In the current digital technology era, digital transformation in tourism is becoming an inevitable trend in the field. Understanding digital transformation will help businesses operating in the tourism sector master the trend and achieve strong development in the future. Follow this article by Viindoo to learn more about the best digital conversion methods.
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What is digital transformation in tourism?
Digital transformation in tourism is the change from a traditional business model to a modern one. This model will focus more on the customer value chain relied on big data. In today's era, digital transformation has no longer been an option but an inevitable trend for businesses to compete and meet the increasingly demanding needs of customers.
Digital transformation is a process of changing all aspects of each individual and business in terms of lifestyle, business methods, and production process by applying digital technology. In tourism, digital transformation is the process of transforming the way of traveling, doing tourism business, and managing tours by applying digital technology.
Digital transformation in hospitality
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A trend of digital transformation in tourism after COVID
The Covid-19 pandemic heavily impacts economic sectors, especially the tourism industry. Almost all activities in this sector were "frozen" during the pandemic. When this period passes and a new normal comes, another challenge for tourism businesses is the significant change in customer behavior.
Customers began to make orders for traveling services through online channels rather than direct contact as before. In that situation, Vietnamese businesses have to act differently to adapt to that rapid change. Businesses start applying modern technologies to reach potential customers, launch new services, as well as optimize human resources, costs, and operating time.
This is the reason why many businesses in the field of hospitality in Ho Chi Minh City increase investment in the digital transformation trend. They equip themselves with internet-connected devices to manage and serve customers. Travel businesses also focus on using technology to promote tours to reach more online customers.
At the national level, Vietnam's tourism industry has been paying more attention to the application of digital technology. Diverse useful technology products have been put into operation, most notably the application "Vietnam Safe Travel". The app integrates with meaningful features such as maps, health information updates, epidemic situations, safe tourist facilities, etc. Communication activities on digital platforms are increasingly improved.
At the local level, provinces and cities have aware of the importance of digital transformation in the development of the tourism and travel industry. Therefore, localities have made efforts to make innovations in the approach methods, and communication activities, thereby creating new products to easily reach customers.
Vietnam's tourism industry focuses on applying digital technology in business activities
Benefits of digital transformation in the tourism industry
- Remove geographical barriers as customers and businesses can interact through a phone screen.
- Allow quick and convenient transactions.
- Specify detailed information about the trip for customers to easily follow.
- View reviews of previous customers so that customers can have more accurate decisions.
- Collect customer data with digital transformation applications. From there, businesses can analyze user behavior to attract customers and increase profit.
- Optimize human resource management processes.
- Process tasks easier, faster, and more convenient for employees.
- Improve the competitiveness of businesses in the market.
For the nation: Digital transformation will support the national promotion of tourism worldwide quickly at an optimal cost.
Challenges of digitalization in tourism
Besides the benefits, Digital Transformation in Tourism also causes numerous business problems, specifically:
- Businesses lack resources for a comprehensive transformation.
- Required data is far from enough.
- Management capacity is still limited.
- The initial investment is too large.
- There is a lack of synchronization in vision and alignmen
The most effective solution for digital transformation in tourism lately
Mobile Apps for Smart traveling
Apps for smart traveling on mobile phones are one of the most effective solutions for digital transformation. These applications are suitable for the characteristics of customers of the travel agency. Tourists can book the service they want through these apps and use them during travel.
Smart traveling apps
These applications make it easier for visitors to find information, photos, and some other utilities about their wanted service.
Thanks to these mobile apps, customers can easily plan specific trips. Customers can book tickets, pay, search for famous tourist destinations, choose a tour guide, etc. for the trip without having to directly go to the service provider.
Artificial intelligence applications
According to a survey by Adobe in 2019, artificial intelligence applications are considered popular digital transformation trends in tourism these days. Many tourism businesses have increasingly focused on applying artificial intelligence to increase personalization and improve customer experience. For example, a hotel business in Japan has used "robots" instead of people to serve customers, giving them great experiences.
Virtual Reality in Tourism
Business promotion is an essential activity to increase the influence of the brand and leave customers with a good impression. It is also crucial work for any hospitality business. Virtual reality technology is one technique that many businesses apply to promote their restaurants, resorts, hotels, etc. This significantly helps these businesses optimize operational efficiency and reach more customers.
Traveling with virtual reality
Digital transformation will gradually improve chatbots thanks to great improvements in language processing and emotion recognition. The well-handled chatbots will positively affect the hospitality sector. It is because this technology can greatly support businesses to understand the needs of customers. As a result, businesses can create high-quality products and services that satisfy the needs of customers.
Personnel will also be more convenient when adopting chatbots. However, the application of chatbots can be difficult sometimes. For example, it is not easy to create empathy between customers and businesses. In general, the improvement of the chatbots still gives hope to increasing customer satisfaction.
Reviews and rank on social networking platforms and tourism websites
In the digital age, tourists can easily share their opinions via the internet, on social networking platforms about travel and tourism such as Facebook, TripAdvisor, or others traveling websites. This helps tourism businesses better understand the wants and needs of customers.
These reviews will be the basis for businesses to take care of customers. At the same time, businesses can build more reputation and promote their brand utilizing the rating of visitors.
In addition, other customers can refer to reviews to feel more secure when buying products and services from a business. Reviews and rank are about improving customer experience rather than increasing profit for businesses.
Internet of Things (IoT)
Thanks to the development of science and technology, more devices are capable of connecting to the Internet. Tourism businesses are taking advantage of the trend of digitization in tourism to understand customers, increase quality and service, and bring better experiences.
By applying IoT, businesses can understand customers through analysis of habits and other characteristics. Therefore, they can convey interesting information to target customers.
IoT helps understand customers more
The application of IoT not only allows businesses to increase sales and be closer to customers but also helps customers save time and costs of searching as well as choosing products and suitable services.
Comprehensive digital transformation software
In the process of digital transformation in hospitality, businesses in the field of technology play an important role. They are the units that bring quality digitizing products.
Viindoo Technology Joint Stock Company is a prominent technology vendor in Hai Phong. The business has performed consultancy and successfully implemented solutions for digital transformation in businesses with the Viindoo Enterprise Management Software. Viindoo software is a comprehensive digital transformation solution for businesses that has been honored for 2 consecutive years at the top prestigious award of the software and IT industry in Vietnam - the Sao Khue Award.
On October 9, 2022, Viindoo was proud to be honored at VietNam Digital Awards 2022 for outstanding digital products, solutions, and technologies. The award honors outstanding achievements from government agencies, businesses, and individuals in the field of Digital Transformation, promoting national digital transformation.
Viindoo digital transformation software provides businesses with a cloud-based digitalization solution in the form of SaaS. This software is capable of integrating with most other applications for enterprises. Besides, Viindoo owns a team of experienced experts in digital transformation consulting and system operation security. This helps businesses save costs for infrastructure and operating personnel, as well as optimize the customer experience.
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Digital transformation in tourism is an inevitable trend. Implementing digital transformation will help tourism businesses increase their competitiveness in the market and improve their ability to cope with great changes in the economy in the future. If businesses want more advice on the digital transformation process, please contact Viindoo via the hotline at 0225 730 9838.
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