Advances in data, analytics and technology are creating exciting opportunities for growth in APAC’s travel industry

Asia is a complex and fragmented market with vastly different types of consumer behaviour, languages and cultures. With rapidly changing technological development, the increase of low cost carriers in the region and the capability of the middle class to travel further, the possibilities of travel in Asia are becoming limitless.

 But the question remains, how can travel brands tackle such a diverse market? 

The revolution in data and analytics is changing what brands know about their customers. At the same time the growth of mobile use by travel consumers’ means that travel brands can service and sell more and for longer. According to a study by LeNovo, about 59 per cent of the respondents in Asia said they searched for travel accommodation online via mobile devices – 13 per cent above global average.  

 However, as Tim Gunstone, MD, EyeforTravel highlights, “In the battle to win the travel customer, if you don’t use both mobile and data to send contextualised communications then you risk losing customers to the travel companies that do”. In a recent interview with Tarandeep Singh, IHG’s Director of Revenue Analytics for the Asia Middle East and Africa (AMEA) region he said “data analytics have been able to rewrite our consumer segmentation and break it up by every brand to ensure we are talking to the right audience at all times,” This enables the group to target far more accurately with much higher conversion rates than a few years ago. 

 All this change means that established business models are showing signs of failing and huge opportunities are in place for the brave and insightful. New business models from start-ups such as TravelMob, HotelQuickly, Stayzilla, GrabTaxi and many others could potentially grow into billion dollar industries.  

 EyeforTravel’s 17^th Travel Distribution Summit Asia couldn’t come at a more opportune time. Taking place in Singapore, 20-21^st May, it will aim to bring together some of the leading APAC experts. 

The changes in the industry mean that the travel professional needs to fundamentally re-visit and discuss how they can work together effectively and profitably.  If they don’t, they risk facing commoditisation of their product and missing the huge opportunity to use data and analytics to increase ancillary product sales. 

For years, EyeforTravel’s TDS Asia event has been the educational meeting place for the innovators in the travel industry.  This year is no different, but we also have added into that mix some of the biggest brands in travel to brainstorm on the future of APAC’s travel.

 Marketing, innovation, technology, analytics, RM and mobile experts from all branches of travel use this event as an annual meet up to predict the future of  travel in the region and to network in view of profitable partnerships.

By Mariah Assuncao, Global Conference Director, EyeforTravel
Mariah@eyefortravel.com

Eye-watering travel tech leads the way to the future and beyond

Technological advances have and always will be at the forefront of people’s interest. From the Internet, to the smartphone, 3D Printers and Drones. One seamless trend continues to create the need for innovation and development, helping to push the boundaries of our technological ability. Exciting isn't it? But do we have a new technology that’s on the brink of being the next big innovation? This is visual reality.  

Have you seen the growing number of new videos, adverts and recent films all shot in the angle of a humans perspective? Take a look at this music video  below if not.

 

Aside from being quite a catchy song and brilliantly shot, I would like you to understand the underlying concept of putting on some goggles and becoming transported into a different world. It really paints a picture of what holographic visual headwear one day could be like. Sounds overly futuristic, right? 

If that sounds overly futuristic, I am delighted to say its not far from this becoming reality. Take a look at this video demonstration to see the potential. 

Players in the market

Google seemed to be the first on the market with Google glass. Unsurprisingly, that drove great awareness but unfortunately they  seemed to fail to reach a coolness factor, perhaps the staggering $1,500 price tag? Google's announcement last week proved that with the discontinuation for consumers, however they are looking to re-work the project and steer in a different direction.

But don’t despair, there are several other entrants in the space from some of the biggest players in the market including, Microsoft, Samsung and Oculus. Oculus  arguably the most well-known within this space, especially with their $2 billion purchase by Facebook giving it as much packing power as the multi-nationals. 

I see Microsoft’s HoloLens is also receiving some much deserved enthusiasm. The video above demonstrates how they plan to use everyday surroundings to enable and use the device - it’s really cool. So the ‘uncool’ brand could actually be on the verge of gaining credit and I believe it’s the perfect timing. Market research firm Forrester predicts that 3.6 million people will likely buy HoloLens products by the end of 2016, ambitious but I would like to see it happen. Two other big players at the forefront of this market are Oculus Rift and Samsung's Gear VR. 

Samsung just released an introductory video to show off their own tech, again some great features and in particular, the street demos give the Gear VR a real practical look. With a very reasonable price tag of $199 it makes it surprisingly affordable, enabling easy take-up and a foreseeable future in the technology market. 

Oculus Rift has been in the market a few years now, however primarily focusing on the gaming aspect helping to specialise in virtual reality travel. There are some great videos online of people trying them out if you have some time. So far, they’ve had some fantastic positive feedback giving a great indication of what’s to come. With a little further development of games, within the technology this market could become explosive. I really can see great potential. Having the most development time behind them as well as a solid financial backing I feel they are leading the way in innovation for visual reality, and with time can they make it a practical reality. 

So what does or can this mean for Travel? 

Experiences are everything from the places you go, people you see, they all bound into memories of travel. This technology can really enable people to picture, feel and truly represent experiences like the real thing. Within the travel space, there are some really exciting opportunities. One I feel is the use of VR to truly see and experience a holiday before you have left your home, a ‘try before you buy’ reality for example, in my opinion this could revolutionise the whole industry. Could hotels and resorts have video footage that consumers can view to walk around the hotel, see the pool and throw a stone onto the beach? An opportunity for a travel agent to help a consumer get exactly what they want, subsequently creating a happy customer for the agent. Say goodbye to those misleading pictures? I think so. 

This almost gives the entire power to the consumer, giving them full control of getting the best possible holiday for themselves. As well as this, who wouldn't want to have a ‘try before you buy’ holiday? I found an article where Skyscanner has similar views in their report on future travel. This could almost be a travel agent’s USP - ‘Come see your holiday before you buy.’ Could we, in fact, be one step ahead and be sat on your sofa simply browsing holidays with a visual headpiece on? Now wouldn't that be cool? 

Let’s steer it away from the travel agency now, these VR goggles are also creating holograms that users can interact with, using only the environment surrounding them. Microsoft’s HoloLense demonstrated this well in their video showing some great practical ideas, especially with everyday living within your home. Screens on the wall, wherever you are travelling or necessarily wherever needed, this is a real draw. There is of course a massive gaming aspect, and I think that’s where oculus have focused, whereas Microsoft may have focused into more of the social practicality. 

The number of experiences you could possibly have with this technology is never ending. It may not be in the next year or two but before 2020 I see this technology being widely accepted and especially have a high take-up within the travel space and wider society on a day to day basis. Extensive research and development as well as investment is backing this industry, for example; Apple recently acquired several patent’s in this area so I can only see it go from strength to strength in growth. I see this market is expanding into a worldwide focus, exciting investment can only add heat to the fire. This really leaves me with a bubbling excitement for what’s around the corner, in particular the number of possibilities this tech could be used for. I’ll leave you to imagine a few of the possibilities Visual Reality could offer…

Have your own thoughts and ideas? Post below:

Written by: Jamie Goulding
To get in Contact: jamie@eyefortravel.com