Technological Innovation in Tourism Industry

Technological
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Critical Review of Key theories of technological innovation......................................................1
Technological development & Tourism......................................................................................3
Division of Key concepts.............................................................................................................5
Critical discussion of the changing nature of Tourism industry structure...................................5
Critical evaluation of competitiveness of the Tourism................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Technological innovation is an extended concept of innovation. Innovation is the primary
source of competitive advantage for organizations which derives the forward efficiency and
higher productivity along with the differentiation to full fill higher variety of needs.
This report will help in understanding about the Development of information and
communication technology which allow Tourism and hospitality industry in improving the
customer approach which leads to overall improved performance. The study will also make a
clear understanding about the technological innovation with the application of the theory and it
will also explore various models in order to identify the competitive advantage in the market.
Moreover, it will also help in making clear understanding about influence of technology on the
changing structure of Travel and tourism industry. Also it will helps in evaluating the impacts of
technology within the travel and tourism industry which leads to gain more competitive
advantage. It will provide the brief view about the semantics of connections which have
connected large number of people across the world together via social networking sites.
MAIN BODY
Critical Review of Key theories of technological innovation
Technological innovation can be termed as a production of the goods and services along
with the significant technological changes in products and their process in order to meet the
demands and needs of the customers.
There are various different theories of technology has been introduced in order to explain the
factors which shape the Technological innovation (Allaoui, Bourgault and Pellerin, 2019).
Theses theories leads to the impact of technology on society and culture. Today's theory of
technology points to the historical evidence that technological innovation often give rise to new
scientific fields. The history and foundation of the technology within the hospitality industry
ensures effective services along with the efficient Customer care services and this may be
categorised into three categories such as Technological determinism, social constructivism,
Critical theories of technology. Key theories of technological innovation leads to various
competitive advantage for the organization which can be described through the use of Porter's
five forces.
In addition to this, Michael Porter's five Competitive model has been a most influential
model which allows the organization to produce the effective strategies of the business. Porter's
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five competitive forces are therefore are both highly independent with the other sub system in the
external environment. Porter's five forces is an analytical tool for testing the competitive
environment. There are five key index which helps in analysing the competition in the market
and this is used to examine the attractiveness of the market (Basnet and Aryal, 2018). A
technological change in the organization requires a business unit to understand the marketplace
and it also helps in analysing the external environment of the business.
The threats to new entrants
Travel and tourism industry usually requires low skilled employees and large amount of
resources in order to meet the demands of the customer. Financial barriers are generally low for
new entrants within the industry especially after the invention of the internet. Technological
advancement have increased the growth of the travel and tourism industry as it also includes the
online approach of the customer. Thus it helps in increasing the sales of the company and thus in
this way technology and innovation within the company has affected the growth and
sustainability for the long time. On the other hand, normally new entrants suffer from their cost
however they are the huge competition for the existing industries in the market. New entrants
also suffer from the limited number of suppliers which result in limited choices of destinations
(Charles, 2019). So new entrants are the one of the bigger challenges as with the growing
technological improvement, they can easily identify the choices of the customer according to the
new trend in the market.
The threats of substitute products
Substitute product choices of the travel and tourism industry are plentiful. As tourists can
go for self-driving tour instead of travel agent. As a GPS equipment and travel guide offered by
the internet and technology, there are various substitutes which may be a threat to the existing
tour and travelling industry.
The threat of competitive rivals
The company claims that the UK business decline significantly in 2011 as the profit
margin has been reduced to 25 percent from 4.1% to 3.1% . The tourism industry remains its
high competition, which not only results into the number of new entrants which result in reduced
customer purchasing power. The company generally foresees the uncertain economic
environment which continue the disruption in the input costs.
The bargaining power of suppliers
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