Digital transformation in travel and how it's changing tourism

The travel sector is undergoing a profound digital transformation, reshaping the ways that people explore the world, and demanding new approaches from tourism industry operators in the process. From Online Travel Agents (OTAs) to the rise of social media destination marketing, the transformative impact of digital technologies on the tourism industry has big implications for tourism professionals.

For anyone aspiring to have a career in this dynamic industry, it’s essential to make sure you’re informed about the latest tech trends and equipped with the digital skills you’ll need to thrive in your role, whatever it is.

In this article, we’ll first take a look at the four biggest digital trends in tourism today. Then, we’ll examine how standard courses in hospitality and tourism management are training students with the skills they’ll need for the digital industry.

The four biggest digital transformation trends shaping the travel and tourism industry in 2024.

1. AI and machine learning for revenue management and business analytics

AI and machine learning technologies allow operators to take a deep dive into the biggest collection of data ever in human history, to gain insightful analysis of customer behaviour, market trends, booking patterns and more. From predicting demand to suggesting pricing strategies, new AI-driven revenue management tools are proving invaluable to hotels, airlines and other hospitality and tourism operators for optimising operations and boosting profits.

According to Hotel Technology News, major hotel brands using AI revenue management software are reporting significant lifts in revenue, while smaller businesses report increases in bookings of around 15%. Plus, AI and machine learning tools are helping businesses make smarter decisions by pinpointing areas for improvement, reducing decision-making timeframes and managing risks effectively.

2. Advanced IoT systems for sustainability

Sustainability is no longer an afterthought in travel, it's a major priority for 74% of consumers. Thanks to advanced IoT systems, businesses who have made net-zero commitments and set ambitious targets can now track and measure their environmental impact in real time. From energy consumption to waste generation, smart devices and smart rooms are linked to impact measurement and reporting programs, providing crucial data to hospitality and tourism operators for conservation efforts. By analysing this information, companies can implement eco-friendly practices and reduce their ecological impact. Moreover, IoT platforms foster collaboration among stakeholders, driving industry-wide initiatives for a greener future.

3. Social media reshaping destination marketing

In recent years, social media has profoundly revolutionised marketing within the tourism and travel industry, reshaping how businesses engage with audiences and promote destinations.

Platforms like Instagram, Facebook, and TikTok have become indispensable tools for showcasing exotic locales, luxurious accommodations, and unique experiences.

Social media influencers also play a pivotal role, leveraging their large followings to endorse destinations and experiences, often reaching a wider audience than traditional advertising methods. User-generated content, such as travel photos and reviews, has gained increasing importance, offering diverse authentic perspectives and influencing potential travellers' decisions. One recent study shows that 97% of millennials post photos on social media while on vacation, and about 52% of travellers decide to go to a specific destination after seeing content from friends, family, or peers on social media.

Moreover, targeted advertising on social media enables companies to tailor campaigns to specific demographics, maximising their reach and impact. For instance, Airbnb utilises Instagram effectively by featuring attractive user-generated content and partnering with influencers to promote various accommodations worldwide, enticing travellers to explore new destinations and experiences.

4. Mobile apps for personalised and seamless booking experiences

The rise of mobile apps has transformed how we travel. In 2023, almost one-third (32%) of travellers used a website through a mobile device to book their trip, and 23% used a mobile app directly. With just a few taps, travellers can access a wealth of information and book their entire trip on the go. From branded hotel apps to mobile OTAs, travel apps offer a combination of convenience and loyalty programs, rewarding frequent travellers with exclusive deals and perks. For instance, Marriott and Hilton have developed personalised apps that not only allow guests to book rooms but also offer features like mobile check-in, room customisation, and access to loyalty program benefits. Additionally, OTA booking apps like Booking.com offer in-app discounts, exclusive deals, and rewards for repeat bookings.

These four digital transformation trends demand a broad set of digital skills from any young professional entering the market. So, how are educators stepping up to teach these skills?

To find out, let’s take a look at the specific skills and subjects relevant to these four trends, which are offered as part of a standard Diploma of Business in Hospitality and Tourism Management or Bachelor of Business in Hospitality and Tourism Management, at Torrens University Australia.

Marketing in the digital era

This subject is taught as a core subject of both the Diploma and the Bachelor of Business in Hospitality and Tourism Management. It introduces cutting-edge contemporary marketing concepts, and strategic marketing tools including social media, market segmentation, target marketing, positioning, cultural differences and consumer behaviour. Students learn how consumers make decisions regarding product, price, place and promotion, as well as the identification of marketing opportunities through market research.

Global distribution and revenue management

This subject is a core subject of a Bachelor of Business in Hospitality and Tourism Management. The subject introduces the Global Distribution System (GDS) which is used by airlines, travel consultants and hotels to manage airline and associated travel reservations. Students will then learn how revenue management works in partnership with the GDS to maximise revenue whilst looking at different revenue models and technological applications, including the latest analytics and revenue management software that’s supported by AI and machine learning.

Ethics and sustainability

Another core subject of Bachelor of Business in Hospitality and Tourism Management, this course teaches students how to be ethical and create sustainable business ecosystems. It covers the broad range of tools and methods available to organisations to measure the impact of their activities in economic, ethical, social and environmental terms; including any useful digital tools on the market. Through completion of this subject, students acquire an essential set of skills for managing and leading organisations more ethically and sustainably.

Integrated marketing communications

An elective subject available to both Diploma and Bachelor of Business in Hospitality and Tourism Management students, this subject teaches the principles of Integrated Marketing Communications (IMC). Students learn practical skills to plan and implement integrated marketing communications campaigns across a range of media platforms from print to broadcast to all relevant forms of social media including Instagram and TikTok.

Organisational creativity and innovation

A core subject of the Bachelor of Business in Hospitality and Tourism Management, this course teaches students how to take an idea and create it into something that is a potential business opportunity. Whether the idea is for a new app or mobile service, product, process or operational improvement, this subject will teach students how to assess, research, develop and create a proposed opportunity. From there, students construct a venture-ready business plan and presentation pitch that could be sent to a potential investor.

As one of Australia’s most cutting-edge universities, Torrens University Australia (TUA) strives to provide students with the most up-to-date education possible. These are just some examples of subjects teaching digital-relevant skills for the hospitality and tourism industry in 2024.