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Asia's leading online players at a panel
at Web In Travel, from left, Adrian Currie of Agoda, Jens Uwe Parkitny of
Expedia Asia Pacific, Robbie Cooke of Wotif, Timothy Hughes, moderator and
Scott Blume, Travelocity/ZUJI.
With long-haul markets such as the US and Europe being hit by the global
economic slowdown, Asian destinations are increasingly looking towards their
neighbours for sustained growth.
And opportunities abound for those who know how to tap into the current mood of
the Asian traveler, their changing psyche and, increasingly, how they are
behaving online.
A Visa/PATA Asia Travel Intentions survey, timed for release at WIT (Web In
Travel), showed that more than 60% of respondents said economic uncertainty
would impact their travel plans over the next year.
The survey, presented by Ms Meranda Chan, General Manager-Singapore and Brunei,
noted that 57% would switch to less expensive destinations or itineraries, 38%
would travel domestically instead; and 36% would postpone travel plans for a
year.
The survey, which covered more than 5,500 people from 11 key source markets,
also showed the changing preferences of travelers, with respondents ranking
natural scenery top of "what attracts travelers", followed by sunshine and
beaches, discovering new places, food and history, heritage, architecture.
In terms of deterrents, terrorism/threats was ranked top of the list, followed
by infectious diseases, racial discrimination, natural disasters and airport
hassles.
Travel websites were ranked the leading source for travelers to seek the latest
deals, followed by books/travel guides, tourism board websites, recommendations
from friends or family and travel operators/agents.
And up to 75% of respondents said they preferred online sources to plan and book
travel.
Meranda Chan of Visa shed insights into
travellers' intentions in Asia Pacific at WIT.
Understanding the habits of the Southeast Asian online user
With that insight, understanding the online behaviour in Southeast Asia is
paramount to marketers and at WIT, Yahoo!'s head of marketing for the region,
Ms Bennett Porter, shared insights from a survey conducted by the online giant.
According to Yahoo!, Southeast Asia today has 82 million Internet users, a
number that will grow to 130 million by 2012; and consumers in Southeast Asia
are spending twice the time online that they were just two years.
Yahoo! also found out that young Asians increasingly want to access the online
world via their mobile phones. Currently the region has 255 million mobile
subscriptions, while young Asians spend an average of 3.1 hours a day online on
their mobile.
Ms Porter said that there were local peculiarities to the explosion of Internet
use in each country. In Indonesia, the median age of first-time online users is
16 years, while the typical profile of Indonesian online users was single
students under 24 years.
In the Philippines, young users typically access the web through Internet cafes,
while in Vietnam, the average age of the first-time user is much older at 34
years old. Typically, the Vietnamese were "info-hounds", she said, hungry for
news and information from the outside world.
Splitting typical users into five "tribes", Socials, Embracers, Fun Explorers,
Utilitarians and Casual Browsers, she stressed it was important to know the
characteristics of each group.
While those in the Social category were online mainly to be in contact with
friends, the Embracers were typical of those who used the Internet more for
greater work efficiencies, and were more likely to be influencers with regards
to websites. Fun Explorers were most typically gamers, while the last two
categories were infrequent web users.
The best advice in terms of targeting online users?
"Target your tribe. Who are you looking for online?" Those in the Social
category might respond better to video inputs, while people who were Embracers
tended to be more workmanlike in their online behaviour, she said.
Bennett Porter of Yahoo! shared survey
findings of online behaviour in South-east Asia.
Asia pays dividends for online travel players
Meanwhile, online travel giants are reaping dividends in the Asian online
market.
As bookings in Europe and USA begin to stall for online travel agencies,
companies such as Expedia, Zuji/Travelocity, Wotif.com and Priceline's Agoda
have found that their investments in Asia-Pacific markets are paying off.
"Asia-Pacific has become a huge part of the story for our group as a whole,"
said Mr Adrian Currie, CEO of Agoda.com, the Asian hotel reservation service
acquired by priceline.com. "Bookings are growing fast, and they're a
significant piece of the pie now."
"The Asia Pacific market is in some ways more lucrative because travellers tend
to book hotel rooms and airline tickets together," said Mr Scott Blume, CEO of
Zuji, Asia Pacific's leading online travel company. "Travel agencies can build
higher profits into such sales by securing wholesale prices from hoteliers and
airlines, and marking up these vacation packages."
Mr Robbie Cooke, CEO and Managing Director of Wotif.com, said the online portal,
which was launched in Australia in 2000, quickly became known as the online
marketplace for hotels' distressed inventory.
"We pioneered selling discounted accommodation based on hoteliers' live and
up-to-date inventory. By only selling a week ahead, and later 14 days ahead, we
got great rates from the hotels."
Mr Cooke added: "Our innovative way of displaying room rates gave travellers and
the hotels an easy way to check all available prices, up-front."
Mr Jens Uwe Parkitny, Managing Director, Distribution of Expedia Asia Pacific,
which has been successful in building its foreign operation from the ground up,
had a different approach.
"Expedia's game plan was to put more supply teams and market managers in the
market to provide consultancy services to hotels. Building supply relationships
in the region is key to the consumer value we deliver and it's also important
to match demand and supply," said Mr Parkitny.