ANALYSIS OF THE ADOPTION LEVEL AND IMPACT OF VIRTUAL REALITY (VR) AND AUGMENTED REALITY (AR) TECHNOLOGY IMPLEMENTATION IN TRAVEL AGENCIES IN INDONESIA

Abstract

The development of Virtual Reality (VR) and Augmented Reality (AR) technologies has significantly transformed the tourism industry, including travel agencies in Indonesia. This study aims to analyze the adoption level and impact of VR and AR technology implementation in travel agencies in Indonesia. Using the Unified Theory of Acceptance and Use of Technology (UTAUT) theoretical framework, this research combines a literature review, case studies, and interviews as the research methodology. The case studies involve ten of the largest travel agencies in Indonesia that have implemented VR and AR technologies in their marketing strategies. Semi-structured interviews were conducted with representatives from these travel agencies to gain an in-depth understanding of the experiences, challenges, and benefits of implementing VR and AR technologies. The researcher carried out data triangulation by comparing findings from the literature review, case studies, and interviews to ensure the validity of the research findings. The results indicate that the adoption of VR and AR technologies by travel agencies in Indonesia is still in its early stages. However, travel agencies implementing VR and AR technologies report significant positive impacts, such as increased tourist interest, enhanced product differentiation, and improved customer engagement. The case studies demonstrate that implementing VR and AR technologies helps travel agencies promote tourist destinations more innovatively and attractively. Nevertheless, several challenges are also encountered, such as the high cost of developing VR and AR content, regular content updates, and the limited human resources skills needed to operate these technologies. This research contributes to understanding the adoption and impact of VR and AR technology implementation in travel agencies in Indonesia. The findings of this study can assist travel agencies in evaluating the potential adoption of VR and AR technologies and developing effective implementation strategies. Keywords: Virtual Reality, Augmented Reality, travel agencies, adoption level, implementation impact.