As the trends of digitisation and technological innovation continue to accelerate, businesses that were once disruptors face becoming the disrupted.
In this latest wave of digital disruption, new business models, apps and online platforms threaten to upend once innovative companies and even tech-savvy legacy companies that have kept up with the pace of change.
Sectors like fintech, hospitality, travel and digital entertainment that have already undergone tremendous technological changes may see new players once again shake up the market.
For instance, Facebook's announcement of the Libra digital currency is already striking fear into cryptocurrency firms, fintech companies and established financial institutions with its promise to reduce the pain points of cross-border, cross-currency payments.
And Snapchat, once thought to be the hippest, most youthful social media platform, is losing ground to TikTok, the new first-choice internet hangout for Generation Z.
The trend shows that businesses, even flashy tech unicorns, must stay on their toes to avoid getting swept up by the same tides of change they once rode to prominence.
HOTELS REIMAGINED
For the past decade, the traditional hotel industry has been facing disruption from Airbnb and similar platforms that allowed people to rent out their homes through online listings. Airbnb took a 20% market share in consumer lodging spending in the US last year, according to Second Measure data, beating out Hilton, the second-largest hotel player behind Marriott.
But now hotels are facing a new disruptive business model, one that may even cut into Airbnb's massive global empire.
The Indian hotel startup Oyo has shaken up the industry once again with its model of franchising rooms in existing budget hotels under the Oyo brand. Oyo rooms offer a consistent guest experience with standardised basic amenities at low prices. For a cut of the revenue, Oyo offers its hotel partners a firehose of new bookings through its online platform.
"Oyo works with small-scale budget hoteliers to improve guest experience and occupancy, and thereby yield," said Ashutosh Singh, country head for Thailand. "No other hospitality company is using technology in this way, or empowering small hotels to deliver value."
The company is now worth an estimated US$10 billion and is active in 800 cities in 80 countries, offering guests 23,000 hotels to choose from. It recently started offering home vacation rentals, putting it in direct competition with Airbnb. (Ironically, this year Airbnb invested $100-200 million in Oyo.)
Oyo entered Thailand this year with 8,000 rooms at 250 hotels in 13 cities.
"We have revolutionised the fragmented and legacy-driven budget hospitality space by empowering small and independent asset owners with operational capabilities and technology that enables them to compete with big hotel chains and achieve high occupancies," Mr Singh said.
To keep up with the rapidly changing industry, Oyo is investing heavily in new technologies like software to audit hotel prices and upgrade costs, machine learning to implement a dynamic pricing model, and physical tech such as Internet of Things devices in rooms for smart lighting.
KEEP ADAPTING
The recently announced partnership between budget airline AirAsia and Kiwi.com expands the carrier's online offerings to include flights on other airlines. It's a unique move by an airline to compete directly with online booking agencies that have long been cutting into revenue.
The collaboration lets users book flights, hotels, activities and more on the airline's website in an effort to disrupt online travel agencies (OTAs), the original digital disruptors of travel and other hospitality services.
Over the past 20 years, the business of hospitality services, including airlines, has been disrupted by a number of OTAs, most notably Expedia, the world's leading OTA, which changed the travel industry considerably by enabling travellers to search online for accommodation, tour packages and airline tickets.
Consumers are fond of such disruption, which has lowered prices while offering greater variety and convenience.
Instead of waiting to be disrupted, several companies and even some OTAs are set to adapt and develop new marketing strategies to prevent being overtaken by the new innovators.
Amid stiff competition, one leading booking site, Traveloka, has decided to turn its website into a one-stop shop with a feature that offers traditional OTA services alongside tours, attractions, food and theatre tickets to attract new segments of travellers.
Tee Chayakul, country manager of Traveloka Thailand, said adapting and diversifying one's business is the key to growing in a highly competitive industry and meeting consumer demands that are constantly changing.
The Indonesian travel booking unicorn aims to harness the 360 million internet users across Southeast Asia, an internet economy estimated to be worth $100 billion -- of which $30 billion comes from online flights, hotels and vacation rentals.
Media-streaming service Netflix is now being challenged by numerous competitors.
"The company has to create services based on the basic question 'What are we going to do this weekend?', rather than 2-3 months ahead, whether you are travelling abroad or just staying in your hometown," Mr Tee said.
To come up with new product offerings, Traveloka first needs to understand its customers. Thais, for instance, tend to enjoy going out, taking photos and eating during weekends.
"We have to keep moving in order to be more competitive with ourselves and try not to be disrupted by other players in the market who also want to meet customers' demands as much as possible," Mr Tee said.
The use of Traveloka in Thailand from January to September this year stood at 65 million total visits or 5.4 million monthly visits from 6.1 million downloads.
Supawan Tanomkieatipume, president of the Thai Hotels Association (THA), said intense competition between OTAs is not considered disruption, but instead represents a surge in variety for consumers.
"Nowadays, tourism operators have to evolve into a one-stop service marketplace for airlines, hotels, travel companies and other tourism services in order to fit with consumers' lifestyles, which tend to rely more on online platforms," Ms Supawan said.
For hoteliers, the rise of OTAs has increased the number of sales channels, but operators have to balance bookings between online platforms, which take a small revenue cut, and more traditional offline methods.
Thailand recently launched its own OTA mobile app, TagThai, through a partnership of 49 public and private organisations, including the THA.
This domestic travel platform offers airline and hotel bookings, as well as recommendations for things to do in major cities.
Other features such as car rentals, tour packages and recreation are to be added in the first quarter of next year, according to Ms Supawan.
DISRUPT OR BE DISRUPTED
Weeradej Panichwisai, research manager of technology research firm IDC Thailand, said digital disruption began a few years ago as tech startups arose and upended traditional business models.
But today, several disruptors are being disrupted by newer players or innovative established ones amid intense competition in select sectors.
Mr Weeradej gave the example of Netflix, the media-streaming giant, which is now being challenged by the proliferation of many new streaming services like Apple TV Plus and Disney Plus.
"There is still a business opportunity in every sector," he said. "This opens the door for disruptors to challenge the existing players."
To guard against disruption, small and medium-sized enterprises and big corporations should collaborate with other digital platforms to boost competitiveness, Mr Weeradej said.
Patompong Sirachairat, chief executive of Mono Technology, which operates digital TV Mono 29, said the company has disrupted itself by launching its own over-the-top (OTT) platform, Monomax.
The roll-out of Monomax is a strategic move by Mono, in light of the ongoing, seemingly irreversible trend of OTT services taking viewers away from digital TV.
Mono 29 is among 15 existing digital TV channels after the exit of nine channels from the sector.
Mr Patompong said digital TV operators should not regard other players as disruptors, as they can seek collaboration with them to achieve a win-win for both parties.
For example, Mono Group recently partnered with entertainment conglomerate GMM Grammy for co-productions.
Pisut Ngamvijitvong, senior analyst at Kasikorn Securities, said disruption will be common in the digital transformation era as businesses seek to exploit any digital tools that will make them more competitive.
"Winners in each sector will reap all the benefits in the end," he said.
Suchit Leesa-nguansuk
Online travel agent Traveloka drew 65 million total visits in Thailand from January to September this year.