Power shifts to travel apps, even in desktop-first markets
20/09/2021 by Yeoh Siew Hoon

Google study shows 58% of travellers in APAC prefer engaging with apps

THAT digitisation was accelerated in Asia Pacific during Covid was not unexpected but what surprised Google’s Hermione Joye was the “massive and unanimous” acceleration of travel app use even in traditional desktop markets in the region.

Sharing the results of a survey Google did jointly with Kantar in which it surveyed 6,000 people across six markets – Australia, Japan, India, Indonesia, Vietnam and South Korea, Joye, the sector lead for APAC, Travel, told WiT, “I did not expect to see traditional desktop markets such as Australia, Japan and South Korea move 10-12%.

Hermione Joye: “I did not expect to see traditional desktop markets such as Australia, Japan and South Korea move 10-12%.”

“Our survey found that 58% of people across APAC prefer to engage with travel brands using an app, and in Thailand, India, and Indonesia, this preference was higher, at 67%.”

Results of the study were shared at Google’s annual customer and partner event ThinkTravel, held last week week as a hybrid broadcast from its Singapore offices, a step up from the 100% virtual event it had to hold in 2020.

In an article detailing the findings, Google said, “People said travel apps are more convenient to access on their phone, are more likely to have better deals and promotions, and are easier to browse for travel ideas compared with mobile websites.

“At the same time, COVID-19 travel restrictions and policies are accelerating travel app usage and digital transformation in the travel industry. Apps have replaced in-person interactions at travel agents or country borders – 36% of travelers in APAC and 46% of travellers in India, Indonesia, and Thailand said that they engage more with apps for safety reasons. In the last 18 months, app performance and features have improved, with the integration of important travel details such as vaccination status or passport information.”

With this rapid adoption of apps, brands are seeing people use phones as if they were mobile passports. “Government subsidy or verification of vaccination status now appears on mobile apps, and that has really shifted consumer behavior,” said Wilfred Fan, chief commercial officer at Klook. “People now see their mobile device as a pass, a permit, a certificate, or as something that they just have to use.”

Other key findings of the study are:

• First impression counts

In APAC, 83% of people have a travel brand’s app installed on their device. However, only 61% of them have actually used the app at least once, and only around 36% use the app regularly.

A positive first experience, and continued usage, are two factors that have the highest impact on positive brand affinity, loyalty, and advocacy.

Source: Kantar, Google, APAC, Apps: How to realize their full value, 2021.

For 23% of respondents, the top reason they haven’t used an app installed on their phone is that they’re waiting for discounts and promotions. According to Klook, people, especially millennials, need a nudge like a special offer on a brand’s homepage to engage with an app. Fan said, “Millennials’ app usage is a bit more spontaneous, and quite often, we need to put something in the forefront for them to see.” Accordingly, Klook’s app offers recommendations, special deals, and information on interesting things to do.

• People prefer all-in-one apps with lots of functions

When it comes to downloading and using an app, 67% of travelers prefer an app with various functions rather than many single-purpose apps. The top activities performed in travel apps are comparing prices, making bookings, looking for discounts, and browsing photos of travel destinations.4

With the rise of app usage, trends are also emerging around app activities. People now want to watch video tours of hotel rooms, take part in virtual experiences, and watch live streams of activities such as walking tours around popular travel destinations.

The pandemic has revealed a demand for app features such as flexible booking management systems and COVID-related information.

Travel industry experts on its podcast recommended that travel apps be all-in-one and have functions that cover people’s needs across their entire travel journey. Indeed, the top reason people gave for continued usage of a travel app was that it had all the features they needed.

Commented Joye, “We are seeing the rise of the multi-use app. This gives travel brands the opportunity for expansion, and we have seen airlines extend their services beyond air seats. Imagine what hotels can do as well. The key is understanding your customer and your data and giving them what they desire.”

But the more functions the app has, the more complicated it can be for the user which is why user experience is important. Said Aireen Omar, president of AirAsia Digital, in the podcast,  “When you have more and more things to sell, it’s quite challenging to make a user journey that is actually seamless, that actually captures every need and want of the user.”

Commented Joye, “We had a hunch that apps were going to be an integral part of life but not the mainstay, but clearly during Covid, consumer behaviour changed considerably. Even the grey generation – my mother for example – is getting comfortable with apps. The education that has happened in this period is tremendous, and is a positive development for the industry. And brands that have used the downtime to invest in tech, well, it’s been worth it.

“Once people start flying and travelling again, they will choose the apps that give them the best user experience.”

Listen to the podcast on Spotify and Google Podcasts.

• Featured image credit: Getty Images

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