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Impact of Emerging Travel Technologies, Mobile Apps and Mobile Wallets on Tourism Industry

We are heading towards a digital era where everything is controlled and optimized by information technology. Lately, technology has made a significant impact on every industry. Tourism industry is no exception. Slowly and steadily, technology has taken the tourism industry under its grip. Unlike earlier, now we have several online portals that assist us to make our travel decisions. Whether it is a family holiday or a business trip, online services is the one-stop solution for all travel need. And why not! It is easy, convenient and quick. Moreover the occasional promotional offer on online booking is the icing on the cake. But have you ever wonder what makes online booking so much user-friendly and convenient. The answer is Travel Technology!!!

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Travel Technologies

Travel Technologies

What is Travel Technology?

Also called as tourism technology, travel technology is defined as the application of IT (information technology) to resolve travel industry business problems. Last two decade has witness a major impact of technology on the tourism business. This advancement catalyzes the growth of travel industry in a progressive manner and brought major changes in the tourism sector. The key changes that tourism industry has witnessed after the influence of information technology are reduction in manual task, less operation cost, improved operational efficiency, and better penetration to the target market.

Current Market

According to a report, online travel sales has reached up to 550 billion dollar (approx.) in 2014 and still growing over 12% every year. Travel industry wouldn’t have reached this position without the intervention of information technology and travel software. And this remarkable growth is only seen in online travel business. Though offline travel business also exists along with the online travel business, it is losing its shine in the market. Basically, offline travel business is overshadowed by the online counterpart. The widespread use of internet has resulted in this situation. Here internet is the game changer. Travel companies that have switched to online businesses are basking in the glory of success. The offline businesses are slow fading away. Nevertheless, they still exist in the market.

Travel Industry Technology

Travel Industry Technology

Tourism industry has evolved a lot with the advent of innovative and intuitive travel portal technologies. Currently, travel technologies are revolutionizing the travel industry with its path-breaking products and services. Some of them are described below:

Travel technologies that are reshaping the travel businesses:

Global Distribution System (GDS)

Online travel business runs on Global Distribution System (GDS). Previously, only aviation industry was using Computer Reservation System (CRS) to save and restore travel information associated with transactions. This technology was developed by airlines to make the booking process quick and easy. But as the technology become successful, other industries also followed the suit. The Computer Reservation System (CRS) is updated with new features and took the shape of modern day GDS. This system helps to interconnect airlines, hotels, travel agents, car rental companies and cruise liners etc. It helps to generate a massive database based on customer specific products and services. Some of the main GDSs are Amadeus, Galileo, Sabre and World span, with a market share of 31%, 26%, 30% and 12% respectively.

Internet Booking Engine (IBE)

Internet Booking Engine (IBE) is another important technological breakthrough in the travel and tourism sector. It is nothing but the online reservation system that makes hotels, airlines, car, and cruise booking process simpler and easier. It further makes the booking process smooth and hassle free unlike manual booking system. It enables the consumers to view the ticket and availability details. Consumers can also get the confirmation of the online reservation through IBE. Additionally, it helps companies to maintain a record of their customers which are used in further to send marketing emails and royalty bonus.

Internet booking engine offers a common platform for several XMLs / API and GDS connectivity which are incorporated for booking every kind of travel service including hotels, flights, cars, buses, trains, and cruises.

Content Management System

Content Management System (CMS) is also an important technology that has hugely impacted the travel and tourism industry. An expressive website is ardently required to flourish and grow in the competitive travel industry. CMS helps the travel companies to achieve this by providing a central control over all the data, content and information. Any information can be added, deleted or updated easily and quickly using CMS. It further enables the companies to monitor the performance of their website with a dashboard of web analytics, tracking and reporting including real-time information.

Mobile Travel Technology

Mobile travel technology is the most expensive gift of technology to travel and tourism industry. Consumers are switching to mobile devices and so is the travel industry. Now we have number of apps for everything including travel apps. These apps help customers in every step of their journey from planning a trip to ticket booking, hotel booking, searching nearby eateries and shopping place and many more. Companies are equally benefited by mobile apps as their websites become SEO friendly with the latest Google’s ‘mobile-friendly’ ranking system.

How is growth of travel technology and portal software in Iran, Iraq and ME region?

ATM 2016 has been an alibi for growth of travel technology in middle east and African region. They have adopted to travel technology solutions in a great way and that’s why the growth has been great. Travel companies in middle east are partnering with global travel technology companies to set best in class travel ticketing systems while integrating top APIs in travel domain.


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