In 2020, the spread of the new coronavirus caused great damage to the Japanese economy. One of the hardest-hit industries is tourism.
According to data released by the Japan Tourism Organization (JNTO), the number of tourists visiting Japan in 2020 decreased by 87.1% compared to the previous year.
From 2023 onwards, restrictions will be gradually eased, but the travel industry is still left with major scars. The travel industry is in need of change as an unknown virus could strike again.
Today, when big data and digitization are developing rapidly, many experts are interested in DX conversion of the travel industry.
In this article, after clarifying the concept and benefits of DX, I would like to consider how the domestic travel industry should be transformed into DX.
Data collection is the base for DX in the travel industry. The more data you collect, the more competitive your company will be and the better your service will be. At the end of this article, we will introduce services that are useful for promoting the shift to DX in the travel industry, so please take a look.
1. What is DX?
DX (Digital Transformation) is an effort by companies and organizations to transform their business processes, culture, and customer experience using digital technology.
This is expected to improve operational efficiency, create new business opportunities, and improve customer satisfaction. Specific examples include optimizing customer service using data analysis and AI technology, streamlining operations using cloud services, and real-time information sharing through the introduction of IoT devices.
In order to achieve the success of DX, company-wide efforts and strong will of the management are indispensable, and companies are required to adapt to the digital age in order to maintain their competitiveness.
2. What about DX in the domestic travel industry?
The movement of people has been restricted due to the influence of the new coronavirus, and the travel industry has been greatly damaged. In response to this situation, travel agencies, lodging facilities, and tourist facilities have made a major shift to DX using online to survive.
For example, major travel companies such as JTB have launched new forms of travel such as "virtual travel" using VR and AR technology.
In the current state of DX in the domestic travel industry, online service provision and data utilization are progressing. Specific initiatives include the following.
Online reservation/payment
data analysis
Chatbot/AI utilization
IoT/smart devices
virtual travel
Through these efforts, the domestic travel industry is improving service quality and operational efficiency through DX, which is an important factor in increasing competitiveness. We will explain each activity in detail.
1. Online reservation and payment
Travel agencies and accommodation facilities have introduced online reservation and payment systems to improve customer convenience. Until now, we have mainly used major travel platforms such as Jalan and Rakuten Travel, but in recent years, the introduction of SaaS-type reservation systems has also increased.
There are also an increasing number of services that utilize dynamic packaging to customize individual travel plans.
2. Data analysis
We analyze customer attributes and travel histories to develop plan proposals and campaigns that suit travelers. This is expected to improve customer satisfaction and increase the repeat rate.
3. Use of chatbots and AI
AI technology and chatbots are used to streamline customer inquiries and travel plan proposals. This will reduce the workload on staff and enable faster responses.
4.IoT/smart devices
We use smart devices and IoT technology to make travel and lodging experiences more convenient for travelers. For example, keys are managed using smart locks, and tourist information is provided using location information.
5. Virtual Travel
Using VR and AR technology, a service that allows you to have a virtual travel experience without actually going on a trip has appeared. This makes it possible to acquire new customer segments and experience the destination in advance.
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