Hospo Stories

Technology Trends in Travel and Tourism

Travel and tourism are slowly returning to pre-pandemic levels, even with the ongoing disruptions and lingering fears. As it rebuilds, the industry is seeking to capitalise on technologies that became more common – and in some cases expected – as a result of COVID, as well as to integrate new innovations in an effort to attract customers and improve business efficiency.

What are the benefits of technology in travel and tourism?

New technologies often have significant impact on the travel and tourism industries, especially when they benefit both the business and the customer. Mobile devices have only increased the speed at which this happens, with the convenience of making a booking or buying a ticket online now simply an expectation rather than an option. For this reason, there are many benefits for a travel business to keep up with the latest trends, including:

Improved Customer Experience: Technology can provide personalized assistance and ease of use for guests, which can enhance their overall experience and make it more enjoyable.

Increased Efficiency: Automating tasks and processes can lead to increased efficiency and reduced workload for staff. This is especially important now, when staff shortages are a significant issue for the industry.

Competitive Advantage: Keeping up with technology trends can give tourism businesses a competitive edge over others in the industry, by offering unique and innovative experiences to their customers.

Better Data Management: Technology can help tourism businesses manage customer data and information more effectively, which can improve customer service and help in making informed business decisions. It can also improve cybersecurity to help keep your business safe.

Enhanced Marketing: Technology can provide tourism businesses with new and innovative ways to market themselves, such as through virtual reality experiences and targeted digital advertising.

Cost Savings: Implementing technology in tourism can also lead to cost savings, such as reducing the need for paper-based processes, and by streamlining operations.

What are the technology trends in travel and tourism for 2023?

As they return to travel, people are looking for safe, convenient and personalised experiences. Many of this year’s trends meet these requirements while also enhancing or improving business practices and opportunities.

Contactless Payments
Already common in some places as a matter of convenience, contactless payments really took off during the pandemic. Minimising touch and cash handling is still preferred by many as tourism returns; meanwhile, most of us have gotten used to the increased ease and speed with which payments can be made.

Chatbots
Chatbots are becoming increasingly common in the hospitality and tourism industries; if you are going to make only one investment in technology, this is a smart option. Chatbots are available 24/7 and offer swift answers to common questions, freeing up your staff to handle the bigger things while still providing the service your customers expect.

Robots
Robotics technology is constantly improving, and is seeing an increasing number of uses in the travel and tourism industry. From concierge services, cleaning and luggage handling in hotels to food service and preparation in restaurants, it is becoming more common to see robots in use in a variety of ways.  Airports and other locations are also using them as part of security protocols, with some able to detect hidden weapons and others acting as roving CCTV stations.

Internet of Things (IoT)
IoT allows internet connectivity between everyday devices, allowing them to both send and receive data. This can be utilised in a variety of ways to improve the customer experience, from controlling lights, curtains and more on a device in your hotel room to being alerted when your luggage is arriving on the carousel in the airport. Businesses can also use it to improve operational efficiencies, with alerts for when maintenance is required or automated adjustments to lighting and heating levels based on current conditions.

Voice Search
Smart devices and AI have increased the usage and relevance of voice technology in the travel industry. Customers may use voice search to find and make bookings for tickets, accommodation and experiences, so it is important to have a website designed with this in mind. In combination with the IoT, it can also be used to control settings in hotel rooms or offer information without the need to speak to a member of staff.

Artificial Intelligence (AI)
Though chatbots are the most common use of AI in travel and tourism, there are other applications that can be implemented to help make your business more efficient. It can be used to sort through data, draw conclusions about performance and trends and manage inventories – and the possibilities are likely to grow as the technology improves.

Big Data
Data collection has become inescapable, and most successful businesses employ it in some manner. Data can be used to personalise experiences, analyse business performance and create or adjust strategies and offers.

Cybersecurity
With the abundance of both customer and staff data, travel companies are a prime target of cyber-attacks. It is important to stay on top of data protection laws and regulations and to invest in both technology solutions and employee training in order to minimise your business’s risk.

Recognition Technology
Familiar to most of us from passing through customs or simply unlocking our smartphone, biometric technology has the potential to expand in the travel industry due to its ability to create more seamless interactions and experiences. Think opening your hotel room with your fingerprint, or paying for a meal simply by walking through an exit with facial recognition.

Virtual and Augmented Reality (VR/AR)
VR and AR are being used to create immersive experiences for tourists and to showcase destinations in a new and innovative way. VR allows potential travellers to take virtual tours and check out locations and activities, which may be the deciding factor in whether they complete the booking.  AR, meanwhile, augments a customer’s real surroundings. Requiring only a smartphone or tablet with internet access, AR can be used for information – details on a piece of art when the travellers points their phone at it, for example – or purely for entertainment by creating filters and effects.

Metaverse
Taking VR and AR one step further, the metaverse allows users to not only enter a virtual environment but to interact with others while there. Though in its early days, the technology has the potential to enhance the travel and tourism industries, from allowing a potential customer to ‘try out’ an experience or speak with staff during a virtual tour to offering people unable to physically travel a way to explore the world.  The metaverse also offers a new virtual venue option for meetings, conferences and exhibitions.

Blockchain Technology
Though NFT art and related marketing strategies are the most well-known use, blockchain technology can also be used for secure payments and for managing customer loyalty programs, as well as to store travel-related data securely. It is likely that use of the technology will become more widespread as understanding and awareness of the possibilities expand.

Though it can be challenging, keeping up with trends and innovations can provide numerous benefits, including improved customer experience, increased efficiency, and cost savings. By embracing technology, travel and tourism businesses can remain relevant, competitive and successful in today's ever-changing market.