Major developments in the Asia-Pacific travel market to know about

The COVID-19 pandemic has devastated 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 national and international mobility, dealing a blow to the travel and hospitality industry.

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

The percentage drop was the smallest among all regional travel markets, 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 in 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 research developments that travel companies should keep an eye out for:

  1. OTAs emerge stronger: in 2020, OTAs increased their share of online reservations to be at supplier level. Strong brands, superior customer experience, increased vendor reliance on middlemen, customer propensity to use OTAs, and the shift from traditional agency activities to online channels have acted as a tailwind for the growth of OTAs.
  2. China is increasing mobile penetration: regionally, nearly six dollars will be spent on mobile for every 10 dollars of travel spent online that year.
  3. The national shines, the international remains dark: 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 leads by example: China’s distinct experience can be instructive for other travel markets around the world.
  5. Vaccines are cause for optimism: Phocuswright predicts that the APAC travel market will near its 2019 size by 2024. Vaccines will play a critical role in this journey. Although the pace of vaccine deployment varies by market, many countries in the region aim to immunize most of their populations 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, Macau, South Korea and Taiwan) and Southeast Asia. Southeast (including Indonesia, Malaysia, Singapore and Thailand).

Asia-Pacific Travel Market Report 2020-2024

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

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