m-tourism Challenges, Hypes, Risks and Prospects
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1 m-tourism Challenges, Hypes, Risks and Prospects Brennpunkt e-tourism, Dr. Markus Lassnig e-motion ICT-Research for the Tourism, Sport and Leisure Industries c/o Salzburg Research Forschungsgesellschaft Jakob Haringer Strasse 5/ Salzburg Applied Research and Development in ICT and New Media Salzburg Research focuses on Information- and Communications Technologies and on the productive use of New Media. Our Vision contribute to making Salzburg a leading region of the European Knowledge Society Our Mission conducting applied research at the highest quality levels in order to foster innovation We develop regional, national and European partnerships for our sponsors in order to strengthen economic and scientific progress Our core competence in Information Technology is complemented by our IT-aware Know-how in the Social Sciences Salzburg Research No reproduction without written permission. 2, 1
2 Research Themes, Products and Services Main Research Themes Service Portfolio Technology Development Services Mobile Information Systems, location based services, semantic navigation, optimisation of transport logistics Corporate knowledge models, Semantic Web Technologies, Advanced Media Management Modelling and Testing of Advanced Network Infrastructures Studies in Support of ICT Themes ICT-related Trends, Market Analyses, Roadmap exercises and Policy advice Innovation monitoring, Studies concerning New Media and ICT in Tourism, Culture and Education Salzburg Research No reproduction without written permission. 3 m-tourism What are we talking about? m means the mobile version of e-tourism Usage of ICT services via handheld devices Possibilities of contextualised, localised and personalised applications and services Location-based services Navigation / routing services Social networking etc. or simply access to websites optimised for mobile handsets Targeting tourists on location Supporting the experience economy Salzburg Research No reproduction without written permission. 4, 2
3 m-tourism Why is this relevant? Mobility is one of the mega-trends in society One of the currently biggest hypes in ICT is about smartphones Some statistics: By 2013, more people will access the Internet via mobile phones than via PC. The number of mobiles phones with browsers will be 1.82 billion compared to 1.78 billion desktop computers. (Source: Gartner 2010) In 2009 the amount of data traffic via mobile phones surpassed the traffic for voice telephony globally. (Source: Ericsson 2010) In an average week, 71 million Europeans (14% of society) use the mobile Internet with nearly one hour per day online This is more time than what they spend for reading newspapers or magazines. The numbers are even significantly higher for younger people (Source: EIAA 2010). About 10 million Germans regularly use the Internet via their mobile phones; these are about 17% of all mobile phone users. (Source: Bitkom 2010) Salzburg Research No reproduction without written permission. 5 By 2012, the portion of intensive smartphone users will rise by 83%! Source: Go-Smart-Studie 2012 Definition: Intensive smartphone users use the respective medium at least 6-7 days per week. Salzburg Research No reproduction without written permission. 6, 3
4 m-commerce and m-advertising In 2009, in Germany about 200 companies invested in 885 mobile advertising campaigns this means that the number of campaigns on mobile handsets has doubled from (Source: Bundesverband digitale Wirtschaft 2010) Hilton received a return-of-investment of 44 $ for every US-dollar invested into advertising on mobile phones. (Source: Travel Distribution Summit 2010) Every third mobile search request is made with a local intention. 15% of iphone apps are orientated locally. (Source: The Kelsey Group 2010) The volume of mobile search has quintupled in the last two years. In the same time span, Google maps for mobile devices has gained additional 50 million active users. (Source: Mobile Marketer 2010) Mobile placements are two to five times more effective in measured values like recall, awareness and intent. (Source: Dynamic Logic 2010) Salzburg Research No reproduction without written permission. 7 Provision of Wi-Fi Hotspots Availability of free Wi-Fi does influence venue choice! (64% say that Wi-Fi influences their choice of venue, 31% indicate that free access may influence their choice, and just 5% say that it would have no influence over venue choice.) By 2012, handhelds are anticipated to account for half of hotspot connects. (Source: TravelDailyNews, October 2010) Source: Salzburg Research No reproduction without written permission. 8, 4
5 Penetration of mobile radio communication in Austria Market penetration of 145%, i.e. a rise of 5% within one quarter. More than 12 mio. SIM-Cards in the market (about 7 mio. 2G and 5 mio. 3G). (Source: RTR Telekom Monitor 4/2010 (data incl. June 2010) Salzburg Research No reproduction without written permission. 9 Development of smartphone hardware Source: Displays are growing Touchscreens de facto standard Rising storage capacity Integrated GPS-chips Multiple connectivity: UMTS/HSDPA/GPRS/EDGE/ GSM/Bluetooth/Wi-Fi etc. Integrated digital cameras Numerous sensors: Digital compass, gyrometer, accelerometer, proximity sensors, ambient light sensors, NFC near field communication etc. Rising capacity of batteries Source: Salzburg Research No reproduction without written permission. 10, 5
6 Technical-organisational framework Data flat-rates for a mass market New regulation and limits for data roaming costs in EU Free Wi-Fi hotspots as alternative for data roaming for international tourists Native applications for smartphones may run online or offline (depending on connectivity or user demands) Salzburg Research No reproduction without written permission. 11 Software developments and operating systems Different approaches Operating system (OS) and hardware from one source (Apple iphone, RIM Blackberry, Palm WebOS) Licensing of OS to third parties (Microsoft Windows Mobile) Open platforms (Android, Symbian, Linux Mobile) Independent runtime environments running on different OS (Sun JavaME and JavaFX or Adobe FlashLite) Multitude of platforms as a barrier for mass market mobile apps! Incompatibilities and expenses for versioning of platforms Independent runtime environments rather unsuitable Salzburg Research No reproduction without written permission. 12, 6
7 Application stores Centralised platforms for the distribution of mobile apps Overview of new apps Download and installation with some clicks Apps with costs as well as for free Market pioneer Apple with its AppStore: Start in July 2008 Currently about 300,000 apps in store Top-seller apps with 1+ mio. downloads Followers: Google Android Market (start in autumn 2008, meanwhile 100,000 apps in store) Blackberry App World Nokia Ovi Store Palm App Catalog Windows Marketplace Source: Salzburg Research No reproduction without written permission. 13 Smartphone Market Development Globally in Q3/2010 about 340 mio. mobile phones sold rise of 14.6% compared to previous year. (Source: IDC 2010) Reason for mobile phone market growth: Smartphones! Average traffic per smartphone worldwide is expected to grow 700% by 2015! (Source: Telecoms.com 2010) Especially Android and Symbian also target a huge mass market of low-cost smartphones Decline in prices! Market shares by OS: Source: Gartner 2010 Salzburg Research No reproduction without written permission. 14, 7
8 The Rise of an Apps Culture? Source: Salzburg Research No reproduction without written permission. 15 App use ranking on a list of non-voice cell phone activities Salzburg Research No reproduction without written permission. 16, 8
9 What are the most popular types of apps? Salzburg Research No reproduction without written permission. 17 Mobile Apps Usage 10% of adult cell phone users do not know if they have apps on their phone. 35% of adults have cell phones with apps, but only two thirds of those who have apps actually use them. Apps users are younger, more educated, and more affluent than other cell phone users. 13% of adult cell phone users have paid to download an app. Among cell phone users with apps, the average adult has 18 apps on his or her phone. Among adults who have apps, age is the strongest predictor of apps use. (Source: PewResearchCenter 2010) Source: tripwolf.com Salzburg Research No reproduction without written permission. 18, 9
10 Smartphone usage and social networking Globally, about 100 mio. users (25% of all users) are using mobile products from Facebook at least once per month, and 200 mio. users have used Facebook via smartphone at least once at all (Source: Facebook 2010) In the last 6 months, YouTube-uploads from mobile devices rose by 1,700%!! (Source: mobilemarketer.com in March 2010) In May 2010, Google Latitude had more than 3 mio. active users! (Source: Google 2010) Source: Salzburg Research No reproduction without written permission. 19 Augmented Reality (AR) Applications Source: Salzburg Research No reproduction without written permission. 20, 10
11 tripwolf iphone Travel Guide incl. Augmented Reality-View Salzburg Research No reproduction without written permission. 21 Available on iphone and Android research.at Salzburg Research No reproduction without written permission. 22, 11
12 Further Augmented Reality Apps: Wikitude, Layar, Metaio, etc. Source: Wikitude.org Source: Wikitude.org Source: Wikitude.org Source: Layar.com Salzburg Research No reproduction without written permission. 23 Conclusions m-tourism is the next big thing out there the next big wave in e-tourism will be mobile! Smartphones are the best suitable platform. (No rental of any specific proprietary hardware). Location-based services are becoming a mass market. Need for geo-referenced contents! Simple adaptation of websites to be displayed on mobile devices is fine, but not enough. Added values: contextualised, localised and personalised applications and services. Paid apps are a difficult business model, similar to paid content on the Internet. m-tourism is highly interactive: Don t underestimate the upload channel of tourists! Salzburg Research No reproduction without written permission. 24, 12
13 Contact Dr. Markus Lassnig e-motion ICT-Research for the Tourism, Sport and Leisure Industries c/o Salzburg Research Forschungsgesellschaft Jakob Haringer Strasse 5/ Salzburg Salzburg Research No reproduction without written permission. 25, 13
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