Trends Assessment

Trends Assessment |1

Ali Wade, Chuck Turnblad, Tracey Vang
HT 344 Section 001
Hospitality and Tourism Marketing and Sales
October 3, 2012
Trends Assessment

University of Wisconsin-Stout


Overview of Mobile Booking Apps

Mobile booking is a fairly new trend that the entire world is quickly catching up on.
According to “The Traveler‟s Road to Decision,” a study done in 2009 by Google, consumers
are now checking reviews before making reservations; 41% are making leisure travel plans and
50% are making business travel plans. The study also finds that travelers are doing research on
travel via the internet more than any other source.

Consumers are becoming more educated on travel and are becoming more demanding.
They want to know the ratings on where they are going to be staying while traveling. They also
want to give their opinion and rate places that they have stayed. Travelers were booking trips via
the internet, using a computer. But now, a study done by PhoCusWright in February of 2012,
found that more than half of all leisure travelers and three in four business travelers now own a
smartphone.Hotels are using this research to their advantage by advertising their hotels on the
internet, but more specifically on the social media networks like Facebook where PhoCusWright
has found that more consumers are more likely to book then compared to advertising onsearch
engines like Google. Hotels are creating their own apps to allow consumers access to their hotel
information and deals/discounts.

In 2010, two-thirds of businesses planned their travel through search engines, making
smartphone bookings rise to 69% according to a Travelmole study.Mobile apps not only make it
easier to book for businesses but also for leisure travelers.A little over half of consumers
surveyed from the Association for Corporate Travel Executives is still skeptical on the security
of apps. Apps are still a new concept to consumers and they feel they have little knowledge about
mobile payment and using apps. But, for the younger generation, whom are more familiar with
social media,are more spontaneous, and looking for a great deal, apps are quick and convenient.

Now that mobile booking is available as an app on smartphones, if a consumer‟s flight is
canceled or delayed they do not have to wait in line at the airport to book a new flight, they can
look an app up on their smartphone, book and pay for a new flight in seconds.Mobile booking is
not just for flights, it is available for booking hotel rooms, restaurant reservations, rental cars,
etc. Not only can a consumer use their smartphone to book but they can also use other means of
technology like the Kindle Fire, Android Tablets, and iPad, according to
BusinessTravelNews.com.Huffington Post.comstates that there is now a mobile-only app
focused toward last minute booking. Because of the economy, more travelers are waiting until
the last minute to book. The New York Times.com comments that mobile booking will be done
on the go now and in the future.

Online travel booking is expected to triple by 2013 according to PhoCusWright.In the
U.S. alone researching travel on a mobile device is expected to increase by 51%. Booking travel
arrangements is expected to grow in China, India, and Brazil by the end of 2012.



Impacts of Mobile Booking for Hotels

The growing trend of generating revenue in the hospitality industry from mobile
bookings is a trend that has been in significant increase. Mobile booking is a resourceful tool for
consumers who are not only looking to book a trip in the future, but for those eager to book a last
minute stay when they have already arrived at their destination.

The Ritz-Carlton Hotels introduced their mobile app earlier this year to give their guests
simpler access to their company‟s assortment of hotels around the world. However, Ritz-
Carlton‟s app not only provides a booking engine for guests, but is also filled with personalized
information and features. According to Melanie Nayer‟s article, Ritz-Carlton Debuts Mobile App
Packed with Personalized Info, Hotel Insights, “The Ritz-Carlton app includes personal tips from
President & COO HerveHumler that identify the „hidden gems‟ guests shouldn‟t miss when they
check in. Additionally, the app will offer personalized suggestions to guests based on location
and duration of stay.” The company is marketing their mobile app in a meaningful and relevant
way for consumers to differentiate it from other hotel brands.

Even though the mobile app‟s initial objective was to provide booking options for guests,
it cultivated into more of an experience and less of a necessity. One of the innovative features
that the app incorporates is the scanning of QR codes to offer the guest with comprehensive
insight and exciting activities to do like wine pairing or a digital scavenger hunt. These elements
of the Ritz-Carlton app allow guests to gain access to interesting facts that they would not have
otherwise known.
The Ritz-Carlton Hotel addressed the trend of mobile booking in a very cliché way. The
company became aware that there was a need for mobile booking and identified that a mobile
app could offer a variety of features in addition to the booking of hotel rooms. Conversely, the
QR scanning feature of the app is a creative way of marketing the unique activities that
consumers can participate in during their stay.

In order to improve the hotel companies marketing approach to mobile booking, Ritz-
Carlton could have put more emphasis on the booking facet of the app and advertised the
proficient functionality of that feature. By targeting the main feature on the app and providing an
immense distinction between other hotel brand‟s apps enables Ritz-Carlton to advertise how
enhanced their booking of rooms is compared to any other hotel.

Marriott‟s Fairfield Inn & Suites has used the concept of mobile booking to an entirely
new level. To drive last-minute bookings, Marriott developed mobile video advertisements.
These video advertisements are promotional videos that show how Marriott is striving to
increase efficiency for the consumer. They also include expandable banner ads with a
conspicuous button underneath that encourages users to book a room at that very moment. The
reasoning behind mobile video advertisements is because Marriott identifies their target
audiences as frequent business travelers who are always on the go and greatly rely on their cell
phone.
The use of mobile technology is a significant component of Marriott‟s marketing
campaign in order to promote their services to the frequent business traveler. Video is a major
component as well because it makes an effort to share the brand story in an appealing way while



giving the opportunity to strengthen the brand‟s image. The mobile app also includes numerous
features for the guest such as viewing amenities and tours of the hotel.

Mobile bookings have been a substantial success for Marriott‟s Fairfield Inn & Suites. In
the article, Marriott Banks on Mobile Video to Drive Bookings, Lauren Johnson states how, “The
company revealed that 50 percent of its smartphone bookings are for same-day stays.”
Furthermore, last year Marriott launched multiple smartphone apps along with a restored mobile
site to correspond with guests who are looking to swiftly book a hotel room.

For Marriott‟s Fairfield Inn & Suites to utilize the element of video advertisements to
inspire consumers to book a room at their hotel is a beneficial way to differentiate themselves
from other hotel brands. But for the company to be more successful with their marketing
concepts within the mobile app, they must take into consideration whether a busy frequent
business traveler would want to listen to a promotional video advertising the hotel brand. If the
consumer is a frequent guest at Marriott‟s Fairfield Inn & Suites they may possibly want a
simpler function opposed to continuously going through the video advertisement.

Mobile booking is a trend that can be applied to other industries as well such as the
healthcare industry. In the healthcare industry, mobile booking would be useful for patients to
schedule doctor appointments through their smartphone instead of calling and potentially having
to be put on hold. These types of bookings could also stem to other health and wellness
industries for scheduling appointments such as a dentist appointment, appointment with a
chiropractor, or even a manicure or pedicure at the local nail salon.

The entertainment industry is an industry that has already noticed the advantages that
mobile booking can offer. In the professional sports industry, fans apply this marketing concept
to their benefit by buying their tickets right from their mobile app without having to log on to a
computer. This is present in other aspects of the entertainment industry too by consumers buying
their movie tickets through their mobile apps to insure a seat for the movie. The trend of mobile
booking is a time and laborsaving way that can be applied to a countless number of industries in
our society.

Interview

1.) How do you see the trend of mobile booking impacting the business landscape?

“Mobile booking will certainly end traditional travel agents and even have a negative impact
on web site bookings such as Orbits and others.”

The modern traveler wants everything instantly, so the apps serve a great purpose.

2.) How do you see that mobile booking will change moving forward?

“Mobile apps will become more sophisticated. Transferring information into your computer
calendar will be more available, storing info in just about any electronic device will become
the norm.”



3.) What do you see will be needed to stay ahead of competitors in regard to mobile booking?

“To stay ahead in mobile booking simple requires more creativity and imagination in
determining what the market demands. The quicker, easier, user-friendly mobile booking can
be, the greater the success. It is truly the wave of the future.”

“Based on all the conferences and industry updates I have attended, using
cellphone/mobile apps, etc. for reservations is the thing of the future.

Most hotel chains and major brands have aps available and it is a convenience
that many business travels and even leisure travelers are using moreand more.
Travel agents are becoming more a thing of the past.”

Dan Creed
Instructor, Hospitality Management Dept
Normandale Community College

I was excited to take on this subject. I am convinced that this is truly more than a trend. I
see this being strong and long lasting. I am not of the generation that is into tech and fast
everything, but I love the tech. This is something I see spreading into many areas of hospitality,
airlines, restaurants, entertainment, and etc.
The possibilities for mobile apps and hospitality uses are endless. I can see more than
reservations being made on mobile apps - restaurant pre-orders, table reservations, hotel
reservations, room service, and additional on-site services, buying tickets for events, movies,
concerts, and other amusement venues.
Dan Creed, Instructor in the Hospitality Management Department of Normandale
Community College, My Manager/interviewee makes a good point in regard to impacting the
business landscape, we do want everything instantly. I agree that it will have an impact on travel
agencies and online travel sites. I can especially see it impacting the smaller less powerful sites.
I also agree that these apps and mobile sites will become more sophisticated, and I would
venture that they will become more far reaching and interactive. These systems will sync with all
your calendars and devices. I also see new types of mobile devices coming into the mix, new and
wonderfully more powerful devices as platforms new and more interesting apps.
Dan also states that “The quicker, easier, user-friendly mobile booking can be, the greater
the success. It is truly the wave of the future.” I do believe these are the keys to staying ahead. I



am sure they will become quicker, easier, and more user-friendly as time goes by. With the speed
at which technology is progressing, I won‟t be surprised to see these changes happen very
rapidly.
I can imagine that most of the larger hotel chains do have these apps or sites in place, or
in the process of doing so. Smaller chains and independents would be wise to jump on this as
soon as possible if they haven‟t already. Restaurants have similar mobile apps and sites for
making reservations. Airline and Car rental companies are also putting out apps and sites.
Dan Creed has taught at Normandale for the past eight years in the Business and
Hospitality departments as well as coordinated the International Global Studies program.
Dan has an extensive background in business, hospitality, and international travel. He
has traveled in over 60 countries and enjoys the opportunity to take students to various parts of
the world. I met Dan as a professional connection on Linkedin.



Sources:

Belopotosky, D. (2011). Mobile Booking Apps Are Only Just Starting to Deliver. Retrieved
September 29, 2012, fromhttp://www.nytimes.com/2011/05/05/business/05APPS.html?_r=0

Brady, P. (2012). Why We’ll All Soon Be Booking Hotels On The Go. Retrieved September
29, 2012, from http://www.huffingtonpost.com/paul-brady/mobile-booking-
travel_b_1613844.html

Johnson, L. (2012). Marriott Banks on Mobile Video to Drive Bookings. Retrieved
September 25, 2012, from http://www.mobilecommercedaily.com/marriott-banks-
on-mobile-video-to-drive-bookings

No Author. (2011). NewsLog. Retrieved September 29, 2012, from
http://www.businesstravelnews.com/Hotel-News/IHG-expanded-its-mobile-booking-apps-to-be-
available-on-the-Kindle-Fire,-Google-TV-and-Android-tablets/?ib=Technology&a=mgmt

No Author. (2012) Online Travel Market. Retrieved September 29, 2012, from
http://www.newmediatrendwatch.com/world-overview/91-online-travel-market

Nayer, M. (2012).Ritz-Carlton Debuts Mobile App Packed With Personalized Info, Hotel
Insights. Retrieved September 25, 2012, from
http://www.boston.com/travel/explorene/blogs/packup/2012/05/ritz-
carlton_launches_mobile_a.html

Dan Creed
763-350-6237 cell
952-358-8689 office
Normandale Community College
9700 France Av. S.
Bloomington, MN 55431
dan.creed@normandale.edu


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