official trends paper

University of Wisconsin - Stout Trends Assessment: Mobile Booking

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HT 344 Jake Edeburn, Cassidy Capriglione, Calvin Carpenter

Trends Assessment: Mobile Booking

Cassidy Capriglione, Jacob Edeburn, Calvin Carpenter

HT 344 Hospitality and Tourism Marketing and Sales

10/3/12


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Historical Overview

We live in a generation where technology cannot be ignored and the hospitality industry

is catching on to that very quickly. Mobile hotel booking is becoming more popular to

consumers than the average property-direct booking. Consumers are rapidly evolving and

adapting to the newest technologies and it is up to the hotels to accommodate their needs.

“Consumers care about choice, they care about transparency, and they care about convenience.”

Thirty five percent of all travel searches are from mobile devices, and it is predicted to increase

to forty five percent in the next year. Consumers are ultimately looking for room availability and

pricing information, and about one third of online travelers are interested in using their mobile

device to make the final purchase when it comes to mobile booking. Apple iPhones,

BlackBerrys, Androids, and other mobile devices are to thank for this growing trend due to the

many hotel/travel apps and websites they can provide. In the past two years, the percentage of

users using mobile devices to shop for trips has climbed from eleven percent in 2010 to sixteen

percent in 2011. Smartphones and mobile devices are most likely going to be embraced by the

younger travel groups, and the reason is obvious, we live in a technological world now. It is up

to hotel and travel companies to create options for the consumer and they also need to determine

the best strategy for them as a company. Companies need to realize, if they haven’t already, that

everyone is an individual and every individual likes different options. The reason behind the

popularity to mobile hotel/travel booking is because consumers are very time constrained and

they are price sensitive. Companies need to find the best strategy whether it is creating a personal

app for a mobile device, or an easily accessible mobile site that provides consumers with the

correct data they need to ensure an easy, and convenient travel experience. With that said, mobile

web users are predicted to surpass traditional desktop internet users by the year of 2014. If hotels

and travel marketers keep that in mind and if they make necessary adjustments, it can provide a

business with huge revenue opportunities along with a strong competitive advantage if

distribution and marketing is done correctly.

Case Study One

Hotel Tonight is a last minute hotel booking app and it has had a pretty significant year.

The company is taking in millions of dollars’ worth of funding and it has expanded outside of the

U.S. The company is now focusing on personalizing the app for individual users that have Apple

products and Androids. The hotel is also doing something they have never done before which is

dipping into user reviews. The whole principle of Hotel Tonight has been to present users with a

short list of hotels the company recommended. Now the app provides thumbs up, thumbs down

ratings which are giving users more individual information about a hotel and whether they

should pick it. Hotel Tonight does not work with every hotel; they use a rating system to

determine which hotels should be on their app by using a percentage ranking. If a hotel falls

below a ninety one percent, the Hotel Tonight app will stop working with that hotel. Another


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important feature that Hotel Tonight is offering is three bonus “impulse deal” hotels to each

destination city’s screen. This feature will get better and better the more a customer uses it

because it customizes the first hotel options based on picks a customer has made in the past.

Hotel Tonight is using the same techniques Amazon has been using for years. I believe that this

is a big step in the right direction for Hotel Tonight. They are playing off of the idea that

Amazon has developed to make searches easier for customers who have this app. I have an

iPhone 4S and after reading this article I downloaded the app so I could really understand it and I

am extremely impressed by the entire layout. The app asked the customer if they can take their

“current location” and if you are in an area where they have listings for hotels, they will show

you the available rooms. They also offer great pictures of each hotel that can be viewed with just

the slide of a finger and this improvement to mobile booking makes last minute travel easier than

ever. The one down side that the app could improve on would be to have more city options. I

realize that might be a stretch considering they are only focusing on highly populated areas and

that each hotel has to fall under a percentage ranking to be in Hotel Tonight app, but it is

something that they could consider a few years from now.

Case Study Two

There are many hotel and tourism companies that feel the need to come out with an app

to adapt with the growing mobile booking trend, while that might be the case for most hotels, it

is not the case for the Vegas.com team. They realized that they are a single destination offering,

and customers need a window of time for planning a trip to Las Vegas. With that large amount of

time between those trips, they realized that people would delete the app after they have gone on

the trip and possible would not download it again until they planned another Vegas encounter.

They came to the conclusion that a mobile site (m.vegas.com) was far more efficient than

creating an app. The company’s mobile website features information in six areas; hotel rooms,

show tickets, deals, flights and hotel packages, tours and nightclubs. This site gives users an easy

opportunity to book and buy tickets, tours, and packages on the go during a trip to Las Vegas.

Another special feature they offer is the ability to browse same day discounts because the

company noticed that at least sixty percent of users were booking products and services for use

within a few days from booking it. This site was created with the intention that the users already

know what they want to see and do and it is recommended that a user creates an account prior to

going on the trip for easier access. If travelers have any issues with the website process there is

an easy access toll-free number that appears in the site if assistance is needed. I believe this is a

creative resource that does not follow the norm of creating an app. They realized that customers

do not necessarily need an app but an easily accessible mobile resource.

Mobile technology is on the rise for every industry and another industry that needs to be

just as connected with consumers as the hospitality field is retail. Many retail companies are now

developing mobile couponing apps. Most of these coupons are offering daily deals but are not

exclusive to only that, and it is said by 2013 almost one third of smartphone users will be


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redeeming discounts on the go. Geopon is unlike any normal couponing store, they offer many

features such as payment, coupons, and loyalty, and entire wallet solution on your mobile device.

The app has not yet launched, it still has to undergo final testing for Android users, but we

should be expecting an iPhone app in just a few weeks. The mobile couponing industry is

expected to generate more than $43 billion in global redemptions by 2016; it is another trend that

should not be ignored. Another business that is using mobile technology to its advantage is

Dunkin’ Donuts. They have developed an app that lets customers pay through a virtual debit card

via barcode scan and it enables customers to send Dunkin’ gifts through email, text, or social

media sites. The owner of Dunkin’ Donuts realized that this is what the customers wanted based

on the feedback from Dunkin’ Donut’s social media sites. Customers enjoy the speed and

convenience of paying with their smartphone or mobile device. This chain has also paired up

with other mobile apps such as Foursquare which allows customers to accept rewards upon

checking in to a Dunkin’ Donuts like a free hot or iced coffee. Both of these new apps from

Geopon and Dunkin’ Donuts are all ways that they can connect to the growing consumer. Most

companies seem to have no other option now but to keep up with consumers and how they

handle technology if they want to have a competitive advantage over other businesses or

industries. Embracing the potential changes that lie ahead would seem like the best choice for

any business that wants to stay afloat.

Business Impacts and Potential Changes

Currently in the Travel and Tourism industry, social media is the most dominant form of

advertising. The industry depends on consumer’s word of mouth and the different opinions that

are spread out about their company from consumer to consumer. Social media is most often used

by today’s customers; they are easily influenced by the interests of their peers, this is a perfect

way for businesses in the Travel and Tourism industry to gain feedback from its customers.

Mobile booking apps have allowed companies to provide consumers with a fast and easy way to

find their stay. This trend is growing in the industry as four percent of travelers have access to

these mobile apps and is expected to increase to fifteen percent in 2012. Mobile booking is also

cheaper for companies to use, rather than to have an operator handle the transaction. When

travelers access mobile booking through an app, they are instantly presented with several dates,

prices, hotels, and flights that they can access. This is beneficial to the traveler because he or she

may not always get this information while speaking over the phone or in person to a travel agent

and many companies reduce the cost of booking if it is done online. Mobile apps have given

travelers an opportunity to be flexible, by being able choose a hotel for a night’s stay at last

minute including cheaper rates and by having the convenience of cancellinga reservation at any

time if they are able to better hotel rates elsewhere. Travelers who use these apps are also able to

provide reviews, along with rating their stay which provides beneficial feedback to a company.

When a satisfied traveler decides to post a comment about their stay and experiences, companies

are able to use the positive feedback and promote their business. When there is negative


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feedback, managers and owners can improve their business by correcting different issues that

may have caused that negative experience. Feedback gives managers and owners the information

they need in order to help their company provide the best experience possible for travelers.

Many companies in the Travel and Tourism industry have adapted to the use of mobile

apps for booking to compete with their competitors and benefit travelers. Google has reported

that hotel mobile searches have increased by an astonishing three thousand percent and twenty

percent of searches are done with a mobile device. In the United States it is becoming more and

more common to have a smartphone.Smartphones count for almost one third of all mobile

devices sold and mobile usage is surpassing print publications along with travel brochures. There

are nearly seventy five million smartphone users and that is expected to increase by one hundred

million in 2014.

The mobile app trend in the future will be much more sophisticated. Hotels, for example,

that provide a mobile app in the future will allow guests to use their smartphone to perform the

basic functions of a hotel such as, using their device as a key to their room, order room service,

or to check in and out of a room. If companies in the hospitality industry want to continue the

success they have had in the past, they need to acknowledge the future and provide mobile

booking for guests. Many companies have yet to provide mobile booking, but the future looks

bright as fifty percent of companies have considered providing a mobile application for

smartphones. Companies in the hospitality industry need to provide mobile applications for

smart phone users if they want to stay in competition with their competitors and move forward as

an organization. In order to compete with competition in the industry companies need to

advertise on their mobile apps so that guests can see they are gaining a benefit in some way.

Companies can advertise lower prices, better service, customer focus, and attention getting

products which will attract travelers and guests to their company. One company that is catching

on to the idea of using mobile devices to attract customers is the Lake Arrowhead Golf Course in

Nekoosa, Wisconsin.

Interview

Joel Barth is the Director of Golf at Lake Arrowhead Golf Course and has worked in the

golf and resort industry for 30 years. His expertise is mostly in operating the golf course, but has

expert knowledge in resorts and hotels. According to Joel many people won’t consider traveling

to play at a golf course unless they can find an affordable, well maintained hotel. He also stated

that in many cases it is a family vacation where the adults may play golf, but there needs to be

something for the children to enjoy as well. Joel has seen firsthand how mobile booking has

affected the golf and tourism industry. It is now easier for someone to book a tee time and find

the nearest hotel in their price range. There is no doubt that mobile booking has played a major

role in not only booking hotel stays, but also tee times at golf courses. Many golf courses now

days have learned to adapt with the times and use social media to advertise.


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“New this year Lake Arrowhead is now on Facebook and Twitter and we have seen a

positive reaction from our members and public players who have found our golf course through

these social media websites, I would say it has been a success,” Joel Barth stated.

“We still send out monthly email specials to our e-club subscribers and have tossed around the

idea of implementing the same kind of monthly specials for our Facebook friends and Twitter

followers,” says Joel Barth.

“When it comes to mobile booking, I love the idea, but we just don’t have the right

cliental with our members all being older to invest in it at this moment. I see Lake Arrowhead

using mobile booking in the future, but right now it is just something we cannot afford to do,”

says Joel Barth.

Mobile booking has played a pivotal role in golf courses’ way to maximize their tee sheets.

Golfers can now book tee times anytime of the day or night without even calling or stopping into

the golf course. It is a major benefit to a golf course if golfers are able to book tee times even

when the golf shop is closed. Mobile booking is revolutionizing the golf and hotel industry by

making it easier for customers to make reservations on the fly.

The use of mobile devices for any tourism related task has a very bright future, many

companies are adapting to this trend to perfect their company and compete with their

competitors. Not only is the hospitality industry catching on, other business are developing new

tactics for this trend as well. The consumer is forever changing and it is up to companies to listen

to what they have to stay and it is also their job to come up with innovative ideas to keep to

customer involved in their business or company.


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Bibliography:

http://www.travelweekly.com/North-America-Travel/Insights/Vegascom-opts-out-of-app-

chooses-mobile-site-instead/

www.travelweekly.com/Travel-News/Online-Travel/Bookings-via-mobile-apps-soar/

www.hotelnewsnow.com/Articles.aspx/8969/Travel-players-predict-2013-trends-concerns

www.huffingtonpost.com/paul-brady/mobile-booking-travel_b_1613844.html

igaom.com/2012/09/18/with-redesign-mobile-app-hotel-tonight-gets-personal/

http://www.ehow.com/about_4674627_pros-cons-online-booking.html

http://hotelexecutive.com/business_review/2885/hoteliers-2012-mobile-marketing-action-plan

http://www.mediapost.com/publications/article/181104/qa-with-dunkins-john-costello-roi-

comes-first.html?edition=50312

http://www.miamiherald.com/2012/05/06/2784079/app-targets-exploding-mobile-coupon.html

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