As the international tourism market stumbled due to the COVID-19 crisis, another business in the supply chain, the online travel agency (OTA) sector, faced significant disruptions.

These disruptors of the global tourism industry, acting as a “bridge” between travelers and service providers, were equally affected by the pandemic!

John Brown, CEO of Agoda, a global travel platform offering over 2.4 million accommodations in more than 200 countries, stated that when COVID-19 came in, it “changed” the global tourism landscape, forcing Agoda to learn a crucial lesson and rapidly “adapt” to every situation, as some events cannot be predicted in advance!

In terms of business management during the ongoing pandemic, although the situation has passed its lowest point in April, Agoda needed to adjust its plans to manage cash flow by cutting costs, such as reducing marketing budgets, salaries, and laying off some staff, which was one of the toughest decisions. Nonetheless, Agoda's cash flow is projected to last until next year, even if the COVID-19 vaccine is not yet available.

Strategically, Agoda has shifted its focus to targeting the “domestic market” in the short term while the tourism sector continues to face the pandemic crisis. At the same time, it is preparing long-term plans for when the COVID-19 vaccine is produced and effectively utilized, confident that once the vaccine is available, the global tourism sector will return to normal, similar to 2019.

Agoda also recognizes the “changes” in traveler behavior before and after encountering COVID-19, primarily in three areas: travelers now prefer hotels with high safety and hygiene standards to enhance their confidence in staying, they seek greater flexibility in booking cancellations due to the uncertainty of future COVID-19 situations, and they desire better prices that offer more value for their money.

“In fact, consumers have long prioritized the pricing of travel products and services, but due to the economic impact of COVID-19 on purchasing power, they are now placing even more importance on getting better value for their money,” he added.

As a result, Agoda has adjusted its service approach by increasing flexibility, allowing customers to change dates or cancel bookings without incurring high fees, while also emphasizing the enhancement of hygiene standards in tourism, presenting symbols for hotels that meet these standards, and offering discounts of up to 25% in addition to government travel packages to make it easier for travelers to decide to purchase and travel.

John further shared that currently, most Thai travelers, especially those who usually travel abroad but are still facing travel restrictions, have adjusted their plans to travel within Thailand, opting to pay higher accommodation prices. Additionally, secondary cities such as Nakhon Si Thammarat, Nakhon Nayok, Khon Kaen, Udon Thani, and Chanthaburi have gained popularity, while the most popular destinations remain Pattaya, Hua Hin, followed by Khao Yai, Kanchanaburi, and Rayong.

“We must acknowledge that while Thailand is one of the countries recovering the best in tourism, alongside China, Taiwan, and Singapore, it still lags behind several countries that have not managed to control the COVID-19 situation, such as the Philippines or India. This allows Thailand to continue driving its tourism industry. However, since the Thai economy relies heavily on tourism income, accounting for 20% of GDP, compared to the global tourism industry's 10% of global GDP, even though Thailand is recovering quickly, it will still take longer than other countries to return to normal,”

Moreover, with the government considering extending the duration of the “We Travel Together” project, which was originally set to end on October 31, until the end of 2020, Agoda, as one of the partners selling accommodation under this project, believes that the extension should go beyond the end of this year or into 2021 to continuously stimulate the domestic travel market.

On the other hand, Yuthasak Supasorn, Governor of the Tourism Authority of Thailand (TAT), stated that within the next two weeks, TAT will propose to the National Economic and Social Development Council (NESDC) to consider extending the duration of the “We Travel Together” project, which was originally set to end on October 31, until the end of 2020.

Additionally, TAT will propose improvements to the conditions of the project after discussions with NESDC and Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow to “revamp” the “We Travel Together” project to increase the utilization of accommodation bookings through the project, which currently averages 10,000 bookings per day. As of yesterday (October 5), 1.44 million room nights have been used, leaving 3.56 million nights available from a total quota of 5 million nights.

“Since there are still many unused rights, TAT needs to assess the purchasing power of Thai travelers and propose adjustments to the usage conditions to make it easier for certain groups of Thai tourists to access the project, such as the elderly, along with unlocking residency issues so that people residing in those areas can use their rights to book accommodations in their locality, and reducing the advance booking period from three days to one day. Additionally, we will request consideration of using e-vouchers to enhance convenience in usage,” the TAT Governor said.

Marisa Sukosol Nunbhakdi, President of the Thai Hotels Association (THA), stated that previously, THA proposed to the Ministry of Tourism and Sports to increase offline participation in the “We Travel Together” project to reach groups that are not tech-savvy, such as the elderly. Therefore, she proposed that Krung Thai Bank issue a “We Travel Together Debit Card” for project participants, allowing them to deposit cash into the debit card at any Krung Thai Bank branch nationwide instead of funding the G-Wallet in the Paotang application. This card can be used as cash at participating hotels and restaurants.

For the room reservation process, participants can book directly with hotels by providing the “We Travel Together Debit Card” number to the hotel or online travel platforms (OTAs) to deduct money from the debit card. They will then receive a voucher confirmation through the Paotang application, and participants must show the QR code to the hotel on the day of check-in.

Regarding the use of food or travel vouchers, participants can pay any excess amount using the debit card, either directly or by entering the card information into the Paotang application for payment. For refunds on airline tickets, participants can request a refund following the normal procedure, with the money returned to the “We Travel Together Debit Card.”

SOURCE: www.bangkokbiznews.com