TECHNOLOGY : MOBILE
To meet the needs of mobile Internet users , hotel management companies have been investing in in-house and third-party development teams to roll out mobile-optimized websites and cross-platform applications . The goal is to draw bookings and expand their digital voice .
While still representing a relatively small percentage overall , mobile ’ s slice of the guestroom booking pie has shot up fantastically over the past three years and is expected to grow further .
In a report published in February , PhoCusWright predicts mobile hotel bookings will reach US $ 8 billion this year , and an estimated 40 % to 60 % of mobile hotel bookings are made within 24 hours of the stay .
“ Mobile is going to grow exponentially ,” says Michael Menis , vice president of web and interactive marketing at IHG . “ We see where mobile is acting as a ‘ skip ’ technology in China and India .”
While it remains a relatively small percentage of its overall bookings , IHG says mobile generated US $ 150 million in revenue in 2011 , up from just US $ 2 million two years prior . “ About 10 % of our overall web budget is being spent on mobile activities . Our strategy was one that focused early on revenue generation ,” Menis says .
Reflecting its heft , IHG employs about 20 personnel dedicated to mobile and develops all of its apps in-house . The team has churned out a multitude of cross-platform apps for its seven hotel brands in operation and loyalty program , as well as an insider concierge app and a cookbook app . “ We do everything in-house ,” Menis adds . “ This is something we see as a priority for IHG .”
Starwood Hotels and Resorts Worldwide has seen a similar increase in bookings and has prioritized mobile development . “ The percentage is small , but we ’ re seeing significant growth ,” says Chris Holdren , senior vice president of Starwood Preferred Guest and global web . “ Year-on-year growth has been 400 %. At the same time we ’ ve seen traffic grow 300 %, which means booking is increasing faster than traffic .”
Starwood has a dedicated team for mobile and partners with a third-party development agency , Bottle Rocket , Garland , Texas . “ It ’ s a significant investment for us ,” Holdren says .
Accor says most of its mobile bookings are for its economy brands , and it is increasing heavily in developing countries like Brazil and Indonesia . “ Mobile is growing very fast — it is already above 1 % of our total web sales ,” says Jean-Luc Chrétien , executive vice president of sales distribution and loyalty at Accor .
Accor has two full-time personnel dedicated to mobile development and works with outside agencies . It currently offers a mobile-optimized version of its main website and the Accorhotels . com app for iPhone and Blackberry . An Android version is set to be released in June , and Accor is working on further integrating its mobile website inside its current web platform .
Meliá Hotels International , Palma de Mallorca , Spain , says it trebled the number of visitors to its mobile websites in 2011 , and 6 % of its website traffic now comes via mobile .
Meliá currently offers a mobileoptimized website and Meliá apps on iPhone , Android and Blackberry . The company has invested about € 300,000 ( US $ 400,000 ) in its mobile development and has one staff member dedicated to mobile that is working with two outside agencies . “ All mobile developments are aligned with our corporate strategy in terms of sales and customer strategies ,” says David Gelabert , EMEA country manager at Meliá .
“ WE DO EVERYTHING IN-HOUSE . This
is something we see
Screenshot of Starwood ’ s branded apps
as a priority for IHG .” — Michael Menis , IHG
Screenshot from Mandarin Oriental ’ s mobile website
www . hotelsmag . com May 2012 HOTELS 53