December 27, 2007

What's Holding Back Mobile Services In US Travel?

by Sarah Rotman Epps

with Henry H. Harteveldt, Charles S. Golvin, Scott Wright

Executive Summary (This is a document excerpt)

The release of the Apple iPhone in 2007 and the announcement that Motorola, Samsung, LG Electronics, and HTC will build Google-software-powered phones in 2008 has spurred travel eBusiness execs to ask whether their strategies are on track for the mobile travel future. Skepticism is warranted. Although one-third of mobile travelers use data services like text messaging and the mobile Web, barely 10% use these services for travel-related purposes. The obstacles holding back mobile travel are many, including the lack of standardization across platforms and providers, as well as travelers' own price-sensitivity and discomfort using their mobile devices for more than voice. While many travel sellers now have mobile-optimized Web sites for basic lookups and transactions, few have developed entirely new services for the mobile channel. But developing new services may be the key to unlocking mobile's full potential: Travelers are interested in using their phones in ways that travel sellers have not yet exploited, such as checking into or out of a hotel or using phones as boarding passes or hotel room keys.

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