MOBILE HITS THE MAINSTREAM: Technology and
Transcription
MOBILE HITS THE MAINSTREAM: Technology and
PhoCusWright’s MOBILE HITS THE MAINSTREAM: Technology and Industry Trends EXECUTIVE SUMMARY Written and Researched by Norm Rose and Cathy Schetzina ® PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends February 2012 All PhoCusWright Inc. publications are protected by copyright. It is illegal under U.S. federal law (17USC101 et seq.) to copy, fax or electronically distribute copyrighted material beyond the parameters of the license or outside of your organization without explicit permission. PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends February 2012 PhoCusWright Inc. 1 Route 37 East, Suite 200 Sherman, CT 06784-1430 USA +1 860 350-4084 +1 860 354-3112 fax www.phocuswright.com PhoCusWright's Mobile Hits the Mainstream: Technology and Industry Trends Executive Summary Written and Researched by Norm Rose and Cathy Schetzina Edited by Colie Hoffman PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends is published by PhoCusWright Inc. The information contained herein is derived from a variety of sources. While every effort has been made to verify the information, the publisher assumes neither responsibility for inconsistencies or inaccuracies in the data nor liability for any damages of any type arising from errors or omissions. ©2012 PhoCusWright Inc. All Rights Reserved. Philip C. Wolf Chairman Carol Hutzelman Senior Vice President Bruce Rosard Vice President, Sales and Marketing Lorraine Sileo Vice President, Research PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends February 2012 PhoCusWright thanks its sponsors for PhoCusWright’s Mobile Hits the Mainstream: Technology & Industry Trends. Without their active support, this research would not have been possible. Sponsors Accor Akamai Allianz (Mondial Assistance) Hilton Worldwide Kony Solutions Netbiscuits Orbitz QuickMobile Starwood Hotels & Resorts Worldwide, Inc. Tourism Queensland Tourisme Montreal Travel Guard Visit California Page iv ©2012 PhoCusWright Inc. All Rights Reserved. PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends February 2012 About PhoCusWright PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning, tactical decision-making and organizational effectiveness. PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior. Every day around the world, senior executives, marketers, strategists and research professionals from all segments of the industry value chain use PhoCusWright research for competitive advantage. PhoCusWright enables clients to bolster productivity through superior staff training and education. Scalable products, customized programs and cost-effective delivery improve the performance of thousands of travel, tourism and hospitality employees worldwide. To complement its primary research in North and Latin America, Europe and Asia, PhoCusWright produces several high-profile conferences in the United States and Germany, and partners with conferences in Canada, China and Singapore. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce. The company is headquartered in the United States with Asia Pacific operations based in India and local analysts on five continents. PhoCusWright is a wholly owned subsidiary of Northstar Travel Media, LLC. PhoCusWright Inc. 1 Route 37 East, Suite 200 • Sherman, CT 06784-1430 USA +1 860 350-4084 • +1 860 354-3112 fax www.phocuswright.com ©2012 PhoCusWright Inc. All Rights Reserved. Page v PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends February 2012 Section 1 Introduction A fter years of speculation about when and how mobile would impact travel, the mobile platform is now influencing every stage of the travel life cycle. Mobile is truly a global phenomenon: Smartphone usage now exceeds 50% in the U.S. and Europe, with adoption increasing rapidly in emerging markets. Mobile devices have hit the mainstream, with broadreaching implications for travel strategy. In 2008, PhoCusWright completed a landmark study on the future of mobile travel. At that time, mobile travel was in its infancy – rudimentary mobile websites and an early wave of iPhone apps featured only basic functionality, failing to exploit the mobile platform. The word “tablet” had not entered the vernacular, as the iPad was still to come. While mobile commerce had taken its first steps, mobile travel bookings represented a tiny fraction of a percent of the U.S. online travel market. Much has changed in just a few years. Today, the usability of mobile travel offerings has dramatically improved and a growing number of always-on, always-connected travelers are using their mobile devices to research, plan and book travel in unprecedented ways. Travelers are not simply shifting activities from the computer to the mobile device – many are doing things they simply would not be have been able to do before. Mobile bookings, while still small as a share of overall and online bookings, have grown tremendously. Mobile is presenting ©2012 PhoCusWright Inc. All Rights Reserved. unique opportunities for marketing and customer service, as well as distribution. As mobile technology continues to evolve, travel companies struggle to remain current with quickly changing traveler expectations and development best practices. With major media and technology companies continually raising the bar for mobile innovation, yesterday’s mobile enhancements are soon outmoded. To provide fresh insight into the trends and opportunities shaping mobile travel, PhoCusWright undertook a second comprehensive mobile study in 2011, assessing the size and dynamics of the mobile travel marketplace within select markets in North America, Latin America, Asia Pacific and Western Europe. This report presents select technology and industry findings from the larger research project with a focus on the U.S. market. Consumer travel findings from the project were published in Mobile Hits the Mainstream: Leisure and Business Traveler Trends (January 2012). Key Findings nU.S. leisure/unmanaged business travelers booked nearly US$2.6 billion via mobile devices in 2011. By 2013, mobile will account for 2.6% of all U.S. travel bookings. Page 1 PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends nIn mature markets, booking will not become significant until the mobile user interface is further simplified. Voice recognition will play a major role. In emerging markets, however, mobile bookings will grow rapidly as developing countries adopt mobile as their primary booking channel. February 2012 nPlayers from outside the travel space have the potential to significantly disrupt the distribution landscape. Leading mobile platforms (BlackBerry, Google, Apple) have or will create native functionality specific to travel needs. nMobile enables unprecedented marketing nSmartphone adoption tops 50% in the U.S. and Europe while remaining below 20% in much of the rest of the world. In the developing China and India markets, feature phones continue to dominate, but smartphone adoption is projected to increase quickly over the next few years. and merchandising opportunities, potentially made even more powerful by the ability to exploit personalization. As push notification becomes more personalized, the line between an offer and a service will blur, leading to higher conversion rates on mobile offers. nA new era of interactive objects will be criti- nWhile Japan smartphone penetration remains well below 20%, the country’s private network continues to be a model for mobile communications. Adoption of smartphones (e.g., iPhone, Android) is growing, but most Japanese consumers rely on advancedfunction feature phones with m-payment and near-field communications (NFC)-like functionality. nBusiness travelers are the early adopters of mobile technology. In the U.S., 73% of business travelers own a smartphone, compared to 52% of leisure travelers. nTablet penetration is growing rapidly across the globe, requiring travel companies to provide tablet users with a more immersive, interactive experience. Low-cost tablets (e.g., Kindle, Nook, India-produced tablets) will spark the next wave of change, untethering the planning process from the desktop and becoming a primary means to connect to the web for established and emerging markets. Page 2 cal for tourism worldwide as travelers learn to click on tags for information, special offers and traveler reviews. Whether via Quick Response codes, Microsoft Tags or NFCenabled stickers, the world around us will come alive with information. nMobile payment systems based on NFC will not be fully deployed for 3-5 years. At that time, the way travelers pay for goods and services will change, allowing more instant purchases and tailored offers. Research Background and Methodology The objectives of Mobile Hits the Mainstream include the following: 1.Understand what represents true mobile innovation and who is driving it. 2.Anticipate how changes in devices and networks will affect development. 3.Identify nascent mobile technologies and ©2012 PhoCusWright Inc. All Rights Reserved. PhoCusWright’s Mobile Hits the Mainstream: Technology and Industry Trends assess their potential application to travel. 4.Size the current and projected mobile travel booking volume in the U.S. 5.Understand U.S. corporate and leisure traveler trends and desired services for the mobile device. 6.Identify strategic opportunities for suppliers, intermediaries, corporate travel organizations and destination marketers. The study was conducted in the second half of 2011 and consisted of two concurrent phases: 1.Executive interviews/market sizing 2.Consumer research The results presented in this report are primarily based on executive interviews, supplemented with mobile data from third-party sources. To provide a more holistic view of mobile travel dynamics, selected consumer research findings are also included. February 2012 results. Projections for 2011-2013 are based on company interviews, consumer research and market developments. PhoCusWright also considers historical growth and economic trends when developing its forecasts. Estimates and projections are for gross bookings – the retail value of travel sold – after cancellations and excluding ancillaries. Figures are presented in US$ billions. These are just a few of the findings from PhoCusWright's Mobile Hits The Mainstream: Technology and Industry Trends. Purchase the full report here: http://www.phocuswright.com/products/4107 Executive Interviews/ Market Sizing PhoCusWright completed over 50 executive interviews with mobile and travel technology providers, travel suppliers, online and traditional travel companies, and corporate travel organizations. Interviews analyzed current mobile technology trends, current mobile travel applications and future plans in selected countries within North America, Latin America, Western Europe and Asia. U.S. mobile m-commerce sizing includes 1) overall mobile bookings via U.S. online travel agencies and 2) direct bookings for the U.S. air, car and hotel segments. Figures for 2010 are based on actual company ©2012 PhoCusWright Inc. All Rights Reserved. Page 3 PhoCusWright Inc. 1 Route 37 East, Suite 200 Sherman, CT 06784-1430 USA +1 860 350-4084 +1 860 354-3112 fax www.phocuswright.com
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