Booking in Asia Pacific

December 2022

The recovery from the pandemic is already well under way in Asia Pacific, but it could take some time for booking sales to fully rebound, given the collapse seen in the travel industry in 2020. While most countries were recording very dynamic growth in 2022, China was lagging somewhat, with ongoing lockdowns as the country maintains its strict zero-COVID-19 policy. Booking sales are currently not slated to return to their 2019 levels in the region until 2025 in real value terms.

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This report comes in PPT.

Key findings

Booking sales gradually recovering

Booking sales started recovering in 2021, with further strong growth seen in 2022. However, the measures put in place to control the spread of COVID-19 caused such a collapse in the travel industry that recovery has thus far only been partial. And, in China, the region’s biggest market, progress is even slower given the government continues to pursue its zero-COVID-19 policy, meaning lockdowns were still being seen across the country even in late 2022.

Japanese travellers may be looking for the best bargains

COVID-19’s impact on the overall economy and consumer sentiment are slowing the recovery in Japan, with recent global political and economic turmoil also leading to increases in the prices of goods and the Japanese yen weakening as well. This is making Japanese consumers more frugal – while they have the desire to travel, and are finally able to do so, the need to balance travel with daily expenses is also important. Metasearch engines that offer the capability to easily compare offers and prices will therefore become more popular.

Online booking outperforming offline

Online booking overtook offline booking back in 2017 in Asia Pacific and, since then, online sales have continued to outperform offline. By the end of the forecast period, online sales through travel intermediaries will be as good as double those of offline players. The ability to compare different options and discounts via online intermediaries facilitates consumers’ decision-making, as they offer a convenient one-stop platform.

Positive growth expected throughout 2022-2027

Further strong growth is expected in the next few years for booking as the travel industry continues to recover from the impact of the pandemic. However, a return to 2019 sales levels for booking is not currently expected until 2025, given the losses caused by the strict anti-COVID-19 measures, including border closures, lockdowns and mobility restrictions.

Scope
Key findings
Asia Pacific loses most actual sales over the 2017-2022 period
Asia Pacific will again become the biggest region for booking sales over the 2022-2027 period
Slower growth in China during 2022 limits the overall dynamism in Asia Pacific
Air travel records major losses in China and Japan
Booking is recovering after the battering it took due to COVID-19…
…but China is slowing the overall regional performance
Lack of concentration in most countries among travel intermediaries
Ctrip.com a strong leader in travel intermediaries
Booking Holdings has a wide presence across Asia Pacific
Traveloka and MakeMyTrip among the brands moving up the rankings
Healthy growth rates expected over the 2022-2027 period
Online booking sales growth will continue to outpace the offline performance
China: Market Context
China: Competitive and Retail Landscape
Hong Kong, China: Market Context
Hong Kong, China: Competitive and Retail Landscape
India: Market Context
India: Competitive and Retail Landscape
Indonesia: Market Context
Indonesia: Competitive and Retail Landscape
Japan: Market Context
Japan: Competitive and Retail Landscape
Malaysia: Market Context
Malaysia: Competitive and Retail Landscape
Philippines: Market Context
Philippines: Competitive and Retail Landscape
Singapore: Market Context
Singapore: Competitive and Retail Landscape
South Korea: Market Context
South Korea: Competitive and Retail Landscape
Taiwan: Market Context
Taiwan: Competitive and Retail Landscape
Thailand: Market Context
Thailand: Competitive and Retail Landscape
Vietnam: Market Context
Vietnam: Competitive and Retail Landscape

Travel

Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.

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