The Implementation of Augmented Reality (AR) and Virtual Reality (VR) Technologies in Business Model Innovation of Tourism Industry

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School of Business | Bachelor's thesis
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Date

2023

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Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

56+4

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Abstract

Objectives The main objectives of this study were to examine the existing use of immersive technologies in business in general and how AR and VR applications could be integrated into the business model, thus understanding the pros and cons of using AR and VR in a tourism context. Furthermore, it will explore the use of AR and VR in projecting consumer behavior in AR and VR tourism, which helps to unravel the possibilities of implementing these technologies in the business model innovation process in tourism. Summary This thesis investigates the potential of AR and VR technology implementation in Business Model Innovation in tourism. Specifically, it will explore the pros and cons of using AR and VR technologies, how they affect users’ experience and responses to business’s products and services, and how these findings could be used in innovating Business Models of tourism. This study assesses the AR and VR technology and their possible implementation in the business model of a company in the tourism industry. Conclusions The use of VR and AR technology in tourism has various advantages, including the capacity to model business ideas, provide education and training to human resources, and sell products or services in an engaging manner. The biggest downside of employing immersive technology in tourism, on the other hand, is the several problems it presents during the adoption process, such as financial capabilities, quality assurance, technical awareness, and usability. Virtual and augmented reality technologies can provide a variety of services to enhance visitors' travel experiences, while also has the potential to transform how tourism companies create and deliver value to their customers.

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Thesis advisor

Pynnönen, Mikko

Keywords

virtual reality, augmented reality, tourism, business model innovation, immersive technology, user acceptance, metaverse

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