The Mobile Journey

The mobile phone has transformed itself over the last couple of years into an ever-evolving portable computing device, which is far more functionally versatile than the traditional PC. This has had enormous consequences for the technology industry.

Google said at Mobile World Congress this year that its strategy is now ‘mobile-first’. Microsoft is trying to play catch-up with its mobile operating system, and many other traditional technology stalwarts are also trying to get a slice of the pie.

The travel industry is no different. In the past, technological innovation in travel has focused heavily on the booking experience, and particularly the online booking experience. Mobile services for the travel industry is a market ripe for innovation, and will play the starring role in the creation of what we call the ‘responsive journey’. Today, this means the travel industry is beginning to interact with the traveller via their mobile phone at any point during the entire trip, as opposed to just at key touchpoints. But how is this innovation manifesting itself and where will we see new services and opportunities for revenue generation?

Mobile bookings
One trend which has very much caught on has been real time itinerary-checking apps available via BlackBerry and the iPhone, as well as apps that allow passengers to share travel plans via social networks like Facebook and Linked In.

At the moment, the focus is on tracking flights or trains, getting information about services, checking and sharing itineraries or searching for travel options such as hotels, taxis or public transport. But booking travel through your mobile is the obvious next step for many of the applications which have already been created for mobiles.

Currently, much of the actual booking of travel is still done over the PC internet, or via a voice call on the phone, because entering credit card details into your mobile phone can be a clumsy experience. A simple payment infrastructure hasn’t been created, and many consumers don’t trust the medium just yet. But the ability to make bookings or rebookings opens up new possibilities, not just for leisure travellers, but for business travellers too.
Imagine, for example, that you are on a business trip, and your meeting is extended. When you change the meeting in your diary, it will be automatically synchronised with your travel itinerary, triggering an onscreen display of replacement flights to get you back home. These will have been pre-selected in compliance with company travel policy, and with one click, you can buy the flight, and the cost will automatically be incorporated into your expense report, reducing time spent on boring and time-consuming admin tasks.

Key battleground
There’s a huge opportunity to simplify the booking process, particularly when the traveller is on the move, through mobile technology, and this will be a key battleground for travel industry players in the future. For example, if you were a business traveller, once a diary marker had been sent to you for a meeting in a foreign country, you could automatically look for travel options suitable for that meeting. Software would automatically search for options that were within your company’s travel policy, you could book the flights at the press of a button on your phone, and once again, the costs would automatically be incorporated into your expense report.

Business travel services will include tools for employers to keep in touch with their staff while they’re travelling using the mobile web. Recent events, such as the Icelandic volcanic eruption, highlight the need for businesses to be able to gather information about travellers and, equally, to send information out to travellers working abroad, rapidly. At these times, it’s imperative to be able to access up-to-the-minute flight information and advice in emergencies, and a whole new set of services to meet this demand has already been developed by Amadeus, and will continue to be developed in the future.

There is also the potential to speed up the check in process with mobile boarding passes, whereby the passenger swipes a 2D barcode against a Near Field Communication-enabled receiver, instead of fiddling about with the traditional paper boarding pass.

Some airlines, such as Lufthansa, already offer this service. It’s a really exciting use of mobile technology, which will enhance the self-service element of modern travel. Amadeus has piloted this, and we are ready to respond to answer airlines’ NFC mobile check-in requirements.

While such services simplify travel, there are also potential spin-offs which could act as revenue drivers for travel companies. For example, imagine that you’ve just passed through security, and, while you wait in the terminal lounge, you are sent a list of offers and deals from duty-free and other airport shops, based on whether you’re flying within the EU or long-haul. This would be valuable for travellers, and could act as an additional revenue generator for airports.

Location-based services
Location-based services provide an obvious and compelling opportunity for the travel market, and the means to tailor relevant products, services and communications to consumers via GPS and in some cases, the mobile phone’s camera. If you were on a trip to Barcelona, and were searching for places to eat and drink around the Ramblas, say, you could find your way from bar to restaurant, using peer recommendations through review sites and special offers from the businesses themselves to guide your choices.

However, roaming data costs are a major barrier preventing these services from taking off. These can be prohibitively expensive for most travellers, and many people will not use data services on their mobile phone when they are outside their home country. Until these costs come down, it’s likely that location-based service innovation will focus primarily on the home market or the business travel market.

We are seeing the start of an explosion of mobile innovation in the travel industry. This will create many opportunities for industry stalwarts and for start-ups to find new ways to provide additional services and generate revenue. And it will undoubtedly enrich travellers’ experiences.

François Laburthe is operational research & innovation director at Amadeus