VFR Tourism From India

India and Australia share many things including the same national day (26th January). As we had back from the holidays, discussions around the MyTravelResearch.com barbecue have focused on the many reasons why Australia should encourage more friends and family visits (VFR travel) from India In the travel industry, the Indian market keeps on giving due to its size: UNWTO forecasts 50 million outbound visits by 2020. And in our case, there’s the loyalty factor. Based on 2013 figures, 47% of arrivals to Australia are repeat visitors. In the Indian market, which segment holds the greatest sizzle for Australia? At MyTravelResearch.com we believe the answer is VFR -- Visiting Friends and Relatives. Why VFR? When masala sauce and the barbecue meet, it’s a marriage made in heaven. But it’s more than that. India’s VFR sector makes long-term sense for Australia’s tourism economy. India has a widely dispersed émigré population with about 100 million settled overseas, mostly in North America, Australia and the UK. So India offers plenty of filling in the middle. Australia is at the forefront of the Indian VFR wish list. Indian-born Australian residents doubled in 2006-2011. India is now the largest source of permanent migration to our country. This vast and growing diaspora creates a major opportunity for VFR tourism. According to Amadeus, Frost, and Sullivan, 43% of Indian travellers identified VFR as their main reason for international travel. The VFR trend is gathering momentum. The Australian Bureau of Statistics (ABS) plots trends from incoming passenger cards that everyone completes when they land. Data James Horan;Destination NSW from the cards showed that “VFR” began to exceed “holiday” as the purpose of visit for Indian inbound travellers around 2007. The trend is likely to continue. David Sheldon of Elm Cottage at Tumut (Snowy Mountains) is one operator who is seeing the benefits of investing in the Indian VFR market. “We find the Indian market is a really great one for us. Most of our Indian visitors come as part of a reunion with families here in Australia. Some 75% of them are repeat visitors. As we build our relationships in the sector, we see Indians increasingly coming outside our winter season.” This makes them valuable to the economy and a great vehicle for tourism dollar dispersal. Therein lies the opportunity for Australian attractions, tour operators and hospitality services. All About the Money? Yield, however, is a challenge. While Indian VFR travellers don’t spend much per night ($37 on average over 2009-2013, says Tourism Research Australia), like backpackers, they stay a long time (59.7 nights). David says it’s true that Indian travellers want a deal. “But when we explain our pricing, 95% of them understand. It’s about communicating value. “ Note however: Indians may expect children to be included in an adult costing structure. “One lesson we learned the hard way,” says David, “is that Indians often don’t regard children as a measurable number. So there has to be a costing to accommodate that expectation.” Packages are important. Research by Tourism Australia in 2013 found that 35% of Indian travellers prefer a pre-packaged group tour travelling only with family and friends, whilst another 33% prefer a package that is customized to their needs or those of their friends/family. On destination perception, Australia’s brand image precedes it. An Indian VFR visit to Australia offers bragging rights back home. We know Indians place great importance on the recommendations of family and friends who live in Australia or who have previously visited. Such networks nurture the pool of advocates in India, where many are digitally savvy and active on social media. Australian travel brands should use these social, digital, and familial networks as their advocacy base. As Indian travellers embrace their friends and relatives in Australia, marketers here should embrace both Indian hosts and Indian visitors. At MyTravelResearch.com, we see the Indian-Australian VFR barbecue as a long-term moveable feast. Do you want to hear more from us? Want to be kept up to date with the latest travel and tourism insights? Join Our Mailing List. Every 2 weeks, we send the latest practical insight for you to apply to your business and destination marketing.

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