ICICI Lombard Travel Trends September 25, 2014 1
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 2014 2
Sample Size City Sample Achieved Mumbai 240 Kolkata 204 Hyderabad 240 Ahmedabad 190 Chandigarh 189 Total 1063 3
Findings 4
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
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
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
Changing pattern in leisure travel 8
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
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 : 142 10
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
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
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
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
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 9 9 18 57 Base : All those coded increase in: 158 overseas trips 15
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
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
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
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
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
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
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 53 52 Decrease in travel fares Group tours/packages 26 Group tours/packages Decrease in travel fares 19 22 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 15 12 11 11
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 64 78 92 53 76 Adventure/Wildlife 73 74 72 41 8 Culture/heritage/history Tourist Season OR Promotional activities in that city/country 11 39 58 51 37 64 30 36 23 72 Unexplored/virgin destination 17 16 72 60 23 Religious 78 29 44 9 2 Spirituality 40 15 12 4 6 Holistic healing/yoga 57 11 7 8 15 Cuisine 31 19 21 4 10 Shopping 18 40 13 14 10 Medical Treatment 11 9 2 5 1 131 142 : 728 161 129 165 Base : All those travelled overseas 23
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 73 41 80 61 56 Culture/heritage/history 56 51 69 32 40 Religious 80 20 57 21 19 Adventure/Wildlife 64 38 63 23 7 Tourist Season in that city 18 38 50 8 53 Unexplored/virgin destination 8 2 46 38 23 Spirituality 35 2 14 23 5 Holistic healing/yoga 51 3 14 20 6 Cuisine 26 4 12 18 8 Medical Treatment 3 12 3 17 71 1 107 Base : All those travelled domestic 24 460 95 93 94
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 62 50 40 39 35 23 15 18 13 25 Medical Treatment Base : All those travelled overseas: 728 Base : All those travelled domestic: 460 Medical Treatment 7
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 93 88 88 89 85 Salary Bonus 4 8 39 11 12 Funded by family/sponsored 7 15 30 2 6 Leave travel allowance 2 9 20 2 11 Encashed accumulated travel miles 0 2 18 1 131 24 142 Base : All those travelled : overseas 728 161 129 165 1 26
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 98 88 82 69 81 Salary Bonus 4 5 20 13 10 Encashed accumulated travel miles 0 3 14 1 35 Funded by family/sponsored 6 2 21 18 1 Leave travel allowance 2 16 17 0 5 Took a loan/emi 0 0 10 0 71 0 107 : 460 95 93 94 71 107 Base : All those travelled domestic 27
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 10 12 9 8 Encashed accumulated travel miles Took a loan/emi 2 Base : All those travelled overseas: 728 Base : All those travelled domestic: 460 28
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: 460 29
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
Ranking the overseas locations 1 2 3 4 Safety Infrastructure Disaster Management Medical Facilities Overall Best 2 3 2 2 20% Dubai / UAE 3 2 3 3 16% Thailand 1 1 1 1 24% Singapore 31
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 : 161 32 Base All : 129 Base All : 165
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 : 95 33 Base All : 93 Base All : 94
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
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:450 35 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:166 23 10 8 4
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
Summary 37
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
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
Thank You 40