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Foreign trips still continue, but with hurdles

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New Delhi: Today, when we talk about the largest and fastest growing economic sectors, travel and tourism sector has made its name at the top of the list.

Such immense growth in India under this sector has been due to flexible policies and regulatory support by the government authorities, which further includes rising income levels and changing lifestyle of the common people.

No matter there has been drastic fluctuations in the rupee value, or the GDP increasing by more than seven percent every year, yet Indian tourism did not seem to get affected. Moreover, even the static economy could not tremble the number of tourist’s departure from India.

Thus, India has emerged as the world’s fastest-growing outbound market and in absolute numbers, it is second only to China.

Whatever be the reason, leisure, business, a shopping trip, any global sports event or even meeting any relative living abroad, and Indians have been increasingly traveling.

Indians offer such immense potential for future growth in outbound level.
According to the predictions of UNWTO, India will account for 50 million outbound tourists by 2020

Traditionally Thailand, Singapore, United States, and Malaysia are among the most preferred tourist’s destinations among Indian travelers, but there are other countries like Sri Lanka, Nepal, and China which are also preferred nowadays.

The increasing in the tourism is mainly due to decrease cost of international airfare and availability of affordable travel packages.

However, there are many challenges in outbound travel. In India, companies tend to specialize in either inbound or outbound, few do both successfully. The average Indian travel agent deals with customers who are extremely price sensitive and are inherent shoppers. Bargaining is a cultural trait.

Whereas there is also a feeling that the local agents have no right to make money. In general, agencies in India are not equipped or trained in charging fees.

Also, another hurdle for Indian outbound tourism market is the rupee depreciation that has become a very big hurdle for Indian outbound tourism. Destinations such as United States, Canada, London, France, Italy and Switzerland have seen a dip in bookings due to rupee depreciation.(input from agencies)(image: blog.raysoutdoors.com.au)

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Sony Mobile Exit India Market Owing to Hyper- Competition

Sony Mobile would continue to monitor the market situations and business feasibility in the country

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Sony Mobile, India
the pressure from Chinese brands and Samsung in the major price segment resulted in continuous decline of sales for Sony. Pixabay

Facing stiff competition from Chinese and South Korean players, Japanese conglomerate Sony Corporation has announced to quit the Indian smartphone market.

Sony had less that 0.01 per cent of the total Indian smartphone market share in the first quarter of 2019, according to Counterpoint Research.

Sony Mobile, however, said that it would continue to monitor the market situations and business feasibility in the country.

“Our focus markets are Japan, Europe, Hong Kong and Taiwan to drive profitability and future prospects in the 5G era,” Sony Mobile said in a statement on Wednesday.

Sony Mobile, India, Market
Sony Corporation has announced to quit the Indian smartphone market. Pixabay

“We have ceased sales in Central and South America, the Middle East, South Asia, Oceania, etc. in FY 18,” it added.

The company assured that it would continue its customer support operations including after sales support and software updates for existing customers in India.

The India smartphone market is currently dominated by Chinese players like Xiaomi, OPPO, Vivo and OnePlus among others, besides South Korean tech giant Samsung.

According to Shobhit Srivastava, Research Analyst, Mobile Devices and Ecosystems, Counterpoint Research, the pressure from Chinese brands and Samsung in the major price segment resulted in continuous decline of sales for Sony.

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“With declining sales in India and other markets, Sony took the right decision to focus on the high ASP (average selling price) markets such as Japan,” Srivastava told IANS.

Sony India in July last year brought its flagship “Xperia XZ2” smartphone for Rs 72,990 to India that turned out to be its last launch.

“In a cut-throat market like India where Chinese smartphone brands rule the roost with industry-leading specs and having over 60 per cent market share, it’s tough for other brands to garner a meaningful revenue share. Sony has had a very miniscule market share in India,” Prabhu Ram, Head, Industry Intelligence Group (IIG), CMR, told IANS.

For Sony, the performance of its mobile business has lacked the sheen, and has been a clear outlier compared to its other divisions.

Sony Mobile, India, Market
Sony had less that 0.01 per cent of the total Indian smartphone market share in the first quarter of 2019. Wikimedia Commons

“It makes sense for it to cut its losses and refocus on other verticals,” Ram added. (IANS)