The Role of Online Travel Agencies in Supporting Asia Pacific SMEs in Recovery
With joint efforts of Agoda.com, Twenty31 Consulting Inc. and the Pacific Asia Travel Association (PATA), this report represents a distillation of the narrative around the OTA/travel SME dynamic in Asia Pacific, including a forecasting aspect exploring how this dynamic will develop in the coming years with a view to providing actionable insights for key stakeholders within this ecosystem.
Overview
COVID-19 has and will continue to dramatically affect the global travel and tourism industry, including within Asia Pacific. Over the next year and beyond, recovery will face an environment of declining consumer trust given health and safety concerns, as well as decreasing disposable incomes.
However, with effective government management of the pandemic and support from the private sector, communities and civil society, destinations will eventually recover and build long-term resiliency. As part of this process, the travel and tourism industry in Asia Pacific will adapt and learn new ways of doing business. Our industry has a proven record of facing adversary head-on and collaborating to drive recovery.
Online Travel Agencies (OTAs) are playing a crucial role in that recovery process, with direct benefits for the millions of travel and tourism SMEs within the Asia Pacific industry. OTAs will continue to promote destinations, connect prospective consumers with products and experiences, and drive bookings. Furthermore, the ability of OTAs to analyze ‘big-data’ will allow SME operators to navigate the changing dynamics of consumer preferences and leverage real- time insights to better resonate with consumer appeals.
This report examines the roles OTAs play in terms of marketing, promotion, market diversification, and skills development, particularly in the digital space, and how they will be all the more essential for SMEs looking to build resilience and find the most effective means to survive and thrive in the post-COVID travel and tourism market.