| Abstract: |
A 2019 Organization for Economic Cooperation and Development (OECD) report on
the future of tourism highlighted changes in travel demand and supply due to
technological advances as important trends shaping the future of tourism. The
report stressed the need for suppliers in the industry to actively respond to
these trends, especially as technological innovations such as digital
platforms, the Internet of Things (IoT), artificial intelligence (AI), and
virtual reality (VR) are expected to change the tourism experience
significantly. Many of the report’s OECD predictions are now coming true, as
demographic change and an evolving social structure along with advances in
digital technology are now driving change on the supply side of the tourism
industry. On the demand side, we can observe increasing levels of
diversification and personalization in tourism behavior with the emergence of
new younger consumers (gen Z) and now more active seniors. There are many new
products, services, and delivery methods using AI, big data, and immersive
technologies to respond to new, more diversified demand. In particular, the
rise of online travel agencies (OTAs), coupled with the use of digital
technology, has led to the rapid spread of platform-oriented transactions.
More intensive use of digital technology and the increasingly popularity of
platform-oriented transactions have not only led to new convergence between
formerly divergent technologies and industries — spawning entirely new lines
of business in the process — they have altered the fabric of the tourism
industry ecosystem. In this article, we describe what business-to-business
(B2B) technologies are and the implications for policy carried by our
findings. Thank you for reading this abstract of a report from the Korea
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