Footloose and fancy-free

TRENDS 2006/ 2007

THE INDIAN TRAVELLER: More frequent travel, an increasing base of budget travellers and an explosion of those seeking newer thrills.

It is becoming hard to keep track of the new countries tapping India's growing outbound market. In 2006, new entrants like Jamaica, Germany and Indonesia could be seen hardselling their destinations to footloose Indians "" and quite successfully.

According to the World Travel and Tourism Council (WTTC), the amount spent on personal travel is estimated at $21.4 billion or 3.8 per cent of total personal consumption in year 2006. This is expected to touch $45 billion or 4 per cent of total consumption.

The outlook of Indians vis-a-vis travel has undergone a sea-change over the last few years. Stingy travellers who laboured hard to plan their one holiday in the whole year are now out five weekends out of 10. "The thrust has now shifted from saving to spending," explains Rati Shroff, managing director, Select Vacations-TUI.

Upmarket clients are more selective and demand niche products. "They are more experienced, willing to experiment and are looking at holidays centred around an activity," she says.

So bungee jumping, trekking, skiing on a holiday is no more a dream for them. Also in are self-drives or cult Harley trips in Australia and New Zealand.

Surprisingly, the highest growth is in the budget segment and not the kind that backpackers do. Travel is now much more sophisticated, thanks to lower airfares and e-bookings. And yes, the Internet has now emerged as the new powersutra.

On the budget side, it's one outbound holiday and one domestic in a year. Shroff though concedes value-for-money remains firmly imbeded in the Indian psyche.

Also, more and more second time travellers are looking at exploring destinations at length. So, it could be the same Thailand or Malaysia but now the focus is on exploring the destination more intensively. This segment is also taking full advantage of the travel loans that are available in the market.

Karan Anand, director, Cox & Kings, says that though group business is growing routinely for them, what is more encouraging is the growth in individual travellers and small family groups who are also willing to spend more on quality and experiment with new things. Cox & Kings has seen a growth in travel to destinations like Egypt, Greece, Turkey and China.

According to him, people are especially keen to explore China. US is making a comeback as a big-time tourist destination. Cox & Kings claims to have seen a 30 per cent growth till now over the last year and says that people are spending 15-17 per cent more on both their holiday packages and at the destination.

But what is coming as a surprise is that shopping is no more the biggest motivator for spending for Indians. Instead, Indians are now spending on newer experiences in destinations.

"The really high-end travellers are more savvy and understanding," says Nikhil Kumar, head-outbound tourism, A&K India. And they are willing to spend anything between $500-2,500 a night on a holiday. In this segment, says Kumar, there is usually a new destination every year which is hot in the circle. So, if you haven't been there, you are not clued in! If it was Koh Samui in 2005, it's a mix of Hong Kong, Maldives, Bangkok, and Indonesia in 2006.

Incidentally, this segment travels in small groups and is not too interested in sightseeing (they have done it all, earlier). They party, eat out and shop. "Plonk at a villa in Florence for 4-5 nights, maybe zip around in a Ferrari (for $500-800 per day)," he says. These guys are willing to pay for quality and comforts.

On the domestic front, short breaks and weekend getaways are in. It is not just Goa or the hills anymore.

"Each state is promoting their destinations for domestic tourists. This coupled with better roads and cars is pushing people to get out for weekend breaks," says Rajji Rai, vice president, Travel Agents Association of India.

On the home front, people are running away to Ananda for a break; then, there is Matheran from Mumbai, the Konkan Coast from Bangalore, and Mahabalipuram from Chennai. The list, it seems, is never ending.