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Why digital transformation in the tourism industry

Digital-Transformation-of-Tourism-Industry-by-Holinex Digital Marketing Agency

What is digital transformation in the tourism industry?

In its broadest sense, digital transformation refers to all of the methods used to convert analog materials (derived from physical things) into digital form.

The creation of new digital goods and solutions has accelerated with the development of technologies like artificial intelligence (AI), virtual reality (VR), the Internet of Things (IoT), big data, and blockchain.

Let’s assume the travel and tourism sectors are similar.

The tourism industry is undergoing a digital transformation, which calls for adopting contemporary solutions to the routine tasks of planning travel, including selecting a destination and creating an itinerary, booking flights and other modes of transportation, hotels, and creating offers that are as specifically tailored to the needs of customers as possible.


Our perception of Digital Transformation in the Tourism Sector

The overall income from mobile applications used in the travel sector climbed by 38 percent to $296 million in 2021, according to data from Statista Digital Market Outlook.

Due to the need to maintain social distance and severe restrictions, the COVID-19 epidemic had an impact on this and made people who enjoy travelling even more dependent on digital solutions.

Four out of ten questioned travelers from various parts of the world named mobile contactless payments as one of the top technologies to increase passenger trust, according to Statista. Hotels, airfare, and car rentals were among the most popular travel items purchased online in the United States in 2021, according to Statista’s Global Consumer Survey.

The travel sector clearly recovers in the first few months of 2022.

The number of searches rose up to 25% in the first quarter of 2022 compared to the same period last year, according to statistics made public by Expedia Group. Just as significantly, people globally are making increasingly educated judgments when planning travel and seeking bargains from reliable travel suppliers.

According to the report, two-thirds of customers want more sustainability information from lodging and transportation providers, and half want to expect it from travel agents or tourist groups.

Digital Transformation in Tourism Industry
Image of Digital Transformation in the Tourism Industry

Significance of Digital Transformation in the Tourism Industry

In the first few months of 2022, there is a noticeable recovery in the travel industry.

According to data made available by Expedia Group, the number of searches increased by up to 25% in the first quarter of 2022 compared to the same period in 2017. As importantly, individuals throughout the world are making more informed decisions when booking trips and looking for deals from reputable travel vendors.

According to the research, two-thirds of clients want more sustainability-related information from hotel and transportation providers, and half want to anticipate it from travel agencies or tour groups.

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In order to increase the availability of the offer and satisfy smartphone users’ expectations, it is also worthwhile to develop mobile applications that integrate communication, information, and sales alternatives. Software specifically designed for the travel sector enables remote management of practically any issue at any point throughout the pre-and post-sales process, which is a very welcome convenience for consumers of travel agencies.

Importantly, new technologies let us quickly identify connections and save money on travel using high-performance travel search engines. Take the Stackflow experts’ system for processing 300 million queries per day or calculating schedules as an example.

How Digital Technologies are Used in the Tourism Industry

Communication technology, combined with digital assets, made the travel industry more accessible.

Today’s travel agency consumers demand a more individualized product, and the travel industry has a lot of catching up to do in this area compared to other businesses.

1. Better travel search engines are one way to personalize offerings to the specific demands of potential customers.

2. dynamic pricing tools that help maintain and improve seat occupancy 3. Suitable cost-to-quality ratios.

4. Mobile Applications and Apps

5. Internet of Things (IoT)-based tools are, for instance, employed by hotels to voice-control the air conditioning and by airlines to tag passengers’ luggage.

Smart Destination in The Travel Industry-

Smart destinations, or locations that adopt an interactive management style to enhance the quality of the visitor experience using new technology, are also worth highlighting.

The term “smart destination,” which is taken from the idea of “smart cities,” therefore describes the use of technology to tourist attractions in order to raise the standard of services and increase visitor satisfaction.

By applying and developing information and communication technology to provide unique and fiercely competitive tourism services, cities may also look for new ways to foster innovation in tourist destinations with the aid of smart destinations.

Customer’s demand vs. service Provider’s assets

Thus, the digital transformation in the tourism industry serves as a conduit between the patrons of travel agencies and other businesses that support tourism, and service providers, for whom the ability to utilize cutting-edge solutions presents a chance to stand out from the competition and gain a competitive advantage.

Artificial intelligence, machine learning, and futuristic analytics are already regularly used by businesses in the travel, hotel, and aviation sectors, for example in marketing campaigns, online events, and seminars.

All of this results in a rise in their companies’ visibility, which makes acquiring customers easier. And also most crucially, more affordable. Just consider the last time you purchased a ticket for a trip at the checkout counter or looked for lodging when you arrived on vacation. Or when was the last time you choose a hotel based on a brochure of details?

Absolutely, we now perform all of these tasks online. As a result, tourism’s digital revolution has had a significant impact on the growth of the sector.

How has digital transformation changed the Travel Industry?

Modern travel agency clients have very high standards.

They anticipate a more tailored offer, its easy-to-understand presentation, and the ability to learn more about it whenever and wherever they choose. Compared to other businesses, the tourism sector has a lot to offer in this regard.

Digital Transformation in Tourism Industry

Let’s examine it more closely.

1. Stage one of planning a tour.

What does the statistical traveller who is interested in travelling do?

They first grab their computer or smartphone and start searching for tips. When they do, they enter important parameters, like the nation. The duration of the stay, the hotel’s amenities, the number of guests, and the form of transportation. They verify the deals. After selecting a handful that catches their attention, they verify internet evaluations of them. Then, they use well-known travel websites.

This would not be feasible without powerful travel search engines.

On the other hand, up to 70% of people rely on other Internet users’ opinions when it comes to those. Also, Nielsen’s study demonstrates that they are more unbiased and trustworthy than advice from travel agencies.

The digital change in the travel industry also shows itself as a user-follower impact.

According to a study of traveller behaviour, up to 86% of people were piqued by a certain trip after viewing other people’s images. Due to up to 92% of Generation Z respondents choosing this response, this effect is much more pronounced in their instance.

Not just that, more than 50% of individuals polled acknowledged that they had made a travel reservation as a result of watching videos. Viewing images that friends, family, and acquaintances had posted on social media. So, it should not be surprising that travel blogs and trip reports from around the world are becoming more and more popular online.

2. The travel-buying phase

The digital revolution has also altered how travellers purchase tickets, reserve lodging, and cross international borders.

First off, almost every step of the purchase process has been automated. They also moved online as a result of the tourist industry’s digitization.

More than 140 million individuals book holidays and other travel-related activities online in a single year. According to data provided by Condor Ferries, smartphones clearly dominate the market. It’s important to note that up to 82% of all travel reservations are done online. Completely without interacting with a human, using a smartphone app or website.

What does this imply for the tourism sector?

Businesses must improve their online presence if they wish to acquire a competitive advantage. It is insufficient just to have a business account on social media. Furthermore, important are the user experience while visiting a travel agency’s website. The simplicity of looking for deals, or the efficiency of the hotel reservation process.

3. Stage of travel.

Travel itself has transformed as a result of the digital shift in the tourist industry.

The capacity to electronically and in real-time share experiences and activities with others is the most salient feature. This is achievable because to instant messaging, smartphone applications, and social media.

74% of travellers use social networks when travelling, according to research from Martech Zone. While 97% of Millennials say they post images and other information to their profiles while traveling.

There is also another side to this occurrence.

This is so that personalized offers or ongoing trend monitoring may be made using the customer data that tourists supply.

After all, it has long been understood that the more data you gather about your clients. The simpler it will be to later communicate with them and provide offers tailored to their requirements and interests.

Also, the importance of mobile apps is rising throughout the trip phase. This is because we frequently carry a smartphone with us, which is a basic reality. It replaces the print guidebook and restaurant locator, acts as a map. It is useful for paying bills, checking into hotels, and serving as a guide at museums.

Of course, there are still more opportunities that the digital revolution of the travel industry has to offer.

Digital Transformation in Tourism Industry

The top solution for digital transformation in the travel industry.

Digital technology may support the entire tourist cycle as well as the consumer journey.

The main solutions in the market are primarily:

  1. Booking applications, which enable both the booking of tickets,
  2. Accommodations, or rental vehicles; travel search engines. Which assists us in selecting the trip or holiday that best meets our needs. Those of the people joining us on the trip.
  3. Virtual guides, which can be in the form of apps or interactive guides offered by museums and other important institutions. They can help tourists in a given city find tourist information. And restaurants that serve food for people with different food intolerances. From nearby stores and restrooms, and a schedule of upcoming cultural events.
  4. Financial planning apps can be very helpful when traveling, especially when you need to convert currencies;
  5. Transit planning apps can be very helpful when traveling to different parts of the world. Because it is frequently necessary to use local transportation. These apps make it easy to buy train tickets, order cabs, and rent cars.

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