Entering The Next Phase Of Mobile Commerce In The Travel Industry
Mobile commerce continues to grow at a fast pace. According to eMarketer, mobile commerce or mCommerce constitutes $41.68 billion of the total $262.3 billion of ecommerce sales for 2013 or an increase of 68.2% from 2012 and accounts for 16% of total ecommerce sales. One-in-six dollars purchased on a mobile device is fantastic. But, there is still a long way to go, especially when you realize that ecommerce comprises less than 10% of total retail sales. But the good news is ecommerce is growing five times faster than traditional retail channels and mobile commerce is growing three times as fast as ecommerce as a whole.
Mobile commerce in the travel industry
It’s hard to find anyone in the travel sector who isn’t touting their mobile bookings growth.
According to a recent PhoCusWright report, U.S. Online Travel Overview Thirteenth Edition, mobile travel bookings will more than triple over the next two years, to reach $39.5 billion by 2015, this is about 25% of total online travel market.
As the cool kids say: “slow your roll, playa”.
I’m not saying that mobile bookings aren’t growing rapidly, but don’t let high growth percentages color your judgment too much. The law of large numbers still applies.
First of all, let us look at PhoCusWright’s own research. Only six months before their latest prediction, they predicted that mobile bookings were going to triple (the same number! Magic!) from 2012 to 2014. But the delta from 2014 to 2015 is “only” 50% (from $26 billion to $39 billion). It is still a fantastic growth, but much less heady than 300%.