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

The President of Sabre Hospitality or the CTO of Airbnb or the COO of Citizen M hotels?

All three are meeting to look at how mobile is impacting accommodation sales. Who has the best plan to grow?

If any travel sector is reeling from the impact of mobile it’s the accommodation sector. The dominance of OTA hotel booking apps has led to our researchers hearing about huge drops in brand led direct bookings. But the hotels occupancy levels are still high. How will the owners react? 

One way that the brands are defending their position is by investing in incredibly useful apps that their guests will want to use. We are seeing huge ROI on the brand apps that extend the services the big brands can offer and the products they can sell. 

And we heard this week that Barclays financial analysts finally recognise that Airbnb (and its 50% per annum growth) is having an impact on the hotel industry. Accor is singled out by Barclays for attention with “9% of its rooms under threat”

This debate is part of the event I am running at Mobile World Congress this March 2. Who do you feel is going to have the best future strategy?

Come along and participate in the debate live or subscribe to gain access to the recording.

Tim Gunstone

Managing Director

+44 (0)207 375 7557

Mobile +44 (0) 7815814314

tim@eyefortravel.com

Ryanair's cautious. Are oil prices or Facebook to blame?

By - Tim Gunstone

Ryanair is cautious about future growth…it blames oil prices, I would like to know if customer mobile browsing habits or Facebook is also an issue?

The Irish Times on Wednesday last week told us “Despite plans to cut its winter capacity, and the hedging the airline has put in place, it expects its fuel bill will rise by €350 million in its 2012 financial year. As a result, net profit is expected to remain flat at about €400 million, a level that falls considerably below previous market expectations of €490 million.” 


For the full story go to http://www.irishtimes.com/newspaper/finance/2011/0524/1224297637594.html

Is the travel industry in rude health? Or just doing a Nero and watching their industry burn?

By - Tim Gunstone


If the last 2 years have been hard for you as a travel professional, it’s been really hard for me as a publisher of travel conferences, news and research articles. In the hands of cost focussed (and I would say) short sighted CFOs, the industry limited their purchases of research, conferences and pretty much anything that helped you plan for a successful future ….this made life in EyeforTravel harder for a while.

But the first half of 2011 has seen a 100% turn around, dynamism and optimism is back and as a result all of our shows have grown. This belies my grim weekly reading of the Economist. So who is right, the seemingly dynamic travel industry? or the doom and gloom of the Economists?