A Mobile Only WOrld

William Judge and Rachel Larson

10/03/12

A Mobile Only World

The relationship between the hospitality industry and the mobile industry is a special relationship. As explained by author Vanessa Horwell in the article Mobile Technology: How to Reach Your Guests Where They Are, a special relationship historically defined is one that combines deep political, economic, and cultural values of close allies. While the mobile industry and the travel industry do not necessarily share the same political values, Horwell states it is becoming clear that a “special relationship” exists between these two partners for economic and cultural reasons. Why? Because guests are rapidly adopting the mobile applications for a variety of uses specific to travel and they expect hotels to accommodate them in the use of these applications.

The rapidly expanding mobile technology is built for on the go movement and communications which if used effectively by hotels, can enhance the gust experience thereby increasing guest loyalty and increasing hotel revenues. Within the hospitality industry these technological changes are being referred to by some as a “revolution”. The potential scope of this revolution is huge. It is not just what guests are currently doing with smartphone applications in the hospitality industry, but the anticipated growth of M-commerce or mobile commerce by consumers in retail shopping and even online auctions. According to Horwell, research indicates that in 2012 alone that eBay predicts mobile commerce sales to reach $8billion in mobile commerce retail and this double what they did in 2011.

Airlines too have seen significant increases in the number of passengers that use mobile technology. Mobile booking just like mobile commerce is trending up. Horwell reports that in 2011 mobile booking stood at $2.6 billion and by 2013 was predicted to reach $8 billion. To attract these travelers, southwest airlines launched an add campaign to make those travelers who use iPhones aware that they can now use their phones to see flight status updates, check in, make care reservations and there is link to offer further rewards in the form of discounts. In addition, Horwell further reports Southwest now offers a free app downloadable from iTunes that includes international flight check-in with a mobile boarding pass thus creating an entire mobile experience.

The impact of this data is clear. If travelers are using their mobile phones to purchase clothes, order food and book airline tickets they are clearly ready and eager to use them on business and leisure trips. This is especially exciting news for hotels because the larger hotel environment, both off-site and on-site, includes the purchasing and use aspects consumers have already been using in the restaurant, airline and retail industries. In addition, Horwell’s research shows that more than half the mobile bookings (52%) will be done directly through the branded hotels and not through travel agencies. So now it is becoming clear why the hospitality industry and the mobile industry have a special relationship.

To get the most benefit out of their special relationship, hoteliers need to get over their fears with regard to implementation costs, IT staffing and data security risks, Horwell advises. In addition to booking, mobile technology is influencing other aspects of the hotel experience such as contactless payment methods and keyless electronic doors. With mobile technology guests can access mobile check-out, make witless dining reservations or even purchase tickets for day trip excursions. Also, in combination with the hotels Wi-Fi network, mobile technology can enhance the guests in room entertainment experiences with movies and music. Imagine using your phone like a GPS system that would provide virtual map for guests to find their way within hotels or their app advised them of daily

A Mobile Only World

deals at hotel venues. Undoubtedly the opportunities for increasing revenue while enhancing the guests experience are almost limitless. Clearly, the special relationship between the mobile industry and the hospitality industry is one that has a bright future to be appreciated by all.

In today’s world, it is quite likely that a person who owns a cellphone has some form of a smart phone. Phones without internet access are almost nonexistent. Many businesses have already started preparing for a mobile only world by creating applications that make it easier for guests to reserve seats on an airplane, a table at a restaurant, or a room at a hotel. Today people are trying to do everything at once and having a cell phone that makes things more accessible is a necessity.

As of July, Holiday Inn has integrated a new technology into two of their hotels that make it possible for guests to access just about anything with their phones. According to Kit Eaton’s article titled Your Phone as a Door Key, this new application makes everything from using your phone as the room key, express check in and out, hotel services, and complete control over the lighting, TV, and AC in the rooms, possible. This is a great addition to the hospitality industry. Vacationers can spend more time having fun and less time waiting in lines or on hold. The only thing that could prevent this application from taking off is that it is only being offered to VIP guests. (Eaton, 2012) Other businesses are in the process of getting this kind of technology and plan on offering it to everyone. With Holiday Inn excluding their other guests they risk losing them.

Joe Bush’s article, TGI Friday’s Adds Tabbedout’s Mobil-Payment App, discusses how the restaurant chain TGI Fridays has integrated a new application called Tabbedout into their already existing application. This application gives the customer the opportunity for a faster and easier way to pay their bill. Now a guest doesn’t have to sit and wait for the waitress to bring their bill to them. With the click of a button, the bill can be paid and the customer can leave. Guests are also able to split the bill without the assistance of the wait staff and can even add a tip. This application will be a big help on busy nights; one less trip to the table means that the wait staff can spend more time helping other customers. Out of the 600 TGI Friday’s locations, half of them are company owned; only the company owned restaurants offer the tabbedout application. (Bush, 2012) In the future this might create confusion and frustration among guests. Other restaurants are testing out the application as well. If TGI Fridays doesn’t merge the rest of their restaurants soon, they could fall behind.

In a mobile only world the retail industry would be wise to start integrating this kind of application in their stores. Checking customers out would become much easier and faster, leaving more time for the retailers to assist other customers. Stores wouldn’t need as much staff working at one time and the customers wouldn’t have to wait in long lines to pay for their merchandise. This would be especially helpful during the busy seasons, such as Black Friday.

The medical field could also benefit from implementing this new technology. It would save a lot of time and money if an application was created so that patients could coordinate the scheduling of appointments and check in and out with their phones. The application could let the doctors and nurses know right then and there that their patient is waiting and the hospitals wouldn’t need as many receptionists.

A Mobile Only World

The business landscape will look very different, because a mobile only world will change everything. Going green will be much easier for businesses to do, saving paper by e-mailing or texting guests their receipts, confirmations, and bills will save a lot of trees. Within the last couple of years, 6 million homes were equipped with a technology making it possible for the home owners to monitor their energy cost and usage. Cars are also being built with the capability of turning into a Wi-Fi hotspot. The way education professionals teach, market researchers collect data on consumers, and the way people shop and buy things will change drastically with a mobile only era. Smartphones will start behaving more like laptops in the coming years; this could potentially make laptops and computers a thing of the past. Applications and smartphones have already made some things obsolete like the GPS. Other things like; websites, credit cards, and even carrying a wallet could become obsolete in a world that does everything with their phones.

The mobile only era will definitely change with every release of a new and better phone or application. Phones with new features and capabilities are being released at a rapid pace. People will be able to do just about everything with their smartphones in the coming years. Apple is a great example of how fast products with new features are being released. They just introduced the new IPhone 5, similar to the IPhone 4S which was released a little over a year ago. The IPhone 5 has a different look and new features including a new dock connector, making it easier for users to plug their phones into the charger. It didn’t take Apple long to come up with an even btter product. Apple is already working on the next product to blow consumers away with. Mike Saylor the author of the book The Mobile Wave: How Mobile Intelligence will Change Everything and CEO of MicroStrategy predicts that in 5 years there will be more tablets than smartphones. He argues that tablets will be everywhere; hotel rooms, elevators, planes, and much more. If this prediction comes true, and smartphones start becoming more like tablets; it could greatly change or even end the mobile only world.

Businesses are going to need to continue to stay connected with their customers. Realizing that a smartphone is their customer’s lifeline and utilizing that to the best of their ability is what businesses are going to need to do to stay with the trend. If businesses haven’t already they need to start by mobilizing their websites. If a website isn’t accessible from a mobile device, who knows how many opportunities have been missed because users couldn’t get onto the site. According to the Vice President of Mobile Enterprise, Bob Sutor’s, article Beyond the Device: The Next Era of Mobile Computing, businesses need to think about more than the mobile device itself. Sutor suggests that businesses start with a complete mobile platform. In order to plan new mobile opportunities, businesses need to understand what they have in their mobile infrastructure already and then go from there. As long as businesses keep responding to their customers wants and needs with applications and services that make getting the product or service faster and better, they won’t fall behind.

A Mobile Only World

Bibliography

Bush, J. (2012, March 1). TGI Friday's Adds Tabbedout's Mobile-Payment App. Retrieved September 25, 2012, from Paymentsource.com: http://www.paymentssource.com/news/TGI-Fridays-Adds-Tabbedouts-Mobile-Payment-App-3010526-1.html

Eaton, K. (2012, July 25). Your Mobile Phone As a Door Key. Retrieved September 23, 2012, from Fastcompany.com: http://www.fastcompany.com/1843696/your-mobile-phone-door-key

Horwell, V. (n.d.). Mobile Technology: How to Reach Your Guests Where They Are. Retrieved 10 03, 2012, from hotelexecutive.com: http://hotelexecutive.com/business_review/3054/mobile-technology-how-to-reach-your-guests-where-they-are

Mullich, J. (2011). 10 industies that wireless will change. Retrieved 09 27, 2012, from Wireless World: http://online.wsj.com/ad/article/wirelessworld-industries

Sutor, B. (2012, 071 12). Beyond the Device : The Next Era of Mobile Computing. Retrieved 09 27, 2012, from Mobile Enterprise: http://mobileenterprise.edgl.com/top-stories/Beyond-the-Device--The-Next-Era-of-Mobile-Computing81153