Mobile adoption: Why the travel industry should care?
The opportunities of ‘AAA’ marketing (Anywhere, Anytime, At-once) have taken the world of mobile marketing by storm. The unimaginable benefits of universal internet access, instant knowledge of consumer behavior and preferences, location based targeting and user preference management are still in the early stages of being fathomed. The simplicity and security of M-commerce is being recognized across the consumer communities and this is reflected in the growing volume of M-commerce purchases over the last couple of years.
A lot of surveys and studies have been directed at the consumption pattern of the travelers in the mobile space. A few points from a recent report of PhocusWright are relevant in this context…
- In the year 2010, mobile bookings reached $160 million
- Almost 67% of travelers and 77% of frequent business travelers have utilized their web-enabled mobile devices to search for local services and attractions
The above facts clearly demonstrate an increasing level of confidence towards mobile-based transactions. With usability and transactional security set to reach the standards of a web-based transaction, M-commerce is on the verge of an explosion. In another survey conducted by Harris Interactive in 2009, it was found that almost 71% of adults in US felt that it was safe to make a mobile-based transaction.
In hospitality industry, time and delivery is of extreme importance for the guests and the capability to manage the itinerary and tour itself through their mobiles has provided both speed and better options to the modern day traveler. The surveys have revealed that many of the top hoteliers have already a concrete plan in place to tap the growing demand for mobile transactions. It is no surprise that the travel related applications are the most popular on devices compatible to android, RIM and iPhone OS.
Mobile Marketing Mantra : Location-Based services
A true marketer knows the value of targeted messaging served at the right moment. With internet access being restricted to our offices, cafes and homes in the earlier years, the most compelling of messages had low conversion potential because of the timing of the AD serve. Mobile phones are one of the most used and inseparable of all gadgets in the 21st century – and with internet-enabled mobile phones, travel related transactions no longer have to wait for the travelers to reach their homes or offices.
So, you as a traveler are not bombarded with millions of meaningless messages, but instead are served with practical and money-saving offers based on your location (through the GPS) and time of travel. So, if you are approaching Manhattan at around 6 PM, you won’t be receiving offers related to a lunch buffet in an Indian restaurant. And if you want to find a particular point of interest or even the restaurant that your friend recommended, you can search it through your mobile – right there and then. According to an eMarketer survey, more than 486 million users will be using the LBS (Location Based services) by 2012. LBS has not only added muscle to online marketer’s strategies, but it has also contributed greatly to the experience of the travelers. Travelers are now configuring their LBS prior to their trip – so that they can receive life saving services such as mapping, navigation services, city guides, etc. upon arriving at the destination.
Innovative marketing strategies are already being adopted by mobile marketers in the hospitality segment – promotions and cancellations, on-the-spot offers, unscheduled performance notifications, friends-in-vicinity notifications. The marketing edge is delivered through the delivery of messages on ultra-portable handheld wireless devices like cell phones, Palm Pilots, personal digital assistants (PDA’s), handhelds and basically any wireless device. Hospitality industry is hinged on customer engagement – and Location-based marketing is more likely to engage your guests who are mobile as compared to residential customers.
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