Todd Handcock, Collinson's global chief commercial officer and president of Asia Pacific, talks about leveraging upcoming travel peaks to increase customer engagement.
The Asia-Pacific travel sector is off to a strong start heading into Q1 2024 so far. It continues to report the strongest year-over-year performance compared to other regions. Major markets like India have seen an incredible rebound in tourist numbers, surpassing 2019 levels, and China is now steadily following suit.
While 2023 was dominated by China's domestic travel demand, the focus has now shifted to China outbound, as evidenced by the significant increase in the number of outbound Chinese tourists after the Lunar New Year holiday. This momentum is expected to continue in the coming months, with the first wave already being seen in the Asia-Pacific region closer to the country.
India continues to be a major contributor to the region's tourism boom, with the market seeing an increasingly noticeable increase in international tourists from 2023 onwards. In response, Indian airlines are working hard to keep up and expand their operating capacity to accommodate this surge.
Despite the overall rosy outlook, looking ahead and understanding consumer sentiment is essential for airlines, financial services, and airports alike. According to our latest research report, Collinson sees consumers as today's “new C-suite.” New rules of engagement: customer expectations revealed. To operate in this era of customer experience, it is important to win the hearts and minds of your customers so that your brand can maintain growth momentum and deliver measurable business results.
Know your customers' needs and respond to them
By 2025, Gen Z and Millennials will each make up a quarter of Asia Pacific's population. Together, they account for half of Asia-Pacific's consumers and contribute significantly to demand for travel and related services. In today's unpredictable world where loyalty is fickle and unpredictable, winning their hearts is not just a nice-to-have, it's essential for your brand.
Collinson's recent Asia Pacific Consumer Insights Report found that more than half of the 4,750 consumers surveyed across the region believe that brands not only meet their needs, but also anticipate them. I'm looking forward to it. Additionally, 74% of respondents expect personalized communication.
When it comes to travel, this poses unique demands, especially for millennials who view travel as a right rather than a privilege. This perception of travel leads to a greater desire for rewards and perks that enable a positive travel experience. Similarly, in the same study by Collins, 93% of respondents said the availability of such perks would encourage regular engagement with a brand.
Such rewards and benefits don't have to be grandiose acts.Collinson's fear of switching off (FOSO) research reveals increased expectations for seamless travel and pre-flight experiences. More than 61% of Asian travelers say pre-flight hiccups can make them anxious to switch off for the rest of their trip. Obviously, the travel experience begins at the airport, not the destination.
FOSO's report also found that access to airport lounges, dining, and a smooth check-in process are top airport experiences for travelers in Asia to help them switch off before their trip. Therefore, the key to engaging with today's travelers is to provide end-to-end, customized, and seamless experiences that add value to their journeys.
To meet traveler expectations and the resurgence of travel in the region, Collinson has expanded its Asia-Pacific network of airport lounges and travel experiences by 40% in 2023. For example, Airport Dimensions (Collinson's company) has added a gaming space. Priority Pass Network has been introduced to Priority Pass Network in Dubai. This is a 24-hour gaming lounge designed to provide a more engaging and diverse airport experience, directly in line with the popular electronic gaming trend.
Customized developments aside, there are significant opportunities throughout the year that brands can leverage to engage with their most valued customers and, in turn, make a positive impact on their business.
China and India: markets to watch
Although China's domestic travel has been steadily recovering, international arrivals are still well below pre-pandemic travel numbers. Estimates suggest that the number of tourists visiting Japan will recover to 50% of 2019 levels by 2025. Although the number of Chinese tourists traveling abroad is on the rise, it is not expected to start returning to pre-pandemic levels until next year. This will give the region's major airports more time to prepare for the expected full resumption of travel in China. This is important not only from an operational perspective, but also in terms of meeting the needs and desires of travelers.
In fact, airport lounges in China are already incorporating travel experiences. For example, understanding that travelers value food and beverage options and wellness services as part of their airport experience, Juneyao Airlines V6 Lounge at Shanghai Hongqiao International Airport offers a Michelin-starred restaurant, Xiyue No. Introduced a variety of dishes prepared by 8. Comfort Zone is featured on the airport lounge menu, offering spa and beauty treatments.
Looking further ahead, India's Diwali is also a key moment to watch, with almost half of Indian travelers planning to increase their travel spending in 2024. Research shows that Indian travelers place greater importance on benefits associated with their travel experiences. Examples include airport lounge access, duty-free discounts, and airport gaming spaces. This is evidenced by Collinson's year-over-year airport experience visit data. Comparing the 2019 Diwali season results with his 2023, the number of Indian travelers enjoying the Priority His Pass airport experience in the world increased by his 254%.
F1 is also an exciting opportunity for brands to leverage travel and collaborate with brands in the travel and hospitality industry to build cohesive and memorable experiences, especially for millennials who are at the peak of their spending years. It's also a great opportunity between the third and fourth quarters. Mr Collinson confirmed last year that host city airport lounge usage increased by 76% during race weekends.
With these opportunities at hand to develop and engage the most valuable customers who are ready to spend money on what matters to brands, we look forward to an exciting year ahead in the travel space. We are preparing for the. Digging deeper into what consumers want is critical for brands to succeed on the road ahead. In turn, they will reward you for your loyalty.
