GrabAds’ recent Southeast Asia Travel Insights 2023 report revealed that 72% of its in-app survey respondents are eager to travel abroad over the next 12 months. This number marks a substantial 84% increase since the reopening of borders – in just one year. This is a promising sign for brands in the travel and hospitality sector: it’s clear Southeast Asia’s travel resurgence remains underway – and primed to grow as Southeast Asia approaches the year-end festive period.
With most Southeast Asian travellers now part of a growing middle-class, and are more digitally savvy, this new breed of travellers is not only shifting their spending online but gathering information via offline and online channels to explore options for their travel destinations. There are many opportunities for brands who understand the region’s hyperlocal insights to effectively target today’s Southeast Asian travellers. Here’s how brands can better prepare themselves to capture the year-end travel wave, based on GrabAds’ latest Travel Insights report:
Offering families a no-frills, no fuss and ‘stress-free’ travel experience
Families represent one of the most significant audience segments for 2023 travel, with 86% of those who plan to travel looking to go on at least one trip with others. With most schools across Southeast Asia closing for the year-end holidays, this is a high-value segment brands should look to prioritise.
Based on GrabAds data, those travelling with families emphasised safety and convenience as top priorities. For example, when booking rooms, these travellers prefer having a family suite (65%), child-friendly amenities (58%) and child-proofing (43%). Group travelling can be tough in itself, what more with children along for the ride. Brands looking to win the wallets of family travellers need to convey a sense of comfort and assurance through their services – some ways of doing so include offering packages or services catered to 2 or 5 pax for greater planning convenience, and playing up family-friendly offerings in advertising campaigns. Through such efforts, brands can position themselves as trusted partners for such family travellers, setting the foundation for repeat business down the line.
Present offers early as most travellers are planning ahead
Travellers are planning ahead more than usual. In fact, 86% of domestic travellers and 78% of international travellers mentioned that they’d prefer to book their own flights and rooms and are likely to use local operators for activities. This opens up upselling opportunities to travel industry players across the spectrum of travel activities. This includes airline companies and hotel chains that could influence travellers’ decision-making at the beginning stages of itinerary planning by featuring activity packages on their pages or apps. Hotels and travel agencies can also consider providing curated tours as an additional perk to guests, from downloadable recommended travel itineraries to help travellers plan their trips better, to even having the concierge assist them with on-demand ground arrangements.
With 47% of Southeast Asian travellers preferring to stick to their budgets, the trick to effective upselling is to engage travellers early. Brands can consider providing helpful tips and travel hacks early into the planning phase while incorporating how their products and services can help travellers have fun yet safe experiences in their marketing messages. This will ensure travellers factor these potential purchases into their budgets well before it’s fixed.
More travellers are now investing in essentials for worry-free wanderlust
Travel insurance is becoming an absolute must-have – no doubt due to the Southeast Asian traveller’s preference for no surprises and the post-pandemic need for peace of mind. According to GrabAds data, the percentage of people likely to purchase travel insurance has almost doubled, rising from 36% in 2021 to 62% in 2023.
It will be important for travel insurance brands to address concerns about personal accidents, medical costs or lost baggage in order to resonate with potential travellers – and most importantly, help travellers gain a sense of security and peace of mind during their holidays.
Repeat travel means more chances to build on loyalty
A 2023 customer intelligence report revealed that 9 out of 10 consumers in the Asia Pacific prefer to shop when a brand offers a loyalty programme. Yet, GrabAds data revealed that over two-thirds of Southeast Asians are unaware that such programmes exist when booking travel accommodations.
This presents an opportunity to educate potential travellers about hotel loyalty programmes and their advantages. To achieve broader reach, for instance, brands could work with non-travel partners in the region, such as superapps or other retail media platforms, to create gamified or incentivised campaigns with user-friendly redemption mechanisms.
With leisure travellers looking at around three trips in the next 12 months, the current landscape indicates a promising prospect for travel and hospitality brands to embark on these educational campaigns to encourage traveller loyalty. The upcoming festive travel peak is as good a time as any to start. In the long term, such efforts to reach and engage with travellers with a high propensity for repeat business are likely to yield a higher return on investment.
Hyperlocal insights to stay on top of the year-end battleground
In the modern travel landscape, travellers are in pursuit of more than just a transactional interaction with brands, beyond mere transportation or bed and breakfast – the latest GrabAds data from its users reveal that the travel experience today’s Southeast Asian consumers are now looking for encompasses everything from pre-trip discovery, extending through to post-care and loyalty schemes for travellers.
To cover the entire spectrum of experience, brands should turn to data and insights to transform their offerings and reinvent the ways in which they reach out to travellers, anticipate their needs and address their concerns. As a matter of fact, these insights are now more readily available than ever with travellers discovering brands and making purchases online.
The year-end festive period will be the next key battleground for travel and hospitality brands looking to capture travellers’ hearts. Looking ahead, the real challenge for brands is not merely tapping into this demand, but building long-term connections with consumers that come back time and again for their travel needs.
It is through understanding local trends, cultural nuances and hyperlocal dynamics, that brands can more effectively serve as the ideal companion travellers need in their pursuit of an authentic, superior travel experience – both right now and in the future.
This article is written by Jennie Johnson, Head of Marketing, GrabAds
The insight is published as part of MARKETECH APAC’s thought leadership series under What’s NEXT 2023-2024. What’s NEXT 2023-2024 is a multi-platform industry initiative which features marketing and industry leaders in APAC sharing their marketing insights and predictions for the upcoming year.
