Author: Josh Martin

Publication Date: Mar 20 2015

Report Type: Webinar Replay

 Travel Apps

Webinar Replay: The Future of Mobile Travel

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Report Summary:

As phones get larger, payments get easier and experiences optimized for mobile, booking travel on a smartphone will eventually become the norm. However, the dynamics of the mobile market are shaping up to make success difficult for incumbents – especially with Millennials.

Some key facts:
1. OTAs dominate installed base of travel app owners with more than 60%
2. Google properties account for nearly 10% of all sessions on Android
3. Apps require regular updates as United, American and JetBlue have updated their collective apps on iOS more than 50 times in the last 24 months

While those over 35 are more likely to download and use applications from established hotel and airline brands the younger generation does not. This price conscious group is more often than not leveraging OTA apps to secure the limited travel they engage in. This lowest common denominator price commoditization should worry hotels, airlines and even OTAs. Without loyalty travel becomes a price game – a dynamic that prevents loyalty and has never boded well for any industry.

The biggest question is – can Millennials be won over? Hotel chains are investing substantial resources to build Millennial focused hotels. New companies – such as Virgin – are building app powered hotels. Airlines too need loyalty to win regular and repeat business and fill their next generation lounges.

Millennials are likely residing in a lifestage that demands price considerations above all else. But a time will come when price will not be the most important factor in the decision. When this takes place, airlines, hotels and OTAs will need to have been long positioned to earn loyalty.

This webinar focuses on overall mobile travel market dynamics, what apps and categories Millennials are and are not using and the lack of loyalty exhibited on mobile.

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