The metaverse is regarded as the forthcoming advancement in the realm of the internet, representing a collaborative environment wherein physical and digital domains intersect to provide heightened levels of immersion and interactivity for users, frequently encompassing both virtual reality (VR) and augmented reality (AR). The Metaverse is poised to usher in a transformative era for the field of travel and tourism management. It empowers destination awareness, strategic positioning, and brand enhancement while also facilitating efficient coordination through the use of digital twins. Utilizing a systematic review of scholarly literature, media articles, and industry reports, this chapter establishes a comprehensive definition and conceptual framework for the Metaverse ecosystem within the context of tourism and travel. Additionally, this research also underscores the capabilities inherent in the Metaverse and sheds light on the emerging opportunities it presents. Furthermore, it discerns and identifies the challenges that lie ahead for the future development of this domain.
Top1. Introduction
Information and Communication Technologies (ICTs) have been substantially transforming the foundational elements of competition by instigating significant disruptions within the tourism industry (Werthner & Klein, 1999). Service providers within tourist destinations, tour operators, and other intermediaries are actively developing novel approaches to cater to their customers. They are making investments in innovative sales channels and restructuring their production processes for travel and leisure products. The swift advancement of smartphones and mobile commerce has underscored their capacity to facilitate transformative shifts within the tourism sector (Wang et al., 2016). Smartphones enhance contextual relevance, thereby enabling real-time value co-creation within specific contexts (Buhalis, 2020). Encouraging customers to actively engage in activities within a company's mobile app has been shown to amplify both the frequency and the amount of their purchases (Jang et al., 2021).
This offers unparalleled prospects for the domains of tourism management and marketing, as well as for immersive engagement with various stakeholders. Travelers now have the capability to preview tourism destinations and services prior to making their purchases, and they can also enhance their real experiences at the destination through such digital means (Loureiro et al., 2020; Rauschnabel, 2022).
The Metaverse has gained increasing prominence over the past decade. The release of the Avatar movie in 2009 played a pivotal role in introducing people to virtual technology and significantly raising its public profile. The Metaverse has attracted considerable interest, particularly following Facebook's strategic shift in rebranding itself as Meta and reorienting its business focus toward the Metaverse (Glover, 2022; Pew Research Centre, 2022). The Metaverse represents a novel paradigm for engaging with various facets of reality, encompassing the realms of actuality, augmented reality, virtual reality, and mixed reality. It is an integral component of what is commonly referred to as “Web 3.0,” which constitutes a new phase of internet evolution, also characterized by technologies such as artificial intelligence, blockchain, and pioneering developments in the digital and phygital spheres. Users gain entry to the Metaverse through 3D viewing interfaces, enabling them to partake in virtual experiences that connect them with lifelike avatars, fellow users, objects, concerts, events, travel, and an array of other offerings (Gent, 2022; Lee,2021 & Ludlow, 2007)
In recent times, the Metaverse has garnered significant attention, capturing the interest of both scholars and industry professionals. This heightened focus has been further accentuated by the constraints imposed by the COVID-19 pandemic, leading to a greater familiarity with virtual tours and an increased willingness to embrace and incorporate the Metaverse into the realm of tourism (El-Said & Aziz, 2022).
As per the analysis by Technavio's experts, the projected market size of the Metaverse within the travel and tourism industry is anticipated to reach a valuation of USD 188.24 billion by the year 2026, demonstrating a steady Compound Annual Growth Rate (CAGR) of 26.01% (refer to figure 1)