How Travel Agencies Innovate their Business Models

Abstract

Although artificial intelligence (AI) technologies have considerable potential to solve various problems, there are still many challenges related to a lack of knowledge on how to strategically use these technological advances in order to innovate the business model. This research aims to explore the role of AI and marketing automation (MA) in business model innovation in the Tunisian tourism sector. We employed a dual qualitative approach, integrating 16 semi-structured interviews and six projective techniques, both conducted with travel agency managers. The resulting framework presents three phases of the business model (BM). In the first phase, the classic BM, based on the knowledge-based view (KBV), integrates business strategy, market positioning and organisational culture. In the second phase, this traditional BM evolves into a dynamic BM by modifying its components. Thus, the BM is adapted through digital offerings and customer value creation. The final phase is BM innovation, driven by the integration of AI and MA. The obtained results also highlight several barriers to the adoption of these technologies, such as trust-related issues, technology fusion, and the availability of resources and market challenges that hinder the transition from Phase 1 to Phase 3.