Localization, Payments, and Technology in Asia

At ITB Asia 2024, Andrew Smith, SVP of Supply at Agoda, emphasized how localization, digital payments, and technology are reshaping the Asian travel landscape and consumer experience.

Localization, Payments, and Technology in Asia are driving a profound transformation in the travel industry, according to Andrew Smith, Senior Vice President Supply at Agoda. Speaking during ITB Asia 2024 in Singapore, Smith outlined how these elements are reshaping traveler behavior and decision-making, especially within the Asian market—a region where Agoda boasts over 20 years of operational experience and deep consumer insight.

Localization in the Travel Experience

Localization, which Smith describes as a shift far beyond language options, has become a core expectation for travelers. “A decade ago, localization meant a simple language selector,” he noted. Today, it involves a deeply embedded approach throughout the customer journey. This extends from offering region-specific accommodations, such as Ryokans in Japan or budget-friendly options in India, to adapting search criteria and content based on the user’s location.

Smith elaborated on how the contemporary travel experience in Asia needs to reflect local tastes and preferences seamlessly. For instance, Japanese consumers often require detailed information about meal plans or age-specific accommodations due to cultural preferences. Similarly, marketing content should adapt to highlight experiences most relevant to the region, such as renowned local cuisine or traditional attractions.

The Role of Digital Payments

Smith emphasized that payments are another critical element that has reshaped the travel ecosystem in Asia. Unlike other parts of the world, the region presents a highly fragmented payments landscape, featuring a variety of localized options. “We support over 100 different payment methods across Asia,” Smith revealed, pointing out the essential role of catering to local payment systems like UPI in India and e-wallets prevalent in Indonesia.

He highlighted how payment methods have become pivotal in influencing travel purchases. In some markets, travelers may decide on bookings based on the payment methods accepted, showcasing the significance of integrating popular local systems. Agoda’s approach, according to Smith, includes supporting even unique methods like cash payments through 7-Eleven stores in Indonesia—a move aimed at democratizing travel and making it more accessible.

Technology’s Transformative Power

Technology, particularly with the emergence of generative AI (Gen AI), is reshaping how travel companies like Agoda engage with customers. Smith shared that while Agoda is still experimenting with Gen AI, it is committed to leveraging technology to refine customer experiences. “We’ve always tried to experiment and run A/B tests to optimize the purchase experience,” Smith mentioned, indicating that AI might be used for nuanced search filters or as part of smart chat solutions.

However, he noted that the industry is still in a learning phase. “We’re not at a stage where we know the exact direction everything will take,” Smith said, underscoring the experimental nature of current AI implementations.

Preparing for the Future: Connected Trips

Smith also spoke on the concept of the “connected trip,” predicting it will become a dominant trend in the future of Asian tourism. This holistic approach aims to integrate various parts of the travel experience, from booking hotels and flights to planning local activities, all within one seamless platform. This trend intertwines with the principles of localization, payments, and technology in Asia, creating a comprehensive, user-centric ecosystem.

Travelers are increasingly expecting platforms that offer this all-in-one service, which not only streamlines their planning process but also provides local payment options and curated local content. For hoteliers, aligning with this trend means collaborating closely with platforms like Agoda to attract and cater to region-specific travelers.

Challenges and Cybersecurity

Lastly, Smith addressed the issue of cybersecurity in the travel industry. With the integration of technology and digital payments comes an increased risk of cyber threats. He stressed that all players in the industry must remain vigilant, continuously updating their security measures and adopting best practices to safeguard against vulnerabilities. “All businesses need to work to stay vigilant and up to date with the latest technology to protect themselves,” Smith advised.

Conclusion

Andrew Smith’s insights at ITB Asia 2024 shed light on the evolving landscape of travel in Asia. The focus on localization, payments, and technology in Asia is not only reshaping how travel companies operate but is also influencing traveler expectations. As these trends continue to evolve, the industry’s adaptability and commitment to innovation will define its ability to meet the dynamic needs of the modern traveler.

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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