SAHIL

MAHAJAN
SEPM

Individual Assignment

Domain:

Digitalization in Tourism Sector :

Introduction:
Digitalization of tourism is not a megatrend of the future. For many
years now, the sector has faced gradual transformation of the playing
field, product development and service provision lifecycle, and
customer behavior.
Technology underpins the entire cycle of a tourism experience and
thus requires the businesses to react accordingly.
Over 95% of travelers use digital resources in the course of their
travel. As a result, market survival is conditioned by the capability to
provide an adequate response to the "smart tourists' requirements.
The travelers have turned to "prosumers" co-creating their travel
experience in real time.
Future provision of the tourism services must be personalized, multichannel, responsible and sustainable
Regulatory ecosystem is an important determinant, which can either
stifle or boost this digital transformation.

KEY INFLUENCING FACTORS AND DIGITAL TRENDS

The most substantial digital trend in tourism is the power of consumers
to shape
their own experiences.
Tourists participate in the co-creation of their information, booking and
experience
through new information streams, social media, user-generated content and
location-based services.
Trends in tourism production are also visible, including data analytics,
increasing

collaboration between tourism sub-sectors and shifts in booking time, space

and
price facilitated by technology.

Two main forces in ICT are changing the tourism sector:

The increasing participation of consumers in searching, purchasing,
evaluating and communicating about the components of their tourism
experiences.
Changes in the production of these components.

The dramatic changes in access to information and products

have enabled more engaged, dynamic behavior by tourism
consumers.

Technology has also enabled development of new product

concepts and blends, sold through new channels and over new
time spans.

EFFECTS ON THE TOURISM INDUSTRY

KEY FINDINGS
Effects of ICT on the channel structure of the tourism industry include
the growing
dominance of a few large online travel agencies and Google.
Effects of ICT on the market structure of the tourism industry include
the low cost of
information and low barriers to entry.

Limited resources in traditional-model businesses in tourism hamper

innovation.

Policy approach some ideas

Consider the real impact and benefits of this trend especially in terms
of job creation, tax, information society and environmental policies.

 Consider the recommendations of several competition authorities and

consumers organizations about the benefits of this trend. Prioritizing
the public interest.
Need of creation of intersectorial working groups with public and
private stakeholders, a lab for the sharing economy.
Partnerships between authorities and peer to peer platforms to
organize these activities and improve their transparency e.g. tax
collection by platforms.
Analyze ways of compensating for a peaceful transition liberalizing
sectors or the renewal of activities with high barriers to entry linked
with the sharing economy.