Travel Profile (total)

  Yr/Yr % Chg
Visitor Spending (2016p) $672 million -
California Market Share (2015) 27.5% -
Visitors to California (2016p) 319,000 -
2017 Visitation Forecast (% change vs. 2016p) 345,000 +8.4%
2021 Visitation Forecast (% change vs. 2016p) 465,000 +45.8%
2021 Spending Forecast $1.04 billion -

(updated May 2017)
U.S. Department of Commerce; Tourism Economics 

Leisure Travel Profile (46% of total)  

Vacation/Holiday 53% 79
Hotel/Motel 41% 56
Average Length of Stay - Nights 19.6 155
Average Spend Per Trip $2,527 58
Average Destinations Visited Per Trip 3.5 112
Average Party Size 1.8 105
Travel with Children 10.9% 81

Sources: U.S. Department of Commerce; CIC Research, Inc.



Market Conditions

India GDP Quarterly Growth Rate
Indian Rupee

In the aftermath of the recent demonetization of the Rs. 500 and Rs. 1000 notes by the prime minister, most Indians are positive that this will help fix corruption and illegal money dealings in the market, and effectively control economic growth on the longer run

Interest rates will come down after sometime since all banks are flush with surplus funds, after the rush to deposit all demonetized currency by people

Money supply will fall in the economy as the government is trying to limit the availability of liquid cash in the market, with a commensurate increase in online transactions (via credit cards, e-wallets and inter-bank transfers)

Demonetization is expected to benefit the economy by improving the government’s fiscal position, improve tax to GDP ratio, bring down inflation and drive jobs and income.

This demonetization has specially hit those agents that mainly dealt in cash payment for bookings.

As travelers are preoccupied with the handling of individual monetary needs, time assigned for leisure, planning holiday activities etc. has taken a back seat.

Online direct bookings are getting popular as compared to agent’s sales counter bookings. The reason being is that people can book by paying with their credit cards.

  Check current exchange rates on
Sources: International Monetary Fund,, MOSPI, World Economic Forum -Global Competitiveness Report



Competitive Landscape


Market Barriers

  • Australia
  • New Zealand
  • Visit Britain
  • South Africa
  • Western Europe
  • Tourism Australia conducts road shows, extensive trade and airline co-ops and direct consumer promotions in market. They aggressively promote their online training program called Aussie Specialist in India. Latest India arrival figures are 241,700 through June 2016, 9 percent growth over the previous year.
  • Tourism New Zealand - Bollywood actor Sidharth Malhotra was appointed the brand ambassador for India earlier this year, which significantly helped them to achieve brand visibility. His experiences were promoted extensively via social media and itinerary promoted via travel trade tactical. Tourism New Zealand will continue to explore Bollywood/Celebrity influencer opportunities. They promote their online training program called Kiwi Specialist. Latest India arrival figures are 48,720 through August 2016 which is 13 percent year over year growth.
  • South Africa promotes similar products to California with the addition of wildlife. They have been focusing on improving their visa procedure. They focus on trade road shows and promote their online training program known as SA Specialist. They recorded 66,175 Indian arrivals till august 2016, which is 27 percent year over year growth.
  • Atout France actively engages itself in the market via trade engagement, trade coops, OOH and FAMs. They annually hold a workshop called ‘Rendezvous in France’, in New Delhi and Mumbai. They have a MICE online training and promote their app called ‘Chalo Paris’. The tourism board is also working with Bollywood producers to film in various locations in France.
  • Longhaul flight via international hubs; however, Air India started the first direct flight from India (Delhi) to San Francisco in December 2015 and has now expanded to six weekly beginning in Novermber 2016
  • Aggressive consumer marketing by key competitors, including Australia, South Africa and Visit Britain



Risk Factors

India’s recent demonetization policies to help curb corruption and counterfeit currency notes appears to be a negative short term consequence for the country’s economy, but it is seen as a positive factor for long term economic health.






  • 6 weekly nonstop flights
  • 1,433 weekly seats
  • Air India announced the increased capacity of their first ever direct flight from India (New Delhi) to the West Coast (San Francisco) from three weekly to six weekly flights starting November 2016
    • The airline launched the direct route with three weekly flights in December 2015
    • The route has been one of Air India’s most successful networks in the past year. Air India is now focusing on the leisure market as well.
  • Planning time frame: 3–4 months in advance; for FIT travel typical planning time frame is 8–12 weeks prior to departure
  • Booking time frame: Planning and booking time frame remains the same; booking is now getting advanced



Other Market Insights

  • Market:
    • Increase in vacation frequency
  • Product Experience:
    • Demand in customized holidays continues to grow
    • Experiential demand is increasing, driven by the luxury segment
  • Audience:
    • Many travelers continue to experience United States and California due to business meetings
      • The United States continues to be a popular premium destination for meetings and incentives, with the West Coast (including California) the most popular for this segment
    • Visa process helps increase attractiveness of United States travel
      • The ease of the United States visa process is a very positive advantage for all travelers.
  • Communication:
    • Print and television are major drivers in awareness and enticement
      • Print and television create major awareness and entice consumers, and continue to remain the largest draw for people buying packages by contacting their travel agent

Source: Market intelligence; trends from tour operators.



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