Two Asian travel giants, Malaysia-based AirAsia and China’s leading online travel services provider Trip.com Group, have formed a “strategic partnership” giving users access to products and services on their respective digital platforms.
Under the agreement Trip.com and AirAsia.com, the carrier’s e-commerce platform, will share transit information for connecting flights, as well as membership benefits and product marketing.
Both partners hope the joint initiative will stimulate greater demand for travel by providing consumers with an end-to-end product, from flights to hotels, airport transfers and activities. Trip.com Group’s premium members will also get upgraded privileges on AirAsia flights.
The partnership is part of AirAsia’s ongoing strategy to transform from an airline into a leading travel and lifestyle player in Asia Pacific, as well as to boost revenue. Apart from flights consumers can now book hotels, activities and insurance on both its website and mobile app, as well as shop at OURSHOP, its e-commerce marketplace, .
Additionally, the LCC is selling flights on more than 100 other global airlines in a deal it inked with Prague-based travel technology company Kiwi.com last November.
“With our continued focus on providing the best value and choice for our guests, AirAsia has transformed from an airline into a leading travel, lifestyle and financial technology platform,” AirAsia Group chief executive officer Tan Sri Tony Fernandes stated.
“This partnership with Trip.com Group demonstrates our commitment and confidence in the China market, more so during this challenging Covid-19 environment, where we remain optimistic for borders to be reopened in the near future.”
For AirAsia, this partnership is its first tie-up with an international online travel company since it sold off its equity in the joint venture with Expedia Group two years ago.
To recap: Expedia and AirAsia formed their 50/50 joint venture in 2011, calling it a “happy marriage”. The JV, then called AAE Travel Pte Ltd, was based in Singapore. In February 2015, Expedia increased its stake in the JV to 75%, putting it in the driver seat in Asia. The ‘marriage’ ended in August 2018 when AirAsia divested its remaining 25% equity interest in the JV unit to Expedia for US$60 million cash. The company is now Expedia Singapore Pte Ltd.
Commenting on the collaboration with AirAsia Jane Sun, CEO of Trip.com Group, told WiT the company “is supporting AirAsia’s strategy to go into the online travel business with Trip.com travel content and inventory.”
She is looking forward to working with AirAsia “to prepare the travel industry for a triumphant revival, and deliver a superior experience to travellers.”
With the pandemic gradually being brought under control, Sun said Trip.com Group is seeing a recovery in travel demand across the Asia-Pacific region. “Already, we’ve seen accommodation volume in a number of key regional markets virtually recover to pre-pandemic volumes, while air ticketing volumes continue to make a strong recovery.”
This recovery is already happening within China’s domestic travel market. The Cross Provincial Travel Report, published by Trip.com Group, reveals 30 provinces and cities in China have re-opened, allowing inter-provincial travel. More than 4,000 travel agencies have launched domestic travel products on the Trip.com platform, double the number before cross-province travel was restored. Since July 15 the number of people booking holiday packages through the platform increased by more than 70% (see related story).
On when international travel from China could happen, and if there are plans by the China government to have reciprocal green corridors with countries in the region, Sun replied: “There have changes made to visa and movements. We believe the Chinese government will make appropriate policies to allow exchanges and air traffic.”
According to recent news reports, Hong Kong International Airport will reopen as a transit hub for passengers from China until October 15, and mainland residents can apply to visit Macau for tourism purposes from September 23.
Since the start of the pandemic Trip.com Group has been working with numerous companies to resuscitate international travel. On June 22 it launched ‘Travel On’ at a Facebook ‘live’ virtual event in collaboration with more than 70 partners in the aviation, hospitality, tourism and retail industries. The global initiative aims to restore confidence among consumers to travel again.
Sun said such collaboration would continue. “We are committed to working with more airlines, hotel groups and travel stakeholders for partnership.”
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