Viking announces Christmas and New Year Sailings

Viking announces Christmas and New Year Sailings

Friday, 29 July 2016 13:36

For those ...

Jordan Tourism Board launches ‘ExtraJORDANary’ campaign

Jordan Tourism Board launches ‘ExtraJORD…

Friday, 29 July 2016 11:48

The Jordan Tourism Board (JTB) has launched a new marketing campaign, investing in excess of half a million pounds. Dubbed the ‘ExtraJORDANary’ campaign, it aims to continue to support UK...

Gatwick marks busiest day with 2016’s need-to-know holiday phrases

Gatwick marks busiest day with 2016’s ne…

Friday, 29 July 2016 08:57

Today is set to be Gatwick Airport’s busiest day of departures, with 85,000 passengers due to take flight. In aid of this and to prepare holidaymakers for their trip, the...

Philippines completes King’s Cross Station takeover

Philippines completes King’s Cross Stati…

Thursday, 28 July 2016 11:00

As part of the Visit the Philippines Again 2016 campaign the Philippine Department of Tourism has just completed the second stage of its station domination series at King’s Cross station.

MARITIM completes refurbishment of Hotel Stuttgart

MARITIM completes refurbishment of Hotel…

Thursday, 28 July 2016 09:08

MARITIM Hotels has come to the end of a major refurbishment programme on its property in Stuttgart.

MSC Cruises design poster-perfect travel guides

MSC Cruises design poster-perfect travel…

Wednesday, 27 July 2016 13:00

MSC Cruises have depicted five of their key port destinations in illustrated posters to help customers learn more about each location and its offering.

Sandals and Beaches launch summer sale

Sandals and Beaches launch summer sale

Wednesday, 27 July 2016 11:00

Sandals Resorts International has launched its sale with savings of up to 55% on Luxury Included (all-inclusive) holidays to Sandals and Beaches Resorts in the Caribbean.

Kirker Holidays offers extra nights for summer city breaks

Kirker Holidays offers extra nights for …

Wednesday, 27 July 2016 08:00

Celebrating its 30th anniversary this year, Kirker Holidays is promoting its three nights for the price of two at the five-star Hotel De Rome in Berlin.

Go catch more Pokémon in LA

Go catch more Pokémon in LA

Tuesday, 26 July 2016 13:00

With Pokémon Go mania gripping the world, Discover L.A. has revealed the best locations around the city for Pokémon catchers – from bars offering specials to rental bikes equipped with...

Neilson launches its first booking site for agents

Neilson launches its first booking site …

Tuesday, 26 July 2016 11:00

Neilson has launched a dedicated online booking site providing UK travel agents with the tools to promote and sell Neilson holidays.

Festive short breaks with Funway Holidays

Festive short breaks with Funway Holiday…

Tuesday, 26 July 2016 09:10

Funway Holidays has put together a selection of special pre-Christmas themed short break holidays.

Saga embarks on five country trans-African adventure

Saga embarks on five country trans-Afric…

Monday, 25 July 2016 14:44

Saga Holidays has put together a 26-night adventure combining Kenya, Botswana, Zimbabwe, South Africa and Ethiopia in a single ‘Ultimate Africa’ trip.

Santiburi celebrates £20 million renovation with new family package

Santiburi celebrates £20 million renovat…

Monday, 25 July 2016 11:00

Celebrating its 25th anniversary and re-launch after a £20 million renovation, Koh Samui's Santiburi Beach Resort & Spa has launched a new family package.

My Emirates Pass lands in Dubai

My Emirates Pass lands in Dubai

Friday, 22 July 2016 11:00

Emirates Airline passengers can experience more of Dubai this summer with discounts and exclusive offers available across the city with the ‘My Emirates Pass’, launched jointly with Department of Economic...

New Year, New You with HF Holidays’ 2017 Mindful Retreats

New Year, New You with HF Holidays’ 2017…

Friday, 22 July 2016 08:00

HF Holidays has unveiled its new selection of breaks to see in the 2017 New Year in style.

Cruise & Maritime Voyages extends BOGOF deal

Cruise & Maritime Voyages extends BO…

Thursday, 21 July 2016 14:00

Cruise & Maritime Voyages (CMV) has announced an extension of its current ‘Buy One Get One Free’ deal until the end of July, as well as a new promotion.

 Mobilising the Travel Industry

From the staycation to the reduction in business budgets, the travel industry’s revenues have plummeted over the past two years. And while the Internet has enabled organisations to streamline some processes to reduce cost and provide rapid access to information, there are still huge untapped opportunities to increase revenues, drive down customer service costs and streamline booking and check-in processes.

Unprecedented Challenge

Last year saw the biggest decline in air passenger traffic in the post-war era, according to the International Air Transport Association (Iata). Passenger traffic dropped by 3.5% from a year earlier, while freight traffic fell 10.1% as the downturn hit demand. The cost has been huge: Iata has estimated that airlines collectively lost $11bn (£6.8bn) last year, and stand to lose a further $5.6bn this year.*

The industry believes that the worst has passed. However, adjusting to 2.5 to 3.5 years of lost growth means that airlines face another tough year, and must focus on matching capacity carefully to demand and controlling costs.

The falling airline revenue has, of course, been matched by a decline in income for many sectors of the travel industry, from ferries to hotels, parking services to travel companies. And while some UK venues reported an upturn in 2009 as a result of the ‘staycation’ trend, a second successive poor summer far from boosted the credentials of the UK tourist industry. For every part of the industry, price is key but engendering customer loyalty remains a significant challenge.


Mobile Drive

So how is the travel industry going to address the challenges posed by this extraordinary decline in revenue? Certainly the shift towards online booking and online check-in has enabled the airline and hotel sectors to drive down costs. However, travel companies must now look beyond the Internet to attain further benefits in streamlined operations and improved customer service.

With growing numbers of users now opting for the mobile as the primary way of accessing the Internet, mobile marketing has become a key component of the sales process. Indeed, one major Japanese airline already claims to generate 5% of its sales via mobiles.

In a recent survey by EyeforTravel, 30% of travel companies reported investing in “mobile” for the first time in 2009 and 75% of those maintained that mobile will become an increasingly important element of their digital strategies. Notably, the overwhelming majority of companies surveyed view SMS as a more effective marketing and communications tool than email.

In fact, 80% of travel companies now use SMS to communicate with customers; and 60% are also using SMS internally to make business processes more efficient. But this approach is merely scratching the surface and will do little to address the cost reduction and customer loyalty issues now facing this marketplace.

Prioritising Activity

Mobile technology offers significant additional opportunities to drive down costs and improve customer loyalty. The challenge is prioritising activity and ensuring that service quality matches the demands of an increasingly savvy mobile user population. Right now, there is a real opportunity to streamline the post sales process, leveraging proven, robust mobile solutions to deliver value added customer services that make the travel process smoother for the customer, but also less expensive to deliver for the industry.

Certainly the demand is there, with users actively seeking the convenience of information to their mobile. Globally, the number of subscribers using mobile Internet services is predicted to rise from 577million currently, to top 1.7billion by 2013 and in the recent survey by PhoCusWright, 64% of respondents were keen to use their phone to access directions, over 50% to receive flight status alerts and over 30% thought receiving special offers on their phone would be a bonus.

By integrating mobile solutions with core booking systems, travel companies can now deliver booking confirmation and information to customers via SMS, as well as day of travel reminders. The process is automated and significantly reduces the cost of customer communication. In addition, this information can be supported by travel service updates, location based direction services, including maps, and local weather/travel information – all services that can be delivered at a low cost to provide significant customer value.

Additional Services

This provision of valuable and timely information also enables the company to up sell using promotional and last minute offers for both its own services and ancillary services including insurance, hotels, car hire, parking and airport transportation. This enables organisations to cost effectively tap in to a new revenue stream whilst also extending the customer perception of the trusted brand.

Companies can also reduce the cost of managing problems. By notifying passengers via SMS of cancellations and delays, itinerary changes and updates, the business can significantly reduce customer service costs. Even when passengers are en route, changes such as gate reallocation or simple departure reminders can both improve the customer experience and reduce expensive delays caused by lost or misplaced passengers.

Looking ahead, the mobile device offers travel companies amazing opportunities to drive out cost. Mobiles have the potential to hold boarding passes, baggage tracking information and payment data making travel truly paperless and location independent. There is also the future possibility that the mobile could be used to store visa and biometric information. What’s more, improvements in network speeds and the advent of 3.5 G and 4G will make accessing and distributing this information instantly from the mobile device a reality.


The Internet may have changed the travel industry beyond recognition, but the widespread adoption of mobile technologies will undoubtedly deliver another fundamental step forward to drive down costs and improve the customer experience. As the industry faces its toughest financial challenge in decades, those organisations that embrace mobile technology will be best placed to improve brand interaction, drive down customer service costs and fundamentally improve the entire travel process from booking to arrival and beyond.

* Source: bbc.
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