travel tech insights

It’s no secret mobile bookings are a major force in today’s travel industry. Travelers - particularly  millennials and digital natives - are more tech savvy and connected than ever before, and they’re using mobile capabilities to research, book, and review travel experiences at unprecedented levels.

According to the travel industry research group Phocuswright, the online travel market in the United States has seen revenues surge to more than $166 billion since 2012 - in addition, roughly 45 percent of domestic travel spending will come from online travel commerce. Both of these staggering statistics are in large part driven by mobile capabilities and how travel companies leverage their mobile platforms to reach customers and engage with travelers.

In fact, these statistics are just two of many that support the mobile narrative unfolding across the travel and tourism industry. The figures behind the rise of mobile booking technology and the impact this development has and will continue to have on how travel companies and customers interact is one of the more interesting and revealing aspects in today’s travel landscape.

In a recent entry, we discussed why younger travelers - millennials in particular - are coming back to travel agents in recent years to help coordinate their travel plans and bookings. Reasons for this return include the first-hand perspective or ‘on-the-ground’ knowledge travel agents have about a given destination, but also the personalized, one-on-one interaction millennials seek in purchasing their products and services.

But travel agents are also leveraging social media platforms as a way to connect with travelers and forge personal relationships with customers that continue long after a traveler has unpacked their bags.

Digital natives. It’s an odd sounding phrase but one that is rapidly gaining momentum in discussions across today’s travel and tourism industry. As the travel business diversifies and more specific segments of the general market appear, digital natives is perhaps the newest demographic in this wave. Slightly younger than the millennial generation - which is most commonly considered to be born between the mid 1980’s and mid 1990’s - digital natives are those travelers born even more recently and who grew up in an age where digital technology always existed.

Ever since they rose to prominence, there has always been misinformation about the role and value of online travel agencies (OTAs). OTAs were initially viewed a short-cut to increased profit margins and growth without really adding value to the travel and tourism industry. However, with the rise in online bookings, social media, and mobile technology, OTAs have established themselves as a benchmark for how online travel companies can and should operate in today’s global travel marketplace.

Yet even as OTAs have solidified their standing in the travel industry, many myths still exist about how they function, the value they provide to customers, and their place as a key driver in the evolution of the modern travel industry. Some of these myths stem from simple misunderstandings about the role of OTAs in the e-commerce sector of the industry, while others are based on trends within the industry that drive popular thought - for example, how in recent years millennials have turned to brick-and-mortar travel agents because they desire a one-on-one, personal connection in making their travel plans.

If there’s one emerging trend in today’s travel industry, it’s that business is exceeding pleasure.

A recent report issued by the U.S. National Travel and Tourism Office found business travel from top overseas markets increased by more than 15 percent in 2015, a growth rate much higher than that of leisure travelers. The report estimates leisure travel from top markets grew at a rate of just 9 percent, a figure that undercut projections from industry analysts.

But it’s not just the U.S. market that experienced an increased of business travelers at the expense of leisure travel during the last year. European countries such as France and Germany also saw sharp increases in the number of business travelers, as did markets further east such as Japan and Australia.