Johanna Bonhill-Smith, travel and tourism analyst, GlobalData, commented, “Revolut’s app allows travellers to book accommodation ranging from B&Bs to luxury lodges, as well as offering payment end solutions and currency exchange rates without fees. The online travel space is dominated by large industry brands such as Booking Holdings, Expedia Group and TripAdvisor. Booking Holdings has been working towards its end-to-end booking solution as a ‘connected trip’ for some time but it has not yet come to fruition. Revolut may have seized a market opportunity at the right time.”
Various factors are likely to aid the app’s success, with the most important factor being the high demand for travel. GlobalData’s Poll found that demand is highest for domestic trips (43 percent) in this year. However, travelling to a different continent (37 percent) and other countries in the same continent (29 percent) is also high. Even though international travel restrictions threaten international travel’s recovery this year, the domestic market will continue to prosper. Since the app covers all market bases, this is not likely to interfere with Revolut’s popularity.
Bonhill-Smith continued, “Revolut already has a large existing customer base. It currently has 16 million global users and was recently valued at USD33 billion in its last funding round, demonstrating its competitive stance within the marketplace.”
After booking through ‘Stays’, customers will be awarded up to 10 percent cashback. Price and value currently play the largest role in booking hotel/accommodation for 47 percent of respondents, according to a survey by GlobalData. Therefore, any form of saving and ‘value for money’ will be welcomed by consumers, and could make booking through Revolut more attractive.
Bonhill-Smith added, “Throughout the pandemic, consumers have been spending more time online. GlobalData’s Q2 2021 consumer survey revealed 35 percent of respondents are more frequently spending time online and 12 percent have started doing this over the last three months as a result of the COVID-19 pandemic. This means consumers are more confident in making transactions online and may be more inclined to use a server that holds end-to-end solutions in the booking process, which bodes well for Revolut’s new venture.”