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Local-first travel apps trump branded hotel and airline offerings: report

Consumers are increasingly turning to local-first travel applications such as Uber and Foursquare, in addition to online travel agents, putting hotels? and airlines? branded apps in danger of losing momentum, according to a new Strategy Analytics report.

The June Travel Analytics' Monthly iPhone Travel App Tracker data shows travel brands are in dire need of developing more targeted global distribution tactics that will appeal to local markets. Hotels and airlines that are aiming to reach a wider audience on mobile are losing in popularity to online travel agents? apps, such as Expedia and HotelTonight, proving that OTAs currently have the upper hand.?

?[Travel marketers] need to do better or to rethink the purpose of having a mobile application,? said Josh Martin, director of analytics research services at Strategy Analytics, Newton, MA. ?Is it worth considering just having a mobile Web site?

?How much money should companies invest in new technologies like Apple Watch or Android Wear?? he said. ?All the data points to aggregation of services being a factor in using a service and many millennials that came to know travel via an OTA are bringing that behavior with them to the mobile.

?Hotels and airlines should fear brand dilution as a result and their efforts thus far ? offering more points to book through an app for example ? aren?t having the lasting impact they need.?

A local mindset
Strategy Analytics? report proves that travel and hospitality apps must offer information directly relevant to the user and his or her current location. The one key facet seen universally worldwide is that travel apps are considered local-first apps.

Navigational applications took the top spot in popularity, suggesting that brands may find valuable cross-marketing opportunities in reaching consumers while they are driving or on-the-go.

For example, KFC is targeting younger consumers by teaming up with the Waze app to lend the voice of brand mascot Colonel Harland Sanders, who will provide turn-by-turn GPS directions and point out nearby restaurants (see story).

Yelp, Uber and Foursquare also had frequent appearances in the 150 countries analyzed.

Considering challenges
The data found that eight of the 25 most popular travel-related apps were those of OTAs, including Booking.com, HotelTonight, Expedia and Airbnb. Lufthansa and United represented the airline industry, while zero hotel apps took precedence among consumers.

This is a worrying find, particularly as more travelers head to mobile for their booking and researching needs prior to taking a trip. The sheer amount of options and filtering tools available on OTAs is likely an attractive feature, as is the influx of personal concierge platforms within third-party apps.

HotelTonight in particular is leading the charge for third-party booking marketers trying to personalize their applications by piloting a concierge feature enabling users to request information about their final destinations and ask for hotel amenities from the front desk (see story).

Therefore, online travel agents are in a position of power among iPhone owners. Hotels? and airlines? branded apps must now ensure they are offering regional and country-specific information if they want to compete with OTAs on a global scale.

This past March, a report from Strategy Analytics revealed that users of TripAdvisor are three times more likely to have other travel mobile apps, such as those for airlines, downloaded on their mobile devices, suggesting that TripAdvisor is a gateway brand that other travel marketers can leverage to reach more engaged consumers (see story).

?It will probably require partnerships with others in the industry as well as refocusing their apps to be more booking-centric but also dream phase-oriented,? Mr. Martin said. ?Right now these apps have great utility while traveling but is that enough to overcome the need to find an app, download an app, log-in to an app and learn how to use an app?

?Probably not ? especially when people stay at different hotels and fly on different airlines. So, a re-think of the strategy alongside the need to partner with local companies to imbue their brands more regularly with users is important.?

Final Take
Alex Samuely is an editorial assistant on Mobile Marketer, New York