Growing affluence giving wings to Indians

An edited version of this story first appeared in DNA Money edition on Saturday July 30, 2011.

Alan D'Mello a senior marketing and communications personnel with Thunderbird Resorts takes a short break from work almost every month. He along with creative director wife Shyamashree, daughter Anouk and pet dog Mae hit the road on extended weekends to destinations in Maharashtra and nearby states like Goa and Gujarat. This apart, the D'Mello family also undertakes one long holiday every year and visits international destinations mainly countries in the South Asia Pacific region.

According to D'Mello, “Any destination within 400 kms is what we choose for short breaks over weekends. We take a flight for places Kerala, Rajasthan and Delhi. The accommodation type for such short breaks largely comprises budget and mid-market hotels priced in the Rs2,500 to Rs 3,500 range. We generally allocate 10% of our annual earnings for travel.”

Similarly, Supriya Mishra, working with a leading international property consulting (IPC) firm in Mumbai recently had a short (5-day) vacation in Bangkok with her husband Sumesh Mishra who works with one of Mumbai's leading real estate firms. The Mishras generally take 5-6 short holidays in a year of which one is international and others are domestic destinations. “We visit places like Lavasa, Delhi, Agra, Dahanu within India over long weekends or during festivities. It really is helpful considering the kind of professional lives we are living these days,” said the Mishras.

The practise of multiple short holidays as against one long holiday appears to have picked up phenomenally in the last over a couple of years. The Indian travel and tourism fraternity is of the opinion that the emerging middle-class, increase in disposable incomes and increased awareness are key factors that are contributing to the increasing trend.

Kashmira Commissariat, chief operating officer - outbound division, Kuoni India, said, “Along with long holidays during the summers, Indians are increasingly taking short holidays whenever possible, either during long weekends, special occasions, festive breaks, etc. International holidays, earlier seen as limited to a fortunate few, are now available off the shelf. Our internal research reveals that short holidays provide travellers an opportunity to relax, recharge and reconnect with the people.”

In fact, travel and leisure sectors have seen immense growth in the last two decades mainly because travel within the country and beyond its shores has come within the reach of large sections of Indians. As a result the industry is witnessing higher double digit growth (20% to 25%) mainly owing to a huge domestic tourism market and an ever growing outbound travel.

The profile of travellers driving this trend generally comprises executives with increased level of stress, working professionals, DINKS (Double Income No Kids). Couples and families are also seen taking short holidays during special occasion like birthdays or anniversaries or even during the occasional long weekend. Breaks during festivals like Durga Pooja, Rakshabandhan, Holi, Pongal, Onam etc are also on the rise.

“There is a huge demand as newer destinations are springingup and people are sharing their experiences using online mediums and social networks. Our estimate is that this market is growing significantly clocking higher double digit numbers. For us, last year, this market segment has seen a year-on-year growth of 30%,” said Karan Anand – head, relationships, Cox and Kings Ltd.

In terms of frequented destinations, the past few years have seen an increased numbers of travellers opting for short breaks to Thailand, Dubai, Malaysia, Maldives, Mauritius. Within India destinations like Ooty, Manali Goa, Bangalore, Kerala, Madhya Pradesh etc are poplular.

As for the duration for mini-breaks is concerned, “A short-break typically comprises a holiday upto four days and three nights or a slightly longer duration. The reason being, during a short holiday the idea is to spend time in leisure, recreation and a bit of exploring around rather than to undertake itineraries,” said Commissariat.

While domestic destinations are pretty much in demand from travellers for their mini breaks during the year, a section of the travellers are increasingly choosing international destinations too.

“They time it with festivals. For example, Thailand is hosting a shopping festival later this month and we have been witnessing god traction (bookings) for Thailand holiday packages especially because they can manage a good deal travelling during the festivities. On the domestic front, sustained promotions by hotels and destinations help boost business. In fact, most of the hotels go to the extent of offering complimentary (free) stays as a part of the package,” said Anand.

Seeing opportunity in short haul holidays, leading travel companies like Cox & Kings, Kuoni / SOTC and Thomas Cook have taken the fast moving consumer goods (FMCG) approach to marketing travel destinations by offering off-the shelf products. These are pre-packed holidays for specific destinations that can be bought from the travel companies at an all inclusive price. Brands like Instant Holidays (C&K) and Box Holidays (Kuoni/SOTC) and Readymade Holidays by Thomas Cook are some of the offerings priced anywhere between Rs6,909 (domestic) to Rs27,790 (international) catering to short holidays.