Mobile technologies have created incredible marketing and distribution opportunities for hospitality and travel organizations.
The presentation covers the importance of the mobile computing for travel and the challenges facing hotels, resorts and restaurants when engaging with guests through mobile distribution channels.
The importance of developing a mobile strategy and the related business and development considerations are covered.
Additionally, location based services and potentially disruptive mobile innovations are also profiled.
Presented by Robert Cole, Founder of RockCheetah at the 2010 Hospitality Financial & Technology Professionals (HFTP) HITEC Conference in Orlando, Florida, USA on June 23, 2010.
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Mobile Distribution - No it's not Billboards and Neon Vacancy Signs
1. Mobile DistributionNo, It’s Not Billboards andNeon Vacancy Signs Robert Cole Founder, RockCheetah rockcheetah.com/blog
2. Presentation Overview Why Mobile is Important Why Mobile is Challenging Why Mobile Travel is Complicated Mobile Web v. Mobile Apps Mobile Business Considerations Mobile Development Considerations Location Based Services Disruptive Mobile Innovations June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 2
3. In the Good Ol’ Days… Billboards Vacancy Signs June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 3 Mobile Distribution Was Pretty Much Limited to: and Image Credit: BGLewandowski on Flickr | 28flavors on YouTube
4. Then, the Internet Changed Everything June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 4 Image Credit: Thomas Hawk on Flickr
5. 15 Years Later, Mobile Changes It All Again June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 5
6. Why Mobile is Important Extends Most Important Web Attributes Device Follows the User – Mobile GPS Provides Geographic Context - Local Supports Many Forms of Communication – Social Devices are Typically Not Shared – Personal Smartphones Extends the Senses Sight (Camera) Sound (Microphone) Feeling (Touch-screen) Balance (Accelerometer) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 6
7. Google’s Perspective on Mobile Google’s New Credo: Mobile First June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 7
8. Why Mobile Can Not Be Ignored June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 8 Smartphone use is on the rise. Mobile web adoption is ramping up 8x faster than Internet in the mid-90s. In the Travel vertical, purchase intent on Mobile ads is 5x higher than on desktop ads. Mobile Travel bookings are projected to grow 700% in 2 years. $20M 2008 $160M 2010 Projection Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010
9. New Devices Impact Mobile Hotel Queries June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 9 Android Nexus One Significant Growth in 3 Years Moto Droid & Eris Google Mobile “Hotel” Category Query Growth Device Launches Android myTouch iPhone 3GS Blackberry Storm Android G1 Palm Pre iPhone 3G iPhone Data Source: Google Internal Data
10. Mobile Advertising & Booking is Real Google / Vegas.com Case Study Click-through rates may be a lot higher for mobile ads than desktop Impressive returns on the iPhone with campaign CTR nearing 20% Google Travel Booking Recommendations Purchase intent on Mobile Travel ads is 5x Higher than desktop ads Target efforts Drive-up bookings Incremental night stays Last minute flight changes Highlight promotions Motivate consumers to interact and spend with your brand June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 10
11. Need More Convincing? Apps Work Well for Highly Engaged Users 25% of iPhone & Android Users 2 hours per day on Apps Booking Functionality is Expected by Consumers Support Branded Assets by Driving Downloads & Usage Let Travelers Use The Phone! Adding Phone Number to Ad Text Increased CTR5-30%! Google Mobile Calls 22% More Likely to be Relevant & 31% More Likely to Result in Bookingthan calls other lead sources 1 Out of 3 Mobile Searches Has ‘Local Intent’ June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 11
12. Mobile Travel Booking Is Different Booking Window is Shorter. More Last Minute Search Queries are 2-3 Words Requires Create Mobile Landing Pages for SEO Separate Campaigns Required for Mobile Must Reflect Different User Behaviors Geo-location is Important, but not Everything Time of User Access is Important Lunch-time / Evening June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 12
13. Travel Process is More Complex -Impacts Traveler Goals & Perceptions June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 13 Guest’s Perception of Web/Mobile Travel Experience Source: RockCheetah Proprietary , Seven-Step Travel Process
14. Guest Relationship is More Complex -Multiple Traveler Personas Individual Maintains Same Demographic, but Purpose of Travel Dictates Decision Processes Multiple Traveler Personas Exist Business Meeting Industry Conference Family Vacation Romantic Getaway Weekend with College Friends June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 14
15. Hotel Distribution Channels Shifting June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 15
16. Please, Let Them Book the Reservation June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 16 Data Source: iPerceptions 4Q09 Hospitality and Tourism Industry Report
17. Mobile Challenges – Fragmentation Siloed Operating Systems Apple iOS v. Google Android v. BlackberryOS v. Symbian 3 v. Windows Phone Different Hardware Capabilities Varied Power, Features & Screen Sizes Mobile Web v. Apps Provide Different User Experiences Politics v. Rich Internet Applications Flash / Silverlight / HTML 5 & H.264 June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 17
18. Technology is More Complex - Welcome to the Splinternet* Golden Age of the Web Ending Information Sharing Was Based on Compatible Formats Now, the Age of Walled Gardens Content Controlled by Platform Owner Content Hidden From Search Engines by Passwords Apple – iStore Excludes Flash Applications Bars Google AdMob Advertising Facebook – Friends & Likes Social Graph Exists Only After Facebook Login June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 18 *Term “Splinternet” coined by Josh Bernoff, Forrester Research Senior VP - Idea Development
19. SplinternetPlatform Characteristics June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 19 Source: Forrester Research
20. SplinternetAd & Experience Characteristics June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 20 Source: Forrester Research
21. Operating System EvolutionInnovation or Fragmentation? Android – One Year Old / 4 Different Versions Version 1.5 – 24.9% Share Version 1.6 – 25.1% Version 2.1 – 50.0% Version 2.2 – Available for Nexus One Google Approach “Google treats partners equally, but will not slow the rate of innovation so weaker players can keep up” “By constantly raising the bar, both in terms of reference devices and software, Google aims to keep innovating and drive that innovation as a differentiator” “Android isn't a summer camp for handset vendors and not everyone gets a trophy for showing up” June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 21 Source: Michael Gartenberg Altimeter Group
22. Mobile Web v. Mobile Apps Mobile Web Benefits Open Standards Cross Platform Functionality No Proprietary APIs Cross-Application Integration No 3rd Party App Stores No Revenue Sharing June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 22
23. Mobile Web v. Mobile Apps Mobile App Benefits More Robust GUI Options Does Not Require Online Access Access to Phone “Senses” & Native Data App Store Marketing Opportunities Clear Monetization Model June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 23
24. 4P’s of Mobile Strategy Development People Who is the Target User? Purpose What Do the Users Want to Accomplish? Platform What Types of Devices Are They Using? Process Define Most Efficient Navigation & Workflow June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 24
25. Most Important Questions: What Are Your Mobile Objectives? Bookings Ancillary Revenue Customer Service How Can You Create Value For the Guest? Save Time? Save Money? Enhance Experience? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 25
26. Mobile Apps – Business Considerations Business Models Applications – Technology (Revenue Share with App Store) Subscriptions – Unique Content (Rev Share with App Store) Publishing – Advertising (Share Revenue with Ad Network) Monetization Methods Free Freemium – “Light” Version Free, “Deluxe” Version is Paid Full Retail Price June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 26
27. Mobile Apps – Marketing Considerations Perfect World: Volume Drivers Good Device Good Network Good Browser Promotion Must Be Differentiated – Provide Unique Benefits Greatest Challenges Breaking Through Clutter – Must be Found Maintaining Engagement / Avoiding Deletion June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 27
49. Mobile Functionality – Best Practices One-click Driving Directions Know Phone Location / Know Destination Click to Talk Provide Phone Number in Mobile Ads Include Context Appropriate Phone Numbers Integrate Social Networks Help Customers Promote Your Brand / Location Negotiate Development Costs Aggressively Restaurant Group: 23 Sites = $8,000 (Orig. $37K) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 30
50. Mobile Promos: Ground Rules Apply Protect Guest Privacy Opt-In for Promotional Message Delivery Are Offers Relevant? Popular or High Demand Product/Features? Appropriate for Individual? Provides Consumer Value? Simple to Convert? Avoid Bait & Switch Offers and Trailer-plays Provide Options to Engage Their Social Network In Destination Engagement May Not Be Forever June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 31
51. Mobiata – StayHip (For TravelClick) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 32
52. Can Your iPhone App Compete? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 33 “I was in downtown Orlando for MegaCon this weekend and bid for a last minute three-star room for $75 – all while in line for a panel.”
53. A New Location, Location, Locationfor the Hospitality Industry June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 34 Image Credit: geoftheref on Flickr
54. Location Based Services Foursquare Enables Free Setup & Custom Badges Mayor, Check-In, Frequency, Wildcard Specials Yelp! Monetizing Setup , Plus $300-$1,000 Monthly Heavily Food & Beverage Oriented Gowalla IHG Partnering for “HIT it Big” Promotion Check-in on Weekend Stay, Register for Bonuses June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 35
55. Location Based Services - Continued Best Prospects for Offers Frequent Guest Program Members Returning Guests (Non-Program Members) First Time Guests (Not Familiar with Property) Types of Specials Most Frequent Visitor (Mayorship) Check-In (Discount / Value Add for Visit) Frequency (Bonus for Nth Check-In) Wildcard Offer (Special Offer for Having a Badge) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 36
56. Disruptive Mobile Innovations Yelp! Monocle - Augmented Reality Point Camera Down Street, See Reviews Kayak Connect - Booking Mobile Meta-search Gets Transactional Google Store Views Google Maps Street Views Goes Indoors Apple iTravel Streamlining the Travel Experience Openways Innovative Mobile Door Locking System June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 37
57. Yelp! Monocle June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 38
58. Kayak Connect June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 39
59. Apple iTravel – Booking Transactions June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 40
60. Apple iTravel – Traveler Identification June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 41
61. Apple iTravel– Revolutionary Air Experience? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 42
62. iTravel – Revolutionizing Event Merchandising June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 43
63. iTravel – Revolutionizing Conferences? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 44
64. Openways – Doors or Distribution? Uses Mobile Phone as Room Key Engages Guest Prior to Arrival / Kept through Stay Does not Require Replacement of Door Locks Device Added to Existing Lock Set Smartphone App Downloads Unique Audio Code From Cloud Feature Phone SMS Text Message / Calls Servcer / Plays Code Will Support NFC in Future June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 45
65. Every Innovative Mobile Ideais Not Always a Good Idea… June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 46
66. June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 47 Robert Cole RockCheetah LLC robert@rockcheetah.com http://rockcheetah.com/blog/ What Did You Think? In order to help us create/provide a better HITEC experience in the future, please take a second to fill out our short survey. And THANK YOU for attending HITEC! Learn how HFTP membership can benefit you, visit www.hftp.org