Evaluating business opportunities into the Indian high net-worth individuals segment, in the luxury travel market

Abstract

According to multiple International Reports, India is considered one of the fastest growing outbound travel markets in the world. International tourism departures from India have grown from 3.7 million in 1997 to 9.8 million in 2007 and international tourism expenditures have increased from US$ 1.3 billion in 1997 to US$ 8.2 billion in 2008. On an average, Indians spend nearly US$ 1,789 per person per leisure trip. India’s increasingly affluent class is growing rapidlyi. At the same time, its per capita income is increasing by around 5% a year, and its per capita expenditure is rising twice as fast. India outbound tourism is poised to grow at a very fast pace over the forecast period 2010-15 on the back of a strong Indian economy which has registered an average growth rate of 8% over the last 6 years according to Euro monitor. During this period outbound tourism is expected to grow with CAGR of 12%i. Rising incomes, changing attitudes and the desire to travel to luxurious destinations abroad are influencing tourists’ choice of destinations. Indian travellers are broadening their horizons and are increasingly opting for opulent European destinations such as the UK, France, Italy and Switzerland over the traditional destinations such as Middle East, Singapore, Thailand and Malaysia.