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Survey: High potential for mobile app development in travel industry

T.C. Seow | Oct. 2, 2013
Latest travel insights report by Abacus shows mobile as one of the top five emerging trends in corporate travel practices across the Asia Pacific region.

Despite soaring adoption rates of smartphones and tablets across Asia Pacific, mobile applications remain a largely untapped opportunity within the travel industry here, according to a regional study released by Abacus International today (October 2, 2013). 

Titled "2013 Abacus Corporate Travel Practices Survey", the survey collated the views of influential corporate travel companies and corporate travel agencies in Asia Pacific to identify trends that are expected to impact their businesses over the next two to three years.

Following are the five trends identified by the survey:

Trend #1: Increasing use of smartphones and tablets
The study reveals a disconnect between the perceived importance and actual provision of smartphone and tablet applications. Eighty-three percent of respondents felt mobile technology would have a moderate to significant impact on their business, but only a third (33 percent) of those surveyed had implemented any mobile web or native apps.

Of those who have made apps available, only four in 10 enable flight and hotel bookings via mobile, and only one in 10 provide the ability to make changes to booked arrangements. Just one in seven had created a specific app for tablet users. 

Abacus survey chart
Source: Abacus

Trend #2: Corporate policy tightens across organisations
An overwhelming 97 percent of respondents have received instructions to further tighten corporate travel policies. There is no relaxation of the rules in sight, despite the more favourable economic outlook acknowledged by all. The levers are frequency and class of travel.

Trend #3: Increasing preference for LCCs
Almost three-quarters (73 percent) of respondents are seeing clients adopting budget airlines for more of their corporate travel, mostly as a result of policies governing the choice of lowest fare (77 percent), but also for the alternative flight times (40 percent) and data capture (40 percent). Despite welcoming the move, agencies also find difficulty in making LCC bookings where poor access to content limits their options for travellers.

Trend #4: Corporate booking tool adoption
While the survey showed widespread (73 percent) implementation of corporate booking tools (CBTs) such as Abacus TripPlan, adoption rates reflect a polarising of clients into two groups: those benefitting from the cost savings of self-booking and those preferring to delegate travel management to colleagues or outsource it entirely to the agency.

Yet, 64 percent of respondents agreed that a good portion of travellers preferred dealing with travel management companies and agencies, with 55 percent perceiving business travel itineraries to be too complex a task to undertake themselves.

Trend #5: Secondary expenses for competitive advantage
Secondary expenses such as meals, ground transportation, mobile data roaming are a rising concern for most companies. Tracking and managing secondary expenses is therefore a growing focus with corporate travel managers looking for the means to support their clients with value-add initiatives. According to the survey, 30 percent of agencies now offer electronic expense management systems to their corporate clients to capture payments.

 

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