Insights - Technological

Many technologies have an influence over travel demand and the supply of travel services and supporting infrastructure.

Air services and other transportation play an important role in facilitating travel.  Aircraft technology will continue to play a large role in tourism development.  New aircraft built with new materials lead to larger aircraft types with better per seat economics (eg the Airbus A380) or to longer range aircraft or to aircraft that operate with better economics (and lower noise) than the older aircraft they replace.

The convergence of mobile telecommunications, computers, the internet and the establishment of the Low Cost Carrier (LCC) has had a profound impact on the travel sector.  Increased booking via the web has helped the LCCs to access a wide market, reduce distribution costs and steal market share from the full service carriers (FSCs).  Destinations have been able to distribute their product widely countering the growing production and distribution costs that prevailed in the pre-internet era.

The growing penetration of the internet does pose some threats for travel.  The use of Skype and other forms of mobile personal communications, along with improvements in the technology of video-conferencing, could reduce the frequency of travel for business.  However it is also possible that the new forms of communication open up the potential for greater contact then would previously have been possible.  This may, in turn, lead to an increase in the need for travel.

 

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