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Travel and Tourism in India

India tourism market: One of the pillars of growth for GDP

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2014-03-31 12:28:04 - Travel and Tourism in India - a new market research report on

The India Ministry of Tourism, through a tie-up with various state tourism boards, continued to push travel and tourism with the help of television commercials. State tourism boards linked with advertising firms such as Ogilvy & Mather to promote individual state tourism and the various elements that states had to offer to tourists. Apart from the Incredible India campaign, states such as Madhya Pradesh, Gujarat, Rajasthan and Maharashtra, among others, launched new television commercials in order to increase the inflow of both international and domestic tourists to their states.

Airlines suffered a bad year in terms of profits due to increasing airport taxes and turbine fuel costs. The rising costs resulted in the airline companies transferring increases to prices for customers,



thereby hindering the growth of airline bookings. These also resulted in the growth of and a shift in preference towards low cost carriers during the year.

The concept of travelling witnessed a shift among young urban consumers. Travelling was no longer limited to a single annual holiday with the family. Consumers in 2012 started to travel for adventure sports, photography, wildlife, heritage, buildings and more. There were more backpackers in 2012 as compared to previous years, a concept which continued to be niche and limited to very few consumers.

Airline companies, travel agents and tour operators all started to utilise the entertainment business for their marketing. Product placement and becoming the official travel partner of a certain movie provided significant publicity for companies and was among the most sought after new marketing techniques in 2012. Social media websites such as Facebook and Twitter were extremely popular for promoting flash sales among the consumer base.

Travel and tourism became one of the pillars in the growth of GDP of the country during the year. However, the continued devaluation of the Indian currency resulted in an inhibited growth of outbound tourism. This continued devaluation will result in more consumers travelling domestically or to cheaper destination countries. Further devaluation would not allow outbound tourism to grow to its full potential in the forecast period.

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