Mobile travel trends 2020A global benchmark of travel booking and mobility apps

Contents

Executive summary ............................................................................................................................ 3

Travel Apps Globally ..................................................................................................................................... 3

Mobility vs. Travel Booking .......................................................................................................................... 4

Regional differences ..................................................................................................................................... 5

The top three takeaways from the report ....................................................................... 6

Every journey begins with a click ........................................................................................... 8

Do seasons impact how users get around? ................................................................. 10

The best times to buy ......................................................................................................................13

Table stakes ..............................................................................................................................................15

Easy come, easy go ...........................................................................................................................17

An app for all seasons .....................................................................................................................19

Mobile Travel Trends 2020 2

Nowhere was the outbreak of the COVID-19 pandemic more starkly felt than in the world of travel. Governments

from regions the world over instituted travel bans starting in March 2020 to curtail the spread of the virus; only

recently have these measures been relaxed in regions such as Europe, where governments have begun loosening

cross-border travel bans starting in mid-June.

Although the bulk of this report focuses on long-term trends already underway in the mobile travel indus-

try in 2019, a quick look at the data from the first half of 2020 suggests that the disruption in travel was

unprecedented — but is now possibly on the mend, as people begin to plan for travel beyond the immediate

present. We have included this analysis here to provide some perspective on how the travel vertical of the

app economy has fared during this extraordinary period.

While the expected post-Christmas dip in January is in line with expectations, once lockdowns and travel-bans hit in

early March, our most widely used metrics — installs, sessions, and in-app events declined rapidly, with the fall in

average installs per day between February and March hitting 17.45% — and average sessions per day falling 17.29%.

The fall in installs and sessions bottomed out in April, as May started to see the first gradual signs of recovery.

Starting from this very low base at depths of the lockdown, the global average number of installs per day has ticked

up recently, jumping by 16.33% from April to May, with the average number of sessions per day increasing by 12.27%.

Executive summary

Installs, Sessions and Revenue Events

Sessions

Revenue

Installs

Dec Jan Feb Mar Apr May

Mobile Travel Trends 2020 3

With positive results starting to emerge for travel apps over the last few weeks, one assumption could be to believe

that the majority of these users and sessions are in mobility apps, with travel booking apps, especially ones focusing

on international travel, still lagging behind. Mobility has seen steady growth since the low at the end of March — with

average installs per day rising by 34.98% between April and May — but it is hardly the only sub-vertical that’s seeing

positive signs.

Travel booking apps have also been trending upwards, suggesting that any recovery is being spread across apps in the

wider travel vertical, instead of focusing narrowly on commuters or those who wish to travel internally within cities or

regions. Travel booking apps have seen a 56.77% surge in average installs per day from April-May in the travel booking

sector. While the first signs of growth are emerging, the huge decline in March means that the numbers haven’t reco-

vered to the pre-lockdown baseline.

Mobility apps last 180 days

Dec Jan Feb Mar Apr May

Mobility vs. Travel

Travel booking apps last 180 days

Dec Jan Feb Mar Apr May

Installs

Installs

Mobile Travel Trends 2020 4

As borders within Europe reopen, there has been a much more noticeable jump in sessions and installs for travel apps,

with a 38.02% increase in average installs per day between April and May. However, revenue events remain flat, sug-

gesting that Europeans are remaining cautious about their prospects to travel in the near future and may be keeping

their wallets closed for the time being.

The Americas tell a different story, with the United States still behind in their ‘infection timeline’, having had their

first case later than Europe and consequently still at an earlier phase of the curve than their counterparts across the

Atlantic. In America sessions and installs have reached a bottom, but are yet to rebound. If the EMEA data gives any

indication, it should be that Americans users will start returning to the app as restrictions ease nationwide.

While it remains extremely difficult to predict whether these emergent trends will continue to gain momentum over

the second half of 2020 — the data offered in this report offers valuable insights into the state of play in travel apps

during the past 18 months and what the world could look like once the pandemic becomes less of a determining factor

for the global economy.

Installs EMEA last 180 days

Installs

Regional differences - Europe vs. the Americas

Installs Americas last 180 days

Installs

Dec Jan Feb Mar Apr May

Dec Jan Feb Mar Apr May

Mobile Travel Trends 2020 5

Here’s the Mobile Travel Trends report in three points:

The top takeaways

Though when people travel is no secret, how they book has become something more of a mystery. The report highlights when people book, but with so many touchpoints including webview, app and desktop, it can be difficult for marketers to figure out where to spend their efforts, and their budgets. The answer is that it’s highly regional, and marketers should consider segmenting their audiences by region to serve their chosen way of browsing better.

Mobile-based apps make finding bikes, scooters and even motorbikes incredibly easy, losing the hassle of searching for a rental shop (and potentially negotiating rates in a foreign language). One of the other benefits of getting around a new city on a bike, scooter or moto? Simple, it’s fun. App marketers who can get across the fun factor — and build a picture in their potential user’s minds about how much more enjoyable their apps are to get around can be much more effective

To prevent churn, understand what most of your users do right before they uninstall your app, and use those pain points to remind users of unexplored features or benefits of your app in real time.

Putting your users first

Keeping the fun

Retention is the new black

Mobile Travel Trends 2020 6

Methodology

Adjust data

Verticals

Verticals

App only

App, mobile web, desktop

Booking: Hotel, flight, train and all-in-one providers

Booking: Air, hotel, packages. OTAs and suppliers. Comparators excluded.

Mobility: Rideshare, ride hail and taxi services, scooters and bikes

Date range analyzed

01.01.19 - 31.12.19

Date range analyzed

01.10.18 - 30.09.19

Criteo data

Mobile Travel Trends 2020 7

Travel players with shopping apps

Where are users interacting and transacting most with travel companies and businesses? We partnered with Criteo to define the pattern of online touchpoints, analyzing the traffic of travel players that offer a shopping app 1. With the average cost of vacations reaching $4,700, are consumers willing to spend on mobile, or are they spending their time browsing on the small screen before buying big? Criteo data tells a surprising story.

Travel traffic by channel

Travel bookings by channel

0% 10% 20% 40%30% 50% 60% 70%

Worldwide

Worldwide

Americas

Americas

EMEA

EMEA

APAC

APAC

App Mobile Web Desktop

Every journey begins with a click

0% 10% 20% 40%30% 50% 60% 70%

App Mobile Web Desktop

Mobile Travel Trends 2020 8

KEY FINDINGS

• APAC is app-first, even when it comes to booking travel. The majority (63%) of bookings took place in apps, compared to 13% on the mobile web and 24% on desktop.

• Worldwide, mobile accounts for 74% of traffic, and 64% of bookings.

• The larger the purchase, the more likely it will be made on a desktop. However average booking values are also slightly higher in apps than on the mobile web.

Such behavior is unsurprising, says Florent Maillard, Senior Manager, Insights & Analytics at Criteo:

1 Data here only applies to Travel players with a booking app, OTAs and Suppliers combined, excluding comparators,

over Q3 2019 (Criteo Data), and does not reflect the share of App/Mobile web overall in travel.

To boost the quality of your audience traffic, Florent recommends running app install campaigns that target travelers checking flight statuses or hotel deals on their desktops (or mobile web). Enhancing this with messaging that promotes a higher-quality experience ensures the app becomes a travel companion, thus building longer-term loyalty and increasing the chance of more bookings in future.

Florent Maillard, Senior Manager, Insights & Analytics

“ The average booking value of packages is higher than other

travel categories. We find that packages have a lower share

of bookings on mobile devices, as consumers prefer to browse

and compare between multiple tabs. When booking two

weeks of vacation for an entire family, it is more likely to use

a desktop than a smartphone to place the final order.”

Mobile Travel Trends 2020 9

50

50

40

40

30

30

20

20

10

10

0

0

Booking app Growth Score per region

Mobility app Growth Score per region

South America

South America

North America

North America

Europe

Europe

Middle East

Middle East

Asia Pacific

Asia Pacific

Of all verticals, travel is thought of as the most affected by seasonality. Predictably, users are most active in spring and summer, when there’s plenty of leisure time to plan holidays and trips. But do app downloads also correspond to the trend? This is what our Growth Score 2 details below.

January

January

February

February

March

March

April

April

May

May

June

June

July

July

August

August

September

September

October

October

November

November

December

December

Do seasons impact how users get around?

Mobile Travel Trends 2020 10

KEY FINDINGS

• The Booking app Growth Score was flat across 2019. While in users in MENA cycled through travel apps faster in early 2019, other regions remained flat, with an average Growth Score of 20.72 across the year.

• Mobility apps saw a peak in June, as users in the U.S. took to bikes, scooters and taxis to get around. The Growth Score hit a record 53.45 during this time — the highest of all.

• Mobility apps saw a slightly higher Growth Score average overall, at 28.52 vs. Booking’s 23.37.

Surprisingly, Booking apps see level installs almost all-year-round. This proves that even if users aren’t flying away, they’re still thinking about what to book next — with booking accommodation and booking a flight the top two and three most-used features of a travel app, according to Travelport.

Meanwhile, mobility apps are more affected. Though some firms don't see the cold as a real threat, marketers need to take action to stabilize in winter, and capitalize on users who’ve already installed the app over the summer.

2 Calculating by the number of installs divided by monthly active users

" Seasonality used to be the main driver of travel industry

planning. However, the change in the location preferences and

increasing impact of diversified travel cohorts like ‘bleisure’

travellers, means seasonality is now less important than before."

Orkun Ozbatur, Founder and CEO

Mobile Travel Trends 2020 12

The best times to buy

Highs and lows across the calendar year indicate travel apps are significantly impacted by seasonality and second nature for users planning their next getaway. Whether users are planning post-holiday escapes or extended weekends away, and from leisurely vacations to scheduling business trips, interest in travel is continuous, and growing.

1 4 0 2

Mobile Travel Trends 2020 13

Noting the increase in Nordic countries, Florent explains the link to user behavior patterns: “Once consumers are done with retail and Christmas gifts, they transition into booking travel with family and friends.” As traffic increases, he says, bookings surge a few days later, with Scandinavia, the Netherlands (and the U.K.) all seeing the largest increase in bookings during the first week of January.

Travel booking by region

50%

100%

150%

0%

-50%

-100%

08.Oct.18

08.Nov.18

08.Dec.18

08.Jan.19

08.Feb.19

08.Mar.19

08.Apr.19

08.May.19

08.Jun.19

08.Jul.19

08.Aug.19

08.Sep.19

APAC

Americas

EMEA

KEY FINDINGS

• Compared to the average in Q4, January and February see a surge of bookings as the holiday season is over. This is particularly notable in Scandinavia, where users are eager to get away as the cold sets in. This is evident in Criteo’s data that shows bookings increase by nearly a third (32%) from December to January.

• Bookings reach their peak during July and August, a period when Booking apps chalk up 47% more

bookings compared to Q4 2018 in the previous year. Significantly, EMEA sees 2X the total amount of bookings in July, indicating users there are willing to spend more to enjoy their leisure time.

• Bookings surge after traffic increases, as travellers research before they buy. This behavior offers marketers an opportunity to retarget and re-engage.

Mobile Travel Trends 2020 14

Booking app paid installs per month

Mobility app paid installs per month

Adjust data reveals that users are discovering travel apps via paid marketing at rates far higher than elsewhere. This finding appears to dovetail with research by eMarketer, who found that “travel advertising growth is slightly outpacing the growth found in other verticals.” This trend, says eMarketer, is thanks to increased competition and a strong economy, which pushes companies to spend more on user acquisition.

50%

50%

40%

40%

30%

30%

20%

20%

10%

10%

0%

0%

January

January

February

February

March

March

April

April

May

May

June

June

July

July

August

August

September

September

October

October

November

November

December

December

70%

70%

60%

60%

iOS

Android

iOS

Android

Table stakes

Mobile Travel Trends 2020 15

• Android users are discovering Booking apps via paid marketing at immense rates, peaking at an astounding 62% in October 2019. The year averages at a robust 54% for Android — over half of installs.

• Mobility apps also see a far higher number of installs from paid sources on Android (33%) vs. iOS (17%). Android Mobility apps peaked in March at 44%.

• In total, 42% of Booking app installs came from paid activity. For Mobility apps, this figure was 36% lower (at 27%).

eMarketer finds that “travel will account for 8.4% of total US digital ad spend in 2019”. As of today, mobile accounts for 70.1% of the total. The most popular type of campaign? Search, which is predicted to account for 54% of total travel digital ad spend. With users more primed for visual discovery, marketers need to maximize their spend in places that offer map services, as well as other travel discovery portals.

KEY FINDINGS

Mobile Travel Trends 2020 16

According to Travelport’s survey of travel marketers, improving holiday-maker engagement and retention is their highest priority, with a staggering 43% of respondents citing it as their top concern. The next best — more direct sales — concerned fewer of those surveyed: just 17%. In an era of maximizing customers, are customer retention rates as strong as the buzz around them? Adjust data shows us that travel marketers have a steep hill to climb.

Easy come, easy go

Retention rates by install source

15%

20%

25%

10%

5%

0

Booking - paid Mobility - paidBooking - organic Mobility - organic

1 7 13 194 10 16 22 262 8 14 205 11 17 23 273 9 15 21 256 12 18 24 28 29 30

Day after install

Mobile Travel Trends 2020 17

• Booking and Mobility apps retain 20% of users on Day 1, a relatively low figure at 35% less than the global average of 31%.

• You could predict Mobility’s retention rates to be higher than Booking over the long tail, but organically acquired Booking app users stick around slightly longer.

• Booking app’s paid campaigns are paying off, with the highest retention on Day 1 after install.

For Booking apps, Day 1 retention is vital for getting those users with uncompleted purchases back. CleverTap’s Travel Industry benchmarks show that booking abandonment rates reach 78.6%. Marketers will want to closely monitor post-install behavior to correctly engage with audiences, and find the reasons behind the drop-off.

KEY FINDINGS

“ The best recommendation that I can make is: test, test, test. For

advertisers, incremental ROAS is the biggest question we could

have. Whether paid or unpaid, we always make sure to measure

incremental revenues to find an answer to the question of how

and where we should scale retargeting.”

Cornelia Müller, Head of CRM & Audiences

Mobile Travel Trends 2020 18

Day 7

Day 1 and day 7 retention rates by month

Day 1

For apps affected by seasonality, it’s worth finding out how retention fluctuates month-to-month. The graph highlights Day 1 and Day 7 retention between January and December to reveal the highs and lows of user churn.

An app for all seasons

15%

20%

25%

10%

5%

0

Mobility

Mobility

Booking

Booking

20 4 6 8 10 12

Mobile Travel Trends 2020 19

• Retention rates are highest for Booking apps between June and September, overtaking Mobility apps over the Summer break.

• Mobility app retention falls from September on, as the cold begins to set in and international travel begins to dwindle.

• By Day 7, retention stabilizes, with activity deviating at around ~2% from one month to the next.

One ambitious idea to improve retention: AI. Booking.com is predicting apps will apply AI to their offerings, providing destination recommendations based on historical data. Meanwhile, 44% of respondents to the Travel Predictions 2020 survey “will use an app that allows them to pre-plan their activities” and 59% “of global travelers saying they want tech to offer them ‘wildcard’ and surprise options that would introduce them to something entirely new.” Being able to curate travel destinations based on previous trips, combined with a tool to get users away from the crowds could be the next big deal in a travel marketer’s strategy set.

KEY FINDINGS

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Founded by a small group of great minds at a start-up incubator

in Paris, Criteo has become a global leader in commerce marketing. Driving

this growth: machine-learning technology, data and performance at scale,

and measurable ROI for our clients, as well as the ingenuity and spirit of 2,800

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Want to find out more? Contact us now and learn what we can do for you.

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