Impetus
Digital transformation in tourism is not a new phenomenon. But change is accelerating and the challenge of responding effectively, and mitigating risks is increasingly significant. The rise of AI alone makes it clear that digital technologies have a major impact on every aspect of tourism, which includes promising opportunities and potentially disruptive effects. Its impact is apparent throughout the entire customer journey, from the initial information-gathering to the actual experience. It also substantially affects supply chains and value creation behind the scenes.
Large rearguard not taking action
Major players such as Booking.com, Tripadvisor, Google and Amadeus are leading the way in the hospitality domain’s digital transformation, followed by a middle group of organisations that have embraced digitalisation on a limited scale. Finally, a large rearguard may want to get involved but cannot due to lack of capacity, which means that there is a real chance that members of this group will eventually lose out. In an increasingly digitally-oriented market, the frontrunners will attract consumers’ attention, and the rearguard will eventually disappear from view.
Less variety causes vulnerability
The effects of this scenario ripple through the entire market, reducing the diversity of tourist offerings. As the number of providers decreases, the available options become more uniform. A depleting market also leads to problems in the labour market. In other words, we must properly steer the digital transformation to prevent the hospitality domain from becoming increasingly vulnerable.
Change in power dynamics
Looking at sectors where the digital transformation is already more advanced, we see dramatic changes in power dynamics and even major players being squeezed out of the market. One of the most famous examples is Kodak, which did not have a good answer to the introduction of digital photography. Within the Netherlands, Free Record Shop, Selexyz and Vroom & Dreesmann (V&D) are examples of parties that underestimated the rise of online shopping and did not invest in e-commerce fast enough.
Structural change is needed
As a hospitality domain, we can learn from such developments in other sectors so that our tourism organisations can seize opportunities to ’stay on the ball’. But this requires structural changes. We focus on this issue in the following chapters. Above all, it is important to act together and move quickly. If we do not take action now, we’ll be left behind as an industry and miss out on opportunities that others will seize.
Target audience for this vision
This vision aims to support the hospitality domain – and especially the large group of SMEs within it – in the digital transformation of tourism. Tourism companies play a crucial role in this but so do policymakers, DMOs, industry associations, entrepreneurs’ associations, knowledge institutions, consultancy and internet agencies, and other organisations that work extensively with entrepreneurs. The knowledge and skills of all these parties are needed to flesh out this vision all the way to the local level. At a national level, we need to set up a number of things in a sustainable way. That’s what this vision is about: how we, as a hospitality domain, are preparing for the future.
Impetus
Digital transformation in tourism is not a new phenomenon. But change is accelerating and the challenge of responding effectively, and mitigating risks is increasingly significant. The rise of AI alone makes it clear that digital technologies have a major impact on every aspect of tourism, which includes promising opportunities and potentially disruptive effects. Its impact is apparent throughout the entire customer journey, from the initial information-gathering to the actual experience. It also substantially affects supply chains and value creation behind the scenes.
Large rearguard not taking action
Major players such as Booking.com, Tripadvisor, Google and Amadeus are leading the way in the hospitality domain’s digital transformation, followed by a middle group of organisations that have embraced digitalisation on a limited scale. Finally, a large rearguard may want to get involved but cannot due to lack of capacity, which means that there is a real chance that members of this group will eventually lose out. In an increasingly digitally-oriented market, the frontrunners will attract consumers’ attention, and the rearguard will eventually disappear from view.
Less variety causes vulnerability
The effects of this scenario ripple through the entire market, reducing the diversity of tourist offerings. As the number of providers decreases, the available options become more uniform. A depleting market also leads to problems in the labour market. In other words, we must properly steer the digital transformation to prevent the hospitality domain from becoming increasingly vulnerable.
Change in power dynamics
Looking at sectors where the digital transformation is already more advanced, we see dramatic changes in power dynamics and even major players being squeezed out of the market. One of the most famous examples is Kodak, which did not have a good answer to the introduction of digital photography. Within the Netherlands, Free Record Shop, Selexyz and Vroom & Dreesmann (V&D) are examples of parties that underestimated the rise of online shopping and did not invest in e-commerce fast enough.
Structural change is needed
As a hospitality domain, we can learn from such developments in other sectors so that our tourism organisations can seize opportunities to ’stay on the ball’. But this requires structural changes. We focus on this issue in the following chapters. Above all, it is important to act together and move quickly. If we do not take action now, we’ll be left behind as an industry and miss out on opportunities that others will seize.
Target audience for this vision
This vision aims to support the hospitality domain – and especially the large group of SMEs within it – in the digital transformation of tourism. Tourism companies play a crucial role in this but so do policymakers, DMOs, industry associations, entrepreneurs’ associations, knowledge institutions, consultancy and internet agencies, and other organisations that work extensively with entrepreneurs. The knowledge and skills of all these parties are needed to flesh out this vision all the way to the local level. At a national level, we need to set up a number of things in a sustainable way. That’s what this vision is about: how we, as a hospitality domain, are preparing for the future.
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