Asia Pacific (APAC) is a growth engine of the global travel industry, with travel gross bookings projected to hit US$392 billion in 2017. Southeast Asia accounts for just 11% of that, but the region’s growing economies and burgeoning middle class populations make it a key area of focus for forward-thinking online travel agencies (OTAs), investors, startups and suppliers.

Much of the appeal is Southeast Asia’s upside. Its online travel population of 39 million represents just 11% of the region’s adult population. As that figure rises, more travel providers are prioritizing this growing population of young, tech-savvy consumers, eager to travel.

Phocuswright’s The Southeast Asian Traveller offers a detailed look at the behaviours, attitudes and preferences of travellers in Thailand, Malaysia, Indonesia and Singapore. Each country has distinctive market realties and consumer habits, as revealed by detailed examination of online travel booking habits.

They’re Young, Especially in Indonesia and Thailand

While online travellers tend to skew younger than the total travel population globally, Southeast Asian travellers are significantly younger than in most other travel markets.

Overall, nearly seven in 10 Southeast Asian online travellers are millennials (18-34). In Indonesia and Thailand, the traveller population is even younger: 45% of online travellers in Indonesia and 41% in Thailand are age 18-24. In all four markets, the young traveller population is a defining characteristic that has important implications for online travel. These digital natives came of age in an interconnected world, and many rely heavily on the Internet and mobile devices.

Mobile travel adoption is high, led by Indonesia and Thailand

With high smartphone ownership incidence across Southeast Asia, mobile shopping in general is popular among consumers in the region. The same is true for travel, even though desktop/laptop computers remain the most popular device type for travel shopping and booking across markets.

Mobile travel booking habits reveal a contrast in Southeast Asia – between the more established economies and online travel markets of Singapore and Malaysia, compared to the more recently emerging markets of Indonesia and Thailand.

More Indonesian travellers report booking travel via smartphone in the past 12 months than report booking via laptop or desktop. And although Thai travellers are more likely to use desktop platforms, more than half have used mobile for travel purchases in the past year. Travelers from the more mature markets of Singapore and Malaysia are testing the mobile waters. But they are holding onto desktop bookings in a way their neighbours – who skew younger and have less experience with online travel – are not.

They Prefer General Search for Destination Selection

When Southeast Asia travellers research travel destinations, general search engines are the most popular type of websites/apps used. Roughly seven in 10 travellers in Indonesia and Malaysia used a general search engine to research the destination for their last trip; a smaller share of Thais and Singaporeans use general search, but it is still their top source of information.

Online travel agencies (OTAs) also play a major role at the top of the funnel in Southeast Asia. Overall, travellers are supplementing their general search engine sessions with visits to a variety of information sources – including sites and apps for social networking, traveller reviews, travel providers and messaging.

Get deeper insights on the Asia Pacific market and network with the change makers in the industry at the upcoming Phocuswright India (February 28 – March 2, 2017, in Gurgaon, NCR, India). The three day event features several sessions with APAC’s leading OTAs including a Joint Interview of MakeMyTrip and ibibo Group, Keynote by Yatra.com and Joint Interview of Fliggy (Alitrip) and Paytm among others.

View the full program here.

The registrations are open for just the last few days. Register now to network and learn from Asia Pacific’s most innovative thinkers and leaders in the hospitality, travel and tourism industry.

The post Three things you need to know about Southeast Asian travellers appeared first on TravHQ.

While rising Internet and smartphone access fuelled growth in Asia Pacific (APAC) in 2016, varied infrastructure development, digital payments adoption and regulations make for an uneven e-commerce landscape across the region. Phocuswright’s Asia Pacific Online Travel Overview Ninth Edition: Online Travel Agencies analyses the competitive dynamics throughout APAC, with insight into online travel agency (OTA) gross bookings and growth rates. The report takes a deep dive into the four major OTA trends in APAC.

APAC is the world’s third-largest OTA region: Gross bookings hit US$44.5 billion in 2015, up 15% over 2014 and are forecasted to reach $96.5 billion by 2020.

1- APAC Is the Fastest-Growing Major OTA Region Worldwide

Internet and smartphone penetration continue to rise, supporting travel bookings’ migration from offline to online channels in the region. With relatively underpenetrated online travel markets such as China, India and Southeast Asia fueling OTA growth, APAC OTA gross bookings grew 21% in 2016.

The supplier market structure also adds to OTA growth in the region. Broadly, the APAC air market is crowded and the hotel segment is highly fragmented, offering OTAs an advantage in aggregating and distributing varied content in one place.

2- Mobile Is the Norm

With ever-increasing smartphone penetration, APAC OTAs are allocating more resources toward mobile product development and marketing. Abetted by sales via apps, mobile share of OTA gross bookings in China hit 45% in 2015 – the highest in the world.

As technology companies, OTAs have a strong lead over suppliers across markets when it comes to mobile development and products. While suppliers largely focus on and distribute a single product/segment, most OTAs distribute an array of products within a single mobile platform, thus appealing more to consumers.

OTAs accounted for the majority of mobile gross bookings share in the region in 2016: India (86%), Japan (54%), China (52%).

Combined OTA mobile gross bookings for China, India and Japan were $14.7 billion in 2015, up 52% year-over-year. Continued discounting and price wars on mobile, however, dragged down transaction values (and put pressure on revenues) particularly in China and India, restraining OTA mobile gross bookings from growing at a faster rate.

3- Online Travel Funding Swells, Competition Intensifies

Aggregate publicly disclosed funding to APAC digital travel startups exceeded $14 billion from 2005 through 1Q16, accounting for 43% of global funding. New entrants are challenging the established order and deploying capital toward price wars to win customer loyalty.

Funding to the region’s online travel companies has accelerated dramatically in the last decade; Chinese startups attracted 75% of the total regional funding.

Incumbent OTAs face competition – and a threat of displacement – from emerging intermediaries, which are tapping into new categories, attracting investor dollars and gaining consumer traction.

4- Consolidation Hits APAC Shores

As the region’s online travel industry matures and growth softens, major e-commerce players and OTAs have made notable investments and acquisitions to strengthen their positions in several markets.

As consolidation looms in the region, it’s eat or be eaten for APAC OTAs.

Want more information on OTA trends in the region? Get it straight from the leaders of APAC’s biggest OTAs at Phocuswright India (February 28 – March 2, 2017, in Gurgaon, NCR, India). This year’s program features several sessions with APAC’s leading OTAs including a Joint Interview of MakeMyTrip and ibibo Group, Keynote by Yatra.com and Joint Interview of Fliggy (Alitrip) and Paytm among others.

View the full program here.

Phocuswright India provides an unmatched opportunity to meet, learn from and collaborate with Asia Pacific’s top decision makers. It brings together a good mix of speakers and attendees carrying wide experiences boosting the value for attendees. You can find details about all speakers here.

Register now to network and learn from Asia Pacific’s most innovative thinkers and leaders in the hospitality, travel and tourism industry.

The post Here are the top four Asia Pacific OTA trends to help you plan ahead appeared first on TravHQ.

Asia Pacific (APAC) continued to fuel the global economy last year, which was otherwise stifled by geopolitical uncertainties, the Zika virus endemic, multiple terrorist strikes in Europe and the related refugee crisis in the Middle East. APAC’s middle class population is at the core of the booming regional economy. Their rising discretionary income makes them a highly attractive demographic for lifestyle and service-oriented companies, including travel suppliers.

Phocuswright’s Asia Pacific Online Travel Overview Ninth Edition analyses the competitive dynamics throughout APAC, providing travel companies and marketers with a comprehensive view of the region’s travel market performance from 2014 – 2020.

Online outpacing total market growth

Varied market and segment online maturity will allow the APAC online market to grow at a faster pace than the total market through 2020.

With China accounting for 39% (and increasing) share of the APAC travel market, its online dynamics – and progress – will significantly influence regional online travel growth.

Most online travel markets within APAC will grow in double digits through 2020, with the exception of Japan and Australia – New Zealand (ANZ). Once the online frontrunners in the region, these countries are experiencing slowing growth due to high online penetration. Japan’s share of the APAC online travel market will shrink eight points to 18% by 2020. ANZ’s share will also reduce, from 10% to 6%, during the same period.

Supplier websites lead online travel distribution

Three out of five online dollars were transacted on supplier websites in 2015. Skewed by direct online distribution mechanisms already in place for low-cost carriers (LCCs) and railways, supplier websites have an upper hand in online distribution.

APAC supplier website gross bookings will climb 89% from US$60.7 billion in 2015 to $114.8 billion by 2020. Chinese airlines will add to supplier websites’ momentum. Per the new government policy, state-owned airlines have to sell at least half of their tickets through online direct channels by 2018.

However, by focusing on underserved segments, OTAs will grow faster than supplier websites and the online travel market. Supplier websites will steadily lost share through 2020.

APAC has the world’s highest mobile travel penetration

With a rising number of APAC travelers having access to the Internet and digital banking via their smartphones, mobile will be the fastest-growing online platform in the region. Combined mobile gross bookings of China, India and Japan will reach $105.9 billion by 2020, up 325% over 2015.

OTAs win at mobile

In APAC, online travel agencies are at the forefront of mobile innovation, development, marketing and distribution relative to the suppliers. In India, OTAs accounted for 88% of the mobile travel market in 2015, while their counterparts in China delivered 60% of the market’s mobile gross bookings in the same year. OTAs will remain the major force behind mobile bookings in APAC.

You can purchase the full report here for the trends, individual market dynamics, projections through 2020 and key findings from various segments and countries.

Want more information on APAC trends? Get it straight from the leaders of APAC’s travel companies at Phocuswright India (February 28 – March 2, 2017, in Gurugram, NCR, India).

Phocuswright India provides an unmatched opportunity to meet, learn from and collaborate with Asia Pacific’s top decision makers. Explore the trends, technology and turmoil affecting Asia Pacific travel market. See industry innovators during Battleground. Hear from the most influential travel leaders during Center Stage. Find practical advice you can put to work in your own business during workshops.

This year’s program features several sessions with APAC’s largest OTAs:

• Joint Interview: MakeMyTrip and ibibo Group. Two of india’s largest online travel companies have merged. Hear from their CEOs, Ashish Kashyap and Rajesh Magow, on where they go from here and what it means for the rest of the market.
• Keynote: Yatra.com. Hear from Yatra’s co-founder and CEO, Dhruv Shringi, on distribution, competition, discounting and running an OTA in the public eye.
• Joint Interview: Alitrip and Paytm. Step by step, Alibaba has emerged as a prominent force – and investor – in the Chinese digital travel distribution space. Hear about Alibaba’s travel ambitions through a combined interview with the heads of its travel businesses in China and India, Tony Duan and Abhishek Rajan.

View the full program here.

This year’s speakers include:

• Oliver Hua, Managing Director, APAC, Booking.com
• Dhruv Shringi, Co-Founder and CEO, Yatra Online Pvt. Ltd.
• Amanpreet Bajaj, Country Manager, India, Airbnb
• Albert Pozo, President, Amadeus Asia Pacific, Amadeus IT Group S.A.
• Geeta Jain, CEO, India, Carlson Wagonlit Travel
• View all speakers

Register now to network and learn from Asia Pacific’s most innovative thinkers and leaders in the hospitality, travel and tourism industry.

The post Here are the top trends you need to know about the Asia Pacific travel market appeared first on TravHQ.