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15 Benefits of Embedded Connectivity for Companies in the Travel Industry

22 Aug 2023 7 min read

In today’s digital world, staying connected while travelling has become essential for both travellers and travel companies. The introduction of eSIMs and the many benefits of Embedded Connectivity has revolutionised how we approach connectivity during our journeys. eSIM technology allows users to enjoy seamless, hassle-free mobile connectivity without the need for physical SIM cards.

In this blog post, we will explore the numerous advantages of Embedded Connectivity to travellers and companies in the travel industry.

 

What is Embedded Connectivity?

Embedded Connectivity is the capability of providing connections to the internet or between end users, which can be achieved through eSIMs. And eSIMs are digital SIMs that are embedded physically within a mobile device.

The Internet has had a massive impact on the way people travel. Consumers have drastically changed how they use their data abroad. Not only are they using their smartphones for travel information, but they’re also booking flights, hotels, and tours online with just a tap of a button.

Embedded Connectivity has the potential to become a game-changer for the travel industry, and ignoring its growing importance could do more harm than good.

 

 

Benefits of Embedded Connectivity for Travellers

  • Seamless mobile connectivity:
    • With eSIM, travellers can stay connected to reliable networks in their destination country without the need to manually switch SIM cards, rely on public Wi-Fi or incur sky-high roaming charges. eSIMs, also known as digital SIMs, ensure a smooth and uninterrupted mobile experience throughout their journey.

 

  • Easy to purchase, activate, and use – All online:
    • Travellers can purchase and activate eSIMs directly online from their mobile devices, eliminating the need to visit a physical store or swap physical SIM cards. This convenience makes it incredibly easy for users to stay connected from the moment they land in a new country.

 

  • No global roaming charges:
    • Traditional roaming charges can quickly add up and become an unexpected burden for travellers. Embedded connectivity offers cost-effective local data plans, eliminating the fear of bill shocks and reducing expenses. In fact, Deloitte reported that travellers spend more than €12 billion annually on alternatives to mobile data roaming, including €6 billion on hotel Wi-Fi.

 

  • No need for multiple phones:
    • eSIM allows users to use multiple phone numbers on the same device, making it a perfect solution for business travellers or those who need both a personal and local number. For Apple devices, it’s possible to hold up to 8 eSIM profiles.

 

  • No need for local SIM cards:
    • Instead of hunting for local SIM cards upon arrival, travellers can simply download an eSIM profile and enjoy local data plans immediately, saving time and effort. No need to struggle with a language barrier to be able to buy a SIM from a kiosk.

 

  • No need to rely on public Wi-Fi:
    • Public Wi-Fi networks can be unreliable and risky. With eSIM, travellers can avoid unknown networks and maintain a secure connection to their mobile data, without risking their personal data and safety. Forbes found that 40% of respondents had their information compromised while using public Wi-Fi and the majority had their information compromised whilst using an airport or restaurant public Wi-Fi.

 

40% of respondents had their information compromised while using public Wi-Fi and the majority had their information compromised whilst using an airport or restaurant Wi-Fi.

 

  • More secure than traditional SIM cards:
    • eSIMs offer enhanced security measures, reducing the threat of device theft or loss. Contrary to eSIM, a traditional plastic SIM card is easy to remove and discard after the device has been stolen. eSIMs make the device easier to find and more difficult to sell in the same circumstances.

 

  • Better user experience:
    • The seamless activation process and uninterrupted connectivity provide travellers with a better overall mobile experience, enhancing their travel journey. Which can keep them coming back for more. According to Accenture, 26% of businesses that focus on “connectivity across all customer-facing functions” are more likely to achieve high levels of customer satisfaction.

 

Benefits of Embedded Connectivity for Travel Companies

  • Revenue Boost
    • By offering eSIM solutions, travel companies can generate additional revenue streams through the sale of eSIM data plans and connectivity services to their customers. Kaleidoscope Intelligence found that travel eSIM providers will see retail spending on such services increases by 500% over the next 5 years. This’ll catapult the global travel eSIM market to be worth close to $10 billion in 2028 while taking into account over 80% of total travel SIM spend by then. On top of this, according to IdeaWorksCompany, airlines experience a 20% increase in ancillary revenue per passenger after offering ancillary services during the booking process. This clearly shows the potential success of eSIMs as an ancillary service.

 

Travel eSIM providers will see retail spending increase by 500% on such services over the next 5 years. Showing the potential benefits of Embedded Connectivity

 

  • Opportunity for differentiation
    • Even though the potential of Embedded Connectivity in the travel industry is apparent, only a handful of travel operators offer it as of now. Providing Embedded Connectivity sets travel companies apart from competitors, offering a unique selling point that appeals to tech-savvy travellers seeking convenience. According to HighSpeedInternet, 81% of travellers consider internet access to be “essential” or “very important” for their trips.

 

81% of travellers consider internet access to be "essential" or "very important" when choosing their travel destination.

 

  • Easy to implement
    • Embedding connectivity is a very short and simple process. It takes around 2 weeks to be completed and doesn’t require any heavy work or investment. Making it a perfect addition to travel products. Additionally, eSIM adoption allows travel companies to embrace a fully digital process. Simplifying customer onboarding, managing connectivity remotely, and reducing administration overheads. Making the whole process easier to manage. According to Accenture, 26% of businesses that focus on “connectivity across all customer-facing functions” are more likely to achieve high levels of customer satisfaction.

 

  • Increased user loyalty and retention
    • By offering hassle-free connectivity, travel companies can enhance customer satisfaction, leading to improved loyalty and increased chances of repeat business. Forrester Research estimates that each US airline leaves as much as $1.4 billion in annual revenue on the table. All by not making improvements to their customer experience.

 

Each US airline leaves as much as $1.4 billion in annual revenue on the table by not making improvements to their customer experience.

 

  • Global eSIM support
    • eSIM technology is becoming more widely adopted worldwide. Enabling travel companies to provide seamless connectivity options to customers regardless of their destination. 46% of all countries supported eSIM as of June 2022. Additionally, about 45% of travellers choose to spend more by adding services during their booking process.

 

  • Futureproofing
    • The eSIM market is expanding rapidly and being an early adopter positions travel companies to cater to the increasing demand for this innovative technology. The global eSIM market size is expected to reach USD 17.5 billion by 2030 and retail spend on travel connectivity services, including roaming packages and travel SIMs, will be worth over $30 billion by 2028.”

 

  • Growing customer awareness of eSIM
    • Thanks to Apple’s release of the eSIM-only iPhone 14 in the US and rumours of an eSIM-only iPhone 15 in Europe, consumer awareness has significantly increased. Making it more appealing to a broader audience and pushing telecom operators to catch up. In 2021, the number of eSIM-capable devices shipped worldwide in 2021 approximately 350 million devices and is projected to increase to 14 billion devices by 2030.

 

Conclusion

eSIM is transforming the travel industry. The benefits of Embedded Connectivity are advantageous to both travellers and the travel industry. For travellers, eSIM ensures a seamless and secure mobile experience that’s affordable and hassle-free. On the other hand, travel companies stand to gain from increased revenue, customer loyalty, and a competitive edge by embracing this cutting-edge technology. As the eSIM market continues to grow, companies in the travel industry must seize the opportunity to provide enhanced connectivity solutions and elevate the travel experience for their customers. By embracing the eSIM revolution, travel companies can futureproof their services and stay ahead in an increasingly connected world.

Our Connectivity SDK is the perfect solution to help travel companies step into the world of eSIM. It’s a plug-and-play solution that can upgrade your existing app with eSIM technology within a matter of weeks. Click here to find out more or contact us now for a demo!

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