How digital transformation affect the travel and tourism industry: mobile apps and technological innovation

Digital transformation has a profound impact, entirely changing the way we live. In which, the travel industry digital revolution has redefined how businesses perform.

In the last two-decade, the travel and hospitality industry is the game of traditional agencies, which witness the absence of tech companies. In which, travel agencies hold undisclosed information that customers could not get it from anywhere else unless they visited the agency office. At this time, people had spent an hour to book a ticket in a serpentine queue with confirmation in a paper form. Additionally, with the manual process, passengers waste roundly 90 minutes for airline check-in.

Digital transformation in the travel industry entirely makes a disruption in the way people embracing information and services. By which, the rise of internet and travel software development has eliminated the geographic challenge, allowing companies to approach their clients via a screen. Let discuss the picture of the travel and tourism industry deeply emerging digital transformation.

Digital transformation footprint in the tourism industry

One of the most significant outcomes of the digital transformation process refers to offer more affordable services in the convenience and accessible approach.

The rise of online booking

Target customers of the whole travel and tourism market focus on gen Z and Millennials, who are willing to spend more on the travel experience. In fact, these groups of customers leverage the internet in every single activity in life that they set digital presence as the core criteria for criticizing a business.   

In practice, travelers currently prefer travel portals in browsing trips or planning a vacation. The average travel online booking reported at roundly 148 million orders per year. In 2019, the total value for online booking only reached US$755 billion, which enjoyed a growth rate of approximately 10% annually. As a result, travel companies recently invest mainly in staying ahead of the online market.

Additionally, online booking dominates travel planning businesses that at least 90% of customers doing online research for their holiday. Apart from comparing the cost, travelers also consider reviews and shared experiences of other online. In which, having a positive review in TripAdvisor is to stay on the strategic purpose of the majority travel sellers. Besides, booking in advance refers to the favorable way for travelers to reduce the risks. Reports show that roundly 80% of people book their trip at least one month before their departure.

Sharing economy: the new king in the travel business

Indeed, the fundamental value of the travel industry refers to create a connection between people and location. The born of sharing economy has made online booking even cheaper. Travelers currently benefit from the diversity in accommodation booking worldwide with more customize options.

Related article: Book affordable flight via matrix ITA Software – Powerful tool for trip planning 

Take Airbnb as an example, allowing hosts to share their spare room with travelers, it turns every house becoming a temporary hotel. In which, hosts could make full use of all the available space, while travelers can get a hotel-quality room at a lower price.  

In the transportation context, a ride-sharing empire had posed a disruption in the taxi industry by adding transparency in payment that passengers know there paid before booking the ride. Besides, drivers could offer more than one passenger in a single rote for price saving, which brings benefits for three parties, including passengers, drivers, and platform owners.

By 2025, the total size of the sharing economy expectedly worth roundly US$ 335 billion that companies will project to increase twenty times in value in one decade. Additionally, this sector is also favorable for startups, which expectedly attract US90 billion in crowdfunding by the end of 2020.

Digital transformation: Significant digital travel trends

Undoubtedly, the rapidly changing in technology induce untold trends, continually varying due to each category. We list here with four significant one that massively affects the industry 

1. The empire of mobile apps in digital transformation

The domination of smartphones forces travels businesses to rely on mobile app development to grow. Indeed, it is not a strangle fact that roundly 35% of users booking accommodation via a mobile device. The tourism mobile app currently becomes an indispensable application in each smartphone of travelers. Likewise, if travel agencies today do not want to present in other mobile apps, they will invest in custom tourism app development for not lagging behind.

However, the challenge of registering as vendors of other travel app is data sharing among online platform. You might lose control in managing the relationship with your customers as it belongs to the app owner. In return, you save the time and money to adopting a digital path to connect with your target customers.  

In case you decide to develop your tailor-made mobile app for better control capacity, it takes you at least three months or more to finish. Digitalization in the tourism industry might be expensive to several players, but it definitely worth.   

2. Cognitive Computing in the Real World

IoT technology, data, and machine learning made cognitive computing step out of science fiction. Travel and tourism system could tell you what specific options that fit with you even before you perceive it. The principal mechanism bases on historical data, previous search, and your filled profile. Whereby, the system could automatically narrow the options for your entire trip package without your self-manipulation. 

Related article: How IoT application reshare the travel software development

Cognitive computing has built from machine learning technology, offer self-learning features working with data analysis, voice recognition, behavior recognition, which simulates the human brain. However, the significant challenges of this digital transformation trends relate to IT expertise limitations. The system requires high qualification of software development company and forcedly come up with a massive amount of investment.    

3. Omnichannel Model in the Travel Industry

The travel and tourism industry can not end with only one provider but the collaboration among a long list of parties. From the planning time, a typical customer spends significant time to browse several digital channels for their expected information. They have an incentive to thoroughly consider other experiences and also willing to share their encounter. As a result, the omnichannel sales model gives business higher potential to present into customers’ screens.

Although brick and mortar travel companies might be out-date, it adds more trust to the brand. Customers tend to choose companies with clear and transparent business details. Combining both online and offline activities is seemingly still the powerful strategies

Since the core value of the travel industry refers to offer journey experience, passengers need support throughout the tour. The omnichannel model in after-sale communication would catch customers’ attention and get them to return to your business. So, what customers expect from the travel business, the answer is always-on. It means whenever they need you, you have to be ready for help.   

Expressly, you should take control of every possible communication channels, including message apps, chatbot, dedicated software development team, social media, booking platform, email, etc. In which, voice assistants get more attention as roundly 70% of online requests currently done by voice.

4. Personalization in customer experience

As the travel and hospitality market witnessed a large number of players; customers tend to more fastidious regarding the practices they explore. The current and future trends that travelers concern is the frontier of customizing and tailor-made travel packages. The core duties of successful travel and hospitality businesses refer to design and deliver their services with a high level of personalization based on each unique preference. Reports propose that roundly 57% of respondents concern the customize experience and interaction when selecting the providers.

Related article: 5 reasons why every travel and hospitality company need a software mobile app

The question is, how can we do that. In the past, custom travel services came as an impossible concept that the world lack of resources and technology. The presence of big data and Artificial Intelligence give businesses a powerful weapon to pursue their customers. A survey done by Google claimed that 36% of travelers willing to pay more for tailor-packages or unique experiences.

Final words, digital transformation in the travel industry might not a clear concept, but you can feel in every moment in life, from the way of capturing information to how you make the decision. The travel and hospitality industry notice the impact more than any other area as it does not offer a physical product, but experience, which is greatly affected by the digital lifestyle.