Technology as a Strategic Factor in the Competitiveness of Tourism Businesses

From the emergence of the Internet as a widely used tool, the first travel portals, and the development of GDSs in the 1990s, through search engines and online booking systems in the early 2000s, to the widespread adoption of smartphones starting in the 2010s, technology has set key benchmarks in how different tourism stakeholders interact with one another to enhance the travel experience. Not to mention everything that lies ahead with tools such as artificial intelligence, virtual reality, biometrics, and green technology, among others. Everything, in some way, converging and reorganizing itself according to the needs driven by demand or the possibilities offered by new advancements.

In this constant state of change we find ourselves in, it has become increasingly difficult to live outside the system; so if anyone had any hope of doing so, I’m afraid I can’t be very optimistic on that front. Tourism is arguably one of the most dynamic and proactive sectors—alongside others such as the military, the video game industry, and the energy sector—so the market is accelerating, and it’s “every man for himself.” The only option is to educate ourselves, take advantage of the opportunities the market offers, and bring out the best in each of us in the name of efficiency.

What are the main benefits that technology offers a tourism business?

If we focus purely on technology, the rules of the game are constantly being redefined around the following benefits, which I outline below in relation to tourism and, in fact, virtually all sectors:

• Process optimization: Task automation and process digitization enable tourism companies to reduce costs, streamline operations, and improve efficiency.
• Improved user experience: Technology tools make it easier to personalize offerings, manage reservations, facilitate online check-in, provide customer service, and collect feedback.
• Greater visibility and reach: Digital channels such as social media and search engines enable tourism businesses to reach a wider and more diverse audience.
• Data-driven decision-making: Data analytics enables tourism companies to gain valuable insights into customer behavior, identify trends, and make more informed strategic decisions.
• Innovation and differentiation: The adoption of new technologies enables tourism companies to develop innovative products and services that set them apart from the competition.

How can technological innovation be applied to the tourism industry today?

As part of the training provided by CEIN, we have analyzed various projects in which technology plays a significant role in optimizing different processes. Among the needs identified, we see a key area of focus in the implementation of a series of technologies and initiatives that would be crucial to consider as we continue to work toward a model of continuous improvement:

• Development of professional websites with valuable content that fully supports the project’s business model: Having a website that is synchronized in real time with the business concept is a fundamental requirement for any tourism project, and even more so for businesses that are committed to building brand visibility through their own channel.
• Technology for managing and distributing tourist accommodations: Technology that enables the synchronization of the distribution of accommodations, tourist services, and activities is essential for streamlining booking processes and enhancing the traveler’s digital experience.
• Gaining visibility by adding value to the market: Visibility is a “reward” given to those who put their knowledge at the service of others, addressing very specific needs. That is why it is important to capture the market’s attention in a way that is clear and aligned with the business model.
• Continuous measurement of results from the outset: It is essential to track the decisions we make and analyze the results. You can’t learn from what you don’t measure, so it’s important to continuously analyze what’s happening in our business in a clear and understandable way so we can keep improving.
• The fastest route doesn't necessarily have to rely entirely on organic visibility: In many cases, traditional marketing will simplify the sales process, especially in B2B markets, where intermediaries serve as a link to the destination or the market.
• A brand and trust in it do not develop spontaneously: It is essential to maintain a strong market presence in order to instill confidence in both customers and other market players.

The solution lies in harnessing our potential and combining it with the possibilities offered by technology—that is the path forward. These tools are excellent “traveling” companions, and now, more than ever, they are key drivers of competitiveness. Businesses that know how to effectively partner with the best tools will be the ones with the most efficient processes, making decisions based on reality and automating mechanical processes that do not require human intervention. We are all on a learning journey, and those who do their part will continue to be rewarded in one way or another.

Author: Andrés Romero

Ph.D. in Tourism and CEO of the digital marketing agency Asiri Marketing