Low Cost Airlines And Mobile Technology Boosted Asia'S Tourism Industry

The popularity of mobile App and the application of shared economy prove that the pattern of business travel has been broken. Not only western travel managers feel the impact, but also the impact is spreading to Asia.

In a recent report on Asian business travellers, McKinsey warned that the pattern of business travel in Asia will soon be shaken by the same force that changes the leisure tourism market.

Asia has long lagged behind Australia and other markets in adopting online reservations, making it very chagrin for travel managers eager to integrate technology into its travel policy.

However, it seems that this obstacle has been overcome. Nowadays, digital subscription channels are more popular than traditional channels such as calling agents or secretaries.

In the McKinsey report, travel managers are preparing to meet the needs of a wave of mobile travel bookings, and Asia is on the same path as a more mature business travel market.

There is also a subversive trend in Asia, that is, the rise of low-cost airlines in the travel industry.

The Asian business travel market has become the largest penetration of low-cost airline companies in the global business travel market.

There are, of course, great differences among different regions.

Among them, 63% of businessmen in Indonesia are willing to travel on low cost airlines, while only 25% in Singapore. Most of the Singaporean business travellers are still loyal to traditional airline companies.

Turning to low-cost airlines is not just to save costs.

The McKinsey report points out that travel agents realize that the low cost airlines have more convenient flight schedules, convenient flight network and supporting products, which can often force the flights of all service airlines.

Another noteworthy trend in Asia is the emergence of a shared economy.

The study found that at present, the travel policies of all enterprises tend to exclude the sharing of economic form of accommodation options, while travel personnel are more open to these new choices.

A large proportion of business travellers in Asia (70%) are familiar with the sharing of economic forms of accommodation, and 40% will consider this option on business trips.

McKinsey draws the interest of travel personnel to the choice of shared economy as a result of demographic changes.

The increasing participation of the millennial generation has changed people's attitude towards travel.

The study found that the possibility of choosing Airbnb and its competitors for the millennial generation of travelers is 11% higher than that of other groups.

The McKinsey Co report also mentioned a trend of increasing desire to extend travel to leisure travel.

The possibility of Asian travel personnel booking products including weekends is nearly two times the number of European travel personnel, the former ratio is 12%, and the latter is 7%.

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The more important point for managers is that the current trend of "casual travel" may be just revealing the tip of the iceberg.

Half of the McKinsey researchers said they would most likely extend their travel to leisure travel at their own expense.

Asia accounts for more than 1/3 of the global value of 1 trillion of the business travel industry.

In the next few years, the importance of this region will only increase day by day, and the market expansion will be four times faster than that of the North American market, and it will be two times the expansion speed of the European market.

Rapid changes have brought challenges to Asia's travel managers.

These travel managers have been having difficulty implementing advanced travel policies and adopting appropriate technology.

The results of McKinsey's research give people some reasons for optimism, but it also indicates some challenges.

Business travelers in Asia have a high degree of autonomy in making reservations. However, as these travel agents increasingly choose online reservations, it is easier for travel managers to perform management tasks.

Providing appropriate travel booking engines and selecting the choice of travel products within the booking tool can help companies to enhance compliance, while also keeping track of the travel staff's booking status and fulfilling their duty of care.

Cost conscious businesses will be selected by travel agents.

The airline companies were encouraged.

It is not difficult for most market companies to let their travel personnel adopt such cheaper aviation options.

Meanwhile, Asia's travel managers have to accept the rise of the Millennials.

These young generation of travel personnel, like their counterparts in developed western markets, are demanding mobile subscription schemes, which may not fully deploy online booking tools or have yet to adopt flexible travel applications.

The pressure of enterprises.

There is another challenge for the millennial generation, which involves integrating the increasingly popular shared economic content.

And global travel managers have realized the phenomenon of shared economy.

These latest findings are particularly useful for multinational enterprises with a large number of businesses in Asia.

With the new expectations of new suppliers, new technology and travel personnel in the business travel market, the gap between Asia and the more developed business travel market is shrinking.

This indicates that the strategy formulated for other markets may also serve excellent Asian travel managers, but requires Haina's regional differences and cultural sensitivity.

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