Tourism is the major service industry of most of the developing economies, which provides job for millions of people and fosters entrepreneurship in numerous ways. 'Digital transformation', or ‘digital disruption', has become a most popular buzzword of the globe today and the model creates a value proposition to tourists in several forms. The various forms of innovation in identifying markets, creating new tourism products, modifying the form and nature of existing products, a new form of connecting customers are possible due to digitalisation. The sort of innovations is possible by various technologies such as artificial intelligence, internet of things, robotisation, gamification, big data and cloud computing, among others. The current chapter has the objectives of understanding the revolutionary perspectives of the impact of digitalisation transformation in the tourism sector and how it has provided competitive advantages.
TopIntroduction
Tourism impacts more than 10% of global GDP, and it is the second most popular/fast-growing industry. It attracts foreign direct investment and significant job creators worldwide (International Finance Corporation, 2017). Tourism is the primary service industry of most developing economies, which provides jobs for millions of people and fosters entrepreneurship in numerous ways. The World Bank data confirms that around 10.4% of world GDP offers 313 million jobs in 2017. Therefore, tourism is considered to be one of the most important sectors of the economy. Apart from the economy, the tourism sector has been developed along with the change of interest between tourists (consumers). Innovative and active policies were developed by the countries worldwide and governments to build a competitive, inclusive, and sustainable tourism development. The disruption in the tourism sector was massive, and it has different dimensions to enhance tourist satisfaction and repeat visits. The growing demand for unusual tourism experiences extends to tourism services. Many of these developments are facilitated by technology. Tourism is both a significant adopter of and is heavily influenced by technological developments. This movement pressurises the tourism industry to transform the organisations entirely to a great extent.
The sector was transformed entirely by digital innovation. Digital disruption in the tourism sector is an enabler of the innovative and empowered service provider for tourists (Navio et al., 2018). The new innovative travel technologies make travel and tourist more excited and enjoyable. The uprising of revolutionary Digital Communication and technology enables consumers to find various destinations easily through different digital communications modes (ETC, 2012). The resolution of Information Communication and Technology (ICT) has enabled consumers to search for destinations worldwide more easily. An increasing number of consumers worldwide are no longer dependent on travel agencies to look for information and inspiration for their next holiday. Instead, consumers use the Internet, Web1, and Web2 and browse online for inspiration about their potential next holiday destination (ETC, 2012). So it is found that the evolution of digital technologies and few media has profoundly changed the perspectives people travel. The related decision that has reshaped the tourism sector’s ecosystem and the travel and tourism sector is undergoing a massive transformation.
The current chapter has the following objectives:
- i.
To study the different types of digital communication technologies that influence the development of the tourism sector.
- ii.
To study the impact of various digital marketing strategies in the global tourism sector and its competitive advantages.
- iii.
To understand the various revolutionising technologies in the growth and development of tourism.
- iv.
To study the progression of digitalisation trends and practices in the tourism sector in various countries.
TopDigitalisation In Tourism: Overview
Digitalisation makes travel more affordable, accessible, and convenient. Over the past six decades, tourism has experienced continued growth and diversification to become one of the world’s largest and fastest-growing economic sectors. Over time, more and more destinations have opened up and invested in tourism development, turning modern tourism into a critical driver for socio-economic progress. The tourism sector is highly fragmented, and subsectors such as transport, accommodation, restaurants, catering, and personal services, are all subject to very different challenges and opportunities for digitalisation. The tourism and hospitality sector is a sector that was disrupted totally by digitalisation. To gain a competitive advantage, the tourism players tailor the products and networking their services unbelievably to attract the target customers. The innovativeness is made in all dimensions (i.e.) before booking, during the service, and after use, to attract potential customers and satisfy current customers with the “wow” effect and repeat sales.