Have Phone, Will Travel (Part 2)

 Mobile_ClockworkAs airlines move customers to mobile ticketing, similar opportunities for rail, bus, and transit offer even more economies of scale to the traveling public, if the industry standard as a whole can overcome three distinct hurdles to converting to a mobile standard.

1. A mobile device is not a web site.  Customers don’t need a mobile site to learn about legal terms and conditions, they need “the three Bs” — book, buy, and board.  To an increasingly tech-savvy audience, simplicity sells.

2. A mobile site can’t be a vanity project.  To embrace economies of scale, m-commerce must be fully integrated with existing ticketing and payment systems.  Building a mobile site and simply treating it as a “one-off” misses the point.  The success of Boltbus, a deep-discount carrier in the Northeast which leverages mobile and web ticketing together, allows it to be more competitive in the market with the established legacy carrier, Greyhound.

3. A mobile solution is not independent of an overall strategy.  The additive costs of technology, from scanners to wireless accounts, must be part of the total cost of ownership.  Simply building an m-commerce site will not meet expectations for revenue collection and recognition that are not easily quantified after the fact.  The ability to balance this opportunity with existing operations remains a challenge across many travel providers.

Lastly, the industry must not underestimate the transformative power of GPS in m-commerce.  E-mail opened a significant B2C opportunity, but it pales in comparison to knowing where a customer is at any one time.  This is especially valuable for partnerships in the hotel and tourism sector.  GPS will make today’s web marketing obsolete, and the time to talk about it begins now.

An AT&T commercial shows the parents of a future U.S. president meeting on a train, but only after re-booking the ticket on a mobile phone.  This isn’t science fiction–embracing mobile thinking today can literally change an industry (and a nation) for the next generation.

Take a look at your m-commerce strategy.  How many of your customers are missing the train?

John Reagan is a senior consultant for mobile solutions at Clockwork Technology, LLC, Plano, TX.  Reach him at john.reagan@clockworktechnology.com

 

See the previous post in the series here: Have Phone, Will Travel (Part 1)

 

Have Phone, Will Travel (Part 1)

Over the past decade, the travel industry has been fundamentally changed by technology–a perfect storm that reconfigured the buyer-seller relationship, pulled back the curtain of price elasticity, and consigned the downtown travel agency to an endangered species.

Lightening is about to strike twice.

Not that long ago, an “e-ticket” meant a ride at Disnelyand.  Today, it is the accepted mode of travel for tens of millions of air passengers and an increasing number of bus and rail consumers.  Now, in the midst of a move to mobile, transportation companies must be careful not to repackage the past, but to build to the future.

The expectations of the mobile generation are not to read a web site on a phone, but to embrace app technology and personalization.  Without it, travel sites are missing the forest from the trees.

Too many airline mobile sites can best be called a “screen scrape”, displaying a web-based page on a phone but little else.  These sites struggle to build share and reach.

It’s more than just airlines, however.  The combined traffic of rail, bus, and public transit in the U.S. exceeds 300 million trips a year, much of it relying on paper tickets and labor-intensive processes.  It’s not a question of when mobile will energize this sector, but how.

As airlines move customers to mobile ticketing, similar opportunities for rail, bus, and transit offer even more economies of scale to the traveling public, if the industry as a whole can overcome three distinct hurdles to converting to a mobile standard.

In part 2, we’ll discuss these three hurdles and how Clockwork Technology can help you get a “jump” on your competition.

 

John Reagan is a senior consultant for mobile solutions at Clockwork Technology LLC, Plano, TX.  Reach him at john.reagan@clockworktechnology.com

 

Mobile: Looking or Booking?

Mobile_ClockworkThere are many tracking studies that chart the rise of Android and the iPhone/iPad versus the decline of the Blackberry and Windows Mobile.

In December, about 25% of mobile devices used the iPhone, 25% the iPad, about 21% on a Java-based tablet, 17% on an Android phone, and 3% on a Blackberry.  But that’s only half the story.

According to a December report by the analytics firm RichRelevance, an astounding 92 percent of online purchases through a mobile device came through an Apple product (iPhone, iPad).  The PadGadget web site concluded that “even though more people are using Android phones, it’s not Android owners who partake in mobile online shopping.  iPhone and iPad owners also tend to spend more when shopping on their mobile devices.  On average, iDevice users are spending 19% more than those using Google’s platform for mobile purchases.”

As our clients are investigating mobile options, which one is right for them?  Studies like this suggest that if your audience sees mobile as an informational  tool, a variety of choices are available and should be pursued — one size (or platform) does not fit all, particularly internationally, where Android adoption outpaces Apple.  If your audience sees mobile as a transactional  tool, well, you had better be looking at the Apple world as your first (of many) mobile decisions.

Clockwork is ready to help you with your mobile initiatives.  Contact us today at info@clockworktechnology.com.