Digital technology boosts tourism, but to the detriment of SMEs

2024-08-15 06:39:00

In just a few years, digital technology has revolutionized tourism practices.
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Par Damien Chaney, IN Normandy; Julian Hofmann, IN Normandy et Mustafad Zaman, IN Normandy

The tourism industry has been profoundly transformed by the advent of digital technology. As an illustration, in 2023, more than 80% of travel bookings by French tourists were made online. After the Covid 19 pandemic, tourist attractiveness has experienced a strong recoveryin particular thanks to the facilitation and digital organization of travel.

The health crisis has acted as a catalyst. It has accelerated the digital transition and made online tools even more essential for planning and managing trips. In the tourism industry, digital has reshaped the way travelers interact with services. At the same time, the development of digital has changed the way companies adapt their offers to meet the emerging expectations of their customers.

A personalized experience

Traveler behavior has evolved dramatically with the rise of digital. Now, online bookings have become the norm, replacing traditional travel agencies with platforms. Booking, Airbnb, Expedia, among others, offer unprecedented accessibility and convenience. Through these platforms, travelers can compare prices, read reviews and book services in just a few clicks.

Furthermore, the use of algorithms and big data allows companies to personalize offers, by proposing recommendations adapted to the individual preferences of travelers.

In addition, mobile applications play a crucial role during travel. They provide directions, offer real-time translations and provide local information. Apps like TripAdvisor and Google Maps have become indispensable companions for modern travelers. We don’t realize it anymore, but all these possibilities were still in their infancy a decade ago. For example, Airbnb was created in 2008! That’s how fast these transformations have been made.

Beyond these already well-established advances, the future prospects of digital in tourism are still promising, with emerging technologies poised to further revolutionize the industry. For example, artificial intelligence can enhance the tourist experience through the use of virtual assistants and instant translation services. Augmented reality, meanwhile, is expected to help enrich tourist visits by providing contextual and immersive information.

The emergence of smart tourism

« Le smart tourism » – or smart tourism – is emerging as an innovative way to integrate information technologies to improve the tourist experience, destination management and sustainability.

At the same time, smart cities are integrating advanced digital infrastructures to provide real-time information to tourists and optimize visitor flows. For example, sensors and location data can be used to manage crowds at tourist sites, while mobile applications offer personalized services and instant recommendations. These technological advances also offer opportunities to promote safer and more sustainable tourism. For example, the blockchainwith its ability to secure and make transactions more transparent, finds applications in reservations and payments, increasing consumer confidence.

A necessary transformation of tourism businesses

Tourism companies have had to adapt quickly to this new digital era, embarking on the path of digitalization. Large companies, thanks to their significant resources, have quickly adopted cutting-edge technologies such as big data, artificial intelligence and immersive technologies, developing structured digital transformation strategies.

This is the case of the chain ofMarriott hotelswhich created a virtual reality experience that allows guests to tour its hotels around the world. Similarly, the Louvre Museum developed an augmented reality app that superimposes information and images onto exhibited works of art.

In contrast, small and medium-sized enterprises (SMEs) adopt digital technologies more gradually due to the existence of a stronger budget constraint and limited human resources. This difference in technological maturity is harmful because it widens the competitive gap between large companies and SMEs, which has an impact on local economies. This situation can hamper growth in the tourism sector because SMEs are often able to compensate for their technological delay through innovative practices and more disruptive approaches.

Due to their small size and flexibility, SMEs enable a rapid adaptation and experimentation.

This agility fosters a creative culture, which is essential to meet emerging needs and stimulate the economy. For example, Blablacar revolutionized carpooling in Europe. TransferWise, now Wise, innovated international money transfers with low fees. Oculus VR, before its acquisition by Facebook, transformed virtual reality with affordable headsets.

Faced with this observation, the projet DIBEST(Digital Innovation for Blue Enterprises & Social Tourism) is an interesting initiative to bridge this digital divide. Funded by Interreg Atlantic Area and coordinated by the Western Development Commission, this project brings together various stakeholders from the economic and academic worlds of Ireland, Portugal, Spain and France. Its main objective is to support tourism microenterprises in the Atlantic coastal region in the adoption of digital innovations. By strengthening the capacities of tourism SMEs, developing tailor-made support and facilitating the adoption of new technologies, the DIBEST project aims to improve their competitiveness, market access and environmental sustainability.The Conversation

Damien ChaneyProfessor, IN Normandy; Julian HofmannProfessor of Marketing, IN Normandy et Mustafad ZamanAssociate Professor in Digital Marketing, IN Normandy

This article is republished from The Conversation sous licence Creative Commons. Lire l’article original.

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#Digital #technology #boosts #tourism #detriment #SMEs

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