Which Travel Apps are Preparing for a Comeback?

Which travel brands are — or are not — seeing an increase in downloads and user engagement

According to recent reports from mobile app data provider Apptopia, several major hotel brands have seen an uptick in daily app usage. After household names, Marriott and Hilton, saw a 20% drop in app usage following China’s COVID-19 lockdowns, it was uncertain if or when the recovery would begin. Now, data shows that these companies may be expecting a comeback.

While many countries have lifted restrictions and begun the reopening process, consumer behavior will continue to be a strong indicator for corporations looking to rebound. Based on insights from McKinsey & Company, net consumer optimism has decreased in recent weeks. However, a few companies may be focusing on the light at the end of the tunnel.

How COVID-19 Affected Consumer Travel

Kayak.com has been keeping an eye on travel restrictions by country, with an interactive map that has live updates each day. The map shows which countries have implemented entry restrictions by air, noting 118 countries to be completely closed. But, what does ‘completely closed’ mean, exactly? Here’s how the travel site has explained their distinctions:

• Completely closed (118 countries). Only citizens, residents returning home, or people in other special circumstances may enter the country.
• Partially closed (65 countries). Entrance into the country may depend on the traveler’s citizenship, point of origin, or other specific regulations.
• Reopening soon (11 countries, +4 from 06/24/2020). The country has announced a specific date for reopening, but certain entry requirements may still apply.
• No restrictions (24 countries). The country has no formal entry restrictions in place, but is still monitoring the situation and may have other travel advisories in place.

Based on this information and Boeing CEO’s recent assertion that air travel isn’t likely to rebound for another two to three years, consumer travel will continue to remain in flux. Yet, there may be a few indicators that some travel apps can expect a partial rebound.

A few of the large hotel brands have been reporting that their depression, which began mid-January, has started to subside. Even though the CDC recently announced an increase in coronavirus cases throughout several U.S. states, could the increase in app usage mean hotel chains are ready for travel to pick up again?

Which Apps are Seeing an Increase in Downloads?

Early predictions have noted that road trips and staycations have the highest potential for a rebound. RVShare, a rental marketplace that caters to motorhomes and travel trailers, reported a 650% increase in bookings between early April and mid-May. On the flip side, airline industry experts aren’t optimistic of a comeback, despite the recent $85 billion bailout they received from the U.S. government.

Before downloads for the online travel agencies (OTAs) market took a nosedive in April and May, its year-over-year growth was up nearly 10% from March 2019. So, how will this shift affect the top travel apps in coming months and which apps are already seeing positive numbers? Let’s dive into how these companies have performed in recent weeks:

Airbnb

Although the online vacation rental company was stringent about following local guidelines and even paused short-term rentals in early April, they’ve been recovering quicker than expected. At the end of May, Airbnb’s app downloads were up 153% from March, making them one of the fastest recovering OTAs in the U.S., according to the data from Apptopia. What’s more is that the company had 5.8 million new downloads between February 15, 2020 and May 30, 2020.

Uber

In March, the California-based rideshare company began urging users to stay home to ensure their safety and the safety of its drivers who were making essential trips. As some cities announced moves to reopen last month, Uber put out a statement about its policy changes.

Even with Uber taking steps to help flatten the curve, like technology to verify that drivers are wearing a mask, the company has yet to see increased app downloads in the last 90 days.

Priceline

Considered to be another fast-recovering company amid the ongoing COVID-19 pandemic, Priceline saw 1.5 million app downloads in the last six months. And, between March 23rd and May 28th, the discount OTA company experienced a 74% increase in downloads.

JetBlue

While JetBlue’s DAUs held on through the end of April, they have seen a sharp decline since. Both JetBlue and Southwest airlines have seen a massive drop in downloads and revenue since the pandemic began. Robin Hayes, CEO of JetBlue Airways, said he doesn’t know how quickly air travel will recover. As of May 31st, Hayes announced that the company expected to be flying ~25% of their normal schedule in June but hadn’t looked out further.

Marriott

Although downloads and revenue have gone up since May, Marriott’s DAUs aren’t seeing an increase. The multinational hospitality company felt pressure before COVID-19, especially as the popularity of room and house share apps, like Airbnb and VRBO, continued to grow. Now, the hotel industry may have a chance to gain back some of the market share.

Thanks for Flying

None of us can predict the future, even financial or health experts. However, the pandemic has set off a litany of changes for the travel and hospitality industries — many of which will put consumers in the pilot’s seat. If hotel chains and airlines want to rebound quicker, they’ll need to reshape their policies, especially when it comes to flexibility in cancellations and refunds.

What are your predictions for the future of travel? Be sure to share them with the Digital Turbine team!