Tag Archives: mobile payments

Travel & Tech News You Can’t Miss – May 8th 2015

Travel & Tech News
Travel & Tech News

Disappointing news this week about vacation rentals’ performance on Expedia. Here’s the kicker to the whole story, “I think vacation rentals are an important market,” Expedia Inc. CEO Dara Khosrowshahi told financial analysts during the company’s first quarter of 2015 earnings call last week. “It’s an important product in many, many markets. As to whether it’s important for Expedia to be in, that remains to be determined.

Some of this is just growing pains for our industry, and some of this is failure to find that middle ground that will allow the square peg to fit into the round hole. Expedia wants quite a bit of control over the inventory, pricing and payments for vacation rentals (like they have with hotels) and many vacation rental companies can’t give up that much control. Particularly with a 15%-20% commission attached.

Everyone involved has their work cut out for them. Ultimately it has to be easy for the guests to book, lucrative enough for Expedia to make the right investment, and allow the vacation rentals companies (or owners) to continue to provide the personal touch that makes vacation rentals unique.

Did you survive “Mobilegeddon“? If your website isn’t mobile friendly, then you likely suffered in your Google search rankings as of April 21st.

Even if you still get the majority of your bookings over the phone or e-mail, 20% of searches are done on a mobile device, and it was recently reported that 25% of all digital transactions in the US were generated from a mobile device.

Speaking of mobile transactions, I have often said that virtual wallets and online currency are going to become the norm in the not too distant future. So it was interesting to read that Google Wallet funds are now FDIC insured.

There is still a ways to go before this becomes mainstream, but the writing is on the wall. Here’s something to think about; will your business be ready when this becomes the preferred method of payment?

The airlines are trying to be the first to integrate mobile payments into their guest experience. Here’s an article on how a few of them are making this happen. JetBlue will let you make in-flight purchases through their app on your iOS device ,and KLM is experimenting with booking flights on Facebook and Twitter.

Lots of change coming. Are you ready for it?

Until next week…

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Travel & Lodging News from Around the Web – The Economy and Mobile Payments

News & Information
News & Information

The US dollar has hit an eleven year high, with forecasts and data saying that the economy is coming back in full force. This is great news for the travel industry as Airlines for America (an advocacy group that boasts such members as Alaska, Delta, and Southwest Airlines, along with UPS, Fedex, and many more) reports that Spring 2015 air travel is the highest its been in 7 years. This is great news for vacation rental companies, and a perfect reason to reach out to past guests about why they should include you in their Spring and Summer travel plans.

Speaking of the dollar and airlines, UATP (a payment network for airlines) announced that it will begin offering its members the ability to accept Bitcoin as payment for flights.  (Bitcoin is a digital currency that is more secure and efficient than credit cards and other forms of online payment.)

Facebook also threw its hat in the ring saying that it will soon allow its users to send money to each other over the Facebook instant messaging app. Imagine if Facebook becomes a viable booking channel for vacation rentals with the ability for the guest to pay for their stay, write reviews, upload pictures, and share it all with their friends. Which vacation rental software company will be the first to integrate with Facebook?

And speaking of mobile payments, airlines, travel companies, and some hotels are already starting to gear offerings and integration with the Apple Watch. The Apple Watch uses Apple Pay which is already accepted by many banks and stores as a method of payment. (As of March 3rd there are over 100 banks, credit unions, and credit/debit cards partnered with Apple for Apple Pay. Including Visa, Wells Fargo, Bank of America, and Chase.)

Why is this relevant to vacation rentals? Without knowing how it will all shake out, I feel pretty confident in predicting that in 5 years, 10 at the absolute outside, a significant portion of customers will expect to be able to pay for their travel and lodging via mobile devices, using some form of digital currency like Apple Pay or Bitcoin.

Think I’m dreaming? Consider this; the first generation iPhone was released on June 29, 2007, almost eight years ago. In that eight years, smartphones have completely revolutionized our day to day lives. How we communicate, how we interact with the world, how we get our news, find places to eat, and even read books. (I have a Kindle app on my iPhone so that I can read a book anywhere I find myself with time to kill.) Both the Dept of Justice and former chairman of the Federal Reserve Ben Bernanke have commented on the legitimacy, increased security and efficiency of digital currencies like Bitcoin. Time will ultimately tell, but mobile devices, mobile payments, and digital currency aren’t going away. They will become more and more integrated into our lives, and those companies that profit the most will be those that recognize this and use it to provide value and ease to the customers. They don’t have to be the first, just the best.

Until next week.