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

How travel marketers calculate ROI on Social Media – and why the future is Mobile

In partnership with our friends at SimpliFlying, we’ve developed an informative infographic looking at the burning issues that airlines and travel marketers in general will be looking to tackle over the next twelve months. Two questions in particular are addressed in this infographic:

1. In what direction does the industry see social media evolving?
2. What business goals travelers are driving and if they’re calculating ROI

Uncertainty still remains about how to measure ROI on social media – primarily because there are so many divergent ways that people approach measuring ROI.   A favourite approach of ours is that of Barbara Pezzi, Fairmont Raffles International.   A self-confessed analytics geek, Barbara offers detailed advice on how to add real meaning to the varying elements of social media campaigns.  Importantly, she takes a holistic approach and does not attempt to analyse social media in isolation.

Barbara’s next presentation for EyeforTravel will take place at EyeforTravel’s upcoming Social Media & Mobile Strategies for Travel conference, March 5-6, San Francisco.

With regard to mobile, the infographic highlights the trend for travel consumers to use mobile at the pre-purchase stage to research their travel plans.  Many also use mobile during their trip – providing a new and exciting window for innovative travel brands to further inform, engage and potentially up-sell during their trip.

Note: The findings in the infographic below are all sourced from Eyefortravel’s “Social Media and Mobile Strategies for the Travel Industry 2011″ report. The full report can downloaded here. You can use the discount code: SIMP100 to save $100!


Infographic: (click here to see the original, bigger size)

A Reason to Be Hopeful in 2012

The ongoing process of recognising that much in our Western Capitalist system is ill and needs mending does help focus the mind on priorities and reasons for doing what we do. For me, working in travel distribution and marketing is really about connections - my connection with great people all over the world, and the easier connection we can help facilitate for people who want to travel and explore different cultures, experience how others live and expand their horizons.

Dragon Head by Ai Weiwei

The search for connection is probably best exemplified in the quick and unprecedented expansion of the Asian tourism market over the past few years, led by China the Dragon. With 2012 being the year of the Dragon, we should expect this giant flying lizard motif to be displayed everywhere we look (So I am starting this trend now). With it comes another double digit growth of China's outbound tourism and a new waive of younger (and older) Chinese travelers who are no longer content to sit in coaches for 12 hours snapping famous sites from behind a tinted window. The confidence that comes with experience and growing disposable income is now translating into demand for more diverse and culturally insightful travel experiences. Access to information, thanks to the investment in excellent internet infrastructure in China, allows Chinese to research and plan independently of travel agents or guide books. They now take to travel forums to hear about other tourists' experiences, monitor destinations and brands on social media and add their own views and opinions online. They look for travel partners online and group  together to negotiate discounts on travel accessories, flights and packages.

To understand how China's growing clout is dramatically affecting the tourism sector, we need to observe the changes that South East Asia has been going through over the last 5 years or so. China is now the top market for most SE Asian countries and the top spenders in most of the Asian countries (all the way to Australia and New Zealand too!). Products and services no longer need to be exclusively tailored to Americans or Europeans - they are now being customised to Chinese tastes and preferences. And Asia's experience will be replicated in North America in Europe in the near future (provided we don't shut the gates but actually invite visitors to spend their money here with easier visas and better, targeted marketing and promotion).

So, as I count over 6 years since ChinaContact launched to communicate the opportunity that the Chinese tourist market represents, I hope that you will take this contemplation period to think what is your strategy and action plan to be relevant for Chinese visitors. Contrary to what you may think, that is not the exclusive domain of multinationals or large wealthy countries with millions to spend on promotion. The internet levels the playing field to a great extent (bearing in mind the internet sites popular in China are indeed different to the sites we flock to in the West) and you can take advantage of that.

With this in mind, the Travel Distribution Summit Asia provides a golden opportunity. With major companies from Asia and international speakers including from China, this is an excellent education and networking event. The Summit this year will include dedicated discussions and workshops on China aimed at all levels of familiarisation with the market. So it is a great entry point but also a good step on the way to implementing your China and Asia strategy. I am planning to hold a market entry workshop focused on how to utilize online marketing and social media to build brand and grow revenues in China.

I will be presenting alongside 75+ other industry leaders from brands like Qunar.com, Google, Malaysian Airways, IHG, Air Asia X,  Hilton, Expedia, Starwood, Lufthansa, Priceline, Facebook, Air New Zealand, Groupon, Shangri-La, Lufthansa and TripAdvisor to name just a few. You can see the full summit agenda and speaker line-up here: http://events.eyefortravel.com/travel-distribution-summit-asia/agenda.shtml

Hope to see you there and have a great Dragon year.

Roy

Roy Graff is Managing Director of ChinaContact, a boutique market entry and business development service which offers insight, strategy, marketing and distribution in the Chinese market since 2005. Roy has been intimately involved with China's tourism industry since the year 2000 and spent 3 years in China developing the independent travel division of gta before returning to London to launch ChinaContact. He has assisted national and city tourism boards, hotel chains, tour operators and technology companies with their China strategy and execution. Roy speaks fluent business level Mandarin Chinese.

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?