A study
[1] by PayPal has shown that travel businesses in Thailand are not fully embracing the mobile opportunity. This is in spite of the proliferation of mobile devices in Thailand. Across Asia Pacific, people are increasingly shopping, paying and getting things done on their mobile devices every day, and travel is no exception. Today, travelers are able to research, plan and book their travels through mobile devices, providing more opportunities for businesses in the region who are mobile-ready.
Thailand is a major tourist attraction for travelers around the world, and the industry has continued to grow steadily, recording a 13 percent increase in occupancy and revenue per available room in 2015
[2]. Yet 29 percent of Thai travel businesses have no mobile presence. When prompted, 44 percent of Thai travel businesses cited the lack of time or resources; 41 percent indicated that they are not able to find a good mobile solution; and 37 percent of the businesses are worried about additional investments required.
Thai travel businesses, however, have moved faster than many of their regional counterparts to embrace opportunities that have arisen from the increase in mobile usage. When surveyed, 71 percent of the Thai businesses
[3] confirmed that they have a mobile presence. In comparison, only 50 percent of businesses in Singapore and 54 percent in Malaysia offer mobile-friendly services to customers.
Businesses, however, need to see the importance of staying ahead of mobile trends. On the domestic front alone, Thailand’s smartphone ownership is expected to reach 100 percent in the next four years
[4].
According to the same PayPal report, more than 50 percent of all travelers surveyed had researched as well as booked their travel online. The report helps businesses understand this digital traveler as one that is connected, spontaneous and on-the-go. Today’s digital traveler, who is increasingly coming from the Asia Pacific region, has a growing preference for making travel decisions on mobile devices, and demands security, simplicity and convenience.
Key Findings from PayPal Insights: The Digital Future of Travel
The future of travel is online
With widespread internet connectivity today, more travelers than ever are demanding the ability to book their travel online:
·More than half of travelers surveyed in Asia Pacific who traveled or are in Southeast Asia had made travel bookings online. 93 percent and 95 percent of travelers fromSingapore and Malaysia surveyed had made travel bookings online.
·Travelers in the region were also heavily reliant on online information sources for planning their travel, 98 percent of Malaysians, 96 percent of Singaporeans and 87 percent of Australians said they looked up online sources like travel websites and online forums to plan their trips.
Spontaneous travel is on the rise
Today’s digital traveler is increasingly willing to book last-minute travel:
- 54 percent of travelers surveyed had booked a trip within a week of deciding to travel, while 38 percent of them booked their tickets within a week of their actual departure.
- Travelers from China were amongst the most spontaneous of the countries surveyed, with 71 percent having booked a trip within one week of deciding to travel and 58 percent have booked a trip within one week of departure.
Travel booking is heading mobile
Across the region, while computers remained the top device used for online travel booking, a significant proportion of bookings are now done on mobile devices:
- Close to half of travelers surveyed had made travel bookings on their smartphones.
- Travelers from China had the strongest preference for mobile, with 73 percent having made travel bookings on their smartphones.
- Thai travel businesses continue to be ahead of their peers in Southeast Asia, with 71 percent having mobile presence. Only 50 percent of businesses in Singapore and 54 percent in Malaysia offer mobile-friendly services to customers.
“Thailand is well known for its vibrant tourism industry. However, as travelers evolve, so must businesses. Today’s digital traveler is demanding simplicity, convenience and trust when making travel bookings, and mobile is the way to go. If businesses can offer a simple and secure payment experience that allows travelers to make online bookings seamlessly anywhere they want, they are set for take-off. As an online and mobile payments leader with 188 million customers in over 200 markets worldwide, PayPal is focused on helping travel businesses in Thailand tap into this global opportunity,” Rahul Shinghal, General Manager, PayPal Southeast Asia.
Demand for convenient, secure and reliable payment partners
Travel businesses in Thailand and Southeast Asia ranked brand building and business expansion as top priorities in the future. The key to unlocking these opportunities is being able to provide experiences that today’s traveler loves, unlocking their passport to the world.
The report found that the digital traveler across the region rates security as a top factor that would encourage them to make a travel purchase with a particular website. By offering a payment option that is recognized, trusted and keeps financial information secure, businesses can increase consumer trust, which in turn drives sales.
When it comes to selecting an online payments partner, Thai travel businesses cited ease and immediacy of receiving payments (60 per cent), ease of sign-up (53 per cent), secure payments (43 per cent), good support services (42 per cent) and international reputation (42 per cent) as their top criteria.
With online and mobile payment solutions such as PayPal Hotel Direct, PayPal Mobile Software Development Kit (SDK), Online Travel Agent Payments (OTA) platform and the PayPal Express Checkout, PayPal is connecting travel businesses and their customers by enabling fast, secure and seamless payments.
[1] PayPal Insights: The Digital Future of Travel 2014
[3]PayPal Insights: The Digital Future of Travel 2014
[4]The Nielsen Company, 2015