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Travel Apps – Thematic Research

Travel apps have become popular due to the convenience they offer travelers. Apps that utilize the latest technology have become industry leaders within the theme. As technology continues to progress, travel app providers are likely to embrace it, much to the benefit of consumers. Travel apps have become commonplace within the travel and tourism industry. As consumers increasingly seek the most convenient way to interact with travel brands, development and investment in travel apps are set to increase. Consumers are consistently demanding more from travel providers as they become more empowered and connected than ever before thanks to digital and social platforms.

As a result of the pandemic, travel demand was almost non-existent and many travel companies went into hibernation. However, the number of travel app-related patents submitted in 2020 reached the highest level since the introduction of smartphones. The pandemic has given agile companies the opportunity to take a step back, access their competitive position, and invest in the latest technology to improve the customer experience. Similarly, travel apps have been altered to create a contactless travel experience addressing pandemic concerns. The pandemic has accelerated app development. The advancement of the travel apps space will provide key opportunities for travel companies to increase market share by solving a common traveler pain point or offering the most convenient booking platforms. No player with the travel and tourism sector is immune, and all must realize the value this theme can bring.

What are the market dynamics of travel apps market?

Travel-related apps only account for a small percentage of the overall number of apps available on both Apple’s App Store and the Google Play Store. Even though travel apps may seem to only account for a small proportion of apps available, the share of the market is significant when considering the number of travel companies compared to other industries. Travel companies must understand the importance of developing apps to meet and solve problems consumers can face. There is a large number of players who are yet to realize the value a travel app can generate to both the company and the traveler. If these companies do not act soon, they risk falling behind and could lose custom. Understandably COVID-19 has had a profound impact on travel app downloads worldwide. In line with the sudden fall in travel due to strict COVID-19 restrictions introduced at the beginning of the pandemic, the download of travel apps fell as a consequence. However, travel app downloads have the potential to increase at a far greater rate than first imagined.

The COVID-19 pandemic has highlighted the importance of integrating new technologies to attract and restore confidence among travelers. Companies that integrate the ability to make changes directly within the app are likely to be more attractive during the COVID-19 recovery period. As with many technology-driven themes, the younger generations are the biggest drivers. As the travel app’s theme continues to develop this generation will likely continue to be an important target market and will shape the outlook of the industry into the future.

What are the macroeconomic trends impacting the travel apps market?

COVID-19 has decimated travel demand and travel apps saw a shift in focus during the pandemic, becoming a useful tool for companies to keep travelers engaged from the comfort of their homes. During the initial worldwide lockdown in March 2020, many travel firms were left with zero demand for future trips whilst they waded through the mammoth number of refund or change requests. Clever companies soon identified an opportunity to keep travelers engaged with their brand by providing a travel experience from the comfort of their homes. The interactive content will become central to marketing efforts and now is the time for travel brands to integrate this into their offerings.

With the onset of the pandemic, safety, when travelling is of the utmost importance to all and the emergence of travel safety apps for leisure travelers is becoming more common. Originally designed for corporate travel, travel safety apps offer a safety net in the traveler’s pocket. Established travel companies have an opportunity to partner with leading travel safety app providers to bring this functionality onto their own apps to enhance their products. These will be extremely beneficial and help bolster the competitive position of the company within the crowded travel and tourism space.

A key marketing strategy some travel companies have adopted is the offering of app-only pricing to encourage the usage of app booking channels over online or other options. The reason for this move is to highlight the benefits the app can bring. Similarly, the company can then easily push content to the user through push notifications which could encourage the purchase of additional trip components or generally offer useful reminders for the traveller. The emergence of travel apps presented the sharing economy with an opportunity to increase its presence within the travel and tourism sector by launching company-specific apps.

What are the value chain segments in travel apps market?

The tourism value chain for the theme of travel apps can be divided across five distinct layers. These are the Content Provider level, Content Enabler level, App Technology level, Device-level, and User level. Travel and tourism companies will get the most value out of the content provider level as this is the layer within which the app idea and content for it is created.

  • Content provider level: At the content provider level are the travel and tourism industry players. Companies in this layer can operate and be industry-leading firms without a travel app.
  • Content enabler level: Within the travel app’s theme travel and tourism companies often lack the expertise and knowledge to develop their own in-house apps. Therefore, they often need to seek the support of content enablers.
  • App technology level: The app technology level enables a concept to be turned into leading travel app. Technology options include conversational platforms, cloud, AI, 5G, VR/AR, big data, mobile payments, and many more.
  • Device level: This level has three layers: device manufacturers, apps distributors, and network providers. All three are vital for app development and must be considered early on in the design stage to ensure there are no issues further down the line.
  • User level: This one can be considered the level which delivers the most value, especially to the end-user as the traveler is only interested in the end functionality of the app.

Which are the key players of the travel apps market?

The major public travel apps companies include AccorHotels, Airbnb, Alphabet, American Airlines, Avis Budget, Booking Holdings, British Airways, Carnival Cruises, easyJet and Hilton. The major private travel apps companies include Cambodia Tourism, Grab, Hays Travel, Holiday Extras, and Intrepid Travel.

Travel apps market, by key players

Travel apps market, by key playersTo know more about key players, download a free report sample

Market report scope

Public Companies AccorHotels, Airbnb, Alphabet, American Airlines, Avis Budget, Booking Holdings, British Airways, Carnival Cruises, easyJet, and Hilton

 

Private Companies Cambodia Tourism, Grab, Hays Travel, Holiday Extras and Intrepid Travel
Key Value Chain segments Content Provider level, Content Enabler level, App Technology level, Device-level and User level

Scope

  • This thematic report provides an overview of the impact travel apps has on the travel sector and seeks to understand how technology is accelerating this theme.
  • The key trends within this theme are split into three categories: technology trends, macroeconomic trends, and industry trends.
  • Several case studies are included to analyze the multiple ways companies and countries have responded to the impact of this theme and what they are doing to position themselves strongly.
  • Our unique thematic analysis then dives deep into how other industry themes have aided the expansion of travel apps, the impact of COVID-19 on this theme, and how travel apps have offered all players unique ways to develop industry-leading apps.

Key Highlights

Travel apps have become commonplace within the travel and tourism industry. As consumers increasingly seek the most convenient way to interact with travel brands, development and investment in travel apps is set to increase.

Generation Hashtag are the first members of the population that have been brought up with widespread access to smartphones and are not afraid of the endless opportunities they hold. This tech native population has been highly receptive to the power of apps, and travel apps have become powerful tools to reach this market.

Travel apps have become popular due to the convenience they offer travelers. Apps that utilize the latest technology have become industry leaders within the theme. Technology has allowed companies to create apps that offer a superior service to travelers, even excelling the online offering of a company.

The pandemic has given agile companies the opportunity to take a step back, access their competitive position, and invest in the latest technology to improve the customer experience. Similarly, travel apps have been altered to create a contactless travel experience addressing pandemic concerns. The pandemic has accelerated app development.

Reasons to Buy

  • Understand the impact of travel apps on travel and tourism companies, using case studies and examples to help you understand how you can tackle and accelerate your position within this theme.
  • Assess the strategies that companies are adopting to become front runners within this theme, gaining a competitive advantage as a result.
  • Acknowledge both the advantages and disadvantages of travel apps, identifying why it is critical to develop strategic actions that ensure the forward movement of travel businesses.
  • Discover recommendations that will help you service the next generation of travelers by establishing an app presence and effectively servicing the market in the right way.
  • GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
  • All across the travel and tourism supply chain, companies have an opportunity to meet the needs of future travelers by launching a travel app and there are notable examples of this. Therefore, all should buy this report to fully understand how this theme will continue to be a key theme in the future travel landscape.

Key Players

AirAsia, Airbnb, American Airlines, Carnival Corporation, Delta Air Lines, easyJet, Flyr, Hilton, Revolut, Tourism of Cambodia

Table of Contents

Executive summary

Players

Thematic briefing

Trends

Industry analysis

Impact on travel & tourism

Value chain

Companies

Sector scorecards

Glossary

Further reading

| Our thematic research methodology

| About GlobalData

| Contact Us

Frequently Asked Questions

The travel apps value chain is being segmented into content provider level, content enabler level, app technology level, device-level, and user level.

 

The major public travel apps companies include AccorHotels, Airbnb, Alphabet, American Airlines, Avis Budget, Booking Holdings, British Airways, Carnival Cruises, easyJet and Hilton. The major private travel apps companies include Cambodia Tourism, Grab, Hays Travel, Holiday Extras, and Intrepid Travel.

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