Travel and Hospitality
Digital transformation in the travel industry: Shaping the future of tourism
The days of queuing for tickets, flipping through travel brochures and guidebooks, or spending hours at a travel agency are now relics of the past. The travel industry has been a pioneer in embracing innovation and has been reshaping itself through technology – even before many sectors caught on. As a result, digital transformation in tourism is now empowering travellers and businesses alike to research, plan, and book their journeys in just a few clicks. This shift towards digital transformation is showing no signs of slowing down. The digital travel market is booming – and is set to surge from $484.18 billion in 2025 to $812.56 billion in 2029, growing at a CAGR of 13.8%. Behind this growth lies a wave of innovation reshaping the way travel companies operate and deliver value.
Digital transformation in the tourism business
Technology is no longer just an enabler but rather a central force redefining how the tourism industry connects with travellers and manages operations. From hyper-personalised marketing to intelligent automation, digital transformation in business is helping tourism companies become faster, smarter, and more agile.
This transformation is driving four major changes:
Smarter communication with travellers
Real-time communication tools, chatbots, and multilingual support platforms are helping tourism businesses deliver timely, consistent, and localised interactions. Whether confirming bookings, addressing concerns, or updating itineraries, efficient communication fosters trust and loyalty.
Hyper-personalised marketing
Leveraging data-driven insights, travel companies can segment audiences precisely and tailor experiences accordingly. Personalised deals, targeted content, and dynamic pricing models have now replaced generic campaigns, resulting in stronger engagement, higher conversions, and deeper customer relationships.
Elevated travel experiences
Modern travel management systems support immersive, tech-enabled journeys. From mobile check-ins to digital tour guides, technology streamlines every touchpoint, creating seamless experiences that cater to both leisure and business travellers.
Operational efficiency at scale
Solutions like automation, cloud-based tools, and integrated platforms are simplifying backend operations, reducing manual errors, and improving decision-making. As a result, businesses can do more with less, scale faster, and focus on service quality.
Infosys BPM enables tourism businesses to leverage these changes and navigate the digital disruption with confidence. With tailored travel management systems and hospitality loyalty solutions, businesses can enhance customer loyalty, optimise operations, and embrace innovation. Domain expertise and next-gen solutions of Infosys BPM ensure a future-ready digital foundation for travel and hospitality businesses.
Trends defining the future of tourism
Emerging technologies continue to push the boundaries of what is possible in the travel industry. Here are six key trends shaping the next wave of digital transformation in tourism:
Data-driven personalisation through big data
Tourism businesses collect vast amounts of customer data across channels. With big data analytics capabilities, modern travel management systems can turn this into actionable insights for dynamic pricing, behavioural targeting, and personalised recommendations. This level of personalisation is key to boosting customer satisfaction and driving repeat business.
Seamless travel experiences with IoT
The Internet of Things (IoT) connecting devices across the travel ecosystem is a key digital transformation in tourism, shaping the experiences of modern travellers. Smart luggage tags, location-aware apps, and connected airport systems offer real-time updates, personalised alerts, and effortless navigation. With this, IoT enables convenience, enhances safety, and improves operational visibility for travel companies.
AI-powered journey planning
Artificial intelligence is leading the charge in transforming how travellers plan and manage their trips. From chatbots recommending destinations and helping design itineraries to companies leveraging route optimisation and automated support, AI algorithms are redefining journey planning. Solutions like voice assistants, smart bots, and AI concierges deliver on-demand, personalised service that can save time and enrich the journey.
Immersive exploration through VR
With immersive virtual reality solutions, travellers can “try before they buy”. From hotel walk-throughs to 360° destination previews, VR builds confidence and excitement before booking the journey. Travel companies often use this immersive experience to engage users, reduce booking hesitation, and increase conversion rates.
Always-on access with mobile technology
Digital native, mobile-first travellers expect instant access and flexibility. From booking platforms to interactive destination guides, mobile apps and omnichannel marketing are helping drive discovery and conversion, ensuring tourism services are always within reach.
Trust and transparency with blockchain
Blockchain introduces new levels of transparency in travel management systems, ensuring secure bookings, streamlining payments, and enhancing fraud protection. Decentralised ledgers can support loyalty programs, enhance identity verification, and ensure secure transactions for high-trust travel experiences.
Technology is continually reshaping the tourism industry – from backend operations to end-to-end traveller management. As new tools and platforms emerge, embracing digital transformation in business ensures a competitive edge and survival. The travel industry stands at the interaction of innovation and experience, with digital transformation in tourism leading the way and shaping the future of tourism.
