7. Mobile addiction

We’re all online consumers. Who hasn’t bought something using their smartphone or tablet? Unfortunately this momentum to mobile transactions applies to travel just as much as other retail sectors. More and more business and leisure travellers are booking on their smartphones and tablets and this is not particularly good news for traditional travel agencies. Suppliers and online travel agencies (OTAs) have been quicker to offer apps for mobile devices. According to a study by PhoCusWright, U.S. travel agencies and travel management companies (TMCs) will lose $73 million to suppliers and OTAs as mobile bookings move from 2% of the total market three years ago, to 8% in 2016. At the same time, the share of the overall U.S. travel market booked through suppliers and OTAs will rise two percentage points to 55% while the share controlled by agencies and TMCs drops by the same amount to 27%. As more younger travellers enter the market and use of mobile devices continues to grow, mobile booking is expected to make up one-fifth of online bookings in the near future after growing 53% last year and 67% in 2013.