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The over 50s, and more specifically the over 65s (let's call them Gen S), are accounting for an increasingly significant portion of leisure travellers in India. According to estimates, from 1.3 million outbound Gen S travellers from India in 2011, the number is expected to grow seven-fold to 7.3 million by 2030.
India scores over its neighbours in the Asia Pacific region when it comes to senior citizens opting for leisure travel outside the country. Research shows that compared to a 32 per cent increase expected in outbound Gen S travellers during 2011-2030 in Japan, a 71 per cent rise in Australia and 149 per cent rise in South Korea, in India the numbers will soar 461 per cent to 7.3 million by 2030. India comes second only to China, which will see a 641 per cent increase in the number of outbound Gen S travellers, according to a recent report 'Shaping the Future of Travel in Asia Pacific' by Frost & Sullivan and Amadeus.
According to travel operators, the major drivers behind this surge in senior citizen leisure travellers is a combination of rise in disposable income, independent children most of whom have migrated, thus reducing the dependency ratio, rising aspirations, as well as having more free time. Another factor inducing travel by the Gen S outside the country is visiting friends or relatives. As Ankur Bhatia, director, Amadeus India, mentions in the report, "100 million people are living abroad from India, so visiting family is still critical."
Mathew Cherian, chief executive officer, HelpAge India, feels the seven-fold increase is realistic. "By 2020, nearly 4.2 million elderly people in the country will have surplus cash. Add another 10 years to that and at the same rate of growth of the economy and of the elderly population, 7.3 million looks like a realistic number," he says.
According to the 'State of India: Elderly 2014' report released by HelpAge India last week, from a current crop of 100 million people 60 years and above, India, which is widely perceived as a 'young' nation with half its population of 1.25 billion people under 25 years of age, will see a more than three-fold rise in the numbers of the elderly to 324 million by 2050, constituting 20 per cent of the population.
Cherian feels that as the Indian economy matures, leisure travel by the elderly, which is primarily a western phenomenon, is expected to catch up in India. In Australia and Japan the over-65s now account for more than 20 per cent of all leisure travellers. The Frost & Sullivan and Amadeus report adds, "Overall, there will be an increase of 250 million over-65s by 2030 across the seven countries we have researched, with most of the increase coming from China and India. We estimate this will double the number of over-65 leisure travellers to Asia Pacific destinations by 2030."
This presents a big opportunity for tour operators across the country. Thomas Cook has come up with a package called 'Silver Breaks' to address this growing segment and says the demand is not just restricted to metros but to tier II cities like Ahmedabad, Pune, Chandigarh and Kochi. Cox & Kings has something called a 'Young@Heart Club' and has off late witnessed a 20 per cent average growth in this segment of travellers.
Jatinder Paul Singh, senior vice-president and head, leisure travel, outbound, Thomas Cook India, says, "While much has been made of the young Indian travel segment, in the last three years over 27 per cent of our existing holiday business constituted senior travellers (60 years and above)."
Domestic tourism is likely to see better traction due to affordability. Singh adds, "The domestic segment is expected to increase by a minimum of the same 7x multiple and on a much larger base." Manish Sharma, owner of Akshar Travels and also chairman of the Gujarat Tourism Development Society (GTDS), says more than 35 per cent of this clientele across Gujarat, a community of avid travellers, are Gen S and this business is clocking a 25 per cent average growth rate over the last five years.
A dip-stick survey across different cities reinforces the trend. Even state governments seem to have realised the significance of Gen S travellers. Recently the Rajasthan government announced plans to restart a free pilgrimage train for senior citizens. The state government plans to run trains for about 10,000 pilgrims, only for senior citizens.
Sarabjit Singh, vice-chairman, Federation of Association in Indian Tourism & Hospitality or FAITH, which has been formed by representatives of the top 10 national tourism industry associations, says when it comes to luxury travel, the Gen S traveller takes the cake. "More than 80 per cent of the clientele at my agency (a Delhi-based high-end tourism management firm) comprises travellers that are 55 years and above. They want to experience cruises, explore exotic locations like the Arctic, travel in Rolls Royces within India. It is only natural that the Gen S can afford that."
Statistics supports his claim. David Brett, president, Amadeus Asia Pacific says, "If the current growth track continues, by 2050 Asia's per capita income could rise 600 per cent in purchasing power parity (PPP), matching Europe and other Western markets."
