Tourism Industry and Technology Impact

This assignment examines the profound influence of technology on the tourism industry. It delves into how advancements in technology have transformed travel planning, marketing strategies, and global competition within the sector. The analysis highlights key trends such as online travel booking platforms, digital marketing techniques, and the rise of tech-driven travel experiences.

INDIVIDUAL
REFLECTION

Table of Contents
INTRODUCTION...........................................................................................................................1
Theories of technological development......................................................................................1
Technological development and tourism....................................................................................2
key concepts................................................................................................................................2
Changing nature of tourism industry...........................................................................................3
Competitiveness in the industry..................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In the modern business of travel and tourism many contemporary issues exist. There are
various types of technological development that are taking place in this industry (Buhalis and
Darcy, 2011). Taking use of these makes the business process easier. In this study I have
reflected on the ways technological development has changed the tourism industry and also
advantages and disadvantages associated with it. I have checked the possible technologies that
are felicitating this industry.
Technological developments
There are many technological developments that is experienced in this industry which has
resulted in handling more number of persons at the same time. One of the basic changes that
have been made is in the information and communication technology (Granados and et. al.,
2011). This technology helps in making internal and external communications better which is
essential for the bringing smoothness in the work. I have studied that the technology such as
management information system has helped company in managing its business in many parts of
the world. This is because of the fact that the information that is generated at many places if the
world can be stored centrally and can be accessed from any parts of the world through the use of
modern gadgets. I can say ICT has transformed the way of doing business as companies are
shifting towards digital marketing along with the traditional marketing strategies. One single
click off the users to their online sites they can sell advertise thousands of tour packages
available to them. It has not only empowered the customers but also gave power in the hands of
users to select from the thousands of options available to them. Costumed travel packages are
also available to them according to their choice.
Theories of technological development
There are several ways in which this can be understand one of the best possible way that I
found was porters five forces. Since in the tourism industry the external environment is dynamic
and up to a large extent it is affected by these factors. There is large amount of competition that
is faced by the companies in this industry while operating in any market (Molz, 2012). Due to
this throat cutting competitiveness one of the most important pattern change was noticed in
pricing strategies. They have been on the lower sides which has reduced the company's profit
margins. Threat of substitute is on the lower side as the use of technology has empowered the
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industry in making tour packages look more attractive. With the use of technology the buyers
bargaining power has increased considerably. With net surfing they can compare the packages of
many customers at the same time and can select the best option in the market. On the other hand
the suppliers remained on the verge of threat to loses. It is also important for the suppliers to
continuously upgrade their technology that is being used also training their employees so that
they can efficiently use the technology. The threat of new arrivals have also increased . This is
due to the fact that even the companies with smaller amount of resources can use technological
means to reach to maximum number of potential customers and hence they can also grab the
opportunities available in this industry.
Technological development and tourism
In the study of advancements of technology in the tourism I have checked that with the
introduction of 3.0 in the industry has felicitated the industry in much better way. Use of 3D
images over 2D has helped companies in making their promotional campaigns more attractive.
Along with the introduction of smart phones one of the primary benefit which came to the
industry is that communicating with customers became faster as well as they do not have to rely
on the workstations for booking their tickets or checking the plans (Richard and Zhang, 2012).
The use of social media sites have also helped companies in expanding their business to new
horizons as they can directly interact with the customers that are planning their holidays. The
options such as multiple screen sharing economy has provide choice to the users as they can
easily compare two plans.
key concepts
There are several concepts that are associated with the travel industry like the
disintermediation as with the help of technology middle men were removed and also led to
increase in the satisfaction level of the consumers as the service quality has automatically
enhanced (Sheldon and Park, 2011). Along with it innovations in the industry has changes the
trends of the market and any last minute changes can easily be made. The value chain standards
have raised up to new levels. Plans are updated at an instant according to the demands of the
consumers like me.
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Changing nature of tourism industry
I have noticed there have been considerable amount of change associated with the nature of the
tourism industry especially in the fields of communication where the use of new ICT technology
and the increased speed of internet has made the business process faster. People want instant
replies to their queries which is felicitated by the technological use. One of the most significant
change took place was in the behaviour of the choices (Spencer, Buhalis and Moital, 2012).
Since earlier people were unaware of the places that can be visited outside the boundaries and
hence were visiting the places inside the country. With the use of email marketing and other
business apps company can reach to many people at the same time.
Competitiveness in the industry
Age of globalisation has been totally empowered by the technology that is being used in
many industries. With the globalisation the competitiveness in tourism industry has raised
considerably. Companies have to make changes in the ways they are doing business and it must
be distinct to all other since by the global report on tourism industry there are 136 big companies
that are operating inside it (Xiang, Magnini and Fesenmaier, 2015). Every company has a solid
plan of business as well as excellent supportive marketing plan.
CONCLUSION
From the report it can be deduced that people like me are highly affected by the
introduction of new technologies in the tour industry. It has helped me in comparing many travel
plans. There are many kinds of changes that are taking place in the technology that is being used
it has empowered both service sellers as well as the potential buyers. Technology has added
more value to the products and services and has also raised the customer satisfaction of the users.
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REFERENCES
Books and Journals
Buhalis, D. and Darcy, S. eds., 2011. Accessible tourism: Concepts and issues (Vol. 45).
Channel View Publications.
Granados, N.F. And et. al., 2011. Decommoditization, resonance marketing, and information
technology: An empirical study of air travel services amid channel conflict. Journal of
Management Information Systems. 28(2). pp.39-74.
Molz, J.G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Richard, J.E. and Zhang, A., 2012. Corporate image, loyalty, and commitment in the consumer
travel industry. Journal of Marketing Management. 28(5-6). pp.568-593.
Sheldon, P.J. and Park, S.Y., 2011. An exploratory study of corporate social responsibility in the
US travel industry. Journal of Travel Research. 50(4). pp.392-407.
Spencer, A.J., Buhalis, D. and Moital, M., 2012. A hierarchical model of technology adoption
for small owner-managed travel firms: An organizational decision-making and
leadership perspective. Tourism Management. 33(5). pp.1195-1208.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
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