6
International Journ Internat ISSN No INTERNA IT Organised By: V @ IJTSRD | Available Online @ www Digital Transform Assistant Professor, Affiliated to Sh ABSTRACT Digital innovation is transforming the work and run businesses it has glob economies, sectors and indu commencement of the Digital India p 2014 led the country into the League of revamping their economies and govern power of technology. Since then, Dig affected almost all aspects of our lives, work, travel, communication to shoppi and healthcare. India is going to be dig and tourism are no exceptions to it. I ranked 51st out of 63 countries in th World Digital Competitiveness ranking today plays a vital role in shaping the tr With the increase in internet pen availability of smart phones India’s Tra expanded in the recent years. Amon sectors in India, the tourism and hospi has emerged as one of the major drive The rich cultural and historical inherita flora and fauna and places of natural across the country has enriched Tourism advancements in the travel space mov themes, namely Artificial Intelligence (A mobile applications, social Virtual/Augmented Reality (VR/A advancements could enrich travel experi direct and flexible interactions with cu paper attempts to explore a broad economic contribution of travel in challenges and consequences of digital t of new technologies and automation in the business processes across the value canvassing picture of digital trav unfolding. nal of Trend in Scientific Research and De tional Open Access Journal | www.ijtsr o: 2456 - 6470 | Conference Issue – ICDE ATIONAL CONFERENCE ON DIGITAL ECON TS IMPACT ON BUSINESS AND INDUSTRY V. P. Institute of Management Studies & Re w.ijtsrd.com | Conference Issue: ICDEBI-2018 | mation of Travel & Tourism In Dr. R. A. Rathi , V. P. Institute of Management Studies & Resea Sangli, Maharashtra, India hivaji University, Kolhapur, Maharashtra, India way we live, bal impact on ustries. The programme in Nations that is nance with the gital India has , ranging from ing, education gital and travel India has been he 2017 IMD g. Technology travel industry. netration and avel sector has ng the service itality industry ers of growth. ance variety in beauty spread m in India. Key ve around five (AI), Big Data, media and AR). These iences through ustomers. This view on the India, trends, travel, the role n streamlining e chain thereby vel revolution KEYWORDS: Artificial Intel Digital innovation, So Virtual/Augmented Reality (VR 1. INTRODUCTION Travel and tourism is amo provider industry in India. historical inheritance variety places of natural beauty sprea enriched Tourism in India. develop and promote tourism India as a tourist centric destin present tourism products. Tou employment generator in accommodations, transportat information offices photograp source of foreign exchange in tourism SHRI. K. J. ALPHON from foreign exchange in to more than 17 per cent in Apri Tourism has provided emplo people in 2017 contributi employment opportunities gen It is among the top 10 secto Foreign Direct Investment (F December 2017, the hotel and around US$ 10.90 billion of F 2. OBJECTIVE OF THE S 1. To understand the econ Indian tourism industry. 2. To study digital transforma 3. To study tools and technol 4. To study challenges and travel in India. evelopment (IJTSRD) rd.com EBI-2018 NOMY AND Y esearch, Sangli Oct 2018 Page: 64 n India arch, lligence (AI), Big Data, ocial media and R/AR). ong the largest service The rich cultural and in flora and fauna and ad across the country has . This sector aims to m, retain the image of nation and expanding the urism in India is a great different areas like tion, attractions sites, phy etc. It is a significant n India. The minister of NS said that the Earnings ourism have grown by il 2018 over April 2017. oyment to 41.6 million ing 8% of the total nerated in India in 2017. ors to attract the highest FDI). From April 2000- d tourism sector attracted FDI. STUDY nomic contribution of ation in travel. logy for digital travel. way forward for digital

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Page 1: 13 Digital Transformation of Travel & Tourism in India fileAffiliated to Shivaji University, Kolhapur ABSTRACT Digital innovation is transforming the way we live, work and run businesses

International Journal of Trend in

International Open Access Journal

ISSN No: 2456

INTERNATIONAL CON

ITS IMPACT ON BUSINESS AND

Organised By: V. P. Institute of Management Studies & Research, Sangli

@ IJTSRD | Available Online @ www.ijtsrd.com

Digital Transformation

Assistant Professor,

Affiliated to Shivaji University, Kolhapur

ABSTRACT Digital innovation is transforming the way we live, work and run businesses it has global impact on economies, sectors and industries. The commencement of the Digital India programme in 2014 led the country into the League of Nations that is revamping their economies and governance with the power of technology. Since then, Digital India has affected almost all aspects of our lives, ranging from work, travel, communication to shopping, education and healthcare. India is going to be digital and travel and tourism are no exceptions to it. India has been ranked 51st out of 63 countries in the 2017 IMD World Digital Competitiveness ranking. Technology today plays a vital role in shaping the travel industry. With the increase in internet penetration and availability of smart phones India’s Travel sector has expanded in the recent years. Among the service sectors in India, the tourism and hospitality industry has emerged as one of the major drivers of growth. The rich cultural and historical inheritance variety in flora and fauna and places of natural beauty spread across the country has enriched Tourism in India. Key advancements in the travel space move around five themes, namely Artificial Intelligence (AI), Big Data, mobile applications, social media and Virtual/Augmented Reality (VR/AR). These advancements could enrich travel experiences through direct and flexible interactions with customers. This paper attempts to explore a broad view on the economic contribution of travel in India, trends, challenges and consequences of digital travel, the role of new technologies and automation in streamlining the business processes across the value chain thereby canvassing picture of digital travel revolution unfolding.

International Journal of Trend in Scientific Research and Development (IJTSRD)

International Open Access Journal | www.ijtsrd.com

ISSN No: 2456 - 6470 | Conference Issue – ICDEBI

INTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND

TS IMPACT ON BUSINESS AND INDUSTRY

Organised By: V. P. Institute of Management Studies & Research, Sangli

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

Digital Transformation of Travel & Tourism In

Dr. R. A. Rathi , V. P. Institute of Management Studies & Research

Sangli, Maharashtra, India Affiliated to Shivaji University, Kolhapur, Maharashtra, India

Digital innovation is transforming the way we live, work and run businesses it has global impact on economies, sectors and industries. The commencement of the Digital India programme in

eague of Nations that is revamping their economies and governance with the power of technology. Since then, Digital India has affected almost all aspects of our lives, ranging from work, travel, communication to shopping, education

going to be digital and travel and tourism are no exceptions to it. India has been ranked 51st out of 63 countries in the 2017 IMD World Digital Competitiveness ranking. Technology today plays a vital role in shaping the travel industry.

in internet penetration and availability of smart phones India’s Travel sector has expanded in the recent years. Among the service sectors in India, the tourism and hospitality industry has emerged as one of the major drivers of growth.

and historical inheritance variety in flora and fauna and places of natural beauty spread across the country has enriched Tourism in India. Key advancements in the travel space move around five themes, namely Artificial Intelligence (AI), Big Data,

applications, social media and Virtual/Augmented Reality (VR/AR). These advancements could enrich travel experiences through direct and flexible interactions with customers. This paper attempts to explore a broad view on the

in India, trends, challenges and consequences of digital travel, the role of new technologies and automation in streamlining the business processes across the value chain thereby canvassing picture of digital travel revolution

KEYWORDS: Artificial Intelligence (AI), Big Data, Digital innovation, Social media and Virtual/Augmented Reality (VR/AR). 1. INTRODUCTION Travel and tourism is among the largest service provider industry in India. The rich cultural and historical inheritance variety in flora and fauna and places of natural beauty spread across the country has enriched Tourism in India.develop and promote tourism, retain the image of India as a tourist centric destination and expanding the present tourism products. Tourism in India is a great employment generator in different areas like accommodations, transportation, attractions sites, information offices photography etc. It is a significant source of foreign exchange in India. The tourism SHRI. K. J. ALPHONS said from foreign exchange in tourism have grown by more than 17 per cent in April 2018 over April 2017. Tourism has provided employment to 41.6 million people in 2017 contributing 8% of the total employment opportunities generated in India in 2017. It is among the top 10 sectors to attract the highest Foreign Direct Investment (FDI). From April 2000December 2017, the hotel and tourism sector attracted around US$ 10.90 billion of FDI. 2. OBJECTIVE OF THE STUDY1. To understand the economic contribution of

Indian tourism industry. 2. To study digital transformation in travel.3. To study tools and technology4. To study challenges and way forward for digital

travel in India.

Research and Development (IJTSRD)

www.ijtsrd.com

ICDEBI-2018

FERENCE ON DIGITAL ECONOMY AND

INDUSTRY

Organised By: V. P. Institute of Management Studies & Research, Sangli

| Oct 2018 Page: 64

n India

Research,

Artificial Intelligence (AI), Big Data, Digital innovation, Social media and Virtual/Augmented Reality (VR/AR).

Travel and tourism is among the largest service provider industry in India. The rich cultural and historical inheritance variety in flora and fauna and places of natural beauty spread across the country has

. This sector aims to velop and promote tourism, retain the image of

India as a tourist centric destination and expanding the present tourism products. Tourism in India is a great employment generator in different areas like accommodations, transportation, attractions sites,

formation offices photography etc. It is a significant source of foreign exchange in India. The minister of

J. ALPHONS said that the Earnings from foreign exchange in tourism have grown by more than 17 per cent in April 2018 over April 2017. Tourism has provided employment to 41.6 million people in 2017 contributing 8% of the total employment opportunities generated in India in 2017. t is among the top 10 sectors to attract the highest

Foreign Direct Investment (FDI). From April 2000-December 2017, the hotel and tourism sector attracted around US$ 10.90 billion of FDI.

OBJECTIVE OF THE STUDY To understand the economic contribution of

To study digital transformation in travel. To study tools and technology for digital travel. To study challenges and way forward for digital

Page 2: 13 Digital Transformation of Travel & Tourism in India fileAffiliated to Shivaji University, Kolhapur ABSTRACT Digital innovation is transforming the way we live, work and run businesses

International Journal of Trend in Scientific Research and

@ IJTSRD | Available Online @ www.ijtsrd.com

3.1. DEFINING THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISOne of the important economic activitieshas significant direct economic as well as indirect and induced impact. The following diagram shows the economic contribution of travel & tourism

Source: https://www.wttc.org/- Direct contribution to GDP GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as accommodation services, food and beverages services, retail trade and cultural sports and recreational services that deal directly with tourists. It is equal to total internal Travel & Tourism within a country deducted by the purchases made by those industries (including imports). Direct spending impacts VISITOR EXPORTS It includes expenditurethe country by foreign tourists for both business and leisure trips, spending on transport, but does not include international spending on education. Domestic travel & tourism spending It is spending within a country by that country’s residents for both business and leisure trips. It

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

DEFINING THE ECONOMIC CONTRIBUTION OF TRAVEL & TOURISM

activities in most countries around the world is Travel & Tourism., The industry has significant direct economic as well as indirect and induced impact. The following diagram shows the economic contribution of travel & tourism.

-/media/files/reports/economic-impact-research/countries

GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as accommodation services, food and beverages services, retail trade and cultural sports and

l services that deal directly with tourists. It is equal to total internal Travel & Tourism spending, within a country deducted by the purchases made by

VISITOR EXPORTS It includes expenditure within the country by foreign tourists for both business and leisure trips, spending on transport, but does not include international spending on education.

It is spending within a country by that country’s residents for both business and leisure trips. It

excludes multi-use consumer durables as they are not purchased only for tourism purposes. Government individual spending It is expenditure by the governmTourism services directly provided to visitors, such as cultural services (eg museums) or recreational services (eg national parks). Internal tourism consumption It is the total revenue generated within a country from visitor exports, domestic spending and government individual spending by industries that deal directly with tourists. It excludes spending abroad by residents. Business travel & tourism spending It is expenditure on business travel within a country by residents and foreign visitors. Leisure travel & tourism spending

Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 2233

M in most countries around the world is Travel & Tourism., The industry

has significant direct economic as well as indirect and induced impact. The following diagram shows the

research/countries-2018use consumer durables as they are not

purchased only for tourism purposes.

Government individual spending It is expenditure by the government on Travel & Tourism services directly provided to visitors, such as cultural services (eg museums) or recreational

Internal tourism consumption It is the total revenue generated within a country from

estic spending and government individual spending by industries that deal directly with tourists. It excludes spending abroad by

Business travel & tourism spending It is expenditure on business travel within a country

visitors.

travel & tourism spending

Page 3: 13 Digital Transformation of Travel & Tourism in India fileAffiliated to Shivaji University, Kolhapur ABSTRACT Digital innovation is transforming the way we live, work and run businesses

International Journal of Trend in Scientific Research and

@ IJTSRD | Available Online @ www.ijtsrd.com

It is expenditure on leisure travel within a country by residents and non resident visitors Direct contribution to employment It is the number of direct jobs within Travel & Tourism industry. Total contribution to employment It comprises of the number of jobs generated directly in the Travel & Tourism sector plus the indirect and induced contributions Indirect and induced impacts Indirect contribution The following three factors are contributors to GDP and jobs: � Capital investment: It comprises

investment by all industries directly involved in Travel & Tourism. This also constitutes

The following table and graph presents the total contribution of travel & tourism to GDP

INDIA (INRbn, real 2017 prices)

2012

Direct 4,149.8Indirect 5,255.7Induced 1,207.6

Source: TRAVEL & TOURISM ECONOMIC IMPACT 2018

Figure: Graph showing total contribution of

The above table and graph shows the direct, indirect and induced contribution of travel & tourism to GDP from 2012 to 2017, 2018E and 2028F. The graph shows a continuous rising trend indicating a bright prospect for the industry. Further the following diagram gives the breakdown of travel & tourism’s contribution to GDP and Employment 2017.

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

It is expenditure on leisure travel within a country by

It is the number of direct jobs within Travel &

It comprises of the number of jobs generated directly in the Travel & Tourism sector plus the indirect and

The following three factors are contributors to GDP

: It comprises of capital all industries directly involved in

Travel & Tourism. This also constitutes

investment expenditure byparticular tourism resources such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for explicit tourism use.

� Government collective spendingGovernment expenditure foractivity. This comprises regional and local government spending. For example, it includes visitor information services, administrative services, tourism promotion and other public services.

� Supply-chain effects: It domestic goods and services directly by different industries within Travel & Tourism as inputs to their final tourism output.

Induced contribution The expenditure by those who are directly or indirectly employed by Travel & Tourism.

The following table and graph presents the total contribution of travel & tourism to GDP

2012 2013 2014 2015 2016 2017

4,149.8 4,413.1 4,736.9 5,181.2 5,676.6 5,943.35,255.7 5,589.1 5,999.2 6,561.9 7,189.3 7,527.21,207.6 1,276.3 1,381.1 1,465.7 1,573.3 1,659.3

TRAVEL & TOURISM ECONOMIC IMPACT 2018

Figure: Graph showing total contribution of travel & tourism to GDP

The above table and graph shows the direct, indirect and induced contribution of travel & tourism to GDP from 2012 to 2017, 2018E and 2028F. The graph

continuous rising trend indicating a bright prospect for the industry. Further the following diagram gives the breakdown of travel & tourism’s contribution to GDP and Employment 2017.

Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 66

expenditure by other industries on particular tourism resources such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for explicit tourism use. Government collective spending: It is

expenditure for general tourism activity. This comprises of national as well as regional and local government spending. For

visitor information services, administrative services, tourism promotion and

: It is the purchases of domestic goods and services directly by different industries within Travel & Tourism as inputs to

The expenditure by those who are directly or indirectly employed by Travel &

The following table and graph presents the total contribution of travel & tourism to GDP

2017 2018E 2018F

5,943.3 6,392.7 12,678 7,527.2 8,096.3 16,057 1,659.3 1,771.8 3,092.1

travel & tourism to GDP

Page 4: 13 Digital Transformation of Travel & Tourism in India fileAffiliated to Shivaji University, Kolhapur ABSTRACT Digital innovation is transforming the way we live, work and run businesses

International Journal of Trend in Scientific Research and

@ IJTSRD | Available Online @ www.ijtsrd.com

The above figure shows continued and steadywith rise in Foreign Tourist Arrivals (FTAs) growth in Foreign Exchange Earnings during 2017.The key drivers for this rapid growth are growing disposable incomes and the rise of millennials as the ‘chief wage earners’, who account for 47 per cent of the working age population. Along with it, the increasing number of smart phones, Internet and technology-driven tools are acting as a catalyst for speedy digitisation of the travel and tourism sector. 3.2. DIGITAL TRANSFORMATION IN

TRAVEL The travel and hospitality sector is speedily developing with the increasing acceptance of various tools, technologies and digital platforms first and foremost to improve customer experience, build strong loyalties and run businesses efficiently. These include mobile applications, social media, Big Data analytics, artificial intelligence (AI) and machine learning, virtual reality (VR) and augmented reality (AR). Travel port which is the leading Travel Commerce Platform, published the results of a Global Survey of 11,000 people worldwide that highlights the use of digital tools when planning, booking and experiencing a journey. The main results from the global report are:� When planning a trip:

• 81% use peer to peer reviews when researching a trip

• 47% use voice search, using devices such as Amazon Echo and Google Home, when researching a trip

• Nearly 25% of over 55 year olds use a phone to research a trip

� When booking a trip: • Over 33% of travellers book their trip on a

mobile device

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

and steady growth Foreign Tourist Arrivals (FTAs) and

in Foreign Exchange Earnings during 2017. The key drivers for this rapid growth are growing disposable incomes and the rise of millennials as the ‘chief wage earners’, who account for 47 per cent of

e population. Along with it, the , Internet and

driven tools are acting as a catalyst for speedy digitisation of the travel and tourism sector.

DIGITAL TRANSFORMATION IN

sector is speedily developing with the increasing acceptance of various tools, technologies and digital platforms first and foremost to improve customer experience, build strong loyalties and run businesses efficiently. These

ocial media, Big Data analytics, artificial intelligence (AI) and machine learning, virtual reality (VR) and augmented reality

leading Travel Commerce Platform, published the results of a Global Traveller

ople worldwide that highlights the use of digital tools when planning, booking and

The main results from the global report are:

81% use peer to peer reviews when

devices such as Amazon Echo and Google Home, when

Nearly 25% of over 55 year olds use a smart

book their trip on a

• 61% avoid hotels that charge for � When on the trip:

• 70% of travellers believe that digital boarding passes make travelling

• 60% of travellers feel that a good digital experience is important when choosing an airline

• 44% of travellers rely on their their destination

� When at the destination: • Travelers use an average of 16 different

categories of apps when traveling• 75% of travelers leave reviews on review sites

Source: https://www.travelport.com/company/mediacenter/press-releases/2017-11-survey-highlights-different-digital In the same way Indian travellersfriendly having following characteristics as displayed in different research and statistics published in 2017� Most travellers go online, and 67 per cent even

use voice search while researching for a trip� 71 per cent use smart phones

booking, and 82 per cent would appreciate digital boarding passes and e-tickets f

� 87 per cent use videos and photos posted by friends as part of their travel research, and 83 per cent believe that being able to stay in touch is most important while travelling

� 85 per cent use price comparison sites to look for deals, and 58 per cent agree spending considerable time to find best price

� 91 per cent use review sites, though 52 per cent are wary of their trustworthiness

� 75 per cent choose hotels that do not charge for Wi-Fi

3.3. TOOLS AND TECHNOLOGIES FOR

DIGITAL TRAVEL The arrival of technology is promoting a change in the travel and tourism industry regarding how companies interact with customers. As a result, travel companies are adopting various technologies to improve operational efficiencies and meet customers’ expectations, according to leading data and Company, The tools and technologies that are finding major applications in the travel sector include mobile

Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 67

61% avoid hotels that charge for Wi-Fi

believe that digital boarding travelling so much easier

feel that a good digital experience is important when choosing an

rely on their smart phone at

Travelers use an average of 16 different categories of apps when traveling 75% of travelers leave reviews on review sites

https://www.travelport.com/company/media--08/travelport-global-

digital

travellers are becoming tech friendly having following characteristics as displayed

h and statistics published in 2017 Most travellers go online, and 67 per cent even use voice search while researching for a trip

smart phones for research and booking, and 82 per cent would appreciate digital

tickets for convenience 87 per cent use videos and photos posted by friends as part of their travel research, and 83 per cent believe that being able to stay in touch is most important while travelling 85 per cent use price comparison sites to look for

8 per cent agree spending considerable

91 per cent use review sites, though 52 per cent are wary of their trustworthiness 75 per cent choose hotels that do not charge for

TOOLS AND TECHNOLOGIES FOR

The arrival of technology is promoting a change in the travel and tourism industry regarding how companies interact with customers. As a result, travel companies are adopting various technologies to improve operational efficiencies and meet customers’

ctations, according to leading data and Analytics

The tools and technologies that are finding major applications in the travel sector include mobile

Page 5: 13 Digital Transformation of Travel & Tourism in India fileAffiliated to Shivaji University, Kolhapur ABSTRACT Digital innovation is transforming the way we live, work and run businesses

International Journal of Trend in Scientific Research and

@ IJTSRD | Available Online @ www.ijtsrd.com

applications, social media, Big Data analytics, AI, machine learning, VR, and AR. Mobile applications Most of the interactions with the customers arethrough the mobile. The statistics shows the number of mobile phone users in India from 2013 to 2019. In 2017 the number of mobile phone users in India is expected to rise to 730.7 million. In the same

Big Data analytics Big data analytics helps in structuredmaking. It personalises customer experience, make use of dynamic pricing and channelize marketing efforts. It helps the business inthe travel and tourism industry to take instantaneous decisions as per the varying customer demands. Artificial Intelligence AI in the form of chat bots, virtual assistants and even robots is increasingly being employed across the travel sector. In addition, machine learning makes these tools smarter over time and helps improve customer experience. For effective use of recommendation mechanism to deliver a good user experience over avenues like holiday packages, car rentals, hotels, and cruise lines, among others online travel agencies have made use of AI and ML. Virtual Reality (VR) and Augmented reality A panorama view of vacation could be obtained by VR. Augmented reality, or AR, is a digital technology, which changes a person’s perception of their physical surroundings, when viewed through a particular device. The augmented reality is similar to virtual reality, but AR does not replace the realworld environment, but supplements it by laminating it with the digital components. Augmented reality has

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

applications, social media, Big Data analytics, AI,

interactions with the customers are through the mobile. The statistics shows the number of mobile phone users in India from 2013 to 2019. In 2017 the number of mobile phone users in India is expected to rise to 730.7 million. In the same year the

number of smart phone users in India is reach 340 million and could reach almost 468 million by 2021. An OTA is a travel website that specializes in the sale of travel products to consumers.variety of travel products including flights, hotels, car rentals, cruises, activities, and packages.The following figure presents market share of OTA in India.

structured decision customer experience, make

use of dynamic pricing and channelize marketing the business in

industry to take instantaneous decisions as per the varying customer demands.

, virtual assistants and even robots is increasingly being employed across the travel sector. In addition, machine learning makes these tools smarter over time and helps improve

ctive use of recommendation mechanism to deliver a good user experience over avenues like holiday packages, car rentals, hotels, and cruise lines, among others online travel agencies have made use of AI and ML.

Virtual Reality (VR) and Augmented reality (AR) A panorama view of vacation could be obtained by

Augmented reality, or AR, is a digital person’s perception of

their physical surroundings, when viewed through a particular device. The augmented reality is similar

, but AR does not replace the real-it by laminating

ugmented reality has

become increasingly populaindustry as it enables hotels and other businesses operating in this field to develop the physical environments they are actually trying to persuade customers to visit by includingrooms. 3.4. CHALLENGES FOR DIGI

IN INDIA � Lack of enabling infrastructure

travel is highly dependent on factors such as highspeed Internet connectivity, seamless digital payment solutions and a robust regulatory and policy framework. While positive strides are made in each of these aspects, India stil considerably lags in comparison to most nations globally.

� Disintegrated payments payments include lack of integration between the payment systems of banks, mobile wallets and merchants, high cost of digital transactions and lack of facilitation of foreign currency payments.

� Threats to data security and privacy increasing digitisation in travel especially the growth of mobile wallets, Unified Payments Interface (UPI), internet banking and other such digital initiatives taken by the government risks of data security are bound to rise.

Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 68

users in India is assumed to reach 340 million and could reach almost 468 million

An OTA is a travel website that specializes in the sale of travel products to consumers. Some agencies sell a

ducts including flights, hotels, car rentals, cruises, activities, and packages.The following figure presents market share of OTA in

become increasingly popular within the travel enables hotels and other businesses

operating in this field to develop the physical environments they are actually trying to persuade

by including local sights and hotel

CHALLENGES FOR DIGITAL TRAVEL

Lack of enabling infrastructure Digitisation of travel is highly dependent on factors such as high-speed Internet connectivity, seamless digital payment solutions and a robust regulatory and policy framework. While positive strides are being made in each of these aspects, India stil considerably lags in comparison to most nations

The issues concerning payments include lack of integration between the payment systems of banks, mobile wallets and merchants, high cost of digital transactions and lack of facilitation of foreign currency payments. Threats to data security and privacy With increasing digitisation in travel especially the growth of mobile wallets, Unified Payments Interface (UPI), internet banking and other such digital initiatives taken by the government — the risks of data security are bound to rise.

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International Journal of Trend in Scientific Research and

@ IJTSRD | Available Online @ www.ijtsrd.com

3.5. WHAT IS THE WAY FORWARDWith the advent of technology, the Indian travel and hospitality sector is expected to see more of innovative solutions and services such as AR city tours, smart tourism, robots for security and housekeeping, smart luggage, radio frequency identification (RFID)/facial recognition technology to open hotel doors, driverless/self-parking cars and air taxis over the foreseeable future. With such developments at the front the government and players in the sector are expected to take certain actions goforward, which include For government � Easier identification through Aadhaar, improved

access to banking infrastructure and point(POS) machines, and availability of internet connectivity and telecommunication networks are some steps for enabling a flawless experience for travellers.

� IT literacy is a must condition for the digital services to catch up amongst the masses. Steps must be taken to introduce skills required in the direction of digital economy at early levels, particularly at schools.

� In commercial and financial transactions there is a greater risk of phishing attacks. To counter this, the Government of India can look at implementing its own General Data Protection Regulation (GDPR).

For businesses � Branded hotel chains in India are expected to

continue investing in digital technologies and platforms. Enhancing pre-booking as well as postbooking experiences would be of supreme importance.

� Loyalty would take preference for hotels, airlines as well as OTAs. India would continue to remain a price sensitive market.

� Things to do at a destination would be a noteworthy area of focus for online travel companies, especially metasearch engines, as they are venturing into it as merchants them to earn higher margins

� Direct bookings would be emphasised more by hotels and airlines.

4. CONCLUSION The government’s e-tourist visa programme continues to gain attraction, with a sharp rise in applications in October 2016. Digital Solutions enhancements are the need of the hour as it really does help the flow of

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018

AY FORWARD With the advent of technology, the Indian travel and hospitality sector is expected to see more of innovative solutions and services such as AR city tours, smart tourism, robots for security and housekeeping, smart luggage, radio frequency

ification (RFID)/facial recognition technology to parking cars and air

taxis over the foreseeable future. With such developments at the front the government and players in the sector are expected to take certain actions going

Easier identification through Aadhaar, improved access to banking infrastructure and point-of-sale (POS) machines, and availability of internet connectivity and telecommunication networks are

for enabling a flawless experience for

IT literacy is a must condition for the digital services to catch up amongst the masses. Steps must be taken to introduce skills required in the

economy at early levels,

In commercial and financial transactions there is a greater risk of phishing attacks. To counter this, the Government of India can look at implementing its own General Data Protection Regulation

India are expected to continue investing in digital technologies and

booking as well as post-booking experiences would be of supreme

Loyalty would take preference for hotels, airlines nue to remain a

Things to do at a destination would be a noteworthy area of focus for online travel companies, especially metasearch engines, as they are venturing into it as merchants — allowing

ookings would be emphasised more by

tourist visa programme continues to gain attraction, with a sharp rise in applications in October 2016. Digital Solutions enhancements are the

ally does help the flow of

travel. Globally, consumers are looking for extra value from their travel spends and in India, travelling is part of people’s ambition. The industry needs to address the evolving travel perceptions and behaviors by offering specialized services for each need. The way that tourists discover, book and organise trips is changing. In todays digital increasing pace travel agencies have to adapt to offer a seamless online experience.priorities for travel start-ups and software expertise. REFERENCES 1. Auroubindo Ganesh and Dr. Madhavi, C

Jan-June, “Impact of Tourism on Indian Economy - A Snapshot” Journal of Contemporary Research in Management, Volume-1, No.1, 2

2. Honey, Martha and Gilpin, Report, (2009), “Tourism in the Developing World -Promoting Peace and Reducing Poverty”

3. https://home.kpmg.com/.../ficcihospitality-technology-innovation

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Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 69

travel. Globally, consumers are looking for extra value from their travel spends and in India, travelling is part of people’s ambition. The industry needs to address the evolving travel perceptions and behaviors

alized services for each need. The way that tourists discover, book and organise trips is

world developing at a increasing pace travel agencies have to adapt to offer a seamless online experience. Some of the urgent

include efficiency, skill

Auroubindo Ganesh and Dr. Madhavi, C. (2007). June, “Impact of Tourism on Indian Economy

A Snapshot” Journal of Contemporary Research 1, No.1, 2 PP. 235-240.

Honey, Martha and Gilpin, Raymond, Special Report, (2009), “Tourism in the Developing

Promoting Peace and Reducing Poverty”

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htc.com/2017

/media/files/reports/economic-impact-

https://www.travelport.com/company/media-releases/2017-11-08/travelport-

different-digital