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Technological Innovations in Tourism

Posted on September 27, 2022

Today is World Tourism Day! Tourism is a vital part of the UK’s economy, generating £106 billion annually and providing 2.6 million jobs.  By 2025, UK’s Tourism industry is expected to be worth over £257bn, becoming 10% of the UK GDP.  Technology across industries has evolved hugely over the last decade, including in the Tourism sector.  TravelTech and Technological innovations in Tourism have advanced the sector greatly, increasing globalisation and connectedness, moving towards a seamless travel experience.  TravelTech refers to the digitalization of the travel and tourism industry.

Companies in Tourism that have undertaken Research & Development (R&D) to overcome sector challenges are likely to qualify for R&D Tax Credits as a result.  R&D Tax Credits are a government incentive to boost innovation across UK industries.  Many companies qualify by researching and developing ways to overcome technological advancements in Science and Technology, such as developing new or existing products, services, or processes.  By performing eligible activity, your business will receive financial support in the form of R&D Tax Credits – either a tax refund or a reduction in your corporation tax bill.  Costs can claim back for include staffing, subcontractors, software, and material.

Examples of R&D activity/technological innovations in Tourism could include:

Travel Apps

Travel Apps that help tourists easily navigate new areas, such as Citymapper.  Through the use of big data, Citymapper shows users travel updates in real time, displaying the fastest and safest routes.

Flight Price Comparison

The use of Big Data to scan the cheapest flight prices for comparison sites and apps, like Skyscanner and Kayak.  Big data allows these sites to continuously update.  These save users time and money by instantly showing best prices available. They also offer the option to set up email alerts.

Travel Chatbots

Another example of technological innovations in Tourism is chatbots.  Chatbots are online chat facilities programmed to replicate a human advisor, allowing the user to converse with them like they would a human.  Travel chatbots are becoming increasingly popular in the Tourism industry.  They enable customers to seek help and ask questions about their bookings on travel sites and apps.  ‘Lola’ (standing for longitude and latitude) designed by Kayak’s Co-founder Paul English is a great example of a travel chatbot.

VR and AR

Virtual Reality (VR) in the form of immersive travel films to allow people to ‘try before they buy’.  This means holiday shoppers can experience different locations through VR technology before booking.  An example of this includes TUI’s trial of Augmented Reality in some of their holiday package experiences in Mallorca, where users can visually learn about historical facts and stories.  They also equipped multiple TUI stores with VR goggles for potential holiday buyers to experience different locations before booking.

These are some pretty big examples of technological innovations in Tourism, but not everyone who is eligible for R&D Tax Credits is undertaking projects of this scale.  If your business is conducting activity or research to overcome sector challenges or uncertainties, you are likely to be eligible.  So don’t miss out on this fantastic opportunity to receive a financial boost, join the 85,900 businesses who have already claimed!

Contact us today to start your journey with Green Jellyfish.