Baltic Journal of Economic Studies 295 Vol. 10 No. 3, 2024 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 State Scientific Institution "Institute of Education Content Modernization", Ukraine (corresponding author) E-mail: sum1971@ukr.net ORCID: https://orcid.org/0000-0001-5623-1965 2 The National University of Water and Environmental Engineering, Ukraine E-mail: okorotun79@gmail.com ORCID: https://orcid.org/0000-0002-5628-8301 3 The National University of Water and Environmental Engineering, Ukraine E-mail: konarivska@gmail.com ORCID: https://orcid.org/0000-0002-1760-9264 DOI: https://doi.org/10.30525/2256-0742/2024-10-3-295-303 DIGITALISATION AS A MARKETING MANAGEMENT TOOL IN THE TOURISM INDUSTRY Yuriy Safonov1, Olha Korotun2, Oksana Konarivska3 Abstract. This article explores the concept of digitalisation and its impact on marketing management in the tourism industry. The study examines the evolution of digitalisation from its origins in the 1960s and 1970s to its current role in the economy, with a particular focus on the tourism sector. Objective of the research. The aim is to explain the multifaceted nature of digitalisation and highlight its importance as a transformative force in the tourism industry. The study aims to demonstrate how digitalisation fosters innovation, increases operational efficiency and creates personalised and interactive experiences for consumers. It seeks to provide a clear understanding of how digital tools and technologies can be strategically integrated into marketing practices to improve business results and customer satisfaction. Research methodology. The study employs a comprehensive literature review, in which the various definitions and interpretations of digitalisation proposed by renowned scholars are subjected to analysis. Furthermore, case studies and practical applications of digital technologies, including Big Data, blockchain, artificial intelligence, mobile applications, virtualisation technologies, and the Internet of Things (IoT) in the tourism industry, are also considered. A comparative analysis is applied to identify the most informative and widely recognised definitions of digitalisation, with particular emphasis on the definition proposed by Laudon and Laudon (2019) due to its clarity and comprehensiveness. Research results. The findings indicate that digitalisation is a critical catalyst for rewriting the travel narrative for consumers, transforming destinations into dynamic, interactive, and responsive ecosystems. The incorporation of digital technologies within the tourism sector not only optimises operational efficiency but also markedly enhances the customer experience. The implementation of personalised marketing, the utilisation of AI-based customer service tools and the application of predictive analytics have been identified as key benefits. However, the study also identifies challenges associated with data privacy, integration with existing systems, and the necessity for continuous adaptation and improvement of CRM strategies to align with evolving customer expectations. Practical implications. Digitalisation opens up significant opportunities for the tourism industry to innovate and maintain competitive advantage in a rapidly changing market environment. Keywords: digitalisation, digital technologies, marketing, management, tourism, tourism industry. JEL Classification: O31, O32 1. Introduction Digitalisation is one of the key trends of modern development, with a significant impact on various sectors of the economy, including the tourism industry. With the advancement of Information and Communication Technologies (ICT) and their integration into business processes, tourism companies gain new opportunities to improve efficiency, enhance service quality and ensure innovative development. The study of digitalisation as a marketing management tool in the tourism industry is highly relevant, as it opens up new horizons for businesses, allowing them to use modern technologies to meet the needs of today's consumers. The novelty of the topic lies in a comprehensive approach to the study of digitalisation as a key factor in the transformation of marketing strategies in the tourism industry. The work examines modern digital Baltic Journal of Economic Studies 296 Vol. 10 No. 3, 2024 tools and technologies, such as big data, blockchain, artificial intelligence, mobile applications, virtualisation technologies and the Internet of Things (IoT), and their impact on improving the efficiency of marketing management in tourism. The relevance of scientific developments is due to the need to adapt tourism enterprises to rapidly changing market conditions, increase competitiveness and meet growing consumer expectations. The aim of this study is to analyse the impact of digitalisation on marketing management in the tourism business and identify the main directions of implementation of modern digital technologies to improve the efficiency of marketing strategies. In order to achieve this goal, the following tasks were identified: – Тo analyse theoretical approaches to the definition of "digitalisation" and its components; – to identify the main digital tools and technologies used in the tourism business; – to assess the impact of digitalisation on the effectiveness of marketing management in the tourism industry; – to develop recommendations for the introduction of digital technologies in the marketing strategies of tourism enterprises. For achieving the goal and fulfilling the objectives of the study, a comprehensive methodological approach was used, which includes the following: – Literature analysis (study of scientific papers, articles and monographs on digitalisation and its impact on the tourism industry); – comparative analysis (analysis of different definitions of digitalisation and their comparison to determine the most informative approach); – case studies (studying practical examples of digitalisation in tourism enterprises); – analytical methods (use of statistical data and analytical tools to assess the effectiveness of digital tools in marketing strategies). The article provides a theoretical overview of digitalisation and its components. The modern digital tools and technologies used in the tourism business are analysed, the impact of digitalisation on marketing management in the tourism industry is studied, and practical cases are presented. Recommendations for the introduction of digital technologies in the marketing strategies of tourism enterprises are proposed. The conclusions summarise the main results of the study and outline prospects for further developments in this area. Thus, the materials of the article contribute to a deeper understanding of the role of digitalisation in the modern tourism business and provide practical recommendations for improving the efficiency of marketing management in the tourism sector. 2. The Main Research Material The process of recognising the nature and characteristics of the main components of the concept of "digitalisation" has been going on for quite some time. This is due to the fact that digitalisation as a social phenomenon began to spread as early as the 1960s and 1970s. With the development of economic relations based on the use of digital information and communication technologies, the term "digital economy" was established in the academic sphere in 1995. Today, there is not yet an adequate legal framework for digitalisation. However, scientists and practitioners clearly understand that the economic growth of a country is impossible without the application of digitalisation, as it encompasses all sectors of the national economy, including tourism, and creates new opportunities for business and socio-economic development. Consider the main approaches of scholars to the interpretation of the concept of "digitalisation" (Table 1). Thus, scholars have different views on the concept of "digitalisation". In particular, it is defined in different ways: transformation, integration, combination, adoption, systemic (strategic) use, process, etc. The common element in these concepts is digital technologies that are designed to improve business efficiency. Comparing the definitions in Table 1, it was concluded that the most informative is the definition of K. S. Laudon and D. P. Laudon (2019), as it clearly explains that digitalisation involves the conversion of information from any other format to digital, and the ultimate goal of this process is to improve a particular activity. Other definitions limit the role of digitalisation to a business tool, but the definition by Loudon and Loudon (2019) shows that digitalisation is a very broad concept. In other words, the digitalisation of tourism activities means a comprehensive transformation of the tourism ecosystem, adapting innovation, sustainability and operational activities, opening up to consumers different destinations that become dynamic, interactive and responsive entities. The central element of this transformation is the departure from traditional forms of tourism, as destinations cease to be passive places that simply invite visitors, and instead become living, breathing ecosystems that dynamically respond to the ever-changing expectations of the modern tourist (Geldner, Ritchie, 2009; Leiper, 1979). Digitalisation is serving as a catalyst for rewriting the travel narrative for consumers of travel services, turning every interaction into an immersive, personalised story where the destination becomes not just a point on the map, but a real experience. This is why the current transformation of tourism is based on a profound shift towards interactivity and Baltic Journal of Economic Studies 297 Vol. 10 No. 3, 2024 personalisation. Thanks to advanced data analytics and artificial intelligence, destinations are moving beyond universal approaches and creating in dividualised experiences. This process of adapting the tourism product to a specific audience, united by digital features, not only increases customer satisfaction, but also turns every trip into a unique adventure. Furthermore, digitalisation creates a huge number of meaningful connections that support reputation and allow to build a database of loyal customers. Thus, reputation is a key advantage of digitalisation for businesses in the tourism industry. Reputation is a collective opinion about a certain entity, which can be a brand, an organisation or even a person. This opinion is based on past activities and is constantly changing depending on current actions. Therefore, maintaining a positive reputation is an extremely important aspect for tourism businesses, including through consumer feedback in the digital space. Results and discussion. The most common digital technologies in the tourism industry include big data, blockchain, AI, mobile applications, virtualisation technologies, intelligent robots and the Internet of Things (IoT) (Krasnomovets, Trachuk, 2022; Kachak, 2021). Examples of the application of elements of artificial intelligence (AI) in the domestic tourism industry are presented in tabular form (Table 2). Thus, it can be argued that the tourism industry is a leader in the use of artificial intelligence in its activities. Travel market participants receive significant economic benefits from the use of artificial intelligence, in particular in business processes and relevant tasks of tourism activities: interaction with consumers of travel services, feedback, marketing, and content creation. Digitalisation is easily integrated with tourism marketing, going beyond traditional methods and tools. Tourism marketing management is a process that involves the planning, research, implementation, control and evaluation of programmes aimed at satisfying the needs and desires of tourists and achieving the goals and objectives of tourism enterprises. This process is continuous and systematic, ensuring a methodical approach to the management of tourism marketing activities. The primary objective of these activities is to increase tourist flows to destinations for the benefit of all stakeholders: the tourism industry, local communities and tourists themselves (Sotiriadis, 2021; Morrison, 2022; Paynter, 1993). Modern people are surrounded by a variety of gadgets, which makes the task of identifying them not as easy as it used to be. Many users start their online activities on one device and finish them on another. The term "unique user" in website traffic statistics refers more accurately to the number of unique devices used to access a resource, rather than to individuals. In the digital era, consumer behaviour is changing rapidly and their expectations are constantly rising. Table 1 Definition of the concept of "digitalisation" No. Definition Source 1. Transformation of analogue information into digital formats and the use of digital technologies to increase efficiency and innovation. Laudon K. S., Laudon D. P. (2019) 2. Use of digital technologies to optimise and automate processes, improve decision-making and increase overall business productivity. Chen M., Mao S., Liu Y. (2014) 3. Integration of digital tools, platforms and technologies into various sectors of the economy to drive innovation and improve operational efficiency. Choudary S. P. (2018) 4. Strategic use of information and communication technologies to transform business models and create new growth opportunities. Bugin J., Catlin T., Girt, M. (2018) 5. Implementation and integration of digital technologies, data analytics and artificial intelligence to achieve organisational transformation. Brynjolfsson E., McCaffrey E. (2014) 6. Adoption and integration of digital technologies to create innovative products, services and business models. Ross J. W., Beath K., Mocker M. (2018) 7. The process of using digital tools to transform traditional business models and provide customers with improved products/services. Ross J. W., Beath K., Mocker M. (2018) 8. Systematic use of digital technologies to drive innovation, improve user experience and create competitive advantage. McQuivey J. (2013) 9. The process of integrating digital technologies into various aspects of business operations and processes. Westerman G., Tannu M., Bonnet D. (2019) 10. Combining digital technologies, data analytics and artificial intelligence to transform organisations. Westerman G., Tannu M., Bonnet D. (2019) Note: on the basis of (Laudon, K. S., & Laudon, D. P. 2019; Chen, M., Mao, S., & Liu, Y. 2014; Choudary, S. P. 2018; Bugin, J., Catlin, T., & Girt, M. 2018; Brynjolfsson, E., & McCaffrey, E. 2014; Ross, J. W., Beath, K., & Mocker, M. 2018; Ross, J. W., Beath, K., & Mocker, M. 2018; McQuivey, J. 2013; Westerman, G., Tannu, M., & Bonnet, D. 2019; Westerman, G., Tannu, M., & Bonnet, D. 2019) Baltic Journal of Economic Studies 298 Vol. 10 No. 3, 2024 Most consumer trends in recent years are based on information technology, which has not only provided new ways of obtaining information about goods and services, but has also significantly modernised consumer behaviour patterns, forms of interaction between buyers and sellers, and, of course, methods of promoting goods or services. The modern customers have become more sophisticated, and interacting with them requires serious effort. Their choices are no longer spontaneous and impulsive. The purchase decision is now formed over a long period of time. The following patterns can be identified in consumer behaviour: – Practicality – careful accounting of one's expenses and setting priorities. It is no longer easy to attract consumers with a bright picture; they are ready to study the properties of the proposed product and compare it with other market options. – Individuality is not so much a desire to stand out as it is a feeling of being a person with unique preferences, and, accordingly, a desire to receive a personalised approach from travel companies. – Mobility – the boundaries between leisure and work are disappearing, the office is wherever there is access to the Internet. The perception of the availability of certain goods and services has changed – everything is just a click away. – Demanding is the other side of mobility. Social media has made it easier for consumers to openly express their dissatisfaction and demand a certain level of quality from tourism businesses. – Activity is another aspect of mobility. If a person is constantly connected, there is no need to stay in one place, so the focus shifts to tourism offers that support or encourage an active lifestyle. – Emotionality is the need to get positive feelings from everything that happens and is used by a person. – Health is a careful attitude to one's body. Consumption is perceived through the prism of whether it will be beneficial for a person and their health. – Responsibility – in the consumption of goods and services, the modern consumer is looking for responsible behaviour from tourism companies in relation to nature, the environment, people in need and is ready to support only those who share their values. Research in the field of tourism points to several key trends in the behaviour of consumers of tourism services. The authors have selected those that relate to the specifics of tourism product and destination promotion: – Сonstant use of mobile phones and digital assistants; – high requirements for information availability; – the need to share experiences. All of this is compounded by the fact that tourism businesses are trying to use as many available channels as possible to promote their market offerings. A website alone is no longer enough to get the word out, and marketers are setting up accounts on social media and content aggregators in droves. The internet and mobile phones or similar digital devices such as tablet computers are now part of everyday life and a natural companion when travelling. According to a study by one of the largest tourism websites, TripAdvisor, 45% of users use their smartphones to search for information about their holiday, to use it during their trip and to write reviews and share photo and video content afterwards (TripAdvisor Study, 2024). Another study shows that more than one in three travellers in various countries are interested in using digital assistants to search for or book trips and find information directly at the destination (TripAdvisor Study, 2024). This is undoubtedly the most important trend in digital tourism marketing. The mobile phone has become a guide, a travel agency, the best restaurant navigator, a map and much more. According to a report by "Google", 48% of smartphone users in the US feel comfortable searching, booking and planning an entire trip on a mobile device, and this figure is steadily Table 2 Application of AI in the tourism industry AI component Description Application in tourism activities AI bots AI-powered chatbots are programmed to interact with users, answer queries, and provide assistance in real time. Travel and hospitality businesses use chatbots to process customer queries, make reservations, and provide support. Personalised recommendations AI algorithms analyse user preferences and behaviour to recommend personalised destinations, activities and accommodation. Online travel platforms use AI to offer personalised itineraries and accommodation options. Predictive analytics AI analyses historical data, market trends and customer behaviour patterns to predict future travel demand and optimise pricing and inventory management. Airlines and hotels use analytics to forecast demand, adjust prices, and manage availability in the labour market. Virtual assistants AI-powered virtual assistants provide personalised travel assistance, including route planning, booking management and real-time updates. Travel businesses are using virtual assistants to improve customer service and provide a personalised travel experience. Note: compiled by the authors based on data from (Artificial intelligence: threats or opportunities for tourism? Tour operator Join UP!) Baltic Journal of Economic Studies 299 Vol. 10 No. 3, 2024 rising to 67% of consumers in Brazil and 87% of consumers in India (Think with Google. Marketing Resources: Smartphones Influence, 2024). Mobile searches on Google.com in the travel category alone have increased by more than 50%. This data shows that, year on year, people are increasingly using their mobile phones to plan their travel (Think with Google. Marketing Resources. Consumer Behavior, 2024). The widespread use of mobile phones opens up enormous opportunities for marketers to promote tourism products. Digital assistants encompass multiple channels of two-way communication with potential and current consumers: destination websites, search queries, apps, social networks, blogs and more. This removes barriers related to location, time of day, gender, age, schedule and financial status of the user. People are increasingly turning to their smartphones to get instant answers to travel questions, find route ideas, compare prices and book accommodation or tickets. This new mobile information-seeking behaviour is what Google calls "micro-moments" (Think with Google. Marketing Resources: Consumer Behavior, 2024). However, along with the enormous opportunities of using mobile devices come certain challenges. There is a need to adapt websites and all tourism information for use on mobile devices. The next step was to develop smartphone applications that offer not just a website with a mobile-friendly viewing area, but much more features, including offline functions, push notifications, and much more. The ubiquitous use of mobile phones, including when travelling, has led to the development of beacon technology. A beacon emits a signal, the smartphone with a pre-installed app picks it up, determines its distance from the beacon and performs a programmed action, such as displaying a notification. Beacons can communicate with phones within a radius of up to 50 metres. For example, a person walking past a museum can receive a notification on their mobile device about the nearby world-class museum. If the traveller decides to enter the museum, the beacon system can enhance their visit by sharing relevant information about the exhibition they are visiting. In addition to the notification function, beacon technology can be used to recognise repeat visitors, count visitors, notify about promotions and discounts, collect data on movement and frequency of visits, and can be used for contextual advertising and contactless registration. For a tourist destination, beacon technology can be used to create interactive museum or city tours (an alternative to QR codes), ensuring precise positioning and turning the whole city into a museum. In Brisbane, for example, beacons have been installed throughout the city to provide travellers with important tourist information (Think with Google. Marketing Resources: Smartphones Influence, 2024). When customers are inside, beacons can improve the quality of guest service by providing virtual maps, relevant tips and facts in multiple languages. In Memphis, the Elvis Presley estate at Graceland used beacon technology to offer visitors a tour on iPads that included exclusive videos, audio recordings, photos and interactive activities (Beacon Model – Brisbane Diabetes, 2018). The development of this technology is facilitated by the increasing use of Bluetooth technologies through smartwatches, wristbands and wireless headsets. The pace of modern life, technological advances and the expansion of internet coverage are leading to growing user demands for information accessibility. Consumers expect more information in less time, requiring more engaging content to capture their attention. As a result, information needs to be easily accessible on whatever platform is convenient for the user, be it a website, an app, a social network or any other communication channel. According to Booking.com statistics, 80% of customers prefer to search for the necessary information on their own (Accenture, 2024). The modern digital marketing ecosystem continues to expand, providing visitors with the information and inspiration they need through a myriad of platforms and channels. For the promotion of tourism products, this trend requires the dissemination of information about destinations across multiple platforms, as it becomes increasingly difficult to pinpoint where the target audience spends their time. As potential users of destinations' services may belong to different customer groups, it is important not only to be present on different platforms, but also to ensure cross-platform interaction. Potential visitors usually rely on several sources of information when planning and making purchases. In marketing, there is a term called omnichannel, which refers to the mutual integration of disparate communication channels into a single system to ensure seamless and continuous communication with the customer. Chatbots and the AI that powers them are one of the technologies aimed at increasing the availability of information. Chatbots are programs that can accurately and continuously sort data and respond quickly to user problems and requests. This technology makes it possible to continuously respond to numerous customer requests without the need for constant human intervention. Most often, chatbots are hosted on official websites. A travel bot can help users save time, organise their trip, or recommend places to visit – all available in messaging apps. The bot can be available 24/7, support different languages, and respond instantly to travellers' Baltic Journal of Economic Studies 300 Vol. 10 No. 3, 2024 queries. However, perhaps the most important feature of artificial intelligence is machine learning. A chatbot can draw conclusions based on customer feedback and behaviour, becoming smarter, more useful, and ultimately more powerful. The desire to share experiences and everyday things with family and friends, despite the limited physical time spent together, is leading to an unprecedented increase in the amount of information that users share online. Initially, information was shared via email, but the number of communication channels is growing and the content that can be shared is evolving. This trend is a huge advantage for marketers and tourist information centres, as tourists themselves can spread the word about tourist destinations. The advantage is not only that it is relatively free, but also that this source of information is much more trusted than any other advertising information. Studies have shown that personal influence and word of mouth, digitally referred to as electronic word of mouth, are considered the most important sources of information when consumers make a purchase decision, especially in tourism, whose intangible products are difficult to value prior to consumption (TechRadar, 2024). To take advantage of this trend, it is important to publish and use shareable content first and foremost. To build relationships and gain the loyalty of potential customers, it's not enough to just publish information; the content must be engaging and useful. In addition, since social media uses certain algorithms to display posts to make them visible to more users, posts must be engaging, i.e., collect "likes" and comments. However, the desire to share information through digital communication channels means that destinations are vulnerable to negative reviews from tourists. Users now have access to a huge amount of information. In addition, managing authorities and marketing departments cannot control all communications about their services – many consumers can easily write reviews about their trip or describe their impressions of a place. According to Accenture's research, word of mouth is the most used (86%) and influential (60%) source of information. The second most influential are websites with expert reviews and comparative reviews of goods and services (Accenture, 2024). Since people are more likely to leave negative reviews than positive ones, it is important to encourage users to share their experiences on social media, thus increasing the number of people who spread the word about one's services to their friends and followers. The travel industry, which includes travel agencies, hotels, airlines, and tour operators, is highly dependent on customer satisfaction and loyalty. A CRM (Customer Relationship Management) system is a specially designed software that automates all processes and operations between company employees and customers. Problems in business operations that prompt the transition to a CRM system: – Time-consuming data transfer; – frequent errors when entering data; – time spent on processing information about counterparties; – managing a large number of accounts, which leads to numerous logins and passwords; – access to information for all employees of the company; – limited analytics for all orders; – expenses that are not tied to revenue and other problems. CRM systems provide a structured approach to customer relationship management, enabling businesses to effectively understand and respond to customer needs. By integrating various customer data from different touchpoints, CRM systems help to create a single customer profile, which is essential for personalised marketing and service delivery. Key functions of CRM systems in tourism: – Customer data management. CRM systems collect and store huge amounts of data about customer preferences, booking history, reviews and interactions across various channels. This comprehensive database allows travel companies to track and analyse customer behaviour and preferences, which helps them to conduct targeted marketing campaigns and create personalised offers. – Personalised marketing and communication. Detailed customer data allows travel companies to tailor their marketing efforts to individual preferences. CRM systems allow to create personalised marketing messages, special offers and loyalty programmes that resonate with customers and encourage repeat purchases. This targeted approach not only improves customer satisfaction, but also increases profits by maximising the effectiveness of marketing efforts. – Customer segmentation. CRM systems allow for effective customer segmentation based on various criteria, such as demographics, travel preferences, booking patterns and customer value. Customer segmentation helps travel companies develop specific strategies for different customer groups, ensuring that the right message reaches the right audience at the right time. – Improving customer service. CRM systems help travel companies deliver high-quality customer service by offering a 360-degree view of the customer. This comprehensive view includes previous interactions, preferences and concerns, allowing customer service Baltic Journal of Economic Studies 301 Vol. 10 No. 3, 2024 representatives to provide informed and effective assistance. Quickly resolving customer queries and issues significantly improves the customer experience and increases loyalty. – Process automation and efficiency. Automating routine tasks such as email marketing, booking confirmations, follow-up communications and feedback collection through CRM systems leads to increased operational efficiency. Automation not only saves time and reduces errors, but also ensures that customers receive timely and consistent communications, improving the overall customer experience. – Analytics and reporting. CRM systems offer powerful analytics and reporting tools that help travel companies measure the effectiveness of their marketing campaigns, customer satisfaction and overall business performance. This information is crucial for making informed strategic decisions and continuously improving business operations to meet customer expectations and market demands. While the benefits of CRM systems in the travel industry are significant, there are challenges that companies must address to maximise their effectiveness: With an increasing reliance on customer data, ensuring its privacy and security is paramount. Travel companies must comply with data protection regulations such as the GDPR and implement robust security measures to protect customer information from breaches and misuse. Integrating CRM systems with the existing IT infrastructure can be complex and require significant investment. Ensuring seamless integration with booking systems, payment gateways and other operational applications is essential to provide a unified customer experience. The successful implementation of CRM systems depends on the willingness and ability of staff to use the system effectively. Comprehensive training programmes and user-friendly interfaces are crucial to facilitate adoption and maximise the benefits of CRM systems. The travel industry is dynamic and customer expectations are constantly changing. Businesses must regularly update and improve their CRM strategies to stay relevant and meet changing customer needs. Continuous feedback and adaptive systems are essential for long-term success. To keep pace with technological advancements and changing business requirements, travel companies must invest in the ongoing maintenance and modernisation of their CRM systems. This includes software updates, enhanced security measures and the integration of new features to improve functionality and user experience. By addressing these issues, travel companies can unlock the full potential of CRM systems to increase customer satisfaction, optimise operations, and drive business growth. Integration of CRM systems not only helps to manage customer relationships more effectively, but also provides valuable information for making informed strategic decisions and remaining competitive in the ever-evolving travel market. 3. Conclusions The research on digitalisation in marketing management in the tourism industry highlights several key conclusions. First, digitalization is acting as a transformative force, reshaping the tourism sector through the integration of advanced digital technologies such as big data, blockchain, artificial intelligence, mobile applications, virtualization technologies, and the Internet of Things (IoT). These technologies are improving operational efficiency, driving innovation and creating personalised, interactive experiences for consumers. The research findings indicate that successful implementation of digitalisation requires a strategic approach, including the systematic use of digital tools and technologies to optimise business processes, improve decision-making and increase overall productivity. By transforming traditional business models, digitalisation enables tourism companies to offer higher quality products and services, thereby increasing customer satisfaction and loyalty. It also highlights the importance of addressing privacy and security issues, integration with existing IT infrastructure, and the need to continuously adapt and improve Customer Relationship Management (CRM) strategies. Ensuring robust data protection measures and seamless integration with existing systems is critical to maximising the benefits of digitalisation. Future research and development should focus on exploring new and emerging digital technologies that can further revolutionise the tourism industry. Advanced analytical tools need to be developed to better understand customer preferences and behaviour, allowing for more precise targeting and personalisation of services. In addition, studying the impact of digitalisation on sustainable development and social aspects of tourism can provide valuable insights for creating more responsible and inclusive tourism practices. The prospects for further development in this area are promising. Continuous innovation and the implementation of advanced technologies will drive the evolution of the tourism industry, making it more sustainable, efficient and customer-centric. 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Available at: http://ir.tripadvisor.com/news-releases/news-release-details/ tripadvisor-study-reveals-42-travelers-worldwide-usesmartphones Baltic Journal of Economic Studies 303 Vol. 10 No. 3, 2024 Westerman, G., Tannu, M., & Bonnet, D. (2019). Designed for Digital: How to Architect Your Business for Sustained Success. Available at: https://books.google.com.ua/books?id=-2yuDwAAQBAJ&pg=PA21&hl=uk&s ource=gbs_toc_r&cad=1#v=onepage&q&f=false Received on: 20th of June, 2024 Accepted on: 27th of August, 2024 Published on: 20th of September, 2024