Unlocking the Travel eSIM opportunities for operators: Insights from Ann Heyse

The Travel eSIM market represents a transformative opportunity for mobile network operators (MNOs). In our latest blog, we explored the fundamentals of Travel eSIM, highlighting key insights MNOs need to understand about this rapidly growing market. As global travellers demand flexibility, convenience, and affordability, operators must explore innovative ways to capture this burgeoning segment while navigating challenges like competition, fraud, and the potential disruption of traditional roaming revenues.

To uncover insights into these dynamics, we spoke with Ann Heyse, Global Telco Solutions Manager at BICS, about the critical role operators can play in shaping the future of Travel eSIM. From strategic partnerships to emerging regulations, Ann sheds light on what it takes to succeed in this competitive yet promising landscape.

The market for Travel SIM/eSIM is forecasted to reach USD 8.8 billion by 2030 and by 2028 nearly 4 billion smartphones are projected to support eSIM. Although several individual Travel eSIM brands have experienced exponential growth over the last 2-3 years, extensive research indicates that customers prefer to purchase roaming connectivity from a trusted brand, such as a mobile operator they recognize from their home country. Additionally, consumers typically buy their roaming packages a few days before traveling. Therefore, if operators find the right channels to offer competitive roaming packages to their market (not just their existing customers), they could capture a significant portion of the market.

There are different ways operators can play a role in the Travel eSIM market. Firstly, they can negotiate and offer competitive roaming rates to Travel eSIM aggregators in exchange for a commitment on volumes. We understand from several mobile operators that they prefer not having to deal directly with all travel eSIM providers and prefer to work with a trusted aggregator like BICS.

Secondly, more operators are now offering their own Travel eSIM through a website or an app. Some choose to launch a sub-brand, while others use their existing brand or incorporate the Travel eSIM offering into their current app. or customer website They either combine their own roaming footprint and rates with those of a roaming provider through sponsored roaming or opt for a full turn-key solution with multi-lingual support. This solution includes the roaming connectivity component, benefiting from the better rates offered by local operators. For example, this enables travellers from outside the EU to access low EU-regulated data rates when visiting Europe. This is possible because most roaming aggregators have European mobile operators as sponsors with a lot of negotiation power.

Furthermore, Travel eSIM brands offer a wide variety of packages per destination. Most operators do not have the tools or resources to craft and manage all these packages which can be very expensive and cumbersome. Here again, an operator can choose an out-of-the-box solution from a roaming provider and set up their own Travel eSIM solution in just a few weeks.

Travel eSIMs offer several additional revenue opportunities for MNOs beyond just providing connectivity:

• Data analytics: Operators can gather valuable data on travel patterns, popular destinations, and user behaviour. This data can be used to create targeted marketing campaigns and personalized services.
• Value-added services: MNOs can create new revenue streams through services such as travel insurance, foreign exchange services, and car hire, as an add-on to their Travel eSIM offering.
• Corporate travel solutions: By offering tailored Travel eSIM packages for business travellers, operators can cater to the needs of corporate clients, providing reliable connectivity and cost-effective solutions for their employees.

These opportunities can help MNOs diversify their revenue streams and enhance the overall travel experience for their customers.

Travel eSIM solutions may seem like a threat to existing roaming revenues, but the reality is that MNOs are already losing roamers to third-party Travel eSIM providers or roamers switching off their smartphones. The key is to act strategically and turn this potential risk into a significant growth opportunity. Here’s how:

• Target silent roamers: Many travellers avoid using roaming services due to high costs and instead rely on free Wi-Fi. Affordable Travel eSIMs give operators a chance to capture this untapped segment, generating new revenue streams from customers who would otherwise contribute nothing.
• Introduce tiered pricing models: Operators can introduce tiered pricing models for Travel eSIMs, providing different levels of service to cater to various customer needs. This way, they can attract budget-conscious travellers while still offering premium options for those willing to pay more.
• Create bundled Offers: Combining Travel eSIMs with other value-added services such as travel insurance, foreign exchange, or local attractions discounts can create a more attractive package for travellers and differentiate the operators from pure eSIM providers.
• Leverage loyalty Programs: Leveraging loyalty programs to offer Travel eSIMs as rewards or at discounted rates can incentivize customers to choose the operators Travel eSIM over other options.
• Invest in market education: Educating customers about the benefits of Travel eSIMs, such as convenience, ease of use, and cost savings, can help shift their preference towards the operator’s solution.

By adopting these strategies, operators can not only protect their existing revenues but also unlock new opportunities in the growing Travel eSIM market. The key is to act decisively before the competition captures more of this valuable segment.

Partnerships with airlines, travel agencies, and online travel agency platforms are of great importance because they help reach a larger audience.

Airlines, travel agencies, airports, and online platforms have extensive customer bases that can be tapped into, increasing the visibility and adoption of Travel eSIMs.

• Seamless customer experience: Integrating eSIM offerings into the booking and travel planning process is an added convenience to travellers. For example, offering a Travel eSIM as an add-on during flight bookings or through travel apps makes it convenient for customers to purchase and activate their eSIM before their journey begins.
• Targeted marketing: Airlines and travel agencies can offer personalized eSIM packages based on travel itineraries, destinations, and customer preferences, enhancing the relevance and attractiveness of the offers.
• Increased credibility: Collaborating with well-known travel brands adds credibility to the eSIM offerings. Travelers are more likely to trust and purchase eSIMs from their preferred airlines or travel platforms, which can enhance customer trust and loyalty.
• Bundled offers: These partnerships allow for the creation of bundled offers that combine connectivity with other travel services. For example, a Travel eSIM could be bundled with travel insurance, hotel bookings, or car rentals, providing added value to customers.

Global initiatives and regulations play a crucial role in the adoption and success of eSIM technology for travel. Some key factors are:

• Standardization: Global standard specifications for eSIM technology ensure compatibility and interoperability across devices and networks. This universal acceptance facilitates seamless connectivity for travellers using eSIMs. We know that more and more regulators, especially in Asia will be adopting eSIM technology next year.
• Consumer protection: Regulations that protect consumer rights and ensure data privacy can increase consumer confidence in using eSIMs for travel. This is particularly important for international travellers who may have concerns about data security.
• Environmental initiatives: Global efforts to reduce e-waste and promote sustainability align well with the eSIM technology, which eliminates the need for physical SIM cards. This eco-friendly aspect can be a strong selling point for environmentally conscious consumers.
• Real-name registration: In quite a few countries real-name registration is mandatory; e.g Brazil, Argentina, Egypt, Nigeria, South-Africa, many countries in Asia and few in Europe. However, these regulations are becoming more lenient.

By supporting these global initiatives and adhering to regulations, MNOs can enhance the adoption and success of eSIM technology, providing travellers with reliable, secure, and convenient connectivity options.

Entering the Travel eSIM market in one way or the other is a must and can be a game-changer for mobile network operators. Here are some key pieces of advice to help you succeed:

• Understand the market: Conducting thorough market research is important to understand the needs and preferences of travellers. That way you can identify key target segments, such as frequent travellers, business travellers, and digital nomads, and tailor your offerings accordingly. Business Intelligence tools can help you get a better understanding of the volume of silent roamers and roaming behaviour.
• Competitive pricing: Offer competitive pricing to attract travellers who might otherwise choose other eSIM providers or rely on free Wi-Fi. Consider tiered pricing models that provide options for different levels of usage.
• User-friendly experience: Ensure the eSIM activation process is simple and straightforward. A seamless experience, from purchasing to activation, will increase customer satisfaction and loyalty.
• Partnerships: Form strategic partnerships with airlines, travel agencies, and online travel platforms. These partnerships can help you reach a broader audience and provide bundled offers that add value to your eSIM services.
• Value-added services: Enhance your Travel eSIM offerings with value-added services such as travel insurance, local guides, and discounts on local attractions. This can differentiate your service from competitors and provide additional revenue streams.
• Strong security measures: Implement robust security protocols to protect against fraud and misuse. Ensure that customers feel safe using your eSIM services, especially when traveling abroad.
• Customer support: Provide excellent customer support, available 24/7, to assist travellers with any issues they may encounter. Offering support in multiple languages to cater to a global audience is also key.
• Marketing and awareness: Invest in marketing campaigns to raise awareness about your Travel eSIM offerings. Highlight the convenience, cost savings, and seamless connectivity that your eSIM provides.
• Leverage data analytics: Use data analytics to understand customer behaviour and preferences. This can help you refine your offerings, target promotions, and improve overall service quality.
• Regulatory compliance: Ensure that your eSIM services comply with local regulations and standards in the regions you operate. This will help avoid legal issues and build trust with your customers.

By focusing on these areas, MNOs can successfully enter and thrive in the Travel eSIM market, providing valuable services to travellers and generating new revenue streams. If they don’t act fast enough; they will see a huge impact on their roaming revenues and a decrease in customer loyalty.

Want to know more? Discover our Travel eSIM solution for MNOs.