Jack Zhai, Chairman, Abacus China

Q: What are the three things you think will happen in the travel distribution, marketing and technology space in China in 2013?

Mobile will play an increasing role, especially with the development of 3G/4G networks and higher penetration of smartphones, which is expected to reach almost 90% by 2016.

High growth in the travel industry, especially with the rapid growth in OTAs and other suppliers such as airlines, hotels and rail further developing their offerings to a rapidly expanding travel population

Greater government involvement to follow up on its first step of CAAC deregulation – in order to best support this huge travel growth, the right infrastructure needs to be in place. We look forward to working with our customer travel agencies, airline partners and hotel suppliers to help China achieve maximum travel growth in 2013. With the right stakeholders working together and leveraging technologies in the mobile, online and productivity space, China can sustain this upward motion and provide the best traveller experience for this growing sector.

Q: What did most people get wrong in China in 2012? And what did they most get right?

Wrong: Many people thought China would not emerge so quickly as a travel industry leader. However, with high growth in online, mobile and social media, along with the rights strategies employed by the government in collaborating with foreign travel markets, it has the highest spending power in the largest travel region in the world today, and is expected to become the largest business travel market globally by 2015.

Right: The opening of the market to foreign GDSs. Working with a company like Abacus, the local Chinese travel industry can look to benefit from our expertise, technologies, experience and large network of travel agents and suppliers. It is a good first step to ultimately allow greater choice, speed and service to the more discerning China traveller today.

Q: What do you think they will most get wrong in 2013?

For 2013 and beyond, it will be important for China to have a balanced strategy and execution via multiple channels and mediums. It is also critical for China to ensure the right processes, networks, partnerships with key stakeholders and technologies are all in place to best address the ongoing growth of China travel and to provide a higher level of service and personalisation to the Chinese traveller.

Q: As the year winds to an end, what will you remember most about 2012?

2012 was a year of great change for the travel industry in China. The welcome change in the CAAC regulation has seen a market open itself up to diversity and ultimately greater growth.

Bart Tompkins, Managing Director, Amadeus China

Q: What are the three things you think will happen in the travel distribution, marketing and technology space in China in 2013?

With the CAAC’s new regulation relating to CRS which came into effect in October 2012, we believe there will be a host of significant changes in the distribution, marketing and technology space in China in 2013.

Firstly, the new CRS regulation means that for the first time, international airlines can now use a foreign GDS, such as Amadeus, to distribute their airfares to travel agents in China, and travel agents can now use a GDS to book airline tickets, as well as hotel rooms and rental cars through Amadeus. Accordingly, we expect by next year, we will have begun working under these new regulations with airlines and travel agencies, and will have gained BSP approval for ticketing.

Secondly, our increased investment and the new market access in the market means there will be more advanced mobile and online tools, so we expect to see a correlating greater application of online and mobile use in the China market as these online and mobile tools play an increasingly significant role in offering both travel agents and travellers real-time information and greater flexibility.

Finally, as we bring in more technology to the market, the international airline market will grow as airlines have greater access to make bookings. There’s considerable opportunity for the Chinese travel industry to take advantage of a wide range of innovative products to help them manage the customer relationship and improve the travel experience centrally.

Q: What did most people get wrong in China in 2012? And what did they most get right?

Many people did not believe that the regulations to open up the market to foreign GDS providers would happen in 2012, but when they did, people assumed things would progress more quickly.

We were confident the market would open up this year, and always knew it wasn’t going to happen overnight, that it would be a gradual process, and that’s why we’ve worked to ready our business for the long term.

Q: What do you think they will most get wrong in 2013?

People, particularly outside of China, may expect that with the new government there will be significant or rapid relaxation and changes to regulations, not just in the travel industry, but more broadly as a market economy. However, we believe the China market will continue to open up gently.

I can only speak for what Amadeus will do in 2013 but patience and a collaborative approach will continue to be our strategy.

Again, observers externally may think the economy experience a considerable slowdown, but we anticipate growth will continue in the economy and there will certainly be no sudden changes.

We foresee that continued opportunities and challenges will arise next year, and very much looking forward to facing up to them. We will concentrate on continuing to educate the industry on what we can offer, and how to help their business.

The travel industry is growing rapidly in China; according to IATA, 800 million additional travelers will travel by air by 2014, and over a quarter (214 million) will be from China. These figures clearly highlight the need for more choice and competition in travel distribution. This competition will help to improve the standards and efficiency of the industry as a whole, and that is the opportunity for all players in 2013.

Q: As the year winds to an end, what will you remember most about 2012?

Without doubt the biggest milestone for Amadeus in 2012 in China was the CAAC’s regulation on foreign GDS providers being allowed to enter the China market. Although the regulation only partially opens the market, we warmly welcome this move. With Amadeus’ technology and global experience, we believe we can contribute to the development of the Chinese tourism industry. We hope in the future the market can open up more so that the industry as a whole can benefit.