China, China, China – the three words we’ve been hearing in the US Presidential Debates that’s become the biggest reality TV show both sides of the Pacific and Atlantic. Perhaps they should add India, India, India – because when it comes to online travel, there seems to be the rest of the world and China and India.
Lorraine Sileo: “Whatever is happening has created a healthy marketplace.”
In a conversation ahead of the WIT Conference where she will be speaking next week on “Trends That Matter”, we asked Lorraine Sileo, senior VP research for Phocuswright, what are the trends that our audience needs to know about and she said, “Consolidation, circle of disruption, same old hotel battles, India/China vs the rest of the world.”
Because even as consolidation has flattened markets everywhere leaving few and far between local OTAs – “the reality is there are two global giants and everyone else” – Asia continues to be an outlier.
“There has been consolidation, or at least investments, and Ctrip is dominant. But many local and regional players thrive vs. global players. And whatever is happening has created a healthy marketplace,” she said.
In numbers which she will share next week, it is evident the online travel growth in Asia Pacific remains healthy, streaking ahead of other regions of the world. “Next to the US, China and Japan have the largest OTA markets in the world, and China is twice as large as the third ranked market – UK,” she said.
And heed this, even though Ctrip is China-focused, it is already the third largest OTA in the world. Imagine what could happen if its expansion plans were to succeed.
The challenge it faces is what other global brands face – can its culture translate to other markets? Is it really true that if you can make it in China, you can make it anywhere else? Sounds good in a song, but the reality is very different.
Jenny Wu, chief strategy officer, Ctrip
This is what we will hear from Jenny Wu, chief strategy officer of Ctrip, at WIT as well as she takes to the stage along with Deep Kalra, CEO of MakeMyTrip, in which Ctrip took a strategic investment of US$180m this year.
It will be interesting to hear what these two top executives will say on Wednesday at WIT because their markets had the most disruption in 2015/2016.
“India’s hotel marketplace is being transformed as companies like OYO Rooms try to create a legitimate marketplace of star-less, independent properties. Its OTA hotel growth is projected to be higher than any other APAC market,” said Sileo.
“China, of course, is second. In both markets, travel gains exceeded GDP growth. While there remain concerns over an APAC slowdown due to China’s slowing growth rates, the region is growing faster than other world economies. Travel demand is strong and gross bookings are expected to increase 6-7% in APAC through 2017.”
OYO Rooms and Nida Rooms, two of the region’s biggest players in budget branded accommodation, will also be appearing at WIT.
Yes, China, India, travel – the three big stories in Asia and we’ve got it covered at WIT.
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