India. Market Conditions Source: Tradingeconomics.com, MOSPI. Airlift
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1 India MARKET BLUEPRINT Italy Trade Flow Chart Market Conditions INDIA GDP ANNUAL GROWTH RATE Percent Change in Gross Domestic Product GDP Annual Growth Rate in India is expected to increase to 7.59% in the second quarter of 2015, from 6.73% in the first quarter of In 2016, the GDP Annual Growth Rate is expected to increase to 7.89%. In the long-term, the GDP Annual Growth Rate in India is projected to trend around 8.03, 7.91 and 7.91% in the years of 2020, 2030 and 2050 respectively. Airlift Source: Tradingeconomics.com, MOSPI Expansion driven by factors such as low-cost carriers, modern airports, foreign direct investments in domestic airlines and cutting-edge information technology Although there is no direct service, several new opportunities for Indian travelers exist: Turkish Airlines has recently launched 5 weekly flights to SFO via Istanbul In January 2015 Cathay Pacific announced increase in the summer frequency from Hong Kong-SFO: from 14 to 17 weekly flights Etihad launched 2 new routes, SFO and LAX, in 2014; travelers traveling via Etihad Airways to U.S. can clear U.S. Customs and border protection at Abu Dhabi Airport, which further ensures smooth travel into California 1 Indian Rupee Equals U.S. DOLLAR Despite a weak currency in 2013 the rupee hit an all-time low against the dollar in August 2013 Indian tourists to the United States have emerged as some of the world s biggest spenders. Booking Indian Rupee U.S. Dollar Planning timeframe: 3 4 months in advance; for FIT travel typical planning timeframe is 8 12 weeks prior to departure Booking timeframe: March May for July vacation period; September November for December February vacation period More than 70% of travel to California is booked through tour operators and retail agencies Competitive Landscape Canada, U.K., Australia, New Zealand, Germany, South Africa Market Barriers With the rupee trending down against the dollar, travel to the U.S. is becoming more expensive No nonstop flights to California Travel Profile (TOTAL) $527M 2014 P California Visitor Spending 27.9% 2013 California Market Share 273K 2014 P California Visits 299K 2015 F Visits +10% 376K 2018 F Visits +38% $818M 2018 F Spending Source: U.S. Department of Commerce; Tourism Economics Leisure Traveler Profile (43% OF TOTAL) 53% Vacation/Holiday 41% Hotel/Motel 19.5 California Nights Average Length of Stay $980 Per Trip 3.3 Destinations Visited 1.6 Party Size Source: U.S. Department of Commerce; CIC Research, Inc. (U.S. INDEX) (83) (54) (160) (51) (110) (100)
2 India Owned Content Flow Chart JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE WEBSITE Content Refresh/Reorder Entry Page Image Refresh Curated & Opportunistic Content Content Addition Continual ingestion of new content to site Publications California Visitor s Guide - IN edition 2014/15 Visitor s Guide 10,000 printed Digital version on website 2016/17 IVG Spring launch - Print run TBD Road Trips - IN edition International Road Trips - Released November ,000 print run International Road Trips - IN edition - Print run TBD Social Media Facebook Instagram YouTube Pinterest Twitter Global Event-Based Engagement Always on Facebook Engagement - Global Page Always on Instagram Engagement - Global Page Always on YouTube Engagement - Global Page Always on Pinterest Engagement - Global Page
3 India Owned Content Flow Chart
4 India Public Relations Flow Chart JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE 15/16 KEY PRIORITIES 1. Expand the visiting journalist hosting program. 2. Continue with the ongoing engagement program Happy Friday e-newsletter. 3. Explore opportunities with movies being made in CA. KEY TRENDS 1. Print media are preparing for the digital age via mobile apps, web portals and news on the go. 2. Clutter in the magazine titles space the key is precise targeting as most of the relevant publications cater to niche audiences. 3. Growth of TV over 600 TV Channels. Media Content Pitches, newsletters & press releases. in CA Top Spots for Fall Foliage Trend Report; Celebrity Chefs in CA California Luxury Backgrounder Trend Report; Awards Season in CA Top Spots for Spring Blooms Trend Report in CA; Theme Parks Insider Tips Road Trips/ Scenic Drives Trend Report & Events One-on-one meetings with key media targets to generate future coverage. Stand alone events to promote California to key media. Brand USA Mission Media Events; Pajama Party Media Event Individual Press Tours Travel, lifestyle & news media & influencers visiting California on assignment for earned media placements based on experiences showcased Individual Press Tours Group Press Tours Thematic group press tours for media on assignment. Could include a mix of traditional & digital influencers. Digital Influencer Programs Broadcast Productions Promotions & PR Stunts Activities geared exclusively to the influencer segment. Mass-reach broadcast productions on locations in California. PR stunt to launch/leverage consumer brand advertising activity or leverage a third party promotional platform.
5 India Public Relations Flow Chart
6 India Trade Flow Chart 15/16 KEY PRIORITIES KEY TRENDS TOP 10 TOUR OPERATORS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE Seminars; Engagement Programs for travel trade; Brand USA India Mission; Product Development with focus on major tour operators and higher penetration in South India; Organized FAM trip for product managers and Luxury tour operators; Trade training program - Luxury product training and California OTP; Tactical co-ops with travel trade and major airlines; Trade portal promotions & contest Indian travelers are taking more frequent international holidays. Customers are booking more frequent trips to USA with most Indian travelers granted a 10 year USA visa; India is a disorganized market and quite difficult to define the booking window which is from 6 months to 2 weeks out. With the ease in the visa procedure and a very high percentage being granted a 10 year visa, it has made travel to the USA convenient even for last minute bookings; Growth in various travel segments specially FIT, customized and Special Interest; There is high demand for customized packages. There is increased interest in nightlife, food, entertainment, self drive holidays, outdoor and adventure and national parks are gaining popularity as well; Increase in luxury travel leads to elevated demand for higher end accommodations and unique experiences coupled with a comfortable enriched holiday also giving travelers bragging rights; Changing profile of the VFR segment. They are spending only a few days with friends and family and then travelling on their own and using various tourist services; Internet remains the primary source of information followed by personal recommendations by friends & family, followed by advice from travel professionals; The USA is gaining popularity with the MICE segment both for M&I and C&E; With the depreciation of the Euro, the cost of Europe packages have reduced by about 10% this year Thomas Cook India, Cox & Kings, SBU: Tours - Vacations Exotica, Balmer Lawrie & Co., TUI, Leisureways, Welgrow, Jagadish Travels, Vacations World, Veena World, Flightshop, Ascon, Flamingo, Pegasus, Kuoni India, Travel Oyster, Tripsncheers/ Paras Holidays Product development/planning (Operators) Booking Window (Consumers) Travel Period (Consumers) Travel Trade Tools Travel Trade Portal, Online Training Program, Newsletters OTP Promotion Digital promotion on trade portal Group Product Manager FAMs California Advisory Board engagement/experiences with top tier travel trade executives; Global FAMs by five marketing pillars; Receptive Operator FAMs; Product Manager FAMs Product Managers FAM Between End Sept- Nov Luxury FAM (Dream Indulgence) Agent Training or Mega-FAMs Mega-FAMs with multiple itineraries based on pillar in California at the same time. Top Selling Frontline Agent FAM OTP Agent FAM Trade Shows Increase California visibility at in-market trade shows IPW Sales Missions Sales Missions held every months India Mission 2015 w/ BUSA Training Engaging training platforms with industry inclusion at low investment levels (Club California training sessions); Incentives for Online Training Program completion / Luxury Training Program - Mumbai/ Brand USA Engagement programtentative / California Expert promotion- Lucky draw / Luxury Training Program - Delhi/ Brand USA Engagement programtentative Trade Co-Ops Targeted co-ops with operators to focus on increased awareness and visitation along with product development; New airlift support, Non-endemic partnerships/ sponsorships through travel trade Joint promotion with travel trade/airline promotion
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