The India Outbound Tourism market is fragmented and with India being a Large Country it comes with it’s own Share of Challenges, Traditionally Tourism Brands and Tourism boards have focussed on the Big Cities for Travel PR activities and acquiring Business. However with the changing technology, growing Investment in Tier 3 and Tier 4 Cities the tide is turning. Selling to the Indian Outbound Tourism is no longer about selling only in Delhi, Mumbai, and Kolkotta but more efforts need to be directed to Bengaluru, Chennai, Pune and Hyderabad. True the 3 main cities still hold potential but the true potential of growth for the Indian Outbound Tourism comes today from it’s cities which have just moved from Tier 2 to Tier 1 and other growing Cities in Tier 2 and a robust plan is needed for Tier 3 and Tier 4 as these would be ready to propel India’s Growth in the next couple of years.

While reading a News article about 5G Spectrum sales, a few things mentioned there got me to think how the India Outbound Tourism segment would benefit from this changing scenario.

The Key here is the fact that 5G is slated to be the Catalyst for propelling India’s Digital Economy which can reach $ 1 Trillion in the next 6 years. This information coupled with something else I had read installs the confidence in me that the future growth of India Outbound Tourism would come not from our main Cities but from Cities that have just crossed over from Tier 2 to Tier 1 cities and Cities still ranked as Tier 2 cities and a robust Plan for Tier 3 and Tier 4 cities.

One just needs to connect the dots here. Why are the Tier 2 Cities spending upto 30 times more on Luxury Goods than the Tier 1?
If one has followed India’s growth, A lot of investment went into creating IT Hubs in all these cities, which in turn created huge employment which in turn led to a lot of people moving in and as is the case over time these people are now at home in these cities and probably started calling this home, Technology has evolved since then, the Younger Gen who would be the catalyst in the growth of Indian Outbound Tourism are moving past from the norm of 2 holidays a year. The trend is now a lot of small breaks and a couple of big ones. Experiential is the new Buzz word.  As a matter of fact Experiential journeys have been trending in India for sometime now. There was more interest in Northern Lights which even though expensive is something which nearly doubled in terms of numbers from India.

One good thing happening in India is that the trend is now moving towards Tier 3 and Tier 4 cities, India has the largest Pool of Young People (600 Million) and they are ready to change the dynamics of the World. (Guardian did an Interesting Article on this – Read it here) With more development happening in Tier 3 and Tier 4 cities, they are now emerging hubs for the SME’s (Small & Medium Establishments). With Little to no competition at this stage and a large pool of young population which is employable, the next few years would be very interesting (Source The Enterprenuer ). As seen in the Tier 2 cities, once the Tipping point is reached in Tier 3 and subsequently in Tier 4 cities, the younger generation armed with financial freedom is likely to follow the same pattern of going experiential and Travel would be on the Top of the list.

This ties in very well for us and gives us the confidence that India would be in the Drivers seat for the Global Tourism Market and as the Tier 2, 3 and 4 start maturing we would be contributing to every major destination from Bali, Thailand and Malaysia to Japan, Korea, Australia, New Zealand in the East and from Dubai, Turkey to whole of Europe and Amercias in the west. It is all a Question of knowing where you need to sell and how you need to sell.

Want to Sell to India but not sure how. Read this Artcile to clear to understand more about the Destination.

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