Miki Travel has been a trusted operator for group tours to Europe for years, and to stay ahead of the curve, managing director and CEO Ray Lau reveals the company’s expansion into the emerging global bed bank market with the launch of Miki Travel Online
When did you become involved with Miki Travel Online?
Before my tenure at Miki, I was employed by a competitor, working in the European tour operator business. Miki Travel’s founder invited me to join and develop its brand outside Japan, so I became a founding member of Miki Travel in Asia in 1993, responsible for the group’s business development in the Asian market. I assumed the role of CEO for the e-Business Division in 2017, which focused on the development of the FIT hotel wholesaling, thanks to the management’s foresight in pursuing business diversification. Two years later, I set up Miki Travel Online, an independent legal entity, to focus on the development of the emerging Bed Bank business globally.
What is your role and vision?
My vision focuses on business transformation and fostering partnerships, (as well as) to accelerate the business transformation and ensure we maintain a leading position, particularly in the post-pandemic landscape.
With over 57 years of history, our company is built on strong traditions, such as exceptional service and reliability; however, it is essential to expedite change, by integrating technology and automation, in order to preserve our competitive edge. Transforming from a traditional agent to an online business involved many changes, but not to our edge—quality service standards, delivery, reliability, and our historical background. With my professional background primarily in sales and business development, I firmly believe in the importance of trust and partnership.
What has Miki Travel Online specialised in, and why has it decided to expand now?
Miki Travel Online was launched in 2014 and concentrates on the burgeoning eBusiness sector, a rapidly expanding segment of e-Commerce. Although there were plans for expansion, these were delayed due to the pandemic. Currently, we are accelerating our action plan to resume our expansion efforts. Miki Travel Online operates globally with a workforce of over 200 employees across various locations, including Hong Kong, China, Japan, South Korea, Thailand, Singapore, Malaysia, Indonesia, the UK, Europe, Dubai, the Middle East, and the Americas, with a 24/7 operation and customer service centre situated in the Philippines.
Briefly explain its business model, positioning and strategy.
The business model of Miki Travel Online is evolving in response to changing consumer behaviours and the dynamic travel landscape, particularly in the post-pandemic era. It is imperative for us to adapt swiftly to remain competitive. The younger generation, along with advancements in technology, is driving significant changes in the industry, leading to a decline in traditional group tours and in-person bookings through travel agents. This shift necessitates a transformation of our business model to align with current trends while maintaining our commitment to customer satisfaction, which has been a hallmark of our service. In fact, Covid accelerated this trend, with our e-business accounting for 80 per cent of traffic during the pandemic, while group business was virtually non-existent at its peak.
Currently, group business accounts for 60 per cent, while online business represents 40 per cent.
Our strategy for business expansion will focus on scalability, market diversification, and the integration of technology. We aim to leverage fintech solutions and AI to enhance operational efficiency and optimisation. For instance, AI helps us in several ways, such as matching demand with supply, advising us when to price high or low.
As a regional hub, what role will your office play? How will it help boost trade partnership?
Our office in Hong Kong plays a crucial role in financial functions and overall management. Its strategic location strengthens trade partnerships and enhances our ability to serve clients worldwide effectively.
We wave our flags in big international events like World Travel Market, ITB and Arabian Travel Market and exhibit at regional shows like ITB China. In the past, we have remained behind the scenes and seldom invited trade partners to join our events. However, (moving forward) we plan to engage with our partners more frequently to reinforce suppliers’ confidence and enhance our market understanding. For instance, the grand opening of MTO’s new office in late September unprecedentedly invited our business partners, travel agents and hotel suppliers from Hong Kong and Shenzhen. We are deeply grateful for the relationships we have built in this region, which have been instrumental to our success. We look forward to forging even stronger ties through future events such as seminars, award presentations, or workshops for exchange.
Regarding innovative solutions, what initiatives has Miki Travel Online undertaken or plans to invest in to enhance its Bed Bank and booking system?
Technology is a crucial driver for Miki Travel Online, and we are committed to investing in system development to streamline the entire process, from sourcing to payment settlement. We are incorporating AI technology for data analysis to better understand and bridge the gap between sourcing and distribution, with a focus on demand and supply matching. A key feature will be the implementation of dynamic pricing to enhance the booking conversion rate.
Please outline your expansion strategy for the next 12 to 24 months in the region.
The business has shown significant recovery post-pandemic, nearing pre-pandemic performance levels. The FIT and online sectors present substantial opportunities, driven by evolving traveller behaviours and a technology-oriented environment. Our primary focus is to broaden our product offerings and inventory to align with market demands and continue to enhance distribution to meet customer expectations. This will be achieved by strengthening our sourcing team and connectivity solutions, while simultaneously increasing distribution resources for new market development, particularly in the Middle East, India, Latin America, and South-east Asia.
Our objective is to elevate our business volume to maintain our market position and strengthen our partnerships.
