Google says COVID boosted OTA usage in APAC

COVID-19 has accelerated the desire of consumers in Asia Pacific to book their travel through online travel agencies instead of direct with suppliers.

In her keynote address at ITB Asia on Tuesday, Google’s sector lead for travel and vertical search in APAC, Hermione Joye, says the preference is due to OTAs' “quick ability to react to customer demands and make the user experience a seamless one.” 

In China, for example, Joye says consumers’ preference to book via OTAs has more than doubled this year. 

“They [OTAs] clearly articulated what was happening around China when it came to travel restrictions and opportunities and what they were doing from a safety standard perspective,” Joye says.

As in other parts of the world, leisure travel is driving demand in APAC. Joye says Google has seen searches for staycations increase threefold since January in APAC markets, and the primary motivation for travel among those consumers is for a “family getaway.”

Joye says Google’s consumer surveys have found cleanliness and hygiene are now the second-highest consideration when planning travel behind price.

“This can be a good thing as it’s something that all travel companies can offer and capitalize on, big or small. It just comes down to a process and how you communicate what you are doing to make the travel experience safe,” she says.

To capture demand, Joye offers three tips for travel brands. First, they should monitor and adapt to the latest trends regarding COVID-19 data and travel restrictions. 

“Opportunities can present themselves overnight, and you can easily access demand by being on top of these trends,” she says. 

Second, since the pandemic has accelerated digital adoption, brands should ensure their products have the right data infrastructure to provide a personalized experience for users. And finally, Joye says brands must communicate regularly and with transparency.

“That means really making it clear to the customer what steps you are doing to make sure they are safe and also how you can position your travel experience as a flexible one and ideally a price-sensitive one,” she says.

Similarly, Expedia Group believes OTAs will drive economic recovery for the industry, according to research it recently released.

The report finds that travelers are 57% more likely to book their travel through an OTA now than before COVID-19, and millennial and Gen X travelers are the most likely to book via an intermediary.

According to the study, the reasons travelers prefer OTAs include to get the best nightly rate (69%), to get the best room (40%) and to compare properties in one location (35%).