The tourism industry is facing changes affecting the whole value chain, in both public and private sectors and to the whole system (demand, offer, markets and territory). In the coming ten years, the tourism industry is likely to generate new economic, social and environmental impacts through the digital transformation. More precisely, digitalization is impacting intensively and rapidly, forcing businesses to adapt to this environment of permanent transformation.

Digital transformation trends in tourism. There are four main technologies leading the digital transformation in the tourism industry:

  • Cloud: data collection, management and processing.
  • Mobile: platforms, services and applications for smartphones and tablets.
  • Internet of things: devices and objects connected to the internet.
  • Social: social networks through which the users participate, share and exchange contents and services.

And according to the report from the Orange Foundation about the digital transformation of the tourism sector in Spain, the main trends of the upcoming years are likely to be the following:

  1. New intermediation models. New agents have contributed to redesign the value chain, like the collaborative platforms (airbnb, uber, etc.)
  2. Technological platforms based upon cloud computing. Managing and processing Big data and Data Lake.
  3. The mobile. New tourism products and services to be consumed through the mobile devices.
  4. Internet of things. Wearable devices, Smart straps, beacons and chatbots are the main technology elements.
  5. Smart destinations. Appliance of advanced technologies under the denomination of Smart tourism destinations, Smart cities or Smart islands.
  6. Social networks. Also used as marketing tools.
  7. OTA’S and intermediation, search and comparison platforms, and e-commerce.
  8. Collaborative economy. Activity ecosystems where reputation becomes a fundamental business asset.
  9. Other technologies starting to gain protagonism in the tourism industry are geo-localization, virtual reality and augmented reality.
  10. Big data: The chances offered by many of the new technologies to generate and capture data.

In the digital transformation cross-sector process, tourism businesses have four main challenges to tackle:

  • People: new ways of working with human resources regarding communication and the need for skill development to adapt to the new realities, multiculturality, remote working, virtual teamworking, etc.
  • Infrastructures: incorporation of new digital tools.
  • Processes: new ways of using these new tools and working.
  • Systems: availability of environments which are adaptable in a way that allow businesses to design processes more rapidly.

Nowadays, most tourism organizations adopt the most sophisticated digital technology carrying out large investments in renewing their methods and tools, and there are also new collaborative models. However, the success will stay in being capable of having profiles with digital competences.

This blogpost is from  http://www.visionesdelturismo.es/transformacion-digital-en-turismo/

Posted by Jordi Pera

Jordi Pera is an economist passionate about tourism, strategy, marketing, sustainability, business modelling and open innovation. He has international experience in marketing, intelligence research, strategy planning, business model innovation and lecturing, having developed most of his career in the tourism industry. Jordi is keen on tackling innovation and strategy challenges that require imagination, entail thoughtful analysis and are to be solved with creative solutions.

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