CASE:WILL MOBILE TECHNOLOGY PUT ORBITZ IN THE LEAD?
1. How important is mobile technology in Orbitz’s business strategy ? Why ?
Based on the case study given, the mobile technology is very important for Orbitz’s business strategy. Why ? This can be explain by the beginning of Orbitz company established, Orbitz distinguished itself as a leader in mobile technology. With the mobile technology as their important business strategy, Orbitz can reduce significantly their cost thus it also brings a lot of benefits to their customers. The number of people who book the hotel with mobile devices is growing every day. Mobile booking nowadays, is a booking through special applications or mobile versions of the sites. Today that kind of reservation is especially in great demand among business traveler. Travelers very appreciate the mobility and the ability to solve problems “here and now”. With mobile applications Orbitz.com and mobile version of the site, they can easily book a room, rent a car or buy an airplane ticket, regardless of location, and thus quickly adapt to changing circumstances or be able to change their schedule. Also in many conditions, it saves their time and provides maximum comfort and convenience when selecting destinations. Orbitz also can identify which is their consumer is constantly using the smartphones or tablets when travelling. By looking in this importance, Orbitz launched different apps for iphone, android and window. From the beginning 2001 to 2012 Orbitz always kept a close look on their mobile technology development of their website. In the year 2010 they first launched android and window based apps. iPhone application was launched few years before this in 2008. In 2010 they launched another upgraded version of their IOS application. They mainly started these different applications to make their customer experience better with them as these apps are more user friendly, easy and faster.Different apps based on different mobile operating system creates a uniqueness in the app and easier to operate.Though they had to incur some extra expenses to build and launched these apps but with the upgrading technology they had to update their services.
2. What people, organization, and technology issues did Orbitz need to address in its mobile strategy ?
People
A single traveler or a group of traveler nowadays depends on mobile technology to book hotels, rent a car, looking for a map for certain location. Mobile phones are designed to make life easier for the advanced active people. Such people often take all decisions instantly. Moreover their plans can dramatically vary. That is why they use the cell to make a reservation for the same day as such device is now familiar to everyone. Obviously, the regular e-commerce version of web sites is more convenient for usage, but for the Orbitz mobile strategy, their concerns for their consumer which constantly depends on mobile technology. Besides that, this mobile technology is more friendly-user. Orbitz is confident about their mobile website can provide fantastic search and booking abilities for the corporate customers and their looking for a loyal customer.
Organization
Business organization and travel agency is a part of issues did Orbitz need to address in its mobile strategy. For example, corporate traveler must adhere to company specific business logic rules, which can include such features as preferred vendors, cost changing, mandatory services and others. Thus the platform must be able to store and operate with these rules. As big percentage of Orbitz m-commerce customers are business people it is very important to have а online reservation system that include business logic. Due to а fact that every company has its own business logic rules mobile commerce platform should be customized for every firm specifically. To solve this issue, Orbitz decided to construct а mobile Web site that could be accessed from any web-enabled device. In this situation all business clients could enter their firm’s password and all the business logic rules would apply automatically.
Technology
Orbitz is very concerns with technology nowadays that rapidly changing day by day. It can be shown in 2011, the m-commerce site again upgraded to respond to swiping gestures, expedite touch screen transactions, and accommodate the small screen size of any Web-enabled mobile device. Another thing was that Orbitz released the newest version of Hypertext Markup Language, HTML5. It enables m-commerce sites to incorporate capabilities identical to mobile apps simply by tapping into the mobile devices. The mobile transaction speed was through the implementation of global online travel agency platform. The platform was used to speeding up mobile web pages loading from the standard e-commerce web page. Not only can improve the speed of browsing, but also can reduce labor hours for company. Overall, it is beneficial for both company and customers that urge Orbiz management decide to construct mobile web site for corporate users rather than a native app.
3. Why are mobile phone users much more likely to book same-day hotel room and airline reservations?
Orbitz also instituted mobile exclusive same-day deals, called Mobile Steals, available both on the m-commerce site and through the Hotels by Orbitz app available for iPhone and Android devices. Proprietors are able to fill rooms that might otherwise remain vacant, and consumers save up to 50 percent of the standard rate. While only 12 to 14 percent of traditional e-commerce Web site shoppers want to reserve a room for the day on which they are searching, smartphone and other mobile users book for the same night between 50 to 62 percent of the crime because they are more likely to be traveling and need a room at last minute.
Orbitz touts the ability to book a hotel room in just three taps. The new mobile Web site has produced a 110 percent increase in visits, a 145 percent increase in the conversion rate, and four times the number of transactions compared to the original Orbitz m-commerce site. Orbitz has been focusing on lodging because hotel bookings are more profitable than airline reservations. Priceline.com, the largest and most profitable online travel agency, generates approximately 90 percent of its sales fron hotels. Orbitz only had 27 percent of revenue from hotels in 2011.
The number of steps required to search for and make reservations so that the entire process can take place on the mobile device without redirecting the users to hotel, airlines, or car rental Web sites to complete the transaction. Orbitz now has apps for the iPhone ,IPad ,iPod Touch, Kindle Fire, and Android devices.
4. What the role does Orbitz for business play in the company’s business strategy?
Chris Brown, Orbitz vice president, the ability to be a major player in the rapidly escalating m-commerce market will play off. Increased transaction speed provided by Orbitz mobile apps will attract new customer, especially those trying book same day reservations.Orbitz went first-to-market with an m-commerce site designed specifically for business users. The opportunity was huge, since most business travellers carry smartphones or tablets. Corporate travellers typically must adhere to company rules specifying preferred vendors, cost limits, mandatory services, and expense documentation. The Orbitz for business mobile Web site delevers the same set of tools enjoyed by the consumer market while incorporating features that enable business travellers to adhere to company guidelines.
But the other online travel players also believe consumers will increasely move to mobile to make their travel plans, and they also have been making larges investment in mobile Web sites, search tools, and apps. Priceline and TripAdvisor have rated highest in providing an engaging, enjoyable experienced on their sites and both continue to enjoy much stronger growth in unique visitors and visits than Expedia and Orbitz.
5. How successful is Orbitz’s mobile strategy? Explain your answer.
Orbitz made many enhancements to its mobile service. It enable mobile users to view averages wait times for airport security lines, locate available Wi-Fi service at airpots, compute check-in delays and taxi line wait times, and view weathers and traffic conditions. GPS and improved search capabilities enable consumers to locate nearby hotels and conducts price, distance, and rating comparisons, to compare flights and car rentals based on various customer reviews.Only Orbitz has a team of in-house travel expert, including former air-traffic controllers, who proactively monitor the conditions that affect travellers from weather and traffic disruptions to flight change and more. Besides that, expertise that helps program take flight likes get information and seasoned professionals with years of corporate travel industry experience whose mission is to provide superior service and expert insights.
Next, business travel made smarter like count on our innovative business travel solutions to deliver the latest technology, intuitive interfaces and ultimate flexibility to power smarter choices that save time and money. Online, offline and on the go, Orbitz for business helps keep your travellers productive.
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