AR/VR in Tourism Industry Market - Introduction
- Adoption of AR/VR technology in the travel & tourism industry plays an important role in influencing the choice of travelers and customers. AR/VR technology provides a virtual tour demo of a location and places which helps to enhance the customer experience. Solution providers are offering different digital platform solutions for the tourism industry for hotel selection & reviews, travel booking, transportation bookings to improve the decision-making process.
- Travel companies are investing in digital technologies and AR/VR technology to increase awareness about different tour plans and tourist places that increases the penetration of AR/VR solutions among users. Travel companies are investing in AR technology-based digital walls and AR/VR headsets, which provide real-life experiences to customers and offers more information about places or tourist spots. Most large hotel chains provide an AR screen in every room so guests can check out all nearby tourist spots by using their phones.
- Companies and hotels are adopting a try-before-you-buy marketing strategy by providing 360-degree videos and photos of their hotel spaces that increases the conversion rate of potential customers.
Key Drivers of AR/ VR in Tourism Industry Market
- Increasing adoption of digital technology to provide real-time tour experience to customers for tour and travel booking is expected to drive the market growth. Increasing consumer spending on AR/VR technology is expected to set a new trend of digital tours in the tourism industry. Increasing awareness about new technologies among users and guests is expected to create new revenue opportunities for solution providers and encourages the development of advanced solutions for the tourism industry.
Lack of awareness and low rate of adoption in small enterprises and developing countries to hinder the market
- Lack of awareness and low rate of adoption of AR/VR technology in underdeveloped and developing countries are key factors that restrain the AR/VR in tourism industry market.
- Small travel companies and agencies have budget constraints while investing in advanced digital solutions in the travel and tourism sector, which is also expected to hamper the AR/VR in tourism industry market.
Impact of COVID-19 on the Global AR/ VR in Tourism Industry Market
- Increasing cases of COVID-19 in different regions leads to negative growth of the tourism industry. Most countries have closed their borders for travelers and tourists to control the pandemic situation. Travel & tourism service providers have also changed their business policies during the COVID-19 period to face similar future challenges. Tourism companies have reduced investment in advanced digital technologies due to low return on investment and low customer flow for travel bookings.
- Demand for AR/ VR in the tourism industry is decreasing during the COVID-19 lockdown situation due to low investment by travel agencies on advanced technologies; however, it is likely to show better growth during the forecast period due to the increasing dependency of companies on digital platforms.
North America to Hold Major Share of the AR/ VR in Tourism Industry Market
- North America holds a prominent share of the AR/ VR in tourism industry due to the presence of key solution providers and increasing investment by travel companies on advanced tools and technologies to improve the customer experience in the region.
- The travel & tourism industry in Asia Pacific is expected to expand the fastest during the forecast period due to increasing government initiatives to promote and support the travel & tourism industry. Local players are increasing investment in travel & tourism technologies to enhance their market share.
Key Players Operating in the Global AR/ VR in Tourism Industry Market
- HTC Corporation
HTC Corporation is a leading global company that offers smartphone, virtual reality, and connected technology. The company recently introduced VR headset HTC Vive with a combination of input controller to enhance the 360 VR experience.
- Microsoft Corporation
Microsoft Corporation engages in the development, manufacture, licensing, marketing, and sale of software, personal computers & services, and consumer electronics. The company recently launched its mixed reality head mounted display, which provides holographic augmented reality that provides viewers an enhanced experience of AR.
Other key players operating in the global AR/ VR in tourism industry include Apple Inc., Google, LLC, EON Reality, Inc., Dell Technologies Inc., and Barco N.V.
Global AR/ VR in Tourism Industry Market: Research Scope
Global AR/ VR in Tourism Industry, by Component
- Implementation & Training
- Consulting & Support
Global AR/ VR in Tourism Industry Market, by Application
- 3D Modelling/Design
Global AR/ VR in Tourism Industry Market Segmentation, by Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
- Digital Transformation in the Travel & Tourism
- Tourism Industry Digital Marketing Solutions
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.