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The Impact of Mobile on the Travel Industry

This article explores the evolution of mobile technology and its impact on the travel industry. It discusses the state of mobile in New Zealand and provides real-life examples of how travel operators are taking advantage of mobile to enhance their services. Additionally, it highlights the benefits for travelers and showcases self-service and value-added features offered by major airlines and tourism bodies.

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The Impact of Mobile on the Travel Industry

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  1. Content Digital and the Travel Industry Evolution of Mobile State of Mobile in NZ What does this mean for the Travel Industry? Real life examples: Self Service / Value add Branding & lead generation Creating brand ambassadors Promotional / Customer feedback Recap What’s Next

  2. Digital & The Travel Industry Digital is no longer viewed as an add on to marketing efforts - it is now an integral and critical part of travel distribution. Wotif achieves record profit of $43.5 million despite downturn (announced end Aug 09) 6.33 million room nights were sold in 09 up from 4.91 million in 08 Lastminute.com records approximately 3 millions visits per week Hitwise last year stated an increase in traffic to the travel category of their websites – as people tighten their belts with researching their travel decisions more intensively online Juniper’s US online Travel Consumer Survey from May ‘08 found that of all user generated content ratings were the most popular followed by reviews and recommendations This sets the scene perfectly for mobile!

  3. Evolution of Mobile Globally 3.5 billion users in 2008 reach 4.6 billion by 2011 More mobile devices than PCs globally For some their first experience of the internet will be via mobile. In the US it is just a matter of months before mobile web surpasses broadband subscribers UK mobile internet growth is 8x great than PC based internet growth Functions that previously exclusive to personal computers are now available in the palm of hand Mobile phones are sophisticated devices which act as the hub for our daily lives – main connector to family and friends especially when travelling Growth of social networking on mobile 65 million people accessed Facebook from a mobile device in August 2009 mobile tweeting on increase Your audience of typically young tech-savvy backpackers are indulging in all the mobile has to offer and the mobile is definitely one of their most prized positions which never leaves their side!

  4. The State Of Mobile In NZ Mobile penetration over 100% in NZ - 4.3 million handsets 18 million TXT messages sent per day in NZ XT Network launched – Speeds of up to 4 Mb / sec Launch of 2 Degrees Competition driving down pricing: $1 a day data pricing plans on both Vodafone and Telecom Handsets becoming much more affordable 30,000 iPhones in NZ market First Google Android Phone launched NZ 2009 Mobile cameras on over 70% of all handsets Access of Mobile Internet services – over 65% - need to give people a reason to indulge Publishers creating relevant mobile destinations – NZ Herald rapid and consistent growth since launch early this year now boasts over 1 million page impressions a month, average user session over 6 minutes! Mobile advertising launched early last year

  5. What Does This Mean For The Travel Industry? Benefits for Travel Operators: Growth of mobile eradicates the limitations that fixed PC internet and email access – creating a multitude of opportunities for travel operators Take advantage of the ever increasing use of mobile and mobile internet by travel consumers Ability to connect with consumers at all times while travelling In travel the focus with model has seen a lot of service based models, now seeing a shift to include a mobile strategy with a focus on sales and marketing Benefits for Travellers: Ability to research, book and change travel arrangements Receive relevant information Share travel experiences & much more. All of this on the go!

  6. Real Life Examples

  7. Self Service / Value Add Uptake of mobile tools, applications and services by major airlines and tourism bodies: Air NZ Cathay Pacific Positively Wellington Tourism Guinness Mobile Application Rationale: Mobile is a most prized possession Offers a point of difference Allows the traveler to get the most out of a visit Increased level of interactivity with the brand Measurable – react to what the audience determine is the most useful tools.

  8. Air NZ – mPass and Mobi Site mPass - all your flight information in your pocket: View flight details Electronic boarding pass Air New Zealand Mobile site: Customers can: Check current arrival and departure times & timetables Check Blackboard Deals on offer & daily grabaseat destinations Use the ‘how far can a go’ tool that looks up airfares based on the amount of money customers have available to spend on their travel. Air New Zealand’s NZ Marketing Manager Jules Lloyd says this initiative is part of Air New Zealand’s plans to provide content to customers through new technology channels. “Mobile web browsing is in its infancy in New Zealand but we have chosen to be in at the early stages of development like this. We said the same thing about selling via the internet just a few years ago and now we do more than $1billion in sales annually through the online channel”

  9. Cathay Pacific Launched “CX Mobile” application Extended to cover other handsets than iPhone Features: Check flight arrivals and departures Check in City Guides Meet the team function Marketing Manager Celine Ho: “We intend to stay ahead of the game in offering the most relevant technology and mobile solutions to make our loyal customers’ journey even more hassle free”

  10. Cathay Pacific CX Mobile Application

  11. Wellington Mobile Guide m.WellingtonNZ.com - gives Positively Wellington Tourism another way to reach and engage with visitors and residents so everyone can make the most of the city Extremely popular with people wanting to know everything that’s happening around major events such as NZI Sevens and recent Wellington on a Plate Festival. “With so much happening every day, the mobile guide is a quick and easy way for people to find out what events are on, where to find a great restaurant or bar, as well as practical information like transport, maps and parking”

  12. Positively Wellington Tourism

  13. Guinness Mobile Application • Challenge: • Guinness had become an official sponsor of the Hong Kong Sevens rugby tournament. • Wanted to make a strong and lasting connection between Guinness and the event in the mind of the consumer making the brand synonymous with the Hong Kong Sevens • Solution: • The insight – many of the 20,000 overseas visitors to the Sevens are unsure where to go after the final whistle and cannot communicate in Cantonese • Created the Guinness Passport to Greatness – world’s first ever talking mobile event guide that speaks Cantonese. • Contained event match schedules, a city guide, useful Cantonese phrases, plus all the top sport to grab a Guinness. • Downloads were driven by a competition to win Sevens tickets, which was spread virally online through Hong Kong Rugby Football Union, social networking sites and also local/international PR

  14. GUINNESS – Mobile guide

  15. Branding & Lead Generation

  16. Air NZ – Branding and Lead Generation Leaders in the mobile advertising space in NZ for branding and lead generation Mobile is instant and measurable both for the media and engagement Next logical steps for Air NZ is to close the loop with a mobile booking system If a leap to mobile advertising may seem a bit much when first engaging in mobile then begin with activating traditional media – text call to action in print, radio, TV. Audience can then request further information via SMS and instantly engage with the brand, requesting more information, a mobile voucher. Offers the ability for the consumer to connect with your brand immediately

  17. Air NZ – Campaign Specific

  18. Air NZ – Queenstown Winter Festival

  19. Creating Brand Ambassadors

  20. Create Brand Ambassadors • Facilitate the sharing of experiences by providing the tools for travellers to share the experience • Transporting the experience via brand ambassadors • White label mobile platforms are now available that whereby you can create a closed user group social network • Tourism Australia use such an application • Upload photos and videos to send to closed group • Integrates with major social networking sites • Powerful brand endorsement

  21. Promotional / Customer Feedback

  22. Promotional Activity • Nationwide Promotions & Services: • Allow the audience to interact with local businesses and organisations • Receive discount vouchers • Enter competitions – reluctance to complete paper entry forms • Efficient and immediate way to collect feedback

  23. Gunstock Mountain Resort – Promotional Text Campaign • Objective: • To promote on-mountain specials, increasing the resort’s incremental revenue • Solution: • Text in keyword to a short code to register for up to 4 mountain deals per day – discounted tickets, lunch specials, apparel and more • Signs displayed around shops, lodges, ski lifts to subscribe • Outcome: • 19% redemption rate

  24. National Express East Coast – Rant & Rave • The Challenge: • Had a target for responding to written passenger feedback within 10 days • Using up staff resource • Wanted to capture passenger feedback instantly so they could respond straight away and promptly fix any issues. • Solution: • Utilised an SMS solution allowing customers to provide feedback by SMS and immediately receive acknowledgement and a thanks for feedback • User friendly dashboard to analyse feedback • Stickers / poster within carriages to promote • Outcome: • Increased volumes of feedback submitted • Positive response to reaction times to feedback • Reduced staff resource requirements

  25. Recap Concept of being able to connect with consumers not only 24/7, in a “footloose” manner is a concept that is new and potentially profitable for the travel industry Footloose travel distribution is made possible by mobile technology that allows travel companies to make their services and content available to anyone regardless of location Allowing operators to have a presence at a number of possible consumer engagement points With the advancements in handsets & consumer behaviour on mobile, mobile will play a role in marketing, payment and CRM operations within the travel industry “74% of travel companies see mobile becoming an increasingly important element of their online/digital strategies. 73% say it will change the way they communicate with customers”

  26. What’s Next – taking advantage of GPS? Ability to deliver location relevant information to the handset via GPS – Global Positioning System Walk through centre of Queenstown receive marketing messages relevant to local retailers/travel operators Many tools available on mobile that allow the user to display their location on a map and help them find stuff around them All extremely exciting for those involved in travel distribution!

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