It’s been four years since Robert Graff, vice president of marketing, the Papillon Group, attended SATTE (the South Asia Travel & Tourism Exchange) Jan. 29-31 It is the most important travel trade show in India. Things were considerably different than they were in 2011 in New Delhi, he said, pointing first to the unifying lead role played by Brand USA, which did not yet have a marketing plan or a budget sufficient to send staff to major international trade shows.
But there was more than that. Aside from a wealth of data already made available by the U.S. National Travel and Tourism Office (NTTO) that details the way Indian travelers plan, undertake their trips, what they do when they are in the U.S., and what distinguishes them from visitors from other Asian markets (see below), there was also what Graff describes as a certain zeitgeist at this year’s SATTE.
“The timing could not have been better,” he said. “It was right on the heels of a presidential visit (President Obama visited the country Jan. 25-27) and—get this—there is a newly appointed U.S. Ambassador who is Indian. (One-time State Department official Richard Verma, whose parents are from India, and who grew up in Pennsylvania, presented his ambassadorial credentials to the Indian government on Jan. 16.) Add a big middle class, with strong aspirations to travel, specifically to USA … and, frankly, I have every reason to be very bullish on India. This country could be our travel industry’s dark horse candidate for a top market.” (Below: Robert Graff of the Papillon group, left, with U.S. Ambassador to India Richard Verna, during SATTE)
Four years ago, those who attended SATTE heard complains about the long time—sometimes as long as two months—it took to get interviews for visas to go to the U.S. And there were complaints, as well, about the limited air service from India to the U.S. In the year following the 2011 SATTE, the U.S. increased the number of locations, as well as the number of interview officers, at which it processed visa applications. As a result, visa wait times have been greatly reduced; last week, for instance, the average wait time at New Delhi was 5 days. For current wait times at all locations in India, visit: http://travel.state.gov/content/visas/english/general/wait-times.html
Also, carriers from other markets have developed increased capacity to the U.S. through new connecting flights to Asian, Middle East and through code sharing and partnership alliances. Graff pointed out that, late last year, Air India joined the Star Alliance (it includes United Airlines), which is located hubs in Mumbai and New Delhi. It already has a hub at Heathrow Airport in London. “I think the Star Alliance move to include air India is a good sign,” said Graff.
India Insights—Random Info Bytes on a Top 10 Overseas Source Market
The potential international travel market in India is enormous. One report indicated that, in 2012, there were 50 million passport holders in India, with the number projected then to reach 100 million by 2022. It might well happen before then—last year alone, India’s government issued 8,486,000 passports.
When They Travel: Asked at an educational seminar why May is the month in which more people travel to the U.S. than in any other month, Camille Richardson, principal commercial officer for the U.S. Department of Commerce in Mumbai, India, told Inbound, “May is probably the worst month to be in India,” said Richardson. “It’s hot, it’s humid, it’s pre-monsoon muggy weather. So, that tends to be the time when people take vacations.” (We checked and found that, in May, the average maximum and minimum temperatures for the month in Mumbai are 91.4⁰ F and 78.8⁰ F.)
When Do Asian & Indian Travelers Visit?
| Month | Asian Travelers* | Indian Travelers* |
|---|---|---|
| May | - - | 13.90% |
| June | 8.70% | 12.20% |
| July | 10.00% | 10.20% |
| August | 11.30% | 10.40% |
| September | 9.10% | - - |
| TOP FOUR MONTHS | 39.20% | 45.70% |
SOURCE: National Travel and Tourism Office (NTTO), International Trade Administration (ITA), U.S. Dept. of Commerce (June 2014)* Market shares are based upon three-year averages
Principal Holiday Seasons in India
| Season | Periods for Travel |
|---|---|
| Summer Holidays | Six weeks school vacation, May-July |
| Fall Holidays | Diwali/Dusshera2 weeks in Oct./Nov. |
| Winter Holidays | 2 weeks in December |
Where They Arrive—No Matter the Direction, India is Definitely Long-Haul: Unlike other key overseas source markets in Asia, India, because of its geographical situation, is closer to New York City than Los Angeles. For example:
Mumbai to the U.S.
| Route | Distance |
|---|---|
| Mumbai-NYC | 7,786 miles |
| Mumbai-Los Angeles | 8,688 miles |
Source: www.distance.to
The above may help to explain why the top Gateway to the U.S. for travelers from India is the New York Area (JFK International Airport in New York City, and Newark’s Liberty International Airport, which is slightly more than 31 miles away from the former), receives nearly 30 percent of all Indian visitors to the U.S. The preferences are substantially different than they are for the rest of Asia.
Asian & Indian Ports of Entry—2013
| Asia | India |
|---|---|
| HNL (20%) | JFK (17%) |
| LAX (13%) | EWR (12%) |
| GUM (13%) | ORD (11%) |
| JFK (10%) | SFO (10%) |
| SFO (10%) | Blaine, Wash. (7%) |
| TOP FIVE: 45% | TOP FIVE: 40% |
SOURCE: NTTO, ITA, U.S. Dept. of Commerce (June 2014)
How They Plan Their Trips—Planning Times are Shorter:
Sources of Information for Planning Travel
And Trip Decision Times
| Information Sources | Asian Travelers to U.S. in 2013 | Indian Travelers to U.S. in 2013 |
|---|---|---|
| Airline | 33% | 41% |
| Travel Agency Office | 30% | 22% |
| Online Travel Agency | 25% | 22% |
| Personal Recommendation | 20% | 23% |
| Corporate Travel Department | 14% | 35% |
| Travel Guides | 11% | 6% |
| Tour Operators | 9% | 8% |
| Advance Trip Decision Time | 68 days | 46 days |
| Advance Airline Tix Reservation | 47 days | 35 days |
Leisure is not the Most Important Purpose for Visiting:
Selected Asian and Indian Travelers’
Key Characteristics 2013
| Characteristics | Asian Travelers to U.S. in 2013 | Indian Travelers to U.S. in 2013 |
|---|---|---|
| Use of Packages | 34% | 6% |
| First International Trip | 31% | 28% |
| Main PurposeLeisure | 51% | 12% |
| Main PurposeBusiness | 16% | 39% |
| Main PurposeVFR | 16% | 30% |
| Nights in U.S. (mean/median) | 20/6 | 42/20 |
| % Staying in Hotel/Motel | 85% | 71% |
| Number of Destinations Visited | 1.6 | 1.9 |
SOURCE: NTTO, ITA, U.S. Dept. of Commerce (June 2014)
Top U.S. States/Territories Visited by Indian Travelers
(2008 vs. 2013)
| States/Territories | 2008 | 2013 | 2008-2013 | |
|---|---|---|---|---|
| Visited | (%) | (%) | Percentage Pt. Change | |
| New York | 31% | 31% | 0 percentage points | |
| California | 30% | 26% | -4 percentage points | |
| New Jersey | 17% | 12% | -5 percentage points | |
| Texas | 13% | 11% | -2 percentage points | |
| Illinois | 12% | 9% | -3 percentage points | |
| Florida | 10% | 8% | -2 percentage points | |
| Nevada | 7% | 7% | 0 percentage points | |
| Massachusetts | 7% | 7% | 0 percentage points | |
| Pennsylvania | 6% | 6% | 0 percentage points | |
| Georgia | 6% | 5% | -1 percentage points |
SOURCE: NTTO, ITA, U.S. Dept. of Commerce (June 2014)
Top U.S. Cities Visited by Indian Travelers
(2008 vs. 2013)
| Cities Visited | 2008 | 2013 | 2008-2013 |
|---|---|---|---|
| (%) | (%) | Percentage Pt. Change | |
| NYC | 28% | 28% | 0 percentage points |
| Los Angeles | 12% | 10% | -2 percentage points |
| Chicago | 12% | 9% | -3 percentage points |
| San Francisco | 14% | 9% | -5 percentage points |
| Washington, D.C. | 10% | 8% | -2 percentage points |
| Las Vegas | 7% | 7% | 0 percentage points |
| Boston | 6% | 6% | 0 percentage points |
| San Jose | 6% | 6% | 0 percentage points |
| Houston | 6% | 5% | -1 percentage points |
| Buffalo | 4% | 5% | -1 percentage points |
| Atlanta | 6% | 4% | -2 percentage points |
SOURCE: NTTO, ITA, U.S. Dept. of Commerce (June 2014)
Most likely, as the tables above suggest, they’ll be arriving at all-too-familiar gateways and will not be likely to visit second- and third-tier destinations or attractions, unless the latter are part of a pre-formed package.
TRENDS FROM INDIA: From the presentations at the webinar and from Inbound’s follow-up inquiries, here are some things, places and sources to be aware of if one is contemplating a foray in the India market.
- Watch for an increased traveler focus on leisure product—MICE, “Bollywood” and “Space Camp” (high-tech attractions and destinations) travel.
- Look for “Tier 2” cities to begin performing as the U.S. Dept. of Commerce promotes its ABC (American Business Corners) program. These cities, which “are teeming with commercial opportunities,” include: Madurai, Coimbatore, Kochi, Trivandrum, Mangalore, Vizag, Guwahati, Bhubaneswar, Patna, Jaipur, Chandigarh, Surat and Indore.
- Still, the primary cities for product promotion will remain: New Delhi, Mumbai, Chennai and Bangalore.
- The student market is a strong segment—there were almost 103,000 students from India in the U.S. in the 2013-14 school year, according to the International Institute for Education.
- For the latest news on the travel trade in India, check these sites on a regular basis: www.ttgasia.com, www.travelbizmonitor.com and www.eturbonews.com.
The U.S. Embassy and Consulates in India are located at the following addresses:
The U.S. Embassy in New Delhi
Shanti Path, Chanakya Puri 110021
Telephone +91-11-2419-8000
Fax +91-11-2419-8587
Website: http://newdelhi.usembassy.gov/
The U.S. Consulate General in Mumbai
C-49, G-Block, Bandra Kurla Complex, Bandra East, Mumbai 400051
Phone: (22) 2672-4000
Website: http://mumbai.usconsulate.gov/
The U.S. Consulate General in Chennai
220 Anna Salai, Gemini Circle, 600006
Telephone +91-44-2857-4000
Fax: +91-44-2811-2027
Website: http://chennai.usembassy.gov/
The U.S. Consulate General in Kolkata
5/1 Ho Chi Minh Sarani, 700071
Telephone +91-33-3984-2400
Fax +91-33-2282-2335
Website: http://kolkata.usconsulate.gov/
The U.S. Consulate General in Hyderabad
Paigah Palace, 1-8-323, Chiran Fort Lane, Begumpet, Secunderabad 500 003
Telephone: +91-40-4033-8300
Website: http://hyderabad.usconsulate.gov/
Contacts for Further Information:
- Camille Richardson, principal commercial officer, U.S. Commercial Service, Mumbai— office.mumbai@trade.gov
- Manoj Gursahani, president, Visit USA Committee India (also chairman of TravelMartIndia Pvt. Ltd. and co-founder of Travel Agents Federation of India)—manaj@travelmartindia.com
- Visit USA Committee, India—www.vusa.in
- Sheema Vohra, managing director, Sartha Global Marketing, India (Brand USA’s in-country rep)—svohra@sarthaglobal.com
- Sunil Puri, executive director, Sartha Global Marketing, India—spuri@sarthaglobal.com
- Vidheesh Tyag, vice president, Sartha Global Marketing, India—vtyagi@sarthaglobal.com
- Ron Erdmann, senior analyst, National Travel & Tourism Office (NTTO), International Trade Administration, U.S. Department of Commerce ron.erdmann@trade.gov
Finally, for those new to any market, work through a receptive operator. To find a receptive tour operator close to you, visit www.thetouroperator.com, and click on the RECEPTIVE FINDER link at the top of the screen.
