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Mobile in Travel 2009

Having a website does not bring success.


Having a great website will.

Mobile will not help your business –


But, using it effectively will transform it.
Introduction
As a Senior Executive within the travel industry, you will no doubt have heard about the
‘Mobile Opportunity’ and how ‘Mobile’ will play an important role in the future of travel.
The ‘Internet’ received a similar billing and we all know what happened to companies that
embraced that medium early….. or perhaps we heard more about the companies that didn’t!
However, the important question is; “How, why and where is the mobile medium relevant to
your company?” and “How do you assess what the opportunities are for your business?”

WHITE PAPER OBJECTIVE AN IMPORTANT CONSIDERATION


To evaluate the opportunity properly, one needs to be A DEVELOPMENT ISSUE
in possession of the full facts.
Mobile has a development issue, similar to that initially
The objective of this white paper is to provide Senior experienced by the Internet.
Executives in the travel industry with the facts in respect of the
Speaking to Senior Executives across many industries,
‘Mobile Opportunity’, to assist them in making an informed
it is evident that new products or innovations that are specific
decision in the context of their businesses.
to any one particular department (marketing, sales,
operations, commercial, finance etc) are easier to manage,
as the relevant department will take responsibility to assess
In brief this paper will provide the following:
the opportunity and deliver against it. However, innovations
• A basic understanding of the mobile sector such as the Internet and now Mobile, which are companywide
• Specific information on mobile issues that will affect the and do not fall under any one department’s remit,
travel sector moving forward can potentially get lost in the development process.

• Practical examples of how mobile can be utilised across all Unfortunately, given the fact that these innovations will
sectors of the travel Industry influence a whole business means that they are also the
ones that can have the largest impact.

The information contained in this white paper will answer


some of the more common questions asked by travel
executives, such as:

• How should we view the ‘Mobile Opportunity’ strategically?

• Can it earn revenue for my business?

• How will it improve our bottom line?

• What do the terms WAP, SMS and Mobile Application


actually mean?

• What realistically can we use it for…now and in the future?

• Do our customers want it?

02
INTERNET GROWTH …….
DITTO ……. MOBILE GROWTH
HAS THE MOBILE
It is interesting to see how the growth of the mobile sector has MEDIUM ARRIVED?
been similar to that of the Internet in its early days. Whilst this
does not mean it will have the same impact, it does show how • 3.3 billion people actively use SMS....that’s over twice as
important it is for companies to assess the mobile opportunity many as the 1.4 billion people that use the Internet
and develop a strategy.
• 2.5 times as many people send a text than send an email!
Examples of these similarities include:
• 700 million people use Instant Messenger, which is free
• Internet data charges were fixed (Internet usage exploded
whilst 3.3 billion will happily pay to send a text message!
following the introduction of ‘All You Can Eat’ data
packages). Mobile network operators have now introduced • 200 million people use social networking sites when 3.3
similar packages. billion communicate and receive information by SMS.

• Growth accelerated following mass-market adoption of the • 1.7 billion people have a credit card….3.3 billion people can
Internet. More people now own and use a mobile than they pay by SMS!
do a PC or a TV. • 90% of European mobile users sent or received a text
• The Internet lost its ‘Only for Youth’ tag. The Mobile has also message in 2007.
now achieved this and is embraced by people of all ages. The Mobile used to be just a ‘voice communication’ tool but
On the Internet, consumers started to give their email address now it provides:
as their point of contact rather than their home address. • Communication not only through voice but through SMS,
It is now more common to give a mobile number as a point of email, Bluetooth, instant messaging and WAP.
contact than a fixed line number. • Connectivity to Data (Web access on mobile, bespoke
Mobile information pages)

FUNNY BUT TRUE…….….: It is worth remembering, that those who were slow
In one particular airline, the person who had the in adopting the Internet, hadn’t reviewed it fully
title of ‘Head of Mobile’ and was identified by a and had decided that it was not for them. They
senior executive within that company as the were the ones that, perhaps for the reason
relevant contact to discuss the ‘mobile opportunity’ detailed above, did not assess the opportunity
with, turned out to be the person who was fully or even assess it at all…. and were then left
responsible for buying mobile phones playing catch up.
for the Pilots!! In many cases this was a very costly
mistake…. for some, it was terminal!

www.travelbuddy.co.uk 03
THE MOBILE OPPORTUNITY The mobile medium provides this access showing how it will
play a role in a company’s overall product and service delivery
– AN OVERVIEW plans.
As the growth of mobile has been similar to that of the Internet
in many ways, we can learn from that growth pattern as we MOBILE IN TRAVEL, WHY?
move forward with the mobile opportunity. Initially, there was a – THE TRAVEL FACTS
tendency for businesses to treat the Internet as a completely
• 85% of travellers take their mobile phones abroad.
separate entity, detached from their core business function
(i.e. they were either in retail shops or on the Internet but not • The mobile phone is now the number one accessory taken
both!). The Internet is now viewed as integral to all businesses abroad by travellers, ahead of iPods/MP3 players and even
and is viewed as another channel to market and one that can cameras.
deliver across the value chain from sales to marketing to
• The introduction of automatic ‘roaming’ (allowing mobile
operations and communications. If the mobile opportunity is
users to use their phones abroad) is now available to
restricted to a single department, potential growth across the
travellers worldwide.
business as a whole will be severely restricted.
All departments need access to the benefits and capabilities • 75% of travel companies surveyed confirmed that they want
of mobile within their own working environment. to make mobile part of their future communication/digital
strategy.
The mobile opportunity should be viewed in the same way as
the Internet. Mobile is not going to replace any other • Mobile is the efficient and cost effective way to communicate
communication channel but will play an important part of the
product / service delivery mix in the future and will only serve MOBILE WILL …….
to enhance customer retention and satisfaction. To explain this • Extend communication time with the customer
further, it may pertinent to respond to some questions that
• Enhance customer service
have been asked by senior figures in the travel industry:
• Increase ancillary earning opportunities

DO YOU THINK THAT • Reduce operational costs

MOBILE WILL BE AS
BIG AS THE INTERNET
IN TRAVEL? As one travel
The traveller will not use one instead of the other. Mobile is a
tool that can give the traveller access to the Internet, the expert said:
traveller will not decide to use a mobile instead of the The companies that succeed in the travel industry
internet….that would be like asking whether they will use a PC will be those who figure out how to serve their
or the Internet!
customers better whilst learning how to decrease
E.G: If a customer has their Itinerary delivered on the Internet actual interpersonal interaction
(as a personal page from their travel company/airline or a
confirmation email) how does that person view the information
when they are travelling?

Interesting Fact – It does not cost to receive a text whilst abroad

04
Interesting Fact – A UK traveller whilst abroad can use a ‘shortcode’. (e.g. they
could text the word ‘TRAVEL’ to shortcode 82345 and receive their itinerary delivered
to their mobile phone, automatically without any need for human interaction.

MOBILE AND YOUR BUSINESS?

IDEA BOOK PRE-TRAVEL OUTBOUND FLIGHT DESTINATION RETURN

The best way to view the ‘mobile These objectives are not independent of each other and all
three can be achieved (see ‘Mobile Package’ later in this
opportunity’ in the context of your own
document as an example).
business is to look at the various stages of
The second consideration is that the mobile phone is a unique
the travel value chain, as detailed above. At tool and user expectations are very different from those of the
each of these stages, one needs to consider Internet. On their mobile, the user wants clear, relevant, timely
and above all concise information. If we look at the very
the requirements of your customer and
successful example of Football Goal Alerts (providing mobile
whether the mobile medium can be utilised text alerts on football scores for one’s chosen team), the
to deliver what those customers want, in a mobile user just wants the details of who scored? When? And
for which team?
way that achieves one or perhaps all of the However, if that user were online, they would have a different
following objectives? expectation and would want an image of the goal, a more
detailed description as well as perhaps even a video!

MOBILE OBJECTIVES: Without looking at the specifics of the example above and to
assist in the general understanding of what works and what
GENERATE REVENUES – either directly from the information
doesn’t, on the next page is a useful synopsis when
provided or through ancillary sales.
considering the type of content/ information a traveller wants
REDUCE COSTS – delivering information ‘proactively’ to delivered to their mobile. Wherever they are in their journey
customers can reduce operational costs significantly. cycle, TAP is a very simple acronym to remember.

ENHANCE SERVICE – differentiate your company and


increase customer service at a reduced cost.

NB: The mobile, like the Internet is a phenomenal platform to embrace….but like the Internet, if it is used in the wrong way it
can prove ineffectual. In one example, a hastily put together text message was sent to all travellers in a specific destination
using one example of wording and a 6% response was achieved. The wording was changed and 40% responded!!

www.travelbuddy.co.uk 05
T = TIMELY Deliver information and/or offers at the right time for the
traveller. As you know the time and dates that the customer is
travelling, content can be delivered in accordance with that
information. (i.e. specific airport and flight Information, special
offers pre-departure, flight alerts pre return departure or post
travel offer/message)

A = AREA SPECIFIC Once you know the traveller’s destination; you can deliver any
information or offers relevant to that location, country, region,
resort, and accommodation.

P = PERSONAL / PROFILED Deliver information or offers relevant to the profile of the


traveller (i.e. give EVENTS happening in Rome; specifically at
the time that the traveller will be there) and where possible
match their personal details (Family, Couple, Youth etc). The
‘TAP’ rule acts as a good guideline when delivering mobile
content or communication at any stage in your relationship
with the traveller, whether it is pre- departure, during or post
trip.

We can now look at a few examples of using mobile in the various stages of the value chain using the ‘TAP’ rule and meeting one or
all of the objectives namely, generating revenues, reducing costs or enhancing service.

IDEA
It will happen but it will develop in stages. The first sector to
Q. Can mobile play a part in a traveller researching a gain traction will be the booking of flight only where the
holiday and will people actually book their holiday or consumer just needs a price and dates or perhaps where the
flight on their mobile? customer just wants to book the same hotel as previously
booked. In both of these cases, there is less of a requirement
for research and detailed information.
The answer to this is yes but not in any numbers in the
Prior to booking complete holidays or flights on mobile,
foreseeable future. Although the advancement of the iphone,
travellers will look for operational services from their travel
the Blackberry and other similar devices are speeding up this
provider/airline that will enable them to change their flights,
process, the standard mobile user is a long way from making
check-in prior to arriving at the airport or book additional
bookings or researching travel on their mobile. The reason for
ancillary services on their mobile.
this is part cautionary, part practical. Again, similar to the
Internet, when one could buy online most were cautious in However, even if consumers will not book in numbers via their
doing so and few actually did for some time. In terms of mobile for some time, there is an opportunity now that is
practicality, the travel research process is part of the fun and attractive to travel providers/airlines at the ‘IDEA’ stage. This
excitement pre-booking and the traveller wants to see pictures is to use mobile as a vehicle to inform customers of last
and videos of the destination or hotel and this type of content is minute deals. This is an excellent way for travel providers to
not conducive to mobile. sell excess inventory and build a valuable mobile database.

06
PRE-TRAVEL

A customer has booked their flight, holiday or business trip OTHER REVENUE AND SERVICE OPPORTUNITIES As the
and we now look at a few examples, applying the ‘TAP’ rules, travel provider you will know the customers route and
of what can be delivered to the customer to achieve one or all departure airport. With this in mind, there are additional
of the objectives. opportunities to offer other relevant and timely services such
as: Airport parking, airport transfers, VIP lounge access,
ITINERARY The customer is delivered their Itinerary directly to
priority boarding or even mobile check-in.
their mobile giving them easy access to their details wherever
they are. This information can be delivered automatically prior TRAFFIC INFORMATION Mobile traffic alerts relevant to the
to departure or the customer can request it when they need it. roads surrounding the customers’ departure airport. This
Imagine how impressive and valuable that information would information can be chargeable to the customer as an
be. The customer is sitting on the beach, they text ITINERARY additional service or included in their booking as a brand
and immediately receive a personalised SMS text stating their enhancer. It may be decided that services such as this will
flight number is 5643 leaving from Palma Airport, Terminal 1 only be provided free to ‘premium’ customers as part of their
the next day at 14.30hrs and their transfer pick up will be at booking but perhaps incur a charge for standard bookings.
11.45hrs. There has been no human interaction, the
SKI INFORMATION Every skier and boarder wants to have
information has been delivered in seconds and the enhanced
the latest snow report. Again, as the travel provider you know
customer experience is one that will be remembered when
where they are travelling to so you can provide them with
next booking a holiday or flight.
automatic updates and snow alerts prior to departure. Again
PROVIDE FLIGHT DELAY INFOMATION Provide information this has proven to be an excellent brand enhancer but also a
on delays to the customer’s flight. As the travel provider, you service that skiers and boarders will pay for.
know which flight the customer is on, therefore this is an easy
MOBILE VOUCHERS A straight revenue earning opportunity
service to deliver and one that the traveller values highly,
would be to deliver discount vouchers directly to the traveller’s
potentially enhancing brand awareness, reducing costs and
mobile (Mobile Coupons) tailored to their specific area or
generating revenues as it is proven that travellers are willing to
departure airport. Again, this is timely information, location
pay for such a service. The customer texts the word FLIGHT
relevant as well as personalised. Coupons can be delivered
and they receive a confirmation text stating that their Flight
dependent on where the customer is travelling (i.e. coupons
Number 5643 is currently on schedule to depart from Terminal
for suntan cream delivered specifically to customers travelling
1, Palma Airport at 14.30hrs. This information can be delivered
to hot destinations or vouchers for lip balm, or outdoor clothing
as part of their holiday as an enhanced service or provided as
for ski customers etc.)
a paid for service. It may be that your company already incurs
high costs of customers calling your UK contact centre for flight MOBILE CHECK-IN The traveller can both check-in via their
updates and information. If so, to provide this service mobile phone or online and receive their check-in code
proactively as part of the booking process would actually delivered to their mobile phone. This can then be read at the
reduce costs as well as enhance service delivery. departure airport to ease congestion, enhance the customer
journey and reduce the costs at the airport for the airline.

www.travelbuddy.co.uk 07
DID YOU KNOW!!
Over 80% of handsets now come with a built in, 2D barcode reader.

Embedded in this code to the right can be a URL for specific offers or information personal to a specific
customer. For example, a personal code can be delivered by the travel provider/airline to their customer.
The customer passes their mobile phone over the barcode and their itinerary opens up on their screen and is
saved to their phone. There are numerous opportunities and applications for the travel provider/airline to
utilise this type of barcode.

MOBILE COMMUNICATION Mobile communication can be used at any stage of the travel
value chain and it is proven to be a huge advantage to the
Mobile is an invaluable communication vehicle that is both
travel provider/airline that can communicate with its customers
cost effective and efficient.
in this way. A number of travel providers are already delivering
An airport announces that it is closing due to a security alert this service. It is available now with little or no initial outlay or
or extreme weather conditions. A travel provider may have investment.
hundreds of customers already on their way to, or already at
the airport.

For a few pounds, the company can communicate with all


affected customers via their mobile phone and keep them
updated throughout the situation.
The process can be fully managed automatically, quickly, IN
efficiently and cost effectively. DESTINATION

In this instance, the customer frustration level starts at a very


high level but the swift mobile communication process diffuses Once again, utilising the same TAP rule and considering the
the situation very quickly, travellers want to be informed. The potential objectives (Revenues, Costs, Service) we can now
travel provider/airline reduces its overall cost of communication look at a couple of examples of information made available to
dramatically and the service scores very highly with the the customer ‘in destination’. One of the huge advantages of
traveller, a great service differentiator and situation diffuser. mobile communication is that it opens up a potential revenue
stream that until now has been largely inaccessible to many
travel providers. A travel provider will have access to their
customer at the time of booking and perhaps during a flight
LOOK AT IT FROM but rarely does the relationship extend much further. Whilst a
customer is in their destination and in ‘holiday mode’, this is
A CUSTOMER when their requirement for information is at its highest and
also more importantly when they are spending money. Mobile
PERSPECTIVE…… opens up a communication path for the travel provider to now
You are in destination, something serious happens but you are take a slice of those valuable revenue earning opportunities,
unaware of the impending danger or crisis looming, until it which will potentially change many travel business revenue
happens. However, other travellers in the same destination models going forward.
have booked with a company that uses a mobile system that
can deliver them immediate information about what’s
happening and what they should do. As a customer, who
would your booking go to next time around?

08
How big will this ‘mobile’ opportunity UK travellers list a necessity to know what the weather forecast
is in their destination as one of the most popular items of
be?………….well it’s big enough for information requested. As you know the customer’s destination,
GOOGLE to take a very keen interest and you can easily make this information available to them (already
place ‘mobile’ and ‘location’ at the top of very popular for ski customers). Once again depending on your
objectives, you can deliver this as a brand enhancer free to the
their future strategy and plans. customer or make a small charge, generating a new revenue
stream. How many of you go on holiday and in the evening,
when you’re deciding what to do the next day, your children
However, being a travel business has huge advantages. As a
ask…” What are we going to do tomorrow?” and you reply
travel provider, you not only know your customer’s location but
“It depends on the weather?” Mobile enables your customer to
also how they are getting there, their length of stay and
text the word WEATHER and receive an up-to-date weather
potentially other profiled information about them. You have a
forecast for their destination, automated, in your brand with no
head start over non-travel businesses like GOOGLE.
human interaction and completed within seconds.
Your business has the opportunity to deliver to your customer
everything that they need whilst in resort, via mobile and you Your customer did not book car rental at the time of booking
can commercially benefit from that unique relationship. Prior to their trip, but now in destination, they decide they want to rent.
the advent of mobile, unless a company had representation in Potentially, this is lost revenue for you as the travel provider.
each destination, they had little or no communication However, mobile can enable you to take that booking, add
opportunity with the customer. Mobile media has changed this revenue and provide a great service to the customer.
and opened the market up completely. As a travel provider The customer doesn’t want to search locally for a provider.
you are perfectly placed to take advantage both financially Again, you already know where they are and for how long
and from an improved service delivery perspective. This they are going to be there, via mobile you can take that rental,
document does not and cannot deal with every prospect for earn the revenue and deliver greater customer satisfaction.
mobile in travel but here are a few practical examples of ‘in-
All the traveller needs to do is text the word ‘CAR’ to you, their
destination’ opportunities.
travel provider via a short code (short codes work abroad i.e.
Personalised Travel Information. The author of this white 82345) and the relevant information can be ‘automatically’
paper believes that it will be sometime before the mass generated and passed to your contact centre or your car
market is ‘surfing’ the web on mobile for destination rental partner for the specific country/destination to fulfil the
information (it’s difficult enough searching on a PC or a Mac!) request.
However, as a travel provider, you know where and when your
This service is already live with some companies. In this case
customer is travelling and so you can deliver mobile Internet
it deals with the hiring of a car but this type of ‘keyword’ (CAR)
pages that are completely personalised to the customer, their
request can be used for many other travel services
dates of travel and their destination. The opportunities with
( i.e. PARKING, HOTEL, EXCURSIONS).
this particular mobile vehicle are huge from both a revenue
perspective and a customer service perspective. Examples of The pay per click ‘GOOGLE’ model will come to mobile too.
this are that as you know what airport the customer is If one looks at the example of personalisation above, it is
travelling from and how long they will be away for, you can clear why businesses like GOOGLE are interested in the
deliver the ‘actual’ cost of airport parking to their personalised ‘mobile location’ business. There are many businesses in
pages as well as maybe the real time rates for car rental in destinations around the world, wanting to advertise events
their destination and their dates of travel. This service is not a or promote products and services to travellers in specific
vision for the future but one that is already available with a destinations. Pre-mobile, the only way for a company to
very low cost to entry. promote to visitors was through normal advertising
channels, which proved very hit and miss, not targeted or
particularly measurable. Now, with mobile, visitors can be
targeted directly in location via mobile.

www.travelbuddy.co.uk 09
HOW CAN MOBILE ASSIST IN
SERVICING YOUR CUSTOMERS?
Businesses in the travel sector tend to fall into the following
Discreet advertising alongside pertinent content delivery will categories with regard to customer service delivery:
prove to be a very successful model for travel businesses in
• Businesses that have a customer service department and
the very near future. Soon we will see the local weather want/need to continue to provide a service but want to
information brought to you by ‘Nivea’ sun cream in association reduce costs.
with airline ‘X’, or UK airport traffic updates brought to you by
• Businesses that have a customer service department and
“BMW’ and tour operator ‘Y’, all delivered by mobile, with a
want to increase/improve their customer service offering to
pay per delivery model, another valuable revenue stream and
enhance their brand but are aware that this will mean an
very targeted.
increase in costs.
A traveller in destination requests local information via SMS • Businesses that do not have a designated customer service
text on their mobile, for example for seafood restaurants. team but would like to offer a service without incurring the
A similar ‘PPC’ model can work, where restaurants will pay to significant cost associated with doing so.
be further up on the list of restaurants delivered back to the
As our ‘travel expert’ quoted earlier, it will be the businesses
customer. The value that the travel provider has now is that
that determine how to serve their customers better whilst
they know where the customer is, how long they are in that understanding how to reduce interpersonal interaction that will
destination and perhaps even a customer profile. This means achieve success. Mobile provides this opportunity.
that highly specific content can be delivered to the customer
When asked, most travel providers stated that 40-50% of their
mobile which will have huge value for the future and it is very
inbound customer service calls revolved around very similar
important for travel businesses to be building their mobile
issues and questions regarding in particular, itinerary, tickets,
databases now as this will prove to be a huge asset moving flight timings and weather. Using mobile as previously detailed,
forward. How many travel businesses in the UK in 2009 still these responses can be automated and thus dramatically
do not capture their customer mobile number? Are you one of reducing costs, in addition to providing a better service to the
them? customer.

The mobile market is young but as with the Internet, it will be Take the example of the customer on a beach holiday, flying
the travel business that embraces mobile NOW that will grab back from Palma (in ‘ITINERARY’). To deliver on mobile not
market share, increase revenue per customer and grow only saves the travel provider money, the customer receives a
margins considerably. superior service (they are not making an expensive call from
overseas and being kept on hold). Everybody wins!
A number of travel providers have launched this simple
service and it is already seen as integral to their
product/service offering, traveller feedback has been
excellent.

Looking back at 2d barcodes and future destination


opportunities, mobile vouchers can be sent to the
traveller’s mobile to be redeemed anywhere. So, if you
have customers going to Barcelona or New York, they can
receive, for example, retail or restaurant vouchers to be
RETURN redeemed specifically for the dates they are there.
FLIGHT
This is not a ‘future’ technology, it can be delivered now
and this market will build in value significantly over the next
Very similar to the customer outbound journey, there are a
5 years. Travel providers that build their mobile databases
number of TAP (Timely, Area Specific, Personalised)
now will see huge benefits from technology that is now
opportunities to deliver to the customer that are linked to their
readily available to travel businesses in the UK.
return flight.

10
It is also evident that travel providers are looking to CAN’T WE JUST MAKE OUR
‘differentiate’ their offering to that of their competitors.
Mobile now means that they can provide a service without the
WEB PAGES ACCESSIBLE TO
need to invest in expensive systems. MOBILE USERS?
There are many other ways of creating revenues and adding For the reasons detailed later in this document relating to
value by differentiating your business using mobile and whilst handset optimisation, regurgitating web content on mobile is
the above examples only scratch the surface of the full not the way forward, not only from a technical perspective but
breadth of opportunities available to you now, it should at least more importantly, the mobile user wants a different experience
give a glimpse of the huge potential that mobile can now bring than they would receive online and they want it optimised and
to your business. delivered specifically for mobile. Delivering the same web
content on a mobile is a little like making a TV show and then
ARE PEOPLE SURFING THE WEB ON without changing it’s format and content, putting it on the
THEIR MOBILE? radio.

Figures in the UK show that around 25% of mobile users ‘surf SHOULD WE OUTSOURCE OUR MOBILE
the web’ on their mobile. However, this can be misleading.
The 25% figure is actually the number of people opening up a
STRATEGY OR DO IT OURSELVES?
WAP/INTERNET session on their mobile. Given that This is a question that many people ask and whilst each
whenever someone buys a ringtone or screensaver for their company will make their own decision based on their own
mobile phone they generally have to open a WAP/INTERNET infrastructure and resources, there are a number of important
session to receive it means that perhaps the 25% of users things to consider. When assessing whether to make the
identified as surfing the web on mobile aren’t necessarily investment into developing mobile expertise internally, the two
doing so in the same way as they would on a PC or a Mac. relevant questions are:

Whilst it can sometimes be frustrating for a traveller to view an 1. Will building the technology add value to your business as
internet page on their phone, again, as the travel provider you an asset?
know where the traveller is going and when, so that their
2. Will it increase your margin on each sale and deliver
‘searching’ and accumulation of pertinent content can already
additional profits by developing it internally or are the costs
be done for them automatically, optimised for their specific
prohibitive?
mobile handset and delivered to them, tailored by you and
with you brand identification. Again, having access to this Whatever you decide, there will always be areas that you will
personal travel information (when, where and for how long), definitely not want to develop internally, for example having to
travel providers are sitting on a huge and unique library of optimise ‘content’ for use on all mobile handsets (as detailed
untapped data and it is why mobile businesses, particularly later in this document under the ‘Jargon’ section) an important
Travel Buddy have been the pioneers in developing and factor to bear in mind in your decision making process.
rolling-out a full ‘white labelled mobile solution’ to travel As the mobile market expands and develops, there will be
businesses, to enable them to take full advantage of their new delivery options as well as new technologies (e.g.
unique position. barcodes, coupons, mobile video etc) and should a travel
And, from a traveller perspective, you want bespoke business decide to develop mobile solutions internally then
information delivered to you in the most accessible way they would have to make a fairly significant investment in staff
(mobile) with content such as your Itinerary, local events, and research to have the expertise to develop the capability
weather and tickets for example that are available in your as well as being able to look at developments such as
destination on the dates that you are there, not a market, club, ‘Bluetooth’, ‘Mobile Internet Page Services’ and assessing the
concert or show that is scheduled to finish two weeks before right mobile operator partners etc. Generally speaking, with
you arrive, which is what you may get in published generic current mobile business models, this work is carried out by
guides and internet searches. external suppliers and in the case of Travel Buddy, all systems
and content have been specifically designed and developed

www.travelbuddy.co.uk 11
after consultation with, and specifically for, businesses within
the travel industry. This mobile business model also means
MOBILE DELIVERY IN
that travel providers can already access mobile technology,
systems, ready-made strategy and services for a very low cost
THE TRAVEL SECTOR:
or on a revenue share of the income derived from mobile Below is a summary of the methods of how content or
activity, which can be self funding. communication can be delivered through mobile to the
customer. Briefly, whenever you communicate with your
This gives a potential zero cost of entry to the market and
customer via their mobile, whether for sales, marketing or
enables travel providers to use mobile as part of their product
operational purposes, it will be generally done by one of the
and service mix leaving them to concentrate on their core
following methods:
business of selling flights and holidays.
SMS - Text messaging.160 characters (including spaces) of
It is also relevant to note, that in the current economic climate,
basic text.
the cost of investing internally in new areas such as mobile
will prove prohibitive and external solutions like the one WAP/MOBILE INTERNET – Providing users with access to
supplied by Travel Buddy, can deliver entry to the mobile mobile internet pages on their handset.
arena with minimum or no outlay. MOBILE APPLICATIONS (JAVA) – The user downloads an
SUMMARY: application to their phone (generally a JAVA application),
which holds relevant information for them. It also delivers an
In summary, the mobile medium is already playing a role in
‘Icon’ for their screen. When they click on this icon it
the travel sector and future plans, with more and more
automatically opens up the phone line and updated
companies adopting it as part of their communication and
information is downloaded to that application.
product mix and extending the communication time with the
customer, saving costs, increasing ancillary sales and BLUETOOTH – Bluetooth is short-range wireless technology
enhancing customer service. that enables one to send and receive messages, pictures and
video clips to other Bluetooth enabled handsets. This
Travel Agents, Tour Operators and Airlines can be very
technology has also been used to deliver marketing messages
different in their business approach as well as their approach
or offers to people, for example in shopping centres as they
to customers and should look at the opportunity in context of
walk past a restaurant or shop, delivering a special offer to the
their own business model. For example, if a company is a
handset.
Tour Operator that sells escorted tours, then they will use the
mobile in a very different way than the business that sells Above are the main types of mobile content delivery. There is
flight only, room only or package holidays. also a vital piece of information that you need to be aware of
at the same time and it comes under the heading of ‘Mobile
The most important aspect of this document is that we hope it
Handset Optimisation’.
shows that mobile already is and will continue to play an
increasingly important role within travel and it is important for WHAT DOES ‘MOBILE HANDSET
businesses, that don’t have one already, to have a ‘mobile
strategy’. OPTIMISATION’ MEAN?
This document has provided brief, but hopefully thought Very simply, when browsing the internet on a PC, the browser
provoking, information on mobile in travel. Given the limited (i.e. Internet Explorer, Firefox etc) optimises the web page you
distribution of this document, the author will be only too happy want to see so that you can view it on the screen clearly with
to discuss with the recipients any aspect of it and answer any the right dimensions and colours etc. When a business
questions that may arise as a result of it. develops their internet pages, they make sure that they work
(or are ‘OPTIMISED’) to work with all Internet browsers.

Mobile Handset Optimisation is basically doing exactly the


same as this but has to ‘Optimise’ its content for all mobile
handsets and their browsers.

12
Simple for a PC but with mobiles, there are not only more The downside is, whilst the customer is surfing they are
browsers but also different screen sizes and colour paying the data charges whilst they are online so the costs
combinations and as a consequence, an Internet page on one can add up. However, as with the internet these data charges
mobile handset can look superb whilst on another handset, it have not only reduced dramatically but users can now fix
will be illegible. This is why a company cannot just provide a tariffs for unlimited data in a monthly period for example.
customer with access to their website from their phone as it
simply will not work.
IN BRIEF - OTHER
‘OPTIMISATION’ CONSIDERATIONS AS
– HOW IT WORKS! PART OF YOUR OVERALL
In essence, when a customer accesses a service on their
mobile, their request identifies the make and model of their
MOBILE STRATEGY:
handset and so the mobile pages can be delivered with the Mobile Search: Without going into too much detail in this
right colours and screen dimensions for that specific handset. document, the market for mobile search will grow exponentially
Every request is ‘washed’ through a ‘mobile optimiser’ and over the next three years and it is important to have a strategy
delivered correctly to the specific handset. in place. In the initial stages, you will need to look at mobile
search from a marketing perspective but this will eventually
APPLICATION OR MOBILE move to transactional opportunities and as detailed previously,
perhaps start with promoting last minute deals with a telephone
INTERNET DELIVERY?
number or website for the consumer to book through.
They both have their advantages and disadvantages but
Mobile ticketing & boarding: Delivering travel tickets by mobile
perhaps the downloading of mobile Applications has been the
to be scanned at airports and destinations.
more problematic. Mobiles can have different operating
systems and as many of us have probably found out, different Mobile Social Media: We all saw the power of mobile social
ways of using the mobile buttons for navigation. So each media with the aircraft emergency landing in the Hudson River
application has to work with (or be ‘Optimised’ to) all of these and the event being broadcast globally on the Twitter network
operating systems as well as the different screen sizes and even before the TV Networks could cover the story. These
colours as detailed above. This can be very difficult and given networks have opened up huge opportunities in marketing for
that a new handset is launched every day, it can cause travel and airline companies.
operational issues. That is why you will find that a number of One travel company has set up on Twitter and now has over
applications cannot be used with certain handsets. 1500 followers, receiving their ‘tweets’ on a daily basis. This
(Blackberries for example). opportunity for mobile will only grow and needs to be
The upside of Applications is that when you download an considered as part of an overall marketing strategy.
application with all the information required, you are only Legalities: There are a number of areas that will need to be
paying for the DATA charge for downloading it but once the considered from a legal standpoint and items that will need to
download is complete, you can close the data line and read be integrated into your T’s & C’s. These will all have to be
the content on your handset at no further cost, until you open considered at the time of assessing your mobile strategy.
the data line again to update the content.

Mobile internet, on the other hand, can be easier for the


customer as there are fewer optimisation issues than with
downloading applications so the customer experience is
generally better as the travel providers’ pages will be
optimised already for the browser.

www.travelbuddy.co.uk 13
The travel provider selects which of the mobile services they
wish to deliver to their customers and the delivery, content
THE UNIQUE TRAVEL BUDDY and timing is managed by Travel Buddy.

MOBILE PACKAGE There are different ‘Mobile Packages’ for different travellers

Travel Buddy is the market leader in white-labelled such as SKI (Flight updates, snow dump alert, next day

mobile services to the travel industry and was the first forecast, insurance policy number and emergency phone

to develop and launch systems to deliver mobile number etc), CITY BREAKS, FAMILY, BUSINESS etc, that

services and white-labelled destination content to the can all be completely tailored to the travel providers customer

traveller. profile and requirements.

The unique ‘MOBILE PACKAGE’ pulls together a This ‘white labelled’ package can be integrated into the host

selection of the above outlined services (plus others booking system and is seen as an integral part of the travel

not highlighted here) and delivers it to the traveller at providers’ overall offering. In some cases this can add up to

specific times throughout their journey under the 30% on the margin per booking.

brand of the respective travel provider. These As well as generating revenues, the package enhances the
packages can deliver all of the following objectives: service to the customer as it delivers relevant and timely
information specific to them and their location but also can
reduce costs as it proactively delivers relevant information to
• Generate ancillary revenue the customer before they ask for it.
• Enhance customer service The costs of such a package are totally flexible and can be
• Reduce costs set by each travel provider. However, packages can also be
delivered free to the customer if they are a valued, repeat, or
‘premier’ customer, for example.

This mobile business model means that a packaged service


requires no investment by the travel provider, is transacted on
a revenue share basis, giving travel providers a zero cost of
entry and it is available NOW.

ABOUT TRAVEL BUDDY


Travel Buddy is the innovator of ‘White Label’, mobile travellers and have a unique delivery system which is
content and communication systems for the travel completely flexible and can be tailored to the
industry working with major travel companies and requirements of the travel provider.
airlines as well as the main travel regulators.
If you wish to find out some more information or would
Travel Buddy has delivered strategic assistance, like us to assist in defining your mobile strategy then
tailored to companies within the industry and rolled-out please contact us.
services that are live and have been tested over the last
2 years.

Commercially, Travel Buddy will work on a revenue


share basis and its objective is to act as an ‘internal
mobile department’, assisting the travel business to
deliver mobile services, content and technical systems adam@travelbuddy.co.uk
to travel businesses and their customers. To date Travel Mobile: 07808 940060
Buddy have delivered information to over 4 million Office: 0208 939 8714

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