MAJOR players in the online travel industry are taking a cautious approach to the fast-growing Chinese market as they seek an edge in what has been described as an “interesting but not fully logical landscape”.
Keynote speakers at EyeforTravel Travel Distribution Summit Asia, held at Singapore’s Raffles City Convention Centre today and tomorrow, concurred that China’s market do not play by the same rules as the more mature markets of Europe and the US.
Expedia Lodging Partner Services’ vice president, market management – Asia Pacific, Traci Mercer, said: “Anyone who’s worked in China knows China is one of the most disruptive markets in terms of pricing, price integrity, etc.
“China’s huge – it moves fast and changes fast but not a lot of people are online. In China we’re taking a different approach from Ctrip by going totally online and predominantly mobile. That’s going after a segment that’s very small but definitely the future.
“China is a long-term bet. If you play for today, for the short term, you won’t be there for the long term. It’s an interesting but not fully logical landscape,” she concluded.
While acknowledging Chinese metasearch engine Qunar’s dominant position within the local market, Skyscanner’s APAC general manager, Andy Sleigh, contended that the Edinburgh-based travel search company has its owns strengths too.
“Skyscanner has a significant advantage in international flight network that Qunar cannot compete against because it is 90 per cent domestic travel. We’ve got a small China office and separate China brand, and we’re targeting China outbound,” he revealed.
“There’s a Chinese proverb – crossing the river by feeling the stones – and we’re doing that. (We’re) not rushing in but being pragmatic and humble about the China market. We’re investing and understanding the Chinese consumer, localising our product and going to relaunch our China homepage shortly,” added Sleigh.
Likewise, Debbie Soo, vice president APAC for the US-headquartered Kayak, agreed that different KPIs apply for China. She commented: “We want to go in and get the right product, go slow, get the right value proposition, apply the lessons in the US and Europe in China, while also localising the product for the local consumer.”
Soo does not rule out joining hands with local players, citing the alliance between the unlikely partners of Ctrip and Qunar as an example. “Nothing is impossible,” she said. “Things move fast at Kayak and who knows what could happen?”
