United Federation of Travel Agents Associations Congress Kuala Lumpur 2013
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1 United Federation of Travel Agents Associations Congress Kuala Lumpur 2013
2 About Pacific Asia Travel Association Aligned Advocacy Insightful Research Innovative Events- Human Capital Development
3 Our Role in the Travel & Tourism System Building aligned advocacy and cross functional business building Airlines (AAPA, IATA) Airports (ACI) Travel Retailers (APTRA) Retail Travel Agents Government (APEC, ASEAN, MCTO) NTOs (UNWTO) NGOs Think Tanks (WWF,WEF) Tour Operators (ITOA, USTOA) Hospitality (AH&LA, IH&RA) PATA is one of only 9 groups in the global Travel Association Coalition TAC. This includes ACI, ASTA, CLIA, IATA, UNWTO, USTA, WEF, and WTTC. 3
4 Responsible Development and Promotion of Travel & Tourism to, from and within Asia Pacific Engaging since 1951 Integrating the Tourism Value Chain Public + Private
5 International visitor arrivals to Asia Pacific will continue to grow with an average annual growth rate of 3.6% over the period Total inbound arrivals are predicted to reach 537 million in Asia will maintain a dominant position in the inbound market of Asia Pacific, and its market share will reach 70% by International visitor arrivals to Asia Pacific from mainland China will exceed 100 million by 2016.
6 Past, Present and Future of Technology
7 The evolution of Technology: An enduring love affair 1960s 1970s 1980s 1990s 2000s 2010s
8 The Past: The Tech World of Travel Agencies
9 Easy Times for Travel Agencies CUSTOMERS TRAVEL AGENT SUPPLIERS
10
11 Internet users in Asia (Top countries) 1.13 BILLION INDIVIDUAL USERS 28.8 % Source: Internet World Stats 2011
12 World Internet Users and Population Statistics Region Internet Penetration in The Region (% Population) Internet Users in The World Africa 15.6% 7.0% Asia 27.5% 44.8% Europe 63.2% 21.5% Middle East 40.2% 3.7% North America 78.6% 11.4% Latin America/ Caribbean 42.9% 10.6% Oceania/ Australia 67.6% 1.0% World Total 34.3% 100% Asia Source: Internet World Stats (as of 30 June, 2012)
13 Key Global Telecom Indicators for the World Telecommunication Service Sector in 2012 (all figures are estimated) Mobile cellular subscriptions (millions) GLOBAL Developing nations Asia Pacific Market share of Asia 6,411 4,872 3, % Per 100 people 91.2% 84.3% 83.1% - Active mobile broadband subscriptions (millions) 1, % Per 100 people 22.1% 13.3% 15.8% (Source: International Telecommunication Union 2013)
14 Smartphones 3 billion smartphones users by 2016 Source: Portio Research Ltd.
15 Smartphone Ownership in Asia Pacific Source: Nielsen's Smartphone Insights Study (2012)
16
17
18 Travel & Leisure Product Purchase Intent Based on Social Media Website Reviews 72% 48% 57% 61% Source: Nielsen s State of the media: the social media report (2012)
19 Asia Pacific Total and online Leisure/Business Travel Gross Bookings (US$ billion) Source: PhoCusWright s Asia Pacific Online Travel Overview Fifth Edition (2012)
20 25% of leisure travellers and 40 % of business travellers use travel devices on their smartphone in 2012 in Asia-Pacific. Source: Amadeus-Survey of 1,531 Asia Pacific Travellers, August 2012, Frost & Sullivan forecasts
21 Challenging Times for Asian Travel Agencies SUPPLIERS ONLINE SUPPLIERS/ SOCIAL MEDIA CUSTOMERS TRAVEL AGENT
22 The Generation Factor Travel Agencies more resilient to online booking in Asia than in other parts of the world.
23 Today: a Wonderful World Wide Web
24 Activities through Social Networks and Mobile Dreaming Planning Booking Destination Sharing
25 62% researched an upcoming trip 43% read reviews from other travellers 45% sourced initial trip idea 31% watched travel video Source: Compiled by FunSherpa
26 Emergence of Travel Apps Affecting TA s business
27 Offered Supply from Online Travel Agencies and Travel Metasearch Engines OTA AIRLINES HOTELS METASEARCH ENGINES ,000-74, ,000-50,000-40, ,000 1, , ,000 A metasearch engine is a search engine where different OTA s can be compared. Their revenue comes from the fee the OTA s on which the booking is eventually made is paying to the metasearcher.
28 The surge in niche markets is favourable to online travel consumption LEARNING S-GENERATION INDEPENDENT FEMALE TRAVELLER SPORT FAN VFR TRAVELLER YOUNG URBANITE MEDITATION LGBT MEDICAL TOURISM
29 GDS versus online world Abacus, Amadeus, Travelport or Sabre develops content solution for travel agencies to remain competitive. GDS SOCIAL MEDIA Universal content ONLINE APPS Develop OTA content Rationalize products on offer
30
31 Redefining Travel Experiences
32 The role of the agent: Travel Lifestyle Manager Niche market becomes the norm requesting agents to offer higher-margin, tailored services to consumers.
33
34 Get Connected Ivy Chee Regional Director East Asia Facebook: Ivy Chee (PATA)
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