There’ll be continuous endeavour for a sustainable travel ecosystem in 2023: Amit Mehta

The start of a new year is seen as bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

As 2023 kicks off, Adgully has approached key industry leaders to Crystal Gaze into 2023, as part of our annual Trending Now series, to highlight the major trends and developments that they see dominating the industry in the year ahead.

Amit Mehta, Country Manager - South Asia, Malaysia Airlines, highlights the key trends that will dominate the travel sector in the year ahead, rise of passenger traffic, and more.

Key trends that will dominate the travel sector in 2023

A key emerging trend is spontaneous travel, which means travellers will be looking for last-minute deals. At the same time, given the optimistic consumer sentiment on travel, travellers might lock in their trips ahead of time, especially to secure the best ticket prices. This will ensure players across the tourism industry, including airlines, will continue to launch campaigns, experiences, and deals that excite and encourage customers to choose their business.  

Another phenomenon that has gathered momentum in the aftermath of the pandemic is experiential travel. Many travellers are now willing to splurge on offbeat locations, as opposed to popular tourist destinations, so that they can experience a location like a local rather than a tourist. We expect this trend to continue throughout 2023.

Technology and digitisation have also assumed greater significance post-pandemic. Airlines and travel operators, which are agile in their operations and responding to customer feedback, will continue to prioritise digital transformation to ensure seamless experiences for customers.

Major expectations 

For the past few years, the aviation industry has been hit particularly hard by the COVID-19 pandemic. While the reopening of borders has had positive impacts with the reinstatement of flights, capacity and introduction of new destinations; we continue to face macroeconomic headwinds. Average fares globally for both international and domestic markets have risen, driven by pent-up demand, restricted capacities and impact from fuel and FOREX, raw materials such as catering, and others, resulting in a significant increase in the cost of sales over the last three quarters. The airfares are subject to dynamic pricing practices.

We continue to proactively manage our capacity and operations to mitigate unprofitable routes due to rising fuel costs and market conditions. We are cautious of potential downsides and market fluidity and are taking steps to cushion their impact on our businesses.

Another expectation in 2023 will be the continuous endeavour towards a sustainable travel ecosystem – from airlines to airports. This includes initiatives such as sustainable aviation fuel, contactless solutions and paperless processes, and increasing recycling rates. It is important to bring awareness and light on the importance of sustainability to customers, passengers, and key stakeholders – so that collectively we can reduce our impact on the environment and contribute towards a Sustainable Tomorrow.

Key focus areas for Malaysia Airlines in 2023

We foresee a stronger rebound in international travel for 2023, compared to 2022, as China eased its border measures earlier this month. Malaysia Airlines’ passenger traffic is up 85% year to date compared to pre-COVID levels, with most of the routes we operate  recording a steady increase in load factor performance and strong forward booking. We hope to regain the remaining capacity for Malaysia Airlines’ entire network serving China and North Asia by the end of 1H23, now that China has reopened its border, which will help  spur economic growth between Malaysia and China boosting the overall supply chain involving business and trade. The airline remains committed to offering much more value and affordable options for passengers through our promotions and products.

On top of this, as an airline subsidiary under Malaysia Aviation Group (MAG), we are focused on implementing our Long Term Business Plan 2.0 which charts our course to 2025; to  transform MAG from a pure-play aviation business to becoming Asia's leading travel and aviation services group.