Adaptability among inbound tour operators in a disrupted business environment

Abstract

The acceleration of technological innovations is reshaping service industries, including the travel business. As competitive forces intensify, inbound tour operators face the challenge of adapting to both revolutionary technologies and business model innovations as they develop destination product offerings ushering a smarter tourism ecosystem. This paper explores how inbound tour operating businesses are being impacted by technology‐enabled innovations and proposes strategic responses to the disruptions affecting their businesses. The investigators addressed this gap through immersion in relevant industry communities involving participant observations and in‐depth interviewing. The authors examine prevailing and emerging models of inbound tour operations, drawing upon the service‐dominant logic framework and placing particular emphasis on value propositions. The present study formulates a comprehensive value co‐creation framework encompassing tourism industry stakeholders, which involves assessing their value propositions and creating focused R&D initiatives that are customized to market needs. It is essential to modularize in‐destination services to enable mass customization of travel experiences and to encourage value co‐creation that empowers travelers.