Technological Developments: Industry 4.0 and Its Effect on the Tourism Sector

Introduction

Technological developments have been increasing in recent years. At the end of the 18th century, the advancements in technology have been advancing rapidly since the 1st Industrial Revolution, which started with the use of steam engines. Developments in the field of communication and progress in informatics have affected the change in all fields.

The first three of the previous industrial revolutions are called mechanization, use of high electrical energy and automation and electronics, respectively (Lasi et al., 2014). Today, economies are turning to the fourth industrial revolution, defined by the use of cyber systems, smart factories and innovations in the service sector (Shamim et al., 2016, Lee et al., 2014). Industry 4.0 can also be defined as a subcomponent of digital transformation in existing businesses and processes (Porter and Heppelmann, 2014).

Depending on the changes in technology and digitalization; both the product and the production methods vary. This change is called industry 4.0. The 4th industrial revolution, called as Industry 4.0, is the process in which the use of computers and automation in the industry. With Industry 4.0, use of automatic machine also called robots has been at the industry.

Peceny et al. (2019) discussed Tourism 4.0, a new tourism paradigm that emerged to reveal the potential for innovation in the entire tourism sector. In the study, it is assumed that technologies that provide important opportunities from Industry 4.0 such as Internet of Things, Big Data, Chained Disabilities, Artificial Intelligence, Virtual Reality and Augmented Reality can be applied to tourism sector. It is believed that by creating a common ecosystem involving local residents, local authority, tourists, service providers and government, an enriched tourism experience can be created in both the physical and digital worlds.

In their study, Shamim et al (2017) examined Industry 4.0 issues in the service sector and the situations in the hospitality industry. The challenges of Industry 4.0 require continuous innovation and learning, depending on people and the capabilities of the business. Appropriate management approaches play a vital role in the development of dynamic capabilities and in an effective learning and innovation environment. In the study, proposes a framework of management practices that can support innovation and the learning environment in an organization was investigated.