The WiT Singapore 2022 conference saw the gathering of over 400 delegates from nearly 30 countries in Asia Pacific, marking the first physical reunion of the online travel industry in the region in three years. The resounding sentiment at the conference was that travel was back and so was Asia, with the theme of "Hello, New World" emphasizing the need for innovation and adaptation to new trends that will shape traveler behavior.

More than 80 speakers discussed the changes that the travel industry needs to make in response to the evolving needs and expectations of travelers. With the industry experiencing a rapid recovery in Asia Pacific, the conference provided a platform for industry leaders to share their insights and best practices for navigating this new world.

One of the key topics discussed was the rise of sustainable tourism, with speakers emphasizing the need for the industry to prioritize responsible travel practices. This includes reducing carbon footprints, preserving local culture and ecosystems, and supporting local communities.

Another trend highlighted was the growing popularity of experiential travel, with travelers seeking out unique and authentic experiences that allow them to immerse themselves in local culture. This has led to a rise in niche travel segments, such as culinary tourism, adventure tourism, and wellness tourism.

The use of technology to enhance the traveler experience was also a hot topic, with speakers highlighting the importance of embracing emerging technologies such as artificial intelligence, virtual and augmented reality, and blockchain to provide more personalized and seamless travel experiences.

Overall, the conference provided a platform for the industry to come together and share their insights and experiences on the future of travel in Asia Pacific. The resounding message was that the industry needs to innovate and adapt to the changing needs and expectations of travelers, while prioritizing sustainable and responsible travel practices.

The Future of Travel Belongs to Asia

Next month, the world's population is set to reach 8 billion, with the majority of the growth occurring in Asia. The rising middle class in countries like India, Indonesia, the Philippines, and Vietnam will be the driving force behind this growth. As these countries continue to develop and modernize, their middle class will expand, leading to increased consumption and demand for goods and services.

This growth in population and consumption presents both challenges and opportunities for businesses and governments. On one hand, it will create pressure on resources and infrastructure, as well as environmental challenges such as pollution and climate change. On the other hand, it also represents a huge potential market for businesses that can adapt to the needs and preferences of the rising middle class.

In particular, the growth of the middle class in Asia presents opportunities for businesses in sectors such as consumer goods, retail, and tourism. As more people enter the middle class, they will have more disposable income and will be able to afford more discretionary spending on these types of goods and services.

Overall, the rise of the middle class in Asia is a significant trend that will shape the global economy in the coming years. As this trend continues, businesses and governments will need to adapt to meet the needs and demands of this growing consumer base.

Revived Travel Industry in Asia: A Positive Sign for the Future

The impact of the COVID-19 pandemic has been uneven across Asia, with South-east Asia seeing a rebound in travel while North Asia, with the exception of China, is just now reopening. This is reflected in the recovery rates of international airports in the region, with all airports in Greater China dropping out of the top rankings entirely.

Before the pandemic, four airports in Greater China were among the top 10 in the Asia-Pacific region. However, now there are no airports from this region in the top 10. In contrast, South Asia now has three airports in the top 10, including Delhi, Mumbai, and Dhaka. Manila and Sydney have also entered the top 10 rankings.

Singapore, which was ranked third pre-pandemic, is now the number one airport in the Asia-Pacific region by a wide margin. This indicates the success of Singapore's approach to managing the pandemic and its efforts to rebuild the travel industry.

Attraction visitation rates in APAC have also shown steady recovery since March 2022. However, these rates are still nine to 12 months behind Western markets. Nonetheless, the opening of China is expected to significantly change this story, as China is one of the biggest travel markets in the world.

The uneven recovery across the region presents both challenges and opportunities for businesses and governments. While some countries and regions have been able to rebound faster, others are still struggling to reopen and attract visitors. However, as the recovery gains momentum, there will be increased demand for travel and tourism-related services, presenting opportunities for businesses that can adapt to the changing market conditions.

It is important for governments and businesses to work together to ensure that the recovery is sustainable and inclusive, and that the benefits of the recovery are shared fairly across the region. This will require investments in infrastructure, policies that support tourism, and efforts to ensure that the recovery is environmentally sustainable. Ultimately, a strong and resilient travel industry will be essential to driving economic growth and prosperity in the Asia-Pacific region.

Japan's Reopening Sparks Competition Among Travel Industry Players

The reopening of Japan has generated palpable excitement in the travel industry, with many industry players eagerly anticipating the return of one of the largest and most significant markets in the region. At WiT Singapore, almost every speaker, including Agoda, Klook, Expedia, Trip.com, and Booking.com, mentioned the reopening of Japan and how they have been preparing for it.

Rakuten, in particular, is excited about the reopening of Japan. According to Yoshiyuki Takano, Head of Travel & Mobility Business, Senior Executive Officer, Rakuten Group Inc, the company's inbound website saw a five-fold increase in transactions after the reopening. During the pandemic, Rakuten solidified its dominance in the domestic market, with its market share in hotel bookings growing from 15-16% to more than 20%. The company has also expanded and deepened its inventory, including a sustainable travel category.

Expedia Group, one of the biggest global travel companies, has stated that it was responsible for driving seven in ten US travelers to Japan before the pandemic. The reopening of Japan will undoubtedly lead to a race among industry players to capture this significant market, and it will be interesting to see how the competition unfolds.

For now, the industry is just relieved that Japan has reopened, and everyone is preparing to welcome back travelers. With Japan being a significant market, the reopening is a positive sign for the travel industry's recovery, and it is hoped that other markets will follow suit in due course. As the travel industry continues to navigate the ongoing pandemic, it is essential for businesses to remain agile and adaptable to changing market conditions, and to work together to ensure the recovery is sustainable and inclusive.

China's Uncertain Situation: A Silver Lining in Disguise?

The continued closure of China to travellers was a major topic of frustration at WiT Singapore 2022. Many industry insiders expressed disappointment at China's lack of progress in reopening to visitors. However, some see this as a blessing in disguise for the travel industry, as the phased reopening of Asia may provide some breathing room for the industry to recover in a more controlled manner.

Despite the struggles to cope with pent-up demand, the phased reopening of Asia may be a good thing. This may help the industry recover in a more measured and controlled way, while also giving it time to adjust to new safety protocols and operational requirements. Additionally, the pent-up demand from markets that have recently opened, including China, could help carry the industry through any inflation or rising costs that may dampen travel appetites from other markets.

There is no denying that China's reopening would be a major boost for the travel industry, as it was Asia travel's superpower before the pandemic. However, it is unclear when China will reopen its borders, and some experts believe that it may take longer than initially anticipated. In the meantime, the travel industry is focusing on recovery in other markets, including Southeast Asia, India, and Japan, all of which are showing promising signs of growth and resilience.

India Emerges as a Leading Destination for Travel

Indian travellers have emerged as a significant market for destinations such as Singapore and Australia, with India now the third largest source of arrivals to Australia. This is due to the rising middle class in India and their desire to travel. Brent Anderson, regional general manager of South and Southeast Asia for Tourism Australia, reported that as of July 2022, the total number of visitors to Australia has bounced back to around 40% of pre-pandemic levels. Singapore, due to its proximity and familiarity, has become Australia's second biggest source market, followed by India in third place.

Indian OTAs, such as MakeMyTrip, Ixigo, and Yatra, are also seeing a strong recovery. Meanwhile, the pent-up demand from Singapore is driving Southeast Asia's recovery, and it is expected to do the same for destinations in North Asia as they reopen. Singapore Airlines and Scoot have already driven recovery to Australia, and experts anticipate a similar trend for Japan in the coming months.

However, the question remains as to what the market opportunity for travel from India to North Asian destinations will be. Historically, Indians have preferred to travel south, but with the rise of middle-class travellers and increasing interest in exploring new cultures, there is an opportunity for destinations like Japan to attract the Indian traveller. It will be interesting to see how Japan seizes this opportunity and tailors its offerings to appeal to Indian travellers.

Overall, the emergence of India as a significant market for travel is a positive sign for the industry's recovery in Asia. As countries reopen, the pent-up demand from markets such as India and China may provide a much-needed boost to the industry, particularly in North Asia, where the recovery has been slower.

Short-form Content Takes the Lead in Travel Marketing

The use of video touchpoints in the travel journey has significantly increased in APAC, according to a Google-Kantar survey, with 56% of travellers using them, and 81% in India, the highest in the region. This shift towards video content is also driven by the growth of TikTok, which boasts over one billion monthly active users, with APAC showing rapid growth. The hashtag #TravelTok has garnered more than 3.5 billion views.

Tejveer Singh Bedi, Head of Travel, Southeast Asia, TikTok, said that travellers today seek entertainment through short-form videos, and social media is a great way to inform consumers about travel products. Bedi emphasized the importance of creating creative, fun, and authentic content that entertains travellers. Livestreaming has also become increasingly popular in Southeast Asia for travel products.

This trend towards video touchpoints and short-form content reflects the evolving preferences of travellers, who are seeking more engaging and interactive experiences. The use of video allows them to visualize their travel experiences and make more informed decisions about their trips. For travel brands, this means that investing in video content and livestreaming could be an effective way to connect with customers and improve engagement.

Moreover, the growth of TikTok and other social media platforms presents a significant opportunity for travel brands to reach a younger audience, who are increasingly turning to these platforms for travel inspiration. By creating entertaining and informative content on these platforms, travel brands can not only attract new customers but also build brand awareness and loyalty among younger audiences.

In summary, the use of video touchpoints and short-form content in the travel journey is on the rise in APAC, with India leading the trend. Travel brands that invest in video content and social media platforms like TikTok can improve engagement with customers and reach a younger audience, thereby boosting brand awareness and loyalty.

The Importance of Payment Methods in Travel Industry Across the Globe

The rise of digital payments in Southeast Asia is rapidly changing the way people pay for goods and services, including travel-related expenses. A study by payments company 2C2P predicts that digital payments will account for 91% of transactions in the region by 2025. As a result, travel vendors must adapt to this trend and offer a variety of payment options to meet the demands of their customers.

Digital wallets are gaining popularity among the unbanked population in Southeast Asia and are increasingly accepted by consumers who want to pay using their preferred payment method. Travel companies must recognize the importance of fintech and understand their customers' payment preferences to remain competitive in the market.

SheueChee Beh, Head of Business Development, Merchant Services APAC at JP Morgan, emphasizes the importance of knowing your customer and their preferred payment methods. By adopting a fintech mindset and offering a variety of payment options, travel vendors can cater to the needs of their customers and provide a seamless payment experience.

The growth of digital payments in Southeast Asia presents a significant opportunity for travel companies to streamline their payment processes and increase customer satisfaction. However, it also presents challenges such as security concerns and the need for reliable payment infrastructure.

The rise of digital payments in Southeast Asia is transforming the travel industry. Travel vendors must embrace fintech and understand their customers' payment preferences to remain competitive in the market. By doing so, they can provide a seamless payment experience and increase customer satisfaction.

Sustainability Takes Center Stage in Travel Industry Discussions

Sustainability was a major topic of discussion at the WiT conference, with speakers from across the travel industry emphasizing the need for collaborative action to address the challenges of sustainability. Participants recognized that the entire value chain, from airlines to hotels to online travel agencies (OTAs) and corporate travel, has a responsibility to act and embrace sustainability, or risk facing government regulations and constrained growth.

Despite this, there were concerns raised about "greenwashing," or companies making claims about their sustainability efforts without actually taking meaningful action. Andrew Dixon, owner of Cempedak and Nikoi, stated that there is too much marketing of sustainability intentions without sufficient follow-through on the ground.

However, Lee Cheh Hsien, director of planning for the Sentosa Development Corporation, urged industry players to take even small steps towards sustainability and to communicate their actions effectively. She acknowledged that some may accuse companies of greenwashing, but emphasized that it is better to take action and defend those actions than to do nothing at all.

The travel industry's impact on the environment is significant, and industry leaders must take responsibility for their actions and work together to find sustainable solutions. This requires not only individual action, but also collaboration across the value chain to implement sustainable practices and reduce the industry's environmental footprint.

Ultimately, sustainability is not just a buzzword or a marketing strategy - it is a necessary and urgent concern for the travel industry. As Lee Cheh Hsien noted, even small steps can make a difference, and it is essential that the industry as a whole takes action and communicates its efforts effectively to address sustainability challenges.