Balance economic growth and sustainability by adopting new trends – Roland Berger’s John Low

As the travel industry continues to adapt to the rapid landscape transformation, companies are navigating a dynamic environment marked by evolving consumer preferences and technological advancements.

Offering valuable insights is John Low, Senior Partner, Managing Partner Southeast Asia at Roland Berger, where he leads the Public Services team for Southeast Asia. He has over 25 years of experience, a background in consulting that spans two decades, and over five years in the industry and public sector.

With a strong focus on public services, manufacturing, digital hubs, healthcare, and hospitality, Low has cultivated an impressive portfolio of projects that reflect his expertise. He has collaborated with clients in Asia, the United States, Europe, and the Middle East, engaging in initiatives centred on digital transformation, economic and industry development, strategy development and organisational capability enhancement. His expertise also includes guiding major conglomerates through successful corporate transformation initiatives.

As a judge at the TDM Travel Trade Excellence Awards 2024, Low discusses the role of digital innovation in enhancing the travel experience and improving operational efficiency, positioning Asia as a dynamic hub for both leisure and business tourism in the coming years.

Given your extensive experience in consulting for the hospitality and public services sectors, how do you see the global travel and tourism industry evolving over the next five years, particularly in Asia?

The travel and tourism industry is poised for a steady growth especially in Asia over the next 5 years. The region will experience trends that are also reflecting the global shifts. Increase intra-Asian travel:

Rise in intra-Asian tourism: More low-cost carrier routes connecting SEA, China, Japan, and Korea will lead the surge in intra-regional travel, especially for short getaways and city breaks.

Growth in middle-class travellers: The growing middle class in countries especially China, India and SEA will boost outbound tourism. They will seek new international experiences and will drive growth in regional destinations and budget-friendly travel.

Surge in domestic tourism: Many countries especially in Asia have seen a rise in domestic travel and this trend is likely to continue.

Heritage and cultural tourism will remain strong: Asia’s rich historical heritage will continue to attract global tourists to its cultural assets, traditional arts, festivals as well as its cuisine, crafts, and performing arts.

Growth of mega-events and MICE: Countries like China, Japan, and UAE are increasingly hosting large-scale international events and conferences boosting business travels. This also spurs growth in luxury accommodations and hospitality services aimed at business travellers.

Sustainable tourism: With a rising awareness of environmental impact, many countries have already focussed on promoting eco-tourism, whilst some are already incorporating more regulations on conservation, sustainability, green infrastructure, and low-impact tourism. Countries like Thailand and Indonesia are promoting green certifications for hotels, operators, and attractions.

Southeast Asia is considered a high-growth region for tourism. What do you think are the most significant opportunities and challenges facing tourism operators in this region?

SEA is becoming a hotspot for digital nomads and remote workers thanks to its favourable visa policies with Thailand and Bali leading the way. Operators can capitalise on this trend by offering long-term accommodation packages, co-working and co-living spaces, and activities tailored to remote workers seeking work-leisure balance. The global focus on health and well-being is fuelling the demand for wellness and health tourism, and SEA is becoming a major destination for wellness retreats, spa resorts, holistic health programmes to mega events like cycling, strength, and endurance competitions.

In your view, what role will digital transformation play in shaping the future of travel and hospitality? Are there any specific technologies or innovations that stand out as game-changers for the industry?

Asia is rapidly adopting digital solutions in tourism with the rise of digital bookings, contactless payments, and even AI-driven travel experiences. Countries like Singapore, Japan, and South Korea are already integrating technology into tourism from AI-powered tour guides, big data analytics on consumer trends and preferences, to VR-based destination marketing. Super apps like WeChat and Alipay are already widely accepted making travel seamless and more accessible.

Collaboration within the travel ecosystem is more important than ever. How can travel businesses, governments, and other stakeholders work together to create a more sustainable and inclusive travel environment?

For any ecosystem to work, all the stakeholders play an important role to ensure that the industry can thrive and be sustainable. First, there must be a clear and aligned vision on how to take the tourism industry forward. By this, I mean a collaborative regulation and policy-making approach. It must start with a Government-led tourism framework that sets the long-term goals for the industry. The plan must involve getting input from travel operators, businesses, and local communities to ensure alignment and sustainability needs.

The Government should also collaborate with private operators through public-private partnerships to develop large-scale tourism infrastructure projects such as airports, transport systems, and sustainable tourism zones to encourage private sector innovation in public projects. Across SEA, Governments can work together to harmonise visa policies, health protocols, and safety standards to create a seamless travel experience via policy harmonisation.

Sustainability has become a focal point in the travel industry. From your perspective, how can travel operators balance economic growth with sustainability, and what role does technology play in supporting these efforts?

Travel operators can balance both economic growth and sustainability by adopting strategies that catch onto the related new trends. These include promoting eco-tourism by offering eco-friendly tours and experiences, nature-centric adventures, and developing packages that encourage tourists to engage with nature responsibly. In addition, operators can support and partner with local communities to ensure that tourism revenues benefit the hosts. Travel operators can offer offset carbon footprint programmes where tourists can contribute to environmental projects like tree planting, and renewable energy to counterbalance the emissions generated by trips.

Yes, technology can play a significant role in supporting these efforts. Smart tourism platforms use AI, IoT, or big data to optimise the tourism experience whilst minimising environmental impact. Real-time data on tourist traffic can be used to direct tourists to less crowded attractions can help to reduce pressure on popular sites. Operators can offer hybrid tours combining both physical and virtual reality tours of sensitive environments to reduce the need for parts which are sensitive or remote. Mobile apps can be used to guide tourists to sustainable businesses, eco-friendly hotels, and activities that can help local communities. It can also educate travellers on sustainable practices like waste management, conservation, and ethical wildlife tourism. Further, data analytics can be used for Sustainable Tourism management to track tourist behaviours, environmental impact, tourist flow, risk management for over-tourism, etc.

As a judge for the TDM Travel Trade Excellence Awards 2024, what key qualities or innovations do you expect to see in the nominees?

As a judge, I would be looking at products or offerings that are innovative, usage of technology, and impact on sustainability.