Travel industry 'keeps calm, carries on' during crises

The last few years have redefined the term “volatile”. Crises have increased the magnitude of the peaks and troughs in travel, and changing consumer demand is forcing the industry constantly to meet new expectations. 

For this reason, it could be said that crises are in fact helping our industry evolve.

The recession-hit United States is struggling to claw its way out of national debt while Europe is caught in a financial free-fall. Then revolution struck. We saw uprisings and the fall of regimes in North Africa. Political instability has an undisputed impact on travel to the affected areas. 

Natural disasters affected travel volumes in the Asia-Pacific markets. Australia was hit by record flooding, New Zealand by earthquake and Japan with an earthquake, tsunami and nuclear crisis. Bangkok has just seen flood waters finally recede. 

Not to be outdone, pundits predict that a “perfect storm” in the global economy is brewing and will hit us in 2012. 

In a business environment, crisis is never welcomed, and yet it can sometimes bring out the best in us. It forces organisations to rethink their strategies and pushes us to innovate. 

Many airlines have turned obstacles into opportunities. In 2011, five airlines in Asia – including Thai Airways International – confirmed plans to migrate their passenger-service systems to Amadeus’ Alta solution, allowing airlines to innovate in a fiercely competitive market. On top of a smoother reservation process, airlines can view more information about their passengers’ preferences, enabling them to offer more personalised service. 

This proves that even during a year of unusual instability, airlines are aware of the importance of keeping up with technology to help them evolve in line with the changing needs of the industry so they can continue to exceed their passengers’ demands. 

 

A lighthouse

In spite of major global upheavals, the Asia-Pacific region has remained the beacon of growth. In 2012, analysts expect the travel industry in the region will stay buoyant. Outbound travel has grown 6 per cent this year and a further 5-per-cent increase is predicted.

It is no surprise that this may be driven heavily by China and India. However, I believe it is also due to the spirit of the people. Japan’s recovery from the crises was an admirable example of strength and determination. It is this kind of spirit that gives me confidence that the region can survive any storm and maintain steady growth. 

One of the key trends that Amadeus predicts will shape the industry in 2012 is the “super-consumer”. Consumers are now more empowered than ever before, Similarly in the travel industry, there is enormous pressure on airlines, hotels and travel agents to keep up. 

Whether we are in crisis or awaiting the next one, the travel industry is learning to “keep calm and carry on”. 

David Brett is president of Amadeus Asia-Pacific.