Digital Innovation and Sustainability: Transforming the Tourism and Hospitality Industry
DOI:
https://doi.org/10.48165/palash.2026.1.2.03Keywords:
Digital Technologies, Customer Expectations, Tourism and Hospitality Industry, Artificial Intelligence, Sustainability, InnovationAbstract
Digital technology has significantly impacted the tourism and hospitality industry, requiring companies to adapt to changing customer expectations. Advanced technology like AI, mobile apps, IoT, and VR/AR have empowered cutting edge tourists seeking personalized, seamless, and immersive journey reviews that create unforgettable tales. The industry has moved far from conventional, uniform offerings, thanks to those upgrades, towards client-driven styles, enabling organizations to cater to man or woman picks in real-time. AI tools such as predictive analytics and chatbots improve customer by providing tailored hints and immediate assistance. A while has streamlined booking, pricing, and communication strategies, supplying a reachable and on-the-move experience for vacationers. IoT-enabled smart devices include room automation and voice control systems, catering to tech-savvy travelers; virtual and augmented reality technology allows customers to explore destinations and accommodations virtually, influence travel decisions, and increase satisfaction. This study explores how these digital technologies are shaping customer expectations and how the tourism and hospitality industry must adapt to remain competitive. It emphasizes the need for businesses to integrate these technologies into their service models to meet the increasing demand for convenience, privacy, and sustainability by examining these trends. This study provides valuable insights for businesses hoping to renew, customer loyalty in an increasingly digital marketplace. The study employs a systematic literature review methods to examine the impact of these technologies on the behavior and decisions of patrons. The increasing use of AI for predictive analytics is highlighted in industry papers and case studies instantaneous communication and customized recommendations. The results also explore the role of cellular-first techniques in further detail. This is done through features such as bookings app and virtual wallets. In addition to catering to tech-savvy travelers, this is to ensure easy interaction. The studies also examine how smart technology can enhance guest pleasure through computerized processes and room personalization.
References
Beck, J., Rainoldi, M., & Egger, R. (2019). Virtual reality in tourism: A state-of-the-art review. Tourism Review, 74(3), 586–612. https://doi.org/10.1108/TR-03-2017-0049
Buhalis, D., & Amaranggana, A. (2015). Smart tourism destinations enhancing tourism experience through personalization. In I. Tussyadiah & A. Inversini (Eds.), Information and communication technologies in tourism 2015 (pp. 377–389). Springer. https://doi.org/10.1007/978-3-319-14343-9_28
Buhalis, D., & Law, R. (2008). Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research. Tourism Management, 29(4), 609–623. https://doi.org/10.1016/j.tourman.2008.01.005
Buhalis, D., & Sinarta, Y. (2019). Real-time co-creation and nowness service: Lessons from tourism and hospitality. Journal of Travel & Tourism Marketing, 36(5), 563–582. https://doi.org/10.1080/10548408.2019.1592059
Buhalis, D., Harwood, T., Bogicevic, V., Viglia, G., Beldona, S., & Hofacker, C. (2019). Technological disruptions in services: Lessons from tourism and hospitality. Journal of Service Management, 30(4), 484–506. https://doi.org/10.1108/JOSM-12-2018-0398
Dickinson, J. E., Ghali, K., Cherrett, T., Speed, C., Davies, N., & Norgate, S. (2014). Tourism and the smartphone app: Capabilities, emerging practice and scope in the travel domain. Current Issues in Tourism, 17(1), 84–101. https://doi.org/10.1080/13683500.2012.718323
Djafarova, E., & Rushworth, C. (2017). Exploring the credibility of online celebrities’ Instagram profiles in influencing consumer behaviour. Computers in Human Behavior, 68, 1–7. https://doi.org/10.1016/j.chb.2016.11.009
Flavián, C., Ibáñez-Sánchez, S., & Orús, C. (2019). The impact of virtual, augmented and mixed reality technologies on the customer experience. Journal of Business Research, 100, 547–560. https://doi.org/10.1016/j.jbusres.2018.10.050
Font, X., & Lynes, J. K. (2018). Corporate social responsibility in tourism and hospitality. Journal of Sustainable Tourism, 26(7), 1027–1042. https://doi.org/10.1080/09669582.2018.1488856
Font, X., Elgammal, I., & Lamond, I. (2017). Greenhushing: The deliberate under-communicating of sustainability practices by tourism businesses. Journal of Sustainable Tourism, 25(7), 1007–1023. https://doi.org/10.1080/09669582.2016.1158829
Gössling, S., & Hall, C. M. (2019). Sharing versus collaborative economy: How to align ICT developments and the Sustainable Development Goals in tourism. Journal of Sustainable Tourism, 27(1), 74–96. https://doi.org/10.1080/09669582.2018.1560455
Gössling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid assessment of COVID-19. Journal of Sustainable Tourism, 29(1), 1–20. https://doi.org/10.1080/09669582.2020.1758708
Gretzel, U., Sigala, M., Xiang, Z., & Koo, C. (2015). Smart tourism: Foundations and developments. Electronic Markets, 25(3), 179–188. https://doi.org/10.1007/s12525-015-0196-8
Guttentag, D. A. (2010). Virtual reality: Applications and implications for tourism. Tourism Management, 31(5), 637–651. https://doi.org/10.1016/j.tourman.2009.07.003
Han, D. I. D., Jung, T., & Gibson, A. (2019). Dublin AR: Implementing augmented reality in tourism. In Information and communication technologies in tourism 2019 (pp. 511–523). Springer. https://doi.org/10.1007/978-3-030-05940-8_40
Ivanov, S., & Webster, C. (2019). Conceptual framework of the use of robots, artificial intelligence, and service automation in travel, tourism and hospitality companies. In S. Ivanov & C. Webster (Eds.), Robots, artificial intelligence and service automation in travel, tourism and hospitality (pp. 7–37). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78756-687-320191001
Ivanov, S., Webster, C., & Berezina, K. (2020). Adoption of robots and service automation by tourism and hospitality companies. Robonomics: The Journal of the Automated Economy, 1(1), 1–15.
Kim, M. J., & Law, R. (2015). Smartphones in tourism and hospitality marketing: A literature review. Journal of Travel & Tourism Marketing, 32(6), 692–711. https://doi.org/10.1080/10548408.2014.943458
Kim, M. J., Lee, C. K., & Jung, T. (2017). Exploring consumer behavior in mobile travel services. International Journal of Tourism Research, 19(4), 455–468. https://doi.org/10.1002/jtr.2125
Kim, S. S., Kim, J., Badu-Baiden, F., Giroux, M., & Choi, Y. (2021). Preference for robot service or human service in hotels during the COVID-19 pandemic. International Journal of Hospitality Management, 93, Article 102795. https://doi.org/10.1016/j.ijhm.2020.102795
Leung, D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1–2), 3–22. https://doi.org/10.1080/10548408.2013.750919
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and tourism management. Tourism Management, 29(3), 458–468. https://doi.org/10.1016/j.tourman.2007.05.011
Lou, C., & Yuan, S. (2019). Influencer marketing: How message value and credibility affect consumer trust of branded content on social media. Journal of Interactive Advertising, 19(1), 58–73. https://doi.org/10.1080/15252019.2018.1533501
Mariani, M., Baggio, R., Fuchs, M., & Höepken, W. (2018). Business intelligence and big data in hospitality and tourism: A systematic literature review. International Journal of Contemporary Hospitality Management, 30(12), 3514–3554. https://doi.org/10.1108/IJCHM-07-2017-0461
Martin, K. D., Borah, A., & Palmatier, R. W. (2017). Data privacy: Effects on customer trust and firm performance. Journal of Marketing, 81(1), 36–58. https://doi.org/10.1509/jm.15.0497
Munar, A. M., & Jacobsen, J. K. S. (2014). Motivations for sharing tourism experiences through social media. Tourism Management, 43, 46–54. https://doi.org/10.1016/j.tourman.2014.01.012
Neuhofer, B., Buhalis, D., & Ladkin, A. (2015). Smart technologies for personalized experiences: A case study in the hospitality domain. Electronic Markets, 25(3), 243–254. https://doi.org/10.1007/s12525-015-0182-1
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.
Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research, 117, 312–321. https://doi.org/10.1016/j.jbusres.2020.06.015
Tussyadiah, I. P. (2020). A review of research into automation in tourism: Launching the Annals of Tourism Research curated collection on artificial intelligence and robotics in tourism. Annals of Tourism Research, 81, Article 102883. https://doi.org/10.1016/j.annals.2020.102883
Tussyadiah, I. P., Wang, D., Jung, T. H., & tom Dieck, M. C. (2018). Virtual reality, presence, and attitude change: Empirical evidence from tourism. Tourism Management, 66, 140–154. https://doi.org/10.1016/j.tourman.2017.12.003
Tussyadiah, I. P., Zach, F. J., & Wang, J. (2020). Do travelers trust intelligent systems? The role of trust in AI-enabled tourism services. Journal of Travel Research, 59(8), 1408–1423. https://doi.org/10.1177/0047287519840841
United Nations World Tourism Organization. (2018). Tourism and the Sustainable Development Goals: Journey to 2030. UNWTO. https://doi.org/10.18111/9789284419401
Wang, D., Xiang, Z., & Fesenmaier, D. R. (2016). Smartphone use in everyday travel: Implications for travel marketing. Journal of Travel Research, 55(1), 52–63. https://doi.org/10.1177/0047287514535847
Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism Management, 31(2), 179–188. https://doi.org/10.1016/j.tourman.2009.02.016
Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior in travel and tourism: Insights into travel planning using the Internet. Journal of Retailing and Consumer Services, 22, 244–249. https://doi.org/10.1016/j.jretconser.2014.08.005
Yung, R., & Khoo-Lattimore, C. (2019). New realities: A systematic literature review on virtual reality and augmented reality in tourism research. Current Issues in Tourism, 22(17), 2056–2081. https://doi.org/10.1080/13683500.2017.1417359
