travel tech insights

It may seem like a magic trick: Turning a one-time customer into a repeat user of a travel company’s products and services. But in today’s global, interconnected travel industry, customer retention and the ability to entice travelers back to a certain travel company is becoming less of a mystery and more of a science thanks in large part to the development of mobile apps. Smartphones, tablets, laptops, and other mobile devices have not only changed the way customers research and book their travel arrangements, but they’ve also fundamentally shifted the way travel companies view devices as tools for continued interaction and communication with would-be travelers.

It’s no secret mobile bookings are a major force in today’s travel industry. Travelers - particularly  millennials and digital natives - are more tech savvy and connected than ever before, and they’re using mobile capabilities to research, book, and review travel experiences at unprecedented levels.

According to the travel industry research group Phocuswright, the online travel market in the United States has seen revenues surge to more than $166 billion since 2012 - in addition, roughly 45 percent of domestic travel spending will come from online travel commerce. Both of these staggering statistics are in large part driven by mobile capabilities and how travel companies leverage their mobile platforms to reach customers and engage with travelers.

In fact, these statistics are just two of many that support the mobile narrative unfolding across the travel and tourism industry. The figures behind the rise of mobile booking technology and the impact this development has and will continue to have on how travel companies and customers interact is one of the more interesting and revealing aspects in today’s travel landscape.

True or false: Nearly half of all travel bookings made during 2016 will take place offline via phone or in-person with the assistance of a travel agent or travel management company.  

True, which is surprising, especially given the highly connected nature of today’s travel industry and the capability for travelers to complete complex, packaged bookings on their smartphone or tablets. In fact, according to a recent survey published by Euromonitor International, roughly 44 percent of travel and tourism-related bookings will be completed via desktop or mobile devices during 2016. While this is significantly higher than other retail industries, it can be something of a shockingly low figure considering how hard the travel industry has worked to align itself with mobile technology capability.

However, what’s perhaps more stunning in the Euromonitor International report is where industry analysts suggest mobile travel bookings are headed in the near future and the impact they’ll have on the travel industry in the coming years.

It simply can’t be stated enough: mobile travel apps have changed and are changing the way today’s traveler experiences travel and the ways travel companies reach their customers. Whether you’re talking about millennial, adventure, or experimental travelers, the impact of mobile travel apps is undeniable, and there’s no greater proof than the resources travel companies, suppliers, and travel agencies have dedicated to becoming more responsive, faster, and more agile to cater to the mobile needs of the modern traveler.

While the industry ramp-up in mobile app technology has been steady during the last five years, hotels and hotel booking suppliers have made a strong push during the last 18 months to create robust mobile app platforms aimed at offering customers the easiest, most convenient platform to research and complete bookings, while at the same time working with travel management companies and online travel agencies to create better visibility and enhanced transparency when it comes to inventory, transactions, invoicing, and other operational processes.

Isaac Newton’s Third Law of Motion says for every action there’s an equal or opposite reaction - essentially, each action has two component parts that not only rely upon each other but can also counteract or combat each other’s characteristics. But what does Newton’s Third Law of Motion have to do with the travel industry?

Well, when it comes to travel apps and how these platforms provide value added for travel companies and their customers, the issue is not necessarily a matter of black and white. Instead, much like Newton’s Third Law, each action - or component of a travel app - has distinct benefits and liabilities - actions and reactions - that travel companies should consider before implementing a mobile app strategy or solution.

While it’s fair to say the travel industry at-large has more or less fully-embraced mobile concepts and functionality during the last few years, smaller travel companies or new start-ups are faced with a myriad of decisions and value propositions when it comes to creating and propagating a mobile platform.