Iko Putera, CEO of Transport at Traveloka, shares the importance of driving the transition to sustainable transport
Transportation fuels travel. From planes to trains, cars to buses, travelers today have many options when it comes to traveling around the world. But those very same modes of transportation threaten to hinder our collective future.
The travel industry contributes to a large carbon footprint, with the sector accounting for approximately 11% of global carbon emissions. According to scientists, this number could double by 2050. Meanwhile, transportation contributes to his 20% of global carbon emissions.
As travel returns in earnest, sustainability is in the spotlight. Traveloka found that 80% of travelers surveyed in Indonesia are more likely to choose sustainable accommodation. The next thing to consider is transportation.
More of a moral imperative than a trend, more and more people are turning to eco-friendly vehicles to supplement their insatiable desire to travel. Achieving the best of both worlds is not easy.
This is where travel platforms can provide support. As a one-stop hub, we define convenience in the palm of your hand. Good green transportation choices not only make them more attractive, but also have the potential to reshape consumer behavior in favor of sustainability.
Lots of options, extra incentives
Intra-regional travel has long been a cornerstone of Southeast Asia tourism and is expected to play an important role in the years following lockdown. Research shows that by 2024, the number of tourists traveling within the region will reach 56.6 million, representing a compound annual growth rate (CAGR) of 5% from 2019.
Amid this major recovery, the travel industry continues to race against time to reduce its carbon footprint. There are some bright spots. While jet fuel remains the main choice, airlines are beginning to experiment with sustainable aviation fuel (SAF) derived from non-fossil sources.
Travel platforms have a great opportunity to take advantage of this early development. For example, Malaysia Airlines’ first passenger flight using SAF began operating in June 2022. By offering the option to fly with SAF-carrying brands, we are positioning the company as an industry leader committed to achieving global sustainability goals. This is encouraging more eco-conscious travelers to book on the platform.
Considering that 28 to 57 percent of travelers in Southeast Asia feel it is important to choose environmentally friendly transportation options, this shows that they are also mindful of consumer needs. In a competitive market, choice is king, and the travel platform with the most options will win, but only with strong partnerships that improve their products and services.
The power of partnership
Working with sustainable transport is an important step towards reducing carbon emissions. First, such collaborations create a more connected ecosystem by positioning travel platforms as central nodes.
The resulting integration will enhance services and encourage travelers to choose energy-efficient transport, while also bringing more sustainable companies into broader global markets. This is a win-win-win situation. Consumers have more choice, green transportation companies can enter the mainstream, and the travel industry’s carbon footprint could potentially shrink.
Steady progress is being made in Southeast Asia. Apart from the use of his SAF by Malaysia Airlines, Singapore Airlines announced tests of his fuel in July 2022. Singapore’s national airline also offers carbon offsets to travelers through an additional fee.
Interest in electric vehicles (EVs) is accelerating in the field. The global EV market is expected to reach USD 823.75 billion by 2030, at a CAGR of 18.2% from 2021 to 2030.
Car rentals are an essential part of any travel platform, so working with an EV company can open up access to sustainability-minded road trip enthusiasts. In fact, one of Traveloka’s most preferred airport transfer providers in Bangkok is His EV Operator, which complements the growing number of car rental companies offering His EV options on our platform.
These partnerships send a strong signal to travel industry stakeholders that sustainable practices can help make travel more environmentally friendly.
Utilize technology, but there are many challenges
One way to complement green transportation is by leveraging technologies such as artificial intelligence (AI). Travel tech companies have the ability to deploy AI to analyze data on peak times and popular routes, as well as provide accurate information about nearby rental cars, public transportation, and pick-up locations.
Route optimization provides consumers with dynamic pricing for ride-hailing services while preventing excessive carbon emissions. However, there are still challenges to overcome before we can fully transition to a sustainable industry.
While AI can be a powerful tool, the reality is that some functions, such as bus reservations in Indonesia and Vietnam, are still largely offline. The first building block to going green is helping companies become more efficient through digitalization.
Most intercity bus operators in Indonesia still rely on offline sales and last-minute purchases, making it difficult to optimize operations. In recent years, Traveloka has made it possible to go online, not only to manage the passenger check-in and boarding process, but also to gain insights to improve capacity and route planning. Digitalization allows us to build sustainability in transport.
Green transportation is no longer an option, but a necessity to protect our planet. Travel platforms can facilitate this conversation by promoting green travel options and fostering sustainable transformation in this sector.
Now is the time to act. Together, we can create a fair future for all.
