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Tourism Intelligence International

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Snapshot Emerging Markets Outbound Travel Profile


Country

Age

Purpose of
Visit

Internet

Travel party

Length of
Stay

Seasonality

Travel Decisions

Accommodation

Brazil

28-45 yrs: 48%

Holiday 63%
Business 33%
VFR 4%

42.6 million

Alone 49%
Group 27%

15.4 days for


leisure

July-Sep 30%
Jan-Mar 29%

< 1 week 5%
1 wk 1 month 18%
1 3 months 40%
> 3 months 37%

Hotels 58%
Family/Friends 32%

China

35-44 yrs -32%

Holiday 53%
Business 12%
VFR 23%

210 million

Alone 40%
Group 45%

4-7 nights (34%)

Jul-Sep 38%
Jan-Mar 21%
Oct-Dec 23%

< 1 week 6%
1 wk 1 month 20%
1 3 months 46%
> 3 months 28%

Hotel 58%
Family/Friends 25%

Eastern Europe
Belarus

5.5 million

Bulgaria

2.2 million

Jul-Dec 54.8%

Czech Rep.

25-34 yrs: 43%

Holiday 21%
Business 43%
VFR 24%

5.1 million

Alone 52%
Group 32%

1-3 nights (51%)

Hungary

25-34 yrs *

Holiday 73.3%
Business-10.3%
Other 16.4%

3.0 million

Alone 49%
Group 17%

1-3 nights 48% *

Holiday 89.7%
Business-4.7%
Other 5.6%

0.729
million

Holiday 44%
Business-19%
Other 23%

11.4 million

Moldova

Poland

35-44 men
16-24 women

Travel & Tourisms Top Ten Emerging Markets

Hotel 22%
Family/Friends 34%
Jul-Sep 39% *

< 1 week 14%


1 wk 1 month 14%
1 3 months 34%
> 3 months 38%

Hotel 30% *
Family/Friends 26%

Jul-Sep 37% *

< 1 week 16%


1 wk 1 month 23%
1 3 months 30%

Hotel 21% *
Family/Friends 54%

6-7 nights

Alone 49% *
Group 38%

1-3 nights (38%)


4-15 nights
(38%) *

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Tourism Intelligence International

VFR 14%
Romania

Holiday: 49%;
Business: 14%;
VFR: 37%

Slovakia

> 3 months 31%


7.0 million

2.5 million

Ukraine

India

Holiday: 25%;
Business: 35%;
VFR: 40%

5.5 million

Holiday: 35%;
Business: 30%;
Other: 5%
Shopping: 30%

120 million

Russia

25-34 *

Holiday: 68%;
Business: 20%;
Other: 12%

28 million

South Africa

25-54 (75%) *

Holiday: 58%;
Business: 39%

4.8 million
(10% of
population)

United Arab
Emirates

35-54 (56%)
male
25-34 (43%)
female

Holiday 29%
Business-18%
Other 14%
VFR 39%

1.7 million

45

Jul-Sep 34% *

8.9 days

Alone 52% *
Group 13%

Alone 52%
Group 12%

1.3 ngts *

Jul-Sep 39% *

15.9 days *

Jun Sep

>15 28%
4-7 nights 26%

Jul-Sep 37%

Travel and Tourisms Top Ten Emerging Markets

< 1 week 8%
1 wk 1 month 26%
1 3 months 33%
> 3 months 33%

Hotel 22% *
Family/Friends 34%

Hotel 27% *
Family/Friends 56%
< 1 week 12%
1 wk 1 month 25%
1 3 months 28%
> 3 months 35%

Hotel 21% *
Family/Friends 61%

Opportunities and Constraints

Tourism Intelligence International

1.7

Opportunities

There are a number of opportunities and


constraints that are associated with targeting the
emerging travel markets. These are identified
below.
1.7.1
 The emerging market economies are growing
rapidly.
 Outbound travel from the emerging markets is
rising with double-digit rates of growth.

seeking

 Travel to foreign countries is an important


status symbol for many of the emerging
markets.
 Businessmen
are
actively
opportunities in foreign countries.
 The governments of many of the emerging
markets are actively trying to solidify and
build international relations, trade and travel.
 The citizens of the emerging markets are
highly social and enjoy travelling to visit
friends and relatives.
 A large portion of emerging-market citizens
has friends and relatives living abroad (Brazil,
South Africa and India in particular).
 Emerging-market travellers are young and
active.
 Emerging markets have unique cultures that
are different from many other destinations.
Interest in experiencing other cultures is quite
high.
 Emerging market travellers are not afraid to
travel alone.
 Travel from emerging markets is a new
phenomenon and the potential for future
growth is enormous.

Travel & Tourisms Top Ten Emerging Markets

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Growth potential

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Constraints

Poor income distribution within emerging


market economies.

1.7.2

 Because emerging markets do not have the
level of demand typical to traditional markets,
there are few direct flights to most
destinations.
 Limited demand also makes international
travel relatively expensive.
 Emerging markets typically require a visa to
travel to most destinations. A few exceptions
exist as in the case of travel by Eastern
Europeans within Europe and travellers from
South Africa to the UK.

1.8
Capture the Shopping Spend

Implications for Travel Business

 Also, limited demand as well as limited or


non-existent trade relations from these
emerging markets with other countries means
limited or non-existent consular presence at
these countries, making acquiring visas
problematic.

1.8.1

Tourism Intelligence International

Travel and Tourisms Top Ten Emerging Markets

The economies of emerging markets are growing


fast. This means that there will be more money
flowing in the hands of citizens of these
economies. Travel businesses have to therefore,
become very creative as there will be a lot of
competition for the wallets of these new
travellers. Many of these emerging-market
travellers like the Russians and Indians will spend
a lot on shopping for luxury consumer goods.
Travel businesses will have to cater to their needs.
They ought to create new and innovative ways to
capture the shopping spend from the emerging
market travellers and create innovative shopping
experiences and events. High-society fashion
shows, creative cultural exhibits and shows, local
art and craft, etc. could have an important impact.

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Tourism Intelligence International

1.8.2 Do not Underestimate Emerging


Market Travellers

Cater to Cultural Needs

Travellers from emerging markets are well


educated and see travel as a status symbol. It is
very easy to misjudge and underestimate them
because of their differences. Although they are of
a different culture and ethnicity, they ought not to
be slighted in anyway. They can be quite
demanding. They are generally big spenders and
demand respect and acceptance.
Travel
businesses need to ensure that they conduct racial
and cultural-sensitivity training for their
employees. This is a completely new territory
that we are threading on and therefore every effort
needs to be made to ensure that no stone is left
unturned in this regard. A key success factor
continues to be knowing your customer!
1.8.3
Many emerging markets have a completely
different culture from the Western world. And
while training is a good start, there is more that
needs to be done. Travel businesses need to cater
to the needs of these new travellers. While they
are curious to find out more about the culture at
the destinations they visit, one cannot expect to
force the Western way of living on them while
they are on holiday. Many up-market Indian
travellers are known to have travelled with their
personal chef while on vacation because they are
not sufficiently satisfied with the cuisine of their
destination. Travellers from the UAE have
special needs because of their religious
background. Provision of halaal meat (a special
way of preparing meat for Muslims), for example,
should be considered if destinations and travel
businesses want to attract these new travellers.
Take a page out of the book of experiences of
Disney. Their site in Paris nearly went bankrupt
because of their cultural insensitivity to the
French market. Success only came after food and
drink for customers as well as dress codes for
staff were altered to cater to the French market.
Travel & Tourisms Top Ten Emerging Markets

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Wow them with Technology!

They certainly did not repeat this mistake at their


site in Japan.
1.8.4
Emerging-market
travellers
are
very
technologically inclined and savvy. Use of stateof-the-art technology is a must if you want to
attract these new travellers. The Internet is
necessary as many are researching and planning
their trips online and the numbers are growing
apace. Many new technologies are already
mainstream in some of these markets. There are
more mobile phones in India and China than there
are landlines. Using mobile technology is crucial.
Mobile advertising will be welcomed with open
arms in emerging markets. Use of video
messaging, Skype, Facebook and many other
social technologies should not be neglected either.
1.8.5 Tailor Marketing Efforts to the Young
and Hip Emerging Traveller
Emerging market travellers are relatively young
and are very vibrant, hip and happening.
Marketing to this market must be different from
the more traditional markets that are dominated
by an aging population. Their needs, interests and
motivating factors will be different and therefore
marketing, pricing, products, brands and
promotions will need to be tailored to these new,
younger markets and travellers. Dont think that
advertising sun, sand and sea as was done with
European markets, will work for the Chinese and
Indians for instance. No! These markets want
cultural experiences, shopping, city tours, sightseeing and status-seeking adventures.
1.8.6 Do Not Forget about their Friends and
Family

Tourism Intelligence International

Travel and Tourisms Top Ten Emerging Markets

As indicated, emerging markets have a lot of


friends and relatives abroad. They prefer to stay
at these friends and family members homes
instead of hotels. Marketing to these travellers
will therefore need to be done differently. In fact,
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