Digitalization and the Transformation of Tourism Economics

Abstract

In the current technological paradigm, the functioning of the tourism sector cannot be explained without the process of digitalization. This process takes on special relevance in tourism economics due to two issues: on the one hand, tourism is a highly dependent and sensitive sector to innovation, especially on the demand side; and on the other, it is a sector with little innovative capacity due to its business structure. This changing reality requires the reconsideration and even the reinterpretation of some principles of tourism economics. In this chapter, starting from a comprehensive literature review, five of these principles are analyzed: the development of a new demand, changes in the value chain of tourist supply, pricing with almost perfect information, the labor market in the tourism sector and the challenge of automation, and finally the evolution of destinations in terms of intelligence, sustainability, and accessibility. This is intended to shed light on the transformation that the tourism sector is currently experiencing in digital terms and to anticipate the change that new disruptive technologies, especially artificial intelligence, will continue to create.