Passport to the Future: Digital Transformation in the Travel Industry

Emilien Coquard
5 min readSep 15, 2023

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You take your phone, unlock the screen, click on your favourite travel app and buy flight tickets for your next summer holiday.

It’s automatic. But it wasn’t always that easy to travel the world.

Thanks to the digital transformation in the travel industry from the early 2000s until today, anyone can book tickets and accommodation online in just a few clicks.

Digitalisation has reshaped travel and tourism for both travellers and businesses in the industry: it’s faster for passengers to organise trips and for organisations to track people’s preferences and personalise offers for an enhanced experience.

What does the future hold for this growing industry?

In this article, we’ll explore what we know about digital transformation in tourism, key statistics, present and future perspectives and upcoming trends in the sector.

May the journey begin!

What’s digital transformation in the travel industry?

Digital transformation in the travel industry refers to using technology to modernise and revolutionise how travel businesses operate and interact with customers.

For example, the adoption of mobile check-in apps allowing passengers to onboard flights easily or the implementation of AI-powered chatbots to answer travellers’ questions on autopilot.

Digital transformation in tourism in numbers

As a result of digitalisation, the travel and tourism industry has experienced unprecedented growth this century. Although the coronavirus pandemic threatened its acceleration, today, a sense of optimism prevails among travellers and organisations.

Indeed, over 70% of travellers are either ‘really excited to travel’ or ‘happy to travel’, according to a 2023 IPSOS survey.

These encouraging statistics, sourced from recent Statista reports, show the state of the travel industry and its increasing modernisation:

  • The online travel market size worldwide is worth €432 billion.
  • In 2017, online sales channels contributed about 60% of global travel and tourism market revenue. By the end of 2023, this figure is expected to rise to 69%.
  • In 2022, the United Kingdom had the highest share of digital advertising spending in the travel and leisure industry among selected global countries, with nearly 12% of spending. The US sits at 7%.
  • ​​In 2023, the global revenue of travel apps is projected to increase by 17% compared to the previous year, reaching nearly €364 million.
  • Over 50% of travellers expect to rely on travel apps offering all the services needed to plan a trip in 2023.

How does digital transformation affect the travel industry?

To explain how technology affects travel, put yourself into perspective.

Fifteen to twenty years ago, your phone was just a device to call people, a map was a piece of paper, and travel agents were like wizards who knew everything about your dream destination. Going on holidays felt like embarking on an Indiana Jones-style adventure.

Today, you can access thousands of travel deals with just a few clicks or taps on your smartphone or any other electronic device connected to the internet.

From communication to marketing, from travel experience to operations, technology has changed (and keeps changing) travelling, reshaping how we move around the globe.

You take your phone, unlock the screen, click on your favourite travel app and buy flight tickets for your next summer holiday.

It’s automatic. But it wasn’t always that easy to travel the world.

Thanks to the digital transformation in the travel industry from the early 2000s until today, anyone can book tickets and accommodation online in just a few clicks.

Digitalisation has reshaped travel and tourism for both travellers and businesses in the industry: it’s faster for passengers to organise trips and for organisations to track people’s preferences and personalise offers for an enhanced experience.

What does the future hold for this growing industry?

In this article, we’ll explore what we know about digital transformation in tourism, key statistics, present and future perspectives and upcoming trends in the sector.

May the journey begin!

What’s digital transformation in the travel industry?

Digital transformation in the travel industry refers to using technology to modernise and revolutionise how travel businesses operate and interact with customers.

For example, the adoption of mobile check-in apps allowing passengers to onboard flights easily or the implementation of AI-powered chatbots to answer travellers’ questions on autopilot.

Digital transformation in tourism in numbers

As a result of digitalisation, the travel and tourism industry has experienced unprecedented growth this century. Although the coronavirus pandemic threatened its acceleration, today, a sense of optimism prevails among travellers and organisations.

Indeed, over 70% of travellers are either ‘really excited to travel’ or ‘happy to travel’, according to a 2023 IPSOS survey.

These encouraging statistics, sourced from recent Statista reports, show the state of the travel industry and its increasing modernisation:

  • The online travel market size worldwide is worth €432 billion.
  • In 2017, online sales channels contributed about 60% of global travel and tourism market revenue. By the end of 2023, this figure is expected to rise to 69%.
  • In 2022, the United Kingdom had the highest share of digital advertising spending in the travel and leisure industry among selected global countries, with nearly 12% of spending. The US sits at 7%.
  • ​​In 2023, the global revenue of travel apps is projected to increase by 17% compared to the previous year, reaching nearly €364 million.
  • Over 50% of travellers expect to rely on travel apps offering all the services needed to plan a trip in 2023.

How does digital transformation affect the travel industry?

To explain how technology affects travel, put yourself into perspective.

Fifteen to twenty years ago, your phone was just a device to call people, a map was a piece of paper, and travel agents were like wizards who knew everything about your dream destination. Going on holidays felt like embarking on an Indiana Jones-style adventure.

Today, you can access thousands of travel deals with just a few clicks or taps on your smartphone or any other electronic device connected to the internet.

From communication to marketing, from travel experience to operations, technology has changed (and keeps changing) travelling, reshaping how we move around the globe.

Read the full article at: https://thescalers.com/passport-to-the-future-digital-transformation-in-the-travel-industry/

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