How do the latest innovations in technology impact railways and their distribution strategy? 11 travel technology trends and their relevance for railways to meet the customers demands. Find out about trends like multi-device, app-mania, instant messaging craze, sharing economy and multi-modal travel.

1. December 2014
How the latest
travel technology trends impact railways
Katrin Heintschel
Marketing Strategy

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What does the travellerwant?
I move between my phone, laptop, and tablet. Sometimes, I use them at the same time.
I prefer to use apps to mobile web. I use them for research and to help me when I’m on-the-go.
I expect to find the same offers, prices, and even services, whatever channel I use.
I want to receive alerts about my train, platform changes and cancellations. Then I make any last minute bookings on my mobile device.
I use BlaBlaCar, Uberand other sharing platforms to plan my trip. Sometimes I book via Instant messaging.
I do not want to handle different tickets for every part of my trip.
If I make a booking on my phone, I don’t want to enter all my personal details.
I’ve saved some travel related products in my shopping cart, I want to resume my session on any device I choose to.
I expect the retailer to know who I am and be aware of my preferences.
Sometimes I don’t know where I want to go for the weekend, I just want to find a good deal.

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11 substantial
travel technology trends

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Travel technology trends

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1) Mobile-centric web
Mobile is becoming the primary platform for travel
_Thereisnootherplatformthatismorepersonal,pervasiveandwithmoreproximity.
_In2018,35%ofonlinebookingsinEuropeareexpectedbedoneonamobiledevice.
_Especially18-34yearoldshaveaverymobilecentricwebexperience:40%ofonlineactivityisonmobiledevices
_Tabletsnotonlyfortheyoung- ownershipishighestamong35-54yearolds
_Onetouchcheckoutwillbecomeastandardforefficientmobilesales
_MetasearchplayerslikeKayakandTrivagohaveinvestedheavilyontheirmobilestrategy.

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_Millenialsuse apps for roughly 50% of all mobile travel planning activity
_For corporate travellers, mobile apps are fundamentally altering the way in which they work and manage their travel.
2) App-mania
Mobile travel activity will become increasingly app focused

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_Leading Chinese online travel agency Ctripsellsair, train and attraction tickets and group-buying deals through WeChat.
_Low-cost carrier Spring Airlines launched a WeChat service allowing users to book flights, check in, check flight status and communicate with customer service.
_Instant messaging allows companies to manage customer support, which is especially interesting for travel where timely responses to customer issues are key.
3) Instant messaging craze
WeChat overtaking Social Media in Asia

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_90% of people move between multiple devices to accomplish a goal.
_European online leisure travellersown an average of 3 web-enabled devices.
_Multi device usage is the norm for 18-55 year olds –not only the young!
_Multiple devices used for all stages of a trip, from inspiration to planning, booking and on-the-go.
_Travelers expect to be able to resume a session seamlessly where they left off at a different device
Hyper-connected travellers
4) Multi device is going mainstream
Smartphone
Tablet
Phablet
Laptop
Desktop PC

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5) Cross-channel
Anytime, anywhere, any channel…
Customers are shopping through web, phone, store, mobile and more and this before, during and after their trip, at all hours of the day
Ticket machine
Travel agency
Internet
Station
Mobile
Call Centre
Plan
Purchase
Departure
Trip
Return
Next trip

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6) Omni-channel
_In a near future, new channels will emerge and will be included in retailers’ cross channel strategy.
_Connected TV, Google Glass, Connected watch
_Once retailers have succeeded in their cross channel strategy, the next move is to become Omni Channel
_Interactions with the consumer are seamless, allowing a perfect personalisation, mixing all distribution channels with all communication channels (offline and online advertising, social media and loyalty programs)

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_Sharing economy pushes alternative transportation modes and expands the number of choices available to travellers
•The ride-sharing companyBlaBlaCarin Europe will soon serve more monthly passengers than Eurostar rail lines (Dec 2013).
•treinbuddy.nlhelps rail passengers find someone with a discount card to travel together at discount prices.
•Another Dutch platform let’s you share unstamped train/public transport tickets.
Sharing instead of owning
7) Sharing economy -collaborative consumption
_Having access to what you want is more important than owning it
_Growing importance in travel: sharing of accommodation, cars, rides, parking, train tickets, etc.

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_Travellerslike to see their hotel room before booking, they also like to see what their mode of transport looks like
_A study by Rome2Rio shows that there is a high engagement with transportation imagesin travel search results
_For social media, traveller-submitted videos are much more appealing to travellersthan those posted by travel companies
Travellerswant a well informed idea of the trip experience
8) Photos & videos engage customers

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_New dimensions for meta search parameterswill make search more refined and targeted
_Consumers shopping profiles become more accurate based on implicit preferences
The key to travel distribution is search
9) Meta search & predictive search
_Search will change from reactive to proactive: increasingly sophisticated matching algorithms will predict travel needs and proactively deliver useful information such as travel details, directions to train station, delays, rebooking options etc.
_Google anticipates speech generated search as the norm and extends voice query for regular browsers on desktops and laptops

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_Journey planners enable easy multi-modal and door-to-door travel options, alternative modes of transport will be integrated
_Availability of a ‘one-stop shop’ when making travel arrangements is crucial. Travel providers will soon offer all aspects of the trip, offering a wide range of content and ancillary services
_Travellerswill be able to comparedifferent brands, products, packages and prices at an early stage in the buying process
_All trip information stored in one record and easily accessible by traveller
Shop and book in one place
10) Multi-modal & one-stop shop

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_Mobile wallets through NFC let you shop in stores, buy airline tickets, send money to friends, store loyalty cards etc.)
•e.g. Apple Pay, Google wallet
_Pay on-the-go with a picture of your creditcard
•e.g. Card.io
_Portable credit card reading devices
_Payment with Bitcoins
Payment on the go
11) New payment methods

16. What does all this mean for railways?

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What does all this mean for railways?
Relevance for meeting customer demands
Enable travellersto search depending on their preferred search parameters, remove limitations to traditional search(day, time destination)
Provide customers with images of train station, train interior, compartments, food selection, ticketing machines, etc.
Allow customers to choose their preferred seat, supported with an interactive seating map
Make mobile booking as easy as possible, minimiseclicks and reduce personal information to be filled in
Ensure yourapp covers the whole trip experience, before during and after the trip
Proactivelydeliverusefulinformationsuch as travel details, directions to train station, delays, rebooking options etc.
Offer a ‘one-stop shop’ for making travel arrangements, covering all aspects of the trip
Create a new proximity by managingcustomerdata (online and offline) -
customiseaccording to their preferences
Be ready to accept new forms of payment or booking via instant messaging and ensure meeting security standards

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What does all this mean for railways?
Relevance for cross-channel strategy
Define profitable cross channel strategies, including role of online, mobile, station and indirect channels in the purchasing path(before, during, after purchase)
Provide customers with the right information at the right time at the right place
Establish effective cross channel merchandising and pricing mechanisms
Ensure consistency across all channels–the same search results, prices, itineraries and routes
Enable customers to switch channels at any given time without having to start from the beginning
Consumer behaviour tracking on all channels enriches the knowledge about the consumer, allowing better recommendations and cross- selling
Be readyto includenew channelsin yourstrategyand beinformedabout new opportunitieslinkedto them
Investigate collaboration with ‘shared economy’ platforms and complement your business with it

19. Thank you
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_http://www.mmaglobal.com/mobile-marketing-playbook/
_Latitude Next Gen Retail Study, 2013
_Google Insights 2013
_PhoCusWright2014: Mobile Technology Changing the Battleground
_Google / TNS Connected Consumer Study 2013
_The 2013 Traveler, Google
_PhoCusWrightApril 2014: The Mobile Travel Landscape: A Multi-Region Spotlight
_Amadeus Mobile market study 2012
_Mobile Marketing Playbook
_PhoCusWright’sEuropean Online Travel Overview
_PhoCusWright’sEuropean Travel Technology Survey 2014
_PhoCusWright’sTravel Innovation and Technology Trends 2014 and Beyond
_WTM Travel Trends 2014
Sources