ICICI Lombard Travel Trends. September 25, 2014

Transcription

1 ICICI Lombard Travel Trends September 25,

2 Study Specifics Objectives Target Group Spilt: Gender & Age To understand the: Changing pattern in Leisure Travel - Travel preference and trends past 3-5 yrs OVERSEAS TRAVEL Overseas leisure travel perception Overseas Travel insurance - Purchase behaviour, awareness, usage DOMESTIC TRAVEL Domestic leisure travel perception Domestic Travel insurance - Purchase behaviour, awareness, usage SEC A Male and Female Aged 25 and above Who have travelled in last 1 yr (domestic/ overseas) by Air Salaried, Business, Senior Above 60 yrs. Travelled to Bhutan / China / Dubai / Malaysia / Maldives / Mauritius / Myanmar / Nepal / Singapore / Sri Lanka / Thailand / HongKong Male : 81% Female : 19% Age Split Achieved: 25-35years :40% 36-45years :34% 46-55years :18% Above 55 years :8% Fieldwork Period September

3 Sample Size City Sample Achieved Mumbai 240 Kolkata 204 Hyderabad 240 Ahmedabad 190 Chandigarh 189 Total

4 Findings 4

5 Major ASEAN countries visited in last 1 year Respondents didn t travel to China, Bhutan, Maldives, Mauritius and Myanmar 12% 8% 28% Dubai / UAE Nepal Hong Kong 3 % 27% Thailand Malaysia 13% 33% Singapore 5

6 Domestic locations visited by Air in last 1 year Domestic travel by Air primarily to Metro cities 5% Kashmir 3% 24% New Delhi 2% Darjeeling Jaipur 7% Varanasi 2% 22% Mumbai 2% Hyderabad Kolkata 27% Goa 14% Bengaluru 5% Chennai 3%Cochin 6

7 Reasons for preferring Overseas locations Pleasant climate, cultural/ heritage diversity and more peaceful/ less crowd Top Response All Mumbai Kolkata Hyderabad Pleasant climate Offer cultural/heritage diversity More peaceful locations/less crowded Good locations to take Family vacation Offers scenic escapades/relaxing Exposure to different lifestyles More affordable compared to past Ability to have New experiences Family gatherings Easy financial options to fund OVERSEAS travel Easy connectivity due to globalization Almost similar cost as domestic 7 travel : 728 Base : All those travelled overseas Offer cultural/heritage diversity 52% More affordable compared to past 52% Pleasant climate 49% Ahmedabad More peaceful locations/ less crowded 61% Pleasant climate 58% Good locations to take Family vacation 52% Pleasant climate 68% Good locations to take Family vacation 64% Ability to have New experiences 64% Chandigarh More peaceful locations/less crowded 54% Exposure to different lifestyles 51% Pleasant climate 47% Ability to have New experiences 61% Offer cultural/heritage diversity 61% Pleasant climate 60% Base All : 161 Base All : 129 Base All : 165 Base All : 131 Base All : 142

8 Changing pattern in leisure travel 8

9 Leisure Travel Frequency Overseas / Domestic Only 18% respondents travel abroad more than once a year Higher frequency of domestic travel - 43% respondents made more than one domestic trip in a year Overseas Domestic Base All : 460 Base All : 728 Once in a year 2 to 3 times a year 4 to 5 times a year 6 to 10 times a year Once in a year 2 to 3 times a year 4 to 5 times a year 6 to 10 times a year Base : All those travelled overseas Base : All those travelled domestic 9

10 Overseas Leisure Travel Frequency Frequency of international travel for smaller cities in line with metros All Mumbai Kolkata Hyderabad 0% 7% 1% 92% 2% 1% 19% 78% 0% 7% 30% 63% Base All : 161 Base All : 129 Base All : 165 Ahmedabad Chandigarh Base All : 728 Once in a year 2 to 3 times a year 0% 1% 13% 0% 0% 13% 4 to 5 times a year 86% 87% 6 to 10 times a year Base : All those travelled overseas Top Response Base All : 131 Base All :

11 Domestic Leisure Travel Frequency Smaller cities witnessing frequent domestic travels in line with metros All Mumbai Kolkata Hyderabad Base All : 95 Base All : 93 Base All : 94 Base All : 460 Ahmedabad Chandigarh Once in a year 2 to 3 times a year 4 to 5 times a year 6 to 10 times a year Base : All those travelled domestic 11 Top Response Base All : 71 Base All : 107

12 Change in number of Overseas/ Domestic Trips over past 3-5 yrs More travelers making frequent domestic trips compared to overseas tours Top Response Overseas Domestic The number of trips has increased The number of trips has decreased The number of trips has remained unchanged The number of trips has increased The number of trips has decreased The number of trips has remained unchanged Base : All those travelled overseas: 728 Base : All those travelled domestic:460 12

13 Change in number of Overseas Trips over past 3-5 yrs Smaller cities on par with metros on availing frequent international trips All Mumbai Kolkata Hyderabad 19% 13% 9% 28% 62% 19% 78% 68% 4% Base All : 161 Base All : 129 Base All : 165 Base All : 728 Ahmedabad Chandigarh The number of trips has increased 27% The number of trips has decreased The number of trips has remained unchanged 61% 12% Base All : 142 Base : All those travelled overseas 13 Top Response Base All : 131

14 Change in number of Domestic Trips over past 3-5 yrs Cities like Chandigarh, Hyderabad witnessing more frequent domestic trips All Mumbai Kolkata Hyderabad 17% 26% 71% 12% 66% 8% 52% 46% 2% Base All : 95 Base All : 93 Base All : 94 Base All : 460 Ahmedabad Chandigarh The number of trips has increased The number of trips has decreased 17% 3% 31% The number of trips has remained unchanged 80% 68% 1% Base All : 107 Base : All those travelled domestic 14 Top Responses Base All : 71

15 Reasons for increase in leisure trips Overseas/ Domestic Short duration trips, Off-season discounts driving international trips Unplanned travel driving more frequent domestic outings Top Responses Overseas Domestic My weekend/short duration trips has increased Unplanned travel has increased 57 My off season travel has increased due to low travel fares Unplanned travel has increased Common holidays of all the family members are few - hence travel during these occasions My weekend/short duration trips has increased Common holidays of all the family members are few - hence travel during these occasions I do not get adequate long vacation hence I go for short duration trips My off season travel has increased due to low travel fares Base : All those coded increase in :128 domestic trips Base : All those coded increase in: 158 overseas trips 15

16 Travel Duration Overseas/ Domestic Longer duration trips preferred more in case of domestic travel Overseas Domestic 'Upto 3 days '4-7 days '8-10 days More than 10 Days Base : All those travelled overseas 'Upto 3 days '4-7 days '8-10 days More than 10 days Base : All those travelled domestic 16

17 Overseas Stay Duration - Leisure travel Travelers from smaller cities prefer to go for longer duration itineraries All Mumbai Kolkata Hyderabad 5% 1% 5% 4% 23% 18% 12% 27% 9% 71% 66% 59% Base All : 161 Base All : 129 Base All : 165 Base All : 728 'Upto 3 days '4-7 days Ahmedabad 0% 15% 35% Chandigarh 5% 2% 32% '8-10 days 61% 50% More than 10 Days Base All : 142 Base : All those travelled overseas 17 Top Responses Base All : 131

18 Domestic Stay Duration- Leisure travel Longer duration domestic tours preferred including 10 days and more in some cities All Mumbai Kolkata Hyderabad Base All : 95 Base All : 93 Base All : 94 Base All : 460 Ahmedabad Chandigarh 'Upto 3 days '4-7 days '8-10 days '11-15 days 18 '15-20 days Base : All those travelled domestic Top Responses Base All : 71 Base All : 107

19 Trend in 3-5 years for duration of leisure stay Overseas Duration of overseas trip has remained more or less same over the years All Mumbai Kolkata Hyderabad 11% 6% 17% 24% 69% 14% 83% 71% 5% Base All : 161 Base All : 129 Base All : 165 Base All : 728 Ahmedabad Chandigarh Has increased 26% Has decreased Has remained unchanged 62% 12% Base All : 142 Base : All those travelled overseas 19 Top Responses Base All : 131

20 Trend in 3-5 years for duration of leisure stay Domestic Duration of domestic trip has increased compared to international tours across cities All Mumbai Kolkata Hyderabad 13% 6% 22% 6% 46% 50% 81% 72% 4% Base All : 95 Base All : 93 Base All : 94 Base All : 460 Ahmedabad Chandigarh The duration of my travel/stay has increased The duration of my travel/stay has decreased 23% 1% 29% The duration of my travel/stay has remained unchanged 76% 68% 3% Base All : 107 Base : All those travelled domestic 20 Top Responses Base All : 71

21 Trend in 3-5 years for duration of leisure stay Overseas / Domestic Clear trend towards longer duration trips within the country compared to international Overseas duration of stay Domestic duration of stay Base All : 728 Base All : 460 Has increased Has decreased Has remained unchanged Has increased Has decreased Has remained unchanged Base : All those travelled domestic Top Responses 21 Base : All those travelled overseas

22 Increase in duration of Overseas/ Domestic leisure stay - Reasons Rising disposable incomes and attractive travel discounts driving longer durations trips within and outside the country Top Responses Overseas Domestic Increase in disposable income Discounts/deals Discounts/deals Increase in disposable income Decrease in travel fares Group tours/packages 26 Group tours/packages Decrease in travel fares Peer/family pressure Benefit of travel miles Accumulated Office leaves Travel combined with Family function Base : All those coded increase in duration overseas stay: 138 Peer/family pressure Accumulated Office leaves Travel combined with Family function/ gathering Base : All those coded increase in duration domestic stay: 122 Benefit of travel miles

23 Trends in 3-5 years - Overseas location selection criteria Beaches/ Sightseeing followed by Adventure/ wildlife - the key reasons to choose overseas destinations All Mumbai Kolkata Hyderabad Ahmedabad Chandigarh Beaches/Sightseeing/Landscape /Greenery Adventure/Wildlife Culture/heritage/history Tourist Season OR Promotional activities in that city/country Unexplored/virgin destination Religious Spirituality Holistic healing/yoga Cuisine Shopping Medical Treatment : Base : All those travelled overseas 23

24 Trends in 3-5 years - Domestic location selection criteria Culture/ heritage driving domestic destination choice apart from scenic spots Top Responses All Mumbai Kolkata Hyderabad Ahmedabad Chandigarh Beaches/Sightseeing/Landscape / Greenery Culture/heritage/history Religious Adventure/Wildlife Tourist Season in that city Unexplored/virgin destination Spirituality Holistic healing/yoga Cuisine Medical Treatment Base : All those travelled domestic

25 Trends in 3-5 years Overseas/ Domestic location selection criteria Culture/ religious tours influence domestic tour far more than international excursions Top Responses Overseas Domestic Beaches/Sightseeing/Landscape/Greene ry Adventure/Wildlife Culture/heritage/history Tourist Season OR Promotional activities in that city/country Unexplored/virgin destination Religious Spirituality Holistic healing/yoga Cuisine Shopping Beaches/Sightseeing/Landscape/ Greenery Culture/heritage/history Religious Adventure/Wildlife Tourist Season in that city Unexplored/virgin destination Spirituality Holistic healing/yoga Cuisine Medical Treatment Base : All those travelled overseas: 728 Base : All those travelled domestic: 460 Medical Treatment 7

26 Trends over past 3-5 yrs in Funding of Overseas Travel Savings the key source of funding for international trips across cities Top Responses All Mumbai Kolkata Hyderabad Ahmedabad Chandigarh Savings Salary Bonus Funded by family/sponsored Leave travel allowance Encashed accumulated travel miles Base : All those travelled : overseas

27 Trends over past 3-5 yrs in funding of Domestic Travel Domestic trip funding in line with international tour behaviour Top Responses All Mumbai Kolkata Hyderabad Ahmedabad Chandigarh Savings Salary Bonus Encashed accumulated travel miles Funded by family/sponsored Leave travel allowance Took a loan/emi : Base : All those travelled domestic 27

28 Trends over past 3-5 yrs in Funding of Overseas/ Domestic Travel Indians display conservative approach of using Savings to fund leisure travel Top Responses Overseas Domestic Savings Savings 84 Salary Bonus Funded by family/sponsored Leave travel allowance Salary Bonus Encashed accumulated travel miles Funded by family/sponsored Leave travel allowance Encashed accumulated travel miles Took a loan/emi 2 Base : All those travelled overseas: 728 Base : All those travelled domestic:

29 Overseas/ Domestic Travel- Booking source Self booking (online, offline) more evident in case of domestic bookings factor of greater comfort Top Responses Overseas Domestic Local travel agent Tour operator Online travel portal Offline booking Base : All those travelled overseas: 728 Local travel agent Tour operator Online travel portal Offline booking Base : All those travelled domestic:

30 Shift in preference Overseas travel Trend towards traveling to exotic locations when it comes to international travel Aspirations of travel to exotic locations visible across cities All Mumbai Kolkata Hyderabad 13% 19% 22% 28% 31% 56% 41% 40% 50% Base All : 161 Base All : 129 Base All : 165 Base All : 728 Ahmedabad 9% Chandigarh Shift from domestic to overseas Shift from economical overseas to exotic overseas 31% 60% Shift from exotic overseas to economic overseas Base All : 142 Base : All those travelled overseas 30 Top Responses Base All : 131

31 Ranking the overseas locations Safety Infrastructure Disaster Management Medical Facilities Overall Best % Dubai / UAE % Thailand % Singapore 31

32 Overseas Travel Insurance Awareness / Purchase Though aware, only 38% respondents purchase international travel insurance Cities like Hyderabad, Chandigarh more prone to purchase insurance Top Response Aware Consider Essential Purchased To protect baggage, precaution for medical emergency Aware Not Aware Yes No Purchased Not Purchased Base All : 728 Base All : 728 Base All : 728 Mumbai Kolkata Hyderabad Ahmedabad Chandigarh 9% 72% 28% 76% 24% 30% 70% 91% 48% 52% Base All : 131 Base All : 142 Base All : Base All : 129 Base All : 165

33 Domestic Travel Insurance Awareness / Purchase Very limited purchase of domestic travel insurance despite acknowledgement of its need Top Response Aware Consider Essential Purchased To protect baggage, precaution for personal accident Aware Not Aware Yes No Purchased Not Purchased Base All : 460 Base All : 460 Base All : 460 Mumbai Kolkata Hyderabad Ahmedabad Chandigarh 3% 5% 6% 3% 5% 97% 95% 94% 97% 95% Base All : 71 Base All : 107 Base All : Base All : 93 Base All : 94

34 Reason for purchase of Overseas travel insurance Baggage safety driving overseas insurance purchase, more than medical emergency Top Response All Luggage/baggage safety Need during medical emergency Unfavourable past experiences Suggested by a travel agent Mandatory as per rules/regulations Read an article on travel insurance 34 Base : All those who purchase overseas travel insurance:278

35 Reason for not purchasing Overseas/ Domestic travel insurance International travelers not seeing distinct benefits of overseas travel insurance Short travel distance the key reason for staying away from domestic travel insurance Top Response Overseas Domestic I already own another type of insurance policy Travel insurance is not needed for short distance /for travelling within country 58 It has nothing to do with medical support Making claim in OVERSEAS travel insurance is very difficult and requires lot of follow-ups Existing travel insurance covers are mostly inadequate to cover the actual needs of people travel oversees There is no provision for extension of duration of policy when travelling to OVERSEAS locations Base : not purchase overseas travel insurance: I have medical insurance and do not feel the need to take travel insurance Travel insurance is needed only when you travel out of home country There s no need to buy separate travel insurance if I already own another type of insurance policy For domestic trip it is not required Base : not essential domestic travel insurance:

36 Availed a Claim for Overseas Travel Insurance Only Travelers from metros have experienced claims 1 in 10 frequent international travelers had experienced a claim situation All Mumbai Kolkata Hyderabad 1% 16% 10% 84% 90% 99% Base All : 45 Base All : 31 Base All : 116 Chandigarh Base All : 278 Yes 100% No Base All : 74 36

37 Summary 37

38 To Summarise 15% respondents travel abroad 2-3 times in a year TRAVEL FREQUENCY Over 20% travellers have increased number of overseas trips Short duration and off-season discounts driving increase in overseas trips Unplanned travel and short duration trips reasons behind increase in domestic trips 60%+ overseas travellers prefer a stay of 4-7 days STAY DURATION Domestic stays getting longer compared to overseas stay result of increase in disposable income and discount/deals 38

39 To Summarise Despite high awareness, only 38% purchase an overseas travel insurance policy TRAVEL INSURANCE 60%+ considered domestic travel insurance, however only 4% purchased a policy Over 50% respondents don t see a need of separate overseas travel insurance if they already have an insurance policy 60% domestic travellers believe travel insurance not needed given short distance of flight 39

40 Thank You 40