The document discusses trends in mobile applications and their impact on businesses. It analyzes how companies like Priceline, Expedia, Kayak, Starbucks and Chipotle have developed mobile apps to engage customers. Experts note that mobile apps now account for more usage than mobile web browsing. Businesses need to develop apps to stay competitive and provide customers with convenient services like booking hotels, ordering food, or making payments directly from their phones. As the use of mobile apps continues growing, companies that adopt this trend will see benefits while those who fail to adapt may lose business.

1. Mobile Applications
Trends Assessment
University of Wisconsin Stout
Kate Smuda, Kyle Steinberger, and Patrick Tierney
October 3, 2012

2. Mobile Applications
October 3, 2012
The Business Side of Technology – Section 1
Technology has become the trademark of today‘s society and as it continues to expand
into bigger and better things, it is beginning to provide numerous possibilities in the business
world. Mobile phones have turned from a luxury into a necessity, and with the abilities to be
connected to the web at all times it has allowed you to control your life while being constantly on
the move. In 2007 the first iPhone was released by Apple, and in 2008 the launch of the App
store was released. Android followed suit in 2008 releasing their first phone that could access the
Android Marketplace. Over the last 4 years development of these apps and marketplaces has
taken over the mobile phone industry, and the amount of things you can accomplish on your
phone now is simply amazing. When apple launched its App-storeit had roughly 500 apps, and
according readwriteweb.com, ―Apple reached the 100,000 app mark first, a little more than a
year after launch, in November 2009.‖ he later states, ―As of now, the Market (Android) has
about 400,000 apps while iOS (Apple) has nearly 550,000.‖ (Rowlinski) In 4 years, the app store
has hit over half a million apps, and it continues to grow more and more with the development of
new technology providing faster and easier access to information people care about. So how do
these apps and app stores relate to businesses? With the continuing expansion of the app store
marketplace, it is becoming the standard norm to have an app that provides access to the wants
and needs of the businesses consumers. Dailymail.co.uk provided in an article a survey done by
Alexa and Flurry Analytics that compared time spent on U.S Mobile Apps vs. Web Consumption
in minutes per day. The study concluded that in June 2010, the average use for web browsing
was 64 minutes and use of mobile apps was 43 minutes. About 2 years later in December 2011,
the average use for web browsing was 72 minutes compared to mobile apps which jumped to 94
minutes. This trend shows you that while internet browsing is still a large part in mobile phones,
the advancements in mobile apps is sweeping over our nation. For a business to be able to
produce an app and have their company constantly on the mind of potential customers is a huge
advantage among their competition. Other app benefits that relate to businesses are push
notifications, being native, provide a positive user experience, and allow you to view the
analytics involving your app. (Fitzgerald) Push notifications are popup message or updates that
alert the user of the phone when something new is available. These provide an inside track to the
consumers mind by always reminding them of your company and showing of your latest deals
and specials. Being native means that a data connection isn‘t required to access an app. For
example, if you‘re flying in an airplane without internet connection, you are still able to open and
use 95% of the app. The user experience is stronger on apps than a mobile website because the
app they are using is built for that certain operating system, and is able to help in more ways
having access to your phone‘s GPS. What I mean by this, is that if a user wants directions to a
hotspot near your hotel, the GPS signal can be picked up and the accurate set of directions can be
given from their exact location. Lastly, there are analytic packages which run the same for a
normal website. It allows the business to see overall usage, consumer data, and to show goal
conversions which gives the business a true understanding of the use of their app. With the
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October 3, 2012
amount of potential and upside to developing an app and the increasing amount of consumers
using them, provides an insight as to why mobile apps are taking over the hospitality industry.
The trend of the hotel booking app on smartphones has drastically changed the hospitality
industry. Apps provide travelers with the luxury of planning their entire trip via their
smartphone. Two companies have thus chosen to capitalize on this trend are Priceline Hotel and
Car Negotiator and Expedia. These businesses addressed the trend by emphasizing layouts that
posess a certain amount of attractiveness and simplicity. What both companies lack is true
imagination.
Priceline Hotel and Car Negotiator is the most relevant and predominate hotel booking
app in the industry. They do a great job advertising their product with the always hilarious
William Shatner. Also the company manages to stay ahead of the curve by providing outstanding
features for their customers. According to USA Today:
―Priceline's iPhone and iPad apps are noteworthy because they now give you
three ways to book hotels: You can browse and book stays at published rates; tap to place
a bid using Name Your Own Price for discounts of up to 60%; or access the Express
Deals feature, in which you know the room rate (up to 45% off) upfront, but only find out
which hotel it is after you pay. Express Deals is not yet available in Priceline's Android
app. In the fun and gimmick department, you can filter your hotel search by stars, guest
scores from verified patrons, and perks such as free Internet service and airport shuttle.
You also can spin a wheel to set your maximum price for the room.‖
The mistake that Priceline is making is that they fail to market to a specific demographic.
In order to make this trend of using this app efficiently Priceline needs to identify who their
target market is and market this app towards them. When the company Facebook started Mark
Zuckerberg specifically targeted college students ranging from 18-24. Then as popularity grew
Facebook began to expand its target market to wider age demographic. Priceline advertises the
app in the commercials with the average looking male in a taxi looking to book a last minute
hotel room. The message being sent is essentially anyone can use the app, however they need to
specify exactly who will be using their app. The target market that should be sought after is the
average businessman/businesswoman who extensively travels and is looking for cheaper deals.
While it is important to attract a general well-rounded audience, by appealing to a specific
market the app would gain much more attention and be much more received. Perhaps Priceline
could take some notes from their competitor Kayak.
Kayak has taken all of their features from their website and allocated them to their app.
The features this app provides are compare flight, hotel and car rental deals, track your flight
status, view and manage your trip itinerary, look up baggage fees, access airline numbers and
airport information. The Kayak app essentially makes traveling organized and efficient.
According to USA Today
―Kayak's app, which offers hotels, flights, cars and flight-tracking, has been downloaded
more than 17 million times‖. The only criticism that can be emphasized is that the app is
cluttered with advertisements. For 99 cents users can download Kayak Pro which in a essence
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October 3, 2012
de-clutters all the advertisements. Kayak should have taken the same approach in advertising that
Youtube made. The advertisements within Youtube are short 30 second segments that the user
can usually skip within the first five seconds. Not only does this satisfy the advertising
company‘s desire to reach a market right away it allows the customer to feel ‗in- control‖ and not
harassed by constant advertising. Both Expedia and Kayak can take what Starbucks and Chipotle
have done with their apps.
Starbucks has reached great success with the launch of their app and payment plan. One
of the features in this app is allowing customers to upload money onto their mobile phones,
which can then translate into a barcode that the register can scan. The customer literally needs to
only go to the store swipe his phone and pick up his order. Starbucks‘ took a chance and created
a completely new concept for the customers. In a sense this type of imagination is what
companies need to grasp. Since the creation of the app Starbucks mobile payments now account
for two percent of all sales. According to buisnessweek.com
―The mobile payment options also promise a profit boost for Starbucks. By letting its
customers make purchases with their smartphones, Starbucks manages to pay fewer fees—which
sometimes top 2 percent—on credit-card transaction‖. Chipotle has also made strides in their
mobile apps features.
Simplicity at times is key when creating a mobile app. Chipotle uses the most simple
templates they can in order to satisfy their customers. One needs to simply just put in his/her
location and then order from the store‘s menu. The application then texts you when the order is
done. Direct contact can help establish a relationship with the customer.
Bernie Mullen, a Hospitality professor at UW Stout, offered to be interviewed on mobile
applications. He has witnessed this progression first hand in both the University studies and the
hospitality field. Professor Mullen started his career working as a Tax Accountant, controller,
general manager for many different hotels, a VP in hotel operations, his current job as an
instructor, and finally managing partner.
How will mobile applications impact the business landscape? Mobile apps are just
starting to emerge in the hotel booking environment. It creates a whole different set of standard
operating procedures SOPs for the hotel. Some hotels have become so enclosed with technology
that there is really no need for any customer service personnel to be present, says Professor
Mullen. ―One of my friends called me up one night saying there is no one here at the hotel!‖ He
had checked into a hotel that was all technology based. The booking of the room was done from
a mobile device; he never had to check in at a front desk. There was just a machine that took his
information and gave him his card. We get so enclosed of technology now a days that we don‘t
seem to notice when there is no human present. The hospitality business has become so involved
with faster bookings right from your handheld it‘s almost scary to see what is happening to the
human connection.
How will hotel applications change moving forward? Professor Mullen started off saying
the new apps are going to greatly change the way hotel will fill up on rooms. This also will
create problems in how to keep rooms. Many people like using applications or online booking
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because of the anonymous factor. When guests change their mind about where they want to stay
they used to have to cancel before a period of time by calling the hotel and speaking to the front
desk. Now a guest can cancel a reservation just as easily as it was to book it in the first place.
Also the organization of current reservations needs to change. If a hotel is looking at moving
forward on being more technology based they need to make sure they have the clientele and the
staff to work with that, says Mullen.
How will businesses create a competitive edge on this trend? Businesses need to be able
to understand that mobile apps are going to be around and continue to keep growing for the hotel
marketing industry. To stay ahead of this trend hotels must adapt to the new apps and keep a
good watch on what other hotels are introducing. Once one hotel in the area has become
comfortable with applications it will be like a ―tipping point‖ the other hotels will act like
dominos, says Mullen. To stay ahead of the trend a business owner needs to realize there is going
to be a new trend before the community figures it out. A business then should be able to adapt to
the new changes to create a more efficient environment that applies to the customer.
How will mobile apps change customer service? There will always be a need for
customer service, says Mullen. The way a business goes about presenting the service is open for
possibilities. Nothing can beat human connection in the hospitality industry. With new gadgets
making tasks faster and easier it is hard to say how many employees are needed on site. The
technology change can be looked at in any business. Mobile apps are being created to give
information about any place thinkable, and this will continue to grow. Soon we will have apps
that will help a customer choose an item on a menu instead of actually looking at the paper copy.
Professor Mullen has worked with the technology advances in the hotel industry to try
and keep current with the community. A business does not necessarily need to create their own
application for their hotel. That will be harder to find. If a hotel just puts their information out to
a current app they will experience a rise in visitors. There is always a new gadget or application
that will help make everyone‘s lives easier. From my personal experience, staying at a hotel that
does not carry Wi-Fi access seems outdated. With this mobile application, hotels need to jump
on this opportunity to create more revenue. Customers will overlook hotels that are not at this
stage yet just because their information will not be stated in the app. The first look at a hotel is
no longer about location. It is about ease of information and how to get the lowest price possible
for the consumer.
In conclusion mobile apps are just starting to emerge to the hospitality industry. The
application can help find the right hotel and what benefits they have to offer for the consumer.
The app is taking the place of a laptop computer to make it more convenient right in your
handheld. Business owners in the hotel industry are starting to see this change and putting their
information out to these applications. We can predict this trend will be popular in the community
for a very long time. It will continue to expand, businesses that refuse to adapt will experience a
great loss in business. Consumers are interested in ease of access and quick confirmations.
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Works Cited
BELOPOTOSKY, DANIELLE. "IN TRANSIT: Expedia Adds App For Hotel Bookings." New
York Times 03 Apr. 2011: 2. Academic Search Complete. Web. 2 Oct. 2012
Dennis, Schaal. "Hotel apps with staying power." USA Today n.d.: MasterFILE Premier. Web. 2
Oct. 2012.
Fitzgerald, Brian. "The Myths About Hotel Mobile Apps And Why You Do Need
One." OROURKE. N.p., 19 Jun 2012. Web. Web. 2 Oct. 2012.
<http://www.orourkehospitality.com/blog/the-myths-about-mobile-apps-and-why-you-
do-need-one
Kharif, Olga. "Starbucks Schools Other Retailers on Mobile Payments." N.p., 23 Aug. 2012.
Web. 2 Oct. 2012. <http://www.businessweek.com/articles/2012-08-23/starbucks-
schools-other-retailers-on-mobile-payments>.
Mullen, Bernie. Personal interview. 2 Oct. 2012.
Rowinski, Dan. "[Infographic] History of Mobile App Stores." ReadWriteWeb. (2012): n. page.
Web. 3 Oct. 2012.
"Three Lessons from the Chipotle IPhone App." - O'Reilly Radar. N.p., n.d. Web. 02 Oct. 2012.
<http://radar.oreilly.com/2010/03/three-lessons-from-the-chipotl.html>.
Thornhill, Ted. "Apps have overtaken the Web in popularity according to the latest statistics
(actually, there's probably an app to tell you that)." Mail Online. (2012): n. page. Web.
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