Strategic Management of Digitalization in Travel Agencies

Abstract

By applying information technologies and digital tools, the business of travel agencies is transformed, becoming more efficient, more competitive, and providing richer experiences to clients. The purpose of this research is to contribute to the strategic management of digitization in travel agencies in order to improve the business resilience of the tourism industry in developing countries. Scientific research is based on the application of qualitative methods and techniques. The research method was interviewing, using a structured questionnaire, data and information were collected, while the case study method was used to analyze the business situation of the Travel Agency „Aero Turs” (TAAT) from Serbia. The research results indicated that the process of digital business transformation is taking place successfully according to the initial strategies of Digital Spin-off (inside out) and Internal Digital Hub (inside in) and very successfully according to the initial strategies of Ecosystem Development and Digital Joint Venture (competence in). From the aspect of service design philosophy, travel agencies in developing countries devote most of their time to systematic and regular monitoring of the development of parts of their business model, application of agile principles in project management, appreciation of employees' ideas, and creation of an environment for the development of the best ideas into new business opportunities for the agency, and encouraging innovation. From the aspect of digital leadership and communication, travel agencies devote the most time to entrepreneurial thinking, a “fail fast” culture, cross-functional cooperation, transparent, goal-oriented communication, and cooperation between internal experts. The research concludes that it is necessary to strategically plan and manage the processes of digital transformation of the business of travel agencies. A systemic approach to capacity building and the introduction of digitization in travel agencies is recommended for more efficient and effective development of the tourism industry in developing countries.