What are the revenue implications of mobile channel visits? Evidence from the online travel agency industry

Retailers increasingly advocate mobile devices as a source of improvement and ultimate transformation of business performance. This study examines: (1) the different effects of mobile visits vs. desktop visits on firm revenue; and (2) which type of mobile visits are more effective - direct vs. search engine and referral traffic; and higher vs. lower involvement product categories. Unique data collected from a leading online travel agency in China show that, compared with desktop visits, mobile visits have a shorter wear-out time but greater short-term effects on firm revenues. Furthermore, the mobile channel has a greater short-term effect on firm revenues for search engine traffic and low-involvement products. These findings suggest the importance of understanding how mobile channel value is created. Based on the findings, marketers can save on costs by carefully designing their mobile channel and multichannel campaigns.