The acceleration of technological innovations is reshaping service industries, including the travel business. As competitive forces intensify, inbound tour operators face the challenge of adapting to both revolutionary technologies and... more
The acceleration of technological innovations is reshaping service industries, including the travel business. As competitive forces intensify, inbound tour operators face the challenge of adapting to both revolutionary technologies and business model innovations as they develop destination product offerings ushering a smarter tourism ecosystem. This paper explores how inbound tour operating businesses are being impacted by technology-enabled innovations and proposes strategic responses to the disruptions affecting their businesses. The investigators addressed this gap through immersion in relevant industry communities involving participant observations and in-depth interviewing. The authors examine prevailing and emerging models of inbound tour operations, drawing upon the service-dominant logic framework and placing particular emphasis on value propositions. The present study formulates a comprehensive value co-creation framework encompassing tourism industry stakeholders, which involves assessing their value propositions and creating focused R&D initiatives that are customized to market needs. It is essential to modularize in-destination services to enable mass customization of travel experiences and to encourage value co-creation that empowers travelers.
Research Interests:
Hsu, A., King, B., Wang, D., Buhalis, D., 2016, In-destination tour products and the disrupted tourism industry: progress and prospects, Information Technology & Tourism, Vol 17, pp.1-21. https://doi.org/10.1007/s40558-016-0067-y... more
Hsu, A., King, B., Wang, D., Buhalis, D., 2016, In-destination tour products and the disrupted tourism industry: progress and prospects, Information Technology & Tourism, Vol 17, pp.1-21.
https://doi.org/10.1007/s40558-016-0067-y
Established inbound tour operators (ITOs) are being challenged by emerging competitors that have embraced technology-enabled innovations, including aspects that are associated with the collaborative or sharing economy. A variety of suppliers across the supply chain are now able to form a direct connection with customers through platform websites, thereby providing tech-savvy tourists with the capacity to create customized trips. Incumbent ITOs are now competing with emerging entrants that are responsive to customer needs because of their digital expertise. As the various provider categories have become less clear and as barriers to entry have fallen, tour service suppliers must consider the contemporary tourism ''ecosystem'' when formulating strategies. In the face of declining consumer demand for standardized tour products, there is an urgent need to consider changing tourist habits or tastes when introducing new in-destination options. In exploring the evolving features of the inbound tourism ecosystem, this paper draws upon the recent literature to focus on the distinguishing characteristics of innovative tour service and experiences. It identifies how tour suppliers respond to competitor actions, or embrace these features themselves. The authors adopt a multiple case study approach and assemble evidence from 17 examples of tourism start-ups in Taiwan. The paper concludes with implications for practitioners and suggestions for future research.
https://doi.org/10.1007/s40558-016-0067-y
Established inbound tour operators (ITOs) are being challenged by emerging competitors that have embraced technology-enabled innovations, including aspects that are associated with the collaborative or sharing economy. A variety of suppliers across the supply chain are now able to form a direct connection with customers through platform websites, thereby providing tech-savvy tourists with the capacity to create customized trips. Incumbent ITOs are now competing with emerging entrants that are responsive to customer needs because of their digital expertise. As the various provider categories have become less clear and as barriers to entry have fallen, tour service suppliers must consider the contemporary tourism ''ecosystem'' when formulating strategies. In the face of declining consumer demand for standardized tour products, there is an urgent need to consider changing tourist habits or tastes when introducing new in-destination options. In exploring the evolving features of the inbound tourism ecosystem, this paper draws upon the recent literature to focus on the distinguishing characteristics of innovative tour service and experiences. It identifies how tour suppliers respond to competitor actions, or embrace these features themselves. The authors adopt a multiple case study approach and assemble evidence from 17 examples of tourism start-ups in Taiwan. The paper concludes with implications for practitioners and suggestions for future research.
Research Interests:
Established inbound tour operators (ITOs) are being challenged by emerging competitors that have embraced technology-enabled innovations, including aspects that are associated with the collaborative or sharing economy. A variety of... more
Established inbound tour operators (ITOs) are being challenged by
emerging competitors that have embraced technology-enabled innovations,
including aspects that are associated with the collaborative or sharing economy. A
variety of suppliers across the supply chain are now able to form a direct connection
with customers through platform websites, thereby providing tech-savvy tourists
with the capacity to create customized trips. Incumbent ITOs are now competing
with emerging entrants that are responsive to customer needs because of their digital
expertise. As the various provider categories have become less clear and as barriers
to entry have fallen, tour service suppliers must consider the contemporary tourism
‘‘ecosystem’’ when formulating strategies. In the face of declining consumer
demand for standardized tour products, there is an urgent need to consider changing
tourist habits or tastes when introducing new in-destination options. In exploring the
evolving features of the inbound tourism ecosystem, this paper draws upon the
recent literature to focus on the distinguishing characteristics of innovative tour
service and experiences. It identifies how tour suppliers respond to competitor
actions, or embrace these features themselves. The authors adopt a multiple case
study approach and assemble evidence from 17 examples of tourism start-ups in
Taiwan. The paper concludes with implications for practitioners and suggestions for
future research.
emerging competitors that have embraced technology-enabled innovations,
including aspects that are associated with the collaborative or sharing economy. A
variety of suppliers across the supply chain are now able to form a direct connection
with customers through platform websites, thereby providing tech-savvy tourists
with the capacity to create customized trips. Incumbent ITOs are now competing
with emerging entrants that are responsive to customer needs because of their digital
expertise. As the various provider categories have become less clear and as barriers
to entry have fallen, tour service suppliers must consider the contemporary tourism
‘‘ecosystem’’ when formulating strategies. In the face of declining consumer
demand for standardized tour products, there is an urgent need to consider changing
tourist habits or tastes when introducing new in-destination options. In exploring the
evolving features of the inbound tourism ecosystem, this paper draws upon the
recent literature to focus on the distinguishing characteristics of innovative tour
service and experiences. It identifies how tour suppliers respond to competitor
actions, or embrace these features themselves. The authors adopt a multiple case
study approach and assemble evidence from 17 examples of tourism start-ups in
Taiwan. The paper concludes with implications for practitioners and suggestions for
future research.
Research Interests:
Information technology advances provide alternative distribution and marketing strategies for tour product suppliers in the destination. Technology-enabled innovations empower tourists to deal directly with tour component suppliers and to... more
Information technology advances provide alternative distribution and marketing strategies for tour product suppliers in the destination. Technology-enabled innovations empower tourists to deal directly with tour component suppliers and to pursue more customized and experience-based tour products. Disintermediation between consumers and suppliers has threatened the business sustainability of incumbent inbound tour operators (ITOs), which are still reliant on an economic logic of information asymmetry and the multi-layered distribution system. While established companies in conventional mass tourism may be concerned about the trade-off between technology investment and financial return, start-up entrepreneurs grab market opportunities to serve unmet tourist needs with innovative business models and technical expertise. This qualitative research explores how tourism entrepreneurs perceive the impact of technological innovation and how their solutions for visitor needs may replace traditional functions of ITOs in the industry value chain. The results indicate that the proposed progression of this sector is supported with the supplement of a platform business model and open innovation.