Mobile in Hospitality : Trends
     and Opportunities
                       April 2013

      Siddharth Dabhade – Head of Industry - Travel
“We see the emergence of the post-PC world and we are
embracing it as an opportunity to reach our audience on
  whatever piece of glass they choose to use, with an
       experience appropriate for each device”
            Director of BBC Future Media, Ralph Rivera
Agenda
1   Mobile is here and now.
2   Consumer behaviour and hospitality.
3   What is the world doing?
4   The way ahead.
Mobile is Here & Now
Not just metros, small towns too!
98%
            Reach amongst 15-34 SEC
              AB. Highest across all
                     medium
                                           72mins
                                           Time spent on smartphone >
                                                  other media




Source : 3D TGI 2011 / Nielsen Informate    Source : IRS 2012 AI Urban Q1 (All SECs 12 years+) & Nielsen informate insights
Insights
Expected to reach 310M+ by 2015

     400


     350
                                                                                                           38
     300


     250                                                                                                   120


     200


     150

                                                                                                    53
     100                                                                                                   190
                                                                  63                                44
      50

                                 40                               26                                40
        0                                                         11
                                2005                              2010                              2012   2015

                                                                   Mobile   PC + Mobile   PC only




Source: Google Internal, Google-Mckinsey Study, market analysis
Mobile evolution: Smartphones are transforming consumer behavior
                                                                       Video                                                                Social
     Highest in India across the

                                                                                       76
                                                                                                                              73
     Mobile Video & Social




                                                                                                       66

                                                       49   52
                                                                                                              47                              46              48
                                                                                                                                                        43              40
                                                                                                                        29
                                               26 25                   26
     Media usage:




                                                                                                                   24
                                                                  21                         19
                                                                               12 12              14                                13 14          11              11
     globe




                                                China            India           UK               US           China               India           UK              US
                                                                                        High Usage          Med Usage                Low Usage
     Mobile Usage / Activities




                                           Search                                                                                                            98%
                                        App Store                                                                                                            98%
                                             Chat                                                                                                  90%
                                 Social Networking                                                                                                 89%
                                         Webmail                                                                                                 88%
                                  Video Streaming                                                                            70%
                                            News                                                              58%
                                             BFSI                                                  43%
                                         Shopping                                                 41%


Source: Ipsos India Mobile Consumer Insights study; Nielsen Mobile Informatics 2012
1/5th of Hotel queries come from a mobile device now
                                                                                                                       2012
                                                                 Desktop   All Mobile                                  Desktop: 18%
    180                                                                                                                All Mobile: 61%

    160
                 2011
                 Desktop: 27%
                 All Mobile: 133%
    140



    120

                                                                                                                         80%
    100



     80



     60        87%

     40



     20
                                                                                                                         20%
               13%
      0
      Jan-11     Mar-11   May-11    Jul-11    Sep-11    Nov-11         Jan-12      Mar-12   May-12   Jul-12   Sep-12   Nov-12



Sources: Google Internal Data, January 2013; Hotels & Accommodation Category
0
                                                                                          200
                                                                                                400
                                                                                                      600
                                                                                                            800
                                                                                                                  1000
                                                                                                                         1200
                                                                            Jan-10

                                                                            Feb-10

                                                                            Mar-10

                                                                            Apr-10

                                                                            May-10

                                                                            Jun-10

                                                                             Jul-10

                                                                            Aug-10

                                                                            Sep-10

                                                                            Oct-10

                                                                            Nov-10

                                                                            Dec-10

                                                                            Jan-11

                                                                            Feb-11

                                                                            Mar-11
                                                                                                                                All Mobile




                                                                            Apr-11

                                                                            May-11
                                                                                                                                HED




                                                                            Jun-11




Sources: Google Internal Data, January 2013; Holidays & Vacation Category
                                                                             Jul-11

                                                                            Aug-11
                                                                                                                                Tablet




                                                                            Sep-11

                                                                            Oct-11

                                                                            Nov-11
                                                                                                                                WAP




                                                                            Dec-11

                                                                            Jan-12

                                                                            Feb-12

                                                                            Mar-12

                                                                            Apr-12

                                                                            May-12

                                                                            Jun-12

                                                                             Jul-12

                                                                            Aug-12
                                                                                                                                             HED has overtaken WAP in Hotels queries




                                                                            Sep-12

                                                                            Oct-12

                                                                            Nov-12

                                                                            Dec-12
Trend of Hotel Specific Queries




                                                                                         HED
                                                                                         TABLET




    2011 Jan     2011 Jun     2011 Dec      2012 Jan      2012 Jun     2012 Dec


•   HED volumes on accommodation related queries have grown by  410% YoY (Dec’11 to Dec’12).
•   Tablet volumes on accommodation related queries have grown by 260% YoY (Dec’11 to Dec’12).
Consumer Behavior
US mobile travel bookings to top US$ 25B by 2014
  By 2014, Mobile revenue will be 18% of the online market and 8% of the total travel market
  in the US

                                                 Mobile Bookings (US $B)                        Mobile as share of Online Market
                                                 Mobile as share of Total Travel Market
                                        $30                                                                                              20.0%
                             Billions




                                                                                                                             18%
                                                                                                                                         18.0%
                                        $25
                                                                                                                                         16.0%

                                                                                                                                         14.0%
                                        $20                                                                13%
                                                                                                                                         12.0%

                                        $15                                                                                              10.0%
                                                                                                                             8%
                                                                                                                                         8.0%
                                                                                        6%
                                        $10                                                                5%                            6.0%

                                                                               2%                                                        4.0%
                                         $5                                             3%
                                                        0.4%                     1%                                                      2.0%
                                                     0.2%
                                              $0.4                              $2.7            $7.9               $17.0
                                         $0                                                                                         $25.8 0.0%
                                                     2010               2011           2012 P             2013 P           2014 P




Source: PhoCusWright’s US Mobile Travel Report: Market Sizing and Consumer Trends.
Travelers are embracing booking on mobile
  Purchasing/booking via mobile phone, by medium


                                      Book/purchase travel
                                                                                                              Purchase extra services
                                      products such as hotel
                                                                                                               from travel providers
                                         rooms or flights

                                                                                                            12%                                14%
                                    20%                                 22%
                                                                                                             6%                                 7%
                                     9%
                                                                        12%
                                                                                                                                                                           Used mobile websites

                                                                                                                                                                           Used mobile apps
                                                                                                            83%                                80%
                                    74%                                 70%
                                                                                                                                                                           Have not done online via mobile
                                                                                                                                                                           phone




                                   2011                                2012                               2011                                2012




Source: PhoCusWright’s US Mobile Travel Report: Market Sizing and Consumer Trends. Base: Mobile web users.
(2012: N=1,329; 2011: N=1,125.) Question: Please indicate which of the following travel-related activities you have done online using
your mobile phone in the past 12 months and through which medium. Note: does not add up to 100% because some people reported using both mobile apps and mobile websites.
Mobile helps consumers book last minute




% of mobile of reservations
made within a day of arrival
by OTA:
     –   Priceline: 82%
     –   Hotwire: 80%
     –   Orbitz: 64%
     –   Expedia: 60%




source: Forbes, October 2011; Nielsen, April 2011; Flurry, June 2011
mobile app users book last-minute, local and
                shorter stays at quality hotels

                                                    Mobile           Non-Mobile
                                                   App Users           Users
    Booked hotel within 1 day of arrival             82%                  45%
                            Booked 1-night stays      79%                 62%
              Chose hotels 3-star or higher           82%                 75%

                                                    58%      of mobile app customers
                                                    were within 20 miles of hotel at
                                                    time of booking

source: Priceline, September 2010
Consumers leverage a multi screen world

           Sequential Usage
        Moving from one device to
        another at different times
             to accomplish a task




                                     Simultaneous Usage
                            Using more than one device at the same time
                             for either a related or an unrelated activity




         Multi-tasking - Unrelated activity           Complementary Usage - Related activity


17
Sequential screening is common &
mostly completed within a day




     90%
     Use multiple
     screens
     sequentially to
     accomplish a task
     over time
               98% move between devices that same day


     Base: Total Respondents (1611). Q. How often do you start an activity (i.e. emailing, researching, or shopping) on one device, but continue it or finish doing it at a later
18   time on a different device? Base: Have Started Activity on One Device & Continued on Another (1455). Q. On average, how much time passes between the time you
     begin an activity on one device and continue the activity on another device?
Top activities performed when
sequentially screening between devices

                 81%                 72%                  67%                63%                 46%                  43%                 43%




               Browsing             Social              Shopping            Searching            Managing              Planning         Watching an
              the internet        Networking             Online              for info            Finances                a Trip         Online Video



      Base: Have Started Activity on One Device & Continued on Another (1455). Q. For the activities listed below, think about the last time you started each activity on
19    one device and then continued or finished the same activity on another device. Please select which device you started and then continued on. If you have not done
      this, select “I have not done this”.
Smartphones are the most common
 starting place for online activities


     Started on a
     smartphone                  65%                63%                65%                47%                59%               66%                 56%


                                Searching           Browsing           Shopping           Planning          Managing            Social          Watching an
                                 for info          The internet         Online             a Trip           Finances          Networking        Online Video

       Continued
       on a PC                   60%                58%                61%                45%                56%               58%                 48%

       Continued
         on a                      4%                 5%                 4%                 3%                3%                 8%                 8%
        Tablet




      Base: Have Started Activity on One Device & Continued on Another (1455); Searching (923), Browsing (1172), Shopping (969), Planning a Trip (627), Finances (675),
20    Social (1041), Watching a Video (623). Q. For the activities listed below, think about the last time you started each activity on one device and then continued or
      finished the same activity on another device. Please select which device you started and then continued on. If you have not done this, select “I have not done
Tablets are most often a starting point
 for shopping and trip planning


     Started on                     7%                  7%               11%                 15%                  7%                4%                 11%
     A tablet



                                 Searching           Browsing            Shopping           Planning           Managing            Social           Watching an
                                  for info          The internet          Online             a Trip            Finances          Networking         Online Video
      Continued on
            a
      smartphone                    1%                 1%                 0%                  1%                 1%                 2%                   2%

       Continued
       on a PC                      6%                 6%                10%                14%                  6%                  3%                  9%



      Base: Have Started Activity on One Device & Continued on Another (1455); Searching (923), Browsing (1172), Shopping (969), Planning a Trip (627), Finances
22    (675), Social (1041), Watching a Video (623). Q. For the activities listed below, think about the last time you started each activity on one device and then continued
      or finished the same activity on another device. Please select which device you started and then continued on. If you have not done this, select “I have not done
Smartphones are the most frequent
 companion devices during simultaneous usage


                                      of the time when we’re                                                                  of the time when we’re

          57%                         using a smartphone, we’re
                                      using another device                                        77%                         using a TV, we’re using
                                                                                                                              another device

               28%                              29%                                                  49%                              34%
               with a                           with television                                      with a                           with PC/Laptop
               PC/Laptop                                                                             smartphone




           75%                          of the time when we’re
                                        using a tablet, we’re using
                                        another device
                                                                                                  67%                         of the time when we’re
                                                                                                                              using a PC, we’re using
                                                                                                                              another device


               35%                              44%                                                  45%                              32%
               with a                           with television                                      with a                           with television
               smartphone                                                                            smartphone




     Base: All Device Interactions – Smartphone (6057); TV (3592); Tablet (542); PC/Laptop (3817). Q. Which of the following did you use? Q. What else did
25   you use at the same time?
What is the World
Doing?
Google Hotel Finder
Accor case – drive ranking




                             2
My
on-line
  CA                                   Airport


                                                               Lounge
                                                             Check destination
          Planning
                                                               information

                                Send arrival
                               notifications to
                                   Push notification of
                              family, chauffeur,
                                       boarding time
                            local company hosts
                                      dependingyour movie from the
                                           Start on the
           Return Information on distance pick up where In-flight
                 Video hangouts
                             Notificationlounge and
                                            of
                  on the flights
                      localShow important your in the Message from
                             trains and
                               Taxi Preview
                         WelcomeArrivalyou left off
                                                 Drink order plane
                    Navigationupon to luggage your a notification to
                    estimated time
                     message for destination with
                        No Check to waitthe
                            need with
                               information
                         Notification of                       the captain
                       destinationAutomatically from Send
                                    status
                       arrival at the Google Earth
                     yourcarousel and estimated
                            destination
                              in line
                              automatically Online
                          maps
                          airport checked-in smartphone automatically
                                        Arrival
                                                        family
                          time for luggage pick up
                                             Check-in
The way forward
Mobile for hospitality

1 Clearly a high growth distribution platform

2 Location, personal, voice, mobile!

3 A personalised engagement platform.

4 Grow sources of revenue.

5 India - mobile first!
Thank You!

Google: Mobile in hospitality - Trends and opportuinities

  • 1.
    Mobile in Hospitality: Trends and Opportunities April 2013 Siddharth Dabhade – Head of Industry - Travel
  • 2.
    “We see theemergence of the post-PC world and we are embracing it as an opportunity to reach our audience on whatever piece of glass they choose to use, with an experience appropriate for each device” Director of BBC Future Media, Ralph Rivera
  • 3.
    Agenda 1 Mobile is here and now. 2 Consumer behaviour and hospitality. 3 What is the world doing? 4 The way ahead.
  • 4.
  • 5.
    Not just metros,small towns too!
  • 6.
    98% Reach amongst 15-34 SEC AB. Highest across all medium 72mins Time spent on smartphone > other media Source : 3D TGI 2011 / Nielsen Informate Source : IRS 2012 AI Urban Q1 (All SECs 12 years+) & Nielsen informate insights Insights
  • 7.
    Expected to reach310M+ by 2015 400 350 38 300 250 120 200 150 53 100 190 63 44 50 40 26 40 0 11 2005 2010 2012 2015 Mobile PC + Mobile PC only Source: Google Internal, Google-Mckinsey Study, market analysis
  • 8.
    Mobile evolution: Smartphonesare transforming consumer behavior Video Social Highest in India across the 76 73 Mobile Video & Social 66 49 52 47 46 48 43 40 29 26 25 26 Media usage: 24 21 19 12 12 14 13 14 11 11 globe China India UK US China India UK US High Usage Med Usage Low Usage Mobile Usage / Activities Search 98% App Store 98% Chat 90% Social Networking 89% Webmail 88% Video Streaming 70% News 58% BFSI 43% Shopping 41% Source: Ipsos India Mobile Consumer Insights study; Nielsen Mobile Informatics 2012
  • 9.
    1/5th of Hotelqueries come from a mobile device now 2012 Desktop All Mobile Desktop: 18% 180 All Mobile: 61% 160 2011 Desktop: 27% All Mobile: 133% 140 120 80% 100 80 60 87% 40 20 20% 13% 0 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Sources: Google Internal Data, January 2013; Hotels & Accommodation Category
  • 10.
    0 200 400 600 800 1000 1200 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 All Mobile Apr-11 May-11 HED Jun-11 Sources: Google Internal Data, January 2013; Holidays & Vacation Category Jul-11 Aug-11 Tablet Sep-11 Oct-11 Nov-11 WAP Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 HED has overtaken WAP in Hotels queries Sep-12 Oct-12 Nov-12 Dec-12
  • 11.
    Trend of HotelSpecific Queries HED TABLET 2011 Jan 2011 Jun 2011 Dec 2012 Jan 2012 Jun 2012 Dec • HED volumes on accommodation related queries have grown by 410% YoY (Dec’11 to Dec’12). • Tablet volumes on accommodation related queries have grown by 260% YoY (Dec’11 to Dec’12).
  • 12.
  • 13.
    US mobile travelbookings to top US$ 25B by 2014 By 2014, Mobile revenue will be 18% of the online market and 8% of the total travel market in the US Mobile Bookings (US $B) Mobile as share of Online Market Mobile as share of Total Travel Market $30 20.0% Billions 18% 18.0% $25 16.0% 14.0% $20 13% 12.0% $15 10.0% 8% 8.0% 6% $10 5% 6.0% 2% 4.0% $5 3% 0.4% 1% 2.0% 0.2% $0.4 $2.7 $7.9 $17.0 $0 $25.8 0.0% 2010 2011 2012 P 2013 P 2014 P Source: PhoCusWright’s US Mobile Travel Report: Market Sizing and Consumer Trends.
  • 14.
    Travelers are embracingbooking on mobile Purchasing/booking via mobile phone, by medium Book/purchase travel Purchase extra services products such as hotel from travel providers rooms or flights 12% 14% 20% 22% 6% 7% 9% 12% Used mobile websites Used mobile apps 83% 80% 74% 70% Have not done online via mobile phone 2011 2012 2011 2012 Source: PhoCusWright’s US Mobile Travel Report: Market Sizing and Consumer Trends. Base: Mobile web users. (2012: N=1,329; 2011: N=1,125.) Question: Please indicate which of the following travel-related activities you have done online using your mobile phone in the past 12 months and through which medium. Note: does not add up to 100% because some people reported using both mobile apps and mobile websites.
  • 15.
    Mobile helps consumersbook last minute % of mobile of reservations made within a day of arrival by OTA: – Priceline: 82% – Hotwire: 80% – Orbitz: 64% – Expedia: 60% source: Forbes, October 2011; Nielsen, April 2011; Flurry, June 2011
  • 16.
    mobile app usersbook last-minute, local and shorter stays at quality hotels Mobile Non-Mobile App Users Users Booked hotel within 1 day of arrival 82% 45% Booked 1-night stays 79% 62% Chose hotels 3-star or higher 82% 75% 58% of mobile app customers were within 20 miles of hotel at time of booking source: Priceline, September 2010
  • 17.
    Consumers leverage amulti screen world Sequential Usage Moving from one device to another at different times to accomplish a task Simultaneous Usage Using more than one device at the same time for either a related or an unrelated activity Multi-tasking - Unrelated activity Complementary Usage - Related activity 17
  • 18.
    Sequential screening iscommon & mostly completed within a day 90% Use multiple screens sequentially to accomplish a task over time 98% move between devices that same day Base: Total Respondents (1611). Q. How often do you start an activity (i.e. emailing, researching, or shopping) on one device, but continue it or finish doing it at a later 18 time on a different device? Base: Have Started Activity on One Device & Continued on Another (1455). Q. On average, how much time passes between the time you begin an activity on one device and continue the activity on another device?
  • 19.
    Top activities performedwhen sequentially screening between devices 81% 72% 67% 63% 46% 43% 43% Browsing Social Shopping Searching Managing Planning Watching an the internet Networking Online for info Finances a Trip Online Video Base: Have Started Activity on One Device & Continued on Another (1455). Q. For the activities listed below, think about the last time you started each activity on 19 one device and then continued or finished the same activity on another device. Please select which device you started and then continued on. If you have not done this, select “I have not done this”.
  • 20.
    Smartphones are themost common starting place for online activities Started on a smartphone 65% 63% 65% 47% 59% 66% 56% Searching Browsing Shopping Planning Managing Social Watching an for info The internet Online a Trip Finances Networking Online Video Continued on a PC 60% 58% 61% 45% 56% 58% 48% Continued on a 4% 5% 4% 3% 3% 8% 8% Tablet Base: Have Started Activity on One Device & Continued on Another (1455); Searching (923), Browsing (1172), Shopping (969), Planning a Trip (627), Finances (675), 20 Social (1041), Watching a Video (623). Q. For the activities listed below, think about the last time you started each activity on one device and then continued or finished the same activity on another device. Please select which device you started and then continued on. If you have not done this, select “I have not done
  • 21.
    Tablets are mostoften a starting point for shopping and trip planning Started on 7% 7% 11% 15% 7% 4% 11% A tablet Searching Browsing Shopping Planning Managing Social Watching an for info The internet Online a Trip Finances Networking Online Video Continued on a smartphone 1% 1% 0% 1% 1% 2% 2% Continued on a PC 6% 6% 10% 14% 6% 3% 9% Base: Have Started Activity on One Device & Continued on Another (1455); Searching (923), Browsing (1172), Shopping (969), Planning a Trip (627), Finances 22 (675), Social (1041), Watching a Video (623). Q. For the activities listed below, think about the last time you started each activity on one device and then continued or finished the same activity on another device. Please select which device you started and then continued on. If you have not done this, select “I have not done
  • 22.
    Smartphones are themost frequent companion devices during simultaneous usage of the time when we’re of the time when we’re 57% using a smartphone, we’re using another device 77% using a TV, we’re using another device 28% 29% 49% 34% with a with television with a with PC/Laptop PC/Laptop smartphone 75% of the time when we’re using a tablet, we’re using another device 67% of the time when we’re using a PC, we’re using another device 35% 44% 45% 32% with a with television with a with television smartphone smartphone Base: All Device Interactions – Smartphone (6057); TV (3592); Tablet (542); PC/Laptop (3817). Q. Which of the following did you use? Q. What else did 25 you use at the same time?
  • 23.
    What is theWorld Doing?
  • 25.
  • 26.
    Accor case –drive ranking 2
  • 27.
    My on-line CA Airport Lounge Check destination Planning information Send arrival notifications to Push notification of family, chauffeur, boarding time local company hosts dependingyour movie from the Start on the Return Information on distance pick up where In-flight Video hangouts Notificationlounge and of on the flights localShow important your in the Message from trains and Taxi Preview WelcomeArrivalyou left off Drink order plane Navigationupon to luggage your a notification to estimated time message for destination with No Check to waitthe need with information Notification of the captain destinationAutomatically from Send status arrival at the Google Earth yourcarousel and estimated destination in line automatically Online maps airport checked-in smartphone automatically Arrival family time for luggage pick up Check-in
  • 28.
  • 29.
    Mobile for hospitality 1Clearly a high growth distribution platform 2 Location, personal, voice, mobile! 3 A personalised engagement platform. 4 Grow sources of revenue. 5 India - mobile first!
  • 30.

Editor's Notes

  • #2 Thank you for giving me the opportunity. It is always good to interact with the hospitality industry and I think is the best part of the travel industry.  Am very excited about today’s topic because this is technology at its best. I have been in the technology industry for a long time and really thrilled to see amazing changes technology has done to re shape the world. I admit it can be too fast some times but mobile technology has the potential to reach everybody and empower everybody. And that is why it is so exciting.
  • #3 We are living in an connected world. I do not remember last when I saw TV for more than 15 minutes at a stretch. I do remember that I spend lot of time on my phone, macbook and tablet. And we cannot leave our phones… 
  • #4 So the agenda in brief, clearly mobile is here and now. How is it impacting hospitality industry which is of great interest to all of us. I also want to share some stories of how hospitality and travel industry is using this platform and what are the possibilities.
  • #6 And not just in metros but small towns too…
  • #7 If you have to reach a segment between 15 to 34, mobile has more reach than TV!! Maximum possible reach of TV is 94%. And most time spent as well!
  • #8 Huge numbers and huge growth! 300 million + by 2015.
  • #9 India is huge in terms of using video and social on mobile.
  • #10 20% of hotel queries come on mobile now… and they are growing faster than desktop… in fact for overall number of queries, mobile has already surpassed desktop in India…
  • #11 Phenomenal growth on tablets and HED
  • #12 And now tablets will grow even faster…
  • #14 Astounding! In 2013, mobile bookings will double.