailand

2044 1946 1801 1278 1242 1128 957 807 639 619

Australia ranks amongst the high aspirational destination for Indian outbound travelers
Source: Kuoni Travel Report India - 2007
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Segments of interest to Australia

Leisure First-time travelers who like to travel in groups Adventure Enthusiasts Honeymooners Looking for value for money Evolved FIT travelers who prefer to do things their way Luxury seekers DINKS (Double Income No Kids) VFR (visiting friends & relatives) Regular overseas traveler Keen to explore - open to new experiences Spends more time in each city

Sports Sport packages for Indian sport enthusiasts e.g. cricket & tennis
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Segments of interest to Australia

Education - Recognized well known universities attracts Indian students MICE Meetings of senior corporate executives - Well travelled individuals - Extend stay after corporate trips for leisure holidays - Not price sensitive Dealer Incentive groups - Like-minded business entrepreneur - Sponsored trip therefore remain in set itinerary - Price sensitive Conference and Exhibitions visitors - Focused group - Add in a day or two for sightseeing - Price sensitive - Bollywood
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SWOT Analysis - Australia

Strengths Works in both Summer and Winter peaks Language familiarity Sport & leisure activities Cuisine suitable to Indian palate Good Sightseeing Due to right-hand drive Indians can get around on their own

Weakness Airline seat capacity Travel time high - Inconvenience of connecting flights High cost of holiday (Equivalent to a multi-country European holiday)

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SWOT Analysis - Australia

Opportunities Self-drive MICE Honeymoons Sport packages for cricket enthusiasts Recognized educational universities cater to Indian students

Threat Fast developing destinations like Africa, Europe, Asia & New Zealand investing heavily in India to lure the Indian traveler

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Various destinations promoted by SOTC

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Awareness generation

Mass media Print Advertising PR Initiatives: Media coverage through press release/ advertorials Direct mailers Emailers SMS Campaign

Others Travel Agents familiarisation programs Tie-ups with Tour Operators Corporates who have annual incentive group movement Strategic alliances lifestyle brand, etc. Word of mouth appreciation leading to brand loyalty and increase in retaining customers and creating new customers

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Promoting Australia- The Way Forward

Promote various new destinations & attractions within Australia e.g. Melbourne Waterfront City, Noosa Beach, Tasmania etc. for first time & second time travelers Highlight the exclusives in the itinerary that are designed specially for the traveler:

Wetland & Crocodile Farm Tour, Tandem Sky Dive, Kuranda Skyrail in Cairns Australian Outback Spectacular, Q1 Observatory Deck, Tjapukai by Night in Cairns Tram Tour, Visit the Phillip Island Nature Park & Sovereign Hill Jet Cruise, Sky Walk and Seaplane ride in Sydney The Kangaroo Island, A Tour of Barossa, Murray River Highlights, Swimming with Dolphins in Adelaide

Holidays to Gold Coast & Sydney with an overnight at Coffs Harbour Stay at Tangalooma, Blue Mountains, etc.

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Promoting Australia- The Way Forward

Attract decision makers (buyers) for Dreamtime 2009 to take place in Sydney. Dreamtime is the only event that provides influential decision makers for high yielding corporate meeting and incentive business with the opportunity to meet face-to-face with tourism businesses and experience Australia first-hand at one event Explore other markets Tier II cities in the country that are emerging markets with huge potential Not shift the focus away from the core customer base Become more visible to the customers by maintaining the marketing and advertising expenditure Develop a positioning & communication strategy to capture customer attention

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Promoting Australia - The Way Forward

Remain true to the customers needs and make sure to continue to sell more of what the customer wants Continue to invest in the best growth opportunities Create innovative value added travel deals Know the needs of the customer so that you can transform your message accordingly Increase the travel business by working as a team with the travel fraternity Promote activities that Indians enjoy in Australia that include visiting the beach, visiting wildlife parks, zoos & aquariums, visiting National and Botanical parks, theme parks, chartering boat, cruises and ferries, visiting history and heritage buildings.

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Initiatives undertaken by Kuoni India to promote Australia

Kuoni India: First to market The first Indian tour operator to introduce new destinations/ attractions such as Blue Mountains, Port Stephens, Hunter Valley, Great Ocean Road, Philip Island, Hayman & Hamilton Island, Tangalooma, Port Douglas, Canberra & Adelaide, resulting in an increase in the length of stay and spend per person The only tour operator to promote premium holidays to Australia incl. accommodation at 4 & 5-star category hotels only, with added sightseeing & inclusions in the tour such as: ATV ride Hot air ballooning with champagne breakfast Sea Plane ride Limousine transfers to the Conrad Zingara Show The first Indian tour operator to launch luxury group tours and private chauffeur driven van tours to Australia

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About Kuoni India

Based in Switzerland, Kuoni Group is one of the largest travel company in the world Turnover: CHF 4.8 billion Presence in over 40 countries No. 1 in Premium Segment Recipient of the Worlds Leading Tour Operator award for the 11 years in a row, at the World Travel Awards, held on the Turks & Caicos Islands in the Caribbean, in Dec 2008

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Kuoni Travel Group, India

Kuoni Travel Group, India is the largest travel company in India & a 100% subsidiary of the Swiss-based Kuoni Group. Turnover of INR 22 bn (USD 450 Mn) Staff strength of 2,900 347 offices 8 million customers Reputed brands of Kuoni Travel Group, India include SOTC, Kuoni Holidays, Sita, HRG Sita, VFS Global & Kuoni Destination Management Each brand an undisputed leader in the respective travel segment Dominant presence in all segment of travel: Inbound/ Outbound, Groups (GIT)/ Customised (FIT), India/ NRI, Mass Affluent/ Luxury, Domestic/ International, Leisure/ Corporate (MICE), Business Travel/ Visa Services

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Kuoni India: Unmatched distribution network

B2C Markets
Group Tours Customised Packages KUONI Luxury Holidays

B2B Markets
Corporate Tours MICE Trade Fair Tours

175 Sales Outlets and 3500 premium travel agents across India

12 Offices and 800 premium Corporate across India

SOTC is the market leader with over 60 per cent market share in the outbound leisure market. Its distribution network comprises over 175 sales outlets and 3,500 premium travel agents retailing the SOTC range of products across India.

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Thank You

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