Technology is rapidly becoming a more and more important aspect of our everyday life, and it must be said that it is noticeable in all spheres of society.
Tourism has not avoided this digital revolution, which is why the past couple of years have brought rapid growth in the global tourism technologies market.
But what exactly does it include? We talk about this market when IT and ICT is involved. More practically, however, it can be anything, varying from social media use to flight tracking or planning trips via online platforms.
What Is the Market Situation?
In 2020, the travel technologies market had an estimated worth of about $8.6 billion, but it is clear that with all the potential that digitalization has, this figure is destined to grow in the future.
According to a study conducted by Global Industry Analysts Inc., the market is set to be worth $12.5 billion by 2026. The annual growth rate during this period will reach 6.8 %.
The biggest market of travel technologies, not surprisingly, is in the USA – estimated worth of $1.7 billion this year. However, China is not resting on its laurels and is expected to reach a market size of $1.9 billion by 2026 (with annual growth of 8.2 %).
Other important markets for travel technologies include Japan and Canada. Both are set to grow significantly throughout the next five years (5.8 % and 6.2 %, respectively), while Germany is Europe’s big player with an estimated growth of 6.5 %.
Growth to Continue
The study also adds that the Covid-19 pandemic will have a significant effect on the industry, with many more travel technology opportunities very likely emerging in the years to come on the global tourism technologies market.
In this context, the rise of the implementation of artificial intelligence, as well as robotic process automation, seems inevitable soon. This will further improve the planning and booking experience of travelers, making it easier and more straightforward.
VR Implementation and Its Problems
Moreover, stakeholders and companies in the industry are also heavily investing in AR and VR technologies, looking to implement virtual tours and other variants and possibilities of virtual reality more widely.
However, with regards to VR and AR, the growth of the market is currently hampered by the lack of implementation in poorer and developing countries, as well as the high costs which are scaring off smaller businesses in the industry.
It must also be noted that there has been a lot of reluctance to invest in technologies throughout the pandemic. However, the situation is destined to improve soon, seeing as technologies are of vital importance not only for the industry but society as a whole.