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
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8.0
Appendices
Appendix
1
(McKinsey
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Institute,
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Appendix
2
Chart
that
shows
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middle-‐skilled
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Appendix
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Appendix
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Appendix
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