Digital transformation in 2023: New changes in the tourism industry

The global tourism industry, valued at $2 trillion, is striving for digital transformation to enhance the experience for travelers. In Western Europe and the United States, tourists are now accustomed to paying with digital wallets and easily updating their information with just one click…​

View attachment 560 Digital transformation in 2023: New changes in the tourism industry

Previously, challenges such as language barriers, lack of foreign currency for transactions, or difficulties in moving were often faced during international trips.
No exception, Noam Toister, co-founder and CEO of Traveleer, a travel technology company that transforms land and sea transportation for travelers worldwide, also experienced a challenging trip. This was also the motivation for him to start his company.

AFTER THE PANDEMIC, BOTH TRAVELERS AND TRAVEL COMPANIES HAVE CHANGED ​

Mr. Noam Toister, how have people's travel habits changed after Covid-19?
The Covid-19 pandemic has altered travelers' commuting habits. People now tend to explore domestic destinations more, choosing rural or less crowded locations and prioritizing private, personalized experiences. Therefore, this is the time for technology to become an important part. The industry has witnessed an increase in sustainable tourism, longer travel durations due to the trend of remote working.
Meanwhile, travel companies have implemented stricter health protocols and offered more flexible booking policies. Virtual and remote experiences have emerged as a new trend, and there is an increasing reliance on digital platforms to address customer issues.
Despite the challenges, the tourism industry has demonstrated remarkable resilience. According to a recent survey by Prosper Insights & Analytics, 2023 is the year when the tourism industry begins to return to pre-Covid levels. Growth is likely to continue in the post-pandemic world as China and Asia fully recover, and these trends become the new norm in travel.

THE TRAPS OF TECHNOLOGY IN TOURISM ​

Which technologies will benefit travelers when booking tours?
In the new travel context, technology plays a crucial role in enhancing the traveler experience. Online booking platforms now provide comprehensive information about itineraries, prices, and reviews. Contactless payment, activated through digital wallets, has streamlined the transaction process. At the same time, current applications are very useful in supporting customers through chatbots and virtual assistants, along with tools that help passengers continuously update their journey status. For example, there are now many applications that integrate seamlessly with other services such as accommodations and local attractions, creating an integrated and comprehensive travel experience. These digital solutions not only increase efficiency but also reflect a shift toward a more connected, personalized, and responsible travel method.
However, are there any obstacles in the effort to innovate this sector?
The issue lies in the digitalization of road transport. The main challenge is that the technical infrastructure of this sector is still quite young. Unlike the airline industry, which has undergone digital transformation over the past 3-4 decades, land transport is nearly 20 years behind, resulting in a still nascent penetration curve.
The interprovincial transport sector is also very fragmented, and this fragmentation leads to inconsistencies in service quality and the availability of online booking options, making travelers reluctant to rely solely on online platforms. In comparison to flights, according to a recent survey by Prosper Insights & Analytics, most travelers will visit the airline's website to make reservations.
Moreover, concerns about security, privacy, and the absence of personal interaction between individuals may prevent some people from embracing the use of online travel services.

THE FUTURE OF THE TOURISM INDUSTRY ​

View attachment 561 Travel is experiencing new changing trends and consumers are shifting towards new choices.

Asia is hailed as the “top destination” for 2023 – Which geographical area will be attractive in 2024?
I also asked Chat GPT this question, and the answer I received was that while it is very difficult to predict with absolute certainty the travel hotspots for 2024, some signs indicate that Latin America is a region that could attract significant attention. Rich in culture, biodiversity, and historical sites, countries like Mexico, Brazil, Colombia, and Argentina are investing in tourism infrastructure and promoting sustainable tourism activities.
The allure of Latin America lies in its diverse landscapes, from lush tropical forests and beautiful beaches to vibrant cities and ancient monuments. This region is also focusing on eco-tourism, culinary experiences, and closeness to indigenous peoples, aligning with current tourists' desire for experiential travel.
In your opinion, what key factors will help the tourism industry thrive?
In my view, we need a centralized system to bridge the technology gaps and the remaining barriers in the industry, thereby allowing the entire sector to provide a single point of stop.