Digital Transformation Strategies for the Travel Industry

This report provides a comprehensive analysis of digital transformation within the travel industry. It examines the impact of emerging technologies such as IoT, AI, blockchain, virtual reality, and robotics on various aspects of the sector, including customer experience, operational efficiency, and business models. The report explores how these technologies are reshaping traditional practices, enhancing personalization, improving data handling, and fostering innovation. It discusses the benefits of digital transformation, such as increased customer satisfaction, improved competitiveness, and economic growth, while also addressing potential challenges and strategies for successful implementation. The report draws upon various research papers to highlight key trends, providing insights into the future of the travel industry and the importance of embracing digital strategies to remain competitive.

Running Head: TRAVEL INDUSTRY
Digital transformation in Travel industry
Name of the Student
Name of the University
Author Note

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Singh, A., & Hess, T. (2017). How Chief Digital Officers promote the digital transformation
of their companies. MIS Quarterly Executive, 16(1).
According to Singh & Hess (2017), the digital transformation in this evolving
technological world has benefited a wide range of industries. The transformation uses the
platform of social media or any other online platform with the aids of devices like mobiles,
embedded systems and analytics. These aims to enhance experience of the customer and provide
best probable services at the earliest time possible (Singh & Hess, 2019). The author have
discussed about the role of chief Digital office in every industry to implement digitalization that
has the responsibility to manage all the IT related activities in an organization. In the travel
industry, the travel packages and direct interaction of the customers are executed via the online
platform. It has enabled the travel companies to be more customer-centric. The digital activities
are more attracting to the customers than the tradition forms, the undertaken organization being
subsidiary of a global company travel company. The emergence of technology and digitalization
have accelerated the operations such as booking of tickets, hotel rooms, vehicles at the
destination. The customers can even see the hotel room in the three dimensional space and then
decide for the booking, the exact location of the travel seats are also shown through the aid of
technology (Enger, Sandvik & Iversen, 2015). The digital transformation is not only utilized by
the customers but also by the service providers. The preferences, choices and demand of the
customer are easily predictable and then specific services are provided. This has allowed to
retain them better and enhance their experience more.

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Gautam, B. P., Asami, H., Batajoo, A., & Fujisaki, T. (2016, August). Regional revival
through iot enabled smart tourism process framework (STPF): A proposal. In 2016 Joint
8th International Conference on Soft Computing and Intelligent Systems (SCIS) and 17th
International Symposium on Advanced Intelligent Systems (ISIS) (pp. 743-748). IEEE.
The concept of smart tourism is discussed in this article. Japan being a fastest growing
Country in the technological field have introduces the concept of smart city, which is built on the
basis of the emerging technologies like Iot. Similarly, tourism is also ignited by IoTs and ICTs.
The digital transformation have change the tradition ways of travel and tourism to the smart
tourism (Gautam et al., 2016). This transformation is effectively contributing to the economic
growth of the country. The management process and the frameworks have also change with new
approaches and methodologies. One of the effective way to boost up the economy of any country
is to incorporate smart tourism and connect the tourist with the country. The use of the ICT
devices that are basically created by IoTs are used for designing the functionalities of the
developed systems. The safety of the customers are taken to be most crucial and important aspect
to the management team of the service provider. STPF is used in order to monitor the activities
of the tourists and safety is established. The integrated approach of the utilization of ICT and IoT
is known as STPF. The use of virtual reality and Mixed Reality is propose for providing best
experience of comfort in all seasons (Шейх & Суюнчалиева, 2019). The availability of the
experience of all season can only be regulated by the effective use of ER, VR and similar
technologies. The knowledge about tourism is also shared with the concept of smart tourism. The
action plan to implement the technologies are needed to be made aware to the locals with regular
updates.

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Simić, I., & Matović, I. M. (2018, May). Digital transformation in the function of improving
the competitiveness of the Republic of Serbia in the tourism sector. In TISC-Tourism
International Scientific Conference Vrnjačka Banja (Vol. 3, No. 1, pp. 374-389).
The developing world is fueled by the transforming technologies and digitalization. The
application of the technologies and modernization of the existing technologies are implemented
in all the level of business. Similarly in the travel industry, they prosperously grow with the
digital transformation since its emergence. The contribution of travel and tourism in the
enhancement of the economy of the country have been significant when the technological
transformation have emerged (Simić & Matović, 2018). The Republic of Serbia have experience
it better with improvement in the competitiveness of the tourism field. The digitalization of the
business, active use of the devices, smart watches, instant messaging, notifications and services
centric to the consumers have allowed the industry to flourish better. The technologies used has
the aim of providing better orientation in the tourism field, better quality of service, delivery of
information effectively, better comfort provider and better servicing in the field. The satisfaction
of the tourist are the main aim of the travelling agencies with successful operations of the
organization. The customers are updated with instant e-mails and messaging in order to keep
them informed at the earliest time possible, keeping the transactional cost lower (Gunarekha,
2018). This way they build better customer relationship. The paper clearly show the statistics of
the quality and guidelines of the travel sector that digital transformation have caused. This also
describes that the scope of innovation is evident to take place with intensive digitalization of the
activities taking place in this industry.

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Alexis, P. (2017). R-Tourism: Introducing the Potential Impact of Robotics and Service
Automation in Tourism. Ovidius University Annals, Series Economic Sciences, 17(1).
Digital transformation is stated to be one of the largest impact on the economy by the
workforce of travel industry. By 2025 the job opportunities are also expected to open in the same
field. The introduction of automation will enhance the job sector of travel industry more in the
coming future. The global workforce in the tourism industry is expected to be incorporating
mobile devices, autonomous vehicles, artificial intelligence, cloud computing and three
dimensional printing to expand their skills and implement innovation in the field (Alexis, 2017).
The education and training of the tourism are more focused on providing training about the
technological field only. The involvement of robotics are also seen in the industry such as the
chatbots that facilitates communication through the online platform with the customers and
resolves their queries at the fastest possible time. The Artificial Intelligence bots runs of the
advance algorithms, the virtual travel agents makes recommendations for the customers as per
their information already available to the websites. The presence of the industrial robots like
RocioCoaster, robotic bartenders on the cruises are the attractions that the tourism industries are
using to increase their business and make the experience of the traveler more interesting
(Chourasia, 2018). The presence of the technologies in the travel industry are welcomed with
open arms because of the advantages they have regarding better data handling, non-stop working
capacity and multi-lingual interaction capability. The investment being a bit costly however it is
seen to be a long term investment and the peripheral cost to accommodating such large crew on
cruises or airplanes are reduced.

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Zsarnoczky, M. (2018). The digital future of the tourism & hospitality industry. Boston
Hospitality Review, 6.
The introduction of digitalization have started to involve in the lives of common people
rapidly in the last decade by Zsarnoczky (2018). The technological changes and digital
transformation are associated with every products and services one individual uses. The
environment of living is fully devoted to the features of digitalization. The innovation in every
sector is welcoming the transformation. The new fashion of travelling is mostly the craver of
personalized solution along with that the stakeholders of the tourism sector have the access to the
information of the customers (Zsarnoczky, 2018). The presence of technology is allowing the
operators to study and track the behaviors and preference of the customers through the advanced
technologies. The availability of resources and goods are exploited by the consumers in this
economy. The range of functionalities provided by the technologies like Artificial Intelligence,
blockchain technology, virtual reality are mostly present for communicating better with the
system as well as with the delivery out party. The operations are all safe, privacy protected,
personalized, data handling and effective data collection. All t6his features helps in taking
decision in the favor of both company and customer. The digital services are focused on
acquiring the right knowledge of the customers, proper verification, then taking decision by the
aid of AI based systems (Velikova, 2019). As the days are passing by the amount of the
availability of data are also increasing. Big Data is one such way that plays an important role in
handling such quantity. Then comes the checking of the credibility of the data, those data can be
compared with the existing data through automatic techniques. The future of tourism is laid out
with vast opportunities and innovation.

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Härting, R. C., Reichstein, C., Härtle, N., & Stiefl, J. (2017, June). Potentials of Digitization
in the Tourism Industry–Empirical Results from German Experts. In International
Conference on Business Information Systems (pp. 165-178). Springer, Cham.
The digitalization is stated as the two sides of coin, one is the positive side whereas the
other one is the negative. The opportunities created by digital transformation is full of innovation
and opportunities if utilized correctly. Otherwise, the chances of exploitation is also vast. In the
travel and tourism industry the probability of both is 50- 50 percentage. The digitalization
professionals proposes strategies that utilizes the resources and expertise of the IT experts with
the certain budget. The aim is to obtain maximum profit with the utilization of minimum cost
(Härting et al., 2017). The possibilities of digital transformation is beyond predictable and it is
vastly expected that it is still innovating and potentials are exploring to maximize the
profitability of the tourism industry. The common representation of digital transformation is to
accelerate the process of a business through proper implementation of intelligence and concepts.
Such technologies are cloud computation, Artificial Intelligence, Internet of Things, Big Data,
etc. The use of Internet of things is related to the utilization of the already available intelligence
and the further processes are being done on the same. The available information of the online
platform and networks are used for innovating the existing devices and enhance their
functionality to provide better customer experience. Hence, the potential of the technologies are
relevant in the tourism sector too. The functionalities are digital implementation of services
through virtual journeys, accommodations, experiences, etc. (Keferova, 2020). The potential
accelerated e-ticking processes, flexible transactions, low cost of processing, availability of
personalization, positive influence on the social platform, reviews from customers helps in

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growing the business, implementation of virtual reality promotes digitalization in the tourism
industry.
Kwok, A. O., & Koh, S. G. (2019). Is blockchain technology a watershed for tourism
development?. Current Issues in Tourism, 22(20), 2447-2452.
According to Kwok & Koh (2019), the adoption of the blockchain technology and its
proper implementation is seen in the tourism industry. The concurrent data translation,
interaction with the cloud, secure, safe and efficient storage of data can only be made possible by
the effective and right use of blockchain technology. It is reflected in the paper that big
organization like Aruba is proposing a platform where tourists can engage themselves to allow
transaction efficiently. The commercialization of the technology will show its actual ability to
provide real time solution in the travel industry (Kwok & Koh, 2019). The area where
blockchain plays vital roles are contracts, supply chain, payments and transportation. The areas
where this technology will benefit the tourism sector are by enhancing the experience of the
tourist with an interactive platform, the operator at the destination can compare and verify the
identity of the tourists through the aids of technologies, the preference and choices of the tourists
can be predicted by the AI technologies available in the websites and help the hotel owners to
provide personalized amenities at the time of check-in. The dealing of the payments and
transactions are easy as the cryptocurrency is easy to exchange across borders. The conversion of
foreign currencies are easy and cost effective and blockchain facilitates the cryptocurrency only,
discounts are high on such type of operations (Pencarelli, 2019). Next, the financial aspects are
covered well as the security is high, the banking systems are now dependent on the application of
blockchain only and they involve and establishes compliances with the foreign banks with the

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availability of alternatives of payment options to the tourists. Lastly, operational coast are low,
hence the service providers uses such technology so.
Tfaily, R. A. (2018). E-Tourism and the competitiveness of tourism products in the context
of the global tourism and travel industry Market. Revista de Management Comparat
Internațional, 19(2), 187-195.
As per Tfaily (2018), the change in the society are caused by the globalization. The travel
and tourism industry is most affected by this changes, the introduction of innovation with respect
to process, activities, products, services and the ways they are delivered have changed over the
period of time with the inclusion of technological advancements. It is important to evolve with
the trends and fashions to survive in this competitive industry. The technology plays a vital role
as every human activity is supported or aided by some kind of technological devices (Tfaily,
2018). Hence, the need and demand of the customers have also changed in such perspectives, the
availability of service irrespective of time and location is evident to occur. The dynamic use of
the resources provided by the tourism companies are essential. The tourism industry has faced
revolution by the introduction of technological communication devices and development process
aided by technology, all these technologies have helps in generating the new models for business
operation (Shash & Pshembayeva, 2019). The main purpose behind tourism does not limit itself
to provide relaxation but commercialization of the destination, realization of the traditional
diversity, opportunities, etc.
Andreassen, H. (2015). Strategic responses to digital disruption in the outbound wholesale
travel industry: a New Zealand perspective (Doctoral dissertation, Auckland University of
Technology).

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The nature that ICT reflects for the travel industry is clearly stated by Andreassen, (2015)
in the paper. The revolution of the internet commercialization in several industries have bought
new areas to get explored and bring business with new dimensions. The emergence of
technology is most in favor of bring transparency in the organization. The activities were more
open to new innovation and more of welcoming changes. The accessibility of information and
details are evident by the emergence of new technology (Andreassen, 2015). The travel industry
is the most benefiter by this, the consumers can determine their profit by comparing the costs and
facilities provided by the available companies and it has allowed independence of choosing the
travel ways and rooms. This has enables the various companies to compete for betterment and
attract customers towards them. The emergence of ICT and communication with all have
initiated a connective nature with all the companies in the industries along with its customers.
The availability of vast information have contributed to scale their business to higher levels. The
availability of customization is the biggest achievement in this industry to attract most of the
customers (Rosenbaum et al., 2017). The benefits of the technologies are to have solution in the
real time which has a high demand in the travel industry. The last minute booking of tickets
requires high statistical knowledge to allocate the most probable seat at the available place. This
can be aided by the AI technology and the outcome is received in real time and quick.
Naik, A. H., & MR, M. E. (2018). The Impact of Digitalization in Development of Tourism
Industry.
As per Naik & MR (2018), the presence of technology in the tourism and travel industry
has the aim to bring swiftness in the over operations. The needs of the customers are given most
importance too which is perfectly aided by the technology. The important aspect is the ability to
communicate effectively and efficiently through the functionalities available in any website

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related to travelling. The availability of online transaction made it easy to travel to any corner of
the earth and not be concerned about carrying cash (Naik & MR, 2018). The choices of places
for any destination is also simple with the availability of reviews and ratings on the online
websites helps to compare better and provides a clear picture of the map to follow in an unknown
place and its costing. The tourist can easily compare and get the most out of a single travel. The
technology of providing notification of the reminders of tickets and train timing have made the
life of the traveler easier (Gretzel, 2017). The real time update of the status of the trains and
flight helps both the consumer and the provider to provide convenience.

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Reference
Alexis, P. (2017). R-Tourism: Introducing the Potential Impact of Robotics and Service
Automation in Tourism. Ovidius University Annals, Series Economic Sciences, 17(1).
Andreassen, H. (2015). Strategic responses to digital disruption in the outbound wholesale
travel industry: a New Zealand perspective (Doctoral dissertation, Auckland University
of Technology).
Chourasia, S. (2018). Digitalization of Ecotourism and Allied Services in Melghat Tiger Reserve
of Vidarbha.
Enger, A., Sandvik, K., & Iversen, E. K. (2015). Developing scenarios for the Norwegian travel
industry 2025. Journal of Tourism Futures.
Gautam, B. P., Asami, H., Batajoo, A., & Fujisaki, T. (2016, August). Regional revival through
iot enabled smart tourism process framework (STPF): A proposal. In 2016 Joint 8th
International Conference on Soft Computing and Intelligent Systems (SCIS) and 17th
International Symposium on Advanced Intelligent Systems (ISIS) (pp. 743-748). IEEE.
Gretzel, U. (2017). Influencer marketing in travel and tourism. In Advances in Social Media for
Travel, Tourism and Hospitality (pp. 147-156). Routledge.
Gunarekha, B. S. (2018). DIGITAL MARKETING TRANSFORMATION FOR THE SMART
TOURISM ECOSYSTEM: A STUDY.
Härting, R. C., Reichstein, C., Härtle, N., & Stiefl, J. (2017, June). Potentials of Digitization in
the Tourism Industry–Empirical Results from German Experts. In International
Conference on Business Information Systems (pp. 165-178). Springer, Cham.

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Keferova, I. K. (2020, January). The Role of Mathematical Methods in the Digitalization of the
Tourism Business. In First International Volga Region Conference on Economics,
Humanities and Sports (FICEHS 2019) (pp. 344-346). Atlantis Press.
Kwok, A. O., & Koh, S. G. (2019). Is blockchain technology a watershed for tourism
development?. Current Issues in Tourism, 22(20), 2447-2452.
Naik, A. H., & MR, M. E. (2018). The Impact of Digitalization in Development of Tourism
Industry.
Pencarelli, T. (2019). The digital revolution in the travel and tourism industry. Information
Technology & Tourism, 1-22.
Rosenbaum, M. S., Ramírez, G. C., Edwards, K., Kim, J., Campbell, J. M., & Bickle, M. C.
(2017). The digitization of health care retailing. Journal of Research in Interactive
Marketing.
Shash, N., & Pshembayeva, D. (2019). NEW PARADIGM OF TOURISM INDUSTRY
MODERNIZATION IN THE DIGITAL ECONOMY CONDITIONS. The Journal of
Economic Research & Business Administration, 129(3), 38-46.
Simić, I., & Matović, I. M. (2018, May). Digital transformation in the function of improving the
competitiveness of the Republic of Serbia in the tourism sector. In TISC-Tourism
International Scientific Conference Vrnjačka Banja (Vol. 3, No. 1, pp. 374-389).
Singh, A., & Hess, T. (2017). How Chief Digital Officers promote the digital transformation of
their companies. MIS Quarterly Executive, 16(1).
Tfaily, R. A. (2018). E-Tourism and the competitiveness of tourism products in the context of
the global tourism and travel industry Market. Revista de Management Comparat
Internațional, 19(2), 187-195.

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Velikova, E. (2019). INNOVATION AND DIGITALIZATION IN TOURISM-RESTRICTION
OR DEVELOPMENT FOR BUSINESS IN BULGARIA. Trakia Journal of Sciences,
17(1), 252-258.
Zsarnoczky, M. (2018). The digital future of the tourism & hospitality industry. Boston
Hospitality Review, 6.
Шейх, A., & Суюнчалиева, М. (2019). TOURISM INDUSTRY DEVELOPMENT:
DIGITALIZATION AND IMPLEMENTATION ASPECTS. The Journal of Economic
Research & Business Administration, 127(1), 257-265.