Shaping the future of travel

AMADEUS Asia Pacific President Albert Pozo said that, even with the region susceptible to health, economic and political issues, they continued to see strong growth in its travel and tourism industry.

Pozo, who took over the reins of Amadeus Asia-Pacific operations only last year, regularly shuffles himself in the 35 markets they are present in the region, as they maintain their position as the leading provider of advanced technology solutions to the travel industry.

"The travel industry is sensitive to unrest.  Critical situations affect travel but they also normalizes" Pozo said, while citing the Asian financial crisis of 1997 and the severe acute respiratory-syndrome outbreak in 2003.

Currently, tension is rising with several countries in the region embroiled in conflicting claims over the West Philippine Sea.

However, the Spanish-born Pozo, who has been with Amadeus for 23 years, still sees an upward trend in travel to the region.

"We see Asian countries as destinations and key drivers in the development," Pozo added.

Pozo has said in the past that these are exciting times for the Asia-Pacific region, as it begins its move toward the center of the global travel industry.

The International Air Transport Association (Iata) has projected that by 2034 Asia Pacific will have 2.90 billion annual passengers, or 42 percent of the global passenger traffic.

Iata also sees airlines in the region, combined, could be looking at a 14-percent increase in revenue to $6.60 billion this year as compared to 2015.  During the first quarter, Iata has already noted the strong growth in key international routes within Asia Pacific and the Middle East.

Here in the country, Philippine Airlines expects to carry about 14 million passengers this year, while Cebu Pacific is looking at 20 million passengers this year.

The Philippine situation

Pozo sees a lot of potential in the Philippines, especially with the focus the government has given to the tourism industry over the past several years.

"There is a good situation in tourism.  The Philippines has good potential," Pozo said, while citing the 11-percent increase in tourism arrivals last year to 5.36 million.

However, he said there are several challenges facing Philippine tourism, primary of which is infrastructure development and the streamlining of the bureaucracy.

"It is not just about airports and roads. Travel is a large ecosystem, and it must function effectively.  There should be intermobility that involves land, air and sea travel," he added.

Pozo said the Philippines is now in between having a strong focus in developing tourism and ensuring there are investments in tourism.  But he warned that some countries in the region, like Myanmar and Vietnam, which are both in the early stages of economic development, might be able to catch up with the Philippines.

He said there is an advantage for the Philippines not having a strong legacy while building from scratch, as it allows the country to adapt to current developments in the travel and tourism industry.

Then Pozo added that the country should do away with the red tape in facilitating travel both going in and out of the country.

"If you want businesses, then make it possible to bring in workers," Pozo said, while adding that  "the Philippines is also a source of labor for many geographies."

He also said the Philippines is in a strong position in the service industry, and that there is also a strong corporate travel in the country.

"How do you connect all of them?" Pozo asked.

In the Philippines Pozo noted the shift of travel agencies to online solutions, and he sees a lot happening over the next three years.

"Filipinos are now savvy transacting online.  More are now willing to pay online.  There is a change in behavior, a new generation," Pozo said.

Pozo added that there are well-managed traditional travel agencies in the country that have remained competitive because of the high degree of services they provide.  But, at the same time, he said there is strong growth in online travel agencies in the country

"There is a long way to go but we see an increase in online travel agencies in the Philippines.  That segment has the fastest growth," he said.

Enabling technology

According to Pozo, Amadeus will push with its core mission to be an innovator and facilitate the development of travel.

"We will enable travel through technology.  We see an opportunity to drive innovation.  We see new ways of conducting businesses," Pozo said.

He added that with them investing some $4 billion in research and development over the last 10 years, they are in a unique situation to address and solve travel-related problems for the rest of the world.

In the Asia-Pacific region, Pozo believes Amadeus has the capacity to understand customer needs.

"Travel is fragmented in nature and identity.  If you want to avoid problems, you must be conscious about investing.  Make sure you are connected," Pozo said.

He added: "We continue to understand the behavior of customers.  We keep our fingers on the pulse of travelers.  There is a strong focus on investing, developing and diversifying."

Pozo said their focus is not just on travel agencies and tour operators but are also providing solutions to airlines and hotels.

Expansion

Early in the year, Amadeus announced that it has partnered with the Tune Group, as it tries to boost the travel technology start-up scene in Asia-Pacific region.

The partnership allows Amadeus own corporate start-up Amadeus Next to work with Tune Labs drive technological innovation in the region's travel and tourism industry.

It is an example of a conscious effort at expanding its services but still remaining within its strength.

"There is a clear focus on acquisitions that are directly related to our core activities.  We look for partners in the ecosystem that complements our portfolio," Pozo said.

Pozo added that when they see a need for a particular sector, they look if it can be done internally or through acquisitions.

On their partnerships with other companies, Pozo said they could provide funding and technical support.

"We are building platforms and partnerships. We want to foster and enable innovation. We can also learn from those companies," Pozo added.

Amadeus Next is also working with Hubba Thailand, Malaysian Global Innovation and Creativity Centre, E27, TravHQ and Jungle Ventures.

Aside from acquisitions, Pozo said they are also investing in new solutions, including cloud-based solutions, for travel agencies and the rollout of anxilliary services for airlines and advanced payment system.

Pozo said even as they are considered as the leader in Asia, they want to expand that leadership even more.

Image Credits: Jimbo Albano

Source: Shaping the future of travel