“Budget travel isn’t about taking market share from premium airlines; it’s about activating new demographics to fly for the first time.” – Nadia Omer, CEO, AirAsia MOVE
Kuala Lumpur, Malaysia last night played host to the first-ever Travel Tech Thursdays, a joint event by WiT, Wego and My Indie World. Held at Wego’s office in KL Eco City, the 2-hour event served as a networking session for industry professionals that revolved around a 45-minute sharing session moderated by Yeoh Siew Hoon, Founder of WiT.
For this inaugural edition titled ‘Talking to Strangers’, the spotlight was on Nadia Omer, CEO of AirAsia MOVE, who shared her vision for the company and her thoughts on the evolution of travel in ASEAN. Speaking candidly, she discussed AirAsia MOVE’s strategy, her personal inspirations, and the shifting dynamics of the travel industry.
The people who inspire change
One of the earliest things we’re taught as kids is to not talk with strangers. The term itself carries risky connotations. Yet, according to Omer, being open to spontaneous conversations as adults can become teachable moments.
Omer has a keen interest in young people and women, particularly those who tend to be more introverted. “Youngsters have a real way of having a different output. They see things for the first time and interpret them differently. They can find solutions that are curious and interesting,” she explained during her one-on-one session. She also values the perspectives of more reflective individuals, noting that “we completely miss out on the voices of people who are not always the loudest, but have valuable insights.”
Her focus on youth and women extends beyond professional reasoning. “This interest was there even during my university days. It’s a safe alignment for me as well,” she said. At its core, her passion for working with young people stems from hope. “There’s something beautiful about high-growth categories. The possibilities are endless, and that excites me. That’s why I moved into travel – it’s at its tipping point in ASEAN, and I want to be a part of that shift.
“Every category has its inflection point – where things start to standardise or take off. Travel in ASEAN is at that moment right now. The demand is shifting, and it’s a very exciting time to be in this space.”
Reflecting on her move from FMCG (Fast-Moving Consumer Goods) to the travel industry, she sees a similarity between the two. “With FMCG, you’re dealing with high-growth categories. But over time, they mature, and the excitement of rapid change fades. Travel, on the other hand, is aspirational – people dream about it. And I wanted to be in a space where aspirations are turning into reality.”
Can AirAsia MOVE expand beyond flights?
AirAsia has been a disruptor in budget travel for over two decades, and according to Omer, AirAsia MOVE aims to extend that success beyond flights. “Our journey didn’t start now. It began 20 years ago when Tony launched a budget airline in ASEAN,” she said, referring to Tony Fernandes, the founder of AirAsia. “Budget travel isn’t about taking market share from premium airlines; it’s about activating new demographics to fly for the first time.”
Now, AirAsia MOVE is taking that mindset and applying it to hotels, rides, shopping, and dining. “We understand the budget traveller better than anyone else. We know where they’re going, how they book, and what matters to them. Sometimes they choose AirAsia, sometimes they choose another airline, but we can still serve them throughout their journey.”
However, the AirAsia name is both an advantage and a challenge. “For travellers, it’s a huge advantage. They know us, they trust us. But for partners, it can be tricky,” Omer admitted. “We work differently from traditional OTAs. We have deep airline experience and unique API integrations, especially for ancillaries. No other OTA has built that level of airline-specific tech.”
“We do not bid on any airlines keywords; that’s a policy we’ve taken. We are the only OTA that does not bid on any other airlines keywords,” emphasised Nadia Omer, CEO of AirAsia MOVE, at the inaugural Travel Tech Thursdays in Kuala Lumpur
Where is loyalty in a crowded, fragmented market?
It’s no secret that the online travel space is fiercely competitive, with global giants like Booking.com, Expedia, and Trip.com investing heavily in Asia. But Omer remains confident in AirAsia MOVE’s competitive moat – its domain expertise in intra-ASEAN market, pricing and focus on budget travel.
“Yes, we’re up against some very big players. But we’re not trying to be everything to everyone. We are squarely focused on budget travellers who have been with us for 20 years.”
She highlighted the company’s structural advantage, too, a lesson taken from its low cost carrier culture. “Our cost structure is different. We’ve been profitable for two years, while many competitors are still struggling. That’s because we’ve removed unnecessary costs, allowing us to pass savings directly to customers.”
For AirAsia MOVE, pricing is key. “If we’re not competitive on pricing, nobody will come,” she said. “We operate like a government that receives funds – we make sure every dollar is used to bring the best value to our customers, not to inflate our own costs.”
Of course, one of the most debated topics in travel is customer loyalty. On our latest episode of Future Lanes, Ryanair CEO, Eddie Wilson, made it clear that loyalty means nothing in the low-cost carrier scene, where price is king; a sentiment that Omer wholeheartedly agrees with.
“Marketing teams think differently, but the data speaks for itself. Across industries, the majority of sales come from low-frequency customers. With AirAsia MOVE, 50% of our users travel with us just once a year, 20% travel twice a year. Only a small percentage are frequent travellers.”
Given these numbers, she believes the focus should be on delivering the best price and convenience rather than trying to create artificial loyalty. “I define loyalty differently. If a customer has a thousand ringgit for travel and they spend all of it on Air Asia, that’s loyalty. We have customers saving up the entire year to make that one trip happen. That is why I feel they are loyal, because they choose us, but we also have to earn their trust by making sure that we are the cheapest, because that’s our promise to them.”
She continued, “Our loyalty programs are slightly different because you can use the points like cash, because it’s a mass market affordability-focused loyalty program. If a customer is short on cash, they can use their points as cash.”
Fairplay and the future of AirAsia MOVE as a superapp OTA
During her session, Omer reiterated that in order to gain customer trust on the app, AirAsia had to make sure they were achieving the top search spot organically and not through controversial tactics like keyword bidding.
“We do not bid on any airlines keywords; that’s a policy we’ve taken. We are the only OTA that does not bid on any other airlines keywords,” Omer emphasised.
It’s a tricky situation, because as low-cost carriers, seeing their own airline not show up in the top spot tends to sting – but Omer assured the attendees at the Travel Tech Thursdays event that less-than-ideal rankings only motivates them to do better in terms of pricing and offerings.
Looking ahead, Omer sees AirAsia MOVE evolving into a full-fledged travel platform, one that serves budget travellers from start to finish. “I wouldn’t put it past us to do packages and run tours ourselves. We may even expand into becoming a marketplace for travel and packages. We are looking for value. Does it really add value to the customer or not? So, we are a budget travel company, and we will be in any shape or form that is relevant to our budget traveller.”
Want to be a part of the next Travel Tech Thursdays? It happens on the last Thursday of every month in Kuala Lumpur. Our next event is on March 27, where we’ll get candid with Ross Veitch, CEO of Wego, in a session called ‘Online Travel in Asia: The Untold Story’. Book your slot now.
