“It’s Not Us vs. Them” | AirAsia MOVE’s approach to competition, ‘Google keyword wars’ and being branded an OTA
AirAsia has never been afraid to shake things up. From launching as a scrappy low-cost carrier (LCC) to becoming a dominant force in Asian aviation, its latest transformation of its online platform into AirAsia MOVE is yet another bold step forward. At the heart of this shift is a simple but powerful idea: if you control the customer experience, you control the market.
For CEO Nadia Omer, this isn’t just a business strategy – it’s a necessary evolution. Omer recently stopped by the WiT Studio to talk about everything that makes Air Asia MOVE tick, and some of the things that come packaged with being a ‘superapp’ in the region.
Watch full interview:
“This was Tony’s idea,” she says, referring to AirAsia’s co-founder Tony Fernandes. “He realised that if we really wanted to thrive in this region, we needed to connect with customers directly.” That connection started with direct airline bookings – cutting out traditional travel agents and giving travellers full control over their flights. But as the travel industry evolved, so did AirAsia’s ambitions. The rise of OTAs (Online Travel Agencies) like Skyscanner and Expedia made one thing clear: travellers wanted price comparisons, convenience, and a seamless booking experience across flights and hotels. Rather than fight this trend, AirAsia MOVE embraced it.
Transitioning from an airline-first e-commerce platform to a full-fledged OTA wasn’t easy. “The biggest challenge,” says Omer, “is having the right North Star and aligning our partners to it.” As an airline, the goal was simple: push AirAsia flights. But as an OTA, neutrality is key. “For customers, pricing is everything,” she explains. “Sometimes AirAsia won’t be the top result, and that’s tough for us to accept. But if we want to be credible as an OTA, we have to be fair.”
This shift hasn’t just been an internal challenge – other airlines have been skeptical, too. “They wonder if we’re doing this to make them look bad,” Omer admits. “But times have changed. It’s not us versus them. We have to move together.”
One of the biggest hurdles in online travel isn’t just competition between airlines and OTAs, it’s the cost of customer acquisition. Google’s ad bidding system has made it expensive for airlines to buy their own brand keywords, essentially forcing them to pay for traffic they should own. “If I do a great job building my brand, it shouldn’t cost me more to show up on Google,” Omer argues.
That’s why AirAsia MOVE has taken a unique stance: “We don’t bid on any airline’s keywords,” she says. “No other OTA does that.” The idea is simple – if an OTA is buying an airline’s keywords, it’s essentially hijacking their customers. By refusing to play that game, AirAsia MOVE is betting that strong partnerships will drive long-term success over short-term traffic gains.
Beyond keyword wars, Omer sees bigger issues in the travel industry, particularly around fair competition. “A lot of OTAs use VC funding to drop prices and drive competitors out,” she points out. “It’s called dumping, and it’s why e-hailing and food delivery prices skyrocketed after the initial price wars.”
Her solution? A more balanced approach that benefits all players in the ecosystem. “For every booking we sell, we do commission sharing with hotels,” she explains. “No other OTA does that.” It’s a model built on shared value, one that could redefine how OTAs operate in the long run.
Nadia Omer, CEO, AirAsia MOVE will be joining us for the first-ever Travel Tech Thursdays, happening in Kuala Lumpur, Malaysia, on February 27. Nadia will be interviewed by Yeoh Siew Hoon (Founder, WiT) about everything from new tech to shifting trends in the region. ⚡ Limited seats available 🎟 Book your spot here!