India Market Report Visit Finland Country Representative India Sara Kaur Sodhi May

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1 India Market Report Visit Finland Country Representative India Sara Kaur Sodhi May

2 Semiannual Report INDIA Winter season and outlook for summer 2018 CONTENTS Factors affecting the results of the winter season Outlook for the summer season 2018 Prospects for the autumn/winter season Trends and other relevant travel related topics Facts and figures - Market review data

3 Factors affecting the results of the winter season Reasons for the increase/decrease in overall outbound travelling from your market? Increase Economic Situation: Encouraged by its pace-setting 7% GDP global growth rate in 2017, rising personal income levels and changing lifestyles, huge middle class as well as the availability of low-cost air fares and diverse travel packages, India is rapidly becoming one of the fastest growing outbound travel markets in the world. In year 2000, less than 5 million Indians were heading out of the country. Today, around 20 million Indians are setting off to foreign lands seeking new experiences. The UNWTO predicts that India will account for 50 million outbound tourists by 2020 becoming World s Number 1 Outbound market. 75 million passports holders in India, but only 20 million people travelling till This huge gap highlights that there's going to be whole lot of travelling Indians in the next few years. With more than 20 million Indian nationals now living throughout the world (3.4 million in the US), the volume of outbound travel is increasing about 25% a year. The power of the Indian passport Indians can travel visa free to more than 50 countries! As the number of outbound travellers from India increases, the leisure traveller amongst these is also increasing 25% Year-on-Year.

4 Factors affecting the results of the winter season Reasons for the increase/decrease in overall outbound travelling from your market? Increase Economic Situation: In 2013, Indians took the international trip once in 21 months. Now Indians holiday once in a year! The Kuoni Travel Report India 2007 predicts that total outbound spending will cross the $28 billion mark in 2020 This upward surge will continue for decades to come because concurrent with its rising GDP rate India s population (currently 1.1 billion) is expected to overtake China s as the world s largest in the next five years, and its young, tech-savvy, educated middle class will double in size to 547 million shortly thereafter. Within five years, India will also rank as the world s youngest country demographically. India is counted as the 'youngest' among all countries in the Asia Pacific region, considering the number of its citizens below 30. According to a study by Amadeus, 23% of Indian leisure travellers are under the 30 age group. The sheer size of its rapidly expanding middle class practically guarantees success for India s travel consumer story for the next 20 years. Bigger than the entire US population, India s middle-class today numbers 350 million people. A sizable number of Indians have a net worth of more than $1 million and 180 million Indians - three times the population of the UK - speaks English, and many of these folks own cars, cell phones and carry credit cards.

5 Factors affecting the results of the winter season Reasons for the increase/decrease in overall outbound travelling from your market? Increase Main Source Markets : Main source regions are west and north (including central India) together accounting for about 65 per cent of all outbound travel, followed by south (25 per cent) and east (10 per cent) Europe commands an estimated market share of about 20 per cent of all Indian outbound departures Dubai, Thailand, France, Singapore and Malaysia alone account for just over 50% of Indian leisure arrivals overseas. Sri Lanka, Hong Kong, Indonesia (primarily Bali), the US and Switzerland are in the top 10 destination. Travel Period: Peak Periods April June (Indian summer holidays) High season Jan- Feb and October December (Indian wedding season honeymooners market & festive holidays in schools) Shoulder Season August and September Low Season March and July

6 Factors affecting the results of the winter season Reasons for the increase/decrease in overall outbound travelling from your market? Increase New potential target group for Finland Groups (GIT) Family Market Retired Market Free Individual traveler (FIT) Honeymooners -Urban Indian couples (HNWI High-Net-Worth Individuals & SEC A- Socio Economic Sector A) looking for a unique honeymoon destination where they can enjoy winter activities and view Northern Lights instead of the common beach holidays as chosen by Indian Celebrity Couple Viraat Kohli & Anushka Sharma. DINKS ( Double Income No Kids Segment) Youth and students in schools and universities Single Well Educated Working Women Solo Travellers MICE ( Meetings, Incentives, Conferences, Events) & Weddings

7 India Market Highlight and Latest Trends

8 India Market Highlight and Latest Trends

9 Factors affecting the results of the winter season Reasons for the increase/decrease in travelling to Finland? Increase Changes in demand India market is growing at a double-digit rate driven by the approximately 7 per cent GDP growth over the past few years, owing to increasing middle-class incomes, changing attitudes towards spending, low airfares, group package tours and the easy availability of EMI options on travel bookings. Winter Holidays and travel to Nordic Countries is gaining popularity with the Indian market Northern Lights was a trending experience with well travelled urban Indians in winters 2017 Overall Finland witnessed 42% Increase in numbers compared to 2016 winter. Club Mahindra acquisition of Holiday Club Resorts and there focus on selling packages in the Indian market has also resulted in increase of numbers to Finland Finland s image as a travel destination Currently Finland has gained some mileage with India as a winter destination for experiences like Northern Lights, Igloo Stay and winter activities for FIT & MICE. Indian Celebrity Couple Viraat Kohli and Anushka Sharma have launched Finland as a honeymoon destination for Indians. Mahindra 101 was hosted in Holiday Club Saimaa in December 2017 launching Finland as a MICE destination for Indians. Consequently some MICE Groups from India visited Finland and hosted their meetings in Rovaniemi and Helsinki in January 2018 as well. Changes in distribution Tour Operators like Villa Escape & Lumi Safari started focused selling for Finland Winter Holidays Some new tour operators specialized in tailor-making itineraries started offering Finland MICE Agents Fam Trip in November 2017 Few Indian Luxury Agents attended Matka 2018 Changes in accessibility Direct Flights by Air India to Stockholm and Copenhagen increased the inventory for travel to Nordic Countries from India apart from the flights offered by Finnair

10 Factors affecting the results of the winter season Reasons for the increase/decrease in travelling to Finland? Products that have been attractive Aurora watching Staying in a Igloo Santa Claus Ice Breaker Sampo Winter Activities Husky and reindeer safari, snowmobiling Regions that have been attractive Coast & Archipelego Lapland Helsinki Campaigns, joint promotions results Fam trip for MICE Specialists

11 Outlook for the summer season 2018 The overall outlook of travelling to Finland for the coming summer? Increase/decrease and reasons for the increase/decrease Increase United Nations, The International Monetary Fund (IMF) reaffirmed that India will be the fastest growing major economy in 2018, with a growth rate of 7.4 per cent that rises to 7.8 per cent in 2019 with medium-term prospects remaining positive. Group Series (GIT) departures have been launched and inventory has been increased by agents like Thomas Cook, Make My Trip, Dpauls etc. FIT travel to Finland has also increased from India Travel and tourism businesses around the world are looking to capitalize on India's double-digit annual growth in the outbound MICE and luxury travel segment, with the value of India's business travel market expected to reach USD 93 billion by 2030 MICE travel has gained momentum to Finland and several movements have been confirmed for summer 2018 New summer products ACTIVE HOLIDAY in cool summer and in snowy winter. nature adventures and local culture experiences. Northern lights, berry picking, tracking, cycling, canoeing ADVENTURE FINLAND High quality adventure in Finnish nature CITYBREAK Helsinki and beyond -Exploring Finnish design, culture activities and lifestyle SPECIAL INTEREST TRAVEL - MICE, technical visits and educational travel New sales channels Agencies specialized in GIT Travel for multi country itineraries including Finland Tour operators specialized in tailor-made packages Tour operators aiming at high end customers and high quality products MICE Specialists promoting Finland

12 Outlook for the summer season 2018 The overall outlook of travelling to Finland for the coming summer? What are the trends for the summer 2018? Long weekends Solo travel Unique Bucket List experiences Wine Trips Film Locations Self Drive Holidays Which are the traveller segments? Group travelers (GIT) FIT s MICE Small private groups with customized itineraries Families with children Solo Travellers Travel Bloggers

13 Outlook for the summer season 2018 Ad hoc marketing opportunities TO cooperation, joint promotions, crossover, events, PR, social media Fam Trips planning in process 3 Trips in 2018 ( FIT, GIT, Educational Travel & MICE) Cox & Kings 25 Pax from their Top Sellers will visit Finland in September to experience the destination India Roadshow planning in process for October end / November beginning 2018 Joint marketing campaign planning in process with Thomas Cook, Make My Trip & Cox & Kings

14 Prospects for the autumn/winter season The overall outlook of travelling to Finland? What trends should be considered in product development to increase the demand in the autumn/winter time? Stay in Igloo Aurora Watching Winter activities in Lapland Celebrate Christmas with Santa Claus / Christmas Holidays Day Trip in Helsinki Which present target groups should be considered to increase the demand? FITs Small private groups Group travelers MICE Travelers Which new target groups should be considered to increase the demand? Youth Urban Indians, millennials Only female travel Solo travelers Elderly groups Well-seasoned travelers- luxury traveler Adventure traveler

15 Trends and other relevant travel related topics Trends International travel is no longer confined to the rich the middle class is taking the plunge more often. International budget carriers are offering cheaper fares and direct connectivity to overseas locations from tier II towns Travel trends in 2018 are slated to be a lot about experiences. Indian families will begin to take short breaks multiple times and indulge in unique offerings that are experiential in a destination. New distribution channels Launch dedicated India handles for social media marketing and engage Indian audience with targetted content for Finland Branding in Malls, Retail Stores, Hoardings Radio & Print Campaigns Launch Finland Destination Specialist program for India travel trade Joint Collaboration with Corporates for MICE Travel Online channels OTA s Trip Advisor Airbnb

16 Trends and other relevant travel related topics Competitors actions Scandinavian Tourism Board STB has been active in India for 10+ years and has been conducting Road Shows in India since 2008 The Scandinavian tourism partners of Denmark, Sweden and Norway are pinning high hopes of visitations growth from India on the back of improved direct connectivity to the region by Air India. Currently, the national carrier of India operates six flights a week to the region 3 services a week to Copenhagen and 3 to Stockholm. Explore Scandinavia Facebook page now has close to 20,000 followers. Scandinavian countries are targeting Bollywood productions from India as well Australia Indian Brand Ambassador Bollywood Celebrity Actress Parineeti Chopra Hosted several Bollywood Movie Shoots, TV Show shoots, Trade Fams and Travel Shows targeting India Market Hosts annual India Roadshow along with extensive B2B & B2C Marketing In a bid to woo Indian travelers, Tourism Australia has brought together eight airlines to offer discounted fares to Australia as part of the Great Australian Airfare Sale. The airlines participating in this are: Scoot, Air Asia, Air India, Jet Airways, Malaysia Airlines, Qantas Airways, Singapore Airlines and Thai Airways. The booking period for the Great Australian Sale is valid until June 21, 2018, with travel validity up to June 30, Tourism Australia has achieved its target of receiving 3,00,000 Indian visitors much ahead of its time in 2017, a target set for Tourism Australia is expecting about 3,68,000 Indian visitors to the country in FY with a growth of 9..

17 Trends and other relevant travel related topics Competitors actions New Zealand Indian Brand Ambassador Bollywood celebrity actor Siddharth Malhotra Tourism New Zealand (TNZ) and Immigration New Zealand have signed a Memorandum of Understanding (MOU) with 4 key trade partners in India to process visit visa under the Tourism Industry Partnership Programme (TIP). The aim of this partnership is to simplify visa procedure for Indian travelers, reducing the processing time to 3 days instead of the online application that takes 15 days. New Zealand welcomed 62, 000 Indian travelers in More than 50 travel agents from India and South East Asia visited New Zealand in 2017 to up-skill their education of the destination. Tourism New Zealand worked with the regional tourism organisations (RTOs) to develop three different itineraries for the agents. Hosts annual India Roadshow along with extensive B2B & B2C Marketing USA Brand USA has completed a very successful sixth annual India Mission in The mission visited the major metro cities of Mumbai, Chennai and New Delhi and saw an overwhelming response from the Indian travel trade, with more than 800 people attending. It comprised 37 U.S. companies that included representatives from tourism boards, hotels, receptive operators, tourist attractions and other services, the largest group of 51 delegates visiting till now. Annual India Roadshow, Several Fam Trips along with extensive B2B & B2C Marketing

18 Trends and other relevant travel related topics Competitors actions Canada Indian Brand Ambassador Bollywood celebrity actor Akshay Kumar Buoyed by the 18% growth in Indian arrivals in 2017( 250,000 visitors), Destination Canada is looking at a 7% spike from the market this year, and at tapping the millennial travelers. India is a young country, and travel has becoming more affordable so Canada is focusing on young millennials, along with a surge in family travel, especially multi-generational groups, and couples above 55 years of age. Currently, there are about 1,000 Canada specialists in India Hosts annual India Roadshow, Several Fam Trips along with extensive B2B & B2C Marketing Air Canada, which launched the seasonal non-stop flight on Delhi-Vancouver route in October 2016, is set so to make it a year-round service from June 8, 2018 Switzerland Bollywood Celebrity Ranveer Singh is the tourism brand ambassador of Switzerland. Ranveer Singh as the country's ambassador in India, has managed to drive a 25 per cent growth rate in the overnights in the Alpine nation in Some 18 years ago in the year 2000, it started with around 200,000 overnights and soon we are reaching 750,000 and that's an enormous growth. In the last three years, we had a growth of roughly 53 per cent and in 2017 alone, the growth rate was a good 25 per cent. Hosts annual India Roadshow, Several Fam Trips along with extensive B2B & B2C Marketing

19 Trends and other relevant travel related topics India 2018: The year of new luxurious experiences GLAMOROUS CAMPING (GLAMPING) & VOLUNTARISM WITH PURPOSE Top Spots: Voluntary Sessions To Teach English, Bring Medical Aid, Spread Sustainable Ways Of Forest And Animal Conservation Are Amazing Bets. Immersive Experiences Of Camping In The Famed Safari Lodges Amidst The Forests Of Masaai Mara, Igloo Pods To Watch The Northern Lights Or Floating Cabins On The Coast Of Cambodia Are Big On The Wishlist. WOMEN TRAVEL GROUPS & SOLO TRAVEL Top Spots: South East Asia, UAE, USA And Canada Last Chance Travel Top Spots : From Melting Icefields And Glaciers To Australia s Bleached And Dying Great Barrier Reef, Maldives, Travelers Are Setting Out In Droves To See Things That May Soon No Longer Be. Bucket List Travel Top Spots : Iceland, Finland Culinary Tours With A Cultural Twist Top Spots: Local Chefs In Fiji, Seychelles And Spain For Hands-on Cooking Lessons Are Big. Farm Tours In Kelowna, Israel And Bhutan Shall Pave Way To Learn About The Fresh Produces. Rejuvenation With Active Wellness And New Fitness Trips Top Spots: Travellers Will Take Detox Breaks In The Foothills Of Himalayas, Indulge In Spa Treatments In Thailand Or Bali Or Check Into A Retreats Of Austria. Extreme Adventure Top Spots: Ice Cycling In Mongolia, Trekking To Spot Snow Leopards In Tibet, Cruising In Antarctica, Everest Basecamp Jumping, Rafting In Rotorua Rapids, Taking Advanced Open Water Courses In Philippines And Tough Terrain Hikes In Argentina. Millennial Cruising, Destination centric Celebrations & Romantic Getaways

20 Trends and other relevant travel related topics Free word Indian Travelers are High Spenders and we should focus on HNI Market offering Experiential Luxury Products for India Market When traveling abroad, Indian tourists are among the world s highest-spending globetrotters. Their spending power has been estimated to be four times that of the Chinese and Japanese. In fact, most Indian business and VFR trips include leisure and shopping components, and nearly half of all Indians who venture abroad do so to shop with almost 75% buying branded duty-free goods. The average Indian traveler spends $1,200 per visit as compared with Americans who spend about $700, and Brits who spend $500. Traditionally, globetrotting Indians tended to come from Tier 1 cities such as New Delhi, Mumbai, Chennai and Bangalore, but lately smaller cities like Jaipur, Ahmedabad, Pune and Amritsar are emerging as important source markets for outbound travel as well. HIGH-NET-WORTH INDIVIDUALS (HNWI S) IN INDIA India has surpassed the 150,000 mark for millionaires, 70% are below 35 years of age and have almost $241 billion in assets. Urban population larger than many countries Middle class will continue to grow 1.5 million Graduates per year One of the World s most optimistic countries

21 India Market review data

Indian overnights in Finland 2017 Year 2017: 78 600 (+44%) Winter (Nov-Apr): 30 300 (+42%) Summer (May-Oct): 44 300 (+45%) 1 13%

22 Indian overnights in Finland 2017 Year 2017: (+44%) Winter (Nov-Apr): (+42%) Summer (May-Oct): (+45%) 1 13% % 8% % 2% 3% 2% 3% 2% 74% 3% 3% 3% 68% 2% 2% 3% 3% 76% Sources: Visit Finland Statistics Service Rudolf, Statistics Finland

Indian overnights in Finland Seasonal overnights in 2017-2018 Finland Winter 2017 (Dec-Feb): 15 600 (+59%) Spring 2017 (Mar-May): 19 400 (+3) Summer

(+154%) Spring 2017: 2 200 (+50%) Summer 2017: 2 700 (+65%) Autumn 2017: 2 500 (+8%) Winter 2018: 1 400 (+47%) Lapland Winter 2017: 2 900 (+57%)

(+44%) Spring 2017: 2 100 (+19%) Summer 2017: 2 000 (+8) Autumn 2017: 1 500 (+14%) Winter 2018: 1 300 (+5%) Winter 2017: 8 900 (+46%) Spring 2017:

23 Indian overnights in Finland Seasonal overnights in Finland Winter 2017 (Dec-Feb): (+59%) Spring 2017 (Mar-May): (+3) Summer 2017 (Jun-Aug): (+43%) Autumn 2017 (Sep-Nov): (+58%) Winter 2018 (Dec-Feb): (+15%) Coast & Archipelago Winter 2017: (+154%) Spring 2017: (+50%) Summer 2017: (+65%) Autumn 2017: (+8%) Winter 2018: (+47%) Lapland Winter 2017: (+57%) Spring 2017: (-13%) Summer 2017: (+27) Autumn 2017: (+179%) Winter 2018: (+39%) Helsinki area Lakeland Winter 2017: (+44%) Spring 2017: (+19%) Summer 2017: (+8) Autumn 2017: (+14%) Winter 2018: (+5%) Winter 2017: (+46%) Spring 2017: (+38%) Summer 2017: (+24%) Autumn 2017: (+73%) Winter 2018: (+26%) Source: Visit Finland Statistics Service Rudolf, Statistics Finland

India Market Report. Visit Finland India. Kalsi Gurpreet November

India Market Report. Visit Finland India. Kalsi Gurpreet November India Market Report Visit Finland India Kalsi Gurpreet November 2017 14.11.2017 Semiannual Report - INDIA Summer season 2017 and outlook for winter 2017-2018 CONTENTS What factors have affected the results