Face-to-Face: Simon Akeroyd
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This week Simon Akeroyd, Amadeus Asia Pacific’s Vice President of Corporate Strategy & Business Development, chats about the Amadeus NEXT initiative, which aims to help Asian technology start-ups…
Q) Why did Amadeus decide to embark on this initiative?
Today, the travel industry is so broad and the traveller touchpoints are increasingly growing. We recognise that no one player in the industry can do it all itself and that collaboration is key.
We also saw that there was a lack of start-ups in Asia Pacific really focusing on travel, despite the huge growth potential for the start-up industry. Amadeus knows the industry, and has the experience, and we want to share it with budding start-ups through Amadeus Next. Knowing what you want from the travel experience is not the same as understanding the nuances of the industry, and that’s a big challenge for the start-ups we’ve met.
With Amadeus Next, we work with start-ups to evolve new and original ideas in travel by leveraging our technology, expertise, reach and funding. Amadeus Next also serves as a driving force to build an ecosystem of like-minded partners and people who are excited about travel technology, and are looking to challenge the status quo.
Q) How many start-ups are you currently working with and what are your future ambitions for the programme?
To date, six travel technology start-ups are already working with Amadeus Next, including Klook, Orahi, Triposo, TopDocs, TripVerse and StayAngel. We’re open to all things travel tech and the start-ups focus on different aspects of travel from carpooling to tours, travel planning and even medical tourism.
In addition to the start-ups we work with, we also have other partners on board, such as JungleVentures and CyberAgent Ventures, as well as start-up organisations like Techsauce and Start-up Thailand. We’re in discussion with new partners, associations and start-ups on a daily basis and Amadeus Next is constantly growing.
Q) What does Amadeus hope to achieve from Amadeus Next one year from now?
It is important to us that Amadeus Next is not just another corporate incubator or accelerator. We want to bring something to the industry that is long-term and really valuable to all those involved. Our vision is to build and foster the leading travel tech start-up community in Asia Pacific. What do we mean by that? In order to make a long-term impact and truly commit, a holistic approach to supporting start-ups is required.
For Amadeus Next, this can be broken down into four categories. Firstly, it is about providing access to technology and solutions that allow start-ups to build and validate their Minimum Viable Product, as well as leverage decades of experience in travel technology. Secondly, start-ups can work with Amadeus experts to incubate and validate new ideas and businesses, as well as mentoring and guidance to navigate their way to success. Thirdly, Amadeus helps start-ups expand their reach by connecting them to the right network to test, validate and pilot new business models with Amadeus customers and industry players. And last, but not least, funding will always play a pivotal role. Amadeus can introduce start-ups to investors and venture capital around the world. Globally, Amadeus also has a dedicated Amadeus Venture Fund which offers early stage minority investments in start-ups.
At the end of the day, we want to establish Amadeus as the front-runner in the travel start-up scene and for Amadeus Next to be the go-to place for start-ups in the travel technology landscape and in the Asia-Pacific region. A year from now, we would like start-ups to recognise Amadeus as not only a large travel organisation but as a key player in the start-up space who has truly shaped the future of travel through Amadeus Next.
Q) Why it is important for established players to support start-ups?
Travel and technology are two of the fastest moving industries that exist today. We know that fresh, innovative and often disruptive ideas are constantly being generated from start-ups across the region, so they play a huge role in shaping the future of travel and how we can evolve our services and offerings to travellers.
In fact, start-ups actually hold a number of great advantages over the “big fish” in the tech travel industry. Start-ups are young and flexible. Even if they have a solid business plan in place, there is nothing confining them to those structures. This agility is great when something disrupts the industry such as new technological developments, changing consumer needs or new competitors. With traveller needs and demands changing more rapidly than ever before, start-ups are there to respond to these needs and demands almost immediately, outplaying established players who can take longer to implement changes.
An example of this is Triposo, which is part of the Amadeus Next programme. With travellers increasingly looking for an authentic travel experience, Triposo recognised this need early and reacted accordingly by creating a tool that allows travellers to connect with local experts if they want help arranging aspects of their trip, such as arranging for a visa, booking tours, airport pick-up and so on. And now Triposo has just announced it’s received its first US$3.1 million in funding. So you can see just how successful start-ups can be!
However, instead of seeing these nimble start-up players as a threat or competition, established industry players should embrace this as an opportunity to learn and collaborate. As I mentioned, it’s important to recognise that no one player can do it all, and for a company like Amadeus, working with start-ups through Amadeus Next is a great way to keep our finger on the pulse, and together envisage innovative ideas that could potentially revolutionise our industry.
Q) How significant is the Asia Pacific region in terms of travel tech innovation?
According to a study by Technavio Research, the global travel technology market is forecast to grow by 14.2% over the course of the next four years to US$12.21 billion. The compound annual growth rate figure is currently forecast to hit 7.5% in 2015, on the back of a market size of US$8.35 billion last year.
While Asia-Pacific only accounted for 18.7% of the market in 2014, as compared to EMEA with an estimated market share of more than 46%, Asia Pacific is a region that is seeing tremendous growth, experiencing a travel boom with the rise of a more affluent middle class, and lower cost of travel. With the Chinese business travel sector set to take-off, this is also likely to fuel massive growth in travel tech by 2017.
In this context, services and offers such as last-minute booking apps, self-baggage drop and online check-in among others are no longer good-to-haves but are increasingly becoming must-haves when trying to capture the traveller in today’s Age of Traveller Power. Travel start-ups understand these dynamic changes and are quick to respond.
Therefore, for us at Amadeus, it is important for us to focus on helping to support new ventures and start-ups in the travel industry, working with exceptional teams who have brilliant minds and excellent business ideas and helping lead Asia Pacific to become one of the top regions for travel tech innovation.
I’m excited for Amadeus to embark on this journey and can’t wait to see more ideas come to life through Amadeus Next in 2016!
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