The Future of Tourism in 2025: How Digital Technology Is Transforming the Industry

1. How Generative AI Is Changing Travelers and Tourism Businesses

The evolution of generative AI has been remarkable and will bring about significant changes for travelers in many ways.

Traditional AI provided standardized plans based on historical data (known as “classification models”). However, the advent of generative AI (known as “generative models”), which is based on large-scale language processing, has led to a dramatic evolution.Incidentally, the history of commercial generative AI is very short; it began in February 2023, less than two years ago, when ChatGPT was launched as a paid service. Nevertheless, we are witnessing in real time the prelude to earth-shattering transformations that are yet to come.

Generative AI, epitomized by ChatGPT, will be able to deeply understand travelers’ preferences and interests and, just like a human, propose unique plans perfectly tailored to each individual.

For example, even in response to vague requests such as, “I like history and want to eat good food, but I’d prefer a place that isn’t too crowded,” the AI will comprehensively analyze past travel data, reviews, and even real-time trend information to provide an experience that only that person can have.

This goes beyond simply suggesting tourist destinations; by deeply understanding the history, culture, and even the daily lives of the people living there, and conveying this to travelers, it leads to a richer travel experience.

Furthermore, AI can analyze travelers’ behavior patterns to predict the kind of experiences they are seeking. For example, if data shows that many people spend a long time at a specific spot within a tourist destination, the AI can provide information that delves deeper into the appeal of that spot or recommend nearby restaurants and accommodations.

The potential applications of generative AI in the tourism sector are limitless, depending on the ideas applied. One unconventional application is in handling emotional complaints from customers, which has become a social issue. Generative AI can consistently respond with sincerity and composure even to the emotional and irrational complaints associated with so-called “customer harassment” (kasuhara). While such situations could potentially lead to mental health issues for human employees, generative AI does not suffer from mental health disorders.

2. Traveler Transportation and the Mobility Revolution (Self-Driving Cars)

The evolution of transportation, driven by the practical implementation of autonomous driving, will have a major impact on tourism.

In the United States, Waymo has already launched the world’s first taxi-style service using driverless autonomous vehicles. These vehicles are operating on public roads as a matter of course in cities such as San Francisco, Los Angeles, and Phoenix, Arizona. In fact, when I attended an international conference in Phoenix in November 2024, I used Waymo’s driverless autonomous vehicles for all my transportation—from the airport to the hotel and back to the venue.

Using the service is extremely simple: just open the smartphone app, enter your current location and destination (your current location is automatically filled in via the app’s GPS, so you just need to confirm it), and tap the request button. Once you’re in the vehicle, it departs for the destination you entered, and upon arrival, you simply get out and close the door. Payment is also handled via your smartphone, so no additional procedures are required. Since tipping—a common practice in the U.S.—is unnecessary (there’s no one to tip because the vehicle is driverless), you don’t have to worry about calculating a tip either.

Travelers can enjoy an even more comfortable ride to their destination in a fully autonomous, driverless vehicle.

In Japan, public transportation is often lacking in rural tourist destinations, so autonomous vehicles have the potential to significantly improve access to these areas.

While safety is always a topic of debate when it comes to driverless autonomous vehicles, data from research firms shows that the probability of a collision involving an autonomous vehicle is 85% lower than that of a human-driven vehicle (Swiss Re).

Incidentally, Waymo announced in December 2024 that it has partnered with Nippon Kotsu to conduct autonomous driving technology tests in Japan starting in 2025.

3. Improving Transparency and Trust in Travel Through Blockchain

The application of blockchain technology in the tourism industry is also worth noting. For example, utilizing blockchain for airline tickets and hotel reservations can increase transaction transparency and reduce the risk of fraud and double bookings. Blockchain is a technology that records and manages data by linking it like a chain on a decentralized network.

Additionally, efforts are underway to prevent resale and counterfeiting by converting tickets and coupons used by travelers on-site into NFTs (short for non-fungible tokens, a technology that assigns a unique proof of ownership to digital data).

Incidentally, in Japan, NFTs are often perceived as a unique, specialized technology used for one-of-a-kind travel souvenirs, but they are simply one of many technologies built on the blockchain infrastructure and are not a specialized technology in and of themselves.

Building a highly reliable review system is another area where blockchain is expected to play a significant role. Currently, many review sites face issues with fake reviews and biased ratings, but using blockchain makes it possible to guarantee the credibility of reviewers and provide more accurate information.

Furthermore, by utilizing automated contract programs known as “smart contracts,” it becomes possible to automate reservations and payment processing. A potential use case involves travelers setting their travel conditions in advance (with the contract terms written as code in the program), and once those conditions are met, the reservation is automatically made. In this way, it is expected to significantly contribute to efficiency for both travelers and tourism businesses.

4. Robots Playing an Active Role in Supporting Tourists

Robots are already in practical use across various fields, and their role in the tourism industry is set to expand. For example, robots are already being used to support human workers in tasks such as hotel front desk operations, tourist information services, and even luggage handling.

Furthermore, robots equipped with emotion recognition capabilities will be able to read travelers’ emotions from their facial expressions and voices and respond accordingly. For example, they can guide tired-looking travelers to places where they can relax or suggest fun activities to travelers who seem down.

5. Technology for Achieving Sustainable Tourism

In recent years, there has been a growing demand for sustainable tourism. Technology can also contribute to addressing this challenge. By analyzing tourist behavior patterns and predicting crowd levels, we can reduce the environmental impact caused by overtourism.

Furthermore, various initiatives utilizing digital technology—such as the use of renewable energy and the promotion of local products—will lead to the realization of sustainable tourism. For example, we could use smart city technology to optimize energy consumption at tourist destinations or provide apps that encourage eco-friendly behavior among tourists.

Summary

In this article, we have examined the impact of five digital technologies on the tourism industry. These technologies will not develop in isolation but will interact with one another to create more advanced services.

For instance, it may become possible to create seamless tourism experiences, such as booking a travel itinerary generated by AI on a blockchain and having an unmanned robot guide visitors around a tourist destination.

However, the evolution of digital technology also presents challenges, such as privacy concerns and the displacement of existing human jobs. Put another way, this also represents an opportunity for humans. In other words, allowing digital technology to replace existing jobs where possible, while humans create new jobs that differ from the existing ones, can serve as an opportunity to bring the tourism industry into a new dimension.