In many ways, the travel industry has always been one of the most innovative verticals within digital. With its long purchase cycles, complex, emotive marketing, and a highly competitive brand landscape, trends with travel have long been a precursor for wider trends within digital. Recently, the hottest topic for travel digital marketers has been mobile. What’s the low down on mobile usage and conversions in the travel industry?
A new study from advertising technology provider Criteo, has revealed a stark rise in the number of travel bookings being completed via mobile devices. In an analysis of more than 300 million bookings, responsible for more than $150 billion in booking value over the first half of 2014, Criteo found bookings from mobile devices grew by 20 percent.
Here’s a rundown of the key findings from Criteo’s Travel Flash Report:
- Mobile bookings up 20 percent in the first two quarters of 2014, far outgrowing the rate of desktop bookings.
- Average booking values on mobile now equal to, or higher than, desktop.
- Average booking values for air travel are now 21 percent higher on mobile devices than on desktops, and 13 percent higher for car rentals.
- The increase in bookings and average booking values combines have resulted in much higher revenue for mobile.
- Seasonal trends and regional variations influence opportunity. The World Cup drove increases in Latin America whilst US travel grew 20 percent in first six months of 2014.
- Seasons only tell part of the story… OTAs (online travel agencies) got most of the first half growth in bookings.
Criteo also singled out three key themes they drew from their findings.
1. Mobile Is Driving Growth And Bookings
An overall 20 percent increase in bookings from mobile devices far eclipsed the growth in desktop bookings at just 2 percent. The data implies that for brands, a mobile strategy is now crucial.
Criteo’s analysis revealed that online booking are growing, and mobile is both driving that growth and increasing its share.
2. Mobile Advertising Is More Valuable For Brands
The growth and volume of bookings via mobile have increased, but crucially average booking values have increased in line with this growth, in some cases even exceeding that of desktop bookings. With the exception of package holidays, average booking values have held consistently on mobile devices for a number of travel products. It’s a strong signal that the channel is becoming more valuable for advertisers.
3. Mobile Bookings Are Highly Seasonal
Different regions exhibit unique seasonal variations in the number of desktop bookings. In the U.S., there’s a peak in the number of travel bookings toward the end of March, likely due to a combination of both spring break and early bookings for the summer season.
In Europe, travel bookings rise for the summer season. Bookings start to rise in February, continuing through to the summer months.
The strong growth in the period in Latin America was due to the FIFA 2014 World Cup.
The findings indicate that marketers need marketing strategies that respond to variations in booking patterns and values. Seasonal variations and events can be a huge opportunity, but only if you’re able to accurately target consumers according to their online behavior.
How Can Travel Brands Make The Most Of Mobile?
Brands can now be fairly confident in the fact that they can reach consumers on mobile devices. Top of the agenda for travel brands should be optimizing their entire mobile experience, and putting the same investment in optimizing mobile conversions as that of desktop.
Channel spend between desktop and mobile advertising should be integrated, with decisional processes as agile as possible to make use of real time and seasonal opportunities.
Mobile advertising now provides an increased conversion prospect for high-value travel products, from package holidays to last-minute flights.
Increasing smartphone and tablet conversions present a massive opportunity for travel brands. It provides a whole new way to reach consumers, and adds value to the market rather than chipping away at the desktop booking share. Brands need to develop “mobile-first” marketing strategies, that also take into account seasonal and regional variations. Winning in the space will require brands to be agile, and to unify their content and user experiences across devices, channels, and platforms.