Introduction
Modern technology is a reality and widespread phenomenon. Life is constantly changing with the evolution and impact of technology. The only constant appears to be the path-breaking innovations in technology. Technology and life go hand in hand. This blog will delve into the influence the tourism industry has on driving technology forward. Before getting into the details, let us look into the meaning of digital transformation. Digital transformation, by the meaning it carries, has a transformative impact on organizations.
What is Digital Transformation ?
Digital transformation refers to the use of digital technologies for elevating traditional business processes that don’t incorporate digitization. The process of digitization helps in creating digital services, meeting the demands of market trends, and reaching for customer satisfaction. With the help of digital technologies, the operations and management of businesses can improve. It refers to the constant adaptation that is required for an ever-evolving environment. Products, processes, strategies, and models of business can be optimized with digital technologies. The essence of digital transformation is the long-term planning and efforts to integrate technology into the business. As AI is playing an integral role in the efficiency of business, naturally, digital transformation will include the incorporation of AI technologies. Some key benefits include automating operations, development of innovation and products, powering sustainable operations, and offering personalized experiences to customers, bettering engagement and satisfaction.
The Role of the Tourism Industry
The tourism industry has been one of the earliest adopters of digital transformation. With the growing prevalence of ICT, tourism has implemented digitalization in business processes. Let’s look at how the tourism industry is employing digital transformation to redefine business models, operations, and customer engagement.
Tourism is changing in light of emerging smart travel facilitation, smart destinations, and new job profiles. Smart travel facilitation involves the use of technology to make travel seamless, which includes smart visas, automated security, and digital boarding passes; it increases convenience while improving security. Smart destinations implement strategies with data to achieve sustainability, accessibility, and inclusivity in the interests of both tourists and local communities. Besides, digital transformation is changing the nature of work with the creation of new technology-based jobs and expertise, while at the same time, startups and small enterprises are playing a huge role in fostering innovation and job creation.
The Impact of Tourism
Digitization of travel has paved the way for easier travels, in terms of affordability, accessibility, and convenience. According to the World Economic Forum’s Digital Transformation Initiative, by 2025 the incorporation of digitalization in aviation, travel, and tourism is expected to generate up to US$305 billion of industry value, shift US$ 100 billion from traditional players to new competitors, and contribute benefits worth US$ 700 billion for customers and society. The impact of tourism is prevalent because of its productivity caused by technology. Smartphones and social media have served as a tool to enhance hospitality for customers. Further digitization is needed to meet the needs of workforce development and the expectations of future workforce.
Digital Transformation in Tourism
Another aspect of how digital transformation is boosting tourism is online travel shopping. Online sales contribute to 40% of travel product sales and the growth of mobile sales from 2% to 12%. The global digital travel sales are estimated to rise to US$ 855 billion which is due to the popularity of mobile bookings for hotels, renting cars, tours, products, etc. Digital transformation in tourism is also prominent in the statistics of the global sales in Asia Pacific, especially China contributing 18.5%. globally. The growing use of digital platforms in planning and buying travels.
Digital Tourism Examples Through the Lens of Economy
The essence of tourism is the connection between people and places, and the sharing economy has done it phenomenally. There are digital platforms for accommodation, transportation, tours, meals, air travel services, etc. Platforms like Airbnb, Tujia, HomeAway provide tourists unique stays in private homes. Uber, Grab and DiDi offer ride sharing. Vayable offer personalized tours for an authentic local experience. EatWith provides home-cooked meals whereas Wingly offer affordable travel options. These digital tourism examples highlight how technology is elevating the experiences and exploration of people based on their needs.
Digitizing with Tourism Company
There are numerous tourism companies that are incorporating digital technologies to boost overall productivity, customer satisfaction, and profitability. Marriott International has implemented a mobile application to improve customer experience by enabling them access to their rooms. They also provide full-time customer support. Expedia Group utilizes big data analytics for personalizing searches and recommendations based on preference of the customer. Another tourism company, Airbnb uses blockchain technology to store and manage ratings and reviews of guests. An European tourism company, TUI Group, uses digital initiatives for enhanced customer experience. With the evolution of industry demands, more companies will venture into digitization, furthering digital transformation.
Digital Transformation with Hotel Management System
Hotel management system makes use of unified platforms for bookings, scheduling staff, and providing services to guests. The system utilizes digital tools like Life House and Duve to make back-office tasks efficient. This improves guest satisfaction and profits. Hotel management system can improve efficiency in housekeeping and maintenance through property management system. Further digitization can include use of smart rooms, AI-powered chatbots, and VR tours to better personalization and customer service.
Impact of Digitization on Tourism Companies and Tourist Attractions
DIgitalization has allowed increased productivity for tourism companies. For travelers, the places to visit are far more accessible and engaging because of the amenities the digital platforms can provide in terms of planning and finding good services. Travelers can fully engage with tourist places and tourist attractions through the utilization of digital platforms to research for places to visit, book accommodations, plan activities, itineraries, transports, etc. By digitizing services, the traditional ways of operation have transformed into modernized digital operations. Mobile applications and data analytics have optimized operational efficiency. Tourism companies can incorporate technologies like augmented reality and virtual reality to give an impactful and immersive experience to draw in interested travelers. These can serve as attractive marketing strategies and boost profits for the tourism companies.
Conclusion
Tourism has provided more avenues, opportunities, and prospects for digital transformation to flourish. As the tourism industry employs digital tools, other sectors are also taking inspiration to digitize their business operations. With growing demands and changing market trends, tourism companies are investing in digital initiatives to boost efficiency and productivity. Incorporating sustainable practices will enable judicious use of resources and support the long-term goals of the company.
