School of Mobile Platinum Partner:

The School of Mobile:

Mobile Technology
in Travel
Report

Vol. 1: The Introduction

 Chapter 1: The Global Mobile Market

EyeforTravel Research
7-9 Fashion Street
London
E1 6PX
UK

For queries contact:

amy@eyefortravel.com
www.eyefortravelresearch.com

EyeforTravel Ltd, March 2009

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 Mobile Technology in Travel - The Introduction

Table of Contents
Table of Contents

Introduction 8
Methodology 12

Chapter1: The Global Mobile Market 13

1.1 Mobile subscriber base 13

1.2 Internet vs. Mobile penetration 15
1.3 Mobile in Developing Nations 17
1.4 The Smartphone Revolution 19
1.4.1 Smartphone Focus: The iPhone 20
1.5 Mobile handsets and operators 23
The US market 23
The UK market 24
The Spanish market 24
The Italian market 25
The German market 25
The French market 26
1.6 Demographic overview of the following mobile markets: 27
The US market
The UK market
The Spanish market
The Italian market
The German market
The French market
1.6.1 Mobile users… male or female? 27
1.6.2 Mobile users… what age are they? 27
1.6.3 Mobile users… what income bracket are they? 28
1.6.4 Mobile users… which data plans have they organised? 31
1.7 Data plans 34
US market: data plans 34
UK market: Data plans 35
German market: Data plans 36
Italian market: Data plans 36
Spanish market: Data plans 37
1.7.1 Mobile data access analysis 39
1.8 Trend of Mobile internet access 43

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 Table of Contents

Table of Contents
Chapter 2: Mobile technology and the travel industry 45

Introduction 45
2.1 How much Mobile activity has there been in the travel industry to date? 47
2.2 What does a Mobile strategy actually mean right now to Travel? 49
2.3 Perceptions towards the integration of Mobile in Travel 54
2.4 Will Mobile change the style of communication with consumers? 55
2.5 How viable is Mobile in Travel considered? 57
2.6 Currently, how far forward is Travel’s understanding of Mobile? 63
2.7 How prepared is the Travel industry to embrace Mobile? 73
2.8 What is next for the industry? 74
2.9 Will Mobile become a mainstream activity in Travel? 75
2.10 How may Mobile work to the advantage of Travel companies? 77

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 Mobile Technology in Travel - The Introduction

List of Figures
List of Figures
Figure 1.1: Global Mobile Subscribers by Continent 13
Figure 1.2: Global Mobile Subscribers CAGR by Region (2004 – 2007) 14
Figure 1.3: Estimated Net Subscriber Additions (Millions, 2007 – 2011F) 14
Figure 1.4: Global Share of Mobile Market (2007F) 15
Figure 1.5: Mobile Penetration by Continent 16
Figure 1.6: PC Internet Penetration by Continent 16
Figure 1.7: Global Mobile Service Revenue - Voice/Data Split (2006 and 2011E) 17
Figure 1.8: PC Internet vs. Mobile Penetration in Major Developing Nations 18
Figure 1.9: The journey to Mobile 19
Figure 1.10: Smartphone Penetration (EU5 = Consolidation of Shown EU Countries) 19
Figure 1.11: iPhone Applications by Category (Jan 2009) 21
Figure 1.12: Smartphone Users by Region and Country (3 Month average ending
November 2008) 22
Figure 1.13: OEM Handset Manufacturer Share by Country (3 month average
ending November 2008) 23
Figure 1.14: US Operator Shares for Total Mobile and Smartphone Users 24
Figure 1.15: UK Operator Shares for Total Mobile and Smartphone Users 24
Figure 1.16: Spanish Operator Shares for Total Mobile and Smartphone Users 25
Figure 1.17: Italian Operator Shares for Total Mobile and Smartphone Users 25
Figure 1.18: German Operator Shares for Total Mobile and Smartphone Users 26
Figure 1.19: French Operator Shares for Total Mobile and Smartphone Users 26
Figure 1.20: Total Mobile vs. Smartphone, Sex by Country (3 months average
ending November 2008) 27
Figure 1.21: Total Mobile vs. Smartphone, Age by Country (3 months average
ending November 2008) 27
Figure 1.22: Proportion of US Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 28
Figure 1.23: Proportion of UK Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 29
Figure 1.24: Proportion of Spanish Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 29
Figure 1.25: Proportion of Italian Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 30
Figure 1.26: Proportion of German Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 30
Figure 1.27: Proportion of French Users by income group for Total Mobile and
Smartphones (3 month average ending November 2008) 31
Figure 1.28: Payment Plan by Total Users & Smartphone Users (3 month average
ending November 2008) 31
Figure 1.29: Percentage of users that have a form of data plan (3 months average
ending November 2008) 32
Figure 1.30: Data Plan Types broken down by Sex by Country (3 months average
ending November 2008) 33

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© EyeforTravel Research. All rights reserved.
 List of Figures

List of Figures
Figure 1.31: Data Plan Types broken down by Age by Country (3 months average
ending November 2008) 34
Figure 1.32: Proportion of Data Package Subscribers by Demographic
(US consumers, 3 month average ending November 2008) 35
Figure 1.33: Proportion of Data Package Subscribers by Demographic
(UK consumers, 3 month average ending November 2008) 36
Figure 1.34: Proportion of Data Package Subscribers by Demographic (German
consumers, 3 month average ending November 2008) 37
Figure 1.35: Proportion of Data Package Subscribers by Demographic (Italian
consumers, 3 month average ending November 2008) 37
Figure 1.36: Proportion of Data Package Subscribers by Demographic (Spanish
consumers, 3 month average ending November 2008) 38
Figure 1.37: Overall Penetration (3 month average ending November 2008) 39
Figure 1.38: Smartphone vs. Non-Smartphone Breakdown by Access Type by
Country (3 months average ending November 2008) 39
Figure 1.39: Access of News/Information by Smart/Non-Smart and Country
(3 months average ending November 2008) 40
Figure 1.40: Browser Access Penetration by Smart/Non-Smart and Country
(3 months average ending November 2008) 41
Figure 1.41: SMS Access of News/Information by Smart/Non-Smart and Country
(3 months average ending November 2008) 42
Figure 1.42: App Access of News/Information by Smart/Non-Smart and Country
(3 months average ending November 2008) 42
Figure 1.43: News and Information access ever in month penetration by country
(3 month average ending in labeled) 43
Figure 1.44: Percentage of Users that accessed Information and/or News nearly
once a day (3 month average ending in labeled month) 44
Figure 2.1: Has your company ever tested the mobile market? 47
Figure 2.2: Has your company ever… (all respondents) 47
Figure 2.3: Has your company ever… (US respondents) 48
Figure 2.4: Has your company ever… (Asian respondents) 48
Figure 2.5: What does ‘a mobile strategy’ mean to you right now? 49
Figure 2.6: Does your company have a website specifically designed for the
mobile web? 52
Figure 2.7: Does your company have a website specifically designed for the
mobile web - split by travel sector 53
Figure 2.8: Does your company have a website specifically designed for the
mobile web - geographical split 54
Figure 2.9: Do you see “mobile” becoming an increasingly important element of
your online/digital strategy? 54
Figure 2.10: Do you believe that “mobile” will change the way you communicate
with your customers? 55
Figure 2.11: Do you believe that “mobile” will change the way you communicate
with your customers? (UK Respondents) 56
Figure 2.12: Do you believe that “mobile” will change the way you communicate
with your customers? (Asian Respondents) 56

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 Mobile Technology in Travel - The Introduction

List of Figures
Figure 2.13: How do you view the viability of mobile devices in the travel &
tourism industry for marketing? 57
Figure 2.14: How do you view the viability of mobile devices in the travel &
tourism industry for consumer internet search for travel/tourism
purposes? 58
Figure 2.15: How do you view the viability of mobile devices in the travel &
tourism industry for customer service? 59
Figure 2.16: How do you view the viability of mobile devices in the travel &
tourism industry for ticketing? 59
Figure 2.17: How do you view the viability of mobile devices in the travel &
tourism industry for CRM? 60
Figure 2.18: How do you view the viability of mobile devices in the travel &
tourism industry for customer acquisition? 61
Figure 2.19: How do you view the viability of mobile devices in the travel &
tourism industry for sales/distribution? 61
Figure 2.20: How do you view the viability of mobile devices in the travel &
tourism industry as a travel payment platform? 62
Figure 2.21: How well do you feel you understand the opportunities when
considering “mobile” as a strategy? 63
Figure 2.22: Breakdown of opportunities identified by the travel industry 64
Figure 2.23: How well do you feel you understand the challenges when
considering “mobile” as a strategy? 65
Figure 2.24: Breakdown of challenges identified by the travel industry 66
Figure 2.25: What is the biggest challenge for travel companies when thinking
about “mobile” strategies? (Suppliers/Intermediaries Comparison) 68
Figure 2.26: What is the biggest challenge for travel companies when thinking
about “mobile” strategies? (Airline Suppliers/Hotel Suppliers
Comparison) 69
Figure 2.27: How well do you feel you understand enabling technologies when
considering “mobile” as a strategy? 69
Figure 2.28: How well do you feel you understand consumer behaviour when
considering “mobile” as a strategy? 70
Figure 2.29: How well do you feel you understand best practice when
considering “mobile” as a strategy? 71
Figure 2.30: How well do you feel you understand the potential ROI when
considering “mobile” as a strategy? 72
Figure 2.31: How prepared do you feel in terms of embracing “mobile” right now? 73
Figure 2.32: When did/will your company invest in “mobile”? 74
Figure 2.33: When did/will your company invest in “mobile”?
(Airline Respondents Only) 74
Figure 2.34: What needs to happen for Mobile to become a mainstream sales &
marketing platform? 75
Figure 2.35: How I see mobile working to the advantage of travel companies… 77

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 Introduction

Introduction
Introduction

It is now widely accepted that the Internet can significantly impact the way we do business.
Given the immense growth of Internet use in recent years, effects on businesses (positive
or negative) have often been unavoidable and new strategies necessary. The Web has
certainly affected the choice of the travel consumer, content has been developed, services
improved, use evolved, business/consumer relationships changed, research and buying
cycles transformed and as a result, online travel markets have developed globally. With
faster, more efficient and measureable methods for companies to communicate directly
(and indirectly) with consumers, e-commerce has revolutionised the way we do business
in Travel.

Efficiency drives most new technological investments and over the years, continuous
development has enabled travel companies to improve the efficiency of the travel
distribution chain. As well as the evolution of the Internet and its impact, in recent years
new systems have been introduced enabling Hotels, Airlines, Car Rental Companies and
other Travel suppliers and intermediaries to work online, improve processes, reduce costs,
work together and ultimately increase the efficiency of their businesses. Without a doubt,
digital strategies in Travel are increasingly fundamental.

So with the dynamic nature of the travel industry and its consumers, what’s next?

The evolution of the mobile phone from a personal communication tool to an information
and social hub may open a range of possibilities for the travel industry. The ability to
research, book and change travel arrangements at all times makes the mobile phone
seem an ideal tool for travellers. The ability to connect with consumers at all times also
seems ideal from the perspective of travel companies. It is argued that the mobile phone
and its recent enhancements may take the efficiency of online travel to a new level and
that Mobile technology may have another immense impact on the consumer buying
cycle, thus the way we do business.

Since mobile telephones were introduced they have reduced in size from unwieldy ‘brick’s’
with one function (to make voice calls) to very portable, highly sophisticated devices
which in most cases act as the hub of our daily lives. The mobile phone has incorporated
itself into that small list of items we must always have with us (as well as keys and wallet).
This suggests something very exciting for the travel industry and many companies are
busy investigating possibilities at all stages of the consumer buying cycle.

But are there real possibilities? What and where could you be looking towards? How
should you go about investing in this new digital strategy? What opportunities and
challenges exist? Who has already invested in Mobile and how? Does the technology
exist to enable what you want to actually do happen?

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 Mobile Technology in Travel - The Introduction

Introduction
The School of Mobile

EyeforTravel Research presents The School of Mobile, an initiative to help educate the
travel and tourism industry about the current and potential role of Mobile in Travel. The
travel industry has recently told EyeforTravel that with a better understanding of mobile
markets, technology and best practice, they’re ready to invest. So we aim to provide some
of the necessary information to help make Mobile a reality in Travel and find out if 2009
really can be the year for Mobile.

What is the School of Mobile?

The School of Mobile begins with a series of 3 reports including invaluable research
findings (phase one) followed by interactive seminars and meetings (phase two).

PHASE ONE

The research & reports:

Vol. 1: Mobile Technology in Travel Report: The Introduction (this report)

Vol. 2: Mobile Technology in Travel Report: The Detail (April 2009)
Vol. 3: Mobile Technology in Travel Report: The Update (May 2009)

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© EyeforTravel Research. All rights reserved.
 Introduction
VOL. 1: MOBILE TECHNOLOGY IN
TRAVEL REPORT - The Introduction
- This report -
This report will look at the growth of
the global mobile market and other
measures critical for the advancement for
Mobile in travel. Plus it includes analysis
of the results of an industry wide survey
conducted in late 2008 to find out what
you, the industry know, need to know and
want to know about Mobile and identifies
the key opportunities and challenges to be
addressed.
VOL. 2: MOBILE TECHNOLOGY IN
TRAVEL REPORT – The Detail
- Part 2 to be published April 2009 -
1. The Mobile travel market
• Who is the Mobile travel market?
Relevant up to the minute statistics.
• How have travel suppliers and
intermediaries embraced mobile
technologies to date?
• Which sectors / companies are buying
Mobile as a strategy?
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© EyeforTravel Research. All rights reserved.
Introduction
• Is Mobile a viabile channel to reach the
travel consumer?
• Marketing, distribution, CRM and
added value service strategies
•
Case studies from the industry’s
leading companies: Is there a business
• case or not?
What is the future of Mobile in Travel?
2. Mobile and the travel consumer
• The impact of Mobile on the travel
buying cycle
• The digital traveller
• Corporate Vs. Leisure
3. Practical guide to investing in
Mobile technologies
• Preparing for the Mobile platform
Developing mobile content
4. Developing mobile strategies and
investing in new technology
Analysis and insight into opportunities
from mobile technology innovations
• Mobile search
• Mobile marketing
• Mobile applications
• Mobile travel distribution
• Mobile customer service
• Mobile ticketing
• Mobile social media
• Mobile and the brand
• Mobile transactions
• Mobile analytics
• Managing multi-channel strategies
• The legalities
5. Planning for the future of mobile
travel
• Operational management for mobile
strategy integration
 Mobile Technology in Travel - The Introduction

VOL. 3: MOBILE TECHNOLOGY IN
TRAVEL REPORT – The Update
Introduction
- Part 3 to be published May 2009 -
New EyeforTravel mobile research findings
launched at the Travel Distribution Summit
Europe 2009. Including brand new consumer
research around online travel and the use of
mobile technology.

PHASE TWO

The practical & interactive seminars (19-20th May, Business Design Centre, London):

In Phase Two of the School of Mobile, we’ll move from information about planning and
understanding mobile in travel on to practical and interactive seminars. Travel suppliers
and intermediaries will have the opportunity to listen to experts in the field of mobile
technology, watch and be part of panel debates around relevant topics to the travel
industry and learn what a mobile strategy could mean to them.

These seminars will take place in a Mobile Zone on 19-20th May in London located
within the Travel Distribution Summit Europe 2009 exhibition area and travel suppliers
and intermediaries are invited to attend free of charge.

EyeforTravel Research will also be presenting their latest mobile research at intervals
throughout the day in the Mobile Zone. Included in this, there’ll be loads of new and
invaluable statistics, trends and industry insight revealed. For the remainder of the day we
look to tackle the key technological issues and opportunities in a more practical style.
The speakers will aim to help travel companies take practical steps forward and generate
ideas about the opportunities available to them. And, there will be exhibition stands there
and meeting places to learn about products and services in more depth.

• To register for your place at the seminars please email amy@eyefortravel.com.

• To recommend a company with a suitable mobile technology solution that you
think would add value to the event please also email amy@eyefortravel.com.

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