disadvantages of technology in tourism industry

Advantages and Disadvantages of Tech in the Tourism Industry

This post delves into the advantages and disadvantages of technology in tourism industry practice, highlighting how digital innovation shapes travel experiences. It explores the impact on operational efficiency, customer service, and the challenges of maintaining personalization and data security within the tourism and hospitality sectors.

Picture a world where the horizon is not just a line where the earth meets the sky but a vast expanse of possibilities brought closer through innovation. This blog post illuminates the advantages and disadvantages of technology in tourism industry organisations, focusing on the pivotal role of platforms like Travel Trade Ready, an API platform designed to bridge the gap between travel organisations, Destination Marketing Organizations (DMOs), and buyers. As we navigate through this exploration, we’ll delve into how such technological advancements are reshaping the industry, for better or worse.

How Does Technology Affect the Tourism Industry?

The influence of technology on the tourism industry is profound and multifaceted. It reshapes marketing strategies, with social media and online reviews now playing pivotal roles in consumer decision-making. Technology also drives sustainability efforts, enabling businesses to monitor and reduce their environmental impact more effectively. However, this digital transformation also requires businesses to continuously adapt and innovate, handling both the advantages and disadvantages of technology in tourism industry organisations to maximise their growth.

The Digital Compass: Guiding the Tourism Industry

In an era where digital transformation dictates the pace of progress, the tourism industry stands at the forefront of innovation. The integration of technology within this sector has unlocked unparalleled opportunities for growth, efficiency, and connectivity. Through platforms like Travel Trade Ready , organisations can effortlessly connect with a global network of DMOs and buyers, streamlining processes that once were cumbersome and time-consuming.

Advantages: Navigating Towards Progress

Between the advantages and disadvantages of technology in tourism industry applications, the advantages cannot be overstated. Firstly, technology has democratised access to information, allowing travellers to explore destinations, book accommodations, and plan itineraries with a few clicks. For industry professionals, platforms like Travel Trade Ready serve as digital marketplaces, facilitating seamless connections and fostering partnerships that might have otherwise been out of reach.

Another of the significant advantages and disadvantages of technology in tourism industry organisations is the enhancement of operational efficiency. Automation of bookings, customer service through AI chatbots, and data-driven marketing strategies are just the tip of the iceberg. The use of technology in tourism with Travel Trade Ready exemplifies how integrating tech solutions can streamline operations, reduce costs, and improve service quality, thereby elevating the customer experience to new heights.

Disadvantages: Navigating Challenges

However, the digital journey is not without its turbulence. One of the disadvantages of technology in the tourism industry is the digital divide. Not all destinations or organisations have the resources or infrastructure to implement these technological solutions, leading to a gap between the tech-advanced and the traditionalists. This disparity can affect competitiveness and market presence.

Additionally, over-reliance on technology could potentially diminish the personal touch that is so intrinsic to the travel experience. The challenge lies in finding the perfect balance between the advantages and disadvantages of technology in tourism industry best practices – leveraging technology for efficiency and maintaining the human element that enriches the travel experience.

How Does Technology Positively Impact the Tourism and Hospitality Industry?

Despite these challenges, the positive impact of technology on the tourism and hospitality industry is undeniable. Enhanced customer service through personalised offers and experiences, improved operational efficiency, and the ability to reach a global audience are just a few examples. Technology also plays a crucial role in crisis management and recovery, offering tools for real-time communication and information dissemination during emergencies.

The Negative Impact of Technology in Hospitality Industry

In the hospitality sector , the negative impact of technology often relates to the impersonal nature of digital services. While online check-ins and digital concierge services offer convenience, they can also diminish the personal engagement that characterises the hospitality industry. Furthermore, cybersecurity concerns and the potential for data breaches present ongoing challenges, necessitating robust security measures to protect guest information.

As we conclude our exploration of the advantages and disadvantages of technology in tourism industry applications, it’s clear that while the path forward may be complex, the journey is undoubtedly worth it. Embracing technology with a mindful approach can lead to unparalleled opportunities for innovation, connection, and discovery in the tourism and hospitality sectors. As industry professionals, navigating this digital landscape with both enthusiasm and caution will be key to unlocking the full potential of our increasingly connected world.

While the advantages and disadvantages of technology in tourism industry organisations present a complex landscape, the forward march of progress is undeniable. Through platforms like Travel Trade Ready, the industry is poised to navigate these challenges, leveraging technology not as a crutch but as a catalyst for growth and innovation.

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It is undoubted that technology has played a significant role in the tourism industry. However, there are some disadvantages of technology in the tourism industry that should be noted.

First, the use of technology can lead to a decline in face-to-face interaction. This can reduce the overall quality of customer service . Additionally, technology can also lead to increased expenses for businesses, as they must invest in new hardware and software.

Table of Contents

How Does Technology Impact The Tourism Industry

Cloud computing, which is used to access, manage, and store data online, is one of the technology developments  influencing travel and tourism.

Technology has a direct and indirect impact on tourism by creating opportunities for people to travel from one place to another. This will make the tourist industry a multi-billion dollar industry around the world in the next few years.

The introduction of new technologies has allowed tourists to take different activities during their stay at destinations such as visiting landmarks and participating in outdoor sports. For example, tourists can guide themselves with GPS systems or maps which allow them to roam around destinations without any worries or concerns.

Similarly, smartphones can be used to make hotel reservations online, share photos on social media as well as communicate with other people through apps such as WhatsApp while they are traveling.

Disadvantages Of Technology In the Tourism Industry

The tourism industry is a sector of the economy that is composed of businesses and organizations that provide services to tourists. The hospitality and tourism industry is a very important part of the global economy, and it is responsible for a large number of jobs.

The Tourism World Council is an organization that represents the interests of the tourism industry. The hospitality and tourism sector is a very important part of the economy, and it is responsible for a large number of jobs.

According to a 2021 survey, more than half of European travel firms and tour operators purchased cloud computing services through the internet that year, compared to only 29 percent in 2016 .

The tourism sector is vast and complex, encompassing everything from small, family-run businesses to large, international corporations and cultural tourism portals. The tourist industry is constantly evolving, with new trends and technologies emerging all the time. The tourist and hospitality industry is a major contributor to the global economy, with medium tourist enterprises accounting for a significant portion of GDP.

1. It Feels Like A First World Problem

The advent of technology has brought much convenience to everyone in developed countries, such as the United States and Europe. For tourists visiting these areas, these advancements make the experience more comfortable. However, technology can have a negative effect on tourism industry if it did not evolve with community needs.

For example, if Americans use their iPhones to access pornography sites or international mobile phones are used by Americans to make calls overseas, it creates distrust from America overseas in regards to issues like security and privacy.

This negative affect is also very common for developing countries that keep planning for developments within their communities without considering how it will affect other communities in different parts of the world.

2. Technology Can Make Customers Forget About The Past And Lose Their Connection With The Culture

When people go abroad to enjoy new experiences, they often like to learn about local people’s lives . Loyal tourists often like to visit the same place over and over again, which is not only helpful for service providers, but it also helps the locals build some extra income for themselves.

But there is a problem that technology develops rapidly and many new innovative technologies appear in a short time. So some of these innovations are not suitable for their community or economy at all.

For example, if an application that functions as an offline guide is developed by a company in another country, it will increase tourism volume without any consideration of brand image or environmental pollution at all.

3. It Can Be Time-Consuming And Tedious

At first, technology can make things more convenient for customers, but it also makes everything more complicated for service providers. Because of these technological advances , many businesses have to update their systems and software frequently to stay competitive.

This is not only an additional burden on business owners, but it also creates a negative impression from foreign customers who want the same level of quality services as their home country.

In addition, the use of technology in tourism industry can make the relationship between small businesses and corporate business partners more complicated in many cases due to lack of communication and understanding between them.

4. Technology Can Disrupt Traditional Community Culture In Many Cases

With advances in technology, people are often attracted to use the new innovations. However, when these innovations are incompatible with their traditional culture and economy, they can have a negative impact on their community.

For example, the introduction of drone taxis was introduced by a technology company in Dubai. This type of taxi is not only very convenient for passengers but also has been known to disrupt normal transportation systems that work within the city’s rules and regulations.

Traditionally, people used public bus networks in Dubai for transportation whereas drone taxis are considered to be very disruptive due to high noise levels and illegal occupation of footpaths in various parts of the city.

5. It Can Attract People From Other Countries To Participate

Technology is everywhere and it often improves the quality of life. If foreign tourists are attracted by the use of technology for their tourism experience, those using these technologies in the countries where they came from will also be attracted.

For example, many people from European countries travel to America to receive advanced medical treatment due to US healthcare system and better access to education, but America can become less attractive for Europeans, if they are concentrating on technological development instead of making more opportunities for traditional medical science, education and culture.

6. It Can Be Distracting To Tourism Entrepreneurs And Tourism Guests

It often happens that visitors are unfamiliar with the technology used in the destination they are visiting and they may feel disappointed when they find out the use of technology in hospitality industry.

Therefore, they can have a negative impact on their overall experience as well as their community. For example, if a tourist who has been to America once finds out that mobile phone is replaced by an iPhone in US, he or she may become less interested to travel again to America or even leave everything behind and go back home at all costs.

7. It Can Cause Discrimination From Tourists From Certain Countries Traveling To Other Destinations

This is a common problem that occurs in the tourism industry. For example, if a tourist from England went to Spain as he or she heard something was interesting there and while they were there, they found out that many of their Spanish friends were using Android phones instead of iPhones, they can be very disappointed in their experience.

If a person is traveling to a country that uses different technologies than his or her own country, this can create negative comments about that destination. This could potentially cause them to visit other destinations with different standards for technologies in the future.

A January 2022 assessment of the most popular technologies deployed by hoteliers globally revealed that a quarter of facilities installed a self-service check-in offer during the coronavirus (COVID-19) pandemic.

8. It Can Create Unnecessary Hostility Between Cultures And Communities

The use of technology has caused more harm than good in many cases. For example, when developing countries and developed countries are connected with each other, it is easy for hackers from different countries to misguide other people, who do not understand the language used on the Internet.

This is because people from developing countries often keep using the same software for their development that was used during the ancient times. Consequently, this can cause a negative impact on tourism industries and community standards from tourists from different places.

9. It Can Cause Unnecessary Competition Between Community Traditions Or Local Businesses And Outside Business Partners

When people from the same community use different types of technologies, some may believe that their community is superior to other communities in the same destination. For example, people from China who are working in a tourism company in Australia tend to think that the technology used in their office is much better than any other office nearby.

Therefore, they believe that Australia should completely stop using computers and they should go back to paper-based systems. However, no one can consider computer-aided business operations as a problem at all because it helps them to save time and energy as well as make a better business plan.

10. It Can Cause Less Interest And Participation From Tourists From Certain Countries

Globalization has become a trend in the tourism industry nowadays, but people are not willing to change their lifestyles and relationships due to technological advances.

For example, the introduction of technology in hospitality trade has discouraged locals from participating in hospitality trade in some destinations such as New Zealand. If local people do not accept the use of technology in business, it will hurt other businesses who are using foreign technologies in their business operations.

Advantages Of Technology In Tourism Industry

The travel and tourism industry has been quick to adopt new information technologies in order to stay competitive. Technology can provide a number of tourism industry advantages to the tourism industry, including increased efficiency, improved customer service, and new marketing opportunities.

The tourism industry is also following some major tourism technology trends, such as the rise of mobile booking and the use of big data. By staying up-to-date with the latest technology trends, the tourism industry can continue to thrive.

Meanwhile, in terms of the travel and tourism firms most likely to accept cryptocurrency payments, it was anticipated that roughly 1000 lodging places globally provided bitcoin solutions as of March 2021, but just 114 tour operators and travel agencies did.

The tourism industry contributes to the economy, and in recent years it has begun to tourism incorporate information technology at an ever-increasing rate. The rapid growth of the tourism industry has led to a boom in tourist destinations, but the virtual world presents challenges that must be overcome.

1. It Can Help To Create More Jobs For Youth In The Tourism Industry

The introduction of new technology in the tourism industry often increases local employment opportunities due to its effect on creating new technologies and providing a variety of opportunities for people to work.

For example, if a mobile application is introduced in business operations that allows people to make hotel reservations quickly, it means that new staff will be needed. Similarly, the use of artificial intelligence can allow automated helpers who are able to save tourists from potential bad things and give them information about their destinations.

2. It Can Improve Relationships Among Different People From Around The World

The development of technology has helped communication between different communities through the Internet. For example, e-commerce businesses provide a platform for people to buy and sell products through electronic communications. Therefore, when this technology is applied in hospitality trade, it helps people to communicate with each other without any worries.

3. It Can Help To Diversify The Tourism Industry

The development of new technologies helps tourism businesses to become better in different ways that may lead to the formation of more jobs and provide more employment opportunities for local people as well as tourists from other countries.

For example, when an artificial intelligence program is applied in hospitality trade, it creates more opportunities for businesses by saving time and energy from staff who were traditionally involved in serving guests or making reservations for tourists at hotels.

4. It Can Help To Reduce Cost And Save Time And Energy In Businesses

The use of new technologies often creates opportunities for businesses to be more productive. For example, the use of automatic, artificial intelligence programs in hotel reservation systems means that the staff do not have to spend time handling customers who are making a reservation on their own computers or phones. This will reduce costs due to the reduction of staff and save more time on training new staff each year.

5. It Can Increase Customer Satisfaction By Providing Better Service Quality

When technology is used in hospitality trade, it makes it easy for customers to find out about places around where they are staying and find things that they like using the Internet.

For example, when GPS systems are introduced in the tourism industry, they can make it easier for people to find interesting places nearby their location. This increases customer satisfaction and creates opportunities for more repeat customers in the future.

6. It Can Increase Revenue By Increasing Business In Different Ways

The use of technology can help businesses increase revenue through various ways including increasing sales, as well as improving customer experience and providing better guest service, which will lead to an increase in bookings from customers and a full house during weekends or holidays. For example, when people can easily book hotel rooms online with a mobile application, it creates a sense of security for people who want to plan their vacation destinations at any time.

7. It Can Help To Improve Efficiency In Business Operations

The use of new technologies often helps to make business operations more efficient by allowing staff to do their jobs in multiple ways at the same time, without wasting time and energy on repeating tasks that are performed in paper-based systems.

For example, an artificial intelligence program can provide recommendations for customers using tablets or smartphones as well as instruct staff members that are making hotel reservations during the summer vacation directly to them.

The use of new IT services has increased the influence of technology on travel during the previous several decades, leading to the growth of the online travel market and the rising digitization of the travel sector .

8. It Can Provide A Safer, Comfortable And Enjoyable Travel Experience For Tourists Around The World

The use of new technologies in business operations can help tourists to have a safer, more comfortable as well as more enjoyable travel experience by allowing them to book their accommodation, transportation or activities on their own without any worries or concerns.

For example, they can use mobile applications provided by travel agencies which offer a variety of services and products including booking airline tickets and providing information about destinations.

The global distribution system sector was predicted to be worth roughly six billion US dollars in 2021 . The tourism industry has a number of advantages when technology is applied in its business operations.

First of all, it provides more opportunities for people to go to different places for traveling and make new friends from other countries around the world.

Secondly, it helps tourists to have an enjoyable and unforgettable travel experience as well as create a comfortable travel environment. Thirdly, it can help the tourism industry benefit from new customers as well as become more profitable through an increase in job opportunities for people in different communities.

Last Updated on September 26, 2023 by himani

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Advantages and Disadvantages of Technology in Tourism Industry

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Introduction

Background information, technology in the industry, benefits of technology in the tourism industry, negative impact of technology in tourism industry.

Examining all the possible advantages and disadvantages of technology in the tourism industry has become a topic of interest for numerous people in the field. It’s not a secret that the Internet and different information systems have transformed the hospitality sphere.

Were these changes welcomed and embraced? What is the negative impact of technology on the tourism industry? Does it exist at all?

Technology is paramount to the success of the industry. Yet, as it turns out, the Internet and other digital perks of the modern world have both benefits and flaws. In this essay, the advantages and disadvantages of technology in the hospitality industry are explored.

The hospitality and tourism industry is one of the best-performing industries, both at regional/domestic and international levels. According to the Tourism World Council (2004), the tourism industry contributes to around 10% of GDP in the world.

This rate is expected to increase by the year 2014 (World Travel and Tourism Council 2004). The force behind this rapid growth is the adoption of information technology in its management and operations.

Many businesses in hospitality and tourism incorporate information technology in their businesses, thus standing a good chance of reaping huge returns of the same (Garzotto et al. 2004).

Computerized reservation systems are an example of an information technology system used in this sector to reach the target customers.

Before the advancement of technology, it was very difficult for the tourist and hospitality industry to market its services to its customers. It was also very expensive because customers are always physically apart, miles away, for instance.

However, the coming of information technology has eased the transaction of business besides boosting the customer base. The fact that people are able to communicate and interact with one another in different regions has made it easier and cheap to market their products and services.

In the past, inter-organizational system, which connected organizations, was the most popular form of IT. However, because of high costs, many businesses could not meet the cost of using it (Chih-Yao 2011, p. 1986).

The emergence of global distribution systems allowed easy connection and communication across borders. This allowed a fast transfer of information that helped to boost the industry in terms of the number of bookings.

Global distribution was a form of inter-organizational system that emerged from computer reservation systems that helped to integrate information from the airline. These integrations boosted the tourism industry since customers were able to make their reservations at one common marketplace.

These systems were used in the 1960s, and their integration into the modern computer was impossible. The advancement of technology has seen the emergence of the Internet and the World Wide Web, which have transformed the way people interact and or do their businesses (Cristiana 2008, p. 345).

Businesses market their hospitality services and tourism products through the Internet. This platform has connected the world. It has turned it into a global village. People can interact in different locations in real-time.

They can share their views and opinions without having to meet physically. Technology has led to the development of different forms or platforms that enable interconnections.

Nowadays, social media such as MySpace, Twitter, Facebook, LinkedIn, and many others are sources of information that both the tourism and hospitality industry have used to reach customers across the globe leading to an influx of tourists hence boosting the level of their income (Alexis, & Buhalis 2007, p. 389).

Clayton and Criscuolo (2002) argue that technology through the Internet has brought about various changes in how people carry out their businesses.

The changes include providing an avenue through which ideas can be transformed into marketable innovation to be transmitted later to a wider market at low costs of accessing these markets and searching for buyers.

It allows easier access to the market offering new products. It has changed the way information is shared between individuals and organizations (p. 14). The benefits of technology in the hospitality and tourism industry are enormous.

The benefits of IT are manifested almost in every aspect of our lives. The Internet has become an important part of people’s lives. People are able to share information in their remote locations through personal computers, fax machines, cell phones, emails, and the Internet in real-time (Cristiana 2008, p. 346).

The capability that has come with technology has been manifested in major sectors of economies. The hospitality and tourism sector is one of the sectors that require adequate marketing across the globe.

With the Internet in place, this has been achieved with ease and at low costs. The business has hosted different sites that they use to advertise their products and services to the entire world. They are able to tailor the needs of the customers accordingly.

Another advantage of technology is that it has facilitated globalization. The world has been constricted into one small village. People are connected through Internet networks and social media. Information is transmitted at a faster rate with just one click of a mouse.

The hospitality industry and tourism have used this opportunity to share ideas on various businesses. It has also helped to bring together people separated by geographical location and those from different cultures.

Since this industry depends on information, this technology has added a boost because people are able to access information about the locations that they can visit and spend their leisure time and holidays relaxing.

According to Cristiana (2008), many people in the USA use the Internet to book their trips to various destinations (p. 344). The rate is increasing every day. For instance, it is estimated that more than 75 million people who travel across the globe use the Internet to get information on their destinations.

They, therefore, use the Internet to book, check and compare prices, and schedule their traveling to various tourist destinations. Many people who travel across their borders spend their time and or are accommodated by the hospitality industry. Therefore, they contribute a lot to the industry.

Some travel for leisure. They, therefore, pay the host country foreign exchange for them to be hosted or to travel across the country visiting any area of attraction like game reserves and game parks. The number of bookings increased to double digits between 1996 and 2006.

The growth was high in 2001 at 58% and 25% in 2002 (Cristiana 2008, p. 344). Many online travelers say that they use the Internet to get updates or information on their destinations and any other logistics about their traveling (Cristiana 2008, p. 344).

Therefore, they transact their businesses through the Internet. For instance, they book the places of visit upon landing at their destination in advance. This shows how technology has transformed the industry.

In the past, it was very difficult and costly to travel because of the numerous tedious paperwork processes that people went through. When they reach their destinations, they do not have to look for accommodation.

Therefore, technology has taken this a notch higher, as everything is done in the comfort of the houses (Dis 2010, p. 9).

A study carried out on online travelers showed that the majority of people traveling did so for pleasure, vacation/holiday, personal purposes, and business (Cristiana 2008, p. 347).

Technology has enabled people to search for their directions, maps for directions, accommodation/hospitality facilities, schedules, airfare, and the amount of money to be spent for a tour. These logistics are available on the Internet. It has become an essential medium of budgeting and choice-making.

This is with regard to the places or locations that a person wants to visit. The availability of this information on the Internet, for example, tourist attractions sites, tourist attraction scenes, and features, create a platform for persuading people to travel and experience them.

Therefore, the Internet has contributed to the increased booking and tourist visits, explaining the increase in the industry’s gross domestic product (Cristiana 2008, p. 344).

Technology has evolved at a faster rate making it even possible to access the Internet through cell phones. People across the globe are able to access information on their phones, even to the extent of communicating with one another. This platform has enabled the hospitability industry and tourist industry to market their products on the Internet.

People traveling for leisure or any other reason are always in touch with their family members and friends. This has contributed to the increased travel across borders by many people (Cristiana 2008, p. 348).

According to Jungsun and Hardin (2010), social media, Facebook and MySpace host many users (p. 735). It is estimated that around 360 million people visited and used the media in 2007 for their interaction and other purposes (Jungsun & Hardin 2010, p. 735).

The media is used for sharing ideas and keeping in touch with people across the country. Therefore, they provide a good platform for businesses to market their products and services. The hospitality and tourism industry has the potential to use such media to reach out to many potential visitors.

People will get information about tourist destinations and some of the hospitality services provided through such media. Therefore, they can contribute greatly to the success of the hospitality and tourism industry. However, technology has had a negative impact on this industry.

Technology has some challenges. According to Jungsun and Hardin (2010), the virtual world presents challenges of maintenance and follow-up (p. 735). It requires a lot of investment in Internet use in terms of updating the links and responding to many blogs that are sent.

People or potential visitors may change their minds or plan to travel to a particular destination if their queries are not answered on time (Jungsun & Hardin 2010, p. 735). Another challenge is the increased risk of cybercrime and hacking.

Some people may gain entrance to a system hosted on the Internet to gain access to any information that may be confidential. Such individuals may falsify the information hence leading to misrepresentation and loss of customers.

Furthermore, the number of visitors that visit the website may not be enough as expected. This causes a huge loss since the company may not be able to raise enough revenue hence affecting the level of income of the company.

One of the disadvantages that technology has brought to the industry is that it has caused unemployment. Many people who worked in the hotels as managers, waiters, and cooks, as well as those in the tourist industry, such as tour guides, lost their jobs to cut the cost and by utilizing the Internet.

The creation of jobs in these industries has also reduced because most of the marketing and advertising is done through the Internet. Privacy has also been affected by the coming up of the Internet.

People have improvised ways of hacking or gaining into the websites of organizations to steal important information. This exposes the company to risk (Zipf 2002, p. 57).

Proliferation has increased on the Internet. Many tourist websites are available on the Internet. This is a challenge, especially for small and medium tourist enterprises that possess inadequate skills and knowledge in website efficiency.

This proliferation is a sign that there is a lack of organization in the market that is already saturated. Many of these websites are not familiar to the clients. This becomes difficult for potential customers to locate them and even to have confidence in them to the extent of using them.

Intermediaries that are used to link customers to various businesses provide another challenge on the Internet. They are paid for their services hence leading to low profits, revenue, and homogeneity of the websites (Alexis & Buhalis 2007, p. 389).

Therefore, in conclusion, technology has contributed greatly to the success of the hospitality and tourism industry across the globe. Countries that have positively embraced technology in their operations have benefited in terms of increased revenue.

The potential of this technology is exorbitant. However, it requires people who have vast knowledge and expertise on how it operates to manage it well and to reap its overwhelming potential.

On the other hand, technology has rendered many people jobless. This has affected their living standards since they depend on their jobs as their source of livelihood. However, its benefits surpass the negatives, as revealed in the paper.

Alexis, P. & Buhalis, D. 2007, ‘ Exploring the information and communication technologies revolution and visioning the future of tourism, travel and hospitality industries, 6th e-tourism futures forum: ICT revolutionising tourism 26–27 March 2007 , Guildford’, International Journal of Tourism Research, vol. 9 I no.5, pp. 385-387.

Chih-Yao, L. 2011, ‘The Integration and Development of the Leisure and Hospitality Information System Module with the Embedded Technology,’ International Journal on Computer Science & Engineering , vol. 3 no. 5, pp. 1986-1994.

Cristiana, P. 2008, ‘The tourism industry and the use of internet’, Annals of the University of Oradea, Economic Science Series, vol. 17 no. 2, pp. 344-347.

Clayton, T. & Criscuolo, C. 2002, Electronic commerce and business change, National Statistics . Web.

Dis, T. 2010, ‘Information and Communication Technologies in the Hospitality Industry’, Hosteur , vol. 19 no. 1, pp. 9-11.

Garzotto, F. et al. 2004, Ubiquitous access to cultural tourism portals’, paper presented to Database and Expert Systems Applications, 15th International Workshop on (DEXA’04), Zaragoza, Spain.

Jungsun, K. & Hardin, A. 2010, ‘The Impact of Virtual Worlds on Word-of-Mouth: improving Social Networking and Services cape in the Hospitality Industry,’ Journal of Hospitality Marketing & Management , vol. 19 no. 7, pp. 735-753.

World Travel and Tourism Council 2004, Progress and priorities 2004/2005, World Travel and Tourism Council . Web.

Zipf, A. 2002, ‘Adaptive context-aware mobility support for tourists,’ IEEE Intelligent Systems , vol. 17 no. 6, pp. 57-59.

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• Review Article
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• Published: 07 October 2023

A ten-year review analysis of the impact of digitization on tourism development (2012–2022)

• Chunyu Jiang   ORCID: orcid.org/0000-0002-6072-8365 1 &
• Seuk Wai Phoong   ORCID: orcid.org/0000-0002-9925-0901 1  

Humanities and Social Sciences Communications volume  10 , Article number:  665 ( 2023 ) Cite this article

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• Development studies
• Science, technology and society

Many tourism-related activities have been suspended due to the nationally enforced lockdown to combat the Coronavirus pandemic. The tourism industry suffered immensely from the lockdown, and as a result of this, digital tourism began gaining traction and attracted public attention. This study analyses the impact of digitalization on the social and economic sustainability of the tourism industry via systematic literature network analysis. The findings indicated that digitalization impacts economic sustainability, encompassing economic benefits in tourism product development, tourism consumption, and industrial development. Moreover, digitalization fosters social development, cultural awareness, and tourism participation in digital technology and cultural heritage. This study identified publication trends and research hotspots using bibliometric analysis, and it was confirmed that Sustainability was the top journal in published digital and tourism sustainability-related articles, followed by the International Journal of Tourism Research, Tourism Management , and Current Issues in Tourism . This study resulted in two implications: identifying the knowledge gap and evidence-based decision-making based on the (previous) literature. Recommendation for future research is also discussed in this study, which is helpful to policymakers, tourism planners, and researchers to develop strategies grounded in research.

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Introduction.

From 2019 through 2022, the Coronavirus disease 2019 (COVID-19) wreaked havoc on the world’s tourism business (Navarro-Drazich and Lorenzo, 2021 ). Tourism contributes to many nations’ gross domestic product (GDP) as it is intertwined with various industries (Gössling et al., 2017 ). Examples of tourism products include lodging options such as hotels and Airbnb. Food and drink, theme parks, museum visits, and fashion items such as clothes and bags are additional examples of tourism products that boost the economic health of the individual and the nation.

Tourism is regarded as a complex service-driven industry, one of the characteristics of which is that if external influences disrupt the tourism sector, other industries linked to it will also be directly affected. Tourism development refers to creating and maintaining the tourism industry in a particular location and is closely linked to economic and social progress (Telfer and Sharpley, 2015 ). Over the past four decades, global tourism development has reported intense growth performance and research on tourism development (Capocchi et al., 2019 ). Kreishan ( 2010 ) posited that the impact of tourism development on destination development is a commonly discussed issue, particularly in terms of tourism development improving economic efficiency and local competitiveness. The growth of tourism currently is significant not only from an economic perspective but also from a social perspective, as evidenced by the optimization of the local social structure (Yang et al., 2021 ), increased community participation (W. Li, 2006 ), participation of women (Ferguson, 2011 ), and increased cultural awareness (Carbone, 2017 ). Also, the development of the tourism industry benefits the environment by increasing environmental protection awareness and providing greater funding for initiatives to conserve resources and the environment (Zhao and Li, 2018 ).

However, unmanaged over-tourism can cause serious harm, according to Berselli et al. ( 2022 ). From an economic standpoint, excessive tourism can result in higher prices and imbalanced industrial structure development, which lowers industries’ overall resilience. Social issues arising from over-tourism include the commercialization of culture (Wang et al., 2019 ), the shift in locals’ attitudes from friendliness to hostility towards tourists (Kim and Kang, 2020 ), and the emergence of on-stage authenticity (Taylor, 2001 ). In terms of the environment, issues such as excessive carbon emissions causing global warming (Liu et al., 2022 ), damage to water and soil resources, destruction to flora and fauna (Gössling and Hall, 2006 ), and even harm to cultural heritage (Zhang et al., 2015 ) are some of the effects of over-tourism. Since the development of the tourism industry combines economic, social, and cultural phenomena, as well as the past COVID-19 disruptions, the industry’s suspension for several years presents a significant opportunity for all stakeholders to reposition tourism for sustainable development.

Some studies suggest the tourism industry will recover after COVID-19 (Zhong et al., 2021 ). However, given the abovementioned problems caused by over-tourism, what needs to be considered is the sustainability of the tourism industry post-COVID-19. Researchers and tourism stakeholders are becoming more aware of the importance of the concept of sustainable development (Miceli et al., 2021 ), especially since COVID-19, as the tourism or hospitality industry remains one of the least developed sectors in terms of sustainable tourism practices (Kim and Park, 2017 ). Korstanje and George ( 2020 ) noted that over-tourism is a chronic disease that mere temporary changes cannot treat; it can be minimized via education and training to raise awareness. The tourism industry needs to rethink how to develop in a sustainable and healthy direction (Higgins-Desbiolles et al., 2019 ), not only in terms of ecotourism or green tourism but also in terms of putting the concept of sustainability into practice at a deeper level as it faces multiple pressures and challenges of an overarching environment, economy, and society.

Sustainability is often cited as one of the reasons for improved competitiveness among different tourism destinations (Han et al., 2019 ). The United Nations 2030 (UN, 2030 ) Agenda for Sustainable Development has developed a Sustainable Development Goals (SDGs) plan, defined as a set of global goals for fair and sustainable health at every level, from the planetary biosphere to the local community. The aim is to end poverty, protect the planet, and ensure that everyone enjoys peace and prosperity now and in the future. The basic concept is that productivity can be preserved for future generations. Due to the general emphasis of the United Nations World Tourism Organization (UNWTO) on sustainable tourism and the industry’s economic importance, the SDGs and its associated millennium development goals (MDGs) have become critical elements for research into tourism’s contribution to sustainable development and overall sustainability (Saarinen et al., 2011 ; Saarinen and Rogerson, 2014 ). Winter et al. ( 2020 ) indicated that as sustainable tourism development needs to take complete account of the combined social, economic, and environmental impacts, stakeholders are expected to integrate scientific management and practice for future sustainability using updated and innovative technologies that can provide more tourism opportunities for groups unable to travel directly while enhancing environmentally-friendly behavior. Bramwell and Lane ( 2011 ) suggested that effective policy support is also crucial to implementing sustainable tourism development, as the path to sustainable development is guided and monitored by excellent and progressive policies. From a postmodernist perspective, social media and place brand authenticity in smart tourism are essential to place trust, place identity, and place brand image, while the development of this brand authenticity is one of the critical indicators of the visitor experience (Handayani and Korstanje, 2017 ). As a result, Korstanje et al. ( 2022 ) contended that new paradigms and strategies must be created to confront risks to tourism in the 21st century and satisfy the SDGs by 2030.

Several studies are underway to determine the impact of various programs and strategies on the environmental component of sustainability practices (Goralski and Tan, 2020 ). Yalina and Rozas ( 2020 ) suggested that a digital workplace can promote environmental sustainability. Although there have been studies on the digitalization of tourism and environmental sustainability, such as Loureiro and Nascimento ( 2021 ), who reviewed digital technology on the sustainability of tourism using bibliometric methods, there is a need for a thorough examination of the impact of digital transformation on sustainable tourism growth, particularly in terms of economic and social dimensions (Feroz et al., 2021 ). Therefore, the objective of this study is to review the impact of tourism digital technology development on the economic and social sustainability of tourism development to offer future research guidance.

With the growing literature and the emergence of cross-disciplinary research related to sustainability and digitalization in tourism development, it is critical to analyze the changes in its research, summarize the focus of previous research content, and predict future research prospects. As a result, this study will address the above research gaps by answering the following three questions.

RQ1: What are the prominent documents, authors, sources, organizations, and keywords in digitalization for the economic and social sustainability of tourism development?

RQ2: What are the linkages based on bibliographic coupling, co-authorship, co-occurrence, and citation in digitalization for the economic and social sustainability of tourism development?

RQ3: What is the future research agenda based on the results of this study?

Literature review

Several review papers on tourism research are now available and relevant to this study. Ülker et al. ( 2023 ) assumed that there are currently 136 bibliometric studies in the tourism and hospitality industry, of which the literature review studies on overall trends in the tourism and hospitality industry are continuously being updated (Chang and Katrichis, 2016 ; Wang et al., 2023 ). Also, economic development in the tourism industry (Comerio and Strozzi, 2019 ), tourism marketing (Mwinuka, 2017 ), tourism and education (Goh and King, 2020 ), hospitality (Manoharan and Singal, 2017 ), Airbnb (Andreu et al., 2020 ), and even COVID-19 review articles related to tourism development are available (Bhatia et al., 2022 ).

With the emergence of cross-disciplinary digital-related technologies, the link between tourism and digitalization has become one of the hot topics of research, and as a result, several literature review articles on digitalization and tourism have been published, such as on robotics (Buhalis and Cheng, 2020 ; Ivanov et al., 2019 ; Pizam et al., 2022 ), ICT (Buhalis and Law, 2008 ; Law et al., 2014 ), big data (Li et al., 2018 ; Stylos et al., 2021 ), smart tourism (Buhalis, 2020 ; Mehraliyev et al., 2020 ), social media (Buhalis and Inversini, 2014 ; Mirzaalian and Halpenny, 2019 ), eye-tracking (Muñoz-Leiva et al., 2019 ; Scott et al., 2019 ), AI (Buhalis and Moldavska, 2022 ; Doborjeh et al., 2022 ; Dwivedi et al., 2023 ), VR (Koohang et al., 2023 ; Wei, 2019 ), AR (Jingen Liang and Elliot, 2021 ; Tscheu and Buhalis, 2016 ; Yovcheva et al., 2012 ), MR (Buhalis and Karatay, 2022 ), and the Metaverse (Ahuja et al., 2023 ; Buhalis et al., 2022 , 2023 ; Go and Kang, 2023 ).

Due to the rise of sustainability research, the literature review on sustainability research in tourism has seen a stark increase (León-Gómez et al., 2021 ; Ruhanen et al., 2018 ; Streimikiene et al., 2021 ). The proliferation of studies related to digitalization and sustainable tourism development has led to a considerable number of review articles (Elkhwesky et al., 2022 ; Gössling, 2017 ; Loureiro and Nascimento, 2021 ; Nascimento and Loureiro, 2022 ; Rahmadian et al., 2022 ). Feroz et al. ( 2021 ) conducted a literature study on the environmental aspects of tourism sustainability and digitalization; however, there is a distinct lack of studies on the economic and social dimensions.

Therefore, the study’s unique value is that it presents the first literature review in the field of digitalization and social and tourism economic sustainability development using a novel method of systematic literature network analysis (SLNA), filling a gap in the literature review landscape and addressing the need for more comprehensive, detailed, and up-to-date research endeavor.

Methodology

Colicchia and Strozzi ( 2012 ) proposed a systematic literature review analysis (SLNA) to identify past research trends more sophisticatedly, integrated, and scientifically. This method is currently used in reviews of sustainable development research (Afeltra et al., 2021 ) but is rarely used in reviews of tourism sustainability; therefore, SLNA is used in this study.

Systematic literature review (SLR) and bibliographic network analysis (BNA) are the two phases of SLNA. These actions comprise the first phase of SLR, which includes choosing the study’s final selection, conducting a dialectical examination of the most pertinent articles, and evaluating the results. Next, citation analysis and bibliographic coupling of BNA are also included in this paper to investigate the relationship between the previous literature, assess the research trends, and aid in uncovering future research innovation opportunities. Bibliographic coupling is a scientific mapping technique regarding two articles with a common citation contentedly comparable. This technique permits the segmentation of publications into thematic clusters utilizing published references to understand the most recent developments in current research issues (Donthu et al., 2021 ). Citation analysis reveals which papers are influential and their authors and journals and aids in comprehending what past literature has contributed (Pilkington and Meredith, 2009 ).

First phase: systematic literature review (SLR)

Introduction of slr.

The most widely used and reputable databases are the Web of Science (WOS) and Scopus (Garrigos-Simon et al., 2018 ); thus, both were used in this study to eliminate data search omissions, broaden the search scope, and improve the accuracy of data outputs.

Figure 1 shows the flow diagram for systematic bibliometric analysis. Firstly, this paper takes “virtual reality or augmented reality or artificial intelligence or big data or mobile technology or internet of technology or social platform technology) and (sustainable tourism development or sustainability of tourism or green tourism or ecotourism” as keywords. The search process began by searching topics (including article titles, abstracts, and keywords). The language of the articles was set to English and had to be published between 2012 and 2022. The search process resulted in 91 articles. The data were extracted on February 15, 2022, per Fig. 2 .

This figure shows the overall process of this study from database selection until suggestions for future research. Source: Own elaboration.

The criteria and steps used to identify the selected target literature are explained in this diagram. Source: Own elaboration.

A review article with scholarly worth and contribution is required to describe the literature’s links and contents and examine and critique it precisely (Hart, 2018 ). As seen in Fig. 3 , the following research topics are divided into two categories: economic sustainability (which includes topics such as economic benefit, industry development, and tourist consumption) and social sustainability (which includes topics such as tourist behavior, social development, cultural awareness, and participation).

The research topics are divided into two categories: economic sustainability (which includes topics such as economic benefit, industry development, and tourist consumption) and social sustainability (which includes topics such as tourist behavior, social development, cultural awareness, and participation. Source: Own elaboration.

The SLRs are used to locate, appraise, and synthesize existing, completed, and documented work (Cocchia, 2014 ), facilitating classification and summarization, particularly for micro-profiling within macro-level fields of study.

Digitalization’s impact on economic sustainability

Digitalization’s impact on economic benefits.

Adequately improving the economic development of tourism is also one of the sustainable needs for developing tourism. At a time when tourism has been devastated by COVID-19, the tourism industry has almost ceased to exist. Therefore, one of the most popular research topics is maintaining substantial economic benefits while allowing the tourism industry to flourish sustainably.

Digital technology has piqued researchers’ interest due to its potential benefit to the tourism industry. Technologies that directly improve the economic situation are classed as economic benefits, and per many studies, digitization positively impacts local economic development and may bring objective revenue to tourism (Tables 1 – 7 ).

Digital technology promotes economic development. The growth of information communication technologies (ICT) positively impacts China’s tourism industry while promoting economic growth (Shehzad et al., 2019 ). As a rapidly evolving digital technology, mobile technology has significantly minimized asymmetric information, enhanced local GDP growth, and increased citizens’ financial capital through tourism (Kim and Kim, 2017 ; Phoong et al., 2022 ). Technologies such as 3D virtual, mixed reality (MR), virtual reality (VR), or augmented reality (AR) applied in heritage tourism can effectively increase local economic income and the added value of tourism (Manglis et al., 2021 ; Martinez-Grana et al., 2019 ). Furthermore, marketing tools such as small programs and network technologies confer several advantages to tourism stakeholders, such as the ability to help local communities contribute value and support the tourism economy (Caciora et al., 2021 ; Lin et al., 2020a , b ). Also, smart heritage city tourism technology tools can drive the tourism economy to inaccessible areas (Gomez-Oliva et al., 2019 ).

The increase in income is proportional to increased economic benefits. ICT is often used in the tourism industry, which has an essential impact on the tourism service industry, one of which is the improvement of tourism income (Gomez-Oliva et al., 2019 ; Koukopoulos and Koukopoulos, 2019 ). Virtual tourism technologies, such as AR and VR, are digital tools that can help overcome cultural heritage tourism challenges, such as reviving the tourism industry and resolving funding shortages (Lu et al., 2022 ). Mobile money, such as electronic traveler’s checks and credit cards, can assist low-income people in taking advantage of their marginal savings and encourage implementing a cashless economy for tourism sustainability (Singh, 2017 ).

Second, digital marketing technologies are frequently utilized by hotels to improve hotel performance, which increases profit (Theocharidis et al., 2020 ; Vitezic et al., 2015 ). Another example is Muslim-friendly apps promoting the international trade of products during the tourism process (Cuesta-Valiño et al., 2020 ),

Digitalization’s impact on tourism industrial development

Technological development has driven the tourism industry in local tourist cities, organizations, businesses, and governments. From the perspective of industrial market development, ICT, extensive data network marketing, and other virtual tourism technologies can create market development potential and improve market positioning for companies (Ammirato et al., 2021 ; Filipiak et al., 2020 ; Ma et al., 2021 ).

Adopting and applying information in the tourism industry are commonly regarded as a source of corporate innovation. The implementation of ICT can increase the profitability of tourism enterprises while also increasing organizational productivity (Croitoru and Manoliu, 2016 ; De Lucia et al., 2021 ; Duy et al., 2020 ; Obonyo et al., 2018 ). VR, AR, 3D digital technology, and mobile technology can all be used to improve a company’s performance and competitiveness in the tourism industry (Cranmer et al., 2021 ; Koukopoulos and Koukopoulos, 2018 ; Pavlidis et al., 2022 ; Yuce et al., 2020 ), and these technologies have made significant economic contribution to economic sustainability.

The application and implementation of ICT play an essential role in developing the tourism industry (Adeola and Evans, 2020 ; Tan et al., 2019 ; Zhou and Sotiriadis, 2021 ). Also, digital advanced technologies, such as MR technology adopted by museums, AR technology adopted by destinations, and smart tourism products and tourism ecological reservation systems have made significant contributions in the front-end development stage, providing opportunities to monitor the future development of tourism, as well as being beneficial to the formulation and implementation of tourism industry strategies at later stages (Graziano and Privitera, 2020 ; Tsai et al., 2018 ). The abovementioned electronic environment is an excellent lubricant for tourism’s active and healthy development (Maiorescu et al., 2016 ). Moreover, apps can help customers understand legacy cities more from the standpoint of heritage preservation and help cities promote tourist city development (Briciu et al., 2020 ).

From the perspective of products sold and variations in product types, online services in Muslim-friendly apps can be helpful for market segmentation and promotion of product positioning and sales (Cuesta-Valiño et al., 2020 ). Furthermore, virtual multi-sensory technologies can improve the company’s potential, increase public awareness, and sell products (Martins et al., 2017 ). Undeniably, the development of digitalization enriches the cultural service products of museums in developing heritage tourism (Palumbo, 2021 ), and AR technology also increases the diversification of products in water tourism (Kaźmierczak et al., 2021 ).

Digitalization’s impact on tourism consumption

Tourists’ spending power can reflect the overall economic development of the tourism industry as one of the contributing variables, and the number of tourists and the value of tourist flow are two measurement criteria of tourism consumer spending. Tourism apps, for example, can make traveling more convenient for tourists, increasing tourism consumption (Lin et al., 2020a , b ). Virtual tourism products or augmented reality technology allow tourists to spend more leisure time, increasing consumption (da Silva, 2021 ; Pehlivanides et al., 2020 ).

The application of virtual tourism technology is also helpful in improving the attractiveness of tourists (Cai et al., 2021 ; Manglis et al., 2021 ; Martins et al., 2017 ). Meanwhile, big data analytic tools, e-marketing (WOM), and mobile applications positively influence customers’ intention to travel and contribute to improving tourism sustainability (Gajdosik, 2019 ; Kim and Chang, 2020 ; Pica et al., 2018 ). With the application and construction of ICT, the demand for tourism has increased, and the number of tourists has also increased (Adeola and Evans, 2020 ; Kabassi, 2017 ; Kumar and Kumar, 2020 ). In addition to enhancing tourists’ imagination, virtual tourism technology and 3D digital technology can also be used as practical tools to further develop tourism and increase the number and flow of tourists (Bae et al., 2020 ; Graziano and Privitera, 2020 ; Pavlidis et al., 2022 ). Word-of-mouth marketing has increased the number of tourists (Fernandez-Lores et al., 2022 ; Wang et al., 2020 ).

Digitalization’s impact on social sustainability

Digitalization’s impact on tourist behavior.

Virtual tourism technology is gradually being implemented in the tourism industry, focusing on increasing the satisfaction of the elderly and disabled (Lu et al., 2022 ). Artificial intelligence and virtual reality are integrated into human-computer interaction system equipment, boosting service quality and increasing tourist satisfaction (Van et al., 2020 ). The mixed experience helps enrich tourists’ feelings about the surroundings, thereby boosting tourists’ contentment (Bae et al., 2020 ), and the succinct information and dependable system offered by VR can promote tourists’ satisfaction (Yuce et al., 2020 ). 3D digital technology to build innovative and appealing tourism items can help boost consumer satisfaction and positive feedback (Pavlidis et al., 2022 ).

Tourism stakeholders’ use of tourism apps is critical to increasing tourist satisfaction (Lin et al., 2020a , b ). For example, tourism management in Ho Chi Minh City’s use of Web 4.0 can increase customer satisfaction and loyalty in the long run (Duy et al., 2020 ). The mobile usability and ease of use of social media as a suitable medium directly impact satisfaction (Sharmin et al., 2021 ). It can also serve as a platform for tourists to communicate and contribute to increased satisfaction (Jamshidi et al., 2021 ). Simultaneously, tourism safety is an essential factor that influences tourist satisfaction, and the use of closed-circuit television (CCTV) and unmanned aerial vehicles (UAVs) can help to improve tourism safety (Ko and Song, 2021 ). The use of mobile technologies and payment mechanisms in the tourism process is also a fascinating study. Through electronic technology, two-dimensional code payment techniques improve tourists’ pleasure (Lou et al., 2017 ). Furthermore, incorporating digital innovation into hotel management structures increases hotel performance and client satisfaction (Vitezic et al., 2015 ).

Tourism satisfaction is directly related to tourism experience, and tourism experience is one of the most important criteria to measure in the tourism process. The findings suggest that using virtual immersion technologies such as AR, VR, and MR in the tourism process can significantly improve the tourist experience (Bae et al., 2020 ; Fernandez-Lores et al., 2022 ; Franco and Mota, 2021 ; Lee and Kim, 2021 ; Yin et al., 2021 ).

Additionally, the intention and motivation of tourism drive tourism behavior from the psychological aspect. Digital innovative technology can boost tourists’ interest in tourism products and locations, enrich their understanding of tourism culture, attract more tourists, enhance tourists’ preferences, and strengthen their desire to visit (Caciora et al., 2021 ; Cranmer et al., 2021 ; Gajdosik, 2019 ; Kang, 2020 ; Kaźmierczak et al., 2021 ; Manglis et al., 2021 ; Monterroso-Checa et al., 2020 ;). Digital marketing tools can ramp up customers’ desires and habits (Theocharidis et al., 2020 ), and digital mobile programs can increase tourists’ attention, influencing their overall view of the tourism experience (Wang et al., 2020 ). Big data can also be utilized to foresee client wants and expectations, allowing for a better understanding of customer needs (Del Vecchio et al., 2018 ). For example, Internet of Things technology can scientifically guide and divert tourists to alleviate the problem of local saturation and overload in scenic sites, thus improving the tourist experience (Xie and Zhang, 2021 ). It can also provide various cultural tourism content to enhance and support the experience of active tourists (Ammirato et al., 2021 ).

Digitalization’s impact on social development

Tourism planners and governments can use the analytic hierarchy process (AHP) and geographic information system-remote sensing (GIS-RS) technology to accurately select sites, develop eco-tourism activities, relieve the burden of tourism in the region, and thus help the locals create new employment opportunities (Chaudhary et al., n.d. ). Virtual tourism technology, such as AR, can also aid in analyzing tourist flow and conditions, improve safety, and expand job chances (Franco and Mota, 2021 ). Advances and innovations in tourism ICT can benefit enterprises enough to increase job prospects (De Lucia et al., 2021 ). Virtual tourism, ICT, mobile technology, smart heritage tourism technology, and innovative marketing methods improve stakeholders’ quality of life, increasing the tourism system and community awareness (Lemmi and Deri, 2020 ).

Digitalization’s impact on cultural awareness

Virtual technologies, such as AR, VR, and mobile augmented reality (MAR), are now widely used in cultural heritage tourism, with the potential to protect cultural heritages and enhance the potential of heritage management, thereby contributing to cultural communication (Bec et al., 2019 ; Caciora et al., 2021 ; Graziano and Privitera, 2020 ). Some studies indicate that online engagement platforms, mobile application technologies, and smart tourism models can all support the socially sustainable growth of culture (Bonacini et al., 2018 ; Pica et al., 2018 ; Zubiaga et al., 2019 ).

AR, VR, and other techniques can promote tourists’ behavior in underwater cultural tourism and raise public awareness of natural heritage protection among tourists (Manglis et al., 2021 ). Research on low-carbon travel modes is frequently concerned with tourism sustainability, and big data marketing technology can supply tourists with more low-carbon transport schemes, thus increasing tourists’ environmental consciousness (Ma et al., 2021 ). As a common medium for cultural communication, social media can raise tourists’ awareness of environmental protection (Haque et al., 2021 ).

Digitalization’s impact on participation

Tourists’ active participation in cultural heritage can be enhanced by digital technology, as can people’s feeling of belonging and responsibility to society (Koukopoulos and Koukopoulos, 2019 ; Permatasari et al., 2020 ). Virtual technology can also encourage public participation in preserving and promoting cultural heritages (Caciora et al., 2021 ), while digital media can help tourism businesses improve public relations and social participation (Camilleri, 2018 ; Haque et al., 2021 ). Increased smart tourism destinations optimize the potential for these communities to involve the destinations’ residents and impact their lives due to the improved urban tourism experience.

Stakeholders are closely linked to the sustainable development of tourism. Innovative applications of digital technology can better manage destination stakeholders, strengthening their linkages (Camilleri, 2018 ), help promote their participation in the development of tourist destinations (del Vecchio et al., n.d. ; Gajdosik, 2019 ), and create a democratic and sustainable system when promoting cultural heritage, which balances the opinions of different stakeholders.

The interactive network platform empowers local communities and encourages local inhabitants and tourists to communicate, which promotes the healthy growth of resident-tourism relationships (Dionisio et al., 2019 ). Also, ICT tourism apps influence the ultimate perception of older tourists’ travel experiences, stimulate tourists’ interest in world cultural heritage sites (WCHS), and increase contact and understanding between tourists and destinations (Ramos-Soler et al., 2019 ). Social media can help tourists increase their knowledge of environmental protection, which increases the participation of tourists and citizens and helps formulate sustainable goals (Haque et al., 2021 ).

Second phase: bibliographic network analysis (BNA)

The VOSviewer is the analysis tool used in this work to visualize the impact of digital technology on sustainable tourism development in economic and social aspects. VOSviewer employs the visualization of similarities (VOS) mapping approach to create a map (Moya‐Anegón et al., 2007 ).

Bibliographic coupling network of sources

Bibliographic coupling analysis mainly measures the similarity of documents by the number of identical references cited by documents. Although co-citation refers to the appearance of two documents in the same reference list, bibliographic coupling refers to the number of references that a group of papers share; for example, paper A and paper B are coupled if they both cite document C (Garrigos-Simon et al., 2018 ). In other words, bibliographic coupling happens when two documents quote the same document (Phoong et al., 2022 ; Mulet-Forteza et al., 2018 ), demonstrating the power of one publication in comparison to a group of others (Cavalcante et al., 2021 ). It should be pointed out that the size of the sphere represents the number of similar citations. This paper analyzes the bibliographic coupling network of sources, and the findings are summarized in Fig. 4 . Per Fig. 4 , there are 9 clusters, and the journal source with the highest number of similar citations is Sustainability . It can, therefore, be concluded that this journal has the most citations and published articles on this subject.

This figure refers to the number of references shared by a group of papers. Source: Own elaboration.

Citation network of documents

Citations are formed when two documents cite the same document and are used to illustrate the relation between documents and study fields. Figure 5 shows four clusters, each representing the degree of connection and the extent of influence in size. This study has the highest influence, according to the largest green group. It offers insight into the impact of reality and virtual reality on heritage tourism, stating that these technologies favorably impact tourists’ experiences (Bec et al., 2019 ).

Cluster size indicates the degree of connection and influence of the literature and research area. There are four groups, with the blue (Encalada et al., 2017 ) and green (Bec et al., 2019 ) groups representing the two articles that are relatively most influential. Source: Own elaboration.

This Blue Group study is also prominent, proposing that the widespread use of information and communication technologies, such as cloud computing, the Internet of Things, and data mining with high processing performance, are the key to tourism’s sustainability (Encalada et al., 2017 ).

The number of citations between documents is used in co-citation analysis to determine their relevance. Figure 6 shows which publications are cited most frequently, and it is clear that tourism management and sustainability are the two commanding the most attention. Generally, the closer two journals are located to each other, the stronger their relatedness. For example, according to an article published in Tourism Management , virtual reality has significantly increased tourism intention and consumption (Tussyadiah et al., 2018 ). Simultaneously, this article presents the finding, which illustrates that combining history with cutting-edge technology in immersive spaces can preserve and manage legacy and enrich the visitor experience and, as a result, engagement with history (Bec et al., 2019 ).

This figure represents the citation strength of publications. The circle distance represents relevance. Source: Own elaboration.

Co-occurrence network of Keywords and titles

The significance of keyword co-occurrence analysis in bibliometrics resides in an intuitive understanding of hot subjects in the study field through the frequency and relevance of terms (Phoong et al., 2022 ). Before that, the following considerations must be made.

To begin, each node in the network map indicates a keyword, and the size of the ball represents the number of keywords that appear. The larger the ball, for example, indicates the higher frequency of keywords occurring. Second, the larger the co-occurrence rate between terms, the thicker the curve between the second keywords. In the third, on the network map, different color groups reflect different theme collections, while the same color represents similar subjects (Loureiro and Nascimento, 2021 ).

Figures 7 and 8 illustrate overlay visualization (Fig. 8 ) and network visualization (Fig. 7 ). From Fig. 7 , the keywords of high frequency include tourism (37 occurrences), technology (35 occurrences), tourist (32 occurrences), experience (31 occurrences), information (25 occurrences), application (23 occurrences), data (22 occurrences), analysis (21 occurrences), impact (21 occurrences), sustainability (14 occurrences) and sustainable development (9 occurrences). Some of Red Network Group’s primary keywords are tourism, information, impact, communication technology, virtual reality, new technology, and cultural tourism. The study’s content focuses on the impact of the relationship between information technology and tourism. Yellow Network Group’s primary keywords are destination, tourism destination, environment, and AR, mainly concentrated on destination environment and AR application research. The green network group comprises tourists, analysis, process, big data, management, stakeholders, case studies, innovation, and other topics. This group has conducted more studies on the effect of digital technology on enterprise management from stakeholders’ perspectives. The Blue Network Group focuses on technology, experience, data, service, research, relationships, social media, sustainable development, tourist satisfaction, intention, and other related topics, and this group study is particularly interested in the influence of technology on tourist experience and satisfaction.

The same color indicates a close relationship between the keywords. The red network group focuses on tourism and information technology, the yellow network group concentrates on destinations and the environment, and the blue group emphasizes tourists and technology, the green group concerns tourists and analyses. Source: Own elaboration.

Darker colors indicate older keywords such as tourists, information, data, research, etc. and lighter colors show the recent hot keywords such as big data, AR, VR, sustainable development, etc. Source: Own elaboration.

After conducting a literature review on digital technology’s economic and social implications on sustainable tourism development over the last ten years and creating a density visualization network map, it can be concluded that tourist experience, information technology, augmented reality, and data are research hotspots. As a result, most studies on tourism sustainability in social and economic dimensions focus on the impact of digital technology on the tourist experience.

Even though they are all co-occurrence analyses of keywords in literature, the emphasis in each network map is different. Generally, overlay visualization and network visualization are comparable to a certain extent; however, the color differs in overlay visualization (Fig. 8 ). In the lower right corner, there is also a quantification table. Purple indicates that the keywords are older, while yellow indicates that they are more modern. For example, keywords such as big data, augmented reality, sustainable development, creation, and intention are yellow, indicating a recent research hotspot, but keywords such as communication technology, information, environment, and service are purple, indicating that these themes were formerly popular.

Results and discussion

The data were collected from 2012 until February 2022. Analysis of the published articles shows a significant increase in publications on digitalization and tourism sustainability development. In 2017, seven articles were published, 10 in 2018, 16 in 2019, and 23 in 2020 and 2021. Furthermore, there are 6 published in the first two months of 2022. These findings illustrate a rise in data availability for digitalization and sustainable tourism development research and suggest that researchers are considering this topic more seriously, demonstrating its value to academic research.

According to the findings, Sustainability was the top journal in published digital and tourism sustainability-related articles. This is followed by the International Journal of Tourism Research , Tourism Management , and Current Issues in Tourism . The number of publications on the relevant subject has increased steadily, particularly in recent years, indicating that this form of research is increasingly gaining attention. Research over the last decade has shown the existence of a certain number of empirical studies on the relationship between digitalization and tourism social and economic sustainability, and from the bibliometric analysis, it emerges that the current research direction on tourism social and economic sustainability has shifted from exploring ICT to AR and VR. Moreover, Tourism Management and Sustainability have the highest citation.

In summary, this study answers RQ1 using the bibliometric literature analysis, while a systematic literature review used to answer RQ2 and RQ3 is discussed in the conclusion and further recommendation sections.

The content of relevant articles published in WOS and Scopus in this research area over the last decade was visually analyzed through bibliometric and systematic literature analysis, and a total of 91 articles meeting the research criteria were selected to provide information on the status of the impact of digitalization on the social and economic aspects of sustainable tourism development, as well as to identify specific research fields and research topics. It can be concluded that the digitalization of the social dimension of tourism sustainability is more richly studied and explored from a more diverse perspective, considering not only the tourists’ but also the residents’ perspectives. There are two implications in the present study. The first is that this study pinpointed the knowledge gaps. Systematic literature review analysis is used in this study to identify the gaps in the existing body of research in tourism development. By reviewing the previous literature and synthesizing the findings, researchers can identify the areas receiving limited or much attention. This insight is valuable for policymakers, tourism planners, and researchers when dealing with specific areas where future research is warranted. Furthermore, the publication trend and popular research themes were also discussed in this study. This enables the policymaker and tourism planner to understand tourism development and the potential for improved policies and practices. The second implication is enabling evidence-based decision-making in tourism development. Researchers can identify patterns, trends, and best practices by synthesizing the findings from multiple studies. This evidence-based approach helps policymakers, destination managers, and tourism stakeholders make informed decisions and develop strategies grounded in research. However, there is a lack of a more comprehensive perspective to explore in an integrated manner. For example, social and economic sustainability development sometimes does not increase simultaneously, and perhaps there is a particular imbalance between the two when using certain digital technologies. Therefore, it can be observed from this study that there is a lack of research in the past ten years that has explored both the economic and social sustainability of tourism comprehensively and that future research could emphasize the integration of social and economic sustainability, even a synthesis study of three dimensions: environmental social, and economic.

Therefore, when considering future developments, several challenges were raised.

Lack of integration study of social and economic dimensions.

Lack of cooperative research among other disciplines.

Lack of suitable theory and conceptual model for sustainable development research in the tourism area.

Lack of universality in different regions based on proposed digital technology.

Lack of research from the perspective of subject education or particular population as the research object.

Based on this literature study, relatively few research topics about this research area are suggested, and the following research scope and questions can be referred to as a priority in the future research process so that research trends can be accurately grasped more quickly and efficiently.

What is the impact of digital technologies on the economic and social sustainability of destinations?

How do digital technologies used in cultural heritage tourism impact tourism sustainability?

What is the impact of digital technology on education?

How can tourism companies improve employee satisfaction, loyalty, and sustainable performance through digital technology?

How can we create a globally accessible and digital system for tourism destinations for sustainable development goals?

How does digitalization impact sustainable development from stakeholders’ perspectives?

The above suggestions and research direction recommendations can provide new research inspiration to researchers in the same field for future research, and this study is expected to help other researchers understand the current research trends related to the digitalization of sustainable tourism development.

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This research is supported by the Universiti Malaya International Collaboration Grant, grant number ST013-2022.

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Jiang, C., Phoong, S.W. A ten-year review analysis of the impact of digitization on tourism development (2012–2022). Humanit Soc Sci Commun 10 , 665 (2023). https://doi.org/10.1057/s41599-023-02150-7

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Problems And Prospects Of Using Digital Technologies In Tourism

Tourism is one of the most dynamically developing areas of the world economy. The multiplicative effect of tourism is enormous, since the development of this industry affects many areas, including environmental, social and economic, which in turn affects the sustainability of the development of territories and regions. The digital transformation of society is an irreversible process, especially in the framework of recovery from the pandemic, and the tourism industry is no exception. One of the main products of the tourism and hospitality industry is a unique experience, impressions, emotions. In a highly competitive environment, the development and implementation of innovations is at the forefront in order to achieve a competitive advantage. The widespread use of technological innovations in the tourism industry will improve the experience of tourists, thanks to a deeper immersion of a person in a reality different from everyday life. According to the authors of the work, there is no mutual understanding between the providers of tourist services and information technology in the specifics of each other's spheres, but with their cooperation it is possible to achieve common well-being. Within the framework of this work, the prospects and problems of the introduction and application of digital technologies in tourism are analyzed, and a number of recommendations are given for representatives of the tourism business.

Keywords: Digital technologies , digitalization , economics , entertainment , tourism

Introduction

Digitalization currently covers a large number of spheres of economy and public life and continues to look for new ways of its implementation. Tourism is no exception.

Digital tourism as a separate category was on the agenda and it continues to interest many domestic and foreign scientists. Issues of digital tourism development were dealt with by: Glushkova, Piyadin, Nayda, Shamlikashvili, Guttentag, Merkx, Nawijn, Poux, Lehto. However, the issue of successful implementation of digital technologies in the tourism sector is still relevant. Moreover, the rapidly changing conditions that have become a consequence of the coronavirus pandemic have led to major changes in almost all spheres of society. Many sectors of the economy had to use new digital tools to transfer operational processes for remote access.

The tourism industry is among the most affected, since the restrictions primarily affected the movement of people and accommodation, catering and leisure enterprises. However, the industry has adapted to the prevailing conditions: museums held virtual exhibitions and online tours, theaters held online broadcasts of performances, hotels changed their focus to security (contactless registration, applications for virtual communication with guests, the use of QR codes for access to public places, etc.) ( Bafadhal, 2021 ).

Problem Statement

There is no understanding between representatives of IT and HORECA as business areas why cooperation between these two areas is necessary, while, in our opinion, this can be effective cooperation in terms of creative, socio-economic, research goals. This paper analyses the prospects for the use of digital technologies in tourism, how and why they can be implemented.

Research Questions

Digital technologies by their nature can be used for different purposes in different areas. In practice, the tourism industry, especially in emerging economies, is poorly introduce technology into the operational processes associated with the provision of tourism services. Thus, we wanted to explore how technology can be used in tourism in a non-trivial way.

• How can digital technologies be used in the experience economy?
• How necessary is the use of digital technologies in order to meet the needs of tourists for rest, recreation and new sensations?

Purpose of the Study

In 2020, virtual travel became an upward trend, which was due to self-isolation or quarantine regimes. Some destinations have developed an audio travel format that allows a person to mentally travel to a remote corner of the earth. For example, Un Gioco di Societa is an Instagram project of Italian entrepreneurs that allows you to walk through the streets of Milan, Rome and Naples. Unlike Google street panoramas, time and weather change here, tourists can interact with passers-by, as well as participate in various scenarios.

Thus, the purpose of this work is to study the current problems and prospects of using digital technologies in tourism. In the opinion of the authors, at the moment the tourism industry only partially uses the potential of digitalization, which is due to the weak knowledge of this issue.

Research Methods

To achieve this goal, a comprehensive analysis of the market of existing digital technologies for the tourism industry was carried out, as well as a synthesis of problems of their wider use. In addition to empirical and statistical data, the scholarly literature on this topic was analyzed. The classification of possible problems of the introduction of digital technologies in the tourism industry was carried out. The authors proposed solutions aimed at improving the use of digital technologies in the tourism industry using generalization and critical thinking in the framework of the work.

Digital technologies are beginning to penetrate the tourism industry at a small pace. However, today there is no clear understanding of how to most effectively apply the achievements of scientific and technological progress in the field of recreation.

It is important to note that in this case we are talking about the interweaving of two diametrically opposite spheres: tourism and digital technologies. The tourism sector is the most promising for the introduction of digital technologies, as it can offer a wide range of new types of entertainment and leisure.

The Internet has firmly entered the life of tourists: booking and buying tickets, ordering transfers, communicating with hotel representatives – all this has moved to websites and special applications. Of course, the possibilities of the digital sphere for the tourism industry are much more extensive. The impression economy can use blockchain technologies, artificial intelligence, big-data, biometric authentication systems and others.

In the last decade, companies have increasingly introduced CRM systems, automatic tools for setting tasks and planning, as this has a positive effect on the productivity and profitability of the company, and consequently on its competitiveness. Freeing up free time allows the staff and management of the organization to focus on innovation, further automation or expansion of the company's offerings. The latter is especially important in the context of the popularization of independent travel: since many travel companies are losing their main consumers, expanding the range of services or entering a new market will allow the company to continue to exist on the market.

Digitalization changes the model of interaction of market entities and allows to increase the competitiveness of individual countries, industries or companies. In the modern world, data and information are an important asset, the fifth factor of production, which has great consumer importance and provides high surplus value. Digital technologies in the tourism sector allow the development of new personalized service models, as well as the sharing economy (sharing-models) ( Chhotua, 2021 ). This is important to increase the competitiveness of offers, as it increases the target audience, increases the quality and consumer value of the service.

In Russian legislation, the task of developing digital technologies and their use is enshrined in a number of normative legal acts, the National Program "Digital Economy of the Russian Federation", which is aimed at increasing the availability of digital technologies and their popularization, including in the service sector, is being implemented. Nevertheless, the imperfection of the legal framework regulating the interaction of market entities, issues of ensuring the protection of personal data remains an important problem worldwide ( Khurramov, 2020 ).

Strategic transformations of tourism and the hospitality industry in the era of the digital economy will affect the following areas: restructuring of the business model, involving the active introduction of various information technologies in the process of developing, promoting and selling a tourist product, the development of new high-tech products that meet the needs of modern tourists. Also, strategic transformations in tourism will affect the traveler himself, changing his preferences and travel goals.

It can be noted that at this stage the introduction of AR and VR technologies occurs at a rather superficial level ( Guttentag, 2010 ). Now their use is reduced to local projects in the field of marketing and entertainment. However, VR technologies can also be used in exhibition and congress activities. In large cities, there are already exhibitions where visitors are invited not only to look at the works of artists, but also to complement the image, to revive it. In this case, the use of technology makes an important contribution to the formation of impressions of visitors, tourists, because it gives an opportunity to immerse yourself in what is happening and forms a deeper attitude to action ( Trindade et al., 2018 ).

Taking into account the current trends of digitalization of society, it is necessary to introduce modern technologies more widely into recreational activities, to make them an integral part of the process of consumption of entertainment services. Since getting new impressions is one of the important motives for the consumption of tourist services, it can be said that the use of such technologies in exhibition and museum activities will favorably affect the effectiveness of the formation of their tourist attractiveness and, as a result, competitiveness.

Blockchain technology can also be introduced into the tourism industry. Blockchain will ensure the security of transactions, including payment transactions, both for the company and for the tourist ( Valeri & Baggio, 2021 ). On the part of the tourist, this technology can be used both for the purchase of tours or tickets, and during the trip: a tourist will be able to pay anywhere in the world without worrying about the exchange rate or the lack of cash. The travel company will be able to collect and store data on purchased tickets, booked rooms, used loyalty programs and other customer information. This will allow not only to respond quickly in emergency situations (for example, for the export of tourists from abroad), but also to build a marketing campaign and create personal offers.

An equally important role can be played by the use of artificial intelligence, which processes large amounts of information less energy-intensive. For example, it can analyze on which dates there will be the greatest demand for transportation or which destinations will be popular in a given season.

Biometric authentication systems are now used in many sectors of the economy, including transport. One of the possible areas of its application in tourism may be facial recognition technology for checking in and boarding passengers on a flight.

At the moment, the popularity of acquiring Non-fungible token (NFT) assets is growing. NFT is a kind of right to own a unique digital asset. Such an asset can be an object of art, music or sound, “space” in the game ( Mofokeng & Fatima, 2018 ). The development of this technology in the future gives a strong impetus to the development of digital tourism. Currently available VR technologies allow artists, designers to create unique spaces, universes, which, in turn, due to their uniqueness and the impossibility of replacement, give the potential for the development of some kind of personal offer ( Merkx & Nawijn, 2021 ). The inability to copy this offer will cause its high cost and value for consumers.

Currently, it can be assumed that the processes of digital transformation of the ways of selling and consuming tourist products, improving the efficiency of solving problems and tasks expected from their use, will become more and more diverse. If earlier the functions of sales and customer support were often performed by different divisions of the company and even by different companies, then digitalization and customer experience will increasingly lead to an expansion of the sequence of interaction between the client and the company with its product.

Despite all the possible advantages of using digital technologies in various aspects of tourism activities, several important problems can be identified (Figure 1).

1. Intellectual property issues

In this case, we are talking about the legal features of regulating relations between all participants in the production of goods and services. Moreover, legal relations in the field of intellectual property and digital relationships are a rather complex area of legal regulation.

To date, there are quite a few precedents in the field of the relationship between artificial intelligence and humans. Laws and regulations also do not consider all kinds of situations and ways to resolve them.

The difficulty of using digital technologies in other industries consists in that the fact that the technologies themselves are an object of intellectual property that does not belong to the company operating it. Accordingly, we are talking about the provision and observance of related copyrights. Thus, there is a need to create new institutions, laws and mechanisms regulating legal relations in this area. This process is also quite costly and responsible, although it will provide the basis for the further development of legal relations and functioning in this area.

2. Fear of innovation

Despite the convenience and practicality of these technologies, some consumers will still resist using them. It should be noted that society and certain categories of individuals perceive innovations and changes with caution. In this case, it is necessary to work on information support for all categories of travelers.

For example, initially cash-free payment was not very popular. However, in 2010–2018 there was a phenomenal, 30-fold increase in the number of non-cash card transactions in Russia: from 5.8 to 172 per person per year.

Speaking about informing consumers, it is also necessary to note the low level of promotion of the technologies themselves and available entertainment offers using digital technologies. That is, often people themselves find some kind of excursions using digital technologies, interesting exhibitions. At first glance, the problem is weak promotion. If we look at the situation more deeply, there is also an incorrect choice of target audiences.

Thus, it is necessary to conduct large-scale information campaigns so that every consumer understands how he can use a technological innovation and what it will give him. Information is an important part of the process of introducing information technology into operational tourism activities ( Lu et al., 2022 ). Moreover, for each segment, the audience may need to develop its own set of instructions, since each individual target audience perceives information differently.

3. The cost of implementation and use

As noted earlier, digital technologies should be used more widely in the tourism industry, as this will have a beneficial effect on increasing the attractiveness and potential of objects of tourist interest. However, both the development and implementation of technologies, as an intangible asset, entail large costs, which business representatives cannot always afford to incur. Moreover, it may not be possible for a small company.

Analyzing the prospects for the introduction of digital technologies in tourism, we can note that due to the relatively high cost of maintaining the technology, they must first be tested and aprobated in large cities, megacities, since they already have the necessary infrastructure. Definitely, for small regions, such technologies may be expensive at first, but in the long term it can be a factor in the sustainable development of the territory, by attracting tourist interest and the need for personnel to maintain the technology or project.

To decide whether a company should spend large financial resources on digitalization, it is necessary to conduct a financial and economic assessment of the effectiveness of its use ( Dianova & Sharifullina, 2020 ). Definitely, in most cases it will be positive, but it is important not to forget that there are products or services that do not need their digitalization.

4. Misunderstanding on the part of business

All of the above problems lead to the fact that many entrepreneurs do not see the point of digitalizing their activities. However, it should be remembered that the target audiences are very different in their values and preferences. So, for example, both generation Y and generation Z (according to the theory of generations of W. Strauss and N. Howe) do not represent life outside the digital environment and have high technical literacy, and they are now becoming the main consumers of tourist services.

Some companies, especially small startups, notice this feature. Young entrepreneurs are kind of innovators. Their ideas in their own way reflect the needs of young consumers, since they are an integral part of this group. More and more startups in tourism are focused on the introduction of digital technologies. Nevertheless, large business players are not ready to risk their reputation and introduce technological innovations into their production, since they focus on relatively outdated technologies that have been tested by time.

All these problems affect the decision-making process and the speed of the introduction of digital technologies into production.

More widespread use of information technologies in tourism will have a positive impact on the experience and impressions of tourists both about the destination and about individual tourist resources, products and services.

Technologies represent a wide range of technical and engineering achievements. Digital technologies make it possible to reduce costs, increase operational efficiency, improve the quality of services and the quality of customer service.

Today there is a great potential for the introduction of digital technologies into most business processes in order to increase the competitiveness of the enterprise and improve the overall welfare of society.

For developing economies, tourism is a strategic tool for ensuring economic growth. Increasing the competitiveness of the tourism industry in the global market of tourist services is becoming an important goal. Technological development, the creation of new, unique offers, goods and services, increasing access to tourist resources is becoming a factor in the growth of the attractiveness of destinations for tourists of different categories.

Since there is not a large number of studies showing the effectiveness of the introduction of digital technologies in tourism, entrepreneurs do not have confidence in the need to use them in their activities. Nevertheless, in the conditions of digitalization of society, it is necessary to adapt the sphere of leisure, entertainment and recreation to new technological realities.

Bafadhal, A. S. (2021). Virtual Tourism Initiative for Visitor Flow Management in the New Normal Era. Advances in Economics, Business and Management Research, 191, 162–167. DOI:

Chhotua, I. Z. (2021). Strategic directions of development of the tourism industry in the digital economy. Management Consulting, 4(148), 81–96. DOI:

Dianova, E. S., & Sharifullina, A. I. (2020). The development of financial regulation and the introduction of digital technologies in the service sector (using the example of the tourism industry). SNK-2020. Materials of the Jubilee LXX open international Student Scientific Conference of the Moscow Polytechnic University (pp. 601–606). Federal State Budgetary Educational Institution of Higher Education “Moscow Polytechnic University”.

Guttentag, D. A. (2010). Virtual reality: Applications and implications for tourism. Tourism Management, 31(5), 637–651. DOI:

Khurramov, O. K. (2020). The role of the tourism sector in the digitalization of the service economy. Economics and Innovative Technologies, 1, 6. https://core.ac.uk/download/pdf/336866916.pdf

Lu, J., Xiao, X., Xu, Z., Wang, C., Zhang, M., & Zhou, Y. (2022). The potential of virtual tourism in the recovery of tourism industry during the COVID-19 pandemic. Current Issues in Tourism, 25(3), 441–457. DOI:

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Mofokeng, N., & Fatima, T. (2018). Future tourism trends: Utilizing non-fungible tokens to aid wildlife conservation. African Journal of Hospitality, Tourism and Leisure, 7(4), 1–20. https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_21_vol_7_4__2018.pdf

Trindade, Y., Rebelo, F., & Noriega, P. (2018). Tourism and Virtual Reality: User experience Evaluation of a Virtual Environment Prototype. In: Design, User Experience, and Usability: Users, Contexts and Case Studies (pp. 730–742). Springer. DOI:

Valeri, M., & Baggio, R. (2021). A critical reflection on the adoption of blockchain in tourism. Information Technology & Tourism, 23, 121–132. DOI: 10.1007/s40558-020-00183-1

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Levchenko, K. V., Dianova, E. S., & Sharifullina, A. I. (2022). Problems And Prospects Of Using Digital Technologies In Tourism. In D. Bataev, S. A. Gapurov, A. D. Osmaev, V. K. Akaev, L. M. Idigova, M. R. Ovhadov, A. R. Salgiriev, & M. M. Betilmerzaeva (Eds.), Social and Cultural Transformations in the Context of Modern Globalism (SCTCMG 2022), vol 128. European Proceedings of Social and Behavioural Sciences (pp. 568-575). European Publisher. https://doi.org/10.15405/epsbs.2022.11.78

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Advantages and Disadvantages of Technology in the Tourism Industry

Technology has changed the lives of several people dependent on the way it’s changed their method of doing stuff. The tourism and hospitality sector is just one of those industries that have seen greater changes caused by technology. It’s not surprising that this sector is rated one of the top-performing industries across the globe. Tech has contributed a great deal towards this achievement. Tech is predominant in the success of their Hospitality and tourism sector no matter having any defects as evidenced from the newspaper.

Background Details

The tourism and hospitality sector is among the very best performing businesses, both on the regional/domestic and global levels. According to the Tourism World Council (2004), the tourism sector contributes approximately 10 percent of GDP from the entire world. This rate is anticipated to grow from the year 2014 (World Travel and Tourism Council 2004). The cause of this rapid expansion is that the adoption of information technologies in its operations and management. Many companies in tourism and hospitality include information technology in their companies consequently standing a fantastic prospect of reaping substantial yields of exactly the same. Computerized reservation systems are still an illustration of an information technology platform employed within this industry to accomplish the target clients.

Tech in the Business

Ahead of the progress of technologies, it had been quite tricky for the hospitality and tourist industry to advertise its solutions to its clients. It was very expensive because clients are constantly physically apart, miles apart, as an example. On the other hand, the arrival of data technologies has eased the trade of business apart from fostering the consumer base. The simple fact that folks can interact and communicate together in various areas has made it even simpler and economical to promote their services and products.

In years past the inter-organizational procedure, that linked associations has been the hottest kind of IT. But because of high costs, many companies couldn’t satisfy the price of utilizing it. The development of international supply systems lets simple communication and connection across boundaries. This enabled the quick transfer of data that helped boost the business concerning the number of reservations.

International supply was a kind of inter-organizational system which arose from computer monitoring systems that helped to incorporate data from the airline. These integrations fostered the tourism sector since clients could create their bookings at a common market. These programs were used from the 1960s, their integration into the computer was hopeless. The progress of technology has witnessed the development of the internet and the World Wide Web, which have changed how that people socialize and or perform their companies.

Firms market their hospitality tourism and services products throughout the world wide web. This stage has linked the world. It’s turned into a global village. Folks are able to interact in various places in real-time. They could share their perspectives and opinions without needing to meet. Technology has caused the growth of unique platforms or forms which empower interconnections.

The changes comprise providing a path by which ideas could be converted into marketable inventions to be transmitted afterward to a broader marketplace at reduced prices of obtaining these markets and hunting for buyers. It enables easier access to this marketplace offering fresh products. It’s altered the way data is shared between both organizations and individuals. The advantages of technologies in the tourism and hospitality sector are huge.

What are the disadvantages of technology in tourism?

Faqs about the disadvantages of technology in tourism:, 1. how does technology contribute to overcrowding in popular tourist destinations, 2. can technology hinder cultural immersion while traveling, 3. are there privacy concerns associated with technology in tourism, 4. how does technology impact the authenticity of travel experiences, 5. does the use of technology in tourism result in job losses, 6. are there environmental concerns related to technology in tourism, 7. can technology create a sense of dependency and addiction while traveling, 8. how does technology affect the local economy of a tourist destination, 9. does technology contribute to a lack of sustainability in tourism, 10. are there security risks associated with technology in tourism, 11. does technology hinder the discovery of off-the-beaten-path destinations, 12. can technology contribute to a loss of cultural heritage, what are the disadvantages of technology in tourism.

In today’s digital age, technology plays a crucial role in the tourism industry. From online booking platforms to mobile apps and virtual reality experiences, technology has revolutionized the way we explore and engage with the world. However, like any other tool, technology also comes with its fair share of disadvantages, particularly in the context of tourism. While technology has undoubtedly made many aspects of travel more convenient and accessible, it is essential to consider the potential drawbacks it presents.

One significant disadvantage of technology in tourism is the loss of the personal touch. In a digital landscape dominated by automated processes and interactions, the human element can often be diminished or even eliminated altogether. For instance, when booking a trip online, travelers may miss out on the personalized recommendations and insights that a knowledgeable travel agent can provide. Additionally, the increasing reliance on technology for customer service can result in frustrating experiences, as automated chatbots may not always understand or address specific queries effectively.

Furthermore, technology can contribute to an over-reliance on devices while traveling, leading to a detachment from the present moment and the immersive experiences that travel offers. The constant desire to capture and share every moment on social media platforms can detract from truly connecting with a travel destination. Instead of fully engaging with the local culture, natural beauty, or historical significance of a place, tourists may find themselves more focused on capturing the perfect photo or video to share online.

The ease of access and convenience provided by technology has significantly increased the number of tourists visiting popular destinations. This overcrowding can lead to various negative impacts, such as environmental degradation, strain on local infrastructure, and a decline in the quality of the tourist experience.

Yes, technology can hinder cultural immersion by creating a reliance on virtual tours and digital experiences instead of real-life interactions. This can prevent travelers from truly understanding and appreciating the local customs, traditions, and way of life.

Yes, technology in tourism often involves the collection and sharing of personal data, raising concerns about privacy and data security. Travelers may unknowingly disclose sensitive information, and there is always a risk of data breaches or misuse of personal data.

Technology can sometimes create a sense of artificiality in travel experiences. Virtual reality tours or heavily edited images may present a distorted version of reality, leading to unrealistic expectations and a lack of genuine connection with the destination.

The increasing automation and digitization of tourism processes can lead to job displacement, particularly in areas such as hotel reservations, ticketing, and customer service. This can have negative socio-economic impacts on local communities that heavily rely on tourism for employment.

Yes, technology in tourism can contribute to environmental issues. Increased air travel, energy consumption in hotels, and the disposal of electronic waste are some examples of how technology can negatively impact the environment.

Yes, the constant use of technology, such as smartphones and social media, can create a sense of dependency and addiction among travelers. This can lead to a reduced ability to disconnect, relax, and fully enjoy the travel experience.

While technology can bring economic benefits to a tourist destination, such as increased bookings and online transactions, it can also lead to a leakage of revenue. Online platforms often charge significant commissions, which may result in local businesses receiving a smaller share of the tourism income.

Technology can contribute to a lack of sustainability in tourism through factors such as increased carbon emissions from air travel and excessive resource consumption in hotels. Additionally, the production and disposal of electronic devices contribute to electronic waste, posing environmental challenges.

Yes, technology in tourism can pose security risks such as online fraud, identity theft, and hacking. Travelers must be cautious when engaging with online platforms and sharing personal information.

While technology has made it easier to find and book popular tourist destinations, it can sometimes make it challenging to discover lesser-known, off-the-beaten-path locations. This can lead to an over-concentration of tourists in specific areas, further exacerbating overcrowding issues.

The digitization and virtualization of cultural artifacts and historical sites through technology can sometimes contribute to a loss of cultural heritage. While digital platforms can provide wider access to cultural resources, they may not fully capture the essence and significance of the original artifacts or locations.

As technology continues to advance, it is important to recognize and address the disadvantages it brings to the tourism industry. By finding a balance between the convenience and efficiency technology provides and the need for authentic, immersive travel experiences, we can ensure a sustainable and enriching future for both travelers and destinations alike.

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The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is  physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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The impact of technology on the hospitality industry

source: Google Images

Technology has had a significant impact on the hospitality industry, from improving efficiency and convenience for guests to transforming the way hotels operate. This article will explore the impact of technology on the hospitality industry, including emerging trends and innovations that are shaping the industry’s future.

Technology has revolutionized the hospitality industry, providing hotels and other businesses with tools and platforms to enhance the guest experience and streamline their operations. From mobile check-ins to in-room automation, technology has become an essential part of the industry, providing convenience, efficiency, and personalized service for guests.

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Mobile check-in and check-out.

One of the most significant technological advancements in the hospitality industry is mobile check-in and check-out. This allows guests to skip the front desk and check-in to their room using their smartphone.

Guests can also use their mobile device to check-out, view their bill, and even control room settings, such as lighting and temperature. This technology not only provides convenience for guests but also reduces the workload for hotel staff.

Keyless Entry

Another technology that has transformed the hospitality industry is keyless entry . This allows guests to use their smartphone to unlock their hotel room, eliminating the need for physical keys. This not only provides convenience for guests but also improves security, as lost or stolen keys are no longer a concern.

In-room Automation

In-room automation is another technology that is becoming increasingly popular in the hospitality industry. This technology allows guests to control room settings, such as lighting and temperature, using their smartphone or voice commands. In addition, hotels can use in-room automation to personalize the guest experience, for example, by automatically adjusting room settings based on the guest’s preferences.

Guest Data Analysis

Technology has also provided hotels with the tools to analyze guest data and provide personalized service. By collecting and analyzing data such as guest preferences, past stays, and spending habits, hotels can tailor their services to the specific needs of each guest. This can include personalized recommendations for restaurants, attractions, and activities, as well as customized room settings and amenities.

Chatbots and AI

Chatbots and artificial intelligence are also transforming the way hotels interact with guests. Chatbots can provide instant customer service and support, answering guest questions and providing recommendations.

Artificial intelligence can be used to analyze guest data and provide personalized recommendations, such as room settings and amenities. In addition, AI can be used to automate hotel operations, such as housekeeping and maintenance.

Virtual Reality

Virtual reality is another technology that is becoming increasingly prevalent in the hospitality industry. Hotels can use virtual reality to provide guests with immersive experiences, such as virtual tours of the property or destinations. In addition, virtual reality can be used to provide entertainment and educational experiences, such as virtual museums and art galleries.

Social Media

Social media has also had a significant impact on the hospitality industry , providing hotels with a platform to connect with guests and promote their brands. Hotels can use social media to engage guests, provide updates and information, and showcase their amenities and services. In addition, social media can be used to gather feedback and improve the guest experience.

Online Booking and Payment

Online booking and payment platforms have also transformed the way guests book and pay for their stays. Guests can now book their stays online, choose their room preferences, and make payment using a variety of payment options. This not only provides convenience for guests but also reduces the workload for hotel staff.

IoT and Smart Rooms

The Internet of Things (IoT) and smart rooms are also transforming the hospitality industry. IoT technology allows devices to connect and communicate with each other, providing hotels with the ability to automate and control various aspects of the guest experience.

For example, hotels can use IoT sensors to monitor guest room occupancy, temperature, and lighting, allowing them to adjust room settings to provide a more comfortable experience. Bright rooms take this technology a step further, providing guests with a fully connected experience that allows them to control all aspects of their room using a smartphone or voice commands.

Sustainability

Technology has also had an impact on the hospitality industry’s sustainability efforts. Hotels can use technology to reduce their environmental footprint, for example, by implementing energy-efficient lighting and heating systems or using water-saving fixtures. In addition, hotels can use technology to monitor and track their sustainability efforts, providing guests with transparency and accountability.

Technology has had a significant impact on the hospitality industry, providing hotels and other businesses with tools and platforms to enhance the guest experience and streamline their operations. From mobile check-in and keyless entry to guest data analysis and virtual reality, technology has transformed the way hotels operate and interact with guests.

As the industry continues to evolve, emerging trends and innovations, such as IoT and sustainability, will play an increasingly important role in shaping its future. By embracing these technologies, hotels and other businesses in the hospitality industry can provide memorable and enjoyable experiences for their guests while also improving their sustainability efforts and reducing their environmental footprint.

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Strategic Use of Information Technologies in Tourism: A Review and Critique

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• Matthias Fuchs 5 &
• Marianna Sigala 6  

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The impact of information and communication technologies (ICTs) on firms’ strategic development and value creation has been a topic of academic debate for decades. Tourism is no exception. This chapter provides a synthesis of the literature on the strategic decision to adopt and use ICTs as well as an analysis of their impact on the value creation of tourism firms. We reflect on theoretical frameworks and analytical concepts developed and validated by tourism scholars, their implications for ICT use, and the factors affecting the realization of ICT-enhanced business value. Problems of measurement, analysis, and organizational adjustments appear as major factors behind volatile ICT productivity in tourism, known as the ICT Productivity Paradox. To ensure the realization of ICT-enhanced business value, various adjustment strategies, including the development of firms’ capabilities, cultures, and organizational structures, are addressed. The discussion section critically assesses the reviewed literature on the strategic use of ICTs in tourism. Finally, the conclusion deduces research needs and sketches an agenda for future research.

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Fuchs, M., Sigala, M. (2021). Strategic Use of Information Technologies in Tourism: A Review and Critique. In: Xiang, Z., Fuchs, M., Gretzel, U., Höpken, W. (eds) Handbook of e-Tourism. Springer, Cham. https://doi.org/10.1007/978-3-030-05324-6_67-1

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Technology: Disruptive Innovation in the Tourism Industry

Digital transformation is reshaping jobs and customer relations in the tourism industry. Technologies such as machine learning, which can predict how many hotel reservations will be canceled, and Wi-Fi analytics, which monitors user behavior, are revolutionizing our understanding of business management. In addition, apps and bots have emerged as new tools for increasing customer loyalty. In this mobile environment, disruptive companies like Airbnb or Uber have created communities of users where customers double as owners and managers. New companies must adopt a resilient attitude and expand their scope, cultivating connections and empowering users in order to create exponential growth.

Not all innovation is technological. Although digital transformation has reached the tourism industry in earnest and is gradually changing jobs and customer relations, it is important to understand that technology is not an end, but a means, and that tourism is an individual experience, often shared on- and offline.

Not all innovations are specifically sought; sometimes they arise in response to a problem or need. Sixty years ago, the manager of a busy hotel realized it was time for breakfast and none of the staff responsible for serving it had come to work. He decided to place a long table in the hall and lay out everything the guests needed to serve themselves; hence, the breakfast buffet was born. It may not have been a technological solution, but it was certainly an innovation.

In short, to be innovative, an action must mark a milestone, such as:

• Opening a new market.
• Creating a new product.
• Modifying an existing product.
• Improving a production method.
• Finding a new source of supply.
• Creating a new form of organization.

Technology: Transforming Jobs and Relations

We live in a time of transformation, a time of change in which many questions that once had simple answers have become difficult, even as other questions are arising for the first time. One question that is no longer simple is that of occupation. Myriad new positions have emerged in response to new jobs and ways of working: CMO, CEO, COO, CFO, etc. Soon we will have space debris managers, virtual habitat designers, biohackers, and even designers of human parts for 3D printing.

At a time when robotics and artificial intelligence are posing new challenges, it is also worth asking how many of the jobs today considered normal and necessary are likely to be automated or replaced by new technologies .

Not all innovations are specifically sought; sometimes they arise in response to a problem or need.

In the world of tourism, one issue that has been simplified is travelling itself. The sharing economy has given rise to platforms such as BlaBlaCar, which has undergone exponential growth in services, profits, and number of users. In this context, we need to consider how humans are evolving in the context of a society deeply impacted by technology and, at the same time, how we, the business world, and, consequently, markets all work.

One key to understanding this whole change is that technology permeates the reasoning and experiential part of the brain much more powerfully and markedly in the new generations. In the current era of digital evolution, generations understand their environment and the tourism experience differently: some people live in the moment, interacting with all five senses at an individual level, others share it with their close friends and family, and still others do all that and also share it on social media in real time.

This reality is increasingly present. Our thinking may be linear, but technology and the incorporation of these habits by younger generations are exponential. In a linear approach, if you take one step, you advance one yard; if you take two, you advance two yards; and so on successively until you have taken fifty steps and advanced fifty yards. Technology, on the other hand, presents us with a different reality: like Moore’s Law, it works exponentially. Thus, if you take one step, you advance one yard; if you take two steps, you advance two yards; but if you take a third step, you will travel twice the distance as in the previous step, that is, four yards. And so it goes: four steps, eight yards, etc. This exponential progress is clearly reflected in the time it has taken users to adopt different technologies (see Chart 1).

Machine Learning

Machine learning offers a new way of understanding business management. The huge data and information repository we have today, i.e., big data, allows us to intelligently predict what will happen tomorrow and to access that information. In other words, in addition to information based on the forecasts of our hotel or business’s computer system, we can access reliable information on what will happen in the future, the number of reservations that will be cancelled, the number of no shows we can expect, and other variables that will help us adequately meet our human resource needs, streamline management, and deliver a better service. It is a technology -based work methodology that uses past information to predict future events.

For the tourism industry, big data can be very interesting from a macro perspective, but it is less so at the micro level. While the macro approach can provide massive amounts of information with regard to aspects such as tourist flows, ultimately, we are talking about individual companies, which need functional information to help them make business decisions. Machine learning takes the massive information available today, polishes it, and uses it to predict the future and meet the company’s objectives. In the case of hotels, data are extracted from three sources: the property management system or PMS (hotel management software including a record of the last years of business), big data, and manual inputs, i.e., the data the receptionist, manager, or sales associate directly includes as key.

Machine learning takes the massive information available today, polishes it, and uses it to predict the future and meet the company’s objectives.

Wi-Fi Analytics and Geolocation Technology

Another factor that will undoubtedly have one of the largest impacts on the tourism experience is the rise of the Internet of Things and the digitalization of places.

The driving force behind this reality is currently smartphones. We have reached a point where, before leaving home, we check to make sure we have three things: our wallet, our house keys, and our phone. This shift in habits has opened up an interesting field of work in technology and innovation , giving rise to solutions such as positioning beacons and beacons that can be used to identify mobile phones and, thus, their owners with a certain ease. The next step is to use mobile apps to contact users at given points, thereby generating an interaction with a place, hotel, leisure area, city, museum, etc.

Thus, it is possible to determine how much time a customer will have to wait to be served or how many have left because of the wait. This information can then be used to reorganize and streamline management, increasing the return and improving the service. It will likewise be possible to monitor production processes in order to organize and distribute tasks more efficiently based on need. For instance, it will be possible to monitor a hotel cleaning process, so that it can be analyzed with the same precision as a factory production line, determining the actual cleaning times, flows, paths, and waste of the process, as you would with the Lean Management method.

Apps vs. Bots

In the current mobile environment, virtually all businesses seek to have their own app. Consequently, users often download apps only to delete them one or two days later. In light of this reality, it is important to consider why users should download a hotel’s app if they are only going to stay for a few nights. To make it worth their while, hotels should focus on value, seeking additional services that encourage guests to download their app and use it with some frequency, so as to establish a bond with the guest and generate a new way to increase guest loyalty.

However, in today’s fast-paced world, game changers can happen overnight, as when Facebook opened its Messenger platform to chatbots. Because such a large percentage of people have the Facebook app on their phone, the social network’s decision prompted many companies to develop intelligent information systems to deliver information to customers through these bots, allowing them to cover some of the services provided by many standalone apps developed especially for customers with considerably more agility. These chatbots, which imitate human behavior , are also more likely to be used because they work with the Facebook app, which customers already check daily.

Of course, whether to use a system based on an app or a bot depends on the type of business, the service being provided, and the type of customer a company is seeking to serve. Above all, it depends on the type of people who will be overseeing the activity of these types of applications. This, in turn, gives rise to new professions, new tasks and activities that will give rise to new jobs (see Chart 2).

As a result of these realities, not only are products changing and improving, but markets and organizations are changing too. The mobile start-up generation is seeing exponential growth in users and revenue. The next step is the Internet of Things, which will surely usher in a disruptive change in how companies grow and develop. The Pentagrowth Report, by Ideas for Change, identified five laws of growth for these new companies:

• Connect: with people, situations, and things.
• Collect: the smaller the effort an organization has to make to build its available inventory, the bigger its growth potential.
• Empower: integrate users into the company’s business processes.
• Enable: develop tools that others can use in the company’s environment to create overall value.
• Share: to create a community loyal to the resource created by the company.

The next step is the Internet of Things, which will surely usher in a disruptive change in how companies grow and develop.

Companies grow in relation to these laws based on what might be called the generative principles of exponential growth : Reach, Interaction, and Resilience.

The Reach principle correlates the Share and Connect levers with user growth rates. The organization’s potential reach depends on the number of people, situations, and things connected through the networks on which it operates and the number of value units that users can freely share with others.

The Interaction principle is the result of the correlation between the Collect and Empower levers, i.e., the number of value units included in the inventory and the number of roles that users can play.

Finally, an organization’s Resilience depends on the number of business partners that have developed their commercial offerings and lifestyles based on its standards and market and the number of people who feel a sense of shared ownership of its open resources.

When we analyze these levers and principles in relation to some of the most disruptive companies in the tourism industry, such as Airbnb or Uber, we find that they owe their initial edge to their community, their exponential growth in terms of connected users. These users establish different roles by incorporating their own assets, such as their apartment or car, into the company’s centralized and intermediated offering. Thus, in addition to being users, they become sales associates, service managers, and influencers, all based on an enormous network undergoing exponential growth driven by user feedback.

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10 Key Technology Trends Emerging in the Travel & Tourism Industry in 2022

We all know that the travel and tourism industry is constantly growing, changing, and improving.

Whether you are a travel agent, tour operator, or traveller, the emergence of technology is an important and interesting development to consider.

The number of different uses and types of technology for our sector is vast, but luckily we have you covered!

What types of technology are being used in the travel and tourism industry? Read our newest blog to discover 10 key technology trends.

The state of the industry 

After reaching an all-time low during the height of the pandemic, the state of the travel and tourism industry has now largely recovered. After the rollout of vaccines last year and many Covid-19 restrictions lifted or lessened, there was a sizable spike in travel demand. In fact, over the next six months, data has shown that over 80% of Americans are expected to plan vacations to various tourism hubs, which will continue to contribute to the recovery of the travel industry.

While issues such as taxation, travel marketing, infrastructure issues, and security and cross-border regulations remain a challenge for the tourism and travel industry, the recovery of the global economy and the implementation of new technology will only help to improve the industry further.

The impact of technology on the travel and tourism industry

Technology has largely impacted the travel and tourism industry. Digitisation has allowed for increased simplicity of planning, booking, and organising travel and tourism for both customers and companies. 

Technology has made it easier to plan the details of trips, such as arranging airfare, hotels, and activities. By investing a few hours into doing your own online research or using the expert advice from digitised travel and tourism platforms, the Internet of Things has made it so that all you need for planning the vacation of a lifetime is access to a computer or smartphone. 

Young woman tourist photographing famous retro yellow tram on the street in Lisbon city, Portugal

What are the reasons why we need the new technologies in the tourism industry?

Technology plays a critical role within the tourism industry by assisting businesses with everyday tasks and helping to improve customer satisfaction. The importance of the travel and tourism industry maintaining the most recent technological trends and advancements can be seen through:

• Improving communication between guests and staff to create an easy, open, and friendly environment that will keep businesses and customers satisfied;
• Convenience. Both staff and customers benefit from the seamless and contactless services that can be provided through technology. Whether it’s scanning a QR code to order room service at a hotel or checking in online for a flight; the technology streamlines customer’s needs and the services that businesses can then provide to them;
• Enabling staff to provide superior services through digitising guest preferences such as favourite restaurants during their last stay or the number of pillows they prefer so when guests stay at the same hotel, staff can accommodate them appropriately;
• Technology is expected. Whether you are a hotel, airline, or travel agency, customers expect reliable technology such as wifi, online booking and customer service, and up-to-date digital knowledge on changing Covid-19 protocols. Having a business that stays up to date with the latest technology is a must in today’s society

How are technology trends changing the travel and tourism industry?

The first key technology trend is seen through “travel technology.” Technology has completely changed the way travel functions, shaping our tourism and travel plans to have easier, more fun, and less stressful planning and experiential methods. This large shift in the travel industry is what we now refer to as travel technology.

According to Hotelmize , “travel technology means using tech to plan trips. It helps travel agencies book trips for their customers, together with airline tickets, hotel accommodation, car rentals, and many other travel-related activities.” 

Technology has made the automation of travel a possibility, meaning that planning travel is now much faster and more exciting for travellers and travel agencies. It is now possible to plan a trip in minutes, along with booking accommodations, tickets, flights, and much more.

Travel technology automates “bookings, payments, and back-office tasks for travel agencies and enables consumers to make their online bookings without a travel agent.”

Advantages and disadvantages of technology trends in the tourism industry

The second, third, and fourth technology trends that are emerging can be seen through the potential of technology that has been seen in many major areas of the economy (including the tourism and hospitality industry). The three emerging advantage technology trends in this sector can be identified as:

1: Larger reach to customers

Technology has allowed for more thorough and researched marketing and advertising. Travel and tourism companies are able to use different online methods to provide detailed travel information to their customers. In addition, customers can easily search online for the travel plans and companies that fit their needs best

2: Affordability

Digitisation streamlines the processes needed for organising and enacting travel plans. Companies that offer deals on online airfare, hotel booking, and excursions through their platforms are able to attract and retain customers. On the other side, travellers can research and consider different price points and offers to best fit their tourism needs.

3: Globalization

Through technology, people from any part of the world, have the capability to connect with each other. Travellers and businesses have the ability to communicate, plan, accommodate, and connect travellers across the globe 

Meanwhile, there are also some disadvantages that come with technology trends in the tourism industry. For example:

1: Unemployment

The amount of necessary jobs has decreased within the tourism industry as technology improves and expands. Marketing and advertising research can be done largely online and by fewer employees due to the ease of the internet. In addition, the automation of booking, hospitality, and travel services has caused managers, waiters, and other staff to lose their jobs to the costs that are cut by using advanced technology instead

2: Privacy Concerns

One of the downsides of technology is the ability for hackers to find and steal personal or company information that is online or within technological systems. Although this can pose a real danger, there are luckily virus prevention software, password protection options, and encryption methods to better protect and prevent such malware attacks.

Smart wireless column with a young woman controlling home devices with a voice commands on the background at home

Top most emerging technology trends in the Travel and Tourism Industry

The last six key emerging technology trends are seen in the newest, most coveted, and most useful technologies in the travel and tourism industry, which include voice search and voice control, contactless payment, virtual and augmented reality, the Internet of Things, and facial recognition technology. 

• Voice Search and Voice Control

Voice search takes away the need for typing and also helps tourists obtain information about their travel plans or their travel accommodations without actually speaking to staff. Voice control is increasingly being used for contactless services. For example, hotels may install voice control features to control customised lighting and heating settings within rooms.

• Contactless Payments

This digital form of payment transaction allows customers to pay without any cash or in-person interactions. Contactless payment includes online banking, Debit or Credit cards, Smartcards, and more.

• Virtual and Augmented Reality

BBN Times defines v irtual reality as “a simulation technology that gives us a real-life view and experience with the help of visuals, sound, and special effects” and augmented reality as “a stimulus technology that creates an enhanced version of the real-world scenery and elements such as visuals, sounds, and sensory stimuli.” Both virtual and augmented reality are beginning to be used in the travel sector by allowing customers to experience destinations, hotels, and restaurants without actually travelling. Using VR headsets or smartphones for augmented reality, tourists can use these technologies to decide where they want to book their trips based on what they experience.

• Internet of Things

This is the network between connected technologies such as chips, software, and sensors that are powered by the internet. The Internet of Things can be used in the travel industry to control appliances such as those in hotel rooms or aeroplanes from one panel, sort and keep track of traveller’s luggage, and even gather customer data to create personalised advertising content.

• Facial Recognition Technology

With this technology, your face becomes the key to your travel experiences. The software can scan, store, and recognise your face to be used for identification purposes that allow you to enter a hotel room by simply presenting your face to the door instead of scanning a key, completing a payment without a card just by showing your face to the phone or kiosk, and much much more.

In recent years, robots have been used within the travel and tourism industry. Robots such as chatbots on websites that allow customers to interact with programming software that completes tasks and answers questions are used by many travel companies. In addition, physical robots that can carry luggage or transport guests are also becoming more common

How Nezasa is shaping the Future  

Nezasa is shaping the future of the travel and tourism industry by offering a travel booking solution that empowers travel brands globally to combine all planning and booking-related actions into one seamless end-to-end experience. Using cutting-edge technology, Nezasa is a faster, easier, state-of-the-art solution to help travel companies have the resources to organise the perfect vacation for their customers.

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Impact of AI and robotics in the tourism sector: a critical insight

Journal of Tourism Futures

ISSN : 2055-5911

Article publication date: 24 April 2020

Issue publication date: 1 April 2022

The purpose of the present article is to highlight the role of Artificial Intelligence (AI) and Robotics in the tourism industry. The various technologies being integrated to improve the service and customer experience in tourism. The expected changes and challenges in tourism in the future are focused in this paper.

Design/methodology/approach

A systematic study on the emerging technologies of AI and Robotics applied in the tourism sector is presented in the form of a viewpoint.

AI certainly enhances tourism experiential services however cannot surpass the human touch which is an essential determinant of experiential tourism. AI acts as an effective complementary dimension to the future of tourism. With the emergence of artificial travel intelligence, it is simpler to make travel arrangements. AI offers travel services that are automated, customized and insightful. AI allows travelers to learn about their behaviors, interests to inclinations and provide a personalized experience. Gone are the days to consult a travel agent, meet him physically and indulge in an endless chain of troubling phone calls to inquire about travel arrangements.

Practical implications

Tourism marketing to see a positive and improved change that will enhance the tourists’ overall experience due to the application of AI and Robotics. New emerging technologies like chatbots, virtual reality, language translators, etc. can be effectively applied in Travel, Tourism & Hospitality industry.

Originality/value

The present viewpoint discusses the application and role of AI and Robotics with the help of relevant industry examples and theory. The present paper highlights the different technologies being used and will be used in the future.

• Human-Robot interaction
• Technologies
• Machine learning
• Artificial intelligence

Samala, N. , Katkam, B.S. , Bellamkonda, R.S. and Rodriguez, R.V. (2022), "Impact of AI and robotics in the tourism sector: a critical insight", Journal of Tourism Futures , Vol. 8 No. 1, pp. 73-87. https://doi.org/10.1108/JTF-07-2019-0065

Emerald Publishing Limited

Copyright © 2020, Nagaraj Samala, Bharath Shashanka Katkam, Raja Shekhar Bellamkonda and Raul Villamarin Rodriguez.

Published in Journal of Tourism Futures . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

In the technology-driven times, Artificial Intelligence technology is one of the most innovative inventions that have revolutionized various industries all around the globe. Artificial Intelligence (AI) can be referred to as the development of computer systems that can perform tasks and activities which require human intelligence ( Russell and Norvig, 2016 , p. 4). Artificial Intelligence first made its appearance during the year 1956 in John McCarthy’s Dartmouth Summer Research Project. Over the years, many successes of AI have followed in the form of heuristic searches, character recognition, facial recognition systems, the processing of natural language, and the concept of mobile robotics. By the year 1980s, considerable conceptual progress has been made in the technology-driven field, and its application has increased significantly ( Issa et al. , 2016 ). During the 1990s, the technological setting made significant progress, especially in the field of Artificial Intelligence. The growth was mainly because advanced and new kinds of technologies allowed engineers to use large volumes of data, build robots in an efficient manner, and work on improved computing powers. Since then, the AI concept has come a long way and transformed the power of technology. In the 21 st century, Artificial Intelligence has reached a climax, and it has the potential to have a profound impact on individuals, organizations, and industries to a significant extent.

In the digitalized era, Artificial Intelligence technology is being used in various industries and not just the Information Technology industry ( Nagaraj, 2019 , 2020 ). For example, one can come in contact with AI in self-driving vehicles, robotic nurses, navigation systems, chatbots, human versus computer games and various other fields ( Russell and Norvig, 2016 , p. 5).

According to a prediction by McCormick et al. , due to the rise in the use of Artificial Intelligence by businesses across different industries, they will be able to steal almost $1.2 trillion in a single year from their less-informed rivals by 2020 ( McCormick et al. , 2016 ). Some of the major industries where Artificial Intelligence has made its presence are the manufacturing industry, automotive industry, banking, and financial services, healthcare and life sciences, insurance, telecommunications, energy, travel tourism and hospitality and media and entertainment. Rapidly, AI’s footprint is expanding in a greater number of industries all across the globe with each passing day ( sites.tcs.com, 2019 , p. 6). The popularity and application of AI technology are increasing in the industrial setting as it increases the level of innovation and minimizes the processes and activities that are carried out by human factors. In many industries, AI is being used in various functions of organizations such as sales and marketing, customer service, and finance ( sites.tcs.com, 2019 , p. 6).

In the 21st century, the tourism industry has seen incredible growth and prosperity at a global level. The international tourist arrivals have increased from 528 million in the year 2005 to 1.19 billion in the year 2015 ( www.statista.com , 2019). Today several people are willing to spend money on tourism and traveling. This spending has boosted the demand and overall performance of the industry. Thanks to the growth of the travel and tourism industry, it is regarded to be one of the world’s largest sectors that have the power to shape the economic health of a nation. Technology has entered the industrial setting and boosted its performance and quality of service delivery ( www.statista.com , 2019). AI has invaded the tourism and hospitality setting, and it is being used to gain a competitive advantage in the dynamic market. The graph presented below shows that various kinds of AI strategies are being used in different industries including the tourism and hospitality industry.

Technology has gradually made way for itself in the tourism industry and reduced the processes that are carried out manually. As the tourism industry has always been an early technology adopter, it has welcomed AI with open arms (World AI Show, 2019). The Artificial Intelligence concept has entered the business context as it can enable marketers in the competitive industrial setting to automate the processes and streamline the business activities. Initially, it was used to simplify the marketing processes, but in the present times, AI technology is leaving a mark on every tourism aspect such as welcoming the guests, serving them and listening to their needs (World AI Show, 2019). AI is being used in the tourism industry for various purposes such as improving the level of personalization, tailoring the recommendations of the customers and guaranteeing fast response times even when the staff members are not present. The presence of artificial intelligence has become so crucial in the industrial setting that it is being used to assist and communicate with the customers and thus strengthen the quality of engagement ( revfine.com, 2019 ).

The objective of this viewpoint is to capture how Artificial Intelligence technology has entered the tourism scene and brought about revolutionary changes in the industrial setting. This viewpoint attempts to give comprehensive knowledge about the various AI technologies being applied, its implications, challenges and future potential in the Travel, Tourism & Hospitality segment. In the technology-driven times, the topic can shed light on the power of Artificial Intelligence and the implications that it has on the industrial environment. How AI has redesigned, the traveling and tourism process has been critically presented here. A holistic assessment has been carried out to comprehend how Artificial Intelligence is converting the regular tourism industry into a smart industrial hub.

2. Scope of AI in tourism as an industry

Although the Artificial Intelligence (AI) is a contemporary issue, there are few interesting findings that trigger the usage of AI in the Travel, Tourism & Hospitality Industry. There were few studies conducted in the recent past, on the usage of AI in Travel, Tourism & Hospitality Industry by companies like Tata Consultancy Services, Google Travel, Trip Advisor, etc. ( Viglia et al. , 2014 ). These studies revealed some of the important findings that are advantageous to the Travel & Tourism companies. A survey done by Tata Consultancy Services (TCS) founded that 85 per cent of the travel & hospitality service providers use Artificial Intelligence in their business ( Anurag, 2018 ). Studies report that this may be because of the rapid rise in digital travel sales, which are expected to cross $800 billion by the year 2020 ( Chawla, 2019 ). Google Travel & Trip Advisor founded that 74 per cent of the customers plan their tourism trips using the Internet, in which more than 45 per cent of customers plan using smartphones ( Peranzo, 2019 ). Other surveys indicate that 85 per cent of customers decide their travel activities, after reaching their destination ( thinkwithgoogle.com, 2016 ). 36 per cent of customers prefer the Interactive booking process & 80 per cent of them choose self-service technologies over traditional services ( Peranzo, 2019 ). 90 per cent of the customers expect relevant information about the trip while they travel to the destination spot ( thinkwithgoogle.com, 2016 ).

Taken together, these results would seem to suggest the customers’ tendency towards internet & self-service technologies. These findings would tempt the marketers to incorporate Artificial Intelligence in the form of interactive & self-service technologies to deliver enhanced customer experience. The finding of these surveys not only suggests the customers’ tendency towards the technology but also infer the aspect of “Timeliness”. The customers are so particular about the timeliness of the services, which they receive ( Kim et al. , 2014 ). Majority of the customers are not ready to accept the services before the travel, rather they expect these services at the time of their travel. Findings also reveal that the majority of the customers prefer self-service technologies over traditional services. These self-service technologies are largely possible, by the usage of Artificial Intelligence ( Ivanov and Webster, 2017 ; Ivanov et al. , 2017 ).

Besides, these factors, there are several other factors that influence the travel, tourism & hospitality industry. Important factors that influence the selection of the Tourism, Travel & Hospitality services include Natural Resources, General Infrastructure facilities, Tourist Infrastructure, Destination tourism infrastructure ( Beerli and Martin, 2004 ). Natural Resources include scenic beauty, lakes, mountains, deserts, variety & uniqueness of flora & fauna, weather conditions (temperature of the region, rainfall, humidity, etc.). General Infrastructure facilities include road, public & private transport. Tourist Infrastructure includes hotel & accommodation facilities, restaurants, bars, discotheques, clubs, theme parks, entertainment & sports activities, water parks, zoos, casinos, trekking, adventure activities, shopping malls, etc. Destination tourism infrastructure includes human resources, safety measures at that place ( Beerli and Martin, 2004 ; Kaushik et al. , 2010 ; Seyidov and Adomaitienė, 2016 ).

Artificial Intelligence can provide a wide range of information on all the key factors such as Natural Resources, General Infrastructure facilities, Tourist infrastructure facilities, Destination tourism infrastructure facilities, etc. AI technology can surpass human performance by offering a wide range of information on all the key factors within no time. Given these circumstances, the Artificial Intelligence may outperform human services. Artificial Intelligence easily addresses the requirements of the customers by providing timely information to customers on the key factors such as Natural Resources, General Infrastructure facilities, Tourist infrastructure facilities, Destination tourism infrastructure facilities, etc. This information can be in the form of interactive messages, self-service technologies, chatbots, audio tours, virtual tours, interactive booking process, facial recognition technologies, language translations, cross-selling & up-selling, competitive pricing, easy shopping, etc., which are discussed in the later sections in detail.

3. Artificial intelligence in tourism

There are several new technologies that evolved in the domain of Artificial Intelligence. These technologies were helpful in delivering a novel experience to the customers. These technologies include Facial Recognition technologies, Virtual Reality applications, Chatbots, Robots, Artificial Intelligence in Google Maps, Language Translators, Audio tours, Ease of Shopping, etc.

3.1 Facial recognition

Facial Recognition is an application of AI technology which is gaining greater importance and application across various industries for varied purposes. Facial Recognition is being adapted in the travel and tourism industry also at a large scale. For example, travelers have to undergo a repeated set of complex processes in the form of scrutinization of travel documents by various authorities like customs, immigration & airports. This complexity in the process consumes a lot of precious time, which further leads to a kind of frustration in the tourists ( Patel, 2018 ). To mitigate these kinds of disturbances, Facial Recognition technologies have come into play. This technology recognizes the face of the tourists, verifies it with the face in the documents & provides hassle-free check-ins. By using this technology, tourists can comfortably pass through the airport check-ins & all other station check-ins, without the document verifications by various authorities such as immigration, customs, etc. ( Chang and Yang, 2008 ). This technology is currently implemented by the ShoCard Organization for the airlines ( Saulat, 2018 ).

3.2 Virtual reality

Virtual Reality (VR) technology generally uses the VR headset to create a simulated environment. This simulated environment gives an experience of virtual reality. The customer using the VR technology experiences the environment to a great extent in a 3 D, digital world ( Guttentag, 2010 ). In recent days, this technology is used by the travel, tourism & hospitality companies. These companies demonstrate tourist spots & hotel locations by using 3 D videos. There is a major gap existing between customers & hoteliers. The customers at a far distance are typically unaware of the ambiance of the hotel, the quality of the rooms, etc. Hoteliers describe their hotel on the website; provide few images & videos that would not give a complete picture to the customers. Majority of the time, this kind of approach results in ambiguity to the customers. The customers, who are at a far distance, are unable to assess the ambiance & environment of the hotel, Quality of the hotel rooms, facilities in the hotel, etc. This problem is easily addressed by Virtual reality applications ( Guttentag, 2010 ; Yung and Khoo-Lattimore, 2019 ).

There are various Virtual reality applications used in the Tourism & Hotel Industry. Few of them are Virtual hotel tours, Virtual travel experiences, Virtual Booking Interface. Virtual hotel tours include the demonstration of the hotel environment, its facilities in the form of 3 D-videos. This makes the customers encounter a real-time experience about the facilities in the hotel ( Barnes, 2016 ). The customers would like to experience the travel & exploration of the tourist spots before they move to the tourist spots. This is done by searching relevant information on the Internet in the form of customer reviews etc. ( Kim and Hardin, 2010 ). With the advent of Virtual reality technologies, there was a radical change in the availability of information to customers. This information makes the customers decide about their travel beforehand.

Virtual reality technologies are perfect gateways to travel & explore the unseen locations beforehand. Marketers provide the virtual journey to the customers into the hotels & tourism spots by partnering themselves with the hotels, tourism spots (i.e. museums, zoo parks & all other recreational spots) ( Jung et al. , 2016 ; Jung et al. , 2017 ). In the recent past, there are few hotels namely Marriott hotels, Atlantis Dubai Hotels who partner themselves with the marketers to provide the customers a virtual experience ( Van Kerrebroeck et al. , 2017 ). Virtual Booking Interface allows the customers real-time, simulated experience of walking through a plane & selecting the seat in the aircraft. Customers also select other services like cab service & make the payment. This easy demonstration of booking the flight tickets & other services in the form of 3 D-videos allow the customers to book by themselves, without approaching any consultancies. This helps the airlines to become the next generation retailers. Few companies such as Navitaire airlines use the services of virtual booking interface ( Wilde, 2017 ).

3.3 Chatbots

“Chatbot is a piece of software that conducts a conversation via auditory or textual methods.” There are mainly two types of Chatbots, namely Text message-based chatbots & Voice based chatbots. Text message-based chatbots provide message services to the queries of customers in the form of text messages. Voice-based chatbots provide message services to the queries of the customers in the form of voice-based messages ( Kumar et al. , 2018 ; Kumar et al. , 2016 ). Chatbots are typically computer software machines, which are pre-programmed to answer the simple questions raised by the customers ( Oh et al. , 2017 ). Chatbots has inbuilt programs that identify the keywords within the questions that trigger the number of responses in response to a single question. This key feature of sending out multiple responses to a single question immediately has been a notable aspect of chatbots (Makar and Tindall, 2014 ). Moreover, chatbots can be accessed 24/7 for all the 365 days in a year. These key features made chatbots to replace the employees. Some companies offer a unique experience using travel chatbots. The travelers can ride the car on their own without any guide & the travel chatbot installed in the car keeps on describing each place. This technology is named as an Audio tour, which is preferred by the travelers who wish to have privacy & travel alone with their families ( Boiano et al. , 2019 ).

Every hotel wants to have your guests a great experience. Inevitably, the guests need some or the other information about the hotel facilities. That’s where the Chatbots come into play. Personalization is a key component that marketers need to integrate with their services. Especially, Voice-based chatbots provide a high-profile personalized service to its customers. It serves the customers by offering a wide range of services like ordering food services, cab services, reading out the messages, scheduling the tasks & appointments, setting up alarms, room services, house-keeping services, informing the hotel facilities, etc. ( Gajdošík and Marciš, 2019 ). All in all, it acts as an assistant to the guest. Chatbots can even store the previous data of the guests by which they can suggest recommendations based on past purchases & activities. These voice-based chatbots are specially meant to improve hospitality, which further improves customer engagement & experience ( Nagaraj and Singh, 2018 , 2019 ). Delivering a great guest experience can be possible with chatbots for hospitality. Few hotels use the chatbots namely, Marriott hotels, Hyatt hotels, GRT hotels ( Gajdošík and Marciš, 2019 ; Seal, 2019).

Robots are another type of AI technology that is strengthening their presence in the tourism industry. These technology-driven assistants are using the Internet of Things (IoT) technology to do simple activities such as turning on the bedroom lights, turning off the television, handling systems to ensure the luggage is checked in automatically and receiving the guests in a hotel. Robot receptionists have become a trending thing in the tourism industry, which has a direct implication on the interaction and experience of the customers and guests. They are even taking care of the room service aspects so that the guests will not face any kind of issue while checking in to a new hotel room. In some of the reputed hotels of Marriott such as St. Regis, Westin and Aloft, the Alexa robot has been getting a lot of attention. Similarly, in airports, robots have started making their presence, and they are being used as guides and assistants. Some of the main advantages of robots in the tourism industry include enhanced customer experience, simplification of the work process, the ability of human factors to focus on other activities and improved efficiency of the tourism business.

The introduction of AI in the tourism industry is a reality of the current era. For instance, a reputed Japanese tourism and hospitality company Henn-a Hotel has introduced various kinds of robots in its workforce, including dinosaur robots. These robots are responsible for taking care of the front desk activities and receiving guests. Even though it might sound pretty weird, this is one of the examples that show the AI technology has come a long way in the tourism industry, and it has a long way to go as well. Thus, AI has introduced a silent revolution in the hospitality and tourism industry that cannot be ignored.

3.5 Google maps

Google Maps using GPS technology assisted the travelers by keeping them informed about the directions. Usage of Artificial Intelligence technology in Google Maps advanced the information by keeping the travelers informed about the accidents & traffic jams. Although Google Maps eases the travel journey by locating the right directions; travelers repeatedly encounter a common problem. The customers end up their travel by completely traveling in the wrong direction, which is realized after traveling a fair bit of distance ( Marouane et al. , 2014 ). This experience brings a lot of confusion & irritation to travelers. To overcome this hurdle, Google Maps came up with a new solution of incorporating the Visual Positioning System (VPS) to ease the travel journey. This newer version makes use of the Visual Positioning System (VPS), which differs itself, from the Global Positioning System (GPS). Visual Positioning System uses Artificial Intelligence technology that gives the live view of the real world & visual landmarks in front of travelers ( Anup et al. , 2017 ).

Google Maps with the help of Artificial Intelligence are now able to provide a live view of the real world. The new feature in Google Maps immediately starts the camera & starts scanning around, to find the visual landmarks like buildings, storefronts, etc. Travelers can switch on the Google Maps application to figure out their exact location & experience the live view of Google Maps. It would provide details about the shops, companies, hotels, malls, cinema theatres, restaurants, canteens, recreational zones, etc., thereby providing Location-based experiences ( Xiao et al. , 2018 ). By making use of the live view, the travelers travel in a proper direction, without any confusion ( Ruotsalainen et al. , 2011 ). In short, the newer version of Google Maps acts as a Local guide.

3.6 Language translators

There are few software applications that translate one language into others. These applications are helpful especially to travelers who visit foreign locations where they encounter unfamiliar languages. Traveling to foreign country can be tough, especially when there are language barriers. This problem can only be addressed if the travelers make use of any local guide, who can speak the local language. But the software applications can replace a local guide, by translating the unfamiliar language into the familiar languages. Few applications namely “Google Translate” would perform these tasks. These applications would even allow travelers to converse with the local people in their language. Google Translate provides the audio speech services, when the traveler clicks on the option, “Conversation mode”. This option allows the travelers to speak in their language, captures their voice message, translates this voice message into the target language (local language) & dictates the translation in the target language, thereby conveying the travelers’ message to the local people ( Azis et al. , 2011 ). This feature is especially useful for illiterate travelers, who cannot type their messages in Google Translate. The best part of this application is its ability to work in an offline mode. It can download languages into the application & work in an offline mode. Another feature, that is extremely useful is, “Camera Integration” option. Travelers prefer to understand the menus in the hotel, however, most of the time, they end up struggling with the menus, especially when they are at the places where they don’t have any foundation in the local language.

Travelers are often out of luck when it comes to reading the signboards & menus in the hotel, in a foreign location with an unfamiliar language. “Camera Integration” option can be used to translate the signboards & menus in the hotels of foreign locations. The application scans the signboards & menus, by the phone camera & translates the information present on the signboards & menus into the preferred language ( Ma et al. , 2000 ; Tatwany and Ouertani, 2017 ). This can help out the travelers who desire to read the menus in the hotel & understand the signboards. This application also can translate the words or messages present in the images captured by the camera ( Tatwany and Ouertani, 2017 ). This particular feature can be helpful for the travelers who wish to capture some information for the current moment & want to have it translated later. This application helps out travelers to interact with the local people. Travelers can move to the local canteens, shopping malls & all other recreational zones where they can interact with local people in their language, which provides a novel experience to the travelers of visiting an unfamiliar place ( Chavre and Ghotkar, 2016 ). In the marketers’ perspective, this technology improves the customer experience (traveler experience) & customer engagement (travelers’ engagement) ( Bayern, 2018 ).

3.7 Optimization services

By the usage of Artificial Intelligence in combination with the Maximum Likelihood algorithm, the service providers can provide the optimization of the services. The Maximum Likelihood Algorithm makes use of the past data & suggests the likelihood values of the prices ( Moraga-González and Wildenbeest, 2008 ). This algorithm would suggest the timings at which the prices rise & the timings at which the prices drop ( Kumar et al. , 2018 ; Song and Jiang, 2019 ). Therefore, it suggests the best timings to the customers in terms of price. This technology is used in many areas of tourism, such as booking a hotel/flight/Cab services. Using this technology the customers can decide whether to book a hotel/flight/Cab or wait till the price drops ( Ropero, 2011 ). Likewise, the Artificial Intelligence also helps in Cross-selling. Cross-selling is a sales strategy, where there is a sale of complementary products to the customers. For example, if a tourist is searching for a cab-service, the Artificial Intelligence would deliver a pool of suggestions, where there are suggestions about the cab services along with the hotel services, recreational zones nearby, etc. Few online companies such as “Hopper.com” optimize the travel experience by delivering information not only on the main service but also on the additional services that complement the main service ( Bulanov, 2019 ).

4. Artificial intelligence affecting travel, tourism & hospitality related factors

Adoption of Artificial Intelligence technologies in delivering Tourism-related services:

4.1 Facial recognition regulating travel facilities

Facial Recognition technologies provide hassle-free check-ins at airports & all other stations, without any document verifications by the immigration department, customs department, etc. This facial recognition software, not only provides the hassle-free check-ins but also ensures data safety & security to the tourists by the usage of blockchain technologies ( Chang and Yang, 2008 ; Patel, 2018 ). These technologies facilitate the travel process to the customers ( Saulat, 2018 ).

4.2 Virtual reality regulating travel, tourism & hospitality related factors

There is a major gap existing between the customers’ expectations of the service & actual service delivered by the service providers. The customers at a far distance are typically unaware of the tourist spots, the tourism experience of that destination. The customers would like to experience the travel & exploration of the tourist spots before they move to the tourist spots. This is done by searching relevant information on the Internet in the form of customer reviews etc. ( Kim and Hardin, 2010 ). They consider numerous factors about travel & tourism before they select the destination spot. The factors include Natural Resources like Scenic beauty, lakes, mountains, deserts, variety & uniqueness of flora & fauna, weather conditions (temperature of the region, rainfall, humidity, etc.). General Infrastructure facilities like Road, Public & private transport. Tourist Infrastructure includes Hotel & accommodation facilities, restaurants, bars, discotheques, clubs, theme parks, entertainment & sports activities, water parks, zoos, casinos, trekking, adventure activities, shopping malls, etc. Destination tourism infrastructure includes Human resources, safety measures at that place ( Beerli and Martin, 2004 ; Kaushik et al. , 2010 ; Seyidov and Adomaitienė, 2016 ).

With the advent of Virtual reality technologies, the customers can get first-hand information on most of these factors unlike reading the customer reviews. Virtual Reality (VR) technology creates a simulated environment that gives an experience of virtual reality. The customer experiences the environment to a great extent in 3 D, digital world. This technology addresses the major limitation that exists between the customer & service provider ( Guttentag, 2010 ; Yung and Khoo-Lattimore, 2019 ). Looking at the virtual reality videos, the customers can experience the scenic beauty of the Natural resources like Scenic beauty, lakes, mountains, deserts, variety & uniqueness of flora & fauna, weather conditions, General Infrastructure facilities like Road, Public & private transport, Tourist infrastructure like Hotel & accommodation facilities, restaurants, bars, discotheques, clubs, theme parks, entertainment & sports activities, water parks, zoos, casinos, trekking, adventure activities, shopping malls, Destination tourism infrastructure like Human resources, safety measures at that place etc. ( Jung et al. , 2016 ; Jung et al. , 2017 ). The customers can have comprehensive first-hand information, which allows them to determine the selection of the tourist destination spot. In the recent past, many companies have started to use Virtual reality technology in promoting destinations & hotel experiences. These technologies not only provide the information on all these factors, rather provide the first-hand customer experience, which motivates them to travel & experience the service ( Van Kerrebroeck et al. , 2017 ).

Thus, Virtual reality technologies help the tourists in accessing the Natural resources, General Infrastructure facilities, Tourist infrastructure facilities, Destination tourism infrastructure, which further influence their purchase behavior & decision-making process.

4.3 Chatbots regulating destination tourism infrastructure & tourist infrastructure facilities

Chatbots are typically computer software machines, which are pre-programmed to answer the simple questions raised by the customers ( Oh et al. , 2017 ). Customers after stepping into the hotel rooms are loaded with numerous questions ranging from the destination tourism infrastructure to tourist infrastructure. Customers ask numerous questions to the chatbots like facilities in the hotel, lunch & dinner timings, items served during lunch, dinner, gym facilities, services available in the hotel, safety measures, etc. ( Gajdošík and Marciš, 2019 ). Hence, Chatbots provide all the information related to Destination Infrastructure. In addition to that, chatbots also provide the information related to Tourist Infrastructure which includes nearby bars, discotheques, clubs, theme parks, entertainment & sports activities, water parks, zoos, casinos, trekking, adventure activities, shopping malls, etc. ( Boiano et al. , 2019 ; Gajdošík and Marciš, 2019 ). Thus, Chatbots provide all the information related to the Destination tourism infrastructure & Tourist Infrastructure.

4.4 Robots regulating hospitality related facilities

Recent surveys report that “Smart hospitality” is expected to grow over 25 per cent by 2021. Robots surprise the customers by providing unexpected services, keeping the customers continuously engaged, thereby, creating a novel & pleasant experience in the minds of the customers. Robots in the hotel assist the customers by directing them to their hotel rooms, carrying the luggage to their room, maintaining house-keeping services, serving the food & snacks ( Ivanov and Webster, 2019 ). Thus, Robots continuously enhance Customer engagement & Customer experience by providing novel services providing assistance in the hospitality facilities ( Sharma, 2016 ).

4.5 Google maps regulating general infrastructure & tourist infrastructure facilities

AI technology present in Google Maps uses GPS to provide information on the General Infrastructure facilities like Road, Public & private transport. AI technology used in vehicles these days uses GPS to provide information about road accidents, traffic jams & plans the shortest or alternate route that can escape the traffic jam. The newer version VPS would even provide the details about the nearby shops, companies, hotels, malls, cinema theatres, restaurants, canteens, recreational zones, etc., thereby providing the Location-based experiences ( Anup et al. , 2017 ; Xiao et al. , 2018 ). Thus, the AI technology used in the Google Maps provides the information on the Tourist Infrastructure which includes nearby Hotel & accommodation facilities, restaurants, bars, discotheques etc. ( Hallo et al. , 2012 ; Walder, 2013 ). Thus, Google Maps helps tourists in accessing General Infrastructure & Tourist Infrastructure facilities.

4.6 Language translators regulating destination tourism infrastructure

Language Translators would help out the Tourists to communicate with the local residents in their local language ( Azis et al. , 2011 ). These language translators would replace a local guide, by translating the unfamiliar language into the familiar languages to the tourists & conveying the tourist messages to the local residents. Thereby, it acts as a key element in Destination tourism infrastructure replacing human resources (local guides) ( Ma et al. , 2000 ; Tatwany and Ouertani, 2017 ). Thus, Language Translators provide few facilities to the tourists that are included under the Destination tourism infrastructure.

4.7 Optimization services regulating tourist infrastructure

Optimization services that include cross-selling the products, optimizing the prices using the Maximum Likelihood algorithm, addresses the General Infrastructure facilities like Road, Public & private transport, by providing the optimum prices of the flights, cab services, etc. ( Ropero, 2011 ). This optimization services provide numerous information on the optimum prices of the tourist infrastructure. It includes Hotel & accommodation facilities, restaurants, bars, discotheques, clubs, theme parks, entertainment & sports activities, water parks, zoos, casinos, trekking, adventure activities, shopping malls, etc. ( Kumar et al. , 2018 ; Song and Jiang, 2019 ). It provides the best available options to the customers by listing optimum prices. Thus, the Optimization Services provide few facilities that are included under tourist infrastructure.

5. Challenges for artificial intelligence in the tourism

Although the Artificial Intelligence is excelling rapidly, there is still a limitation of its usage by the illiterates ( Reddy, 2006 ). These limitations have to be and will be surpassed as on when demanded with the innovative solutions coupled with the emerging technologies and updating policies. No matter what all areas AI replaces human efforts giving rise to the debate of AI replacing Human Intelligence, it is still to answer and resolve many unanswered questions in various segments of business. Despite the fact that “Artificial Intelligence” is providing monetary benefits by replacing employees & non-monetary benefits by providing a unique experience to the customers, it still cannot surpass human intelligence, as it is still an emerging area ( Laurent et al. , 2015 ).

Another major challenge in the use of AI is the safety & security of data. This major concern in the application of AI in some of the crucial sectors like finance and military is a continuous challenge. For example, using the Blockchain technologies in Facial Recognition software ensures data safety & security; some countries are still reluctant to use the Facial recognition technology due to the privacy & data-security issues ( Bowyer, 2004 ). Chatbots, hotels store the past purchase history, travel history which challenges the data privacy & security issues. It is a challenge to privacy & data security ( Kannan and Bernoff, 2019 ).

A major problem with these software-controlled services is that a small malware attack can disrupt the software programs & the operations conducted by the service providers, which further leads to chaos. Though the AI technology is advanced & forward-looking, the small service providers cannot afford for these technologies, as it requires a huge investment ( Murphy et al. , 2017 ).

Although Chatbots & Robots are able to replace the human workforce, the customers still rely on the human workforce, when it comes to queries that involve complexity. The machines like chatbots are only limited to answer simple questions. These technologies use the keywords in the questions to provide the answers. When there is an emergency & complex issue to be sorted out, the customers still rely on the human workforce ( Lommatzsch, 2018 ).

6. Future applications of AI in travel & tourism

There are a lot of avenues and areas in the Travel & Tourism industry where there is a greater scope to apply AI for improved services. These may include unexpected and surprising ones. Artificial Intelligence technology can transform the entire hotel room into a desirable tourist spot. After entering the hotel room, the customers can select the option to transform their entire room into their favorite destination spot. By selecting such an option, the entire room is transformed into a virtual 3 D world that resembles their favorite destination spot. The customer can experience the 3 D view of their favorite destination spot inside the room ( Wei, 2019 ).

Although there is a rejection of Facial Recognition technologies due to the issues of data privacy & Security, future AI technologies may solve such issues by incorporating more robust blockchain technologies that assure data privacy & security ( Leong, 2019 ). In the future, we may see the Robots serving the hotel guests in directing them to their room, carrying their luggage, serving them food & snacks, housekeeping services, etc. This technology is currently used in a few hotels ( Yang et al. , 2020 ).

In the future, the Visual Positioning System (VPS) may take over the Global Positioning System (GPS). VPS is an advanced technology that provides the live view of the real world & visual landmarks in front of the travelers in the form of shops, companies, hotels, malls, cinema theatres, restaurants, canteens, recreational zones, etc., thereby providing the Location-based experiences. There might be many more untouched and unexpected points related to service and customer touchpoints, where AI may be applied in the future.

7. Conclusion

With every passing day, the presence of Artificial intelligence in the tourism scene is increasing. Due to the widening application of innovative technology, it is expected that the tourism industry will reach unimaginable heights in the future. As per a recent research study, the global travel technology market, which encompasses Artificial Intelligence, is expected to grow by more than 9 per cent during the period 2010 and 2023. One of the main factors for the expected growth is the prosperous performance of the travel and tourism industry. But the application of innovative and novel technologies such as Artificial Intelligence, and Machine Learning will bring about significant changes at the industrial level. The technological factors can mold the industry landscape and the processes that are conducted by tourism businesses. According to an article by Forbes, due to the rise in the overall application of AI in the travel and tourism industry, many new jobs will be created. It is believed that between 2018 and 2022, the aviation industry and the tourism industry will see a high level of retraining so that human factors can adapt to the evolving technological infrastructure. It is expected that almost 58 million new jobs will be created by the year 2022. Such a scheduled change could help to deal with the existing unemployment problem.

In the technology-driven times, the rise in the AI footprint in the tourism industry is a good sign. This is because it indicates that the industry can make the optimum use of the latest technology to improve efficiency and productivity. The customers of the tourism industry will benefit due to the improved level of satisfaction. At the same time, the tourism business undertakings will be able to have better control over the processes. The business processes will be automated to a great extent, and the business operations and protocols will be streamlined in nature.

Even though the application of Artificial Intelligence technology will give rise to many benefits at the industry level, the organizational level as well as the customer level, it can also give rise to numerous challenges and complexities. For instance, introducing different types of AI in the business context of the tourism industry would not be an easy job. Business undertakings would need adequate financial resources to build a secure and robust technical infrastructure. The increase in the use of robots, chatbots, and other AI technologies would mean that the actual human interaction would be restricted in the tourism industry. This could have an adverse implication on the traveling and tourism experience of the end-users. The technology-driven approach could give rise to new, complex, and challenging technical issues that are not yet known. The marketers operating in the tourism industry would have to integrate technology seamlessly so that the technology would be easy to use, and at the same time, it would be beneficial for all the stakeholders. Such a process could be quite lengthy as the Artificial Intelligence technology is still in an early stage.

The Artificial Intelligence concept is quite new and very powerful. There is a need to carry out more research studies on the AI concept as well as its application in the industrial tourism setting. Additional studies will shed light on the complexities that might arise before business undertakings in the tourism industry due to the application of AI technology ( Dirican, 2015 ). Many technical experts have been skeptical of AI such as Stephen Hawking. So it is necessary to carry out a holistic assessment if the new and unique form of technology as its implications would be severe. The concept of robotics and Artificial Intelligence could have a direct impact on the human factors that are currently functioning in the industry. Thus there is a need to conduct comprehensive research studies on AI in tourism so that the overall implication of the technology can be critically assessed. It will help to capture the positive as well as the negative impact on the technology on the industry, the businesses, and the customers.

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Corresponding author

About the authors.

Nagaraj Samala is based at the Woxsen School of Business, Hyderabad, India and University of Hyderabad, Hyderabad, India.

Bharath Shashanka Katkam is based at the University of Hyderabad, Hyderabad, India.

Raja Shekhar Bellamkonda is based at the University of Hyderabad, Hyderabad, India.

Raul Villamarin Rodriguez is based at the Woxsen School of Busines, Hyderabad, India.

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