In the rapidly evolving travel market of Southeast Asia, AirAsia MOVE is emerging as a formidable player with a simple yet ambitious vision: to offer a unified platform where customers can book all their travel needs—from flights and hotels to vacation experiences—through a seamless, user-friendly interface. This bold goal is driven by the demand for more choices among consumers, who increasingly expect to plan their entire journey with just a few clicks.
A Bold Move into the OTA Market
AirAsia MOVE’s ambitious foray into the online travel agency (OTA) space comes at a time when Southeast Asia is experiencing a dramatic recovery in its travel market. In 2023, the region—already one of the fastest-growing travel markets in the world—saw travel gross bookings surge by 65% to $52 billion, approaching pre-pandemic levels. By 2026, the total market is expected to reach $70 billion, with airline and hotel bookings contributing over $42 billion and $25 billion, respectively.
This surge in demand is driven by a digitally savvy consumer base, with internet penetration rates soaring to 80% and smartphone users topping 326 million by 2023. For AirAsia MOVE, this growing appetite for digital solutions and travel flexibility presents an opportunity to redefine how people book travel.
In a recent interview with PhocusWire, Nadia Omer, CEO of AirAsia MOVE, highlighted a key insight that shaped the platform’s strategy: “Consumers are looking for more choice. They’re not committed to only one carrier,” she said. “They would like the hotel to be part of it as well.” This demand for one-stop, personalized travel experiences is at the heart of AirAsia MOVE’s business model, which offers customers access to a broad spectrum of airlines, accommodations, and travel experiences beyond AirAsia’s own services.
Seizing a Growing Market
While Southeast Asia remains the primary focus of AirAsia MOVE’s operations, the platform’s vision extends beyond just flights. The region’s total travel market is projected to grow substantially in the coming years, and OTAs are becoming the preferred channel for consumers to book flights, accommodations, and other travel-related services. In 2022, OTAs accounted for 57% of Southeast Asia’s online travel market, valued at $10 billion. By 2026, this share is expected to increase to 61%, representing a market worth $30.5 billion.
To capitalize on this growth, AirAsia MOVE entered a market already populated by hundreds of established OTAs. Competing against these well-entrenched players would require a distinct value proposition. AirAsia MOVE needed to differentiate itself by offering more than just low-cost flights and hotels. It needed to provide an experience that was not only diverse but also personal, affordable, and seamless.
The challenge was further compounded by the need to align AirAsia MOVE’s offerings with its broader mission of democratizing travel. For many Southeast Asian consumers, affordable travel options are paramount, and sourcing the lowest-cost deals on flights and hotels remains a critical hurdle for OTAs. Traditional booking channels often cannot compete on price, and securing the best possible rates across a broad network of airlines and hotels became a key challenge.
Additionally, AirAsia MOVE faced the issue of ensuring a personalized user experience. Recent studies indicate that over 90% of Asian consumers prefer tailored services, with three-quarters of shoppers rejecting brands that fail to meet their individual needs. Many OTAs struggle with irrelevant content and low conversion rates, often presenting users with offers that don’t match their preferences. Therefore, AirAsia MOVE needed to create a platform capable of delivering relevant, customized content that met the expectations of its increasingly discerning customers.
Navigating the Roadblocks
As AirAsia MOVE sought to build its platform, it encountered a series of obstacles common in the highly competitive OTA market. The company had to address issues related to the high volume of online traffic, ensuring that the platform could handle millions of simultaneous users while maintaining security and reliability. Cyber threats and potential service outages posed significant risks to the user experience, and AirAsia MOVE needed a solution that could offer both scalability and resilience.
To address these challenges, AirAsia MOVE turned to a strategic partner, PKFare, in late 2023. PKFare, a global travel technology provider, helped AirAsia MOVE overcome several hurdles by providing access to a vast network of airlines and hotel partners, as well as cutting-edge technology solutions that enabled the platform to scale quickly and offer competitive pricing.
A Strategic Partnership: PKFare’s Key Role
The partnership with PKFare proved pivotal in enabling AirAsia MOVE to realize its vision. With access to PKFare’s extensive airline network of over 600 carriers, AirAsia MOVE was able to broaden its offering beyond its own flights, providing customers with a much wider selection of options. This access was complemented by PKFare’s multi-sourcing model, which leverages over 140 suppliers globally to secure the most competitive flight fares. This model allows AirAsia MOVE to source fares from a wide range of channels, including New Distribution Capability (NDC) fares, airline APIs, and exclusive web fares, which many other OTAs are unable to access.
The technological backbone provided by PKFare has also been instrumental in streamlining the user experience. By utilizing artificial intelligence (AI) and advanced data analytics, AirAsia MOVE can deliver personalized, relevant offers to its customers. Through AI-powered algorithms, the platform ensures that users receive only the most competitive and pertinent options based on their preferences and previous searches. This approach has significantly increased booking success rates, which have reached nearly 95% in 2024, thanks to the precision of PKFare’s algorithms and the tailored recommendations it generates.
Moreover, PKFare’s technology ensures that AirAsia MOVE’s platform is both resilient and fast. With robust aggregation capabilities and advanced cybersecurity features, the platform can handle high traffic volumes without compromising performance. As a result, AirAsia MOVE is able to deliver a seamless and uninterrupted booking experience, with more than 75% of customer requests receiving responses within three seconds.
Delivering Results: Exceeding Expectations
As AirAsia MOVE celebrates its first year in operation, the results of its partnership with PKFare have far exceeded expectations. The platform has seen a remarkable 30% increase in sales, with PKFare already facilitating over 50% of AirAsia MOVE’s regional sales in Southeast Asia. The success of the platform is not just in its ability to deliver a broad range of travel options but in its ability to offer a personalized, frictionless experience that resonates with users.
The rapid success of the platform highlights the importance of cultural alignment between the two companies. Chan Kok Ding, Chief of Staff and Head of Business Development at AirAsia MOVE, praised the partnership, emphasizing PKFare’s customer-centric approach. “The PKFare team is highly professional, with a strong customer-centric mindset and problem-solving skills,” said Chan. “They carefully screen and provide only the most competitive and relevant content for AirAsia MOVE.”
Looking to the future, Chan is confident that the partnership with PKFare will continue to drive growth and innovation. “In leveraging its cutting-edge tech capabilities and operational excellence, the PKFare team is working closely with AirAsia MOVE to explore new growth opportunities and enhance booking experiences for our valued customers,” he added.
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