Iceland named as most popular Valentine's location

Iceland named as most popular Valentine's location

Friday, 12 February 2016 14:30

New resear...

Colonial Malaysia exploration from Saga

Colonial Malaysia exploration from Saga

Friday, 12 February 2016 12:00

Saga’s new Colonial Malaysia escorted tour takes visitors from Kuala Lumpur on a journey to see animal conservation at work, historic tea plantations and the city of Penang.

Turkish Airlines extends weekly Edinburgh-Istanbul flights

Turkish Airlines extends weekly Edinburg…

Friday, 12 February 2016 08:30

Turkish Airlines is to increase the number of weekly flights from Edinburgh Airport to Istanbul to ten flights a week from March 27.

GTOA unveils new brand identity

GTOA unveils new brand identity

Thursday, 11 February 2016 12:00

The Group Travel Organisers Association (GTOA) has marked its 25th anniversary this year with the launch of a new name and logo.

Sofitel London Gatwick teams up with No.1 Lounges

Sofitel London Gatwick teams up with No.…

Thursday, 11 February 2016 08:30

Sofitel London Gatwick has launched new Park, Rest & Fly packages in association with No1 Lounges.

Business Class upgrade from £99 with Wendy Wu

Business Class upgrade from £99 with Wen…

Wednesday, 10 February 2016 12:00

Wendy Wu Tours has partnered with Cathay Pacific to offer a Business Class upgrade from £99 per person (one-way) when booking a fully escorted group tour that departs between March...

New services for families from Aegean

New services for families from Aegean

Wednesday, 10 February 2016 08:30

ΑΕGEAN has unveiled its 'ΑEGEAN For Families' bundle of services, exclusively designed to make family travel by airplane a pleasurable, smooth and entertaining experience for all family members.

Regent Holidays adds Papua New Guinea

Regent Holidays adds Papua New Guinea

Tuesday, 09 February 2016 17:05

Regent Holidays has added Papua New Guinea to its programme for 2016, making it one of a handful of UK operators offering holidays to the destination, and one of an...

Advantage unveils theme of 2016 conference

Advantage unveils theme of 2016 conferen…

Tuesday, 09 February 2016 11:00

The Advantage Travel Partnership has announced the theme of its 2016 Conference which takes place between April 16-20 on MSC Fantasia.

Gulf Air launches ‘Travel Together’

Gulf Air launches ‘Travel Together’

Monday, 08 February 2016 13:00

Gulf Air has launched a 'Travel Together' promotion giving travellers from across the airline’s global network the chance to book and purchase two Falcon Gold (premium) class tickets for the...

Early booking offer from Viking

Early booking offer from Viking

Monday, 08 February 2016 11:00

Viking Cruises is promoting prices from £895 per person on its 2017 river cruises and is offering an early booking deal of £100 per person to spend on board for...

ABTA advises holidaymakers to book early after surge in summer bookings

ABTA advises holidaymakers to book early…

Monday, 08 February 2016 08:30

ABTA – The Travel Association is advising holidaymakers to book their summer holidays early this year after new figures show a 6% year-on-year increase in bookings for overseas summer holidays...

Diamond Rail Holidays boosts Switzerland offering

Diamond Rail Holidays boosts Switzerland…

Friday, 05 February 2016 14:00

Diamond Rail Holidays has expanded its programme of fully escorted rail holidays for 2016 including a wider choice of summer itineraries in Switzerland.

Monarch research reveals the nation's changing holiday habits

Monarch research reveals the nation's ch…

Friday, 05 February 2016 10:00

Pre-schoolers enjoying sunshine breaks in far flung resorts, and silver surfers checking in online – the way the nation holidays has never been so adventurous according to new research from...

Sunvil launches new 2016 Italy & Sicily brochure

Sunvil launches new 2016 Italy & Sic…

Friday, 05 February 2016 08:30

Sunvil has issued its 2016 Italy & Sicily brochure featuring a choice of accommodation including five-star villa hotels, agriturismos (farm properties), apartments, spa resorts and trulli houses (traditional cottages with...

United Airlines to operate longest scheduled flight

United Airlines to operate longest sched…

Thursday, 04 February 2016 12:00

United Airlines has announced that it will introduce daily non-stop flights between San Francisco and Singapore from June 1 (westbound), subject to government approval.

 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.


Conclusion

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. http://news.bbc.co.uk/1/hi/business/8482654.stm
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