Smartphones and tablets represent a huge opportunity for hotels, travel agents and leisure companies to increase online bookings and to follow a trail that other sectors have blazed. It is somewhat surprising then that travel, and in particular hotels, have been slow to exploit this growing market place.
So why invest?
The traditional model for sales seems to be struggling and the take-up of these new technologies should be encouraged to increase revenue streams throughout the sector. Currently however there is a gap between the use of these devices and the number of bookings made.
Recent research shows that 80% of those with smartphones* or tablets will use their device to compare hotels or ticket prices and the ebookers Explorer app is now in the top 5 apps in 104 countries. Surprisingly however, only 2% of all bookings made online are via a smartphone or tablet device. The remaining 98% of bookings are made using a traditional PC or Laptop. Why is this and what are the considerations for a travel company looking to get into this market?
Paul Chattaway of Chattaway Business Services Ltd, a company specialising in the design of digital platforms, believes that the public perception of security on apps and websites may still be an issue. The fact that consumers don't feel comfortable using their phones to make a payment may explain the discrepancy between the high percentage of people browsing on their phones and the low number of people actually booking. However, Paul believes this is set to change and that "public confidence will grow in line with mobile payment software security to see an increase in mobile phone bookings for the hotel industry".
The digital age – our view
Those companies that are looking to exploit this growing market will need websites and apps tailored towards tablets and smartphones. This will obviously include considerations as to design to make it easy for customers to book but Catherine Russell, a specialist in online commercial contracts at Thomas Eggar, warns that legal considerations should not be forgotten.
- Travel companies need to ensure they comply with general legislation as a starting point but will also want to include industry specific terms and conditions relating to ATOL and ABTA, for example. On top of this their terms and conditions will need to be built in to the process.
- It is essential to make sure that customers are bound by any such terms and so these must be properly incorporated into the booking process. This is particularly relevant from a practical perspective when making bookings using mobile technology and so travel retailers will need to consider how they bring their terms and conditions to their customers' attention.
- Although some travel retailers use a hyperlink to attract their customers' attention to their terms and conditions, it is advisable that customers are required to scroll through the terms and then tick a box to indicate their acceptance. If using solely a hyperlink there is the risk that it may be considered that the travel retailer's terms and conditions have not been incorporated and they will not be applicable.
We work with hotels and leisure companies to ensure that their legal needs meet the constantly changing market places in which they operate by keeping them completely up to date on the sector trends and the corresponding legal implications. Please contact Catherine Russell, solicitor at Thomas Eggar LLP, to discuss the legal considerations of creating mobile apps.
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