SOURCE: EUROMONITOR INTERNATIONAL LIFESTYLE SURVEY
Super apps, connected consumers and a whole lot of digital innovation—these are driving the growth of Asia’s travel industry today, says a recent report by market research firm Euromonitor International.
According to Megatrends Shaping the Future of Travel authored by Caroline Bremner, Euromonitor International industry manager for travel, with Asia as the world’s major innovation hub, travel brands and businesses are all adapting to changes brought about by digital disruption, especially since the region is home to half of the world’s internet subscribers—a young population keen on trying new experiences.
The report identifies 20 global travel industry’s mega trends (defined as trends “with longevity, representing a fundamental shift in behavior that is defining consumer markets”) and highlights the eight that are seen to make the most impact on industries and consumers: healthy living, experience more, premiumization, ethical living, shifting market frontiers, connected consumers, middle class retreat and shopping reinvented.
In Asia, the most evident trends are premiumization, shifting market frontiers, connected consumers and shopping reinvented, thanks to, again, the shift to digital of the region’s travel sector.
SOURCE: EUROMONITOR INTERNATIONAL
Mobile, in particular, will play a key role in the growth of travel sales, as the report states that bookings via mobile websites and apps will account for 64 percent of all online travel sales, higher than the global average of 46 percent, by 2024.
At the forefront of digital transformation of Asian travel is, unsurprisingly, China.
According to the report, the country is years ahead of others, with hotels such as FlyZoo (run by Alibaba and its travel platform, Fliggy) using facial recognition technology and biometrics for room entry and elevator use.
The Tokyo 2020 Olympics is also expected to usher in innovation in travel, particularly through the use of robot assistants at the airport, as well as exoskeleton suits that can help boost staff’s physical strength.
Asia is also home to companies that have unlocked the huge market of travel activities and experiences—think Klook, TripAdvisor, Expedia, Booking.com. According to the report, experiences are now of paramount importance to consumers not just in Asia, but across the globe: 43 percent say they prioritize experiences over things, while 78 percent say they value real world experiences. The travel industry is benefiting greatly from this outlook, says the report.
SOURCE: EUROMONITOR INTERNATIONAL
NOTE: ATTRACTIONS INCLUDE CASINOS
Asia’s budget hotel industry is ripe for digital disruption as well, with its sales in Asia-Pacific reaching $32 billion this year. OYO, which offers app-based property management solutions, is one company enjoying rapid growth in this space.
And then there are the super apps, or the “all-in-one” apps that offer a variety of services—communication, lifestyle, travel, social, financial and retailing—on a single platform. These are the likes of Grab, Line and GoJek, the development of which is a major phenomenon that characterizes the Asia-Pacific market, the report says.
Overall, the global travel industry is expected to grow 3.3 percent year on year, and is forecast to reach almost $3 trillion by 2024. Online will account for the lion’s share of sales at 52 percent, with mobile sales representing a quarter of all travel bookings in value terms, the report says.