Tourism industry survey notes rise of mobile apps, decline of online travel agents
by March 8, 2016 11:19 am 255 views
The rise of mobile apps and the fall of online travel agents (OTAs) were key findings in a new study from hospitality marketing agency Fuel.
The company surveyed 2,900 respondents as part of their annual study. All participants met the criteria of planning and conducting one leisure vacation in the past 12 months. Results were then measured against responses from previous years to determine shifts and trends in consumer behavior.
The 2016 survey revealed that distrust in OTA’s has increased 50% over the past year and that consumers are visiting fewer websites while planning a leisure vacation, with 90% of leisure travelers visiting 10 websites or fewer during an average research period of 26 days, thus moving closer to a direct relationship with hotels in their booking decisions.
This finding runs contrary to data released from Google that claims the number of sites visited before booking a leisure vacation is 22.
“Each year we conduct this survey to better understand the behavior of leisure travelers when researching and booking a hotel,” said Stuart Butler, Fuel’s chief operating officer. “As the go-to digital agency for the hotel industry it is our responsibility to have hard data that our clients and potential clients can rely on and use to help put more heads in beds.”
With more than 85% of travelers owning and using a smartphone, Butler added, “hoteliers need to focus on the benefits of this direct access to customers.”
He continued: “The results overwhelmingly suggest that, not only is it time to invest in a mobile app, but it’s also time to use your hotel-branded mobile app to generate new revenue streams and increase RevPAR (Revenue Per Available Room).”
To back this up, Butler points to a finding that 52.2% of customers said they would use a mobile app to purchase additional services. The biggest opportunity the study showed when focusing on mobile apps is that 61.4% customers would be willing to spend more money for added value such as late checkouts and room upgrades via a mobile app. Mobile apps also better facilitate onsite revenue generating amenities like restaurants or spas.
Fuel has made the complete findings of the study available through their website.