Global tourism is an economic growth engine, creating 1 in 5 new jobs and accounting for about 10% of global GDP. Since 2000, leisure travel has outpaced GDP growth by 3%. For many governments, tourism has been viewed as the key to unlocking larger national strategies, ranging from economic diversification in the United Arab Emirates and Saudi Arabia to sustainability and conservation funding in Rwanda.
Digital tourism has historically been a fragmented space, driven by small players with a personal human touch. However, in recent years, the sector has undergone substantial disruption thanks to technology innovation, modern business models and changing labor markets. Tools like GenAI are driving a rush of experimentation. The rise of online travel agents (OTAs) and online marketplaces connecting tourism operators and visitors has disrupted traditional distribution channels and challenged larger incumbents. Moreover, coming out of the COVID-19 pandemic, the industry is also facing labor shortages, spurring technology adoption to automate and optimise human-led tasks.
Digital tourism products and services will continue to grow in the coming years as travellers and consumers become increasingly tech-savvy and their expectations evolve. We see a doubling of human- and machine-generated data every two years, with connected devices exceeding the global population by 3x, creating new opportunities for tourism players. But adjusting to such rapid changes will require a critical mindset shift from human-driven to technology-enabled services.
The tourism industry needs to digitise to keep up and fend off new entrants and disruptors. It will learn that building great digital products requires strategic focus, disciplined product roadmaps, and strong digital implementation capabilities. This paper examines each of these requirements in the context of travel apps, a key digital category for the tourism sector. Insights are based on in-depth BCG research into 20 best-in-class travel and tourism organisations in the Middle East region and beyond including Global OTA (online travel agents), prominent GCC and Asian NTO (National Tourist Organisations), as well as global leading asset operators such as airlines, hotels, and entertainment theme parks.
Global tourism is an economic growth engine, creating 1 in 5 new jobs and accounting for about 10% of global GDP. Since 2000, leisure travel has outpaced GDP growth by 3%. For many governments, tourism has been viewed as the key to unlocking larger national strategies, ranging from economic diversification in the United Arab Emirates and Saudi Arabia to sustainability and conservation funding in Rwanda.
Digital tourism has historically been a fragmented space, driven by small players with a personal human touch. However, in recent years, the sector has undergone substantial disruption thanks to technology innovation, modern business models and changing labor markets. Tools like GenAI are driving a rush of experimentation. The rise of online travel agents (OTAs) and online marketplaces connecting tourism operators and visitors has disrupted traditional distribution channels and challenged larger incumbents. Moreover, coming out of the COVID-19 pandemic, the industry is also facing labor shortages, spurring technology adoption to automate and optimise human-led tasks.
Digital tourism products and services will continue to grow in the coming years as travellers and consumers become increasingly tech-savvy and their expectations evolve. We see a doubling of human- and machine-generated data every two years, with connected devices exceeding the global population by 3x, creating new opportunities for tourism players. But adjusting to such rapid changes will require a critical mindset shift from human-driven to technology-enabled services.
The tourism industry needs to digitise to keep up and fend off new entrants and disruptors. It will learn that building great digital products requires strategic focus, disciplined product roadmaps, and strong digital implementation capabilities. This paper examines each of these requirements in the context of travel apps, a key digital category for the tourism sector. Insights are based on in-depth BCG research into 20 best-in-class travel and tourism organisations in the Middle East region and beyond including Global OTA (online travel agents), prominent GCC and Asian NTO (National Tourist Organisations), as well as global leading asset operators such as airlines, hotels, and entertainment theme parks.
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