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Why Mobile Innovation is Key to

Growing Direct Bookings for Airlines

By Seth Cassel

IN EVERY AREA FROM CUSTOMER driven future of travel marketing: In the three
acquisition to passenger experience, airlines key areas outlined below, airlines need to
face a more competitive and rapidly changing better compete against the OTAs and MSEs.
market than ever. Across the space, even
the world’s largest global carriers being User Experience
forced to compete for market share based According to recent data, 40 per cent percent of travelers starting their searches
exclusively on price: Delta deployed its new of purchases in the U.S., and 50 per cent in Google and 75 per cent of clicks going
Basic Economy fares to grab price-sensitive worldwide, now involve multiple devices to organic (rather than paid) links. To grow
travelers away from low-cost carriers; and throughout the consumer journey. Across their direct bookings, airlines must enhance
American Airlines’ CEO has acknowledged the virtually every eCommerce-enabled industry, their online marketing strategies and invest
challenges of facing down subsidized airlines today’s multi-device consumers expect a fully in mobile website optimization to perform
from various regions around the globe. optimized mobile experience – and if they better in online search across the board.
This increased competition is largely a don’t get one, they navigate elsewhere.
function of the dominance of online travel Yet the majority of airlines still haven’t Long-Term Traveler Value
agencies (OTAs) and metasearch engines invested in providing customers with a Boosting their investment in mobile and
(MSEs), which dominate key acquisition sophisticated mobile experience. OTAs and deploying more aggressive digital marketing
channels and commoditize the airline offering MSEs, on the other hand, have. And with strategies will benefit airlines in other ways
by presenting flight offerings a mere list of Facebook reporting that 43 percent of as well. For decades, airlines have largely
fares – typically ordered from lowest to highest. travelers now prefer providers that enable marketed to potential customers with the
Yet there’s one aspect in particular where easy multi-device booking, airlines with less- goal of driving individual flight purchases,
airlines are clearly failing to seize market than-stellar mobile sites will lose more and making primary metric “cost of sale.” OTAs,
share: mobile customer bookings. According more direct bookings over time: 72 per cent however, have taken a different approach –
to EveryMundo data, mobile conversion rates of travelers report being motivated to book spending their marketing dollars based on the
on carriers’ branded websites and apps are again by a smooth booking experience. lifetime value (LTV) of a customer.
averaging roughly one fifth of their desktop By seizing mobile consumers from the
conversion rates. With smartphone and tablet Search & Visibility start of the travel booking process, OTAs “own”
use estimated to account for 30 per cent of Dodging buggy mobile interfaces and avoiding their relationships with those travelers (and
traffic to airline websites in 2016, airlines slow load times aren’t the only reasons essentially lease customers out to airlines
are poised to see their mobile conversion travelers end up on OTA, MSE, and other for their flight-purchase transactions). By
rates – and, increasingly, their overall direct travel websites. Thanks to search engine investing in mobile-centric strategies to
bookings—slump even further. algorithms that prioritize mobile-friendly boost customer acquisition, airlines can better
To combat the problem, airlines should pages, many travelers land on aggregator leverage their relationships with travelers –
look to others in the travel-booking sites unintentionally. and provide them with greater value over time
ecosystem. It’s not just their fellow carriers According to 2015 Google research, 85 through targeted messaging, personalized
that airlines are up against in the mobile- per cent of travel plans begin online, with 90 offers, loyalty marketing, and other efforts. And
by working with a vendor that can help them
achieve parity with OTAs and MSEs in online
marketing, airlines will see their conversion
rates grow… and can then return their focus to
out-innovating competitor carriers.

(Seth Cassel is President of EveryMundo. A
digital marketing expert and experienced
entrepreneur, Cassel oversees the execution
of highly sophisticated marketing projects
and campaigns for EveryMundo’s clients
covering 6 continents in 25 languages.)
38 ASIAN AIRLINES & AEROSPACE MAY/ JUNE 2016 WWW.GBP.COM.SG/AAA