More than 80 pc of millennials and Gen Z use mobiles to book online trips
Smartphone ownership among millennials and generation Z is nearly universal, with 98 pc owning a device, and more than 80 pc using them to book trips online.
According to a new research from TravelTech show, two-thirds of millennials now rely on travel apps for their bookings. Yet, despite this overwhelming consumer demand, the travel industry is lagging behind in mobile integration.
The report says that fewer than a third or 31 pc of travel operators have adopted mobile booking apps or mobile-first payment tools within their tech stacks.
It adds that the survey was conducted ahead of the TravelTech Show, that is taking place at ExCeL London from June 25-26, which polled travel company representatives to uncover the biggest barriers to mobile integration.
The report says that complexity of implementation was cited as the top challenge by 37 pc, followed by security concerns by 15 pc and high transaction fees by 13 pc. While mobile booking apps are the most popular tool currently integrated into booking and payment platforms, the adoption rate remains low at just 31 pc.
Moreover, other frequently used features include multiple payment gateway options, by 24 pc and virtual credit cards by 17 pc.
According to the report, security and fraud remain growing concerns for the industry. One in ten respondents or 10 pc said they plan to invest in security and fraud prevention technology over the next year, a significant jump from just 4 pc in 2024. This heightened focus comes in the wake of recent high-profile cyberattacks affecting major retailers such as Marks & Spencer, Co-op and Harrods.
The report says that despite the buzz around digital currencies, 83 pc of travel operators have not introduced cryptocurrency payments and have no plans to do so in the next 12 months. The survey also found that the customer journey typically begins with a general online search by 51 pc, followed by social media platforms by 15 pc and metasearch engines by 8 pc.
“Mobile app usage is experiencing phenomenal growth and is expected to be worth USD 212 billion by 2035. As payment ecosystems diversify further in the future there is a real opportunity for travel operators to integrate even better fit solutions for their booking, ecommerce and payment needs. The insights from this year’s survey highlight that there is still work to be done to support the adoption and integration of mobile booking and mobile-first innovations. As the digital-first next generations mature, mobile-first is increasingly becoming the norm for travel operators to drive bookings and revenue, and a focussed onboarding process is fundamental to ensuring any solutions and partners integrate well,” says James Lemon, Stripe Global Industry Lead, Hospitality, Travel & Leisure.
Nimet Sayeed
“The booking and payment technology landscape continues to evolve and expand at pace. Travel operators need to have a solid understanding of internal operational needs and a broad external understanding of customer preferences, the customer journey and the current tools available to best map that journey, if they are to offer the right and, critically, secure, browsing, booking and payment experience for their business and their customers,” says Nimet Sayeed, Event Director, TravelTech Show.
“This year’s TravelTech Show offers a wide range of opportunities for buyers to see first-hand the latest strategies and innovations in reservation systems as well as financial management. This is alongside a host of exhibitors who will be attending to showcase the latest developments in e-commerce and payment systems, mobile and app solutions and online booking tools,” Sayeed adds.
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