Travel Industry’s Mobile Revenues Are Much Lower Compared to Other Sectors
While companies from the Priceline Group to Expedia tout their proliferation of mobile traffic and bookings, mobile adoption in the travel industry has lagged other ecommerce and social media sectors.
That’s the view of financial services firm PiperJaffray, which argues in a company note about TripAdvisor that the travel industry’s mobile adoption has been relatively sluggish.
“While the proliferation of mobile devices has disrupted search, social and e-commerce, the influence on online travel has arguably been less than seismic,” PiperJaffray states. “Less than 15% of travel bookings are made with a mobile device today and less than 5% of travel ad spend is allocated to mobile screens.”
Although mobile travel sales are still relatively low, they are slated to reach $64.69 billion, or 37% of U.S. travel sales, by 2018, according to an eMarketer forecast.