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By 2022, 9 in 10 airline ticket purchases to be mobile influenced: Facebook-KPMG report

Devika Singh     September 7, 2018

A recently released report by Facebook and KPMG says that by 2022 around 9 out of 10 airline ticket purchases and hotel bookings in India will be influenced by mobile. This would create $19 billion and $12 billion sales opportunities for airline and hotel brands, respectively.

The report, which has been authored by KPMG in India and is based on primary research and insights from a survey conducted by Nielsen, claims that nearly half the total consumer loss in airline ticket purchases (11 per cent out of 23 per cent) and hotel bookings (16 per cent out of 32 per cent) is on account of media friction. According to the report, mobile can help airline and hotel brands reduce media friction and tap potential sales opportunities of $9 billion and $2 billion, respectively

Another finding of the survey is that the mobile-influenced process for airline ticket purchases is 24 per cent shorter than the offline-influenced process; for hotel bookings, it is 19 per cent shorter.

Titled "Eliminating friction in travel path to purchase", the report defines frictions at each stage of the travel purchase journey and highlights the significant role mobile can play to influence Indian travellers' purchase journeys.

According to the research, the top friction areas for different demographic cohorts vary and, hence, marketers need to customise their marketing strategy accordingly. Some key consumer friction areas across touch points are -- gender, age and socio-economic.

The report says that in airline ticket purchases, nearly 70 per cent of men are impacted by the friction at the top of the funnel, leading to dropouts early in the purchase journey, and they believe that the communication shared by the brands are either not clear or don't capture sufficient details. Women, on the other hand, seek more information and assistance with the purchase as they are likely to ignore advertisements on offline mediums such as print and radio.

According to the report, young prospective travellers (18-24 years old) are a lucrative customer segment for the sectors and are characterised by their familiarity with new technologies.

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