January 21, 2009 - Amid predictions--and skepticism--that 2009 will be a big year for the development of mobile travel technologies, hotel companies are rolling out capabilities that facilitate bookings on the go.
"The long expected rise of mobile computing in travel has been greatly over-hyped," according to consultants at Hudson Crossing. "What we believe is different in 2009 is that we expect the advent of two viable mobile computing platforms (the iPhone and BlackBerry Storm) to have a catalytic effect upon the use of mobile travel applications."
Marriott International recently launched a version of its Web site built specifically for "smart phone" mobile devices. Marriott said the site garnered more than $1.25 million in gross revenue during its first 100 days. The company noticed usage spikes on days with inclement weather, when many travelers were stranded at airports without traditional access to the Web. Among bookings completed during those first 100 days, one in three were made for same-day stays and about half were classified as business travel.
Marriott's mobile capabilities are provided by Usablenet, which also services Best Western International, Choice Hotels International Inc., Four Seasons Hotels and Resorts, Hilton Hotels Corp., Omni Hotels, Starwood Hotels & Resorts Inc. and Wyndham Worldwide Corp. The service translates these firms' existing Web sites into mobile interfaces that simplify bookings.
Hilton said its mobile capabilities generated more than $420,000 in revenue last October and $1.4 million during a "typical 100-day period," according to an official. Hyatt Hotels and Resorts and Fairmont Hotels and Resorts plan to launch mobile sites powered by Usablenet during the first quarter, according to a Usablenet official.
Marriott first launched mobile capabilities three years ago, but in order to complete a booking the customer was required to call and confirm. Marriott has since tweaked the site to be able to confirm the booking immediately. The site also offers negotiated corporate rates for business travelers who enter their corporate rate codes, loyalty program account access, directions to the hotel from the airport and access to customer service. Marriott said the company did not track what percentage of mobile bookings used the corporate rate codes.
The need to go mobile stems from the "amount of smart phones used by business travelers," according to Jason Taylor, vice president of mobile products at Usablenet. A PhoCusWright poll of more than 1,000 business travelers last summer found that 71 percent carried a smart phone. Research by The Kelsey Group suggests that about 19 percent of the U.S. population use such devices.
PhoCusWright projects that by 2010, U.S. online bookings for the hotel segment will generate just under $20 billion and, of that amount, $77 million will stem from mobile bookings, according to senior corporate and technology analyst Norm Rose, who is also president of Travel Tech Consulting.
"[Mobile technology] is not just another touch point; it is an opportunity through a new platform to offer new services that you haven't even thought of before. Really, it is the most personalized platform that you can imagine," said Rose.
"What many of these mobile applications have in common is that they take advantage of the convergence of mobile computing usability with easy-to-access information or travel content over a 3G network that will make the act of traveling itself easier and more enjoyable," according to Hudson Crossing. "Look for more applications to be developed and discussed in 2009, even while fewer people will travel and are willing to spend less to do so."
At the moment, most hotel sites are used for such pre-stay functionalities as booking the room and paying online. However, Taylor said some hotel companies are broadening their mobile capabilities to allow customers to check in, book spas or make restaurant reservations.
Given several choices of preferred mobile travel functionalities, 38 percent of respondents to the PhoCusWright survey ranked mobile check in the top service a hotel, airline or railway could offer, followed by flight information availability and booking. A minority ranked hotel availability and booking as one of their three most desired features.
Along with hotel companies, AirTran Airways, American Airlines, Amtrak, Dollar Rent A Car, Hertz Car Rental, JetBlue Airways, Northwest Airlines and US Airways use the Usablenet platform.
