Racheal Lee
Oct 3, 2013

Mobile apps an untapped opportunity in the travel industry

ASIA-PACIFIC - Mobile applications remain a largely untapped opportunity within the travel industry in the region despite the high adoption rates of smartphones and tablets.

Mobile apps an untapped opportunity in the travel industry

A regional study by Abacus International, ‘2013 Abacus Corporate Travel Practices Survey’, revealed that 83 per cent of the respondents felt that mobile technology would have a moderate to significant impact on their business, but only a third (33 per cent) had implemented any mobile web or native applications.

However, only four in 10 of those that implemented any applications allow flight and hotel bookings via mobile, and only one in 10 provided the ability to make changes to existing arrangements.

Just one in seven had created a specific app for tablet users.

The study was implemented in April to survey a representative cross-section of corporate travel organisations from across Asia-Pacific on their business practices. It explored the power and influence of the prevailing corporate travel trends seen in the industry.

The survey also noted that 73 per cent of respondents reported higher low-cost carrier (LCC) bookings for corporate travellers, to comply with policies governing the choice of lowest fare.

Almost all (97 per cent) of the companies are increasing policy enforcement, while 73 per cent are also decreasing the number of business trips. More than half (60 per cent) of the companies have implemented policies that have forced travellers to fly economy versus business class.

Almost half (47 per cent) of the travellers are also now encouraged to opt for lower-star accommodation. Some 30 per cent of the respondents are using alternatives to travel such as online conferencing.

Robert Bailey (pictured), CEO of Abacus International, noted that while the low-cost market in Asia has yet to fully embrace corporate travel distribution, some budget carriers are now clearing a path to the corporate accounts, recognising the scale of the opportunity with trade partners, particularly on routes where low-cost competition is beginning to crowd out.

“Despite the challenges, travel agencies are better placed to capitalise on the trends as they affect their businesses,” Bailey added. “The essential technology and content is already available and customised for clients in many different commercial settings.”


Related Articles

Just Published

4 hours ago

Creative Minds: Ariel Chen takes the 'road of no ...

We get to know the group creative director at BBDO Shanghai through her answers to 11 questions. Learn about how she got into advertising, why she ascribes to the 'Underachiever's Manifesto', and the secret talent that helps her stay happy.

4 hours ago

LG Signature takes inspiration from Sydney Dance ...

INSPIRATION STATION: Who wouldn't be awed by these amazing photos of dancers in action? LG's new pact not only supports the company but gives select customers the chance to learn from the best.

6 hours ago

Spikes Asia announces 2022 jury presidents

Fourteen industry leaders from across APAC, evenly split male-female, will help set the region’s benchmark in creative excellence and effectiveness.

7 hours ago

Campaign Creation Stories: How Pocari Sweat and ...

Otsuka Pharmaceuticals and Dentsu wanted to revitalise Pocari Sweat's brand message for young people in a post-pandemic world. See the astonishing, dreamlike film they came up with and hear the inside story of its creation directly from the brand and agency.