WITH the pandemic dramatically changing how, where and when consumers travel, it is essential for hospitality businesses, especially the small and medium sized enterprises (SMEs), to adapt their operations to thrive within a digital global ecosystem, showed an industry report.
Conducted by Twenty31 Consulting Inc., the Pacific Asia Travel Association’s (PATA) report entitled The Role of Online Travel Agencies (OTAs) in supporting Asia-Pacific SMEs in Recovery revealed that there is a shift in the dynamic of the relationship between SMEs and OTAs, with the latter being acknowledged and increasingly valued as a technology, data and marketing partner.
SMEs leveraging OTAs can reduce their top-down investment especially around payments features, customer support as well as marketing efforts.
OTAs have also expanded opportunities for destination diversification, helping to drive tourism in second and third tier cities.
In Malaysia, OTAs to some extent perform the function of ‘national marketer’, promoting more areas in Malaysia and the tourism products and experiences.
Additionally, the use of data insights will future proof SMEs as they navigate today’s ever-changing landscape of the travel and tourism industry.
“OTAs are now using AI tech to tailor offers to customers and that is going to be very interesting. This will likely allow SMEs to match our products and services with high-potential consumers and drive better return of investment (ROI).” commented a hospitality SME in Singapore.
During this crucial recovery period, the report showed that more private-public collaboration will boost travel confidence, where the local government can draw on the private sector’s commercial expertise to spot and create new opportunities to improve the industry, businesses as well as the lives that were impacted by COVID-19.
The study also looks at the changing landscape of the travel and tourism industry and how OTAs have rapidly accelerated the growth in the region where APAC-based OTAs represent more than a third of global gross bookings.
“We are optimistic that the industry will eventually recover with governments and private sectors coming together to ensure that no one gets left behind,” said PATA CEO Mario Hardy. – Jan 30, 2021
