C/T/29. An Analysis of Technological Convergence Developments and the Implications for the Tourism Industry

This paper discusses the changes that have been brought about by developments in technology leading to increased convergence of technical products and services and the implications this has had on the tourism industry. It has been found that the internet in particular has had a dramatic impact on the industry in the opportunity that the internet has given to consumers to search, design and purchase holidays. The main users of the internet are the SEG A,B and C1, third age employed group and retirees who are either time poor, cash rich or time rich and are selecting many last minute short holidays in addition to exotic holidays purchased direct. Technological convergence has also given the industry opportunities for reducing costs in booking in and increasing the level of service given to the customer. Traditional tour operators and travel agents have had to reappraise the manner in which they operate in order to compete with the on line tour operators and the direct competition from hotels and airlines and other services.