Uneven recovery seen in Asia Pacific travel markets

Experts pointed out the uneven recovery of the Asia Pacific travel market post-pandemic at the recently concluded Web in Travel (WiT) conference in Singapore.

Participating experts at the conference’s Intelligence Watch: Next Generation Trends also observed that India is emerging as a key growth driver, while China’s outbound travel remains slower than anticipated, two years after the world reopened for travel.

The session panel featured insights from Phocuswright managing director Pete Corneau, PhocusWire executive editor Linda Fox, and Lighthouse chief executive Sean Fitzpatrick.

WiT founder Siew Hoon Yeoh said of the session’s findings: “While we are seeing positive growth in certain areas, like India, the slower-than-expected recovery of China’s outbound travel is a reminder that the industry still faces challenges. It also underscores the need for travel businesses to be agile and adaptable, embracing new technologies and strategies to capture emerging opportunities.”

Key learnings from the panel

• Mixed recovery in Asia: While China’s international outbound travel has not fully rebounded to pre-pandemic levels, India has emerged as a key market with significant growth in both inbound and outbound travel sectors.
• The future of AI in hotel operations: AI’s role in hotel operations is projected to become indispensable in the near future, aiding in daily decision-making and optimizing for revenue management.
• Data-driven decisions in hotel revenue management: Hotels are increasingly adopting data and AI technologies for revenue management, with larger chains leading the way and independent hotels becoming more open to these tools.
• The impact of AI on travel marketing dynamics: The integration of AI is reshaping digital marketing in travel, with companies looking to reduce reliance on Google and invest more in social media and direct customer engagement.
• Independent hotels’ growing adoption of AI: Independent hotels are beginning to embrace AI for operational decision-making, with affordable and accessible technology solutions leveling the playing field with larger chains.
• Generative AI’s increasing influence in travel: Investments in generative AI are accelerating within the travel industry, enhancing traveler-facing features and automating business operations, although widespread adoption varies.
• The slow rollout of digital ID and biometrics: Digital ID and biometric solutions are gradually being implemented across the travel industry, with the potential to transform various touchpoints like airports and cruise lines.
• The shift to digital channels in Asia Pacific: The Asia Pacific region is at the forefront of adopting digital channels for travel, with a significant shift from offline to online bookings likely to continue.
• The struggle for hotel distribution control: Hotels, especially in fragmented markets of Asia Pacific, Eastern Europe, and the Middle East, continue to battle for control over their distribution against the dominance of online travel agencies (OTAs).
• The evolution and resilience of online travel companies: Online travel companies have demonstrated remarkable resilience and growth over the past three decades, successfully navigating through economic shifts, market conditions, and the recent pandemic.