Why the future of travel&tourism industry is in mobile bookings?

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The mobile revolution has begun! In the article that I recently read “Report: Mobile 21 Percent Of E-Commerce, Will Be $84B in 2014” is mentioned that on a global level, mobile commerce will bring $84B in 2014 only. These amounts are not to be underestimated! If you still don’t have your mobile and app strategy, now it’s time to develop it and utilize mobile channel up to his full potential.

Further in the article it is mentioned that responsive design is continuing to gain adoption and estimates that around 42% of mobile sales will come from app and 58% from mobile websites. No surprise that more sales will be coming from websites than from app as app penetration in retail is still very low.

According to Budde Comm site (New Zealand – Telecoms, Mobile, Broadband and Forecasts) mobile market penetration in New Zealand is around 120-125% and is growing steadily. Your consumers are there so you need to be as well! Fast internet connections and mobile technology is changing the ways in which travelers are interacting with businesses in the industry. Travelers are now constantly connected and they use technology to plan their trips, make their bookings and share their experiences on social networks. The modern traveler is “constantly connected traveler”.

Within the travel and tourism industry mobile bookings are on the rise and there is a huge potential in mobile apps.  The average person has around 26 apps on their mobile device and in the travel and tourism industry they had an app for a travel agency, a hotel, an airline and a car rental that they were loyal to. The travelers are already using mobile devices to get all the information they need about specific destination they are visiting. The next logical step would be to do all the bookings through their mobile phone!

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Hotels are currently the main sector within industry that is focused on mobile bookings and transactions. This is because customers want to book their hotel in a short booking window and mobile bookings can actually shorten that time even further. There is also cost reduction with all kind of online and mobile bookings and possibility to let customers make an instant booking at any time. There are also interesting ideas that smartphones can be used as a key cards, eliminating the need to invest in physical keys.

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Airline reservations are made through mobile devices as well and a lot of major airliners are providing flight bookings, check-in and a lot more straight from app. I always love to use the example of domestic airliner Air New Zealand who has a great mobile app.

Beside providing the technology for mobile bookings we also need to think about the right content to facilitate consumer to book through mobile device. We need to think about meaningful and remarkable content which will help the consumer do their bookings in the easiest and simplest way.

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Resources:                                                                                                                       Report: Mobile 21 Percent Of E-Commerce, Will Be $84B in 2014                         Facebook say apps key to travel                                                                                               Growth in mobile booking

 

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