Do innovations in travel distribution signify change to the underlying structure?
Published: 30 May 2008
Travel Distribution Asia Special
Using mobile devices to sell and service travel is a new and complimentary channel.
As mobile phones emerge as a viable channel for travel information and reservations, those belonging to traditional way of distributing travel even consider much of this innovation as an enhancement to the travel buying and travelling experience rather than a fundamental change to the underlying distribution structure.
The potential of this medium is huge especially in Asia. In 2007 the number of mobile subscribers in Asia will exceed one billion people, representing around one third of the region's population.
In terms of challenges, the sophistication of technology and usage, too, varies. For instance, there is a relatively high usage of mobile devices and interactive booking tools for travel booking purposes in Asia in early adopter countries like Taiwan, HK and Japan. Some of these markets benefit from amongst the most advanced mobile infrastructure in the world, not only in terms of network speeds and handset features, but also in terms of mobile payments initiatives such as mobile wallets, mobile ticketing and mobile TV.
However in other parts of Asia, there needs to be improvement in infrastructure for this to occur. From opportunities perspective, there are also great opportunities such developing mobile markets. In these markets residential PC-based Internet broadband penetration is typically low, so mobile can provide an ideal means for people to self-book and manage their travel.
According to Peter Smith, VP eCommerce, Amadeus, many markets in Asia have been leading the way in technology adoption and airlines can further explore the benefits of technology and take advantage of new generation solution in order to keep up with the changing travel environment, with technologies such as Web 2.0.
"The adoption of different technology in different market within Asia shows very interesting trends. For example, while credit card culture has taken over in some markets in Asia, other regions remain loyal to their traditional cash-based mode of payment. It therefore becomes imperative for travel distributors to offer as diverse a booking option as possible to ensure optimal return on investment. It is encouraging to see that travel distributors are already offering various online and offline payment options," said Smith, who was one of the speakers during EyeforTravel 's Travel Distribution Summit Asia held in Singapore in March this year.
Even as Amadeus focuses on constantly innovating its technology solution to suit the regions diverse needs, at the same it encourages the adoption of specific technology that is applicable and beneficial to all. For instance, the adoption of paperless ticketing.
Smith says considering the fact that Asia boasts a dynamic mix of mature, developed and developing markets, this does pose challenges for the operators in the travel industry.
According to Mobile Travel Technologies, there have to be compelling reasons for consumers to use regular PC web e-commerce service, and in this regards mobile is no different. A travel supplier's mobile service has to be straightforward to use, fast, reliable, localised and feature the content that's appropriate to the mobile context. The technology utilised also has to be appropriate to the local market environment e.g. an SMS-based service may be more appropriate in some markets than one using the mobile Internet (accessible through the browser on a handset) or a downloadable application. Also, travel suppliers and intermediaries can successfully undertake marketing activities to encourage the usage of their mobile services, and to integrate mobile within a multi-channel approach.
Comments
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ritesh said on 2 Jun 08:
Thanks Kilgore for your feedback. We have recently posted quite a few articles on GDS in Asia as well as the progress made by mobile travel technology. We are working on few more articles related to both the topics.
EFT Team
Kilgore said on 2 Jun 08:
I like the way Peter Smith explains things -- complex ideas without all the unnecessary buzz words.
My only complaint about the article above is that each paragraph could have served as the basis for a longer article by itself.