Face-to-Face: Jun Pyo Park, E-Business Team Manager, Abacus Korea
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1) How extensive is the take-up of travel technology in South Korea, and how well received have Abacus’ solutions been in this market?
In the recent years, the travel market in Korea has widely adopted IT technologies to distribute airline and hotel products as well as to ensure smoother business operations. In particular, Abacus’ airline solutions have received positive feedback from the market as they are considered technologically advanced and well suited to the industry’s needs. As with other Asian travel markets, Korea is evolving at a fast pace and there is scope to develop certain business segments and products further.
2) What challenges does Abacus face in South Korea that are specific to this market?
The prevalent use of IBE (Internet Booking Engine) has narrowed the technology gap and made competition in the online travel market even more competitive. This situation has increased business costs as companies give incentive payouts and fee waivers in their attempts to stay ahead of competitors.
3) The economic slowdown has hit all areas of the travel industry. Has the trend of cost-cutting caused companies to gravitate towards or away from Abacus solutions in South Korea?
Businesses are constantly exploring ways to reduce costs and maximise profits through downsizing and systematic automation. There is a natural tendency in the market to lean towards direct cut-backs on investments in solutions and operating expenses. However, savvy business owners understand they need to strike a balance as the search for new revenue streams may require an initial financial outlay in technology that will help them reap returns in the long term.
4) Which are the key growth segments or areas in your market?
The online travel segment is a fast growing market that has good business potential. The convenience of shopping online has motivated more consumers to buy travel services through the internet rather than from a traditional storefront. At Abacus Korea, we are making every effort to provide travel agents in the local market with best-in-class technology and services through our e-business initiative. These help agents meet travellers’ demand for online travel services 24/7 and assist travel businesses in building their brand among this group of consumers, thus giving them opportunities to increase their revenue.
5) What measures do you take to engage and interact with your local market, in terms of conferences, travel fairs etc.
We believe the first step to a meaningful engagement with the local market is to constantly improve our research and development, and offer new solutions that meet the market’s exact requirements.
We also look forward to our regular meetings with the travel fraternity including online travel agencies. These are important platforms for exchange of ideas and we also value it as a way to receive practical feedback from our customers.
6) What developments are we likely to see from Abacus in South Korea in the next 12 months?
We have plans to bring the local online market to a higher level of sophistication through advanced solutions that allow the selling of travel products to FIT in the next 12 months. Another area of focus for us is the development of global airline solutions.
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