Rethinking Indian Tourism: Building a Future-Fit Industry through E-Tourism

This study examines the current status of Indian tourism, its broad trends and patterns, and proposes a shift towards e-tourism as a means to build a future-fit industry.

1. Method of Reasoning:

The travel industry is a significant business sector that caters to the needs of individuals traveling and residing outside their home communities for business or leisure purposes (WTO, 2016). Its multidimensional nature encompasses physical, social, cultural, economic, and political dimensions. Globally, the tourism industry ranks as the second-highest revenue-generating industry, attesting to its immense significance. Governments worldwide have acknowledged the tourism sector's potential for economic development and employment generation. Notably, France tops the list of the most visited countries globally, with 85 million annual visitors, followed by the United States with 70 million and Spain with 61 million (UNWTO, 2017).

The tourism industry plays a crucial role in facilitating visitors to learn about the culture, customs, language, and lifestyle of local people. In India, the economic significance of tourism cannot be underestimated, as it benefits the people living in and around tourist centers. Currently, India ranks 41st in the world in terms of foreign tourist arrivals, with 7.68 million visitors, and witnesses annual growth rates of 10.2% and 11.9% for foreign and domestic tourists, respectively (Ministry of Tourism, 2014). The tourism sector has become a vital component of India's economy, contributing significantly to the country's sustainable development.

1. The Ministry of Tourism of the central government and state governments' tourism departments are making concerted efforts to attract foreign tourists to India. According to the World Travel and Tourism Council, this sector currently generates over 4% of the country's GDP and more than 20 crore jobs. The tourism industry is expected to generate 13 billion economic activities currently and projected to grow to $35.08 billion by 2025. The Indian tourism industry is one of the most profitable industries in the country and is credited with contributing a significant amount of foreign exchange.

2. However, despite registering significant development over the last two to three decades, the potential for growth in the tourism industry in India has not been fully realized, and much more is left to be desired. Ensuring the safety and security of tourists is of paramount importance, as it significantly impacts the inflow of foreign tourists to the country. In this regard, India's ranking of 74 out of 140 global economies on safety and security parameters, according to the World Economic Forum's Travel and Tourism Competitiveness Report 2013, is a cause for concern.

3. Furthermore, a sector that is expected to increase forex by Rs. 5000-12434 crore by 2014 cannot sustainably function with mediocre infrastructure facilities. The lack of integration between domestic and international tourism, coordination between modes of transport and communication, is consuming people's time and money and requires urgent attention.

4. The proliferation of online platforms has emerged as a challenge, particularly for small and medium-sized tourist enterprises that lack adequate skills and knowledge in website efficiency. Thus, it is imperative to address these issues to build a robust and sustainable tourism industry in India.

1.2 Purpose of the study:

The purpose of this study is to analyze the potential impact of various factors, namely human, geopolitical, economic, technological and environmental, on the future of global tourism. As the world becomes more connected in terms of economy and innovation, the adoption of new technologies and the emergence of digital tourism may lead to significant changes in the industry. It is essential for the tourism sector to position itself as an early adopter of emerging ideas and technologies, and to develop new market strategies to strengthen its global competitiveness. This paper aims to examine the key issues that are likely to shape the future of tourism in India, and to explore the potential implications of these trends on the industry's development.

1.3 Research Questions:

The rapid evolution of digital technology from being a mere driver of peripheral efficiency to an enabler of growth and disruption is undeniable. The main objective of this research is to assess the characteristics that society will possess in the near future and how they will impact the leisure and tourism

1.4 Aims:

The convergence of innovation and travel is a widely recognized and accepted phenomenon. This amalgamation also plays a crucial role in shaping the way we travel - from the destination we choose, to the activities we engage in, and even the post-travel phase. In fact, it has become so ubiquitous that, as per a Google Travel survey, 74% of travelers plan their trips online, while a mere 13% continue to rely on travel agencies for such purposes. The Indian economy relies heavily on traditional sectors, with tourism being closely associated with heritage and culture. Therefore, there is a need to promote alternative forms of tourism in order to attract high-spending tourists.

2. Technique:

The proposed research will comprise of three distinct sections, which are delineated as follows:

Section One: In this section, the guidelines that will shape the future of the global travel industry for all stakeholders will be defined and detailed. This will encompass the infrastructure, firms, associations, destinations, and institutions involved in the industry. These guidelines will be internally consistent, lucid, and logically justified.

Section Two: The subsequent section will entail identifying the drivers or factors that influence the industry, as indicated by the PESTEL analysis. These market indicators will be fundamental components of the technological and corporate strategies that are employed.

Section Three: The final section will focus on mapping and identifying the key trends or factors that will undoubtedly impact the industry in the future. This approach will strive to envisage a plausible future in the midst of these monumental changes.

2.1 Part One: Micro Shifts

The advent of the modern computer in 1936 was a landmark achievement that revolutionized the world in ways that were unforeseen at the time. The impact of computers transcends the confines of business and industry, and extends to the point where it is capable of uniting the world under the rubric of binary systems and algorithms. Furthermore, the advent of the internet and its ability to interconnect machines that engage in transactions with one another, in addition to connecting individuals through social media and applications, has underscored its significance in society.

2.1.A Artificial Intelligence:

The integration of historical data with modern AI algorithms enables travel companies to predict when and where travelers should go and generate personalized advertisements, thereby boosting sales. Hotels are increasingly employing such "assistants," with the emergence of AI-powered assistants that are specifically designed for this purpose. IBM's Watson Assistant is an example of such an AI-powered assistant that creates an interactive and personalized experience for consumers. The study "When Will AI Exceed Human Performance? Evidence From AI Experts," conducted by researchers from the Future of Humanity Institute at Oxford University and Yale, identified the stages in which experts predict that AI will outperform humans in various tasks. The researchers surveyed 1,634 experts, of which 21% responded. They predicted that Artificial Intelligence would surpass humans in certain tasks in the coming years. However, the reality is much more complex, and there is still much to learn and experience in terms of what Artificial Intelligence has to offer, and even more so for machines to replace humans.

2.1.B Internet of Things:

The Internet of Things (IoT) is an innovative solution that interconnects objects through internet-enabled sensors, enabling the exchange of information among them. This technology's growth and potential are remarkable, and experts predict that by 2019, there will be 26.6 billion IoT-powered devices worldwide. The travel industry is expected to benefit significantly from the Internet of Things (IoT), with the integration of internet-enabled sensors within various entities, such as vehicles, luggage, buildings, and more. For instance, some Virgin Hotel properties provide an application to their clients that allows them to interact with the room's thermostat or control the TV in the room. Additionally, there are smart luggage systems that enable users to track their bags' location using their smartphones, reducing the likelihood of losing them at airports or other public places.

2.1.C 5G:

With the advent of 5G networks, travel technology has become even more powerful. 5G networks offer significantly faster loading and downloading speeds, wider coverage, and more stable connections. In addition to downloading content multiple times faster than previously possible, 5G allows for the development and deployment of technology that was limited by 4G. This means that the connection between smart devices will be increasingly efficient, and we will be able to fully realize the potential of the Internet of Things (IoT). Immersive tourism, in which technology turns travellers into the heroes of their experiences, will become a reality. Moreover, augmented reality (AR) or 360° video will become increasingly ubiquitous and accessible. In a test project run by the BBC, 5G and an AR application were utilised at the Roman Baths in Bath, England, enabling users to go back in time to experience key moments in the site's history. The pilot testing, as seen in this video (https://www.youtube.com/watch?v=OC4rER-BFZo), revealed that over 80% of participants reported that they would be more likely to visit a museum if it offered such an experience.

2.1.D Wearables Technology:

The usage of wearable technology is no longer limited to tech enthusiasts who flaunt it on their collar. It has become a reality for billions of people around the globe. Furthermore, the travel industry is expected to gain significant benefits from wearable technology. Wearable devices are designed with consumer convenience in mind, and their primary goal is to enhance the overall experience of the traveler. For travel, wearable devices act as a small screen that can perform many of the same functions as a smartphone. Ticket updates, reservation information, gate updates, QR codes, and all the related information that fills a traveler's journey would be available right there on the wrist.

2.1.E Blockchain:

Blockchain is a technology that has the potential to transform the world as we know it. Although it is mainly associated with finances, it also appears to have an impact on travel. The data stored on the blockchain network is secure, identifiable, unchangeable, and transparent. Thus, blockchain will add security and guarantees to our industry in a way that, while invisible to the user, will allow for soluble operations. While there has not been much experimentation with it, it is possible that it will be useful in identifying travelers at the airport, transparency in travelers' opinions, ensuring contractual hiring conditions for my trip, my credit profile, verifying my identity, booking a ticket.

2.1.F Big Data Analytics:

A traveler leaves behind a vast amount of data from multiple devices and channels at various stages including planning, research, price search, booking, cancellation, and feedback. New players, as well as old vendors in the travel space, are looking for innovative ways to leverage the data generated from consumers to offer them more targeted and ultimately profitable products and services. To identify travel patterns, consumer trends, and business opportunities, a sound Big Data Analytic strategy has become essential. The industry has realized the capabilities of big data analysis on the collection, speed, veracity, and volume of travel data to obtain meaningful business insights. Many players in the travel sector have already adopted big data analytics to deliver real-time, personalized, and targeted travel experiences.

2.2 Part Two: Global Drivers or Factors:

The current state of the global economy and geopolitics is being questioned, which can potentially impact the tourism industry. The recovery of competition in the sector, the growth of emerging markets such as China, and political decisions in significant countries such as the United States are creating opportunities for travelers to explore destinations other than the US. Global drivers or factors play a crucial role in the travel industry, and their interdependent relationship with the principles analyzed in Part One defines the critical future factors and trends.

2.2.A Political Factors: In the past decade, political factors such as economic crises, lack of political leadership, and security issues have negatively impacted the tourism industry. However, India, with its stable democratic government, has been able to open its borders to foreigners, making it easier than ever to travel to the country. Despite some countries being difficult to access for political reasons, India's tourism industry remains stable due to its specific Ministry of Tourism, which devises plans and strategies for the welfare of the industry. India has also worked towards establishing a brand image for itself in the past decade, thereby addressing its lack of international representation.

2.2.B Economic Factors: The current state of the global economy is uncertain due to Brexit, rising public debt, fluctuating oil prices, Trump's trade policies, lack of global vision, protectionism in the global trade system, and the COVID-19 pandemic. The sharing economy has also impacted the travel industry by providing alternatives to traditional travel accommodations, such as hotels and resorts, through services like Airbnb. Additionally, Uber has created a reliable transportation option for travellers, making travel more accessible.

2.2.C Socio-Cultural Factors: India's diverse society, with a plethora of languages, cultures, traditions, and cuisines, makes it an ideal destination for cultural and heritage tourism. The country's rich and vibrant history can also attract culture enthusiasts and scholars for further exploration and study. As a result of British rule for 200 years, English has become an integral part of India's education system, and most people can communicate and understand English, providing an added advantage over its neighboring peers in attracting foreign tourists. Another positive socio-cultural factor is the increasing acceptance of people from different races and religions worldwide, making travel a much more comfortable experience.

2.2.D Technological Factors: India's booming IT and outsourcing industry has led to a growing number of business trips made by foreigners to the country, who often add a weekend break or longer holiday to their trip. However, for the success of the tourism industry, a country must have state-of-the-art transportation facilities, including an efficient transportation system that can help transport large volumes of people and goods in a cost-effective, fast, and comfortable manner. Due to its vast population and recent opening up of the economy, its transportation system is still not up to international standards.

2.2.E Legal Factors: The ability to use data will depend on the legal ability to use it and the rejection of its use for purposes other than its original intentions. Therefore, data management, control, and oversight will be of utmost importance in the new environment. Eco-tourism policies and regulations have been developed by the government in consultation with the industry and are being implemented on a voluntary basis.

2.2.F Environmental Factors: A factor that should be observed and considered as a threat is climate change, which is altering supply and demand increasingly dependent on environmental change and natural resource management that does not understand the waste of resources and penalizes water resource mismanagement. In addition to pollution on a global level, tourism can also cause pollution on a local level. In some cases, visitors may be less aware of a destination than of their hometown, leading them to litter or degrade the environment.

The travel industry in India is influenced by a multitude of positive political, economic, and socio-cultural factors. The opening up of borders, stable governments, and tax incentives are among the political factors that have contributed to the growth of tourism in India. Economic factors such as the rise in disposable income and the emergence of the sharing economy have also made travel more accessible to a wider audience. The use of social media and increased racial acceptance are examples of the socio-cultural factors that have helped to further promote tourism in the country. These positive elements have collectively contributed to the growth and development of the tourism industry in India.

2.3 Part Three: Key trends or variables for the future:

In this section, we will examine the key trends and variables that are expected to shape the future of the travel industry, with a focus on cultural and social factors, technological advancements, and environmental responsibility.

2.1.A Values Go Global:

The globalization of capital markets, along with rapid technological advancements and changes in political and social spheres, has contributed to an increasing divergence in prevailing values between developed and developing nations. This has implications for the travel industry, as consumer preferences and expectations may differ depending on their cultural background and societal values.

2.1.B Environmental Responsibility, Consciousness & Governance:

1. Environmental responsibility and consciousness have become critical factors for the travel industry, as consumers demand sustainable and eco-friendly travel options. Many travel companies have responded to this trend by implementing ambitious programs to reduce the use of single-use plastics and promoting the use of recyclable materials. Consumers have also expressed a willingness to engage in activities that offset the environmental impact of their travel, such as participating in beach cleanups.

2. To ensure responsible and sustainable tourism practices, the World Tourism Organization's Global Code of Ethics for Tourism serves as a guiding framework for businesses and communities in reducing the industry's negative impact on the environment, cultural heritage, and society.

3. The United Nations 2030 Agenda for Sustainable Development provides a transformative vision for achieving economic, social, and environmental sustainability over the next 15 years. This agenda is expected to shape policies and strategies for sustainable tourism practices and is likely to have significant implications for the travel industry. A travel company's ability to incorporate these ethical and sustainable practices will be crucial for remaining competitive in the global tourism market.

2.1.C Innovative Experience Design:

Studies presented at the 2018 World Travel Market London have shown that travelers from all over the world are seeking unique and unconventional experiences that go beyond the usual tourist attractions. Destinations are therefore presented with an opportunity to create new products that are imaginative, appealing, easily accessible online, and yet never seen before. Having resources, no matter how good they are, is not the same as having a product. The central tenets of Design Thinking are people-driven, highly collaborative, and iterative, allowing for quick failures and early iterations. Canadian retreats like Nimmo Bay Wilderness Resort have developed their own hospitality formula: E2=MC (Exceeded Expectations = Memories Created). Similarly, the Northern Edge Algonquin includes at least one of the following elements in the activities it programs for guests: optimism/dreams, creativity, adventure, immersion in the community, celebration, and nature.

2.1.D Contextual Personalisation with Bots:

Traditional market research is no longer adequate in today's business world, given the rapid impact of globalization and digital culture. Focusing solely on what is already known about customers risks overlooking their true value, which lies in their present and future worth. Research based on habits and usage is no longer valid. Instead, a shift towards addressing customers' needs is necessary. Defining buyer personas places the customer at the center of the analysis, and attempting to connect with them, their environment, and their circumstances are key to personalization. Japan Airlines has launched a hyper-personalization program that utilizes new technological solutions to enhance the customer experience at every touchpoint. Artificial intelligence is applied to answer queries and assist customers through the use of bots and robots, while facial recognition technology improves the customer experience during check-in, security, and boarding.

In conclusion, it is evident that the travel industry is currently experiencing significant changes and advancements in technology that are transforming the way people travel. With the increasing use of innovative transportation methods such as flying vehicles, the Hyperloop, and space travel, the industry is presented with immense opportunities for growth and development. However, to capitalize on these opportunities, it is crucial for the industry to prepare and adapt to the challenges that lie ahead. As such, it is essential to incorporate technology into travel and tourism marketing strategies to enhance the travel experience for customers. By doing so, the industry will be able to advance further and establish itself as a leader in the global tourism market. Thus, it is critical for stakeholders in the travel industry to embrace innovation and leverage technology to unlock the industry's full potential.