The Impact of Technology on Tourism Sector
Discuss about the Impacts of Megatrends on Tourism for Climate Change.
The word of business is changing at an unprecedented rate. These changes are extended through business operations, the people who are served by these businesses, the economy and cultures hence shaping the future of global and local markets (Lee 2017, p. 146). Megatrends are the forces behind these changes and so the study of opportunities and implications of these trends helps to understand how the world is changing. Megatrends can be defined as universal and macroeconomic changes of growth that influence how businesses work, society, personal lives, and the economy in the sense that these changes are expected to change future markets and the whole world (Smith 2009, p. 217). This means that a company that understands these megatrends can set future strategies, plan for innovations, and set clear goals that will ensure future success. Companies that embrace these changes are likely to succeed in the long run and those that slow to adapt are stuck in the past and lose in this innovative world. As these megatrends continue to transform the world markets, new business opportunities are created and thus entrepreneurs get a chance to create innovative products and ventures to close the gap in the market (Olsmats & Kaivo-oja 2014, p. 104). This report explores four significant megatrends that are changing the future of tourism industry and indeed the world
The tourism sector is one of the industries that have undergone significant changes over the last few decades. As the world population continues to grow at an alarming rate and new technologies come into practice in this sector, the tourism industry is beginning to undergo some significant shifts and is likely to continue in future, especially if the population growth in the developing nations remains unchecked (Hou Wee 2017, p. 54). All these changes are expected to transform the tourism industry positively and create new business opportunities for entrepreneurs.
The most significant development in the tourism sector is the use of new technology in tourist experience and planning. Technology has brought with it changes in tourists plan and travel experience where people are using digital platforms to share their travel experiences and tourism plans(Hou Wee 2017, p. 116). The emergence of social media platforms such as Facebook and Twitter has facilitated travel and communication whereby people can share information about tourism destinations with family and friends. Websites such as Trivago.com, Agoda.com, and expedia.com, are accessible by people all over the world for all travel information. People are also using the internet to search the best tourism destinations anywhere in the world (Jayawardena et al. 2013, p.163). As people travel to new places every day, they no longer to rely on travel experts for information whereas they can find any info they want from the internet. At this rate where majority people in the world have access to the internet, things are changing at a very high speed and consequently, the tourism face is experiencing radical shifts in some sectors including and not limited to hotel bookings, guided tour packages, car hires and travel arrangements.
Population Growth and Demographics
Technology is also impacting the sector in that it has made work efficient through automation of work processes whereby tourists can make bookings online and get immediate feedback. Advanced communication systems are also changing the tourism industry and these impacts are felt in the changing workforce (Farmaki, Georgiou & Christou 2017, p. 502). All these developments have presented new business opportunities for entrepreneurs who seek to establish operations and ventures to counter the increasing travel needs. Entrepreneurs are recognizing the value of tourism and many are investing in tourist sites using Facebook pages and websites where customers can have access to a wide range of services. However, due to mushrooming of these tourist Facebook pages and sites, competition has increased and these entrepreneurs may be forced to collaborate with other investors in future to create a platform for a wider range of services (Baka 2016, p. 67). This means that customers can have a one-stop portal whereby they will be able to access all the necessary information they need at once. However, for the stakeholders and governments where tourism is a thriving business, this megatrend poses challenges for the establishment of operations and strategies to ensure that they benefit from these changes in future (Boros, Martyin & Pál 2013, p.114)
In the recent past, the world population has been growing at an alarming rate. According to the report of 2015 from the World Bank, the world’s population stands at 7.9 billion although it is expected to rise to 9.7 billion by the end of 2050. Researchers suggest that the population will continue to grow at a slower rate compared to how it was in the past and the highest growth will be experienced in the developing country (Deodhar 2013, p.132). Population growth combined with other demographic factors such as levels of education, income rate, age gap and emerging economies, are expected to increase the demand for tourism activities. Improved levels of education, more income, and population growth means that the need for travel will continue to rise and in future, the tourism industry will be forced to expand to accommodate all these people (Nicholls 2013, p. 179). The population of older generation between 50 and 60 years is expected to double in the coming years and this is an indication that the demand for services and facilities to cater for all these people will be needed.
On the other hand, the generation of young people better known as Millennials or generation Z is multiplying and according to Cockerell (2009) the tourism sector will be dominated by these young people by 2040. This means that in few years to come, people will have different preferences in terms of travel services and thus, there is a market gap in the industry which requires entrepreneurs to develop new ideas to cater for demands and expectations of tourists. For example, entrepreneurs can develop modern hotels near tourist attraction sites with special facilities to cater for the elderly such as staircases accessible by people using wheelchairs. Additionally, these hotels can be connected to the internet for young travelers who are so much addicted to the internet (Ramos & Rodrigues 2015, p.17).
Travel Mobility and Transport Systems
Another significant change that has changed the tourism industry is travel mobility. The success of tourism market highly depends on the transport systems because it facilitates the movement of visitors to their destinations (Park 2014, p. 138). Accessibility, capacity, and location of transport systems enhance the connectivity of visitors with their destinations. Currently, the world transport system can be termed to be fast and effective in the sense that people can travel from one continent to another within hours courtesy of air transport. Travel regulations from one country to another are minimal recently making traveling easier than it was in the past. Besides, safety and security in the international transportations systems have been improved to ensure that visitors reach their destinations safely (Nicholls 2013, p. 186). Therefore, this megatrend is changing the tourism market and at the same time, presenting new business opportunities for innovators who would wish to get income from this sector. For instance, visitors need transport services from the airport to their destinations or rather in hotels where they are accommodated. It means that entrepreneurs need to offers taxi services for all the tourists. It is expected that over the next 30 years, movement of people will be affected by both external and internal factors such as travel innovations, security and safety concerns, immigration policies, and, increased number of visitors amongst others. Given that all these factors are put into consideration, policy makers and entrepreneurship must be agile to ensure that they take advantage of these developments for their own benefit and those of the customers that they serve (Reddy, Nica & Wilkes 2012, p. 335).
The issue of climate change and environmental pollution has been a matter of great concern in the recent past from all nations of the world. According to research, global warming is caused by harmful gases such as carbon dioxide. Recent natural disasters, climate change, and rising earth temperature are as a result of the destruction of the ozone layer by these harmful gases (Baka 2016, p. 159). Of all sectors, tourism is one of the industries that contribute to pollution through environmental degradation, water and land pollution, and unstable food consumption. The issue of global warming and climate change is an expensive one to deal with as many nations especially the western countries spend billions of dollars every year to mitigate the results of global warming (Buhalis &Costa 2006, p. 93). Governments, non-governmental organizations, and businesses are now aware of effects of pollution on earth and future generations and as a result, much is being done to reduce pollution and mitigate the effects of climate change. Tourism as an industry is also contributing to the fight against pollution by changing production patterns and controlling consumption levels. As an industry that is concerned about the future state of the world, tourism has the potential to change its operations towards low-carbon production processes. All these climate changes and environmental awareness scenarios present opportunities for business entrepreneurs who can use their innovations to create awareness about the need of having pollution free environment (Smith 2009, p.511).
- To investigate the impacts of megatrends on the tourism sector
- To find out which business opportunities arise in the tourism sector as a result of impacts of these megatrends
- To study how entrepreneurs can use the emerging merger trends to create new products or services in the tourism industry
- To investigate what the stakeholders in tourism market and entrepreneurs are doing to benefit from these megatrends
Climate Change and Environmental Awareness
Data for this report was obtained using both quantitative and qualitative research methods. The qualitative study aims to answer the question why and how a decision was made by gathering in-depth information about behaviors of the parties involved. On the other hand, quantitative research is used to quantify a problem using numerical data. Using these two research methods, this report examined the available information concerning the impacts of megatrends on the tourism industry and the opportunities arising in this sector due to these impacts. Interviews and questionnaires were used to collect data involving a sample size of thirty people who included tourists and employees who work in the tourism industry.
From the data obtained during the research, tourism market is changing due to megatrends which are affecting the global markets. These megatrends have given business entrepreneurs new business opportunities such as building of modern hotels near tourist attraction sites and development of tourist guide websites. All these changes mean that it is just a matter of time before this sector is completely changed for good.
It is recommended that for business entrepreneurs to fully utilize the opportunities arising from the impacts of megatrends on the tourism sector, they must recognize the value of tourism first. They can use new ideas to develop new products and services to fill market gaps arising from these opportunities. It would also be appropriate for entrepreneurs to be on the look-out for new opportunities posed by these emerging issues. Lastly, it is recommendable for stakeholders and the governments to develop plans and strategies that will help ensure that these changes benefit the people and the world in general.
Conclusion
In conclusion, it is evident from the discussion that the four megatrends favor entrepreneurs in one way or the other. In essence, it is likely that these emerging trends will benefit more people in future.
References
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Boros, L., Martyin, Z. and Pál, V. 2013. Industrial tourism – trends and opportunities. Forum geografic, XII(1), pp.108-114.
Buhalis, D. and Costa, C. 2006. Tourism business frontiers. Amsterdam: Elsevier Butterworth-Heinemann.
Cockerell, N. 2009. Regional Tourism Trends and Future Prospects. Tourism and Hospitality Research, 2(1), pp.80-84.
Deodhar, N. 2013. Population Growth – Fertility, Health, and Poverty. World Health & Population, 3(2).
Farmaki, A., Georgiou, M. and Christou, P. 2017. Growth and Impacts of All-Inclusive Holiday Packages: Echoes from the Industry. Tourism Planning & Development, 14(4), pp.483-502.
Hou Wee, C. 2017. Emerging Trends in Tourism: Opportunities, Challenges and Implications. Journal of Tourism & Hospitality, 06(06).
Jayawardena, C., McMillan, D., Pantin, D., Taller, M. and Willie, P. 2013. Trends in the international hotel industry. Worldwide Hospitality and Tourism Themes, 5(2), pp.151-163.
Lee, P. 2017. TrainTraining and Development Trends in the Hospitality Industry- Evidence from Hospitality Management Journalsing and Development Trends in the Hospitality Industry- Evidence from Hospitality Management Journals. Journal of Tourism Research & Hospitality, 06(02).
Nicholls, S. 2013. Not So Different After All: Tourism Industry Members’ Opinions Regarding Recent and Future Tourism Issues. Tourism Analysis, 18(6), pp.731-735.
Olsmats, C. and Kaivo-oja, J. 2014. European packaging industry foresight study—identifying global drivers and driven packaging industry implications of the global megatrends. European Journal of Futures Research, 2(1).
Park, M. 2014. Leadership 2030: The Six Megatrends You Need to Understand to Lead Your Company into the Future. The Journal of Applied Management and Entrepreneurship, 19(2), pp.137-139.
Ramos, C., Rodrigues, P. and Rodrigues, J. 2015. Opportunities, Emerging Features, and Trends in Electronic Distribution in Tourism. International Journal of Information Systems and Social Change, 6(4), pp.17-32.
Reddy, M., Nica, M. and Wilkes, K. 2012. Space tourism: Research recommendations for the future of the industry and perspectives of potential participants. Tourism Management, 33(5), pp.1093-1102.
Smith, W. 2009. The Tourism and Leisure Industry: Shaping the Future. Annals of Tourism Research, 32(2), pp.510-511.
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