Eyefortravel - Mobile Technology In Travel Report The Introduction

School of Mobile Platinum Partner:

The School of Mobile:

Mobile Technology in Travel Report

Vol. 1: The Introduction

Chapter 1: The Global Mobile Market

EyeforTravel Research 7-9 Fashion Street London E1 6PX UK For queries contact: [email protected] www.eyefortravelresearch.com EyeforTravel Ltd, March 2009

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© EyeforTravel Research. All rights reserved.

Table of Contents

Mobile Technology in Travel - The Introduction

Table of Contents Introduction Methodology

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Chapter1: The Global Mobile Market

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1.1 1.2 1.3 1.4

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1.6

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Mobile subscriber base Internet vs. Mobile penetration Mobile in Developing Nations The Smartphone Revolution 1.4.1 Smartphone Focus: The iPhone Mobile handsets and operators The US market The UK market The Spanish market The Italian market The German market The French market Demographic overview of the following mobile markets: The US market The UK market The Spanish market The Italian market The German market The French market 1.6.1 Mobile users… male or female? 1.6.2 Mobile users… what age are they? 1.6.3 Mobile users… what income bracket are they? 1.6.4 Mobile users… which data plans have they organised? Data plans US market: data plans UK market: Data plans German market: Data plans Italian market: Data plans Spanish market: Data plans 1.7.1 Mobile data access analysis Trend of Mobile internet access

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Chapter 2: Mobile technology and the travel industry

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Introduction 2.1 How much Mobile activity has there been in the travel industry to date? 2.2 What does a Mobile strategy actually mean right now to Travel? 2.3 Perceptions towards the integration of Mobile in Travel 2.4 Will Mobile change the style of communication with consumers? 2.5 How viable is Mobile in Travel considered? 2.6 Currently, how far forward is Travel’s understanding of Mobile? 2.7 How prepared is the Travel industry to embrace Mobile? 2.8 What is next for the industry? 2.9 Will Mobile become a mainstream activity in Travel? 2.10 How may Mobile work to the advantage of Travel companies?

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Table of Contents

Table of Contents

List of Figures

Mobile Technology in Travel - The Introduction

List of Figures Figure 1.1: Figure 1.2: Figure 1.3: Figure 1.4: Figure 1.5: Figure 1.6: Figure 1.7: Figure 1.8: Figure 1.9: Figure 1.10: Figure 1.11: Figure 1.12: Figure 1.13: Figure 1.14: Figure 1.15: Figure 1.16: Figure 1.17: Figure 1.18: Figure 1.19: Figure 1.20: Figure 1.21: Figure 1.22: Figure 1.23: Figure 1.24: Figure 1.25: Figure 1.26: Figure 1.27: Figure 1.28: Figure 1.29: Figure 1.30:

Global Mobile Subscribers by Continent Global Mobile Subscribers CAGR by Region (2004 – 2007) Estimated Net Subscriber Additions (Millions, 2007 – 2011F) Global Share of Mobile Market (2007F) Mobile Penetration by Continent PC Internet Penetration by Continent Global Mobile Service Revenue - Voice/Data Split (2006 and 2011E) PC Internet vs. Mobile Penetration in Major Developing Nations The journey to Mobile Smartphone Penetration (EU5 = Consolidation of Shown EU Countries) iPhone Applications by Category (Jan 2009) Smartphone Users by Region and Country (3 Month average ending November 2008) OEM Handset Manufacturer Share by Country (3 month average ending November 2008) US Operator Shares for Total Mobile and Smartphone Users UK Operator Shares for Total Mobile and Smartphone Users Spanish Operator Shares for Total Mobile and Smartphone Users Italian Operator Shares for Total Mobile and Smartphone Users German Operator Shares for Total Mobile and Smartphone Users French Operator Shares for Total Mobile and Smartphone Users Total Mobile vs. Smartphone, Sex by Country (3 months average ending November 2008) Total Mobile vs. Smartphone, Age by Country (3 months average ending November 2008) Proportion of US Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Proportion of UK Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Proportion of Spanish Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Proportion of Italian Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Proportion of German Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Proportion of French Users by income group for Total Mobile and Smartphones (3 month average ending November 2008) Payment Plan by Total Users & Smartphone Users (3 month average ending November 2008) Percentage of users that have a form of data plan (3 months average ending November 2008) Data Plan Types broken down by Sex by Country (3 months average ending November 2008)

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Figure 1.31: Figure 1.32: Figure 1.33: Figure 1.34: Figure 1.35: Figure 1.36: Figure 1.37: Figure 1.38: Figure 1.39: Figure 1.40: Figure 1.41: Figure 1.42: Figure 1.43: Figure 1.44: Figure 2.1: Figure 2.2: Figure 2.3: Figure 2.4: Figure 2.5: Figure 2.6: Figure 2.7: Figure 2.8: Figure 2.9: Figure 2.10: Figure 2.11: Figure 2.12:

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Data Plan Types broken down by Age by Country (3 months average ending November 2008) Proportion of Data Package Subscribers by Demographic (US consumers, 3 month average ending November 2008) Proportion of Data Package Subscribers by Demographic (UK consumers, 3 month average ending November 2008) Proportion of Data Package Subscribers by Demographic (German consumers, 3 month average ending November 2008) Proportion of Data Package Subscribers by Demographic (Italian consumers, 3 month average ending November 2008) Proportion of Data Package Subscribers by Demographic (Spanish consumers, 3 month average ending November 2008) Overall Penetration (3 month average ending November 2008) Smartphone vs. Non-Smartphone Breakdown by Access Type by Country (3 months average ending November 2008) Access of News/Information by Smart/Non-Smart and Country (3 months average ending November 2008) Browser Access Penetration by Smart/Non-Smart and Country (3 months average ending November 2008) SMS Access of News/Information by Smart/Non-Smart and Country (3 months average ending November 2008) App Access of News/Information by Smart/Non-Smart and Country (3 months average ending November 2008) News and Information access ever in month penetration by country (3 month average ending in labeled) Percentage of Users that accessed Information and/or News nearly once a day (3 month average ending in labeled month) Has your company ever tested the mobile market? Has your company ever… (all respondents) Has your company ever… (US respondents) Has your company ever… (Asian respondents) What does ‘a mobile strategy’ mean to you right now? Does your company have a website specifically designed for the mobile web? Does your company have a website specifically designed for the mobile web - split by travel sector Does your company have a website specifically designed for the mobile web - geographical split Do you see “mobile” becoming an increasingly important element of your online/digital strategy? Do you believe that “mobile” will change the way you communicate with your customers? Do you believe that “mobile” will change the way you communicate with your customers? (UK Respondents) Do you believe that “mobile” will change the way you communicate with your customers? (Asian Respondents)

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List of Figures

List of Figures

Figure 2.13: Figure 2.14:

Figure 2.15: Figure 2.16: Figure 2.17: Figure 2.18: Figure 2.19: Figure 2.20: Figure 2.21: Figure 2.22: Figure 2.23: Figure 2.24: Figure 2.25: Figure 2.26:

Figure 2.27: Figure 2.28: Figure 2.29: Figure 2.30: Figure 2.31: Figure 2.32: Figure 2.33: Figure 2.34: Figure 2.35:

How do you view the viability of mobile devices in the travel & tourism industry for marketing? How do you view the viability of mobile devices in the travel & tourism industry for consumer internet search for travel/tourism purposes? How do you view the viability of mobile devices in the travel & tourism industry for customer service? How do you view the viability of mobile devices in the travel & tourism industry for ticketing? How do you view the viability of mobile devices in the travel & tourism industry for CRM? How do you view the viability of mobile devices in the travel & tourism industry for customer acquisition? How do you view the viability of mobile devices in the travel & tourism industry for sales/distribution? How do you view the viability of mobile devices in the travel & tourism industry as a travel payment platform? How well do you feel you understand the opportunities when considering “mobile” as a strategy? Breakdown of opportunities identified by the travel industry How well do you feel you understand the challenges when considering “mobile” as a strategy? Breakdown of challenges identified by the travel industry What is the biggest challenge for travel companies when thinking about “mobile” strategies? (Suppliers/Intermediaries Comparison) What is the biggest challenge for travel companies when thinking about “mobile” strategies? (Airline Suppliers/Hotel Suppliers Comparison) How well do you feel you understand enabling technologies when considering “mobile” as a strategy? How well do you feel you understand consumer behaviour when considering “mobile” as a strategy? How well do you feel you understand best practice when considering “mobile” as a strategy? How well do you feel you understand the potential ROI when considering “mobile” as a strategy? How prepared do you feel in terms of embracing “mobile” right now? When did/will your company invest in “mobile”? When did/will your company invest in “mobile”? (Airline Respondents Only) What needs to happen for Mobile to become a mainstream sales & marketing platform? How I see mobile working to the advantage of travel companies…

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List of Figures

Mobile Technology in Travel - The Introduction

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Introduction It is now widely accepted that the Internet can significantly impact the way we do business. Given the immense growth of Internet use in recent years, effects on businesses (positive or negative) have often been unavoidable and new strategies necessary. The Web has certainly affected the choice of the travel consumer, content has been developed, services improved, use evolved, business/consumer relationships changed, research and buying cycles transformed and as a result, online travel markets have developed globally. With faster, more efficient and measureable methods for companies to communicate directly (and indirectly) with consumers, e-commerce has revolutionised the way we do business in Travel. Efficiency drives most new technological investments and over the years, continuous development has enabled travel companies to improve the efficiency of the travel distribution chain. As well as the evolution of the Internet and its impact, in recent years new systems have been introduced enabling Hotels, Airlines, Car Rental Companies and other Travel suppliers and intermediaries to work online, improve processes, reduce costs, work together and ultimately increase the efficiency of their businesses. Without a doubt, digital strategies in Travel are increasingly fundamental. So with the dynamic nature of the travel industry and its consumers, what’s next? The evolution of the mobile phone from a personal communication tool to an information and social hub may open a range of possibilities for the travel industry. The ability to research, book and change travel arrangements at all times makes the mobile phone seem an ideal tool for travellers. The ability to connect with consumers at all times also seems ideal from the perspective of travel companies. It is argued that the mobile phone and its recent enhancements may take the efficiency of online travel to a new level and that Mobile technology may have another immense impact on the consumer buying cycle, thus the way we do business. Since mobile telephones were introduced they have reduced in size from unwieldy ‘brick’s’ with one function (to make voice calls) to very portable, highly sophisticated devices which in most cases act as the hub of our daily lives. The mobile phone has incorporated itself into that small list of items we must always have with us (as well as keys and wallet). This suggests something very exciting for the travel industry and many companies are busy investigating possibilities at all stages of the consumer buying cycle. But are there real possibilities? What and where could you be looking towards? How should you go about investing in this new digital strategy? What opportunities and challenges exist? Who has already invested in Mobile and how? Does the technology exist to enable what you want to actually do happen?

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© EyeforTravel Research. All rights reserved.

Introduction

Introduction

Introduction

Mobile Technology in Travel - The Introduction

The School of Mobile EyeforTravel Research presents The School of Mobile, an initiative to help educate the travel and tourism industry about the current and potential role of Mobile in Travel. The travel industry has recently told EyeforTravel that with a better understanding of mobile markets, technology and best practice, they’re ready to invest. So we aim to provide some of the necessary information to help make Mobile a reality in Travel and find out if 2009 really can be the year for Mobile. What is the School of Mobile? The School of Mobile begins with a series of 3 reports including invaluable research findings (phase one) followed by interactive seminars and meetings (phase two).

PHASE ONE The research & reports:

Vol. 1: Mobile Technology in Travel Report: The Introduction (this report) Vol. 2: Mobile Technology in Travel Report: The Detail (April 2009) Vol. 3: Mobile Technology in Travel Report: The Update (May 2009)

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VOL. 1: MOBILE TECHNOLOGY IN TRAVEL REPORT - The Introduction

• Is Mobile a viabile channel to reach the travel consumer? • Marketing, distribution, CRM and added value service strategies • Case studies from the industry’s leading companies: Is there a business • case or not? What is the future of Mobile in Travel? 2. Mobile and the travel consumer

- This report This report will look at the growth of the global mobile market and other measures critical for the advancement for Mobile in travel. Plus it includes analysis of the results of an industry wide survey conducted in late 2008 to find out what you, the industry know, need to know and want to know about Mobile and identifies the key opportunities and challenges to be addressed. VOL. 2: MOBILE TECHNOLOGY IN TRAVEL REPORT – The Detail

- Part 2 to be published April 2009 1. The Mobile travel market • Who is the Mobile travel market? Relevant up to the minute statistics. • How have travel suppliers and intermediaries embraced mobile technologies to date? • Which sectors / companies are buying Mobile as a strategy?

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• The impact of Mobile on the travel buying cycle • The digital traveller • Corporate Vs. Leisure 3. Practical guide to investing in Mobile technologies • Preparing for the Mobile platform Developing mobile content 4. Developing mobile strategies and investing in new technology Analysis and insight into opportunities from mobile technology innovations • • • • • • • • • • • •

Mobile search Mobile marketing Mobile applications Mobile travel distribution Mobile customer service Mobile ticketing Mobile social media Mobile and the brand Mobile transactions Mobile analytics Managing multi-channel strategies The legalities

5. Planning for the future of mobile travel • Operational management for mobile strategy integration

© EyeforTravel Research. All rights reserved.

Introduction

Introduction

VOL. 3: MOBILE TECHNOLOGY IN TRAVEL REPORT – The Update

Introduction

Mobile Technology in Travel - The Introduction

- Part 3 to be published May 2009 New EyeforTravel mobile research findings launched at the Travel Distribution Summit Europe 2009. Including brand new consumer research around online travel and the use of mobile technology.

PHASE TWO The practical & interactive seminars (19-20th May, Business Design Centre, London):

In Phase Two of the School of Mobile, we’ll move from information about planning and understanding mobile in travel on to practical and interactive seminars. Travel suppliers and intermediaries will have the opportunity to listen to experts in the field of mobile technology, watch and be part of panel debates around relevant topics to the travel industry and learn what a mobile strategy could mean to them. These seminars will take place in a Mobile Zone on 19-20th May in London located within the Travel Distribution Summit Europe 2009 exhibition area and travel suppliers and intermediaries are invited to attend free of charge. EyeforTravel Research will also be presenting their latest mobile research at intervals throughout the day in the Mobile Zone. Included in this, there’ll be loads of new and invaluable statistics, trends and industry insight revealed. For the remainder of the day we look to tackle the key technological issues and opportunities in a more practical style. The speakers will aim to help travel companies take practical steps forward and generate ideas about the opportunities available to them. And, there will be exhibition stands there and meeting places to learn about products and services in more depth. • To register for your place at the seminars please email [email protected]. • To recommend a company with a suitable mobile technology solution that you think would add value to the event please also email [email protected].

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