DISRUPTION IN TOURISM

DEFINITION
Disrupt : to interrupt the normal course or unity of… (Miriam Webster
Dictionary)

Disruptive Innovation
A process by which a product or service takes root initially in simple applications
at the bottom of a market and then relentlessly moves up market, eventually
displacing established competitors (Christensen , 1997).
….innovations that make products and services more accessible and affordable,
thereby making them available to a much larger population.

Disruption
Disruptive behavior/Disruption  the new technology lead to, or have the
potential to cause change in society, and as such cause disruptions without
question (Liversidge, 2015).
 DEFINITION
Innovation

The new introduction of something new or a new idea ,method, or device (…

(Miriam Webster Dictionary).

The ability to apply creative solutions to problems or opportunities to enhance or

to enrich people’s lives (Barringer et.al.2010)

Creative Destruction

Schumpeter‘s creative destruction (1883-1950) relates to “technological

innovations that lead the entrepreneur to enter a market and drive out
competitors as their new product make sold products obsolete (Plummer & Pe‘er,
2010)
2015-02-25 Evolution of
Technology 20
Timeline of
Communication
Technologies
FOUR ELEMENTS OF THE THEORY OF DISRUPTIVE INNOVATION (Christensen ,
1997).

Four important elements of the theory of disruptive innovation:

1. sustaining innovation
2. overshoot of customer needs
3. the emergence of a disruptive innovation to which incumbents have the ability to
respond, and
4. incumbent firms struggling as they are disrupted
Other factors making a company success or failure

1. legacy costs (e.g. trade legislation, labor contracts , health care and
pension provisions)
2. changing scale economies (e.g. because of new railroad facilitating
the distribution)
3. the laws of probability (because of their numbers, new entrants
. biggest winners)
would be the

What the company should do

1. Calculate the value of winning (evaluate the core competencies)

2. Leverage existing capabilities (expand to market & product dev)
3. Work collaboratively with other companies (working with new
entrants.
 The impact of disruption
• Democratization (eliminates barriers to
entry)
• Changes the rules of the game
• Accelerates innovation (products, services,
value chains, business models)
• Creates opportunities
• Creates threats
• Attracts the best and brightest
• Attracts entrepreneurs
• Attracts investment
8
Disruptive Technology
Democratization (eliminates barriers):
 Mail vs Texts
 iTunes vs CDs
 Tiki, GNE vs PT.Pos

9
The impact of disruption
 Markets are in flux due to technological advances
 The world is experiencing a continuous evolution
as:
 The marketplace is challenged
 New segments emerge
 The competitive landscape is redefined for entire
industries
 Technology is transforming everything about:
 The way businesses are run
 The way they interact with customers
The impact of disruption
This is all supported by social, mobile and cloud
technologies
 On the collective level: ‘positive’ change for
society
 On the individual level: often ‘negative’ change...
 Digital opportunity
 Not minor or temporary changes
 Creating exciting opportunities and solutions for
all industries
 Increasing efficiencies
 Improving access to customers
 Speeding up communication
 Opening up new markets
 Booster existing markets
For the future workforce
 Most business leaders expect their organisations to be
a digital business within 3 years (Accenture, 2015)
 Focus on equipping workforce with digital capabilities
 Graduates expected to have well-developed digital
capabilities
 To be ready running in a new job
 To become change agents within the organisation
Ten key digital skills for working as employers need
your:

1. Social Media

The ability to understand and utilize social media effectively is a

core skill every professional should have

2. Search Engine Marketing

Students with SEM experience will be able to increase the

visibility of a company’s website on a search engine (e.g., Google)
primarily via paid advertising. By doing so, the business will
attract valuable web traffic from the search engine results page.

3. Analytics

“If you can't measure it, you can't manage it.”

Data analytics essentially allow students to make educated and
data-driven decisions in their roles
Ten key digital skills for working as employers need
your:
4. Content Marketing

New hires need to understand the importance of creating not just

content, but content that is relevant to keyword research and
optimizing them in a strategy.

5. Email

One of the best ways to obtain and retain leads is via a tried and
tested method: email.

6. Mobile
Jobseekers can use this knowledge to their advantage by
optimizing campaigns to make use of the latest developments in
mobile search and user experience.
Ten key digital skills for working as employers need
your:
7. Strategy & Planning

By providing skills in how to plan and execute a digital strategy,

graduates seeking new roles will have a clear advantage over their
peers with little or no knowledge.

8. Social Selling

Social selling is the process of developing relationships as part of the

sales process . As social selling is proving its worth for sellers that use
it - 90% of top salespeople use social selling tools successfully - it is
becoming more and more important for new hires to have experience
using sales technologies.
Ten key digital skills for working as employers need
your:
9. Pay-Per-Click Marketing (PPC)

Pay-per-click marketing is a way of using search engine advertising to

generate clicks to your website, rather than “earning”
those clicks organically.

10. Video

Video with the reach and scope of digital advertising, markets can tap into
a growing market of engaged consumers.
As such graduates, job seekers and professionals should learn these key
skills to improve their odds of getting hired.
Disruption in tourism
1. Augmented and Virtual Reality (AR and VR):
Airlines have started using VR technology to show travellers the cabins in
advance, in order to increase ticket or ancillary services sales.

2. Artificial Intelligence (AI):

Thanks to AI, operations which usually require human intervention and a lot of
time to learn new skills, can be automated, thus speeding up processes, while
improving quality and performance, and decreasing costs.

3. Internet of Things (IoT):

Lufthansa passengers can track their baggage via a link found on their mobile
boarding pass in the Lufthansa app.
Disruption in tourism industry
4. Voice Technology
Customers switch from typed-in search to voice interactions. More and more
hotels have started experimenting with voice-activated devices.

5. Wi-Fi connectivity.
When travelling, people want to always be connected, either to get destination
ideas, options regarding places to visit or eat, find directions to points of
interest, or share their experience with friends via social media or other
connectivity platforms.

6. Wearable devices
Companies are using this technology to offer customers a more personalized
and united experience.
 TRENDS IN THE MICE INDUSTRY

1. Advanced technology:
High speed internet connectivity, sophisticated audio-visuals and
automation, use of virtual assistants, web casting, live streaming and
video conferencing

2. Enhanced Connectivity:
Thanks to social platforms like Facebook, LinkedIn, Twitter etc, people
are able to build and maintain connections even before and after the
events.

3. Location Flexibility:
Outdoor locations like old mills, caves, boats, farms, beaches are
on offer each bringing with it a unique flavor. Likewise, in the
indoor spaces: sensory lounges, recreational rooms
4. Catering:
Food and catering is an integral part of any successful
event. Employs innovative and novel concepts to delight the guests.

5. Social and Environmental Impact:

Donating excess food, leaving minimal carbon footprint and saving
energy resources. Hosting event with the local culture and
geography.

6. Event legacy:
Added infrastructure, developing of interest among locals about the
topic of event, in increasing the popularity of region, or even through
talks by experts who would otherwise be inaccessible to the local
community
7. New event formats:
More interaction and involvement from the audience, learning and
information exchange sessions where delegates play a highly vocal
role.