Vast untapped opportunities for mobile in APAC
02/10/2013 by WiT

The high adoption rates of smartphones and tablets across Asia Pacific do not translate into the full utilisation of mobile applications in the region’s travel industry, said a regional study released by Abacus International.

Abacus’ Five Major Trends in Corporate Travel Practices in Asia Pacific revealed there was a clear disconnect between the perceived importance and actual provision of smartphone and tablet applications in the industry.

The study surveyed a representative cross-section of corporate travel organisations from across Asia Pacific on their business practices to uncover trends expected to impact them over the next two to three years. (See full report below)

Some key findings

• 83% of respondents felt mobile technology would have a moderate to significant impact on their business, but only a third (33%) of those surveyed has implemente any mobile web or native applications as yet.

• Only four in 10 of the respondents have enabled flight and hotel bookings via mobile; one in 10 has provided the ability to make changes to existing arrangements; one in seven has created a specific app for tablet users.

• Corporate travel policy was another area where the prevailing trend was not reflected among agents. Despite the positive economic outlook 97% has received instructions from clients to further tighten their policy terms, leading to increased demand for alternative flight and accommodation options, right into the long tail.

• 73% of respondents noted higher low cost carrier (LCC) bookings for corporate travellers, mostly to comply with policies governing the choice of lowest fare.

Robert Bailey, Abacus International’s CEO, said the LCCs were also reaching out more to the corporate sector. “While the low cost market in Asia has yet to fully embrace corporate travel distribution some budget carriers are now clearing a path to the corporate accounts, recognising the scale of the opportunity with trade partners, particularly on routes where low-cost competition is beginning to crowd out.”

Despite the challenges, travel agencies are better placed to capitalise on the trends as they affect their businesses, he added. “The essential technology and content is already available and customised for clients in many different commercial settings.”

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