India Market Report November 2018 Visit Finland Country Representative Sara KaurSodhi
Semiannual Report INDIA Summer season 2018 and outlook for winter 2018-19 CONTENTS Factors affecting the results of the summer season 2018 Outlook for the winter season 2018-19 Prospects for the spring/summer season 2019 Trends and other relevant travel related topics Facts and figures - Market review data
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in overall outbound travelling from your market? For the past few years, all eyes in the travel industry have been on the China outbound travel market. Now, India is showing signs that it will be the next market to watch and win over. With the world s second-largest population and boasting the fastest-growing major economy, we are already seeing signs of this market s power, as well as signals that the real growth is yet to come for Finland. In just the last 20 years, the number of outbound tourists from India has grown from 3.5 million to 21.9 million, making it the fastest-growing outbound market behind China. As the country s economy continues to grow, its citizens are gaining more disposable income to spend on travel. In summer 2018 the overnights from India to Finland grew by 2% during summer over and above the 43% increase in 2017
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in overall outbound travelling from your market? For summer Finland at the moment majorly sells as a part of multi country group series- GIT / FIT packages from India which also includes Sweden, Denmark & Norway hence the duration in each country is approx. 2-3 nights only. Since we don t have direct flights from Mumbai to Finland, all the Mumbai based agents prefer airlines like Qatar instead of Finnair to avoid multiple stops for their clients and the first port of entry is mainly Sweden or Copenhagen with maximum duration in Scandinavian Countries instead of Finland. The knowledge and availability of products exclusively for Finland or Baltics as a summer destination is very limited in the India market as on now. We have to showcase the summer in Helsinki, Lakeland, Lapland etc. to India travel agents enabling them to develop customised products for India market and also combinations of Finland with Baltic Countries and Finland with Russia to gain our market share and offer diverse range of packages to chose from. Since Scandinavian Tourism Board has been active in India for the past 10 years and have been conducting multi country roadshows annually, hence the Indian travel agents have good relations with suppliers based in Scandinavia and their products include maximum duration and experiences in Scandinavian Countries instead of Finland
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in travelling to Finland? Changes in demand Europe is considered a multi country destination with Indians, the trend is to spend only a few nights at the same location Mono Finland is not a destination for Indians as of now - Scandinavia or Baltic is Overall there has been a increase in demand for Scandinavian Region holidays with Indians including Finland. Several agents have launched packages for this region including multi country itineraries featuring Finland, Denmark, Norway & Sweden however the numbers are growing at a consistent pace as these packages are quite expensive and the target market for these packages is the well travelled Indians Outbound travel Pattern of Indians : 1 st Trip - Domestic Travel expands to nearby destinations 2 nd Trip - Mainstream EU : London, Paris, Switzerland 3 rd Trip - US/ Canada or Australia/ New Zealand 4 th Trip - Eastern Europe :Prague, Budapest, Croatia 5 th Trip - Alternate US/ Canada or Australia/ New Zealand 6 th Trip - Northern Europe : Finland & Scandinavia
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in travelling to Finland? Finland s image as a travel destination Finland s image as winter travel destination is gaining popularity in the Indian market and with all the destination coverages in publications the growing interest with Indians for Northern Lights and unique once in a lifetime holiday experiences like staying in an igloo, husky safaris etc. However the popularity for summer from India is collectively as Scandinavian Region and not exclusively Finland as of now. All the major products for summer with India market are multi country itineraries including Finland, Sweden, Denmark & Norway Changes in distribution Few more agents launched GIT Series Departures for Finland and Scandinavia in 2018 as most of the top players like Cox & Kings, Thomas Cook, SOTC, Make My Trip etc. launched Scandinavia & Finland products in 2017 which led to the increase in 2017, the key for 2018 has been to maintain the consistent growth for these departures as they are priced higher than basic European products featuring London, Paris, Germany etc. Few players like Thomas cook etc have increased the duration of their GIT in Finland covering both Helsinki and Rovaniemi for summer holidays.
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in travelling to Finland? Changes in accessibility There has not been any change in accessibility to Finland from India in summer 2018 Direct Flights by Air India to Stockholm and Copenhagen maintained the available inventory for travel to Nordic Countries from India apart from the flights offered by Finnair from Delhi In order to enhance our market share we should have daily direct flights to Helsinki from Delhi during summer which is only thrice a week currently and even look at direct flights from Mumbai & Bangalore to Helsinki Fly Dubai has started direct flights to Helsinki from Dubai from 11 October 2018 Wow Airlines has started direct flights from Delhi-Reykjavik starting 7 th December 2018
Factors affecting the results of the summer season 2018 Reasons for the increase/decrease in travelling to Finland? Products that have been attractive Packages with multi country itineraries featuring Finland, Sweden, Denmark & Norway Finland and Baltic States Package has been developed starting 2018 by travel agents in India like Cox & Kings, Yatra, Make My Trip etc Regions that have been attractive Helsinki & Lakeland have shown the maximum growth from India in summer 2018 Campaigns, joint promotions results The booking period for summer travel from India is Feb April as the holidays start from May July, since our marketing budget and market plan was finalised in April 2018, we didn t launch any summer campaign for Finland as the booking period for summer holidays was majorly over. We will execute strategic campaigns for summer in 2019.
Outlook for the winter season 2018-19 The overall outlook of travelling to Finland for the coming winter? Increase/decrease and reasons for the increase/decrease Increase Finland has gained popularity with India as a winter destination with unique experiences offered by Finnish Lapland FIT bookings have been on a rise for Finland for travel between December 2018- March 2019 MICE travel has gained momentum to Finland and several movements have been executed from India for autumn 2018 New winter products Few agents in India like Urvi Tours, Gem Travels, Lumi Safaris, Cox & Kings, Thomas cook, SOTC have launched exclusive winter GIT Series departures for Finland (Arctic Tour) in January - March 2019, hence the numbers will increase from India for Winter 2018-19 New sales channels Several agents PAN India are promoting Lapland for winter holidays in India There has been a increase in the number of FIT queries and confirmations for Finland Marketing Campaign executed with Thomas Cook, Cox & Kings and Make My Trip in India promoting the winter travel to Finland Several coverages of Rovaniemi & Levi in leading travel publications, newspapers of India after the Press Fam in March 2018
Outlook for the winter season 2018-19 The overall outlook of travelling to Finland for the coming winter? What are the trends for the winter 2018-19? International travel is no longer confined to the rich the middle class is taking the plunge more often. Travel trends in 2018 were a lot about experiences. Indian families are taking short breaks multiple times and indulge in unique offerings that are experiential in a destination. Which are the traveller segments? GIT Travellers MICE Urban Wealthly FIT Families Millenials, Small Groups (6-10 Pax) Gen Z Travelers
Outlook for the winter season 2018-19 Ad hoc marketing opportunities Digital Media Content Curation by Little Black Book India Digital Media Campaign with Vogue India Destination features for Finland in B2B Publications ( Travel Trade Journal & Travel Scapes) Destination features for Finland in B2C Publications ( National Geographic, Travel + Leisure India, ET Panache) Fam Trips for Cox & Kings PAN India Team Luxury & Education Theme Fam for Indian travel fraternity Christmas Story in The Hindu Metro Plus Newspaper Christmas Party with destination training for Travel Fraternity by Team Finland India
Prospects for the spring/summer season 2019 The overall outlook of travelling to Finland? What trends should be considered in product development to increase the demand in the spring/summer time? Multi Country Itinerary combinations with Sweden, Denmark, Norway / Russia / Baltic States Highlighting the music festivals / EDM / Metal Festivals during summer which Indians can attend and plan their travel around these festivals in finland Active - Shopping, Partying,Adventure ( National Parks ) themed holidays for the millenials Romantic Holidays for honeymooners Family Holidays with activities for Kids Which present target groups should be considered to increase the demand? Group Series Families with kids Family Groups (multiple families together) Millenials & Gen Z MICE well-seasoned travelers- luxury traveler Which new target groups should be considered to increase the demand? Only Women Groups with special women centric itineraries Solo travelers Elderly groups
Trends and other relevant travel related topics Trends Doing it for the Gram 40% of millennials (18-33 year olds) now take social media into consideration when choosing holiday destinations. Even the chance to post local delicacies in exotic locations on platforms like Instagram is influencing millennials choices. Solo Women Traveller British Airways Global Solo Travel Study reveals that almost half of the women are choosing to travel solo, and 37% of Indian females travelled solo to Europe and 33% exploring the UAE and the Middle East. The BA Global Solo Travel Study of almost 9,000 18-64-year olds across UK, US, France, India, Germany, Italy, Brazil and China found that over 50% of women have taken a holiday by themselves, with 75% of women planning a solo trip in the next few years. According to the BA study, almost 47% of Indian women said they have travelled alone, for at least 2 5 times and 30% of Indian travellers intend to travel in the next 2-3 months. Maximum number of solo travellers in India is between the age of 18 25.The survey said that Indian traveller s hopped/skipped continents the most with 37% have travelled solo to Europe and 33% exploring the UAE and Middle East. Source: http://www.travelbizmonitor.com/data-analysis/global-solo-travel-study--47-indian-womenenjoy-independent-travel-36533
Trends and other relevant travel related topics Trends The Millennial Travel Survey 2017, conducted by Skyscanner India, showed that 62% of Indian millennials (those between the ages of 18 and 35) typically vacation two to five times a year. Another 10% said that they travel six to 10 times a year, in a combination of shorter breaks to domestic destinations and longer international holidays. Many of them structure their work schedules and finances to ensure that they can plan frequent getaways. If necessary, these men and women are even willing to fund their wanderlust by taking loans. Taking advantage of the fact that young people without collateral often find it difficult to take loans from banks, a number of financial-technology firms have stepped into the field in India, offering personal and retail loans. Source: https://scroll.in/magazine/891189/for-indian-millennials-travel-is-a-way-of-life-and-theyreeven-taking-loans-to-fund-it
Trends and other relevant travel related topics New distribution channels Launch Finland Destination Specialist program for India travel trade Joint Collaboration with Corporates for MICE Travel OTA s Trip Advisor Airbnb Online channels Launch dedicated India handles for social media marketing and engage Indian audience with targeted content for Finland
Trends and other relevant travel related topics Competitors actions Scandinavia Tourism Board India today ranks as the second major source market in Asia for Scandinavian countries. Though travel is prominent from the metro cities of Delhi, Mumbai, Chennai and Bengaluru, but the secondary source markets such as Kolkata, Pune, Hyderabad, Kochi and Ahmedabad are also performing well. Over the last five years, the overall growth has been consistent of about 15-30% from India to the Scandinavia countries. In 2018 the Scandinavian Tourist Board expects 10% average growth from the Indian market. Scandinavia Tourism Board conducted 3 city Roadshow in October 2018 in New Delhi, Mumbai & Bangaluru The number of partners at the annual roadshow of Scandinavian Tourist Board covering Delhi, Mumbai and Bengaluru has also increased in 2018 keeping in mind the growth from India market. Source: http://www.travelbizmonitor.com/trade-news/scandinavian-travel-partners-hope-to-ride-on-directconnectivity-factor-in-indian-market-34490 http://www.travelbizmonitor.com/trade-news/india-second-major-asian-source-market-for-scandinaviancountries-31705
Trends and other relevant travel related topics Competitors actions Iceland Nordic Island country in the North Atlantic, Iceland is hoping big boost in travel and tourism between the two countries with the establishment of the direct air connectivity between Delhi and Keflavik. WOW air, began its operations from New Delhi with its inaugural flight being flagged off from Indira Gandhi International Airport on December 7, 2018. The airline will operate three weekly flights from New Delhi, connecting passengers to North America and Europe through their hub in Iceland (KEF). Post the announcement of the WOW air in India in May, earlier this year, the airline also began its fully functional booking office in New Delhi and recruited Indian crew, a first for any international airline operating out of India. WOW air serves a number of destinations from New Delhi including Chicago, Orlando, New York, Detroit, Baltimore, Boston, Pittsburgh, Los Angeles, Washington DC, in the US; Toronto & Montreal in Canada and Reykjavik in Iceland. Source : http://www.travelbizmonitor.com/trade-news/wow-airs-maiden-flight-takes-off-from-newdelhi-36590
Trends and other relevant travel related topics Competitors actions USA Brand USA, the destination marketing organisation for the United States, conducted its seventh annual India Travel Mission from September 23 to 28 in Bengaluru, Mumbai and New Delhi. This year s mission was the largest to date with 64 delegates from 42 U.S. tourism organisations participating. The delegation included representatives from tourism boards, hotels, receptive operators, tourist attractions, and other services. Source: http://www.travelbizmonitor.com/in-focus/brand-usa-brings-the-largest-delegation-for-indiatravel-mission-2018-36335
Trends and other relevant travel related topics Competitors actions Two European carriers Air Italy and Wow Air - make India debut on the same day Air Italy to connect Milan with Delhi and Mumbai, while WOW Air to connect Keflavik, Iceland to Delhi Two new European carriers started their India operations on the same day promising enhanced connectivity to Europe and to forward points within Europe and to cities in the US. While Air Italy, a full-service Italian carrier with hub in Milan started their Milan- Delhi operations with weekly three frequencies, with a second city addition in Mumbai next week with same frequency, WOW Air, an intercontinental low-cost carrier from Iceland landed in Delhi connecting Keflavik to Delhi with three frequencies a week. Both the carriers are hoping for a long-haul in India riding on ever-growing tourism outbound from India as well as the increasing trade and business relationships between India and Europe. Source: http://www.travelbizmonitor.com/aviation/two-european-carriers-air-italy-and-wow-air--- make-india-debut-on-the-same-day-36587
Trends and other relevant travel related topics Competitors actions Turkey With international inbound to Turkey looking up once again, Turkey will be rigorously reactivating its trade engagements in emerging markets like China and India Starting from September, Turkish Tourism embarked on a series of promotional campaigns and destination marketing activities in Indian market. This is in sync with the 100-day Action Plan unveiled by Turkish President Recep Tayyip Erdogan aiming at transforming Turkey economically. Source : http://www.travelbizmonitor.com/trade-news/turkish-tourism-to-reactivate-india-marketpromotions-and-campaigns-36064
Trends and other relevant travel related topics Free word Global travel suppliers eye India's outbound tourism market By 2030, the value of India's business travel market is expected to reach $93 billion. Travel and tourism businesses around the world are looking to capitalise 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 $93 billion by 2030. India has recently moved up two places to become the eighth largest business travel market in the world, and business travel spending in the country is projected to record a compound annual growth rate of 12 per cent through 2020. As India maintains its double-digit annual growth in the outbound meetings, incentives, conferences and exhibitions (MICE) and luxury travel segment, travel and tourism businesses around the world are looking to capitalise on the country's growth potential. SOURCE : https://www.business-standard.com/article/companies/global-travel-suppliers-eye-india-soutbound-tourism-market-118060200447_1.html
India Market Review 22 17/12/2018 First name Last name
Indian overnights in Finland Seasonal overnights in 2016, 2017 & 2018 Year 2017 Whole Finland No. of Indian overnights 2016 2017 2018 Actual /(expected) seasonal change 2017 vs. 2016 2018 vs. 2017 Winter (Dec-Feb) 9 800 15 600 17 900 +59% +15% Spring (Mar-May) 14 800 19 400 21 400 +31% +10% Summer (Jun-Aug) 15 800 22 600 23 000 +43% +2% Autumn (Sep-Nov) 12 400 19 700 +58% (+xx%) Reasons behind the actual / expected change Rovaniemi 65% Inari/Saariselkä 17% Sodankylä 5% Lapland 2018 Winter 4 100 +39% Spring 2 400 +65% Summer 1 600-34% Autumn Lakeland 2018 Indian overnights in Finland by season in 2017 Coast & Archipelago 2018 Winter 1 400-47% Spring 2 300 +4% Summer 1 800-33% Autumn Turku 17% Oulu 11% Vaasa 10% In addition: Uusimaa (excl. larger Helsinki area) 45% (destinations which are outside the main travel dest.) Helsinki 75% Espoo 17% Tampere 35% Joensuu 13% Jyväskylä 11% Lahti 8% Sotkamo 7% Lappeenranta 6% Helsinki area 2018 Winter 11 200 +26% Spring 14 500 +6% Summer 16 800 +9% Autumn Winter 1 300 +5% Spring 2 200 +6% Summer 2 800 +41% Autumn Source: Rudolf data base, Statistics Finland
Trends for seasonal overnights in Finland Indian visitors 25 000 High winter season (12-02) High spring season (03-05) High summer season (06-08) High autumn season (09-11) 20 000 15 000 10 000 5 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Visit Finland Statistics Service Rudolf, Statistics Finland