Shaping the future of travel in India
The big FOUR travel effects

January 2013

Shaping the future of travel in Asia Pacific 2

Contents
Foreword The potential of the Indian traveller Low penetration of travel The Me Effect: Changing types of travellers The growth of the business traveller The female business traveller The VFR traveller The young traveller The Red Tape Effect: the breaking down of barriers to travel Barriers still impeding Indian travellers The Leapfrog Effect: technology changing the way that Indian travellers behave The rise of mobility The collaborative traveller – India leading the way The need for capacity at the budget end of the market The need for greater budget airline infrastructure Infrastructure – the cruise opportunity The rail opportunity The Barbell Effect: growth at the upper and lower ends of the travel market in India The Indian luxury traveller The growth of the budget traveller Summary: The changing face of the Indian traveller Appendix Our approach Contributors 3 4 4 5 6 7 7 8 9 10 11 12 13 13 14 14 15 16 17 17 18 19 19 19

Shaping the future of travel in Asia Pacific 3

Foreword
While the 21st century has been termed the “Asian Century”, the term “Indian Century” is equally apt as the tremendous pace of economic development in India will drive the country to a leading place in the global economy along with other markets such as China. In terms of the travel industry, India represents the emerging giant of the Asia Pacific travel market, as the number of Indian travellers will grow exponentially over the next 20 years. But alongside growth in traveller numbers, the nature of the Indian traveller will also change as a series of geopolitical, economic, social and technological effects combine to change the way that Indian travellers behave, with consequent impacts on the travel industry. This report follows on from our report “Shaping the future of travel in Asia Pacific; The big FOUR travel effects” and analyses the geopolitical, social, economic and technological trends that will have the greatest impact on the Indian travel industry over the next 20 years. Primarily, we have sought to further understand the implications of changing traveller behaviour on the travel industry, comprising transportation companies (airlines, rail operators etc.), accommodation and entertainment providers and intermediaries such as travel agents. We have found that India represents an enormous opportunity for travel providers, but one that needs to be understood to be fully capitalised on. By further understanding the changing face of the Indian traveller, we believe that travel providers will be well positioned to benefit from the enormous opportunity that India represents. Of course, these different effects and the various statistics will be of varying relevance to different elements of the industry – and I would encourage any interested party to review and draw their own conclusions. The points this research and white paper undeniably highlight, however, are the opportunities that Asia Pacific now has to regain the leading position on the global stage that reaches well beyond travel, but which it is inextricably linked to. David Brett President, Amadeus Asia Pacific Happy reading!

Shaping the future of travel in Asia Pacific 4

The potential of the Indian traveller
India is the emerging giant of the Asia Pacific travel market. Currently the proportion of the population who travel internationally is the lowest of the major countries in the region, with outbound departures representing just 1% of the total population. Indian travellers currently account for a small percentage of travel expenditure across the region. Over the next 20 years this will change as India emerges as a travel giant, driven by economic growth that will push hundreds of millions of Indians into the middle class, with the financial capacity and desire to travel. Along with greatly increased travel capacity as airport infrastructure improves and airline services increase, and a lowering of impediments to travel such as visa restrictions, we anticipate at least a six-fold increase in outbound travellers from India over the next 20 years. This low propensity to travel can be explained by a number of factors, including the financial inability of most Indians to travel. The vast majority of the Indian population survives on an income of less than $2 per day, with the number in the middle-class (generally defined as having an income in purchasing parity terms of >$4 day per person) estimated at about 57 million in 2011, or only 5% of the total population. 1 Added to this are infrastructural issues and other barriers to travel, such as visa restrictions which act as additional impediments to travel. However, the potential of the Indian travel market is enormous. Over the past five years outbound travel from India has more than doubled, reflected in strong growth in outbound travel from India to all Asia Pacific destinations – Indian travellers to NE Asia, South Asia, SE Asia and the Pacific are increasing at 10% annually or more. We anticipate that as the numbers of middle class Indians grows exponentially over the next 20 years that traveller numbers will continue to boom. In line with this strong growth in absolute numbers, we are also seeing changes in the types of Indians travelling and the way that they are travelling, as Indian travellers become more distinctive.

Low penetration of travel
In 2010 India generated just under 13 million outbound travellers in total and around 4.5 million travellers to Asia Pacific destinations (excluding USA and Canada). This represents fewer arrivals to Asia Pacific destinations than was generated by Australia, which has 1/50th of the population. India, therefore, remains a largely untapped travel market with by far the lowest travel penetration of the major Asia Pacific economies.
Figure 1: Proportion of travellers who use smartphones for travel-related arrangements and bookings (2012)

60% 50% 40% 30% 20% 10% 0%

Singapore Korea Japan Indonesia
Leisure Travellers

India

China

Australia

Business Travellers

Sources: WTO Compendium of Tourism Statistics, UN Population Division

1

ADB, Asia’s Emerging Middle Class: Past, Present, and Future, 2010

The Me Effect Changing types of travellers

Shaping the future of travel in Asia Pacific 6 The Me Effect

“We are seeing the Amazonification of the world: this means that service suppliers are having to customise their offerings more and more to the needs of specific individuals (segments of one). So a hotel needs to tailor its offer to each customer, based on the customer’s profile and past behaviour.”
Puneet Mahindroo, Ex-Corporate Director of Reveneue Management and Global Distribution, Taj Hotels, Resorts and Palaces

Around 41% of the 4.5 million Indian travellers to Asia Pacific destinations in 2010 are business travellers.2 Our research indicated that the bulk of Indian business travellers (86%) are in the 18-30 and 31-49 age brackets, and although male business travellers are in the majority, there is a reasonably significant portion of female business travellers (23%), particularly compared to other Asian markets. The most common destinations for business travel are currently Singapore, the UK and North America. However the Middle East is also becoming a commonly visited business destination, visited by 28% of Indian business travellers over the past 12 months.

The growth of the business traveller
The strongest growth in travel from India in recent years has been by business travellers, with an almost five-fold increase in travel expenditure for business reasons over the past five years. As many Indian companies have become increasingly internationalised, Indian business travellers are becoming increasingly common.
Figure 2: Outbound travel expenditure for business and professional reasons
(Bio $)

5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 2006 2007 2008 2009 2010

Source: WTO Compendium of Tourism Statistics

2

WTO Compendium of Tourism Statistics

Shaping the future of travel in Asia Pacific 7 The Me Effect

The female business traveller
Female travellers are an increasingly important segment of the Indian travel market, for both leisure and business travel. Our research indicated that women now account for 23% of business travellers, with over 1 million female business travellers in 2011. However a number of social and economic trends will cause this number to grow significantly by 2030. These include increasing workforce participation by women, the trend towards marrying later with fewer children, and the increase in single women. Women currently have a much lower representation in mid-senior management in India than in other countries across the Asia Pacific region. 3 However with 42% of all graduates now female, the proportion of women in the mid-senior executive ranks where business travel is required is likely to grow significantly. We estimate that over the next 20 years, international business travel by females from India could grow almost ten-fold to more than ten million annual business departures. This huge increase is caused by both enormous growth in overall business travel from India coupled with significantly enhanced representation by women in the mid - senior executive ranks of Indian businesses.
Figure 3: International business departures by women, 2011 – 2030
(Mio) 34 33 . . . . 13 12 11 10 9 8 7 6 5 4 3 2 1

The female Indian business traveller is amongst the most significant growth segments of the Indian travel market, and represents an opportunity for travel providers that barely existed a few years ago. But there are other emerging segments that are also likely to represent significant opportunities for travel providers.

The VFR traveller
Although leisure travel can occur for a number of reasons, visiting friends and relatives (so-called VFR travel) is increasingly important, especially for Indian travellers. With both relatives and social relationships becoming internationalised, VFR travel is increasing significantly. This is particularly the case for countries like India which have large diasporas. Our research indicated that over two thirds of Indian travellers have close relative members living overseas – the highest in the region – with North America, Australia and the UK the most common locations. Over 90% of Indian travellers expect to visit family members overseas in the future, with most expecting to visit multiple times. Among Indian leisure travellers, our research indicated that 43% states VFR as the main reason for leisure travel, by far the highest proportion in the region. India is now, for example, the largest source of permanent migrants to Australia, and this creates a spurt in demand for VFR travel. The VFR traveller often behaves differently from the standard vacation traveller, often travelling for longer periods for example and not using hotels but lodging with friends or relatives.

+232%

+891%

“100 million living abroad from India, so visiting relative is still critical.”
Ankur Bhatia, Director, Amadeus India

+288% +25% Australia
2011

+71% +24% +32%

China
2030

India

Indonesia Japan Korea Singapore

Source: Frost & Sullivan estimates

3

McKinsey & Co: Women Matter: an Asian Perspective, 2012

Shaping the future of travel in Asia Pacific 8 The Me Effect

The young traveller
India is one of the ‘youngest’ countries in the Asia Pacific region with 32% of the population (or around 400 million individuals) currently in the 20-39 age bracket, and unlike many other countries, this proportion will not change significantly by 2030. This huge population of younger people represents an enormous growth segment for travel, as increasing economic independence from their parents allows younger Indians to travel for the first time. Our research indicated that 23% of Indian leisure travellers are currently aged under 30. For this age group, holiday or vacation is the most common reason for leisure travel, much more significant than for older age groups for whom VFR travel is more important. And the 18-30 age group is much more likely to travel solo – 20% of 18-30 travellers generally travel alone for leisure reasons compared to only 8% of the 31-49 age group who are much more likely to travel in a family unit. Perhaps most interestingly, solo travel is increasingly occurring amongst younger females, with almost 25% of females aged 18-30 indicating that they most often travel alone for leisure reasons. These Generation Y travellers represent another significant opportunity for travel providers, and are potentially a huge growth market. But they need to be addressed in different ways – younger travellers are more likely to book directly using the internet than rely on travel agents or other family members to make bookings for them. And younger travellers are much more likely to take advice and recommendations on travel from friends, often via social media.

The Red Tape Effect the breaking down of barriers to travel

Shaping the future of travel in Asia Pacific 10 The Red Tape Effect

Travellers want more convenience. Visa processes - get rid of the red tape. This will help boost travel.”
David Brett, President, Amadeus Asia Pacific

Barriers still impeding Indian travellers

“India is another market with huge potential but the degree to which that potential will be realised is less certain. India still needs huge investment in travel infrastructure. If they can achieve infrastructure enhancements they will become much more relevant.”
Jayson Westbury, CEO, Australian Federation of Travel Agents

While the Indian travel market offers huge potential, a number of barriers need to be overcome for this potential to be fully realised. These include infrastructure issues such as airports, as well as visa and other travel impediments. India’s 17 international airports are sometimes groaning under the strain of the huge increases in traveller numbers from 40 million in 2000 to over 140 million in 2011 and 280 million envisaged by 2020,4 with transit times, check-in times etc often well below international best practice. This often provides a significant disincentive to travel. The Airports Authority of India is planning a significant modernisation of airport infrastructure, with over $30 billion planned over the next decade, both in modernising existing airports and in establishing greenfield (i.e. new) airports. In addition to the infrastructure constraints, visas often represent another significant impediment for Indian travellers. Our research identified that for almost 10% of Indian leisure travellers and 12% of business travellers, difficulties in obtaining a visa is the main barrier to travel, and this is a much higher proportion than in all other Asia Pacific markets. India is ranked 82nd out of 103 countries in visa-free access, with Indian passport holders able to visit only 51 countries visa-free, compared to 165 for Japanese passport holders, for example.5

4 5

Vision 2020, Ministry of Civil Aviation Henley & Partners, Visa Restrictions Index Global Ranking 2012

The Leapfrog Effect technology changing the way that Indian travellers behave

Shaping the future of travel in Asia Pacific 12 The Leapfrog Effect

“Travellers will increasingly wish to interact via a mobile device. In some countries such as Indonesia and Thailand they have skipped the fixed internet phase and moved direct from face-to-face contact to contact via a mobile device (tablet, smartphone, etc). Agents and travel providers will need to provide mobile solutions or become irrelevant.”
Mark Dougan, Managing Director, Australia & New Zealand, Frost & Sullivan

Technology is transforming the way that travellers are behaving, stimulating a move towards self-management of travel. For Indian travellers this is manifested in increased use of the internet to research and manage travel, and in greater use of mobile devices and social media in the travel research and booking process.

Indian business travellers and 15% of leisure travellers use these devices during their travel for making bookings and arrangements. For business travellers this is among the highest in the region. Indian travellers are also increasingly avid users of tablets while travelling, with 39% of business travellers and 17% of leisure travellers making travel arrangements or bookings on these devices while travelling. Making reservations or bookings is now the most common activity performed by travellers on these devices.
Figure 4: Proportion of travellers who use smartphones for travel-related arrangements and bookings (2012)
60% 50% 40% 30% 20% 10%

The rise of mobility

“Around 10% of our traffic is now coming from mobile devices. So far this is still mainly research / searching with actual bookings done from a fixed connection. However as mobile payments security improves the whole transaction will increasingly be done on a mobile device.”
Rajnish Kapur, Chief Innovation Officer, Makemytrip.com

0%

Mobile devices, such as smartphones and tablets, which enable individuals to access the internet while on the move are having a transformative effect on travel. With increased penetration of these devices and increased confidence in their use (for example, in terms of connectivity and security), travellers are increasingly using mobile devices as an integral part of the travel experience, both to research but also to transact. While overall penetration of smartphones in India is low, most travellers are using them. Our research identified that 43% of

Singapore Korea Japan Indonesia
Leisure Travellers

India

China

Australia

Business Travellers

Source: Survey of 1,531 Asia Pacific Travellers, August 2012

As travellers become increasingly confident in using mobile devices to research their travel and make transactions, travel service providers and intermediaries will increasingly need to use the mobile channel to interact and transact with their customers.

Shaping the future of travel in Asia Pacific 13 The Leapfrog Effect

The collaborative traveller – India leading the way

“Indians are connected, they have a natural curiosity to the technological trends.”
Ankur Bhatia, Director, Amadeus India

With social media increasingly important as a channel for travel research, travel providers need to ensure that they are adopting a social media strategy and using social media to interact with travellers. Social media may also become more important as a transactional channel, with travellers using social media sites to click through to bookings or reservations.

Our research indicated that Indian travellers are leading the region in use of social media for travel, and that social media is having a significant impact on the way that Indian travellers are behaving. 48% of Indian travellers are frequently using social media during travel, and 58% intend to do so in the future. Along with Indonesia, this is the highest usage rate in the region.
Figure 5: Proportion of travellers using social media during travel

Singapore Korea Japan Indonesia India China Australia 0% 10%
2011

“The hotel industry is not really using social media as a transactional channel. However, it is important for brand enhancement as it is really about story telling. Social media offers the opportunity to create a wider perception of the brand and enhance the dialogue with the customer.”
Puneet Mahindroo, Ex-Corporate Director of Revenue Management & Global Distribution, Taj Hotels, Resorts and Palaces

The need for capacity at the budget end of the market
The continued growth of budget airlines (sometimes referred to as Low Cost Carriers or LCCs) is likely to meet the huge increased demand for air travel from India. Already India has a large budget carrier market with airlines such as IndiGo and Jet Airways. Our research indicated that almost 40% of Indian business and leisure travellers have used budget airlines over the past 12 months.
Figure 6: Proportion of travellers that have used budget airlines in past 12 months

20%
2030

30%

40%

50%

Source: Survey of 1,531 Asia Pacific Travellers, August 2012, Frost & Sullivan forecasts

Singapore

This high use of social media by Indian travellers partly reflects the fact that Indian travellers tend to be younger than their counterparts in other countries, and the high existing usage of social media in India (India has the third highest number of Facebook users globally). Our research indicated that 58% of travellers aged 18-30 use social media frequently during travel compared to 25% of the over 65s. The main reason that Indian travellers use social media is to get advice and recommendations from their friends and contacts, as well as gaining more information about their destination and keeping friends and family updated about their trip.

Korea Japan Indonesia India China Australia 0% 10% 20% 30% 40% 50% 60% 70% 80%

Leisure Travellers

Business Travellers

Source: Survey of 1,531 Asia Pacific Travellers, August 2012

Shaping the future of travel in Asia Pacific 14 The Leapfrog Effect

However continued addition of capacity by budget carriers will be needed to match the huge increase in traveller numbers. We expect to see significant capacity increases by budget carriers on the key routes for Indian business and leisure travellers to SE Asia and the Middle East, with almost 1,500 new aircraft likely to be delivered to Indian carriers over the period to 2030, the vast majority of them single-aisle aircraft aimed at regional routes.6

Countries in the region are waking up to the opportunity as the emerging middle-class seeks to emulate their counterparts in Europe and North America, and take all-inclusive cruise holidays allowing them to visit multiple locations within the confines of a one or two week vacation, most notably in India at 18% in 2012, anticipated to reach 55% by 2030. In particular, the proportion of younger Indian travellers with aspirations to go on a cruise holiday is the highest in the region.
Figure 7: Proportion of travellers with aspirations to go on a cruise holiday, by age group

The need for greater budget airline infrastructure

“As new regional airlines take to the skies, we don’t have the infrastructure to support them.”
Ankur Bhatia, Owner and GM, Amadeus India

Singapore Korea Japan Indonesia India China Australia 0% 10%
Over 65

While growth in budget airline capacity will be critical if the potential of the Indian traveller is to be fully exploited, equally important will be the infrastructure to support budget airlines. Without significant investment in facilities for budget airlines, Indian airports will face an increasing struggle to cope with the increase in passenger numbers. At the same time other destinations in the region will need to significantly increase infrastructure to address the increasing number of Indian travellers. Airline seat capacity from India has increased by 14% over the past year, with particularly strong growth in capacity to North-East Asia.7 As this growth is likely to continue for the foreseeable future, significant infrastructure investment will be required.

20%
18 - 30

30%

40%

Source: Survey of 1,531 Asia Pacific Travellers, August 2012

Infrastructure – the cruise opportunity
Our research indicates that significant numbers of travellers from all countries in Asia Pacific express interest in cruise holidays, and their aspiration to take a cruise holiday in future. Indeed, far from being the preserve over the older generation, it is the 18-30s group across the region that expresses the strongest interest in cruise vacations.

Cruise represents a real market opportunity for travel providers. As travel agents across the region therefore struggle against the trend to self-manage travel, cruise presents a real opportunity to gain share in a rapidly-growing segment. Even reaching annual cruise penetration levels, 10% of those in Europe and North America would realise a huge opportunity in Asia Pacific. Consequently, Asia Pacific has the opportunity to learn from the cruise travel sector in Europe and North America and leapfrog its growth, but significant improvement in infrastructure is needed. For example, there is an increasing investment in establishing home port cruise terminals, but the region still lacks terminals with capacity to accommodate larger and more modern vessels.

6

7

Boeing, Current Market Outlook 2011-2030 PATA, Tourism Monitor, 2012

Shaping the future of travel in Asia Pacific 15 The Leapfrog Effect

The rail opportunity

Figure 8: Asia Pacific high speed rail networks (km)

“High speed rail has effectively killed off domestic air travel in Korea and Taiwan, and will have a significant impact in China. If ever built it could also have a big impact on high volume city pairs such as KL-Singapore and (highly unlikely)Sydney-Melbourne.”
Peter Harbison, Executive Chairman, Centre for Aviation (CAPA)

40,000

13,000

643 412
Korea

2,3872,387

Japan

2,000 0
India

China

300 0
Singapore

685 0
Indonesia

1,660

The enormous investment in high speed rail infrastructure in Asia Pacific is leapfrogging that of Europe, where the extensive 10,000km European network has already been exceeded by Asia Pacific at 15,799 km The Asia Pacific region also exceeds North America where a comparable network is yet to be developed. While Japan, China and Korea have led the way in Asia Pacific, 2,000 km of similar networks are now being planned or seriously considered in India.

2011 2030

0
Australia

Source: Frost & Sullivan estimates

High speed rail (HSR) is generally highly competitive for journeys up to 800km, with rail gaining a dominant market share over air for journeys up to 500km. If implemented, HSR could therefore have a significant impact on air travel for relatively short but highly travelled routes such as Delhi - Mumbai. The resurgence of rail therefore offers a challenge to existing travel service providers – such as airlines and travel agents – to evolve their business models to compete with or collaborate with rail. It is likely to provide a further stimulus to budget airlines, as the lower costs and faster turnaround times that these airlines offer are increasingly critical in a region with much more extensive high speed rail infrastructure.

The Barbell Effect growth at the upper and lower ends of the travel market in India

Compared to their counterparts in other Asia Pacific markets, Indian travellers generally travel on a budget, spending on average just over $1,000 per trip, only around one quarter of the average amount spent, for example, by travellers from Australia.8 As more Indians start to travel, we anticipate that most will continue to be at the budget end of the travel market. However at the other end of the scale the number of luxury travellers from India will also increase significantly.

travel service providers have to decide which particular segments they wish to target, and use the appropriate channels to reach those segments.”
Puneet Mahindroo, Ex-Corporate Director of Revenue Management & Global Distribution, Taj Hotels, Resorts and Palaces

The Indian luxury traveller
In 2010, India entered the top 12 countries globally by number of High Net Worth Individuals (HNWIs), with an estimated 153,000 HNWIs.9 The number of HNWIs grew by over 20% compared to 2009. As India continues to experience strong economic growth over the next 20 years, we anticipate that the number of HNWIs will exceed one million by 2030, placing India third in the region after China and Japan.
Figure 9: High net worth individuals by country, 2011–2030
China Japan India Korea Australia Singapore Indonesia 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Although the number of luxury travellers from India will grow significantly, in terms of numbers the real growth will be at the budget end of the market. The potential of the Indian travel market is quite staggering. In 2011, India generated around 4.5 million arrivals to Asia Pacific destinations, and this number has been increasing at around 10% annually over recent years . Based on the projected increase in the Indian middle-class from 2010 to 2030, and even assuming no increased propensity to travel, the number of arrivals from India will increase to almost 70 million by 2030 – a fifteen-fold increase. And the travel expenditure by Indian travellers, in today’s dollars, will increase from $6 billion to over $70 billion. Our research indicated that the preferred future destinations within the Asia Pacific region for Indian travellers are Singapore, Malaysia and China for business travellers, and Singapore, Malaysia and Thailand for leisure travellers. The many first-time travellers from India over the next two decades will initially favour relatively close and cost-effective destinations, but are likely to increasingly try more distant destinations as they become more experienced travellers.

2030

2015

2010

(Million)

Source: Cap Gemini World Wealth Report, Julius Baer, Frost & Sullivan estimates

For High Net Worth Individuals, travel generally represents the preferred form of expenditure. The rapidly growing number of HNWIs in India therefore presents a significant opportunity for travel providers at the luxury end of the travel scale.

The vast majority of these travellers will be travelling on a relatively tight budget, with average expenditure per trip by Indian travellers only around $1,000. Hence to accommodate this huge increase in traveller numbers significant investment in facilities at the budget end of the travel market will be required, by airlines and other travel providers as well as by accommodation providers.

The growth of the budget traveller

“Travellers increasingly travel for specific cultural or social reasons rather than for general ’leisure’. This means that
Derived from WTO, Compendium of Tourism Statistics Cap Gemini, World Wealth Report, 2011. HNWI’s are defined as individuals with investable assets of $1 million or more
8 9

“Initially the main destinations are Singapore, Malaysia, Thailand etc but after initial experiences many travellers go further afield.”
Rajnish Kapur, Chief Innovation Officer, Makemytrip.com, India

Shaping the future of travel in Asia Pacific 18 Summary

Summary The changing face of the Indian traveller
India represents the next frontier of the Asia Pacific travel market. Over the next 20 years, the number of outbound travellers from India will grow exponentially, to a point where India will be one of the top outbound travel markets in the region, with the 4.5 million arrivals to Asia Pacific destinations in 2011 increasing to almost 70 million by 2030. This represents a huge opportunity for travel providers across the region. But alongside the huge growth in absolute numbers, a number of other trends are occurring which are changing the face of the Indian traveller. We are seeing huge growth in business travel, as Indian companies become more internationalised, and in particular strong growth by women business travellers. On the leisure side strong growth is coming from younger travellers, and VFR travellers, in particular. While there will be a burgeoning market for luxury travel, the majority of Indian travellers will be travelling on a budget, driving demand for budget airline capacity and budget accommodation. Across the region, significant investment in infrastructure is needed if this potential is to be adequately addressed. At the same time Indian travellers are behaving in different ways. They are becoming more confident in their travel decision-making, reflected in higher incidence of self-management of travel, often facilitated by social media. And they are using mobile devices more frequently through the travel process, driving travel service providers to interact with Indian travellers in new ways.

Shaping the future of travel in Asia Pacific 19

Appendix
Our approach
We sought qualitative and quantitative input from three sectors; travel service providers, industry associations and travellers themselves. Specifically, we undertook 13 in-depth, one-on-one interviews with thought-leaders from the travel industry across the region, including inputs from industry associations, national tourism bodies, airlines, hotels, travel agents and consultants. We also interviewed several of Amadeus’ own thought-leaders. Contributors are listed at the back of the report. We undertook quantitative research with 1,531 business and leisure travellers (defined as individuals who have travelled overseas at least once in the past 12 months) from the seven key markets of Australia, China, India, Indonesia, Japan, Korea and Singapore. The research therefore involved travellers from both developed markets (the OECD members of Australia, Japan and Korea, plus Singapore) and the emerging and highly populous markets of China, India and Indonesia. Research was undertaken by means of an online survey. We also reviewed existing published sources on the travel industry in the region, from sources such as the World Tourism Organisation (WTO), Centre for Aviation (CAPA) and the Pacific Asia Travel Association (PATA), as well as from broader data sources such as the Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD).

Contributors
We are extremely grateful to all the individuals who contributed their time and ideas to the development of this report: Dr. Li Qiang, General Manager of Information Management Department, Air China Jayson Westbury, CEO, Australian Federation of Travel Agents John Koldowski, Special Advisor to the CEO, Pacific Asia Travel Association (PATA) Jonathon Broughton, Head of Global Supplier Relations, American Express Corporate Travel Mark Dougan, Managing Director, Australia & New Zealand, Frost & Sullivan Markus Keller, Regional Director of Sales & Distribution, Accor Asia Pacific Mitsunori Nobe, President and CEO, JTB-CWT Business Travel Solutions, Japan Mr. Okada, EVP Alliances & International Affairs, All Nippon Airways Peter Harbison, Executive Chairman, Centre for Aviation (CAPA) Puneet Mahindroo, Ex-Corporate Director of Revenue Management & Global Distribution, Taj Hotels, Resorts and Palaces Rajnish Kapur, Chief Innovation Officer, Makemytrip.com Yeoh Siew Hoon, Editor and Founder, Web-in-Travel Younggeun Lee, Deputy Director, Korea Tourism Organisation

Shaping the future of travel in Asia Pacific 20

We are also grateful for the time and perspectives of the following senior Amadeus representatives: Ankur Bhatia, Director, Amadeus India Bill Lawler, Vice President, Global Customer Group, Amadeus Asia Pacific Bruno des Fontaines, Vice President, Customer Solutions Group, Amadeus Asia Pacific David Brett, President, Amadeus Asia Pacific John Chapman, Vice President, Airline Group, Amadeus Asia Pacific Karun Budhraja, Vice President, Corporate & Marketing Communications, Amadeus Asia Pacific Leon Herce, Vice President, Market Management, Amadeus Asia Pacific Miho Ohtake, General Manager, Amadeus Japan Sari Vahakoski, Managing Director, Amadeus Australia Simon Akeroyd, Vice President, Business Development, Amadeus Asia Pacific The opinions and viewpoints expressed in this report do not necessarily wholly reflect those of the contributors. For more information about this report, please contact Corporate Marketing at Amadeus Asia Pacific apacwhitepapers@amadeus.com @AmadeusITGroup facebook.com/AmadeusITGroup www.apacwhitepapers.amadeus.com www.amadeus.com/blog/29/01/apacwhitepapers

www.apacwhitepapers.amadeus.com

©2013 Amadeus Asia Limited