Growth in the Asia Pacific travel market
Asia Pacific is the growth engine of the global travel industry, with travel gross bookings projected to surpass $390 billion by the end of 2017. The region is home to many of the world’s fastest-growing online travel markets, and online bookings are growing twice as fast than in Europe. While much attention has been focused on the more populous China and India, Southeast Asia is emerging as a key area of focus for OTAs, investors, startups and suppliers. With a growing economy and a burgeoning middle class, Southeast Asia is home to a growing population of young, tech-savvy consumers, eager to travel.
Individual travel markets within Southeast Asia showcase distinct shopping and booking trends. While computers remain the more popular device for travel shopping and booking among Southeast Asian travelers, smartphone usage is on the rise.
Growing use of mobile devices
Travel shopping via smartphones has gained particular prominence in Indonesia and Thailand. The relatively younger, millennial population adds to the heavy smartphone usage in these markets vis-à-vis mature online markets such as Malaysia and Singapore. In the past 12 months, more than one in two Indonesian and Thai online travelers booked travel via smartphone. Rising mobile travel bookings in these markets is also influenced by online travel agencies publishing mobile-only prices and discounts on their apps.
In contrast, travel shopping and booking via smartphones is less popular in Malaysia and Singapore. A relatively consolidated supplier landscape, particularly in the air segment, means distribution status quo and limited consumer incentives to shift from desktop to the mobile channel.
It’s no surprise that the millennials are more comfortable with mobile bookings. Given the younger demographic, Indonesian and Thai travelers have been quicker than their Singaporean and Malaysian counterparts to adopt travel apps. Four in 10 Indonesian and Thai online travelers used apps for travel shopping during their last leisure trip. The share of travelers using smartphones for travel research and booking will only increase in the coming years.
What lessons can Europe learn from companies active in the Asia Pacific market?
There are several lessons that companies in the European travel market can learn from the many findings Phocuswright has collated relating to growth in the Asia Pacific industry. To find out more about them, join us at Phocuswright Europe – 16-18 May 2017 in Amsterdam, The Netherlands – as we gather the leading influencers in Asia’s online travel market to share insights into their respective areas of expertise.
- Louise Daley, Deputy CEO, Asia Pacific, AccorHotels
- Fritz Demopoulos, Founder, Queen’s Road Capital
- Timothy Hughes, Vice President, Business Development, Agoda.com
Register before 13 April to save €100 on your ticket!