Distribution system

The Indian travel distribution system is highly fragmented (even more in a post-Covid world) and varied across the country. Whilst there are a few national retail agencies, most agents are small, family-owned independent businesses, and contribute a small percentage of business to Australia. Indian consumers are researching and booking their trips using a combination of traditional travel agencies and online options. Whilst with increased digitisation, we are seeing a gradual shift in bookings through Online Travel Agencies (OTAs), retail agencies still handle most of the outbound travel from India.

Wholesalers/large agents

Commission Level: up to 20%

• The traditional wholesale model has not developed in the Indian travel industry. There are a few larger travel agents such as Thomas Cook, SOTC, Kesari, Veena World, MakeMyTrip, PickYourTrail, etc. who have developed their own distribution network through smaller independent agents.
• These are often referred to as franchisees or preferred sales agents. Some agents and Online Travel Agents OTAs such as MakeMyTrip and Yatra. have also adopted a model of home-based consultants who prefer to work from home.
  
• The major operators having a pan-India presence are Thomas Cook, SOTC, Kesari Tours, Veena World, MakeMyTrip, and PickYourTrail. Most Indian travel companies operate across all segments of travel, including group tours, Free Independent Travel (FIT), business events (MICE) and luxury.
  
• There are a few traditional B2B wholesalers that are gaining support from the smaller retail agents, these include: Rez Live, Otilla, GTA, and Travel Boutique Online (TBO).

Retail agents

Commission Level: up to 15%

• The distribution of travel products in India is fragmented with only a few national operators. Most agencies are small, independent, family-owned businesses.
• Competition between the larger travel agencies is fierce, with aggressive marketing and tactical promotions in print and digital media. Promotions include cash discounts, early bird discounts, hotel upgrades, free holidays on cruises or to other countries/cities, ‘holiday now, pay later’ schemes, cash back schemes and offers for a companion or child to travel for free.
• Most large retail agents brochure and market their own programs, working closely with the inbound tour operators (ITOs). Large travel agents have also started contracting directly with hotels and attractions in Europe, South Africa, and USA.
• Large travel agencies take reservations from consumers through their own retail networks as well as from smaller agencies.
• Travel agents use Global Distribution Systems (GDS) such as Galileo, Amadeus, and GTA, to reduce response time and provide instant confirmations to clients.
• Despite the increase in the online travel segment, traditional retail agencies have not yet moved to this platform for bookings and continue to use the medium to generate leads. Conversion happens through their sales network.

Online

• As the Indian outbound market grows, more consumers are using the internet to research and purchase their holidays.
• Online travel agencies (OTAs) are now receiving a large portion of visits to travel sites, with the major players being Makemytrip.com, Goibibo.com (part of MakeMyTrip), Cleartrip, EaseMyTrip, and Pickyourtrail.com. Other international sites such as Expedia, Tripadvisor, Hotels.com, Agoda, Booking.com and Trivago are also gaining popularity.
• There has been an increase in online bookings for air tickets for international flights with the improved reach and use of the internet, convenience of booking from home and the removal of credit card fees when booking directly with an OTA or the airline’s website.
• Whilst the online purchase of holiday products is on the rise, most of the OTAs have now established agencies or call centres as an alternate distribution channel.
• Traditional and online distribution systems will therefore continue to co-exist over the next few years as the Indian outbound market grows and matures.

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop frontline travel sellers to best sell Australia.
• There are over 5000 qualified Aussie Specialists in Germany. This includes 39 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program.  

Inbound Tour Operators

Commission Level: 10% - 15%

• Key ITOs for India are Australian Outback Travel (AOT), Australian Tours Management (ATM), Australia & Beyond, Travel Maestro, Smart Travels, Time Travel, Great Aussie Travel & Tours, Pacific Vacations, Aussie Tour Planner, K2K Inbound, Turtle Down Under, Xplore Australia, Australia & Worldwide, and others.

Trends

• India is one of the fastest growing economies in the world and is well poised to be the third largest economy in the world by 2027.
• Young demography (average age 29 years), rising aspirations and increased disposable income will drive Indian economy and outbound travel in the future.
• Shift from saving to splurging economy, young India is travelling at a much younger age.
• Increased spend on dining, shopping and travel amongst the aspirational middle class and millennials.
• Young Indians will travel FIT, book their travel on their own, look for value deals, indulge in self-drive, adventure, and food and drinks, immerse in local culture and will travel for major events (sports, music).
• There’s an increased preference for inclusive, sustainable & conscious travel. 

Distribution

• The total trip spend on leisure travel to Australia by Indians was AUD$935 million in 2023, growing by 21% compared to 2022, while the average trip spend was AUD$1,609, dropping by 19% compared to 2022 (Source: IVS 2023).
  
• Online travel agencies such as MakeMyTrip.com, Goibibo.com, Pickyourtrail.com, EaseMyTrip, and Cleartrip have been increasing market share in the online space. They are expanding rapidly, and an emerging trend is their move into traditional retail stores, in addition to expanding products and services online.
• There has been a drastic growth in online sales of tour packages.
• Self-drive holidays, luxury and signature holiday experiences and destinations such as South Australia (Adelaide and Kangaroo Island), Northern Territory (Ayers Rock), Australian Capital Territory (Canberra), Western Australia (Perth and surrounds) and Tasmania are new products being developed in the market, with support from Aussie Specialist agents.

Planning and purchasing travel

• Consumers are booking trips using a combination of traditional distribution operators and online options. Most consumers will book through a retail travel agent rather than directly with product.
• Whilst India has traditionally been a late booking market and consumers have a short lead time for booking holidays, ranging from four to six weeks on an average, we are also seeing an emerging trend of ultra long-term planning of holidays, especially amongst those who are celebrating a milestone or tend to travel during a particular time of the year.
• Indian travellers prefer to plan itineraries and pre-book many activities prior to travel, rather than on-the-ground.
• The use of social media for researching travel is higher than some other markets suggesting it would leverage well amongst Indian consumers.

Special interest

• There is a segment of the India leisure market, particularly amongst those who are upwardly mobile, looking for luxury travel experiences. Individual, boutique travel agencies who are members of luxury travel groups such as Pure Life Experiences and Serandipians (formerly known as Traveller Made), specializing in custom, high end journeys in Australia. Key Destination Management Companies (DMC) for this segment are The Tailor, Southern World, Alquemie, Southern Crossings and Touring Treasures, to name a few.
• The Signature Experiences of Australia program packages and promotes Australia’s outstanding tourism experiences within a variety of niche areas and special interest categories. Signature Experiences of Australia currently comprises wineries, luxury lodges, golf courses, walks, Indigenous experiences, fishing adventures and wildlife. In each case, Tourism Australia has partnered with select industry collectives that have a compelling marketing proposition and share a common goal and vision. An increasing number of boutique retail travel advisers such as members of Pure Life Experiences and Serandipians by Traveller Made partners in market are catering to travellers looking for authentic and uniquely Australian experiences in these spaces.

Planning a visit to market

Top tips for sales calls

• Sales calls should focus on agents in the key cities of Mumbai, New Delhi and Bengaluru, and where possible the secondary cities of Kolkata, Chennai, Ahmedabad, Pune and Hyderabad.
• The best time for sales calls is January to February and July to September, outside of key booking periods. 
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s 'Tourism Export Toolkit'.