The travel booking landscape experienced another quite dramatic week, after shares of TripAdvisor increased by 16% last week – a new high. In comparison to that, Expedia announced that earnings in the second quarter feel short of expectations made by analysts. This indicates challenges regarding consumers adapting to online travel venues. For the tourism industry it is crucial to monitor how travel bookings are developing and how consumers are accessing websites in order to make wise investments to increase bookings and traffic to websites (Investors 2013).
TripAdvisor’s second quarter results showed an increase in monthly visitors by 57% to more than 220 million according to Investors.com. Interestingly, 79 million of the visits actually came from mobile phones and tablets. This is very interesting and shows that mobile traffic is certainly on the rise. In comparison to the figures from 2012, this is a 216% increase and not a one off development in tourism. Mobile phones and tablets generate a large amount of visits to websites and also travel bookings.
INVESTING INTO MOBILE
For many tourism organisations investing into mobile is one of the key budget spending strategies. New mobile apps and technology aimed to boost sales are also very important areas where the tourism industry is investing heavily. However, not every organisation in tourism is experiencing a return on investing in mobile yet. When this will happen is also unclear and very hard to predict for industry analytics.
The tourism industry is fairly stable in 2013 and revenues are predicted to rise by more than 5%. Overall, TripAdvisor and Priceline experience greater growth than Expedia or Orbitz, which actually see declines in visitors and sales. This means, that predictions in general for 2013 are quite positive and mobile bookings are predicted to further rise as mobile is driving traffic to travel websites.
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