SlideShare ist ein Scribd-Unternehmen logo
1 von 20
Downloaden Sie, um offline zu lesen
  1	
  
	
  
‘How	
  technology	
  is	
  affecting	
  
job	
  creation	
  in	
  the	
  Travel	
  and	
  
Tourism	
  industry’	
  
	
  
	
  
	
  
	
  
	
  
Innovation	
  in	
  E-­‐Business	
  and	
  Mobile	
  
Commerce	
  
BSc	
  Business	
  (Top	
  Up),	
  Brighton	
  University	
  
IT383	
  
Pilar	
  Pérez-­‐Salinero	
  
25th
	
  April	
  2016	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
   	
  
  2	
  
Table	
  of	
  Contents	
  
1.0	
  Introduction	
  ..........................................................................................................................	
  3	
  
1.1	
  Aim	
  ....................................................................................................................................................	
  3	
  
1.2	
  Objectives	
  ........................................................................................................................................	
  3	
  
2.0	
  Literature	
  Review	
  .................................................................................................................	
  4	
  
2.1	
  Technological	
  Evolution	
  ...............................................................................................................	
  4	
  
2.2	
  Jobs	
  most	
  affected	
  by	
  Technology	
  ..............................................................................................	
  5	
  
2.3	
  The	
  Middleman	
  ...............................................................................................................................	
  7	
  
2.4	
  The	
  Middleman	
  in	
  the	
  Travel	
  Agency	
  ........................................................................................	
  7	
  
3.0	
  Identifying	
  a	
  Pattern	
  ............................................................................................................	
  7	
  
4.0	
  Recommendations	
  for	
  Leaders	
  ..........................................................................................	
  9	
  
5.0	
  Taking	
  action	
  in	
  the	
  Travel	
  and	
  Tourism	
  Industry	
  ....................................................	
  10	
  
6.0	
  Conclusion	
  ...........................................................................................................................	
  13	
  
7.0	
  References	
  ..........................................................................................................................	
  14	
  
8.0	
  Appendices	
  .........................................................................................................................	
  16	
  
Appendix	
  1	
  ..........................................................................................................................................	
  16	
  
Appendix	
  2	
  ..........................................................................................................................................	
  17	
  
Appendix	
  3	
  ..........................................................................................................................................	
  18	
  
Appendix	
  4	
  ..........................................................................................................................................	
  18	
  
Appendix	
  5	
  ..........................................................................................................................................	
  19	
  
Appendix	
  6	
  ..........................................................................................................................................	
  20	
  
	
  
	
   	
  
  3	
  
1.0	
  Introduction	
  
1.1	
  Aim	
  
The	
  aim	
  of	
  this	
  paper	
  is	
  to	
  evaluate	
  how	
  technology	
  is	
  affecting	
  job	
  creation	
  in	
  the	
  
Travel	
  and	
  Tourism	
  industry.	
  
1.2	
  Objectives	
  
This	
  topic	
  will	
  be	
  developed	
  through	
  a	
  number	
  of	
  objectives:	
  
• The	
  identification	
  of	
  some	
  technological	
  advances	
  since	
  the	
  Industrial	
  
Revolution.	
  
• The	
  rank	
  of	
  the	
  jobs	
  most	
  affected	
  by	
  technology.	
  
• The	
  investigation	
  of	
  the	
  disappearance	
  of	
  the	
  middleman	
  within	
  the	
  Travel	
  
and	
  Tourism	
  industry.	
   	
  
  4	
  
2.0	
  Literature	
  Review	
  
2.1	
  Technological	
  Evolution	
  
It	
  is	
  well	
  known	
  that	
  the	
  power	
  of	
  technology	
  is	
  everywhere,	
  and	
  that	
  it	
  influences	
  
the	
   way	
   businesses,	
   people	
   and	
   society	
   work.	
   According	
   to	
   McGinn	
   (1991,	
   p8)	
  
technology	
   is	
   “the	
   complex	
   of	
   knowledge,	
   methods,	
   materials,	
   and,	
   if	
   applicable,	
  
constituents	
   parts	
   used	
   in	
   making	
   a	
   certain	
   kind	
   of	
   technique”.	
   But	
   when	
   did	
  
technology	
  arise?	
  Having	
  in	
  mind	
  that	
  technology	
  is	
  the	
  use	
  of	
  scientific	
  knowledge	
  
to	
  solve	
  problems	
  (ATTC,	
  2010),	
  one	
  can	
  state	
  that	
  technology	
  existed	
  long	
  before	
  
the	
  modern	
  era	
  and	
  that	
  it	
  was	
  transforming	
  environments	
  as	
  far	
  back	
  as	
  the	
  species	
  
were	
  traced	
  (McGinn,	
  1991).	
  However,	
  it	
  was	
  not	
  until	
  the	
  Industrial	
  Revolution	
  that	
  
technological	
   advances	
   had	
   dramatic	
   consequences	
   in	
   terms	
   of	
   human	
   labour.	
  
Below,	
   Figure	
   1	
   shows	
   the	
   moments	
   in	
   history	
   that	
   highly	
   impacted	
   in	
   the	
   way	
  
people	
  worked	
  since	
  the	
  Industrial	
  Revolution.	
  
	
  
	
  
Figure	
  1:	
  Timeline	
  
	
  
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Time	
  
	
  	
  	
  1750	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1850	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1960	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1980	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2000	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Now	
  	
  	
  	
  	
  	
  Future	
  
	
  
	
  
	
  
	
  	
  	
  	
  	
  XVIII	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  XIX	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  XX	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  XXI	
  
	
  
	
  
	
  
	
  
In	
  the	
  end	
  of	
  the	
  XVIII	
  century	
  and	
  beginning	
  of	
  the	
  XIX,	
  the	
  world	
  experienced	
  a	
  
number	
   of	
   changes	
   due	
   to	
   the	
   Industrial	
   Revolution.	
   As	
   an	
   example	
   the	
   steam	
  
engines	
   that	
   replaced	
   water	
   mills,	
   or	
   the	
   windmills	
   (McKensey	
   Global	
   Institute,	
  
2013).	
  In	
  that	
  moment,	
  agriculture	
  was	
  the	
  principal	
  provider	
  of	
  employment;	
  and	
  
the	
  new	
  techniques	
  propelled	
  the	
  growth	
  of	
  the	
  economy.	
  Moreover,	
  the	
  Bessemer	
  
process	
  enabled	
  mass	
  production	
  of	
  steel	
  in	
  the	
  Second	
  Industrial	
  Revolution,	
  which	
  
accelerated	
  growth	
  and	
  innovation	
  (McKensey	
  Global	
  Institute,	
  2013).	
  Mechanised	
  
processes	
  took	
  over	
  what	
  artisans	
  were	
  producing	
  until	
  that	
  point,	
  and	
  as	
  a	
  result	
  
machines	
   replaced	
   several	
   positions.	
   Nevertheless,	
   even	
   if	
   these	
   events	
   caused	
  
considerable	
  changes	
  in	
  the	
  artisan	
  industry,	
  the	
  first	
  assembly	
  lines	
  in	
  the	
  late	
  XIX	
  
century	
  contributed	
  to	
  the	
  increase	
  of	
  employment,	
  as	
  more	
  workers	
  were	
  needed	
  
for	
  the	
  mass-­‐produced	
  items	
  (Benedikt	
  and	
  Osborne,	
  2013).	
  Additionally,	
  in	
  1860	
  
the	
  typewriter	
  was	
  invented	
  and	
  with	
  it	
  a	
  wave	
  of	
  mechanisation,	
  with	
  new	
  gadgets	
  
such	
  as	
  calculators	
  and	
  dictaphones,	
  both	
  predecessors	
  of	
  the	
  computer	
  (Benedikt	
  
First	
  
	
  Industrial	
  
Revolution	
  
Second	
  
Industrial	
  
Revolution	
  
Computer	
  
Revolution	
  
Industrial	
  
Robotics/
Automation	
  
Technological	
  
Revolution	
  
Steam	
  Engine	
   	
  	
  	
  	
  Mass	
  produced	
  steel	
   Internet/Computer/robot	
   Advanced	
  robotics/Intelligent	
  	
  	
  	
  	
  
software	
  systems	
  
  5	
  
and	
   Osborne,	
   2013).	
   This	
   office	
   machines	
   eliminated	
   copy	
   typist	
   occupations	
   and	
  
increased	
  the	
  demand	
  of	
  educated	
  workers.	
  In	
  terms	
  of	
  agriculture,	
  between	
  1930-­‐
1960s	
  the	
  Green	
  Revolution	
  took	
  place,	
  displacing	
  farmers	
  from	
  their	
  labour	
  (Autor,	
  
2014).	
   Moreover,	
   the	
   Computer	
   Revolution	
   began	
   with	
   the	
   development	
   of	
   the	
  
Internet	
   in	
   the	
   1990s.	
   In	
   the	
   following	
   decades	
   first	
   commercial	
   computers	
   were	
  
introduced,	
   industrial	
   robot	
   was	
   initially	
   used,	
   and	
   the	
   first	
   signs	
   of	
   e-­‐commerce	
  
were	
   recognized	
   (Benedikt	
   and	
   Osborne,	
   2013).	
   All	
   of	
   these	
   new	
   advances	
  
eliminated	
  repetitive	
  calculations	
  and	
  substituted	
  people	
  with	
  automated	
  machines,	
  
although	
  demand	
  for	
  clerking	
  workers	
  increased	
  significantly.	
  Throughout	
  history,	
  
different	
   technological	
   advances	
   shifted	
   some	
   professions	
   such	
   as	
   manufacturing,	
  
agriculture	
  and	
  artisans	
  to	
  management	
  and	
  service	
  positions.	
  Impacts	
  of	
  technology	
  
in	
  the	
  employment	
  of	
  the	
  XXI	
  century	
  remain	
  to	
  be	
  seen,	
  although	
  McKinsey	
  Global	
  
Institute	
  (2013)	
  has	
  elaborated	
  a	
  report	
  with	
  the	
  estimated	
  economic	
  impacts	
  that	
  
twelve	
  technologies	
  will	
  create	
  in	
  2025,	
  guiding	
  policy	
  makers	
  and	
  societies	
  for	
  the	
  
future	
  (see	
  appendix	
  1).	
  
	
  
Along	
   history	
   there	
   have	
   been	
   different	
   approaches	
   towards	
   technology.	
   First	
  
reactions	
  occurred	
  in	
  the	
  early	
  XIX	
  century,	
  when	
  a	
  group	
  of	
  English	
  artisans,	
  called	
  
the	
   Luddites,	
   manifested	
   their	
   fear	
   of	
   the	
   automation	
   of	
   textile	
   (Benedikt	
   and	
  
Osborne,	
  2013).	
  Some	
  authors	
  have	
  a	
  pessimistic	
  approach	
  towards	
  the	
  impacts	
  of	
  
technology,	
  overestimating	
  its	
  power	
  and	
  even	
  talking	
  about	
  an	
  Automation	
  Anxiety	
  
era,	
  and	
  irreversible	
  consequences	
  of	
  traditional	
  roles	
  (Autor,	
  2014,	
  Rotman,	
  2013,	
  
Hoar,	
  2015).	
  However,	
  other	
  authors	
  acknowledge	
  that	
  technology	
  destroys	
  certain	
  
jobs,	
   but	
   it	
   also	
   creates	
   other	
   positions	
   and	
   generates	
   new	
   skills,	
   with	
   a	
   re-­‐
adjustment	
  over	
  time	
  (Benedikt	
  and	
  Osborne,	
  2013,	
  Brynjolfsson	
  and	
  McAfee,	
  2012,	
  
Knowles-­‐Cuttler,	
  2014).	
  The	
  next	
  section	
  identifies	
  the	
  jobs	
  and	
  professions	
  that	
  are	
  
most	
  likely	
  to	
  be	
  threatened	
  by	
  technology.	
  
	
  
2.2	
  Jobs	
  most	
  affected	
  by	
  Technology	
  
This	
   section	
   identifies	
   the	
   jobs	
   most	
   affected	
   by	
   technology,	
   and	
   the	
   new	
   skills	
  
required	
  for	
  future.	
  However,	
  in	
  order	
  to	
  understand	
  why	
  the	
  events	
  were	
  like	
  they	
  
were	
  along	
  history,	
  an	
  explanation	
  is	
  offered	
  as	
  to	
  why	
  and	
  how	
  at	
  some	
  point	
  the	
  
occupational	
  skill	
  spectrum	
  tended	
  to	
  separate.	
  Moreover,	
  it	
  is	
  explained	
  how	
  the	
  
occupational	
  skill	
  spectrum	
  tended	
  to	
  separate	
  along	
  the	
  history.	
  
	
  
Since	
   technological	
   new	
   advances	
   and	
   tools	
   evolved	
   in	
   the	
   Industrial	
   Revolution,	
  
some	
  professions	
  have	
  ceased	
  to	
  exist,	
  such	
  as	
  skilled	
  artisanal	
  labour,	
  which	
  was	
  
replaced	
   by	
   unskilled	
   factory	
   labour	
   (Autor,	
   2014).	
   Some	
   examples	
   are	
   the	
  
blacksmiths	
  in	
  the	
  XVIII	
  century,	
  reduced	
  by	
  the	
  mass-­‐produced	
  automobile	
  plants;	
  
construction	
  workers	
  in	
  the	
  XIX	
  century,	
  replaced	
  by	
  mechanised	
  tools;	
  farmers	
  in	
  
the	
  XX	
  century,	
  displaced	
  by	
  innovative	
  powered	
  tools;	
  or	
  middle	
  skilled	
  workers	
  in	
  
the	
  XXI	
  century,	
  substituted	
  by	
  robots	
  and	
  intelligent	
  software	
  systems.	
  According	
  to	
  
Autor	
  (2014),	
  technologies	
  have	
  changed	
  the	
  type	
  of	
  jobs	
  available,	
  and	
  have	
  created	
  
other	
  type	
  of	
  tasks	
  necessary,	
  such	
  as	
  repetitive	
  production	
  jobs,	
  bookkeeping,	
  and	
  
clerical	
  work,	
  generally	
  provided	
  by	
  middle-­‐skilled	
  workers.	
  The	
  result,	
  according	
  to	
  
Autor	
  (2014),	
  has	
  been	
  a	
  polarization	
  of	
  the	
  workforce	
  over	
  the	
  last	
  several	
  decades,	
  
with	
  changes	
  in	
  employment	
  rates.	
  This	
  polarization	
  has	
  led	
  to	
  the	
  growth	
  of	
  low-­‐
education,	
  low-­‐wage	
  and	
  high-­‐education,	
  high-­‐wage.	
  Autor	
  (2014)	
  strongly	
  believes	
  
that	
  automation	
  is	
  linked	
  to	
  job	
  polarization.	
  
	
  
  6	
  
In	
  order	
  to	
  assess	
  what	
  skills	
  will	
  be	
  required	
  in	
  the	
  future,	
  a	
  classification	
  of	
  the	
  
current	
  positions	
  at	
  risk	
  needs	
  to	
  be	
  analysed.	
  Figure	
  2	
  below	
  shows	
  a	
  classification	
  
of	
  threatened	
  jobs.	
  	
  
	
  
Figure	
  2:	
  Threatened	
  Jobs	
  Classification.	
  
	
  
Low-­‐skilled	
   Middle-­‐skilled	
   High-­‐skilled	
  
-­‐Job	
  preparation	
  
-­‐Serving	
  jobs	
  
-­‐Janitorial	
  jobs	
  
-­‐Gardening	
  
-­‐Cleaning	
  jobs	
  
-­‐Security/protective	
  
services	
  
-­‐In	
  person	
  health	
  
assistance	
  
-­‐White	
  collar	
  
• Accounting	
  
• Record	
  keeping	
  
• Simple	
  customer	
  
service	
  
• Administrative	
  tasks	
  
-­‐Blue	
  collar	
  
• Manufacturing	
  
-­‐Middleman	
  
-­‐Salesman	
  
-­‐Retail	
  
	
  
-­‐Professional	
  jobs	
  
-­‐Managerial	
  jobs	
  
-­‐Technical	
  occupations	
  
-­‐Creativity-­‐involved	
  jobs	
  
-­‐Solving-­‐problems	
  jobs	
  
-­‐Complex	
  communications	
  
	
  
	
  
Since	
   the	
   Computer	
   Revolution,	
   manual	
   tasks	
   able	
   to	
   follow	
   rule-­‐based	
   activities	
  
have	
   been	
   computerised	
   and	
   therefore,	
   substituted	
   labour.	
   There	
   is	
   a	
   distinction	
  
between	
  low,	
  middle	
  and	
  high	
  skilled	
  occupations,	
  and	
  focus	
  on	
  their	
  probability	
  of	
  
automation.	
   This	
   table	
   has	
   been	
   created	
   by	
   predictions	
   and	
   studies	
   that	
   all	
   the	
  
mentioned	
  authors	
  until	
  this	
  point	
  have	
  made.	
  Low-­‐skilled	
  occupations	
  tend	
  to	
  be	
  
manual	
   and	
   performed	
   in	
   person.	
   Some	
   examples	
   are	
   workers	
   in	
   a	
   fast	
   food	
  
restaurant,	
  gardeners,	
  housekeepers	
  and	
  doormen,	
  professions	
  that	
  do	
  not	
  require	
  
formal	
   education.	
   Middle-­‐skilled	
   occupations	
   involve	
   processes	
   that	
   can	
   be	
  
explained	
  by	
  a	
  set	
  of	
  procedures.	
  Some	
  examples	
  are	
  clerk	
  assistants,	
  bricklayers,	
  
welders	
   and	
   middlemen.	
   Finally,	
   high-­‐skilled	
   occupations	
   involve	
   no	
   rule-­‐based	
  
solutions	
  as	
  well	
  as	
  expert	
  problem	
  solving.	
  Some	
  examples	
  are	
  medical	
  diagnosis,	
  
managers	
   of	
   large	
   organisations	
   and	
   teachers.	
   	
   Autor,	
   Levy	
   and	
   Murnane	
   (2003)	
  
distinguish	
   routine	
   versus	
   non-­‐routine	
   tasks	
   in	
   the	
   workplace.	
   Routine	
   tasks	
   are	
  
manual,	
   repetitive,	
   characterised	
   by	
   middle-­‐skilled	
   activities.	
   Routine	
   jobs	
   were	
  
more	
   susceptible	
   to	
   automate,	
   as	
   are	
   easily	
   captured	
   in	
   a	
   computer	
   program.	
  
However,	
   non-­‐routine	
   tasks	
   require	
   in	
   person	
   interaction,	
   common	
   sense,	
  
adaptability	
   and	
   creativity,	
   activities	
   that	
   are	
   not	
   likely	
   to	
   be	
   performed	
   by	
   a	
  
computer.	
  Nevertheless,	
  Brynjolfsson	
  and	
  McAfee	
  (2012)	
  ensure	
  that	
  last	
  industrial	
  
robotics	
  and	
  automated	
  translation	
  services	
  could	
  also	
  take	
  over	
  non-­‐routine	
  tasks,	
  
adopting	
  education	
  and	
  medicine	
  occupations.	
  
	
  
It	
  seems	
  that	
  technology	
  is	
  threatening	
  a	
  whole	
  new	
  group	
  of	
  skills	
  and	
  that	
  all	
  type	
  
of	
   occupations	
   are	
   exposed.	
   However,	
   middle-­‐skilled	
   occupations	
   are	
   the	
   most	
  
susceptible	
   to	
   automation,	
   and	
   therefore,	
   likely	
   to	
   disappear.	
   (See	
   appendix	
   2).	
  
Brynjolfsson	
   and	
   McAfee	
   (2012)	
   speak	
   about	
   the	
   Race	
  against	
  the	
  Machine	
  like	
   a	
  
problem	
   that	
   human	
   being	
   is	
   facing	
   in	
   the	
   XXI	
   century.	
   Authors	
   acknowledge	
   the	
  
technological	
  unemployment,	
  but	
  offer	
  some	
  advice	
  for	
  future.	
  This	
  is	
  discussed	
  in	
  
the	
  last	
  part	
  of	
  this	
  paper.	
  
	
  
	
  
  7	
  
2.3	
  The	
  Middleman	
  
As	
  mentioned	
  previously,	
  middleman	
  is	
  one	
  of	
  the	
  occupations	
  most	
  susceptible	
  to	
  
automation,	
   and	
   at	
   risk	
   of	
   disappearing	
   in	
   the	
   near	
   future	
   (Hoar,	
   2015).	
   This	
  
occupation	
   undertakes	
   middle-­‐skilled	
   activities,	
   following	
   set	
   of	
   rules	
   and	
  
procedures.	
  Checking,	
  calculating,	
  remembering,	
  comparing	
  and	
  providing	
  customer	
  
service,	
  are	
  some	
  of	
  the	
  tasks	
  performed	
  by	
  the	
  middlemen.	
  They	
  are	
  in	
  between	
  
producers	
   and	
   customers,	
   also	
   called	
   B2B	
   sales	
   persons,	
   and	
   for	
   decades	
   these	
  
occupations	
   were	
   successful	
   and	
   vital	
   to	
   many	
   industries.	
   However,	
   there	
   was	
   a	
  
turning	
   point	
   in	
   history	
   when	
   these	
   professions	
   stopped	
   being	
   so	
   vital:	
   	
   the	
  
development	
  of	
  the	
  self-­‐service	
  e-­‐commerce.	
  From	
  that	
  point,	
  customers	
  started	
  to	
  
have	
  direct	
  access	
  to	
  providers,	
  disrupting	
  distribution	
  channels	
  and	
  suppressing	
  the	
  
middleman	
   step.	
   According	
   to	
   the	
   Forrester	
   Research	
   report	
   (Hoar,	
   2015),	
   one	
  
million	
   B2B	
   salespeople	
   in	
   the	
   United	
   States	
   will	
   lose	
   their	
   jobs	
   by	
   2020	
   (see	
  
appendix	
  3).	
  	
  Customer	
  behaviour	
  has	
  changed	
  over	
  the	
  last	
  decade:	
  B2B	
  buyers	
  do	
  
not	
  need	
  help	
  and	
  prefer	
  to	
  do	
  their	
  own	
  research,	
  avoiding	
  the	
  sales	
  person	
  (Hoar,	
  
2015).	
   Nevertheless,	
   some	
   other	
   sources	
   argue	
   that	
   B2B	
   buyers	
   will	
   never	
   know	
  
everything	
  about	
  new	
  products,	
  especially	
  more	
  complex	
  ones	
  such	
  as	
  hardware	
  and	
  
software,	
  and	
  therefore	
  will	
  need	
  the	
  support	
  of	
  a	
  sales	
  person	
  (Schuck,	
  2015).	
  Hoar	
  
(2015)	
   brakes	
   down	
   salesperson	
   in	
   four	
   different	
   types:	
   order	
   takers,	
   explainers,	
  
navigators	
  and	
  consultants.	
  According	
  to	
  him,	
  order	
  takers	
  and	
  explainers	
  are	
  the	
  
ones	
  at	
  the	
  highest	
  risk,	
  as	
  their	
  activities	
  can	
  be	
  easily	
  automatized.	
  	
  
	
  
2.4	
  The	
  Middleman	
  in	
  the	
  Travel	
  Agency	
  
The	
   development	
   of	
   the	
   e-­‐commerce	
   appears	
   to	
   be	
   as	
   the	
   turning	
   point	
   for	
   the	
  
middleman	
   occupation.	
   For	
   example,	
   the	
   Travel	
   and	
   Tourism	
   industry	
   saw	
   the	
  
creation	
  of	
  the	
  Online	
  Booking	
  Systems	
  in	
  the	
  90s	
  (GAO,	
  2015).	
  This	
  tool	
  changed	
  the	
  
Travel	
   and	
   Tourism	
   global	
   system	
   in	
   the	
   sense	
   that	
   travel	
   agencies	
   used	
   to	
   have	
  
information	
  about	
  airlines	
  and	
  booking	
  capability,	
  and	
  airlines	
  depended	
  on	
  travel	
  
agencies	
   to	
   reach	
   consumers	
   (GAO,	
   2003).	
   Moreover,	
   customers	
   needed	
   to	
   book	
  
their	
   flights	
   through	
   travel	
   agencies,	
   so	
   they	
   were	
   key	
   in	
   the	
   distribution	
   chain.	
  
However,	
  this	
  situation	
  was	
  altered	
  in	
  the	
  early	
  XXI	
  century,	
  with	
  the	
  Technological	
  
Revolution	
  and	
  the	
  creation	
  of	
  the	
  Internet	
  Booking	
  Engines	
  (GAO,	
  2003).	
  Through	
  
this	
  application	
  passengers	
  could	
  book	
  flights,	
  holidays	
  and	
  insurances	
  themselves,	
  
cutting	
  out	
  the	
  travel	
  agencies,	
  and	
  obtaining	
  better	
  prices,	
  due	
  to	
  the	
  elimination	
  of	
  
agents	
   fees.	
   From	
   this	
   point	
   airlines	
   offered	
   less	
   expensive	
   Internet	
   tickets,	
  
encouraging	
   customers	
   to	
   buy	
   holiday	
   packages	
   from	
   different	
   websites	
   (GAO,	
  
2005),	
   and	
   causing	
   travel	
   agencies	
   to	
   be	
   largely	
   redundant.	
   (See	
   appendix	
   4).	
  
International	
   financial	
   institutions	
   and	
   telecommunication	
   firms	
   are	
   making	
   new	
  
arrangements	
   in	
   order	
   to	
   help	
   the	
   traditional	
   sector	
   threated	
   by	
   technological	
  
advanced	
   tools.	
   WTTC’s	
   spokesman	
   (2015)	
   appealed	
   the	
   need	
   to	
   employ	
   people	
  
from	
  travel	
  agents	
  to	
  fulfil	
  their	
  roles.	
  However,	
  the	
  industry	
  needs	
  to	
  analyse	
  the	
  
importance	
  of	
  the	
  middleman	
  position,	
  and	
  to	
  evaluate	
  if	
  it	
  will	
  continue	
  being	
  key	
  in	
  
the	
  industry.	
  In	
  the	
  case	
  the	
  middleman	
  position	
  is	
  not	
  essential,	
  it	
  will	
  disappear	
  
leaving	
  path	
  for	
  other	
  emerging	
  professions.	
  
	
  
3.0	
  Identifying	
  a	
  Pattern	
  	
  
As	
   it	
   has	
   been	
   shown	
   through	
   this	
   paper,	
   since	
   the	
   Industrial	
   Revolution	
   certain	
  
types	
   of	
   jobs	
   have	
   been	
   affected	
   due	
   to	
   disruptive	
   technologies.	
   Moreover,	
   it	
   has	
  
been	
  shown	
  that	
  along	
  the	
  history	
  workers	
  have	
  been	
  able	
  to	
  develop	
  other	
  skills	
  to	
  
  8	
  
keep	
  pace	
  with	
  the	
  new	
  advances.	
  Figure	
  3	
  illustrates	
  this	
  phenomenon	
  over	
  the	
  last	
  
decades	
  in	
  America:	
  
	
  
	
  
Figure	
  3:	
  The	
  ‘Great	
  Decoupling’	
  
	
  
(Bernstein,	
  2011)	
  
	
  
	
  
From	
   1947	
   productivity	
   and	
   employment	
   have	
   grown	
   in	
   tandem.	
   Every	
   time	
   a	
  
technological	
  advance	
  was	
  created,	
  some	
  industries	
  were	
  affected	
  by	
  it	
  but	
  after	
  a	
  
period	
  of	
  time,	
  labour	
  continued	
  growing	
  steadily.	
  It	
  seems	
  like	
  when	
  a	
  technological	
  
advance	
   arrives,	
   there	
   is	
   a	
   period	
   of	
   readjustment	
   where	
   some	
   professions	
   are	
  
affected,	
  but	
  the	
  development	
  of	
  other	
  skills	
  creates	
  other	
  type	
  of	
  jobs.	
  This	
  graph	
  
suggests	
   that	
   in	
   2007	
   something	
   happened	
   and	
   diverged	
   productivity	
   and	
  
employment	
  lines.	
  Bernstein	
  (2011)	
  blames	
  other	
  factors	
  for	
  this	
  decoupling	
  apart	
  
from	
  technology,	
  such	
  as	
  the	
  Great	
  Recession	
  or	
  the	
  companies’	
  offshoring.	
  Perhaps	
  
this	
  would	
  require	
  further	
  studies,	
  as	
  it	
  cannot	
  be	
  predicted	
  if	
  these	
  two	
  lines	
  will	
  
continue	
   growing	
   together	
   after	
   a	
   few	
   decades,	
   as	
   it	
   happened	
   in	
   the	
   past.	
  
Economists	
  have	
  reassured	
  that	
  despite	
  the	
  automation	
  of	
  million	
  of	
  jobs	
  since	
  the	
  
Industrial	
   Revolution,	
   workers	
   had	
   more	
   jobs	
   in	
   the	
   end	
   of	
   each	
   century.	
   It	
   is	
  
necessary	
  to	
  leave	
  decades	
  to	
  pass	
  and	
  observe	
  in	
  order	
  to	
  study	
  what	
  other	
  new	
  
skills	
   workers	
   will	
   develop	
   to	
   keep	
   pace	
   once	
   again	
   with	
   technology.	
   The	
  
observation	
   of	
   this	
   pattern	
   can	
   provide	
   solutions	
   to	
   the	
   issue	
   of	
   disruptive	
  
technology	
  putting	
  job	
  creation	
  at	
  risk,	
  as	
  if	
  it	
  happens	
  like	
  in	
  the	
  past,	
  there	
  will	
  be	
  
again	
   readjustments.	
  	
  	
  
	
  
	
  
	
   	
   	
  
  9	
  
4.0	
  Recommendations	
  for	
  Leaders	
  
Technology	
  has	
  developed	
  new	
  tools,	
  and	
  the	
  industries	
  that	
  have	
  integrated	
  new	
  
advances	
   in	
   their	
   companies	
   have	
   been	
   benefited	
   from	
   it.	
   Therefore,	
   it	
   is	
   key	
   for	
  
businesses,	
   Government	
   and	
   policy	
   makers	
   to	
   understand	
   that	
   this	
   is	
   not	
   a	
   new	
  
phenomenon,	
   but	
   it	
   has	
   happened	
   previously,	
   as	
   seen	
   at	
   the	
   pattern	
   in	
   Figure	
   3.	
  
Some	
   disruptive	
   technologies	
   from	
   the	
   Industrial	
   Revolution	
   and	
   how	
   the	
  
humankind	
   has	
   managed	
   to	
   develop	
   other	
   skills	
   necessary	
   for	
   the	
   continuity	
   of	
  
employment	
  have	
  been	
  analysed.	
  	
  When	
  dealing	
  with	
  new	
  technological	
  advances	
  
companies	
  can	
  either	
  ignore	
  them	
  and	
  face	
  being	
  eliminated,	
  or	
  embrace	
  and	
  adapt	
  
to	
  them.	
  A	
  number	
  of	
  actions	
  towards	
  technological	
  advances	
  are	
  necessary,	
  long-­‐
term	
  strategies	
  above	
  all.	
  Several	
  challenges	
  were	
  successfully	
  overcome	
  since	
  the	
  
Industrial	
  Revolution,	
  and	
  some	
  of	
  these	
  recommendations	
  are	
  based	
  on	
  what	
  has	
  
been	
   made	
   in	
   the	
   past;	
   the	
   search	
   for	
   new	
   skills.	
   According	
   to	
   Brynjolfsson	
   and	
  
McAfee	
   (2012)	
   humans	
   will	
   have	
   to	
   constantly	
   innovate	
   in	
   order	
   to	
   race	
   with	
  
machines.	
  In	
  fact,	
  the	
  key	
  to	
  win	
  is	
  not	
  to	
  compete	
  against	
  machines	
  but	
  compete	
  
with	
  them.	
  This	
  is	
  recommended	
  to	
  improve	
  the	
  rate	
  and	
  quality	
  of	
  organizational	
  
innovation,	
   and	
   to	
   increase	
   human	
   capital	
   in	
   order	
   to	
   make	
   sure	
   people	
   have	
   the	
  
skills	
   needed	
   to	
   keep	
   pace	
   with	
   technology.	
   In	
   the	
   beginning	
   of	
   the	
   Computer	
  
Revolution	
   low-­‐skilled	
   workers	
   had	
   to	
   evolve	
   towards	
   other	
   middle-­‐skilled	
  
occupations.	
  Nowadays	
  there	
  is	
  enough	
  evidence	
  that	
  shows	
  the	
  middle-­‐skilled	
  jobs	
  
are	
  at	
  risk.	
  In	
  order	
  for	
  the	
  employment	
  to	
  survive	
  it	
  is	
  necessary	
  to	
  apply	
  the	
  past	
  
pattern	
  into	
  the	
  future,	
  reallocating	
  workers	
  to	
  other	
  tasks.	
  Middle	
  as	
  well	
  as	
  high-­‐
skilled	
   workers	
   will	
   have	
   to	
   develop	
   and	
   acquire	
   creative	
   and	
   social	
   skills,	
   no	
  
susceptible	
   to	
   automation	
   at	
   the	
   moment.	
   McKinsey	
   report	
   (2013)	
   acknowledges	
  
that	
  computers	
  are	
  becoming	
  capable	
  of	
  doing	
  jobs	
  that	
  were	
  assumed	
  to	
  be	
  done	
  
only	
  by	
  humans,	
  therefore	
  in	
  future	
  there	
  will	
  be	
  the	
  need	
  to	
  continue	
  applying	
  the	
  
pattern	
  and	
  some	
  strategies	
  to	
  keep	
  pace	
  with	
  disruptive	
  technologies.	
  	
  	
  
	
  
Governments	
   and	
   policy	
   makers	
   play	
   an	
   important	
   role	
   in	
   bringing	
   disruptive	
  
technologies	
   to	
   life,	
   as	
   they	
   set	
   rules	
   and	
   standards	
   and	
   help	
   the	
   new	
   markets	
   to	
  
emerge.	
  Additionally,	
  they	
  provide	
  funding	
  at	
  early	
  stages.	
  They	
  have	
  power	
  towards	
  
technology;	
  therefore	
  they	
  can	
  limit	
  and	
  control	
  its	
  progress.	
  In	
  order	
  to	
  adapt	
  to	
  
change,	
   they	
   have	
   the	
   responsibility	
   to	
   set	
   some	
   strategies	
   that	
   will	
   have	
   direct	
  
effects	
  on	
  employment:	
  
	
  
• It	
   is	
   recommended	
   to	
   assess	
   new	
   technologies	
   at	
   early	
   stages	
   in	
   order	
   to	
  
address	
  the	
  way	
  they	
  will	
  affect	
  businesses,	
  the	
  global	
  economy	
  and	
  generally	
  
transform	
   life.	
   As	
   explained	
   previously,	
   for	
   technology	
   to	
   be	
   considered	
  
disruptive	
   it	
   has	
   to	
   create	
   a	
   massive	
   economic	
   impact,	
   and	
   dramatically	
  
change	
   the	
   way	
   people	
   live	
   and	
   work.	
   That	
   is	
   why	
   Governments,	
   policy	
  
makers,	
  businesses	
  and	
  mostly	
  all	
  leaders	
  should	
  work	
  with	
  formal	
  strategic	
  
planning	
  to	
  deal	
  with	
  the	
  technological	
  changing	
  world	
  (Aker	
  &	
  Porter,	
  1995).	
  
Strategic	
  management	
  is	
  key	
  in	
  preparing	
  the	
  future	
  of	
  the	
  employment	
  with	
  
technology.	
  Each	
  industry	
  should	
  analyse	
  what	
  strategies	
  are	
  beneficial	
  and	
  
what	
   are	
   not,	
   as	
   they	
   may	
   vary	
   from	
   one	
   industry	
   to	
   another.	
   Therefore,	
  
leaders	
   should	
   choose	
   strategies	
   through	
   an	
   analytical	
   process,	
   under	
   the	
  
premises	
   of	
   the	
   positioning	
   school	
   (Mintzberg,	
   Ahlstrand	
   &	
   Lampel,	
   2009).	
  
Firstly,	
  SWOT	
  and	
  PESTLE	
  analysis	
  should	
  be	
  undertaken	
  to	
  create	
  awareness	
  
of	
   the	
   internal	
   and	
   external	
   environment,	
   and	
   to	
   know	
   the	
   position	
   in	
   the	
  
marketplace.	
   Secondly,	
   strategies	
   should	
   be	
   chosen	
   and	
   implemented.	
  
Common	
   efforts	
   are	
   vital	
   to	
   establish	
   objectives,	
   policies	
   and	
   strategies	
   to	
  
  10	
  
gain	
  industries	
  purposes.	
  This	
  view	
  is	
  future	
  oriented,	
  and	
  will	
  address	
  the	
  
way	
   technologies	
   impact	
   people’s	
   work	
   and	
   lives.	
   By	
   anticipating	
   to	
   these	
  
impacts,	
  emerging	
  technologies	
  will	
  disrupt	
  in	
  a	
  controlled	
  way	
  and	
  create	
  an	
  
environment	
   where	
   the	
   potential	
   of	
   working	
   in	
   tandem	
   with	
   technology	
   is	
  
boundless.	
   There	
   are	
   no	
   doubts	
   that	
   identifying	
   the	
   capabilities	
   of	
   fusing	
  
technology	
   and	
   industries	
   together	
   will	
   help	
   achieving	
   the	
   objectives	
   and	
  
anticipate	
  the	
  impacts.	
  
	
  
• At	
   the	
   present	
   time	
   a	
   large	
   number	
   of	
   jobs	
   are	
   at	
   risk	
   due	
   to	
   technology;	
  
therefore	
  it	
  is	
  necessary	
  for	
  leaders	
  to	
  support	
  the	
  workforce.	
  An	
  example	
  of	
  
this	
   evolution	
   in	
   job	
   skills	
   are	
   creative	
   and	
   social	
   skills,	
   which	
   are	
   new	
  
recommended	
  skills	
  that	
  need	
  to	
  be	
  acquired,	
  as	
  they	
  are	
  less	
  susceptible	
  to	
  
automation.	
  However,	
  there	
  is	
  evidence	
  that	
  support	
  the	
  automation	
  of	
  social	
  
intelligence	
   in	
   the	
   next	
   decades,	
   so	
   there	
   will	
   be	
   necessary	
   a	
   revision	
   and	
  
modification	
  of	
  future	
  trainings.	
  Workers	
  should	
  be	
  constantly	
  encouraged	
  to	
  
adapt	
   to	
   changes.	
   The	
   implementation	
   of	
   a	
   skills	
   audit	
   process	
   is	
   key	
   for	
  
managing	
  the	
  situation	
  as	
  well	
  as	
  intervening	
  in	
  a	
  proactive	
  way,	
  in	
  order	
  to	
  
create	
   and	
   control	
   rather	
   than	
   just	
   respond	
   to	
   the	
   advance	
   after	
   it	
   has	
  
happened.	
  By	
  conducting	
  skill	
  audits	
  there	
  is	
  a	
  determination	
  of	
  the	
  key	
  skills	
  
required	
   for	
   a	
   certain	
   type	
   of	
   job	
   as	
   well	
   as	
   any	
   gaps	
   within	
   the	
   related	
  
industry.	
   The	
   identification	
   of	
   the	
   required	
   skills	
   allows	
   a	
   sector	
   to	
   grow	
  
along	
   with	
   technology	
   assisting	
   organisations	
   to	
   respond	
   promptly	
   to	
  
disruptions.	
  Presumably,	
  a	
  skill	
  audits	
  in	
  the	
  Industrial	
  Revolution	
  could	
  have	
  
had	
   anticipated	
   the	
   type	
   of	
   training	
   required	
   for	
   artisans	
   to	
   allow	
   them	
   to	
  
deal	
   with	
   new	
   innovative	
   powered	
   tools.	
   Thus,	
   leaders	
   first	
   need	
   to	
  
determine	
  what	
  technologies	
  will	
  have	
  effect	
  in	
  the	
  way	
  people	
  live	
  and	
  work,	
  
and	
  then	
  undertake	
  a	
  skills	
  audit	
  with	
  the	
  following	
  points:	
  
	
  
-­‐Skills	
  requirements.	
  What	
  types	
  of	
  skills	
  are	
  needed	
  to	
  keep	
  pace	
  with	
  the	
  
new	
  technology?	
  List	
  the	
  skills	
  that	
  will	
  be	
  necessary	
  in	
  the	
  future	
  according	
  
to	
  the	
  new	
  technology’s	
  features.	
  	
  
-­‐Actual	
   skills.	
  What	
  type	
  of	
  skills	
  do	
  the	
  workers	
  currently	
  have?	
  List	
  with	
  
the	
  skills	
  workers	
  have,	
  in	
  order	
  to	
  have	
  awareness	
  of	
  the	
  gaps	
  the	
  sector	
  has	
  
and	
  need	
  to	
  be	
  fulfilled.	
  	
  
-­‐Training	
  needs.	
  After	
  knowing	
  the	
  skills	
  we	
  have	
  and	
  the	
  skills	
  we	
  need	
  to	
  
have,	
  training	
  must	
  be	
  provided	
  in	
  order	
  to	
  cover	
  the	
  needs	
  that	
  technological	
  
advance	
  will	
  have.	
  	
  
5.0	
  Taking	
  action	
  in	
  the	
  Travel	
  and	
  Tourism	
  Industry	
  
This	
  paper	
  has	
  shown	
  how	
  the	
  automation	
  era	
  arrived	
  a	
  few	
  decades	
  ago	
  with	
  the	
  
Industrial	
  Revolution,	
  and	
  how	
  it	
  affected	
  the	
  workplace.	
  Additionally,	
  it	
  has	
  been	
  
analysed	
  how	
  the	
  Travel	
  and	
  Tourism	
  industry	
  has	
  been	
  severely	
  impacted	
  since	
  the	
  
mid-­‐1990s.	
  Airlines	
  developed	
  global	
  computer	
  distribution	
  systems	
  (CRS)	
  allowing	
  
consumers	
   to	
   buy	
   their	
   tickets	
   through	
   a	
   new	
   do-­‐it-­‐yourself	
   model,	
   dramatically	
  
impacting	
   the	
   middlemen	
   (GAO,	
   2003).	
   From	
   that	
   point	
   the	
   Travel	
   and	
   Tourism	
  
industry	
   has	
   not	
   been	
   the	
   same.	
   However,	
   there	
   are	
   great	
   examples	
   about	
   how	
  
enterprises	
  have	
  continued	
  growing	
  in	
  tandem	
  with	
  technology.	
  The	
  following	
  are	
  
examples	
   of	
   technologies	
   that	
   the	
   Travel	
   and	
   Tourism	
   industry	
   has	
   been	
   able	
   to	
  
adapt	
   to,	
   taking	
   advantage	
   instead	
   of	
   being	
   eliminated	
   by	
   them.	
   Rothwell	
   (1994)	
  
noted	
  how	
  the	
  first-­‐generation	
  Innovation	
  Process	
  in	
  1950	
  developed	
  towards	
  the	
  
fifth-­‐generation.	
   Firms	
   commenced	
   having	
   alliances	
   in	
   response	
   to	
   the	
   industrial	
  
  11	
  
technological	
  change,	
  as	
  they	
  knew	
  they	
  needed	
  strategies	
  and	
  new	
  models	
  to	
  adapt.	
  
For	
   instance,	
   Travel	
   Technology	
   &	
   Solutions	
   is	
   an	
   organisation	
   that	
   provides	
  
customised	
   technology	
   to	
   any	
   travel	
   company	
   that	
   needs	
   to	
   automatize	
   their	
  
services	
  to	
  ensure	
  its	
  continuity.	
  For	
  instance,	
  they	
  point	
  out	
  travel	
  agents	
  as	
  key	
  for	
  
corporations	
   to	
   ensure	
   successful	
   business	
   trips	
   (TTS,	
   2015a).	
   They	
   encourage	
  
businesses	
   to	
   rely	
   on	
   the	
   middleman	
   for	
   taking	
   care	
   for	
   tasks	
   such	
   as	
   luggage	
   or	
  
cancellations,	
   so	
   they	
   can	
   take	
   care	
   about	
   their	
   businesses.	
   Additionally,	
   this	
  
organisation	
  believes	
  in	
  modern	
  travel	
  agencies,	
  rising	
  the	
  need	
  to	
  have	
  a	
  platform	
  
where	
   members	
   of	
   the	
   staff	
   and	
   customers	
   are	
   connected	
   anywhere	
   via	
   mobile,	
  
laptop	
  or	
  tablet	
  (TTS,	
  2015b).	
  	
  Mobile	
  Internet	
  has	
  been	
  a	
  key	
  factor	
  for	
  the	
  Travel	
  
and	
  Tourism	
  industry,	
  as	
  travellers	
  are	
  able	
  to	
  contact	
  travel	
  agents,	
  hotels,	
  and	
  so	
  
on	
  with	
  their	
  mobile	
  devices.	
  Applications	
  allow	
  to	
  book,	
  retrieve	
  or	
  change	
  anything	
  
in	
  real-­‐time,	
  being	
  this	
  very	
  helpful	
  when	
  travelling	
  (Morosan,	
  2013).	
  This	
  mobile	
  
model	
  creates	
  strong	
  relationships	
  between	
  customer	
  and	
  agents.	
  The	
  automation	
  of	
  
knowledge	
   work	
   is	
   another	
   example	
   of	
   disruptive	
   technology	
   integration	
   in	
   the	
  
Travel	
   and	
   Tourism	
   industry.	
   Some	
   intelligent	
   software	
   systems	
   can	
   perform	
  
unstructured	
  commands	
  and	
  give	
  answers	
  to	
  customer’s	
  questions	
  (KPMG,	
  2016).	
  
Siri	
  is	
  an	
  example	
  of	
  intelligent	
  assistant	
  that	
  is	
  integrated	
  in	
  the	
  Travel	
  and	
  Tourism	
  
industry	
   under	
   this	
   technology.	
   Furthermore,	
   advanced	
   robotics	
   is	
   another	
  
disruptive	
  technology	
  that	
  has	
  been	
  used	
  to	
  perform	
  some	
  human	
  tasks.	
  An	
  excellent	
  
example	
  of	
  this	
  is	
  what	
  the	
  Geneva	
  airport	
  has	
  created	
  to	
  offer	
  passengers	
  cutting-­‐
edge	
  technology:	
  a	
  cordless	
  robot	
  that	
  assists	
  customers	
  in	
  case	
  of	
  any	
  doubts	
  and	
  
navigates	
  through	
  the	
  airport	
  on	
  its	
  own	
  (ifr.org,	
  2013).	
  All	
  previous	
  examples	
  have	
  
shown	
  how	
  the	
  Travel	
  and	
  Tourism	
  industry	
  has	
  been	
  constantly	
  evolving	
  and	
  trying	
  
to	
  adapt	
  to	
  new	
  technologies.	
  Firstly,	
  Internet	
  allowed	
  customers	
  in	
  the	
  90s	
  to	
  set	
  up	
  
their	
  own	
  travels	
  through	
  the	
  online	
  booking	
  services.	
  Secondly,	
  digital	
  advances	
  are	
  
allowing	
  customers	
  to	
  have	
  universal	
  connectivity	
  and	
  real-­‐time	
  information	
  in	
  their	
  
devices.	
  New	
  technologies	
  will	
  continue	
  disrupting	
  in	
  the	
  future	
  in	
  the	
  same	
  as	
  it	
  did	
  
in	
  the	
  past,	
  probably	
  reordering	
  the	
  Travel	
  and	
  Tourism	
  industry	
  again,	
  and	
  it	
  will	
  
have	
   to	
   adapt	
   decade	
   by	
   decade	
   for	
   its	
   continuity.	
   An	
   example	
   of	
   this	
   is	
   the	
  
autonomous	
   vehicles,	
   which	
   probably	
   will	
   undertake	
   tasks	
   in	
   the	
   industry	
   in	
   the	
  
near	
  future	
  such	
  as	
  the	
  transfers	
  to	
  the	
  airports,	
  or	
  even	
  piloting	
  airplanes.	
  	
  
	
  
	
  
The	
  impact	
  of	
  disruptive	
  technology	
  in	
  the	
  Travel	
  and	
  Tourism	
  industry	
  has	
  been	
  
studied	
   in	
   depth.	
   Travel	
   and	
   Tourism	
   leaders	
   are	
   recommended	
   to	
   take	
   action	
  
towards	
   technological	
   advances	
   before	
   they	
   disrupt	
   people’s	
   lives	
   and	
   jobs	
   in	
   a	
  
negative	
  way.	
  The	
  following	
  framework	
  is	
  proposed	
  to	
  help	
  leaders	
  to	
  prepare	
  for	
  
future	
  technology.	
  Figure	
  4	
  shows	
  the	
  ‘Diamond	
  Framework’,	
  where	
  leaders	
  need	
  to	
  
look	
  head	
  for	
  researching,	
  detecting,	
  planning	
  and	
  acting	
  for	
  coming	
  opportunities:	
  
	
  
1. Extensive	
   research	
   to	
   identify	
   technology	
   with	
   potential	
   for	
   massive	
  
impact.	
  
It	
   is	
   key	
   to	
   start	
   with	
   an	
   exhaustive	
   analysis	
   of	
   the	
   potential	
   disruptive	
  
technologies.	
  Which	
  technologies	
  are	
  emerging?	
  Which	
  ones	
  will	
  have	
  a	
  profound	
  
impact?	
   Normally,	
   they	
   are	
   the	
   ones	
   that	
   affect	
   millions	
   of	
   workers	
   and	
  
demonstrate	
  a	
  rapid	
  economic	
  development.	
  To	
  reach	
  the	
  candidates,	
  it	
  will	
  be	
  
necessary	
  to	
  interview	
  experts,	
  and	
  analyse	
  academic	
  journals	
  and	
  press.	
  	
  
	
  
2. Detect	
  which	
  technology	
  affects	
  the	
  Travel	
  and	
  Tourism	
  industry.	
  
From	
  all	
  disruptive	
  technologies	
  identify	
  the	
  ones	
  that	
  matter	
  and	
  will	
  impact	
  the	
  
Travel	
  and	
  Tourism	
  industry.	
  For	
  that,	
  leaders	
  of	
  the	
  sector	
  need	
  to	
  study	
  the	
  
  12	
  
potential	
  of	
  each	
  of	
  the	
  candidates	
  as	
  well	
  as	
  their	
  features,	
  and	
  how	
  they	
  will	
  
evolve.	
  Some	
  technologies	
  that	
  currently	
  are	
  supporting	
  and	
  working	
  in	
  tandem	
  
with	
   the	
   Travel	
   and	
   Tourism	
   industry	
   have	
   been	
   identified	
   in	
   this	
   paper.	
  
However,	
  new	
  advances	
  will	
  be	
  invented	
  in	
  the	
  following	
  decades	
  and	
  leaders	
  
will	
  have	
  to	
  go	
  back	
  to	
  the	
  step	
  1	
  of	
  this	
  framework,	
  and	
  start	
  the	
  study	
  of	
  new	
  
technologies	
  again.	
  
	
  
3. Strategic	
  Management	
  
The	
  industry	
  needs	
  to	
  be	
  managed	
  through	
  a	
  strategic	
  planning	
  context,	
  where	
  
objectives	
  and	
  strategies	
  are	
  well	
  planned	
  in	
  advance.	
  Leaders	
  do	
  not	
  have	
  to	
  
wait	
   until	
   the	
   technology	
   arrives,	
   but	
   they	
   must	
   act	
   before.	
   The	
   Travel	
   and	
  
Tourism	
   industry	
   needs	
   to	
   understand	
   the	
   realities	
   and	
   forces	
   of	
   its	
  
environment.	
   Porter’s	
   Five	
   Model	
   (Mintzberg,	
   Ahlstrand	
   &	
   Lampel,	
   2009)	
   is	
   a	
  
proposal	
   for	
   leaders	
   of	
   the	
   industry.	
   By	
   analysing	
   the	
   elements	
   of	
   the	
  
environment,	
   they	
   will	
   be	
   able	
   to	
   understand	
   the	
   position	
   they	
   are	
   in	
   the	
  
marketplace	
   and	
   influence	
   the	
   future	
   environment	
   in	
   a	
   beneficial	
   way	
   (see	
  
Appendix	
   5).	
   The	
   forces	
   in	
   the	
   model	
   are	
   suppliers,	
   new	
   entrants,	
   buyers,	
  
substitutes	
   and	
   competitors.	
   The	
   strength	
   of	
   these	
   forces	
   will	
   influence	
   what	
  
strategy	
   leaders	
   have	
   to	
   choose.	
   Perhaps,	
   they	
   could	
   use	
   SWOT	
   analysis	
   to	
  
understand	
  the	
  internal	
  as	
  well	
  as	
  external	
  environment.	
  This	
  is	
  a	
  continuous	
  
changing	
   and	
   adapting	
   process,	
   as	
   technology	
   evolves.	
   Therefore,	
   analysis	
   of	
  
environment	
   and	
   steps	
   1	
   and	
   2	
   of	
   this	
   framework	
   are	
   key	
   for	
   planning	
   and	
  
strategies	
   formulation.	
   Leaders	
   with	
   the	
   ability	
   to	
   apply	
   strategies	
   with	
   a	
  
positioning	
   school	
   point	
   of	
   view	
   will	
   raise	
   the	
   Travel	
   and	
   Tourism	
   industry	
  
value,	
  as	
  they	
  will	
  be	
  able	
  to	
  modify	
  its	
  structure	
  in	
  future	
  and	
  find	
  a	
  position	
  to	
  
sustain	
  competitive	
  advantage	
  (Mintzberg,	
  Ahlstrand	
  &	
  Lampel,	
  2009).	
  	
  
	
  
4. Skills	
  Audit	
  (Appendix	
  6)	
  
A	
   skills	
   audit	
   needs	
   to	
   be	
   done	
   in	
   order	
   to	
   know	
   what	
   requirements	
   the	
   new	
  
technology	
  has,	
  what	
  skills	
  there	
  are	
  currently,	
  and	
  the	
  training	
  that	
  should	
  be	
  
undertaken	
  to	
  gain	
  digital	
  talent,	
  and	
  therefore	
  manage	
  automation.	
  For	
  instance,	
  
if	
  the	
  new	
  technology	
  were	
  a	
  cognitive	
  robot,	
  people	
  with	
  expertise	
  level	
  to	
  give	
  
knowledge	
   based,	
   to	
   validate	
   that	
   knowledge	
   over	
   time,	
   and	
   to	
   be	
   able	
   to	
  
respond	
  would	
  be	
  needed.	
  Moreover,	
  there	
  is	
  a	
  need	
  for	
  workers	
  to	
  maintain	
  the	
  
essential	
  technology	
  infrastructure.	
  Therefore,	
  there	
  are	
  a	
  number	
  of	
  new	
  skills	
  
sets	
  that	
  leaders	
  need	
  to	
  identify	
  in	
  order	
  to	
  train	
  workers.	
  This	
  is	
  key	
  to	
  face	
  the	
  
challenge	
  the	
  new	
  technology	
  brings,	
  as	
  leaders	
  need	
  to	
  act	
  before,	
  and	
  anticipate	
  
for	
  the	
  coming	
  opportunities.	
  
	
  
	
  
	
  
Figure	
  4.	
  The	
  ‘Diamond’	
  Framework.	
  
	
  
	
  
	
  	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
R
esearch
Action
D
etect
Plan
  13	
  
	
  
6.0	
  Conclusion	
  
This	
  paper	
  has	
  evaluated	
  how	
  technology	
  is	
  affecting	
  job	
  creation	
  in	
  the	
  Travel	
  and	
  
Tourism	
  industry.	
  To	
  reach	
  the	
  aim,	
  the	
  ways	
  how	
  technology	
  has	
  developed	
  and	
  
impacted	
  some	
  occupations	
  since	
  the	
  Industrial	
  Revolution	
  have	
  been	
  explored.	
  The	
  
middleman	
   inside	
   the	
   Travel	
   and	
   Tourism	
   industry	
   has	
   been	
   identified	
   as	
   one	
   of	
  
those	
   occupations,	
   professions	
   belonging	
   to	
   the	
   middle-­‐skilled	
   group	
   strongly	
  
threatened	
  by	
  automation.	
  Furthermore,	
  a	
  pattern	
  shows	
  the	
  way	
  productivity	
  and	
  
technology	
  have	
  been	
  able	
  to	
  continue	
  growing	
  in	
  tandem	
  in	
  past,	
  offering	
  leaders	
  
some	
  considerations	
  for	
  the	
  future.	
  With	
  this	
  study,	
  answers	
  to	
  the	
  objectives	
  of	
  this	
  
paper	
  were	
  given.	
  Moreover,	
  some	
  useful	
  recommendations	
  that	
  could	
  help	
  leaders	
  
of	
   any	
   industry	
   to	
   act	
   towards	
   possible	
   negative	
   effects	
   of	
   technology	
   in	
   people’s	
  
work	
  and	
  life	
  were	
  found.	
  Lastly,	
  a	
  framework	
  has	
  been	
  drawn	
  in	
  an	
  attempt	
  to	
  help	
  
leaders	
  of	
  the	
  Travel	
  and	
  Tourism	
  industry	
  to	
  anticipate	
  to	
  new	
  technologies,	
  and	
  be	
  
prepared	
  before	
  they	
  disrupt.	
  Leaders	
  must	
  understand	
  they	
  can	
  act	
  now	
  in	
  order	
  to	
  
shape	
  the	
  future	
  of	
  the	
  industry.	
  	
   	
  
  14	
  
7.0	
  References	
  
	
  
Akers,	
  M.	
  &	
  Porter,	
  G.	
  (1995)	
  Strategic	
  Planning	
  at	
  Five	
  World-­‐Class	
  Companies,	
  
Management	
  Accounting.	
  Vol	
  77,	
  N	
  1,	
  p24.	
  
	
  
ATTC	
  (2010).	
  A	
  Blueprint	
  for	
  Technology	
  Transfer.	
  2nd	
  ed.	
  Bloomington:	
  
AuthorHouse.	
  
	
  
Autor,	
  D.	
  (2014)	
  Polanyi's	
  Paradox	
  and	
  the	
  Shape	
  of	
  Employment	
  Growth.	
  [pdf]	
  
Available	
  at:	
  http://economics.mit.edu/files/9835	
  [Accessed	
  12	
  Oct.	
  2015]	
  
Autor,	
  D.,	
  Levy,	
  F.	
  and	
  Murnane,	
  R.	
  (2003).	
  The	
  skill	
  content	
  of	
  recent	
  technological	
  
change:	
  An	
  empirical	
  exploration.	
  [pdf]	
  Available	
  at:	
  
http://www.nber.org/papers/w8337.pdf	
  [Accessed	
  18	
  Jan.	
  2016].	
  
	
  
Benedikt,	
  C.	
  and	
  Osborne,	
  M.	
  (2013).	
  The	
  Future	
  of	
  Employment:	
  how	
  Susceptible	
  Are	
  
Jobs	
  to	
  COMPUTERISATION?.	
  1st	
  ed.	
  [pdf]	
  Available	
  at:	
  
http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employme
nt.pdf	
  	
  [Accessed	
  15	
  Jan.	
  2016].	
  
	
  
Bernstein,	
  J.	
  (2011)	
  ‘The	
  Challenge	
  of	
  Long	
  Term	
  Job	
  Growth:	
  Two	
  Big	
  Hints’,	
  Jared	
  
Bernstein.	
  Available	
  at:	
  jaredbernsteinblog.com/the-­‐challenge-­‐of-­‐long-­‐term-­‐job-­‐
growth-­‐two-­‐big-­‐hints/	
  	
  [Accessed	
  1	
  Feb.	
  2016].	
  	
  
	
  
Brinker,	
  S.	
  (2014)	
  A	
  new	
  brand	
  of	
  marketing.	
  The	
  7	
  meta-­‐trends	
  of	
  modern	
  marketing	
  
as	
  a	
  technology-­‐powered	
  discipline.	
  [pdf]	
  Available	
  at:	
  
http://cdn.chiefmartec.com/wp-­‐
content/uploads/2014/03/a_new_brand_of_marketing.pdf	
  [Accessed	
  1	
  Feb.	
  2016].	
  
	
  
Brynjolfsson,	
  E.	
  and	
  McAfee,	
  A.	
  (2012)	
  Thriving	
  in	
  the	
  Automated	
  Economy.	
  [pdf]	
  
Available	
  at:	
  http://ebusiness.mit.edu/erik/ma2012_brynjolfsson_mcafee.pdf	
  	
  
[Accessed	
  20	
  Oct.	
  2015].	
  
DiGironimo,	
  N.	
  (2011).	
  What	
  is	
  Technology?	
  Investigating	
  Student	
  Conceptions	
  
about	
  the	
  Nature	
  of	
  Technology.	
  International	
  Journal	
  of	
  Science	
  Education,	
  33(10),	
  
pp.1337-­‐1352.	
  
	
  
GAO	
  (2003).	
  Impact	
  of	
  Changes	
  in	
  the	
  Airline	
  Ticket	
  Distribution	
  Industry.	
  United	
  
States,	
  GAO.	
  
	
  
Hoar,	
  A.	
  (2015)	
  Death	
  of	
  a	
  (B2B)	
  Salesman.	
  [online]	
  Available	
  at:	
  
http://blogs.forrester.com/andy_hoar/15-­‐04-­‐14-­‐death_of_a_b2b_salesman	
  
[Accessed	
  28	
  Jan.	
  2016].	
  
	
  
Ifr.org	
  (2013)	
  BlueBotics,	
  Switzerland	
  –IFR-­‐Partner.	
  [online].	
  Available	
  at:	
  
http://www.ifr.org/service-­‐robots/case-­‐studies/bluebotics-­‐switzerland-­‐ifr-­‐partner-­‐
541/	
  [Accessed	
  10	
  Feb.	
  2016].	
  
	
  
KPMG	
  (2016)	
  From	
  Human	
  to	
  Digital:	
  The	
  future	
  of	
  Global	
  Business	
  Services.	
  U.S.:	
  HfS	
  
	
  
  15	
  
McGinn, R. E. (1991). Science, technology, and society. Englewood Cliffs, NJ: Prentice
Hall
	
  
McKinsey	
  Global	
  Institute	
  (2013).	
  Disruptive	
  technologies:	
  Advances	
  that	
  will	
  
transform	
  life,	
  business,	
  and	
  the	
  global	
  economy.	
  1st	
  ed.	
  [pdf]	
  Available	
  at:	
  
http://www.mckinsey.com/insights/business_technology/disruptive_technologies	
  	
  
[Accessed	
  1	
  Nov.	
  2015].	
  
	
  
Mintzberg,	
  H.	
  Ahlstrand,	
  B.	
  &	
  Lampel,	
  J.	
  (2009)	
  Strategy	
  Safary,	
  your	
  Complete	
  Guide	
  
through	
  the	
  Wilds	
  of	
  Strategic	
  Management.	
  2nd	
  ed,	
  Great	
  Britain:	
  Prentice	
  Hall.	
  
	
  
Morosan,	
  C.	
  (2014)	
  "Toward	
  an	
  integrated	
  model	
  of	
  adoption	
  of	
  mobile	
  phones	
  for	
  
purchasing	
  ancillary	
  services	
  in	
  air	
  travel",	
  International	
  Journal	
  of	
  Contemporary	
  
Hospitality	
  Management,	
  Vol.	
  26	
  Iss:	
  2,	
  pp.246	
  -­‐	
  271	
  
	
  
Rotman,	
  D.	
  (2013).	
  How	
  Technology	
  is	
  Destroying	
  Jobs.	
  [online]	
  Available	
  at:	
  
https://www.technologyreview.com/s/515926/how-­‐technology-­‐is-­‐destroying-­‐
jobs/	
  [Accessed	
  25	
  Jan.	
  2016].	
  
	
  
Rothwell,	
  R.,	
  1994.	
  Towards	
  the	
  fifth-­‐generation	
  innovation	
  process.	
  International	
  
Marketing	
  Review,	
  11(1),	
  pp.	
  7.	
  
	
  
Schuck,	
  H.	
  (2015)	
  Forrester	
  predicts	
  the	
  death	
  of	
  1	
  million	
  salesmen	
  by	
  2020:	
  Henry	
  
Schuck	
  disagrees.	
  [online]	
  Available	
  at:	
  http://discoverorg.com/blog/forrester-­‐
predicts-­‐the-­‐death-­‐of-­‐1-­‐million-­‐salesmen-­‐by-­‐2020-­‐henry-­‐schuck-­‐
disagrees/?LS=Blog&CP=W:LinkedIn-­‐Henry	
  [Accessed	
  1	
  Feb.	
  2016].	
  
	
  
Telegraph.co.uk	
  (2014)	
  Ten	
  million	
  jobs	
  at	
  risk	
  from	
  advancing	
  technology.	
  [online]	
  
Available	
  at:	
  
http://search.proquest.com.ezproxy.brighton.ac.uk/docview/1622163835/F57EF7
F410B04F7DPQ/1?accountid=9727	
  [Accessed	
  20	
  Jan.	
  2016].	
  
	
  
TTS	
  (2015a)	
  ‘What	
  is	
  the	
  future	
  of	
  the	
  Corporate	
  Travel	
  Agent?’	
  [Online]	
  
http://tts.com/blog/what-­‐future-­‐corporate-­‐travel-­‐agent	
  [Accessed	
  1	
  Feb.	
  2016].	
  
	
  
TTS	
  (2015b)	
  ‘This	
  Technology	
  for	
  Travel	
  Agents	
  Never	
  Gets	
  Old’.	
  [Online]	
  
http://tts.com/blog/technology-­‐travel-­‐agents-­‐never-­‐gets-­‐old	
  [Accessed	
  1	
  Feb.	
  
2016].	
  
	
  
WTTC	
  (2015)	
  Global	
  travel	
  trends	
  and	
  issues	
  for	
  the	
  travel	
  and	
  tourism	
  sector.	
  
[online].	
  Available	
  at:	
  http://www.wttc.org/-­‐
/media/382bb1e90c374262bc951226a6618201.ashx	
  [Accessed	
  1	
  Feb.	
  2016].	
  
	
  
	
  
	
  
	
  
	
  
	
   	
  
  16	
  
8.0	
  Appendices	
  	
  
Appendix	
  1	
  
	
  
	
  
(McKinsey	
  Global	
  Institute,	
  2013)	
  
  17	
  
Appendix	
  2	
  
	
  
Chart	
  that	
  shows	
  how	
  some	
  middle-­‐skilled	
  occupations	
  have	
  dramatically	
  drop	
  in	
  
the	
  United	
  States	
  over	
  the	
  last	
  decades.	
  
	
  
	
  
	
  
(McKinsey	
  Global	
  Institute,	
  2013)	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  18	
  
	
  
Appendix	
  3	
  
	
  
This	
  graph	
  shows	
  1	
  million	
  sales	
  people	
  in	
  the	
  United	
  States	
  that	
  will	
  lose	
  their	
  jobs	
  
by	
  2020.	
  
	
  
	
  
(DiscoverOrg,	
  2015)	
  
	
  
	
  
Appendix	
  4	
  
	
  
This	
  chart	
  shows	
  how	
  the	
  Internet	
  airline	
  bookings	
  have	
  increase	
  from	
  1999	
  to	
  
2002.	
  
	
  
	
  
	
  
(GAO,	
  2003)	
  
  19	
  
Appendix	
  5	
  
	
  
Porter’s	
  Five	
  Forces	
  model.	
  Elements	
  of	
  industry	
  structure.	
  
	
  
	
  
(Strategy	
  Safari,	
  2009)	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  20	
  
Appendix	
  6	
  
	
  
Skills	
  audit	
  to	
  help	
  leaders	
  to	
  create	
  awareness	
  and	
  face	
  new	
  technological	
  advances.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (6)

Analysis of Business Environment
Analysis of  Business EnvironmentAnalysis of  Business Environment
Analysis of Business Environment
 
OM GROUP PPT
OM GROUP PPTOM GROUP PPT
OM GROUP PPT
 
Management in the Second Machine Age
Management in the Second Machine AgeManagement in the Second Machine Age
Management in the Second Machine Age
 
Photo essa
Photo essaPhoto essa
Photo essa
 
The industrial revolution
The industrial revolutionThe industrial revolution
The industrial revolution
 
the new industrial revolution
the new industrial revolutionthe new industrial revolution
the new industrial revolution
 

Ähnlich wie Dissertation Final PDF

Changing Roles Of Women During World War I
Changing Roles Of Women During World War IChanging Roles Of Women During World War I
Changing Roles Of Women During World War IAmanda Brady
 
Fintech: The Fourth Industrial Revolution
Fintech: The Fourth Industrial RevolutionFintech: The Fourth Industrial Revolution
Fintech: The Fourth Industrial RevolutionRonny Tome
 
Chapter 1 - Intro to Emerging Technologies NEW.pdf
Chapter 1 - Intro to Emerging Technologies NEW.pdfChapter 1 - Intro to Emerging Technologies NEW.pdf
Chapter 1 - Intro to Emerging Technologies NEW.pdfHarambee University
 
All Chapter Emerging technology ppt.pptx
All Chapter Emerging technology ppt.pptxAll Chapter Emerging technology ppt.pptx
All Chapter Emerging technology ppt.pptxamare63
 
Future Skills & Career Opportunities in POST COVID-19
Future Skills & Career Opportunities in POST COVID-19Future Skills & Career Opportunities in POST COVID-19
Future Skills & Career Opportunities in POST COVID-19Dr. Sunil Kr. Pandey
 
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...Faga1939
 
Chapter 1 - Intro to Emerging Technologies.pptx
Chapter 1 - Intro to Emerging Technologies.pptxChapter 1 - Intro to Emerging Technologies.pptx
Chapter 1 - Intro to Emerging Technologies.pptxTekle12
 
2015 steinmetz lecture_by_lynn_conway
2015 steinmetz lecture_by_lynn_conway2015 steinmetz lecture_by_lynn_conway
2015 steinmetz lecture_by_lynn_conwayLynn Conway
 
LECTURE 2 : The Role of Technology in the Creation of Wealth
LECTURE 2 : The Role of Technology in the Creation of WealthLECTURE 2 : The Role of Technology in the Creation of Wealth
LECTURE 2 : The Role of Technology in the Creation of WealthBC Chew
 
10 hum-revolution-compare and contrast-16tashap
10 hum-revolution-compare and contrast-16tashap10 hum-revolution-compare and contrast-16tashap
10 hum-revolution-compare and contrast-16tashap16tashap
 
Civil engg -societal and global impact
Civil engg -societal and global impact Civil engg -societal and global impact
Civil engg -societal and global impact pubgAkash
 
Technological advancement threatens employment and capitalism
Technological advancement threatens employment and capitalismTechnological advancement threatens employment and capitalism
Technological advancement threatens employment and capitalismFernando Alcoforado
 
Technology and Industrial Development
Technology and Industrial DevelopmentTechnology and Industrial Development
Technology and Industrial DevelopmentBryar Ali Rus
 
Lessons from industrial revolution presented by sajjad haider 2016
Lessons from industrial revolution presented by sajjad haider 2016Lessons from industrial revolution presented by sajjad haider 2016
Lessons from industrial revolution presented by sajjad haider 2016Sajjad Haider
 
Industrial_Revolution_4.0
Industrial_Revolution_4.0Industrial_Revolution_4.0
Industrial_Revolution_4.0AtulSharma790
 
Technological advancement and progress
Technological advancement and progressTechnological advancement and progress
Technological advancement and progressFernando Alcoforado
 
Indian Revolution
Indian Revolution Indian Revolution
Indian Revolution Vivek Garg
 

Ähnlich wie Dissertation Final PDF (20)

Changing Roles Of Women During World War I
Changing Roles Of Women During World War IChanging Roles Of Women During World War I
Changing Roles Of Women During World War I
 
Fintech: The Fourth Industrial Revolution
Fintech: The Fourth Industrial RevolutionFintech: The Fourth Industrial Revolution
Fintech: The Fourth Industrial Revolution
 
Industrial revolutions
Industrial revolutionsIndustrial revolutions
Industrial revolutions
 
Chapter 1 - Intro to Emerging Technologies NEW.pdf
Chapter 1 - Intro to Emerging Technologies NEW.pdfChapter 1 - Intro to Emerging Technologies NEW.pdf
Chapter 1 - Intro to Emerging Technologies NEW.pdf
 
All Chapter Emerging technology ppt.pptx
All Chapter Emerging technology ppt.pptxAll Chapter Emerging technology ppt.pptx
All Chapter Emerging technology ppt.pptx
 
Future Skills & Career Opportunities in POST COVID-19
Future Skills & Career Opportunities in POST COVID-19Future Skills & Career Opportunities in POST COVID-19
Future Skills & Career Opportunities in POST COVID-19
 
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...
HOW TO MAKE THE UTOPIA OF SCIENCE AND TECHNOLOGY USED ONLY FOR THE GOOD OF HU...
 
Chapter 1 - Intro to Emerging Technologies.pptx
Chapter 1 - Intro to Emerging Technologies.pptxChapter 1 - Intro to Emerging Technologies.pptx
Chapter 1 - Intro to Emerging Technologies.pptx
 
2015 steinmetz lecture_by_lynn_conway
2015 steinmetz lecture_by_lynn_conway2015 steinmetz lecture_by_lynn_conway
2015 steinmetz lecture_by_lynn_conway
 
LECTURE 2 : The Role of Technology in the Creation of Wealth
LECTURE 2 : The Role of Technology in the Creation of WealthLECTURE 2 : The Role of Technology in the Creation of Wealth
LECTURE 2 : The Role of Technology in the Creation of Wealth
 
10 hum-revolution-compare and contrast-16tashap
10 hum-revolution-compare and contrast-16tashap10 hum-revolution-compare and contrast-16tashap
10 hum-revolution-compare and contrast-16tashap
 
Civil engg -societal and global impact
Civil engg -societal and global impact Civil engg -societal and global impact
Civil engg -societal and global impact
 
Technological advancement threatens employment and capitalism
Technological advancement threatens employment and capitalismTechnological advancement threatens employment and capitalism
Technological advancement threatens employment and capitalism
 
Technology and Industrial Development
Technology and Industrial DevelopmentTechnology and Industrial Development
Technology and Industrial Development
 
Lessons from industrial revolution presented by sajjad haider 2016
Lessons from industrial revolution presented by sajjad haider 2016Lessons from industrial revolution presented by sajjad haider 2016
Lessons from industrial revolution presented by sajjad haider 2016
 
Unit 3. The origins of industrialisation
Unit 3. The origins of industrialisationUnit 3. The origins of industrialisation
Unit 3. The origins of industrialisation
 
Industrial_Revolution_4.0
Industrial_Revolution_4.0Industrial_Revolution_4.0
Industrial_Revolution_4.0
 
History of industrial automation
History of industrial automationHistory of industrial automation
History of industrial automation
 
Technological advancement and progress
Technological advancement and progressTechnological advancement and progress
Technological advancement and progress
 
Indian Revolution
Indian Revolution Indian Revolution
Indian Revolution
 

Dissertation Final PDF

  • 1.   1     ‘How  technology  is  affecting   job  creation  in  the  Travel  and   Tourism  industry’             Innovation  in  E-­‐Business  and  Mobile   Commerce   BSc  Business  (Top  Up),  Brighton  University   IT383   Pilar  Pérez-­‐Salinero   25th  April  2016                  
  • 2.   2   Table  of  Contents   1.0  Introduction  ..........................................................................................................................  3   1.1  Aim  ....................................................................................................................................................  3   1.2  Objectives  ........................................................................................................................................  3   2.0  Literature  Review  .................................................................................................................  4   2.1  Technological  Evolution  ...............................................................................................................  4   2.2  Jobs  most  affected  by  Technology  ..............................................................................................  5   2.3  The  Middleman  ...............................................................................................................................  7   2.4  The  Middleman  in  the  Travel  Agency  ........................................................................................  7   3.0  Identifying  a  Pattern  ............................................................................................................  7   4.0  Recommendations  for  Leaders  ..........................................................................................  9   5.0  Taking  action  in  the  Travel  and  Tourism  Industry  ....................................................  10   6.0  Conclusion  ...........................................................................................................................  13   7.0  References  ..........................................................................................................................  14   8.0  Appendices  .........................................................................................................................  16   Appendix  1  ..........................................................................................................................................  16   Appendix  2  ..........................................................................................................................................  17   Appendix  3  ..........................................................................................................................................  18   Appendix  4  ..........................................................................................................................................  18   Appendix  5  ..........................................................................................................................................  19   Appendix  6  ..........................................................................................................................................  20        
  • 3.   3   1.0  Introduction   1.1  Aim   The  aim  of  this  paper  is  to  evaluate  how  technology  is  affecting  job  creation  in  the   Travel  and  Tourism  industry.   1.2  Objectives   This  topic  will  be  developed  through  a  number  of  objectives:   • The  identification  of  some  technological  advances  since  the  Industrial   Revolution.   • The  rank  of  the  jobs  most  affected  by  technology.   • The  investigation  of  the  disappearance  of  the  middleman  within  the  Travel   and  Tourism  industry.    
  • 4.   4   2.0  Literature  Review   2.1  Technological  Evolution   It  is  well  known  that  the  power  of  technology  is  everywhere,  and  that  it  influences   the   way   businesses,   people   and   society   work.   According   to   McGinn   (1991,   p8)   technology   is   “the   complex   of   knowledge,   methods,   materials,   and,   if   applicable,   constituents   parts   used   in   making   a   certain   kind   of   technique”.   But   when   did   technology  arise?  Having  in  mind  that  technology  is  the  use  of  scientific  knowledge   to  solve  problems  (ATTC,  2010),  one  can  state  that  technology  existed  long  before   the  modern  era  and  that  it  was  transforming  environments  as  far  back  as  the  species   were  traced  (McGinn,  1991).  However,  it  was  not  until  the  Industrial  Revolution  that   technological   advances   had   dramatic   consequences   in   terms   of   human   labour.   Below,   Figure   1   shows   the   moments   in   history   that   highly   impacted   in   the   way   people  worked  since  the  Industrial  Revolution.       Figure  1:  Timeline                                                                                                                                                                                        Time        1750                                    1850                            1960                                1980                                  2000                          Now            Future                  XVIII                                      XIX                                                                      XX                                                                            XXI           In  the  end  of  the  XVIII  century  and  beginning  of  the  XIX,  the  world  experienced  a   number   of   changes   due   to   the   Industrial   Revolution.   As   an   example   the   steam   engines   that   replaced   water   mills,   or   the   windmills   (McKensey   Global   Institute,   2013).  In  that  moment,  agriculture  was  the  principal  provider  of  employment;  and   the  new  techniques  propelled  the  growth  of  the  economy.  Moreover,  the  Bessemer   process  enabled  mass  production  of  steel  in  the  Second  Industrial  Revolution,  which   accelerated  growth  and  innovation  (McKensey  Global  Institute,  2013).  Mechanised   processes  took  over  what  artisans  were  producing  until  that  point,  and  as  a  result   machines   replaced   several   positions.   Nevertheless,   even   if   these   events   caused   considerable  changes  in  the  artisan  industry,  the  first  assembly  lines  in  the  late  XIX   century  contributed  to  the  increase  of  employment,  as  more  workers  were  needed   for  the  mass-­‐produced  items  (Benedikt  and  Osborne,  2013).  Additionally,  in  1860   the  typewriter  was  invented  and  with  it  a  wave  of  mechanisation,  with  new  gadgets   such  as  calculators  and  dictaphones,  both  predecessors  of  the  computer  (Benedikt   First    Industrial   Revolution   Second   Industrial   Revolution   Computer   Revolution   Industrial   Robotics/ Automation   Technological   Revolution   Steam  Engine          Mass  produced  steel   Internet/Computer/robot   Advanced  robotics/Intelligent           software  systems  
  • 5.   5   and   Osborne,   2013).   This   office   machines   eliminated   copy   typist   occupations   and   increased  the  demand  of  educated  workers.  In  terms  of  agriculture,  between  1930-­‐ 1960s  the  Green  Revolution  took  place,  displacing  farmers  from  their  labour  (Autor,   2014).   Moreover,   the   Computer   Revolution   began   with   the   development   of   the   Internet   in   the   1990s.   In   the   following   decades   first   commercial   computers   were   introduced,   industrial   robot   was   initially   used,   and   the   first   signs   of   e-­‐commerce   were   recognized   (Benedikt   and   Osborne,   2013).   All   of   these   new   advances   eliminated  repetitive  calculations  and  substituted  people  with  automated  machines,   although  demand  for  clerking  workers  increased  significantly.  Throughout  history,   different   technological   advances   shifted   some   professions   such   as   manufacturing,   agriculture  and  artisans  to  management  and  service  positions.  Impacts  of  technology   in  the  employment  of  the  XXI  century  remain  to  be  seen,  although  McKinsey  Global   Institute  (2013)  has  elaborated  a  report  with  the  estimated  economic  impacts  that   twelve  technologies  will  create  in  2025,  guiding  policy  makers  and  societies  for  the   future  (see  appendix  1).     Along   history   there   have   been   different   approaches   towards   technology.   First   reactions  occurred  in  the  early  XIX  century,  when  a  group  of  English  artisans,  called   the   Luddites,   manifested   their   fear   of   the   automation   of   textile   (Benedikt   and   Osborne,  2013).  Some  authors  have  a  pessimistic  approach  towards  the  impacts  of   technology,  overestimating  its  power  and  even  talking  about  an  Automation  Anxiety   era,  and  irreversible  consequences  of  traditional  roles  (Autor,  2014,  Rotman,  2013,   Hoar,  2015).  However,  other  authors  acknowledge  that  technology  destroys  certain   jobs,   but   it   also   creates   other   positions   and   generates   new   skills,   with   a   re-­‐ adjustment  over  time  (Benedikt  and  Osborne,  2013,  Brynjolfsson  and  McAfee,  2012,   Knowles-­‐Cuttler,  2014).  The  next  section  identifies  the  jobs  and  professions  that  are   most  likely  to  be  threatened  by  technology.     2.2  Jobs  most  affected  by  Technology   This   section   identifies   the   jobs   most   affected   by   technology,   and   the   new   skills   required  for  future.  However,  in  order  to  understand  why  the  events  were  like  they   were  along  history,  an  explanation  is  offered  as  to  why  and  how  at  some  point  the   occupational  skill  spectrum  tended  to  separate.  Moreover,  it  is  explained  how  the   occupational  skill  spectrum  tended  to  separate  along  the  history.     Since   technological   new   advances   and   tools   evolved   in   the   Industrial   Revolution,   some  professions  have  ceased  to  exist,  such  as  skilled  artisanal  labour,  which  was   replaced   by   unskilled   factory   labour   (Autor,   2014).   Some   examples   are   the   blacksmiths  in  the  XVIII  century,  reduced  by  the  mass-­‐produced  automobile  plants;   construction  workers  in  the  XIX  century,  replaced  by  mechanised  tools;  farmers  in   the  XX  century,  displaced  by  innovative  powered  tools;  or  middle  skilled  workers  in   the  XXI  century,  substituted  by  robots  and  intelligent  software  systems.  According  to   Autor  (2014),  technologies  have  changed  the  type  of  jobs  available,  and  have  created   other  type  of  tasks  necessary,  such  as  repetitive  production  jobs,  bookkeeping,  and   clerical  work,  generally  provided  by  middle-­‐skilled  workers.  The  result,  according  to   Autor  (2014),  has  been  a  polarization  of  the  workforce  over  the  last  several  decades,   with  changes  in  employment  rates.  This  polarization  has  led  to  the  growth  of  low-­‐ education,  low-­‐wage  and  high-­‐education,  high-­‐wage.  Autor  (2014)  strongly  believes   that  automation  is  linked  to  job  polarization.    
  • 6.   6   In  order  to  assess  what  skills  will  be  required  in  the  future,  a  classification  of  the   current  positions  at  risk  needs  to  be  analysed.  Figure  2  below  shows  a  classification   of  threatened  jobs.       Figure  2:  Threatened  Jobs  Classification.     Low-­‐skilled   Middle-­‐skilled   High-­‐skilled   -­‐Job  preparation   -­‐Serving  jobs   -­‐Janitorial  jobs   -­‐Gardening   -­‐Cleaning  jobs   -­‐Security/protective   services   -­‐In  person  health   assistance   -­‐White  collar   • Accounting   • Record  keeping   • Simple  customer   service   • Administrative  tasks   -­‐Blue  collar   • Manufacturing   -­‐Middleman   -­‐Salesman   -­‐Retail     -­‐Professional  jobs   -­‐Managerial  jobs   -­‐Technical  occupations   -­‐Creativity-­‐involved  jobs   -­‐Solving-­‐problems  jobs   -­‐Complex  communications       Since   the   Computer   Revolution,   manual   tasks   able   to   follow   rule-­‐based   activities   have   been   computerised   and   therefore,   substituted   labour.   There   is   a   distinction   between  low,  middle  and  high  skilled  occupations,  and  focus  on  their  probability  of   automation.   This   table   has   been   created   by   predictions   and   studies   that   all   the   mentioned  authors  until  this  point  have  made.  Low-­‐skilled  occupations  tend  to  be   manual   and   performed   in   person.   Some   examples   are   workers   in   a   fast   food   restaurant,  gardeners,  housekeepers  and  doormen,  professions  that  do  not  require   formal   education.   Middle-­‐skilled   occupations   involve   processes   that   can   be   explained  by  a  set  of  procedures.  Some  examples  are  clerk  assistants,  bricklayers,   welders   and   middlemen.   Finally,   high-­‐skilled   occupations   involve   no   rule-­‐based   solutions  as  well  as  expert  problem  solving.  Some  examples  are  medical  diagnosis,   managers   of   large   organisations   and   teachers.     Autor,   Levy   and   Murnane   (2003)   distinguish   routine   versus   non-­‐routine   tasks   in   the   workplace.   Routine   tasks   are   manual,   repetitive,   characterised   by   middle-­‐skilled   activities.   Routine   jobs   were   more   susceptible   to   automate,   as   are   easily   captured   in   a   computer   program.   However,   non-­‐routine   tasks   require   in   person   interaction,   common   sense,   adaptability   and   creativity,   activities   that   are   not   likely   to   be   performed   by   a   computer.  Nevertheless,  Brynjolfsson  and  McAfee  (2012)  ensure  that  last  industrial   robotics  and  automated  translation  services  could  also  take  over  non-­‐routine  tasks,   adopting  education  and  medicine  occupations.     It  seems  that  technology  is  threatening  a  whole  new  group  of  skills  and  that  all  type   of   occupations   are   exposed.   However,   middle-­‐skilled   occupations   are   the   most   susceptible   to   automation,   and   therefore,   likely   to   disappear.   (See   appendix   2).   Brynjolfsson   and   McAfee   (2012)   speak   about   the   Race  against  the  Machine  like   a   problem   that   human   being   is   facing   in   the   XXI   century.   Authors   acknowledge   the   technological  unemployment,  but  offer  some  advice  for  future.  This  is  discussed  in   the  last  part  of  this  paper.      
  • 7.   7   2.3  The  Middleman   As  mentioned  previously,  middleman  is  one  of  the  occupations  most  susceptible  to   automation,   and   at   risk   of   disappearing   in   the   near   future   (Hoar,   2015).   This   occupation   undertakes   middle-­‐skilled   activities,   following   set   of   rules   and   procedures.  Checking,  calculating,  remembering,  comparing  and  providing  customer   service,  are  some  of  the  tasks  performed  by  the  middlemen.  They  are  in  between   producers   and   customers,   also   called   B2B   sales   persons,   and   for   decades   these   occupations   were   successful   and   vital   to   many   industries.   However,   there   was   a   turning   point   in   history   when   these   professions   stopped   being   so   vital:     the   development  of  the  self-­‐service  e-­‐commerce.  From  that  point,  customers  started  to   have  direct  access  to  providers,  disrupting  distribution  channels  and  suppressing  the   middleman   step.   According   to   the   Forrester   Research   report   (Hoar,   2015),   one   million   B2B   salespeople   in   the   United   States   will   lose   their   jobs   by   2020   (see   appendix  3).    Customer  behaviour  has  changed  over  the  last  decade:  B2B  buyers  do   not  need  help  and  prefer  to  do  their  own  research,  avoiding  the  sales  person  (Hoar,   2015).   Nevertheless,   some   other   sources   argue   that   B2B   buyers   will   never   know   everything  about  new  products,  especially  more  complex  ones  such  as  hardware  and   software,  and  therefore  will  need  the  support  of  a  sales  person  (Schuck,  2015).  Hoar   (2015)   brakes   down   salesperson   in   four   different   types:   order   takers,   explainers,   navigators  and  consultants.  According  to  him,  order  takers  and  explainers  are  the   ones  at  the  highest  risk,  as  their  activities  can  be  easily  automatized.       2.4  The  Middleman  in  the  Travel  Agency   The   development   of   the   e-­‐commerce   appears   to   be   as   the   turning   point   for   the   middleman   occupation.   For   example,   the   Travel   and   Tourism   industry   saw   the   creation  of  the  Online  Booking  Systems  in  the  90s  (GAO,  2015).  This  tool  changed  the   Travel   and   Tourism   global   system   in   the   sense   that   travel   agencies   used   to   have   information  about  airlines  and  booking  capability,  and  airlines  depended  on  travel   agencies   to   reach   consumers   (GAO,   2003).   Moreover,   customers   needed   to   book   their   flights   through   travel   agencies,   so   they   were   key   in   the   distribution   chain.   However,  this  situation  was  altered  in  the  early  XXI  century,  with  the  Technological   Revolution  and  the  creation  of  the  Internet  Booking  Engines  (GAO,  2003).  Through   this  application  passengers  could  book  flights,  holidays  and  insurances  themselves,   cutting  out  the  travel  agencies,  and  obtaining  better  prices,  due  to  the  elimination  of   agents   fees.   From   this   point   airlines   offered   less   expensive   Internet   tickets,   encouraging   customers   to   buy   holiday   packages   from   different   websites   (GAO,   2005),   and   causing   travel   agencies   to   be   largely   redundant.   (See   appendix   4).   International   financial   institutions   and   telecommunication   firms   are   making   new   arrangements   in   order   to   help   the   traditional   sector   threated   by   technological   advanced   tools.   WTTC’s   spokesman   (2015)   appealed   the   need   to   employ   people   from  travel  agents  to  fulfil  their  roles.  However,  the  industry  needs  to  analyse  the   importance  of  the  middleman  position,  and  to  evaluate  if  it  will  continue  being  key  in   the  industry.  In  the  case  the  middleman  position  is  not  essential,  it  will  disappear   leaving  path  for  other  emerging  professions.     3.0  Identifying  a  Pattern     As   it   has   been   shown   through   this   paper,   since   the   Industrial   Revolution   certain   types   of   jobs   have   been   affected   due   to   disruptive   technologies.   Moreover,   it   has   been  shown  that  along  the  history  workers  have  been  able  to  develop  other  skills  to  
  • 8.   8   keep  pace  with  the  new  advances.  Figure  3  illustrates  this  phenomenon  over  the  last   decades  in  America:       Figure  3:  The  ‘Great  Decoupling’     (Bernstein,  2011)       From   1947   productivity   and   employment   have   grown   in   tandem.   Every   time   a   technological  advance  was  created,  some  industries  were  affected  by  it  but  after  a   period  of  time,  labour  continued  growing  steadily.  It  seems  like  when  a  technological   advance   arrives,   there   is   a   period   of   readjustment   where   some   professions   are   affected,  but  the  development  of  other  skills  creates  other  type  of  jobs.  This  graph   suggests   that   in   2007   something   happened   and   diverged   productivity   and   employment  lines.  Bernstein  (2011)  blames  other  factors  for  this  decoupling  apart   from  technology,  such  as  the  Great  Recession  or  the  companies’  offshoring.  Perhaps   this  would  require  further  studies,  as  it  cannot  be  predicted  if  these  two  lines  will   continue   growing   together   after   a   few   decades,   as   it   happened   in   the   past.   Economists  have  reassured  that  despite  the  automation  of  million  of  jobs  since  the   Industrial   Revolution,   workers   had   more   jobs   in   the   end   of   each   century.   It   is   necessary  to  leave  decades  to  pass  and  observe  in  order  to  study  what  other  new   skills   workers   will   develop   to   keep   pace   once   again   with   technology.   The   observation   of   this   pattern   can   provide   solutions   to   the   issue   of   disruptive   technology  putting  job  creation  at  risk,  as  if  it  happens  like  in  the  past,  there  will  be   again   readjustments.                
  • 9.   9   4.0  Recommendations  for  Leaders   Technology  has  developed  new  tools,  and  the  industries  that  have  integrated  new   advances   in   their   companies   have   been   benefited   from   it.   Therefore,   it   is   key   for   businesses,   Government   and   policy   makers   to   understand   that   this   is   not   a   new   phenomenon,   but   it   has   happened   previously,   as   seen   at   the   pattern   in   Figure   3.   Some   disruptive   technologies   from   the   Industrial   Revolution   and   how   the   humankind   has   managed   to   develop   other   skills   necessary   for   the   continuity   of   employment  have  been  analysed.    When  dealing  with  new  technological  advances   companies  can  either  ignore  them  and  face  being  eliminated,  or  embrace  and  adapt   to  them.  A  number  of  actions  towards  technological  advances  are  necessary,  long-­‐ term  strategies  above  all.  Several  challenges  were  successfully  overcome  since  the   Industrial  Revolution,  and  some  of  these  recommendations  are  based  on  what  has   been   made   in   the   past;   the   search   for   new   skills.   According   to   Brynjolfsson   and   McAfee   (2012)   humans   will   have   to   constantly   innovate   in   order   to   race   with   machines.  In  fact,  the  key  to  win  is  not  to  compete  against  machines  but  compete   with  them.  This  is  recommended  to  improve  the  rate  and  quality  of  organizational   innovation,   and   to   increase   human   capital   in   order   to   make   sure   people   have   the   skills   needed   to   keep   pace   with   technology.   In   the   beginning   of   the   Computer   Revolution   low-­‐skilled   workers   had   to   evolve   towards   other   middle-­‐skilled   occupations.  Nowadays  there  is  enough  evidence  that  shows  the  middle-­‐skilled  jobs   are  at  risk.  In  order  for  the  employment  to  survive  it  is  necessary  to  apply  the  past   pattern  into  the  future,  reallocating  workers  to  other  tasks.  Middle  as  well  as  high-­‐ skilled   workers   will   have   to   develop   and   acquire   creative   and   social   skills,   no   susceptible   to   automation   at   the   moment.   McKinsey   report   (2013)   acknowledges   that  computers  are  becoming  capable  of  doing  jobs  that  were  assumed  to  be  done   only  by  humans,  therefore  in  future  there  will  be  the  need  to  continue  applying  the   pattern  and  some  strategies  to  keep  pace  with  disruptive  technologies.         Governments   and   policy   makers   play   an   important   role   in   bringing   disruptive   technologies   to   life,   as   they   set   rules   and   standards   and   help   the   new   markets   to   emerge.  Additionally,  they  provide  funding  at  early  stages.  They  have  power  towards   technology;  therefore  they  can  limit  and  control  its  progress.  In  order  to  adapt  to   change,   they   have   the   responsibility   to   set   some   strategies   that   will   have   direct   effects  on  employment:     • It   is   recommended   to   assess   new   technologies   at   early   stages   in   order   to   address  the  way  they  will  affect  businesses,  the  global  economy  and  generally   transform   life.   As   explained   previously,   for   technology   to   be   considered   disruptive   it   has   to   create   a   massive   economic   impact,   and   dramatically   change   the   way   people   live   and   work.   That   is   why   Governments,   policy   makers,  businesses  and  mostly  all  leaders  should  work  with  formal  strategic   planning  to  deal  with  the  technological  changing  world  (Aker  &  Porter,  1995).   Strategic  management  is  key  in  preparing  the  future  of  the  employment  with   technology.  Each  industry  should  analyse  what  strategies  are  beneficial  and   what   are   not,   as   they   may   vary   from   one   industry   to   another.   Therefore,   leaders   should   choose   strategies   through   an   analytical   process,   under   the   premises   of   the   positioning   school   (Mintzberg,   Ahlstrand   &   Lampel,   2009).   Firstly,  SWOT  and  PESTLE  analysis  should  be  undertaken  to  create  awareness   of   the   internal   and   external   environment,   and   to   know   the   position   in   the   marketplace.   Secondly,   strategies   should   be   chosen   and   implemented.   Common   efforts   are   vital   to   establish   objectives,   policies   and   strategies   to  
  • 10.   10   gain  industries  purposes.  This  view  is  future  oriented,  and  will  address  the   way   technologies   impact   people’s   work   and   lives.   By   anticipating   to   these   impacts,  emerging  technologies  will  disrupt  in  a  controlled  way  and  create  an   environment   where   the   potential   of   working   in   tandem   with   technology   is   boundless.   There   are   no   doubts   that   identifying   the   capabilities   of   fusing   technology   and   industries   together   will   help   achieving   the   objectives   and   anticipate  the  impacts.     • At   the   present   time   a   large   number   of   jobs   are   at   risk   due   to   technology;   therefore  it  is  necessary  for  leaders  to  support  the  workforce.  An  example  of   this   evolution   in   job   skills   are   creative   and   social   skills,   which   are   new   recommended  skills  that  need  to  be  acquired,  as  they  are  less  susceptible  to   automation.  However,  there  is  evidence  that  support  the  automation  of  social   intelligence   in   the   next   decades,   so   there   will   be   necessary   a   revision   and   modification  of  future  trainings.  Workers  should  be  constantly  encouraged  to   adapt   to   changes.   The   implementation   of   a   skills   audit   process   is   key   for   managing  the  situation  as  well  as  intervening  in  a  proactive  way,  in  order  to   create   and   control   rather   than   just   respond   to   the   advance   after   it   has   happened.  By  conducting  skill  audits  there  is  a  determination  of  the  key  skills   required   for   a   certain   type   of   job   as   well   as   any   gaps   within   the   related   industry.   The   identification   of   the   required   skills   allows   a   sector   to   grow   along   with   technology   assisting   organisations   to   respond   promptly   to   disruptions.  Presumably,  a  skill  audits  in  the  Industrial  Revolution  could  have   had   anticipated   the   type   of   training   required   for   artisans   to   allow   them   to   deal   with   new   innovative   powered   tools.   Thus,   leaders   first   need   to   determine  what  technologies  will  have  effect  in  the  way  people  live  and  work,   and  then  undertake  a  skills  audit  with  the  following  points:     -­‐Skills  requirements.  What  types  of  skills  are  needed  to  keep  pace  with  the   new  technology?  List  the  skills  that  will  be  necessary  in  the  future  according   to  the  new  technology’s  features.     -­‐Actual   skills.  What  type  of  skills  do  the  workers  currently  have?  List  with   the  skills  workers  have,  in  order  to  have  awareness  of  the  gaps  the  sector  has   and  need  to  be  fulfilled.     -­‐Training  needs.  After  knowing  the  skills  we  have  and  the  skills  we  need  to   have,  training  must  be  provided  in  order  to  cover  the  needs  that  technological   advance  will  have.     5.0  Taking  action  in  the  Travel  and  Tourism  Industry   This  paper  has  shown  how  the  automation  era  arrived  a  few  decades  ago  with  the   Industrial  Revolution,  and  how  it  affected  the  workplace.  Additionally,  it  has  been   analysed  how  the  Travel  and  Tourism  industry  has  been  severely  impacted  since  the   mid-­‐1990s.  Airlines  developed  global  computer  distribution  systems  (CRS)  allowing   consumers   to   buy   their   tickets   through   a   new   do-­‐it-­‐yourself   model,   dramatically   impacting   the   middlemen   (GAO,   2003).   From   that   point   the   Travel   and   Tourism   industry   has   not   been   the   same.   However,   there   are   great   examples   about   how   enterprises  have  continued  growing  in  tandem  with  technology.  The  following  are   examples   of   technologies   that   the   Travel   and   Tourism   industry   has   been   able   to   adapt   to,   taking   advantage   instead   of   being   eliminated   by   them.   Rothwell   (1994)   noted  how  the  first-­‐generation  Innovation  Process  in  1950  developed  towards  the   fifth-­‐generation.   Firms   commenced   having   alliances   in   response   to   the   industrial  
  • 11.   11   technological  change,  as  they  knew  they  needed  strategies  and  new  models  to  adapt.   For   instance,   Travel   Technology   &   Solutions   is   an   organisation   that   provides   customised   technology   to   any   travel   company   that   needs   to   automatize   their   services  to  ensure  its  continuity.  For  instance,  they  point  out  travel  agents  as  key  for   corporations   to   ensure   successful   business   trips   (TTS,   2015a).   They   encourage   businesses   to   rely   on   the   middleman   for   taking   care   for   tasks   such   as   luggage   or   cancellations,   so   they   can   take   care   about   their   businesses.   Additionally,   this   organisation  believes  in  modern  travel  agencies,  rising  the  need  to  have  a  platform   where   members   of   the   staff   and   customers   are   connected   anywhere   via   mobile,   laptop  or  tablet  (TTS,  2015b).    Mobile  Internet  has  been  a  key  factor  for  the  Travel   and  Tourism  industry,  as  travellers  are  able  to  contact  travel  agents,  hotels,  and  so   on  with  their  mobile  devices.  Applications  allow  to  book,  retrieve  or  change  anything   in  real-­‐time,  being  this  very  helpful  when  travelling  (Morosan,  2013).  This  mobile   model  creates  strong  relationships  between  customer  and  agents.  The  automation  of   knowledge   work   is   another   example   of   disruptive   technology   integration   in   the   Travel   and   Tourism   industry.   Some   intelligent   software   systems   can   perform   unstructured  commands  and  give  answers  to  customer’s  questions  (KPMG,  2016).   Siri  is  an  example  of  intelligent  assistant  that  is  integrated  in  the  Travel  and  Tourism   industry   under   this   technology.   Furthermore,   advanced   robotics   is   another   disruptive  technology  that  has  been  used  to  perform  some  human  tasks.  An  excellent   example  of  this  is  what  the  Geneva  airport  has  created  to  offer  passengers  cutting-­‐ edge  technology:  a  cordless  robot  that  assists  customers  in  case  of  any  doubts  and   navigates  through  the  airport  on  its  own  (ifr.org,  2013).  All  previous  examples  have   shown  how  the  Travel  and  Tourism  industry  has  been  constantly  evolving  and  trying   to  adapt  to  new  technologies.  Firstly,  Internet  allowed  customers  in  the  90s  to  set  up   their  own  travels  through  the  online  booking  services.  Secondly,  digital  advances  are   allowing  customers  to  have  universal  connectivity  and  real-­‐time  information  in  their   devices.  New  technologies  will  continue  disrupting  in  the  future  in  the  same  as  it  did   in  the  past,  probably  reordering  the  Travel  and  Tourism  industry  again,  and  it  will   have   to   adapt   decade   by   decade   for   its   continuity.   An   example   of   this   is   the   autonomous   vehicles,   which   probably   will   undertake   tasks   in   the   industry   in   the   near  future  such  as  the  transfers  to  the  airports,  or  even  piloting  airplanes.         The  impact  of  disruptive  technology  in  the  Travel  and  Tourism  industry  has  been   studied   in   depth.   Travel   and   Tourism   leaders   are   recommended   to   take   action   towards   technological   advances   before   they   disrupt   people’s   lives   and   jobs   in   a   negative  way.  The  following  framework  is  proposed  to  help  leaders  to  prepare  for   future  technology.  Figure  4  shows  the  ‘Diamond  Framework’,  where  leaders  need  to   look  head  for  researching,  detecting,  planning  and  acting  for  coming  opportunities:     1. Extensive   research   to   identify   technology   with   potential   for   massive   impact.   It   is   key   to   start   with   an   exhaustive   analysis   of   the   potential   disruptive   technologies.  Which  technologies  are  emerging?  Which  ones  will  have  a  profound   impact?   Normally,   they   are   the   ones   that   affect   millions   of   workers   and   demonstrate  a  rapid  economic  development.  To  reach  the  candidates,  it  will  be   necessary  to  interview  experts,  and  analyse  academic  journals  and  press.       2. Detect  which  technology  affects  the  Travel  and  Tourism  industry.   From  all  disruptive  technologies  identify  the  ones  that  matter  and  will  impact  the   Travel  and  Tourism  industry.  For  that,  leaders  of  the  sector  need  to  study  the  
  • 12.   12   potential  of  each  of  the  candidates  as  well  as  their  features,  and  how  they  will   evolve.  Some  technologies  that  currently  are  supporting  and  working  in  tandem   with   the   Travel   and   Tourism   industry   have   been   identified   in   this   paper.   However,  new  advances  will  be  invented  in  the  following  decades  and  leaders   will  have  to  go  back  to  the  step  1  of  this  framework,  and  start  the  study  of  new   technologies  again.     3. Strategic  Management   The  industry  needs  to  be  managed  through  a  strategic  planning  context,  where   objectives  and  strategies  are  well  planned  in  advance.  Leaders  do  not  have  to   wait   until   the   technology   arrives,   but   they   must   act   before.   The   Travel   and   Tourism   industry   needs   to   understand   the   realities   and   forces   of   its   environment.   Porter’s   Five   Model   (Mintzberg,   Ahlstrand   &   Lampel,   2009)   is   a   proposal   for   leaders   of   the   industry.   By   analysing   the   elements   of   the   environment,   they   will   be   able   to   understand   the   position   they   are   in   the   marketplace   and   influence   the   future   environment   in   a   beneficial   way   (see   Appendix   5).   The   forces   in   the   model   are   suppliers,   new   entrants,   buyers,   substitutes   and   competitors.   The   strength   of   these   forces   will   influence   what   strategy   leaders   have   to   choose.   Perhaps,   they   could   use   SWOT   analysis   to   understand  the  internal  as  well  as  external  environment.  This  is  a  continuous   changing   and   adapting   process,   as   technology   evolves.   Therefore,   analysis   of   environment   and   steps   1   and   2   of   this   framework   are   key   for   planning   and   strategies   formulation.   Leaders   with   the   ability   to   apply   strategies   with   a   positioning   school   point   of   view   will   raise   the   Travel   and   Tourism   industry   value,  as  they  will  be  able  to  modify  its  structure  in  future  and  find  a  position  to   sustain  competitive  advantage  (Mintzberg,  Ahlstrand  &  Lampel,  2009).       4. Skills  Audit  (Appendix  6)   A   skills   audit   needs   to   be   done   in   order   to   know   what   requirements   the   new   technology  has,  what  skills  there  are  currently,  and  the  training  that  should  be   undertaken  to  gain  digital  talent,  and  therefore  manage  automation.  For  instance,   if  the  new  technology  were  a  cognitive  robot,  people  with  expertise  level  to  give   knowledge   based,   to   validate   that   knowledge   over   time,   and   to   be   able   to   respond  would  be  needed.  Moreover,  there  is  a  need  for  workers  to  maintain  the   essential  technology  infrastructure.  Therefore,  there  are  a  number  of  new  skills   sets  that  leaders  need  to  identify  in  order  to  train  workers.  This  is  key  to  face  the   challenge  the  new  technology  brings,  as  leaders  need  to  act  before,  and  anticipate   for  the  coming  opportunities.         Figure  4.  The  ‘Diamond’  Framework.                         R esearch Action D etect Plan
  • 13.   13     6.0  Conclusion   This  paper  has  evaluated  how  technology  is  affecting  job  creation  in  the  Travel  and   Tourism  industry.  To  reach  the  aim,  the  ways  how  technology  has  developed  and   impacted  some  occupations  since  the  Industrial  Revolution  have  been  explored.  The   middleman   inside   the   Travel   and   Tourism   industry   has   been   identified   as   one   of   those   occupations,   professions   belonging   to   the   middle-­‐skilled   group   strongly   threatened  by  automation.  Furthermore,  a  pattern  shows  the  way  productivity  and   technology  have  been  able  to  continue  growing  in  tandem  in  past,  offering  leaders   some  considerations  for  the  future.  With  this  study,  answers  to  the  objectives  of  this   paper  were  given.  Moreover,  some  useful  recommendations  that  could  help  leaders   of   any   industry   to   act   towards   possible   negative   effects   of   technology   in   people’s   work  and  life  were  found.  Lastly,  a  framework  has  been  drawn  in  an  attempt  to  help   leaders  of  the  Travel  and  Tourism  industry  to  anticipate  to  new  technologies,  and  be   prepared  before  they  disrupt.  Leaders  must  understand  they  can  act  now  in  order  to   shape  the  future  of  the  industry.      
  • 14.   14   7.0  References     Akers,  M.  &  Porter,  G.  (1995)  Strategic  Planning  at  Five  World-­‐Class  Companies,   Management  Accounting.  Vol  77,  N  1,  p24.     ATTC  (2010).  A  Blueprint  for  Technology  Transfer.  2nd  ed.  Bloomington:   AuthorHouse.     Autor,  D.  (2014)  Polanyi's  Paradox  and  the  Shape  of  Employment  Growth.  [pdf]   Available  at:  http://economics.mit.edu/files/9835  [Accessed  12  Oct.  2015]   Autor,  D.,  Levy,  F.  and  Murnane,  R.  (2003).  The  skill  content  of  recent  technological   change:  An  empirical  exploration.  [pdf]  Available  at:   http://www.nber.org/papers/w8337.pdf  [Accessed  18  Jan.  2016].     Benedikt,  C.  and  Osborne,  M.  (2013).  The  Future  of  Employment:  how  Susceptible  Are   Jobs  to  COMPUTERISATION?.  1st  ed.  [pdf]  Available  at:   http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employme nt.pdf    [Accessed  15  Jan.  2016].     Bernstein,  J.  (2011)  ‘The  Challenge  of  Long  Term  Job  Growth:  Two  Big  Hints’,  Jared   Bernstein.  Available  at:  jaredbernsteinblog.com/the-­‐challenge-­‐of-­‐long-­‐term-­‐job-­‐ growth-­‐two-­‐big-­‐hints/    [Accessed  1  Feb.  2016].       Brinker,  S.  (2014)  A  new  brand  of  marketing.  The  7  meta-­‐trends  of  modern  marketing   as  a  technology-­‐powered  discipline.  [pdf]  Available  at:   http://cdn.chiefmartec.com/wp-­‐ content/uploads/2014/03/a_new_brand_of_marketing.pdf  [Accessed  1  Feb.  2016].     Brynjolfsson,  E.  and  McAfee,  A.  (2012)  Thriving  in  the  Automated  Economy.  [pdf]   Available  at:  http://ebusiness.mit.edu/erik/ma2012_brynjolfsson_mcafee.pdf     [Accessed  20  Oct.  2015].   DiGironimo,  N.  (2011).  What  is  Technology?  Investigating  Student  Conceptions   about  the  Nature  of  Technology.  International  Journal  of  Science  Education,  33(10),   pp.1337-­‐1352.     GAO  (2003).  Impact  of  Changes  in  the  Airline  Ticket  Distribution  Industry.  United   States,  GAO.     Hoar,  A.  (2015)  Death  of  a  (B2B)  Salesman.  [online]  Available  at:   http://blogs.forrester.com/andy_hoar/15-­‐04-­‐14-­‐death_of_a_b2b_salesman   [Accessed  28  Jan.  2016].     Ifr.org  (2013)  BlueBotics,  Switzerland  –IFR-­‐Partner.  [online].  Available  at:   http://www.ifr.org/service-­‐robots/case-­‐studies/bluebotics-­‐switzerland-­‐ifr-­‐partner-­‐ 541/  [Accessed  10  Feb.  2016].     KPMG  (2016)  From  Human  to  Digital:  The  future  of  Global  Business  Services.  U.S.:  HfS    
  • 15.   15   McGinn, R. E. (1991). Science, technology, and society. Englewood Cliffs, NJ: Prentice Hall   McKinsey  Global  Institute  (2013).  Disruptive  technologies:  Advances  that  will   transform  life,  business,  and  the  global  economy.  1st  ed.  [pdf]  Available  at:   http://www.mckinsey.com/insights/business_technology/disruptive_technologies     [Accessed  1  Nov.  2015].     Mintzberg,  H.  Ahlstrand,  B.  &  Lampel,  J.  (2009)  Strategy  Safary,  your  Complete  Guide   through  the  Wilds  of  Strategic  Management.  2nd  ed,  Great  Britain:  Prentice  Hall.     Morosan,  C.  (2014)  "Toward  an  integrated  model  of  adoption  of  mobile  phones  for   purchasing  ancillary  services  in  air  travel",  International  Journal  of  Contemporary   Hospitality  Management,  Vol.  26  Iss:  2,  pp.246  -­‐  271     Rotman,  D.  (2013).  How  Technology  is  Destroying  Jobs.  [online]  Available  at:   https://www.technologyreview.com/s/515926/how-­‐technology-­‐is-­‐destroying-­‐ jobs/  [Accessed  25  Jan.  2016].     Rothwell,  R.,  1994.  Towards  the  fifth-­‐generation  innovation  process.  International   Marketing  Review,  11(1),  pp.  7.     Schuck,  H.  (2015)  Forrester  predicts  the  death  of  1  million  salesmen  by  2020:  Henry   Schuck  disagrees.  [online]  Available  at:  http://discoverorg.com/blog/forrester-­‐ predicts-­‐the-­‐death-­‐of-­‐1-­‐million-­‐salesmen-­‐by-­‐2020-­‐henry-­‐schuck-­‐ disagrees/?LS=Blog&CP=W:LinkedIn-­‐Henry  [Accessed  1  Feb.  2016].     Telegraph.co.uk  (2014)  Ten  million  jobs  at  risk  from  advancing  technology.  [online]   Available  at:   http://search.proquest.com.ezproxy.brighton.ac.uk/docview/1622163835/F57EF7 F410B04F7DPQ/1?accountid=9727  [Accessed  20  Jan.  2016].     TTS  (2015a)  ‘What  is  the  future  of  the  Corporate  Travel  Agent?’  [Online]   http://tts.com/blog/what-­‐future-­‐corporate-­‐travel-­‐agent  [Accessed  1  Feb.  2016].     TTS  (2015b)  ‘This  Technology  for  Travel  Agents  Never  Gets  Old’.  [Online]   http://tts.com/blog/technology-­‐travel-­‐agents-­‐never-­‐gets-­‐old  [Accessed  1  Feb.   2016].     WTTC  (2015)  Global  travel  trends  and  issues  for  the  travel  and  tourism  sector.   [online].  Available  at:  http://www.wttc.org/-­‐ /media/382bb1e90c374262bc951226a6618201.ashx  [Accessed  1  Feb.  2016].                
  • 16.   16   8.0  Appendices     Appendix  1       (McKinsey  Global  Institute,  2013)  
  • 17.   17   Appendix  2     Chart  that  shows  how  some  middle-­‐skilled  occupations  have  dramatically  drop  in   the  United  States  over  the  last  decades.         (McKinsey  Global  Institute,  2013)                                            
  • 18.   18     Appendix  3     This  graph  shows  1  million  sales  people  in  the  United  States  that  will  lose  their  jobs   by  2020.       (DiscoverOrg,  2015)       Appendix  4     This  chart  shows  how  the  Internet  airline  bookings  have  increase  from  1999  to   2002.         (GAO,  2003)  
  • 19.   19   Appendix  5     Porter’s  Five  Forces  model.  Elements  of  industry  structure.       (Strategy  Safari,  2009)                                                    
  • 20.   20   Appendix  6     Skills  audit  to  help  leaders  to  create  awareness  and  face  new  technological  advances.