Major developments in the Asia-Pacific travel market to know

The COVID-19 pandemic has ravaged economies and the travel industry in Asia-Pacific, especially in countries heavily dependent on tourism.

As governments tried to protect their populations, they imposed severe restrictions on domestic and international mobility, dealing a severe blow to the travel and hospitality industry.

According to Phocuswright’s latest travel research report, Asia Pacific Travel Market Report 2020-2024, in 2020, total gross travel bookings are expected to drop 58% to $184 billion from $444 billion a year. earlier.

The percentage drop was the smallest of any regional travel market, mainly because China – APAC’s largest travel market – controlled the virus earlier and better than most other countries in the world.

The road to recovery is long and varies by market, especially as the more contagious Delta variant of the virus wreaks havoc across the region in 2021, hampering the resumption of travel.

The market is still expected to reach its 2019 size by 2024. Here are 5 key developments from research that travel agencies should keep an eye out for:

  1. OTAs emerge stronger: In 2020, OTAs increased their share of online bookings to be on par with suppliers. Strong brands, superior customer experience, increased reliance of suppliers on intermediaries, the propensity of customers to use OTAs, and the shift of business from traditional agencies to online channels have driven the growth of OTAs.
  2. China increases mobile penetration: Regionally, almost six dollars will be spent on mobile for every 10 dollars of travel spent online that year.
  3. The domestic market shines, the international remains bleak: travel suppliers in all countries have redesigned their product offerings to focus on local and national travel. Countries with a huge domestic market like China, India and Australia have a natural advantage over others that are more dependent on inbound tourism like Singapore and Thailand.
  4. China sets an example: China’s particular experience can hold lessons for other travel markets around the world.
  5. Vaccines are cause for optimism: Phocuswright predicts that the APAC travel market will almost reach its 2019 size by 2024. Vaccines will play a vital role in this travel. Although the pace of vaccine deployment varies by market, many countries in the region aim to vaccinate most of their population by the end of this year.

For this report, 13 countries make up the Asia-Pacific travel market: Australia, China, India, Japan, New Zealand, Northeast Asia (including Hong Kong, Macao, South Korea and Taiwan) and South Asia – East (including Indonesia, Malaysia, Singapore and Thailand). ).

Asia-Pacific Travel Market Report 2020-2024

This report provides comprehensive market assessment and projections for the Asia-Pacific travel industry from 2018 to 2024, including analysis of key segments, country-level share and trends, distribution dynamics and more again.

Also available in the Asia Pacific Travel Market Report 2020-2024 series:

Willie R. Golden