“Workation” is a travel choice which includes vacation while working remotely at destinations and resorts. Even the word workation blurs the boundaries between travel and daily life. Tsurumoto pointed out that one recent phenomenon in the tourism industry has been a shift in the dividing line between our personal life (including work styles) and travel: where you work becomes meaningless the more remote work is normalized.
Remote work was common in the United States and Europe even before the COVID-19 pandemic, while allowed by only a minority of companies in Japan. However, the pandemic has had a drastic impact on work styles. If remote work becomes part of our daily routine, we will see changes to our traditional travel pattern of working in a central location on weekdays and visiting destinations and resorts for vacation.
“Until 2019, it made sense to take paid leave for personal travel. However, as a result of the increase in remote work and the diminishing importance of our work location, we are now in an era which allows us to travel without taking paid leave. Taken to the extreme, we might begin the week in a new location, work there during the day, enjoy the nightlife after work, and add some additional local travel on the weekend. If so, our definition of travel and tourism will also change.” Phocuswright, a leading authority in travel, tourism and hospitality market research from the USA, forecasts that Japan’s travel market will not recover to pre-COVID-19 levels until 2024, nor will the nature of the market return in its previous form.
(Source: "Two key developments in Japan's travel market", Phocuswright, June 2021,https://www.phocuswright.com/Travel-Research/Research-Updates/2021/two-key-developments-in-Japans-travel-market(Access date : 8 February 2021)
In addition, the spread of COVID-19 has changed the range of products available and how we spend time at a destination. For example, restaurant menus and visitor information signs ask visitors to scan QR codes on smart phones. This reduces “contact” (i.e., human interaction), which previously would have been a highlight of travel, while contact-free interaction for products and services has become an added-valued service. Tsurumoto indicated that these trends and the evolution of digital technology will continue and increase the momentum of tourism DX.
Tourism DX covers a wide range of fields. Tsurumoto listed five categories which have seen significant growth in recent years: 1) Tabinaka (support while travelling), which includes travel devices and electronic payments; 2) Ground transport, including ride-hailing services and car sharing; 3) Hospitality, including vacation rentals and IT-enabled hotels; 4) Aviation, using airport technology, 5) Smart tourism, with online travel and content for visitors , and online reservations and e-marketplaces. In particular, we are seeing the rise of new services from start-ups both in Hospitality where digitalization was slow previously, and in the Smart category (simplified services by digitalization).
In his keynote, Tsurumoto introduced Refundit from Israel and Youtip from the United States as case studies for innovation in tourism DX.
Refundit is a service that makes it easier for international travellers to claim a refund of sales taxes such as VAT, GST, etc. Travellers use the app to upload a photo of their receipts and apply for the exemption, receiving a refund to their credit card 15 minutes later. Traditional tax exemption procedures are complicated and require tourists to spend a significant amount of time on them while travelling. Refundit claims to simplify these procedures. This is also beneficial for the relevant tax authorities: the app enables a shift from paperwork to digital data exchange, which can dramatically shorten processing times.
Youtip offers a different example: it is a digital solution for tipping. Venues collecting tips, such as restaurants and hotels, need only create a Youtip account to receive payment (a tip) by QR code from customers.
Youtip has become popular because, while the spread of cashless payment has encouraged tourists to carry little-to-no cash, employees in the service industry have traditionally been paid in cash. Tourists can now easily leave a tip via Youtip without the need for cash.
Tsurumoto considers:
“Youtip not only simplifies tipping but also helps to maintain employee motivation (from earning tips) and to streamlining payment of tips (payment management). It’s an innovative service for everyone.”
Tsurumoto concluded with the following remark:
“Tourism DX is still at an early stage but the evolution of fintech services like Refundit and Youtip will play a role in accelerating tourism DX. We expect these services to proliferate in the decade leading to 2031.”