Asia can be an example for other regions of what the future might look like for travel and mobility technology, according to a report.
The State of Travel and Mobilility Technology in Asia report says travel is not dead and lays out five bets for what might happen in the coming months in travel technology.
The Lufthansa Innovation Hub report predicts a rosier immediate future for existing large players, such as Trip.com Group, especially in the medium term.
However, it also says more collaboration and partnerships are likely, similar to that signed recently between Air Asia and Trip.com Group, as well as Klook and Grab.
LIH also bets on the current digital acceleration leading to innovative engagement and pricing models such as livestreaming and subscription services, which it says are here to stay.
Livestreaming travel events from companies such as Klook and Fliggy are already gaining significant traction.
Christine Wang, head of business development Asia at LIH, says flight passes from airlines are providing a good platform for trying out new pricing models, pointing to Reveneo, the hub’s own solution for more flexible models for carriers.
One interesting item to note in the report is its prediction that business travel will come back faster in Asia than other regions because of the "cultural relevance" of face-to-face meetings.
The Singapore-based LIH unit is already working with the city-state's Changi Airport on concepts for business travelers in the "new normal."
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It also predicts governments in Asia will support travel much more than in other parts of the world.
Unknown is whether prior levels of venture capital funding will continue, with investors saying how hard it is to understand and predict consumer behavior.
The report highlights how half of global VC funding in travel and mobility startups has gone into Asia since 2010.
In 2020, while VCs are more cautious, more than $8 billion has still been pumped into travel startups, the report claims.
Wang says: “2021 remains to be seen but given that VCs are still investing in the space, I’m optimistic.”
She also sees mobile-first startups continuing to leapfrog other new businesses, with digital already such a “prevalent behavior” among Asian consumers.
“The phone has become the life for so many Chinese consumers for example," she explains. "I think there’s no Chinese person that does not use WeChat and all the functionalities and services that are on that and because of that digital adoption we believe startups in the space will be leapfrogging or driving innovation in the space.”
As well as its Berlin base and the office in Singapore, LIH bosses are still planning an office for Shanghai but its opening is delayed due to the pandemic.