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Smart cities and tourism

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Which smart tourism experiences are more likely to enhance
the destination attractiveness?
Sarah Poupineau
I. Introduction...
neighbour open-air rubbish dumps. Slums account for half of the urban world
population, integrating new migrants searching...
Zhang et al (2012) suggest that to set up a smart-tourism system, 4 forms of
Information Computers Technologies (ICTs) are...
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Smart cities and tourism

  1. 1. Which smart tourism experiences are more likely to enhance the destination attractiveness? Sarah Poupineau I. Introduction Why are cities more important than ever? The process of accelerated urbanization on the world scale profoundly modifies the inhabitant’s way of living. Today more than half of the world population lives in cities. In 2050, it is estimated that this will increase by 70% (World Health Organization 2016).This urbanization is characterized by an increase of cities over one million in population in addition to megalopolis (cities with more than 10 million inhabitants). Their geographical distribution is unequal around the globe. The future of the planet is partly at risk in those sprawling cities where each month, 5 million people settle. How does one live decently in such cities where the priority is to find a place to live? In those megalopolis, disparate forms of architecture coexist: buildings Smart tourism is a new trendy expression related to the increasing reliance of cities destinations and their tourists on new innovative forms of ICT that allow to transform massive amount of data into valuable offers. However, the concept of smart tourism lacks theoretical development. The report will attempt to define a successful smart city and understand the change in the tourist experience by shedding light on current smart tourism trends. This is followed by a cross-study analysis aiming to complement information on key success factors for a touristic project. It will also make a point on the contribution of smart touristic initiatives achieving attractiveness of the destination. The paper further draws attention to the obstacles, criticism and impacts of such projects. Keywords: Smart cities • Smart technologies • Tourism experience • Case Study • Smart destination •
  2. 2. neighbour open-air rubbish dumps. Slums account for half of the urban world population, integrating new migrants searching for a job in the city. Another global phenomenon of the Western world that left a mark on modern Asian cities is the importance given to the automobile in urban planning. Transport infrastructures have deeply modified cities but not only this : they have also impacted the relationship between the available space for traffic and the city life. This has led to a fragmentation of the urban landscape and the development of residential enclaves while upsetting a coherent integration of the population. In light of city growth and other environmental issues, certain decision-makers and planners have embarked on the development of the smart city concept. At its core is the idea of optimizing networks which criss-cross cities (water, electricity, transportation, waste) thanks to digital highways. The development of such gigantic cities gives rise to new ways of thinking with a view to living together better; it takes into account social and ecological problems in order to avoid the worst scenarios. Smart cities are providing an alternative answer. What is a smart tourism experience? Smart technologies have received a widespread interest in the field of tourism. Technology has not only become an integral part of tourism but has revolutionized the way travelling is planned. New business models are emerging thanks to smart technologies in the tourism sectors (Buhalis, 2003). Mobile applications, virtual reality, cloud computing, open innovation, on-location based services are all examples of smart innovations enhancing the tourism experience (Wang et al., 2012) The city appeals as a place where all the opportunities for ‘being a protagonist’ is affecting the choice of the tourist destination. Indeed, cities have become one of the preferred places of the current tourist demand. Particularly reinforced with the new collaborative dimensions of technologies, the market place has undergone a kind of revolution with tourists playing an active and interactive role in the experience. In this vein, Gretzel and Jamal (2009) question the successful integration of technology into the tourist experience. Yet, the understanding of the key success factors for a smart tourism experience is limited. Recent research recognizes the potential of technology for more personalized, interactive and socially engaged experience (Neuhofer, 2013).
  3. 3. Zhang et al (2012) suggest that to set up a smart-tourism system, 4 forms of Information Computers Technologies (ICTs) are vital: Internet of Things (IoT), cloud computing, mobile technology and artificial intelligence. Despite an increasing number of smart tourism studies, research exploring the smart tourism experiences and its relationship with destination attractiveness research remain fairly scarce (Gretzel, 2011). Based on this fact, the aim of the report is to bridge the gap between enhanced tourism experience and destination attractiveness to address the research question of “Which smart tourism experiences are more likely to enhance the destination attractiveness?”. It is hoped that this study can give useful directions for the diagnosis of the key success factors of a smart tourism experience in a smart city by means of several cases study approach. The paper first assesses the current literature on smart cities and tourist experience, followed by the outline of the methodological approach. It then presents the research findings related to the success factors of a touristic experience in a smart city. Finally, it highlights several criticisms and discusses limitations and suggestions for further studies. II. Literature review Definition of smart cities The innovative city The smart city is based on the identification of millions of elementary occurrences from recording traffic hotspot, evaluating individual’s energy consumption to measuring air pollution. Smart tourism is becoming a big contributor and benefactor of the “sensor society” (Andrejevic and Burdon 2015) that is characterized by ubiquitous, always-on data capture. During all travel-related activities, customers leave electronic traces like searching a trip, planning, booking, giving feedbacks... As a result it multiplies the sources of data, the channels of communications and the interactions. Yet, despite the abundance of data, few cities are able to interpret and integrate these data inside their urban system (La Rocca, 2013). One key question is
  4. 4. the role of governments in these cities: do governments have to take the leading role in coordinating smart city initiatives despite their own short term engagement? For Coe et al (2001), “smart city governance should encapsulate collaboration, cooperation, partnership, citizen engagement and participation”. They need to break down their current practice of working in silos and “act as a network of multiple systems” (Anne Hidalgo, 2016). “Cities that can shift from the traditional bureaucratic approach to using ICT to support e-governance can achieve greater smart city objectives” (Moon and Welch, 2005) A smart city therefore starts with smart citizens who are engaged in the process and asked on their opinions. (Mulligan 2013). The Future Space Foundation believes that “making data more readily available improves travel experiences for everyone, whether they are a commuter, a tourist or a resident exploring everything the city has to offer.” Therefore cities need to “open-up” to their citizens by offering their data in an easily accessible and reusable format. Moreover, open data policies can also foster a culture of innovation as well as create jobs. The sustainable city Sustainability and the environment are critical to the urban landscape as cities account for 80% of CO2 emissions and 75% of global energy consumption. Cities no longer have the option to keep on working the way they have done in the past. There are growing concerns on existing natural resources, increasing pressure regarding the transportation infrastructures, access to education, provision of adequate healthcare and safety of the growing number of urban residents. As a result, the smart sustainable city aims to achieve an economically sustainable urban environment without reducing the population quality of life through the use of ICTs. The aggregation of data is not only used for the purpose of data analysis but also to understand better how the city is running its resource consumption, services and lifestyle. Many smart sustainable initiatives are already arising in the cities: rooftop farms, shared gardens, vertical farms on skyscrappers, smart waste management, smart city lighting…
  5. 5. The social city Artificial intelligence, digital revolution…the future of our cities seems to head towards hyperconnexion and new technologies. Yet, is it the only solution so that change may happen in our society? Next to the smart city, a human, collaborative and open city is emerging. A smart future for our cities is one where we live more collaboratively - not just by sharing decision-making and policy development, but by sharing commodities such as cars, energy, data. Sharing economy platforms directly contribute to the smartness of a city by providing services matching the need of the municipality and speeding up social and urban transformations. It also indirectly improve the attractiveness of a city. If a city is known to be innovative and open to these new services, it may definitely attract business opportunities, tourists, and improve the urban economy. Understanding the change in the tourist experience Travel experience” is defined by all the interactions and emotions felt by the traveler at each step of his trip”. Considering the dynamic nature of the tourism industry, experiences are subject to constant change. With fierce competition in the domain of tourism experiences, the two significant paths for improvement have to do with the integration of ICTs and the increasing co-creation of experiences. Information and communication technologies: ICTs have represented a catalyst of change that has opened unprecedented possibilities for tourist experience creation and enhancement” (Sigala, 2012) The 4 forms of ICTs vital for Zhang et al (2012) enable for the collection of information in an unobtrusive and cost-effective way. When strategically implemented, companies can use ICTs to collect and analyze consumer needs to maximize both tourist satisfaction and the destination competitiveness (Picolli et al. 2003). Co-creation: Empowered experiences incorporate immersive technological solutions to allow the tourist “to become highly involved, actively participate and co-create with multiple stakeholders throughout all stages of travel” (Neuhofer & Buhalis, 2013). The idea of providing customers with empowered and unique experiences (Pine & Gilmore,
  6. 6. 1999) and thereby creating added value for them was proposed as a the key competitive advantage. As a result, Pine & Gilmore emphasize that “companies do not actually compete in terms of market price but rather in terms of the distinctive value of an experience provided”. Upgrading the experience: ICTs have been central in building up platforms of interaction where dialogues occur, fostering personalization and creating meaningful experiences (Buhalis, 2002). In operating such possibilities, tourists are integrated in the value chain and can customize their experience according to the background, their needs and preferences. Such change in touristic behavior has brought the tourism industry to a challenging situation and has led to the development of “smart destinations.” What is important is not the technological development itself, but rather the strategic and adequate integration of smart technology as a resource for the co- creation of valuable touristic experiences. This paper suggests to subdivides the experience creation process to understand where and how technology is used alongside the different stages of travel. III. Analytical method : A case study approach has been used to validate the findings empirically and measure the impact of smart touristic initiatives in the destination attractiveness To address this enquiry, cases were identified following the benchmark of enhanced tourists’ experiences. The selection has been treated according to a set of defined criteria such as being represented in the hospitality & tourism industry, and embodying currently a successful initiative of enhanced tourism experience in a smart city. The following indicators had to be: attracting wide support, having clear objectives, producing concrete outcomes and impacts, being imitated or scaled. In this process, eight organizations were contacted covering various industry sectors: telecoms, museums, destination management organization (DMO’s), hospitality, travel agencies and restaurants. As major assets for the case study research, multiple sources were integrated including informal interviews, observation, documentary information, surveys. Informal interviews with project owners favored an in-depth understanding of real life cases, while direct observations and on-site
  7. 7. tests and visits enabled to get a first-hand technology-enhanced experience .This diversified data collection allowed for a mixed and comprehensive understanding of the smart tourism experience. Table 1. Case study outline Case Nr. Company Industry sector Rationale choice 1 Co-creation between Orange / Musée de l’Homme Telecom /museum Orange Beacon partnered with the Musée de l’Homme in Paris to create a fun and educational app for children. It offers a chance to visit the museum through a series of interactive games thanks to the use of Orange Beacons. 2 Château de Versailles Museum The Château de Versailles offers several applications using Augmented Reality and 3D to guide tourists in their visit. 3 Val Thorens Destination Management Organisation The tourist office offers an interactive 360° video on their Facebook page that takes tourist virtually through different places of their destination. 4 Thomas Cook Travel Agency The travel agency equipped its agencies in England, Belgium and Germany with Oculus Rift headset to inspire clients and enable them to virtually visit hotel before booking. The application consists in projecting oneself into a virtual dimension by pointing one’s smartphone to the specific place to ‘discover’. 5 August Smart Lock Hotel August Smart Lock partnered with Airbnb to propose a keyless access to Airbnb’s hosts through an app and a connected lock for a safer and time-saving check-in and check-out. 6 Voyages SNCF Transport The company uses humanoid robots called “Pepper” which give information on trains, helps travelers to carry their luggage, and gives information on nearby public transportation.
  8. 8. 7 Tourist Office Alençon Destination Management Organization The tourist office of a French city in Alençon proposes an app including beacons and virtual reality to attract its visitors through an immersive visit of the city. 8 E-Office NFC Restaurants Restaurants use NFC technology to translate the menus of the restaurants in several languages. The tourist just needs to flash a QR code to get access to the translation. IV. Findings and discussion Smart Tourism Experiences Having undertaken eight case studies, this section presents the findings of the study. The four forms of vital ICT are validated by the case study analysis: The Internet of Things is transforming the customer experience by merging the digital and physical world. Both Alençon city and the Musée de l’Homme set up beacons sensors in the city or in the museum to push interactions to visitors when they are near to the place. Throughout their journey, visitors are guided and can discover the story behind the different monuments or paintings thanks to mobile applications. August Smart Lock also uses IoT to send electronic keys to their Airbnb’s host’s smartphone, transforming the welcoming phase into a smooth experience. The mobile technology is also a key tool enabling information retrieval anywhere at any time. Firstly, the mobile provides the right information at the right time and in the right place . Secondly, mobile device becomes the new travel guide facilitating the traveler’s experience: information, orientation, photographing, sharing … Many apps now give the possibility to book an activity on site thanks to dematerialized tickets or NFC technology. For instance, E-restaurant uses NFC readers to send the translated menu directly on their guest’s smartphone. At the booking stage, destination travelers have now the opportunity to watch immersive 360° videos through virtual reality headsets on their smartphones to project even more in the future. Thomas Cook has invested in virtual reality technology to inspire clients and enable them to virtually visit the hotel before
  9. 9. booking. On the same vein, the tourist office of Alençon enables to visualize the famous Alençon castle at different times in history providing an immersive experience. To upgrade tourist personalization artificial Intelligence allows businesses to facilitate the right customer service at the right time. Voyages SNCF for instance offers a humanoid robot called Pepper which gives information on trains and nearby public transports, and helps travelers to carry their luggage. This bot uses the SNCF APIs to provide essential information to train station‘s users. Finally, the cloud computing technology stimulates information sharing and provides access to solid data storage. The findings from the cross-case analysis indicated that technology can be used either has a supplementary role to support the experience either constitutes the integral part of the experience. The analysis also suggested that technology is revolutionizing the experience creation by offering high level of interactivity, social engagement and personalization. This is in line with literature, such as Neuhofer et al. (2013) who argue that ”the more involved the tourists are with the technology, the richer their physical experience will be.” In this respect, social media play an important role in empowering levels of interaction among multiple parties. The tourist not only co-creates his experiences with his immediate environment but also interacts with physically distant surroundings. The Val Thorens DMO’s assert their strong digital positioning and foster brand destination loyalty by being the first to offer an interactive 360° video on their Facebook page. It is also a way to promote their destination to new markets allowing clients or tourist operators to visit the city virtually without being actually in Val Thorens.
  10. 10. The experiences utility functions can be seen on Table 2: Smart tourism experiences Company Goals and advantages 1. Virtual reality (VR) enables visitors to experience digital recreation of tourism sites and time travel 2. NFC tags give access to translated restaurant menus 3. Tourists are guided thanks to beacon technology 4. 360° video is proposed on the Facebook page of a destination 5. IoT smoother the check-in experience 6. Pepper robot provides real-time information on transport network and guide the tourists in a train station Alençon Tourist Office Thomas Cook E-NFC restaurants Musée de l’Homme Château de Versailles Alençon Tourist Office Val Thorens August Smart Lock Voyages-SNCF Promotion of the destination Mind-blowing experience Encourage visitors to spend more time on site Increase their willingness to visit the place further Attract new market Increase sales Promote local culture Smart mobility Innovate Highlight the experience Foster their digital brand destination positioning Attract new markets Inspire, keep tourists engaged in real time Facilitate the experience Secure Planning Guidance Create a smart destination experience from scratch requires the project leader to constructively involve and collaborate with the different stakeholders. Table 3 summarizes the different outcome for each stakeholders based on the analysis of the case studies.
  11. 11. Table 3. Smart tourism experience characteristics Stakeholders Characteristics of the requirements Government ● Establish Public-Private Partnership ● Maintain adequate network coverage within the city to avoid gap between dense and rural areas ● Support open-data ● Regulate data privacy Tourism companies ● Digitalize their core business activities ● Give access to information in real-time and in a readable format for users ● Engage with local communities, tourists and government in co-creating the experience or developing crowd-sourced applications Local communities ● Actively involved in developing cultural heritage Tourists ● Connected, active, committed ● Co-create the experience ● Contribute to the content ● Use end-user devices at multiple touch points ● involved in social media Destination ● Innovative ecosystem ● Capture information from users and their activities ● Interconnected through IoT ● Interoperable services ● Eco-friendly environment ● Educate their citizens and visitors on how to best use the technology Source : Adapted from Buhalis (2013) Smart Tourism Experiences take advantage of technologically embedded infrastructures, end-user devices in various touch-points and engaged stakeholders. The final goal is to use the system to upgrade tourism experience, to maximize both destination attractiveness and consumer satisfaction and to demonstrate long term sustainability commitment. V. Conclusions and implications Present cities are expected to become megalopolis with millions of inhabitants. To manage the inevitable change of these new large urban systems, it will be necessary to implement coordination among decision-makers, local authorities and the society. A first attempt to define the pre-conditions for the development of smart city is to
  12. 12. divide the city into three sub-systems: the innovative city, the sustainable city and the social city. Smart dimension necessarily involves a review of the processes for the governance of the urban system. Technology should be integrated into the urban system and not to be considered as additional equipment. By the use of ICTs, locals, tourists and city users can act as a dynamic role in improving their quality of life and creating new experiences. The notion of creating experiences has become essential for a successful promotion of the destination. The need for adapting urban services supply, to answer the increasingly expert and qualified tourist demand will require to reconsider the relation between and physical and virtual elements. For instance, ferry terminals, low cost airports and buses represent new gates to enter the city meant to receive the tourist flow and need to be upgraded in their hosting services. The same will have to be developed with the tourist office, which will inevitably need to modify its role and function to become new modern poles of tourist reception. In reviewing the theoretical background of the smart city and the tourist experience, the paper has recognized two major changes in the nature of tourist experience: a) four forms of technology can be used to create enhanced touristic experiences, b) empowered experiences incorporate immersive technological solutions to allow the tourist “to become highly involved, actively participate and co-create with multiple stakeholders throughout all stages of travel”. A gap between the theoretical approach and the cases under analysis was spotted. The theoretical approach indicated that successful destination of the future will be the one that integrate ICTs in their structures to dynamically co-create smart experiences with tourists in all travel stages. At the same times findings have highlighted how low the level of tourist’s engagement can be in the co-creation process and how hard it is to maintain a high level of commitment over time. This suggests that the success of smart touristic projects cannot be disconnected from a larger smart city policy able to penetrate in depth local residents and civil society. It follows that smart touristic initiatives can empower citizens and tourists to actively participate in bottom-up decision-making processes. Otherwise, it is likely to remain a simple use of new technologies under the logic of brilliant engineer’s logic losing track of the human part.

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