Digitalization is the incorporation of digital technologies and data to change business operations (Bloomberg, 2018). In tourism, digitalization provides an opportunity to increase the market reach and improve the efficiency of operations. At a collective level, the digital transformation of the tourism industry aids to develop and modify products, improve communication between the stakeholders and access to real-time data to monitor the performance. Despite the challenges the tourism sector faced in 2019, Sri Lanka has reached the revised target of tourists’ arrival for 2019 of approximately 1. 9 Mn as of 31st December 2019 (Lanka Business Online, 2020).
As stated by Secretary of the World Tourism Organization (UNWTO), the latest developments in technology are crucial for the tourism industry, not merely in terms of interchange of data and know-how but also in terms of web/mobile application development and methods to integrate sustainability in the industry (Unwto. org, 2017).
The usage of digital devices has increased considerably over the last decade. As a result, everyone has access to information at the fingertips. Nowadays, travelers depend greatly on mobile applications and digital platforms when planning their holidays and making reservations due to convenience (Hertzfeld, 2018). As a result, the industry is required to accept and adapt to these changes in technology in order to increase sales growth.
The leisure industry is a fragmented industry without a major player, and a large fraction of the service providers consists of SMEs. Sectors within the industry such as transportation, lodging, food and beverage, entertainment and service providers are faced with various advantages and limitations with regard to digitalization. Intellectual ability and competencies of the personnel, access to funding and other assets, the levels of adaptability to technology and responsiveness vary among businesses.
Digitalization is the incorporation of digital
technologies
and data to
change
business operations (Bloomberg, 2018). In
tourism
, digitalization provides an opportunity to increase the market reach and
improve
the efficiency of operations. At a collective level, the digital transformation of the
tourism
industry
aids to develop and modify products,
improve
communication between the stakeholders and access to real-time data to monitor the performance. Despite the challenges the
tourism
sector faced in 2019, Sri Lanka has reached the revised target of tourists’ arrival for 2019 of approximately 1. 9 Mn as of 31st December 2019 (Lanka Business Online, 2020).
As stated by Secretary of the World
Tourism
Organization (
UNWTO
), the latest developments in
technology
are crucial for the
tourism
industry
, not
merely
in terms of interchange of data and know-how
but
also
in terms of web/mobile application development and methods to integrate sustainability in the
industry
(
Unwto
.
org
, 2017).
The usage of digital devices has increased
considerably
over the last decade.
As a result
, everyone has access to information at the fingertips. Nowadays, travelers depend
greatly
on mobile applications and digital platforms when planning their holidays and making reservations due to convenience (
Hertzfeld
, 2018).
As a result
, the
industry
is required
to accept and adapt to these
changes
in
technology
in order to increase sales growth.
The leisure
industry
is a fragmented
industry
without a major player, and a large fraction of the service providers consists of SMEs. Sectors within the
industry
such as transportation, lodging, food and beverage, entertainment and service providers
are faced
with various advantages and limitations with regard to digitalization. Intellectual ability and competencies of the personnel, access to funding and other assets, the levels of adaptability to
technology
and responsiveness vary among businesses.