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 of the summer season, especially with regard to Finland? What are the prospects for the coming winter season? Other important things to pay attention to Trends and other travel related topics Facts and figures
What factors have affected the results of the summer season, especially with regard to Finland? Reasons for the increase/decrease in travelling to Finland? Some of the reasons for the outbound growth are: GDP growing over 7 %, growing air connectivity with LCC s expanding its footprint in India, urban middle class expected to cross over 500mn marks by 2025 (McKinsey), growth of woman business travelers by 891 % by 2030 which is currently pegged at 25 % of the total business travel and rise in senior travelers to 7.3 million by 2030 from 1.3 million in 2013. Joint events (marketing & publicity) with Embassy. Actively in touch with TA/TO and support from Finnair. Every year, more than 5.4 million Indians go abroad to conduct business, attend meetings, study, sight-see, shop, honeymoon and especially to visit friends and relatives (VFR). The volume of outbound travel is increasing about 25% a year. According to UNTWO, Indian outbound has potential to grow to 50 million by 2020. Number of nights spent by Indian travelers to Finland increased in this summer (June-August 2017) as compare to last year summer, by 41 %, from 15,800 to 22,200. Helsinki area accounted for 15 000 of those nights, and Helsinki also showed biggest growth in absolute figures (+2700 nights, 22 %). There was 84 % increase in nights spent at coastal & archipelago and remarkable increase of 270 % for Lapland. Lakeland got 48 % more overnights as well. We achieved these numbers without having a full time representative to sell the product. Successfully approached TA/TO for selling Finland as tourist destination. It is also so that Indian travelers wants to explore new destination in Europe and Finland provides real experience of nature, northern lights, Lapland, husky safaris etc.
What are the prospects for the coming winter season? The overall outlook of travelling to Finland for the coming winter? Its is expected to have a steady growth in winter season too. Group visits (MICE/Students) are ready with few TA/TO for coming months. Interest towards Lapland (especially Rovaniemi) increased, this was to experience the northern lights and glass igloos etc. Monthly night spent by Indian travellers in Finland are growing and growth rate increased by +37,4% How attractive are round trips (visiting at least two Nordic countries or at least two destinations in Finland)? Two-three Nordic countries package seems more interesting for the Indian travellers instead of travelling to Finland exclusively. We have to make sample itineraries for TA/TO, they don t have much knowledge/information of preparing 7-10 days exclusive Finland package. What trends should be considered in product development to increase the demand in the winter time? Educate TA/TO, media promotion e.g. creative social media, endorsements, newspaper, advertisement etc., joint promotional activities with other Team Finland players. Which target groups should be considered to increase the demand? In new target groups, we can include youth, females, elderly groups, well-seasoned travelers, adventure traveler, group travelling to other part of Europe with Finnair, targeting selective large Finnish or Nordic companies. Going by Indian travelers profile, of the total outbound travel 40 per cent is business travelers, 20 per cent (leisure), 20 per cent (VFR) and 20 per comes under others including students..
What are the prospects for the coming winter season? Marketing opportunities Meeting event/s with TA/TO to motivate them in selling Finland as a tourist destination, helping them with visa issues, providing them few sample itineraries which help them to sell Finland as Tourist destination. Team Finland synergy: Finnish Embassy is organising Northern lights exhibitions in different States and in neighbouring countries, VF can support & participate in such activities for next year. A brief presentation about Finland offering (hotels, Indian meals, logistic options etc.) for tourism promotion, sample itineraries, contact info of TA/TO in Finland in one ppt, - Marketing material, brochures, gift or token e.g. pen drive (with VF presentation or offering) or pen with VF branding etc.
Other important things to pay attention to New distribution channels, online channels VF should engage with media (social & commercial), attend travel events/exhibitions (e.g. SATTE in 31 st Jan 02 nd Feb 2018). Should create promotional material with Indian faces. More actively participate & distribute brochures in Team Finland events, make few sample itineraries (e.g. Finland- Estonia-Sweden or Finland-Russia-Estonia or Finland-Estonia-Sweden-Norway). Sponsor Students/MICE-Corporates/TA-TO FAM trips. Can have joint promotional activity with big brands (Maruti-NEXA, Future group, Reliance, H&M), normally these brands gives offer to their customers during festive seasons, year end & financial year end and then VF & Finnair can jointly participate with one of the brand to create awareness by sponsoring winner couple flight, 4-5 days accommodation expenses or sponsor free trip for winner (couple) to Finland.
Other important things to pay attention to Competitors actions According to statistics, Dubai, USA, Thailand, and Singapore are the top choices for Indian outbound tourists. The UK, Australia, Indonesia, Turkey, Oman, Sri Lanka and Maldives are the other conventionally most visited countries by Indian travelers. In recent times, countries such as Canada, Philippines, Mauritius, Jordan, Taiwan and Kenya are also showcasing an increase in Indian tourists rush. Sri Lanka eyes on its neighbour (India) for tourism growth and expects 1 million tourists by 2020. Statistics suggests that Dubai, USA, Thailand and Singapore have already welcomed 1 mn+ Indian guests and aiming to have a consistent double-digit growth. The UK, Australia, Indonesia, Turkey, Oman, Sri Lanka and Maldives have already set their targets for the Indian market. Countries like Canada, Indonesia, Philippines, Mauritius, Jordan, Taiwan and Kenya amongst others are also seeing an increase in influx of Indian tourists. In keeping with the rising trend and with NTOs eyeing double digit growth, many of them have increased their budgets for India by 15-20 %. In fact, a few have even doubled their budgets and been innovative to waive visa fees. According to the officials of the German National Tourist Office (GNTO), Germany has emerged as the number one tourist destination for Indians coming to Europe. Last year, Germany witnessed around 0.75 million visitor overnights from India. This year they are hoping to attract around 0.8 million Indians. 1 Czech Republic witnesses 40 % growth in Indian tourist arrivals. 2 Holland recorded a growth of over 19 % in Indian arrivals to Holland from January to March this year. 3 1. https://mediaindia.eu/news-india-outbound/germany-keen-to-tap-tourism-potential-in-india/ 2. https://mediaindia.eu/global-travel-trade/czech-republic-witnesses-40-pc-growth-in-indian-tourist-arrivals/ 3. https://mediaindia.eu/news-india-outbound/holland-welcomes-outbound-indians/
Other important things to pay attention to Free word Something else that you would like to say to the Finnish travel trade or Visit Finland VF has to participate in trade exhibition (e.g. SATTE 2018 in New Delhi) as an exhibitors and involve Finnish DMCs to participate. To create more awareness in the Indian market to promote tourism towards Finland. Visa issue (1. processing time and 2. shorter duration of visa). Visa process especially for FIT s needs to be clarified with consulate.
Facts and figures Share of overnights by regions 2016 80 000 60 000 40 000 20 000 0 40 000 30 000 20 000 10 000 0 Indian Overnights in Finland 2000-2016 Indian Overnights by Season 2011-2017 2011 2012 2013 2014 2015 2016 2017 Winter season (11-04) Summer season (05-10) 54 656 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 68 % 14% 9% 9% Indian travelers mainly travel to Helsinki Finnair s direct flight Most Indian families live in Helsinki Travelers use stopover to Helsinki Most of the travelers travel on business trips Demand towards to experience the northern lights in Lapland is increasing Most Indian travelers travel to Finland in summer In winter, the holiday period is 1/3 of the summer holidays Big increase in the number of Indian travelers in winter season 2016/17 in Finland Duration of stay in winter is longer than in summer Sources: Statistics Service Rudolf, Visit Finland Market Review by Jukka Holappa 6/2017
Indian overnights in Finland High seasons: winter 2016-2017 and summer 2017 India High winter season (12-02) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY 15 581 58,5 HELSINKI METROPOLITAN AREA 8 863 45,5 LAPLAND 2 932 56,8 COAST AND ARCHIPELAGO 2 652 143,8 LAKELAND 1 134 45,6 India High summer season (06-08) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY 22 182 40,7 HELSINKI METROPOLITAN AREA 15 041 21,6 COAST AND ARCHIPELAGO 3 094 84,1 LAPLAND 2 486 270,5 LAKELAND 1 561 48,4 Source: Visit Finland Statistics Service Rudolf, Statistics Finland
India Latest overnight figures Jan-Aug 2017 Nights spent Nights spent 1.1.2017 1.2.2017 1.3.2017 1.4.2017 1.5.2017 1.6.2017 1.7.2017 1.8.2017 Jan-Aug 2017 Foreign 620 923 554 293 525 188 347 658 416 440 602 652 798 823 757 726 4 623 703 1. Russian Federation 154 409 55 321 52 965 42 747 48 352 55 395 87 956 89 739 586 884 2. Germany 41 398 51 930 50 654 27 963 34 564 82 517 96 421 94 102 479 549 3. Sweden 24 499 26 657 39 566 38 573 51 241 61 471 125 744 81 508 449 259 4. United Kingdom 62 864 60 823 34 240 22 784 25 425 34 549 33 856 39 486 314 027 5. China and Hong Kong 35 355 29 487 20 672 13 490 22 466 39 123 42 987 43 979 247 559 6. France 42 309 47 222 36 275 10 506 12 758 16 650 20 006 22 597 208 323 7. United States 11 969 13 178 17 942 12 203 24 735 36 342 35 968 40 392 192 729 8. Netherlands 36 442 37 586 24 258 9 451 10 956 17 214 20 413 20 234 176 554 9. Japan 16 194 20 099 23 356 9 309 14 458 18 803 25 792 31 158 159 169 10. Norway 8 188 15 319 21 371 20 265 11 491 16 306 35 322 18 682 146 944 11. Estonia 16 234 18 198 17 829 13 220 14 033 14 923 22 544 18 989 135 970 12. Switzerland 17 636 19 462 13 331 6 500 7 591 15 971 34 527 19 186 134 204 13. Italy 13 356 9 762 11 782 7 278 7 370 12 678 17 408 28 290 107 924 14. Spain 10 320 8 406 10 897 10 581 6 770 12 210 15 783 23 728 98 695 20. India 5 818 4 834 4 988 5 296 8 695 9 555 6 500 6 127 51 813 Change of nights spent, % 1.1.2017 1.2.2017 1.3.2017 1.4.2017 1.5.2017 1.6.2017 1.7.2017 1.8.2017 Total foreign 19,4 20,2 23,7 16,3 11,7 12,2 11,2 11,6 India 77,2 40,6 14,3 36,2 32,9 41,4 32,1 49,8 India Nights spent Change of nights spent, % Jan-Aug 2017 Jan-Aug 2017 WHOLE COUNTRY 51 813 38,9 HELSINKI METROPOLITAN AREA 34 747 31,2 COAST AND ARCHIPELAGO 7 113 72,1 LAPLAND 5 682 64,3 LAKELAND 4 271 32,8 Source: Visit Finland Statistics Service Rudolf, Statistics Finland