Trends in Digital Tourism and Connected Spaces

Technology has come to permeate all corners of our lives - and the tourism industry is no exception.

In fact, the travel industry has been one of the biggest benefactors in the growth of new technologies. From the boom in social media to the huge availability of platforms for online bookings of airlines, hotels and experiences. It's literally never been easier to plan and book travel experiences.

And, it's also never been easier for travel industry players to reach their potential audience both before they even set foot in their town or region, and once they have touched down.

Before we start looking into the modern trends in digital tourism, we'll answer the essential question....

What is digital tourism?

Digital tourism refers to the practice of integrating digital technology into various facets of tourism. This includes online booking of accommodation and transport, e-brochures for sightseeing, virtual tours, online reviews, and the use of smartphones for navigation and translation during travels.

Digital technology has transformed the way potential travelers research, plan, book, experience, and share their travels, significantly influencing their overall travel experience.

The fact is that today's travelers are no longer merely passive consumers of tourism content; they actively participate by sharing their experiences and reviews online. Whether they're sharing their experiences on social media platforms, or reviews sites, or they're taking it a step further and they've gone for the full travel blogger/influencer vibe, everyone has some kind of input into the digital tourism experience.

But it's not a one-sided process. Tourism businesses too play a huge part in the way digital tourism is used, whether that's in social media marketing or the digital tools they use to attract and engage visitors.

How does digital tourism work?

We've all been there. Browsing hotel comparison sites, idly checking cheap flight options or simply scrolling Instagram or TikTok and being captivated by someone else’s fantastic travel pictures.

On the consumer side, digital tourism relates to the tools we use to interact with a location.

Potential travelers often dedicate significant hours to research their destination online before travel. Whether that's exploring available hotels, tourist spots, food options, or even reviews and cultural anecdotes. Basically, the role that digital technology plays in shaping and informing the choice of where we go or where we want to go is expanding rapidly.

This digital phenomenon coalesces in what we now term 'digital tourism', where travelers use digital technology before, during, and after their trip, thereby creating a digitally-mediated experience. This developing digital landscape presents both opportunities and challenges to tourism sector-related business owners. 

Being aware of these trends and acting proactively could mean the difference between business growth and stagnation. Especially in what can be a competitive market.

But it also goes beyond the tools that consumers use to find cheap hotel package deals, or last minute flights.

For national or local tourist office offices, or tourism business operators, it's also embracing technologies that make the guest experience more enjoyable and seamless. Sure, most destinations are looking for more online bookings...

But they also want high quality ratings and reviews, have their spaces shared on social media and to get mentions in both the press via influencers or content creators. The entire process of digital tourism is actually symbiotic, with everyone benefitting when it's done correctly.

Let's look at some of the focus areas in digital tourism and how they affect the business operating in that sector.

Reviews

The golden chalice of every business in the tourism sector is more positive online reviews. And these are perhaps one of the main elements of digital tourism - playing a huge role in both attracting online bookings as well as the perception of the business.

A study by the travel agency TUI in association with the IUBH, the International University of Applied Sciences, found that 83% of travelers make their booking decisions based on online reviews.

Another study by the University of Hradec Králové in the Czech Republic found that 84% of people trust online reviews as much as personal recommendations, with 74% trusting companies more if they have positive reviews.

Sites which offer ratings such as Google, TripAdvisor and Booking.com are trusted by users and coveted by business owners.

Reviews are just one part of the puzzle when it comes to attracting visitors and winning more bookings. But they are a hugely important part, and are often the focus of marketing strategies by tourism focused businesses.

And of course, the more reviews the better!

How to use reviews to improve tourism businesses

Already, most businesses that thrive on bookings will proudly display TripAdvisor badges in their window, or clearly state their 4.5 star Google review on their website. It makes sense, as people often visit websites to check the details of their hotel or tour operator.

Highlighting the most recent reviews across online platforms can greatly win the trust of potential customers and ensure you get more of those all important bookings.

Sharing reviews within your venue can also be a useful strategy. Digital signage displays can be used to stream top reviews from TripAdvisor, Google, Yelp and Facebook.

Social Media and UGC

When did you last book a trip because of an ad you saw? 52% of travelers say that they have booked a trip because of something they saw online, whether that's in a social media post, blog or ad.

And when it comes to Millennials and Gen-Z, 97% of travelers post something on social media platforms while they're on holiday, including in their hotel (of course).

Consumer trust in traditional advertising is waning, and the influence of User-Generated Content (UGC), such as online reviews, social media posts, YouTube videos and blog posts, is on the rise. Travelers are now more likely to trust influencers more than they trust an ad they saw in a magazine or on TV, and travelers will routinely check hotel review sites to make sure they're making the best choice.

In an interview with Travel Weekly, Jade Broadus of Travel Mindset, a travel influencer agency, said, “...by (travel agencies) partnering with influencers, they can gain a level of trust. People trust influencers like they trust their best friend.” 

Of course it's not just travel agencies that can leverage the power of the influencer. Hotels, restaurants, attractions and experiences and other tourism focused services often court content creators to help them appeal to a broader online audience.

How to use UGC and social media in tourism

Businesses in the tourism sector often leverage the exposure from social media or user generated content in their own digital marketing or simply on their websites.

That can be sharing a link to the mention(s) on their website or their own socials, or repurposing content in their social media content or printed brochures. You can even use digital displays such as TV screens or digital signage to highlight social media mentions, positive reviews and engagement.

Apps such as Walls.io, or Gallery for Instagram Business allow you to highlight your content in a visible place such as reception.

Public and connected spaces in tourism

The concept of public and connected spaces in tourism refers to digitally connected environments such as hotels, airports, public transport and tourist spots.

Even entire cities can be seen as connected spaces, in that they provide adaptable services tailored to each individual's preferences and needs. In terms of a smart city, the goal is usually to improve the quality of life for residents. By extension this should make the life of both visitors and residents much easier, and increasingly these initiatives are designed to make the city itself more sustainable.

In general, this will mean access to a wide variety of technologies and services designed to streamline many aspects of everyday life.

These services often include free Wi-Fi, multilingual digital signage, self-service kiosks, and real-time information about nearby attractions or any disruptions affecting local transport systems. Usually, there will also be apps and digital signage which keep people updated with transit times and options, as well as information about the weather, UV levels, local pollution updates and other local critical information.

Smart cities also often have additional benefits for residents, such as restrictions on car traffic, cameras which monitor the cleanliness of public spaces and even processes to improve the management of water and energy.

These might not seem like tourism focused services, but they do also result in a better experience for visitors too.

Some examples of smart cities includes:

• Tokyo, Japan
• London, UK
• Singapore
• Dubai, UAE
• Seoul, South Korea
• San Diego, California
• New York City, New York
• Barcelona, Spain
• Toronto, Canada

All of these smart cities have integrated smart solutions, from automated streetlights and on-street cameras to reduce crime, to improved and integrated transport solutions.

Making your tourism business a smart space

Business owners can capitalize on this trend by integrating digital connectivity into their physical spaces, making them more attractive and convenient for tech-savvy travelers. This might include simple free wifi and a comfortable area for travelers to upload some photos and chat to their loved ones back home in a cool space.

Or, it might be somewhere that tourists can connect with locals, get personalized recommendations and feel like they really interacted with their location.

Add screens within the space promoting local companies, such as day trips, travel products, or even restaurants and bars.

Find out more about digital signage.

Although smart spaces are strongly focused on technology, they remain about the people that make them.

Smart hotels

Where technology meets hospitality, smart hotels are the result. Harnessing both cutting edge and trending technologies, smart hotels are becoming the norm, especially in the luxury sector. But, smart hotels aren't limited to the top end of the tourism industry.

Increasingly, boutique and even budget hotels are incorporating elements of smart hotels into their operations.

This includes mobile check-ins, lobby digital signage, personalization via AI, keyless room access, in-room Smart TVs, and automation via Internet of Things (IoT) devices.

For instance, hoteliers can use AI-based systems or digital signage for hotels to offer personalized deals and recommendations to their customers based on their interaction history, preferences, and feedback. Conversely, IoT infrastructures can help hotel operators monitor and control energy efficiency in their establishments.

This digital transformation has been changing the travel experience for travelers, and in today's world, we expect a certain degree of digital accessibility. If we can order take out to our homes in 20 minutes via an app, why shouldn't we expect hotel room service to be the same?

Or, when it comes to reporting a problem with our hotel room, should we phone reception, or report the issue on our own mobile device to an AI chatbot? These tools don't just make it more convenient for guests to improve their experience, but also make management and organization more efficient for hotel managers.

Transforming hotels using digital technologies

Most hotels have a website and access to a number of platforms for online bookings. And having a good website for your hotel is more important than ever, especially considering that direct bookings for hotels accounted for over 58% of reservations.

And this is the first port of call for upgrades to becoming a smart hotel - with AI chatbots streamlining communications and hotel digital signage giving access to local information and even upselling services.

Some hotel sites are becoming like their own online travel agencies, with access to booking systems for taxis and transfers, local tours and experiences and even food ordering.

Beyond the website, popular technologies for smart hotels include:

• High speed wi-fi
• Voice activated facilities
• Automated check-in (online or via check-in kiosks)
• Keyless entry
• AI concierge
• Smart TV displays and hotel digital signage

With smart TVs, you have the opportunity to improve the travel experience in your hotel or rooms, with personalized welcomes, customized local information and digital marketing elements.

AR and VR

You might remember a few years back with all the talk of the metaverse and virtual tourism. To be fair, many of us were locked down at home under COVID restrictions, and businesses were scrabbling for ways to stay relevant and attract tourists, albeit remotely.

While augmented reality (AR) and virtual reality (VR) aren't substitutes for real life tourism, they have definitely had an impact on the tourism industry.

The majority of people will research their destination online before they book, or before they travel. And a study from Jeonbuk University in South Korea found that VR travel experiences actually increased the desire to visit, rather than acting as a travel substitute.

And while social media can be one of the main digital tools to research our travels, people also love to access live webcams or virtual reality tours to help them plan their visits.

With AR, or augmented reality, the use cases are huge. From guided tours or history lessons using our own mobile devices, to treasure hunts for kids, or even finding our way around a busy street food market. AR can enable visitors to explore different areas, perhaps off the beaten path destinations, or help them get the most out of a busy tourist hub.

Using VR and AR in tourism businesses

Incorporating webcams into a tourism website is probably the simplest way to give people an immersive experience and help them plan their trips. But investing in an AR app or even an immersive VR experience can enable visitors to really get a feel for your location, and even offer a competitive edge for businesses such as hotels or travel experience providers.

What are the benefits of technology in tourism?

As we've seen, there are numerous benefits to incorporating digital technologies into all kinds of travel businesses. Travelers increasingly expect a degree of modernization and efficiency, with a digital transformation of a space offering a more refined experience.

Some of the main benefits of digital tourism includes:

1. Personalization and improved customer experience: Offering personalized experiences or promotions based on individual consumer interests and behaviors can be a game changer, especially for those in competitive sectors or destinations.
2. Increased efficiency: Digital transformation can help businesses automate routine tasks, speeding up and simplifying processes. For example AI concierge chatbots, or access to online bookings.
3. Enhanced marketing: One of the benefits of digital platforms has been that businesses can reach out to potential customers across the globe at minimal cost. But we can also improve or upsell within our location by using digital signage, or by offering apps or other tools to improve the experience.
4. Real-time feedback: Digital platforms enable businesses to get real-time feedback from their customers, helping them to adapt, improve and excel. Whether this is reviews based sites, social media or AI chatbots, being able to proactively respond can not just make a difference to travelers, but improve both your own business and the perception of the destination too.

What are the disadvantages of digital tourism?

Of course, digital tourism brings its own challenges too. With the increased access to technology, issues arise such as:

1. Privacy concerns: With increased digital interaction, the privacy of consumers can be at stake. Businesses need to ensure the security of their digital platforms to maintain consumer trust. This doesn't just mean cybersecurity, but also being careful about what is shared online such as images and more.
2. Over-reliance on digital platforms: In the event of technology failure or cyber-attacks, businesses can face disruption if they have become too dependent on digital platforms. And while an app is a great way to improve access, any disruption to the platform can cause a snowball effect to your business or location.
3. Exclusion of non-tech-savvy travelers: Not everyone loves technology. And while the majority may appreciate the modern tools, older tourists or those with an aversion to technology might find the dependence on digital tools frustrating. Make sure to accommodate everyone!

Using digital signage in digital tourism

Digital signage is a highly effective and visible way to display information. From local guides and marketing, to news or transport updates. And with just a simple TV or computer monitor, you can transform a space into a smart space or connected tourism hub.

Harness the power of digital signage in:

• Hotels, hostels and lodgings
• Travel agencies
• Transit hubs
• Tour operators
• Public spaces
• Waiting rooms

ScreenCloud is the leading digital signage software solution, with an easy to use interface and access to over 70 useful apps.

Whether you need to show traffic or weather conditions, upsell your tour packages or request reviews and feedback, find out how ScreenCloud can help.

Request a demo to see for yourself. Or, try us out with a 14 day free trial.