To better understand the opportunity presented by Southeast Asian travelers, Phocuswright undertook a consumer research study to identify behaviors, attitudes and preferences in Thailand, Malaysia, Indonesia and Singapore. The resultant report highlights trends across demographics, trip types and destinations, including travel purchase incidence and spend, online information sources and booking behaviors by channel and device. The report also tracks the adoption of mobile devices and social networking, and assesses how each is being used in relation to travel.
A 20% discount is available to Mekong travel and tourism stakeholders (our MekongTourism.org readership) who purchase the report. Please click here and enter Mekong-20 as the discount code (VIP Coupon). The code is valid until April 15, 2017.
Asia Pacific is a growth engine of the global travel industry, with travel gross bookings projected to surpass $390 billion by 2017. The region is home to many of the world’s fastest-growing online travel markets, and online bookings are growing twice as fast as in the U.S. and Europe. While much attention has been focused on the more populous China and India, Southeast Asia is emerging as a key area of focus for OTAs, investors, startups and suppliers. With a growing economy and a burgeoning middle class, Southeast Asia is home to a growing population of young, tech-savvy consumers, eager to travel.
Within Southeast Asia, Thailand, Malaysia, Indonesia and Singapore are distinct and diverse markets. Of the four, Indonesia is the largest by a wide margin, with a traveler population topping 19 million. Thailand (10.9 million) and Malaysia (7.2 million) are the region’s mid-sized markets, while Singapore is tiny at just 2 million travelers. Notably, the region’s two smallest markets are also those with the most mature online travel markets. Relatively high online travel penetration in Malaysia (35%) and Singapore (37%) in 2015 put these markets on par with Italy and Australia/New Zealand. In Malaysia, for example, low-cost carrier (LCC) AirAsia is key to driving online momentum, while Singapore’s tech-savvy traveler population, high credit card adoption and relatively mature digital payments landscape combine to yield a thriving online travel market. At the other end of the spectrum is Indonesia, with online travel penetration of just 15%. Yet Indonesia’s extremely young traveler population is helping to close the gap, and the country’s online travel market will be the fastest growing in APAC through 2020.
Representing roughly 9% of APAC’s online leisure/unmanaged business travel market (11% of the total travel market), Southeast Asia’s online market as a whole is projected to have a combined annual growth rate (CAGR) of 14% between 2015 and 2020. Fueling this rapid growth is an extremely young traveler population: millennials (1834) account for nearly seven in 10 Southeast Asia travelers. By comparison, just four in 10 U.S. leisure travelers and slightly more than one third of European leisure travelers (France, Germany and U.K.) are younger than 35. These digital natives have a high level of comfort with online and mobile technology, and they will shape Southeast Asia’s online travel market in the years to come.
The Mekong Tourism Coordinating Office was a partner in producing this report. As a result, we are happy to extend a 20% discount to our GMS travel and tourism stakeholders and MekongTourism.org readership. The discount is valid until April 15th, 2017. Please visit the link below and enter Mekong-20 as the discount code (VIP Coupon).