Blanca Menchaca, chief operating officer, BeMyGuest
Blanca Menchaca takes one side of the famous WIT Great Debate at Phocuswright Europe.
She will be battling with Bobby Healy of CarTrawler, asking if the "Asian Tigers" have enough to win over the global elephants, especially in a land where scale matters.
What topic should we be discussing right now, and why?
The rapid adoption of technology by attractions, tours and activities (ATA) to meet the increasing demand of online travelers.
The recent movements in the market, acquisition of FareHarbor by Booking.com and Bokun by TripAdvisor, once again has put the limelight on the sector.
Signals have never been stronger that indeed, ATA’s are coming of age and is one of the hottest sectors to invest in, in travel.
What is the most misunderstood element of your role and your company?
There remains a lack of understanding of Asia, which is often alluded to as if it were one country, which of course it’s not.
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Southeast Asia is an extremely fragmented region with a number of currencies, languages, political landscapes and regulations.
Doing business across the region requires patience and a solid understanding of the relevant macro-economic and cultural complexities of each country.
If you could change one thing about how the travel industry functions, what would it be?
Higher margins please!
What is the biggest opportunity in online travel in 2018?
There is an enormous opportunity for those who recognize and are prepared for the growth in outbound travel from Asia.
Asian travelers are on the move, with the emerging middle class and millennials valuing experiences over brands.
According to UNWTO, in 2016 China surpassed international tourism expenditure reaching $260 billion, compared to the US, which registered only $123 billion.
That’s even more impressive considering China achieved this with just 5% of their population holding passports, versus approximately 40% of the population in the US hold a passport.
What single piece of advice would you give a new business entering the travel industry?
Business models need to be tailored to the specific business they’re in, no one model fits all.
What accounts for the fragmentation in the attractions space, and how can technology be part of the solution?
At least in Asia, this segment is accustomed to conducting business and securing their sales volume offline, which can also mean long standing relationships with offline travel agents and other clients.
In more traditional countries these partnerships are still highly valued, and depending on the location, can also incorporate a cultural approach to doing business.
Signals have never been stronger that indeed, activities, tours and attractions are coming of age and is one of the hottest sectors to invest in, in travel.
Blanca Menchaca
It’s also not as black and white as hotels, or airlines in terms of types of rooms or cabin class on a plane.
There are so many parameters to consider. Attractions do business a certain way, and tours operate completely differently.
However, today’s travellers not only prefer to book and pay online, they actually expect it.
And the majority of tours and activities are booked the day prior or on the day itself, in-destination. No one wants to wait for an email.
Technology is definitely part of the solution, but the adoption of technology is what’s really going to have an impact and change the landscape.
But remember, a tool is only as good as its user.
How does the Asian attractions market differ from the US and Europe?
The APAC region has already overtaken Europe and the US as the largest market for attractions, tours and activities, accounting for one third of global travel activities.
Southeast Asia as a destination is one of those enjoying the highest market growth as it’s popularity is not based on only high frequency, inter-Asia travelers, but some of its most iconic destinations continue to attract international travelers each year.
The irony is that Asia still falls behind technology standards for the sector, but that is rapidly changing.
How has mobile transformed how Asian consumers approach tours and activities?
Mobile has transformed payments for everything, not just tours and activities.
The proliferation of cheap smartphone technology and clever gaming-like campaigns have encouraged Asia’s population to adopt a cashless way of life.
WeChat, Alipay, Samsung Pay, PayLah!, Suica are some of the few options available to consumers who talk, text, shop, order food, hail taxis, book travel, pay for products and services, deposit money into their bank or transfer money, amongst other things.
Asia especially has focused on developing frictionless mobile payment processes, more so than in Europe and the USA.