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Software Tool Article

Transforming the tourism experience: Virtual Reality for customer loyalty in the tourism industry

[version 1; peer review: 1 approved with reservations]
PUBLISHED 19 Apr 2024
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This article is included in the Advances in Metaverse, Gaming and Virtual Reality collection.

Abstract

Background

Today, the tourism sector in particular is becoming increasingly competitive, forcing companies to adopt innovative approaches to attract the attention of consumers. In this context, a virtual reality application is presented with the aim of strengthening brand loyalty through immersive experiences in tourism companies.

Methods

The development was divided into three phases: planning, implementation and operation, which emphasized close collaboration with stakeholders to adapt to changing requirements; implementation, which focused on a simple design with emphasis on creating a scalable and secure backend architecture; and finally, in the operation phase, two iterations were carried out. The first focused on creating an immersive virtual environment with intuitive interfaces and basic interactive elements. The second iteration enhanced these basic features and incorporated advanced features such as greater interactivity with virtual objects for a more realistic experience.

Results

A 66.36% increase in brand loyalty was achieved, demonstrating increased customer engagement and sustainable revenue generation. There was also a 65.48% increase in customer retention, indicating a continued willingness to purchase services from this brand. In addition, 78.15% of participants expressed a high level of satisfaction with the virtual reality experience.

Conclusions

This research contributes to the process of inclusive and sustainable industrialization by improving infrastructure and making industries more sustainable. This will be achieved by making more efficient use of resources and promoting the adoption of technologies.

Keywords

Virtual reality, brand loyalty, immersion, tourism, customers

Introduction

The adoption of emerging technologies in tourism not only places companies at the forefront of digital transformation, but also accelerates the move towards resilient and environmentally friendly infrastructure (Castilla et al., 2023). Virtual reality is emerging as a technology that offers the opportunity to transform the tourism industry's communication to meet the needs of tourists (Pestek & Sarvan, 2021). This technology not only enriches the traveller's experience, but also provides destinations and businesses with additional marketing tools, thus reshaping the consumer experience (Calisto & Sarkar, 2024).

The global business landscape reveals a widespread reluctance to adopt new technologies, largely due to the persistent fear of innovation caused by the economic inequality that still prevails in certain countries (Ore et al., 2021; Bernad, 2020). This situation poses significant challenges for firms in the Lima Sur region of Peru, which are struggling to differentiate themselves in a competitive environment characterized by low adoption of technological innovation. Peruvian manufacturing firms that integrate innovation and R&D activities show superior performance, highlighting the importance of innovation both in products, services and marketing to expand market share, and in processes and organization to improve productivity (Seclen-Luna et al., 2023).

However, despite the obvious need for innovation, the scientific community lacks robust and up-to-date evidence on the effective implementation of virtual reality technologies in advertising and brand loyalty, especially in the tourism sector (Zeng et al., 2023). The lack of comprehensive studies in this area leaves a critical knowledge gap, particularly in a sector that faces unique challenges related to atypical forms of employment, low wages, high turnover and other obstacles that could hinder the adoption of advanced technologies and the continuous improvement of service quality (Castillo-Reina & Cruz, 2021).

In addition, technical limitations, bandwidth constraints, and lack of accessories also affect the quality of the virtual reality experience, raising questions about the feasibility of its implementation in tourism. Additional concerns about whether virtual reality could replace the actual travel experience add a layer of complexity to this debate and raise questions about the potential negative impact on the tourism industry. The adoption of emerging technologies in tourism is at an early stage, largely due to the perception that these technologies, such as robotics, artificial intelligence and virtual reality, are costly and complicated to use. These challenges reflect an apparent innovation gap in tourism, where the full potential of emerging technologies has not yet been realized due to economic and practical constraints (Alonso, 2019; Moscoso & Torre, 2020; Gössling et al., 2021).

In this context, the need arises for companies in the tourism sector to actively seek to transform themselves through strategic planning and the adoption of emerging technologies. Therefore, the objective of this research is to propose Virtual Reality as an integral strategy for advertising and brand loyalty in tourism companies in the district of Lunahuaná, Cañete, Peru.

The incorporation of this technology not only promotes the local tourism industry, but also stimulates innovative processes and contributes to the development of more robust and sustainable infrastructures. This not only enhances the tourism experience, but also ensures that tourism activities are carried out with respect for natural and cultural resources, preserving them for future generations.

Methods

Research development used an agile approach to ensure collaboration, simplicity, and system flexibility (Suryantara & Andry, 2018). The development was divided into three phases: planning, implementation and operation, which emphasized close collaboration with stakeholders to adapt to changing requirements (Akhtar et al., 2022); implementation, which focused on a simple design with emphasis on creating a scalable and secure backend architecture (Fojtik, 2011); finally, in the operation phase, two iterations were carried out. The first focused on creating an immersive virtual environment with intuitive interfaces and basic interactive elements. The second iteration enhanced these basic features, incorporating advanced functions, such as greater interactivity with virtual objects for a more realistic experience (Shrivastava et al., 2021).

Implementation

Development Technologies: A selection of advanced technologies has been used, the server uses an open-source PHP 8.0 framework, known for its robustness (Tenzin, 2022). As for the user interface, it uses an open source ES6 JavaScript framework, ensuring a smooth and customizable user experience (Shukla, 2023).

Strategic integration of add-ons: To extend the capabilities of the application, key add-ons and libraries have been integrated, including:

  • - Framevr.io (virtual world)

  • - A-Frame (360 view of images and videos)

  • - Googlecharts (graphics)

These libraries allow users to immerse themselves in the web application without having to download any external software.

Adaptation for tourism agencies: the basic structure of the software was adapted to meet the specific needs of tourism promotion for travel agencies in the district of Lunahuaná, which has required a careful classification and organization of the services provided by the company.

Operation

Minimal system requirements: The virtual reality application, accessible online, is designed to run efficiently with basic system requirements. These are:

  • Server:

    • o Must be compatible with and support PHP version 8.0.

    • o Must have sufficient storage space to collect data on the frequency and interest of the customer's use of the service while using the application.

  • Client:

    • o An up-to-date web browser with JavaScript ES6 support is required.

    • o Internet connection required to access online features.

    • o Access via a mobile device is sufficient for a good user experience, but for full immersion, the use of a virtual reality device such as Oculus Quest 2 is recommended.

Ensuring that these requirements are met ensures that the application remains accessible and usable, even in travel agencies with limited technological resources.

Unique features

The application has distinctive features that differentiate it from existing solutions:

  • Virtual Reality (VR) Exploration: Allows users to explore destinations in a fully immersive way using mobile devices or dedicated devices such as Oculus Quest.

  • Collaborative Virtual Reality Experiences: Allows groups of people to connect to the virtual world in real time from different locations. This allows friends and family to enjoy shared travel experiences even when they are not physically together.

  • Cross-Platform Compatibility: This progressive web application (PWA) works across multiple platforms and browsers, reducing the need to develop separate applications for different operating systems (Garad & Pramod, 2021).

Ethical considerations

Ethical approval was obtained from the Institutional Review Committee of the Research Unit of the Faculty of Engineering of the Universidad Nacional de Cañete on June 5, 2023, with the assigned number CE-UIFI-N°001-2023. Written informed consent was obtained from all participants after their agreement to participate in the study. The confidentiality of personal information and responses was guaranteed, and the data was used exclusively for research purposes.

Use cases

Preface: Data initialization

The system data is loaded automatically following the installation steps detailed in the “Readme.md” file found in the repository (Cayahuallpa-Paquirachi, 2023).

Results were measured and analyzed using key performance indicators (KPIs) focused on brand loyalty, customer retention and customer satisfaction.

Use case 1: Brand loyalty

Figure 1 highlights that the adoption of the virtual reality application showed a significant 66.36% increase in brand loyalty after its implementation. This increase is based on the comparison of data obtained from June to October 2023, as presented in the “ind1.php” page. These results represent an increase in brand loyalty compared to the previous year, suggesting that the immersive experience provided by virtual reality not only captured consumers' attention, but also strengthened their connection to the brand.

59c13a7b-b871-44fd-a550-0d220bc78ef4_figure1.gif

Figure 1. Brand Loyalty – ind1.php view.

Input:

  • Enter the view “ind1.php”.

  • Search in the input of MONTH: “JUNE”.

Output: List of coincidences:

  • ID: 1

    • DAY: 1, MONTH: JUNE, TIME: 284 min

  • ID: 2

    • DAY: 2, MONTH: JUNE, TIME: 358 min

Use case 2: Customer retention

Figure 2 shows that customer retention increased significantly after the implementation of virtual reality technology, with a 65.48% increase in retention after implementation. This increase is based on the comparison of data obtained from June to October 2023, as presented in the “ind2.php” page. This data is revealing, as it implies that the virtual reality application not only attracted customers, but also played a crucial role in the acquisition of their services, ensuring the survival and growth of the brand.

59c13a7b-b871-44fd-a550-0d220bc78ef4_figure2.gif

Figure 2. Customer retention – ind2.php view.

Input:

  • Enter the view “ind2.php”.

  • Search in the input of MONTH: “AUGUST”.

Output: List of coincidences:

  • ID: 57

    • DAY: 1, MONTH: AUGUST, AMOUNT: 27

  • ID: 58

    • DAY: 2, MONTH: AUGUST, AMOUNT: 79

Use case 3: Customer satisfaction

Figure 3 looks at customer experience with the application, and the results of a survey of users of this technology show that 78.15% of respondents rated the implementation as “good”. This percentage not only reflects positive acceptance, but also suggests that the experience provided by the virtual reality application met or exceeded the expectations of most users. This level of satisfaction is indicative of a well-received product, which is likely to contribute to positive word-of-mouth recommendations among individuals, strengthening the brand's reputation and positioning in the industry.

59c13a7b-b871-44fd-a550-0d220bc78ef4_figure3.gif

Figure 3. Customer satisfaction – ind3.php view.

Input:

  • Enter the view “ind3.php”.

Output:

  • Opinions reports

These use cases demonstrate how the application builds brand loyalty and retention among users, in addition to being easy to use and meeting initial expectations.

Discussion

The first indicator obtained a 66.36% increase in brand loyalty, these results reflect how immersive experiences intensify consumers' emotional and cognitive connection with the brand. This result plays a crucial role in consumers' perception of and loyalty to a brand (Meißner et al., 2020). It can also positively influence the consumer's relationship with the brand (Zeng et al., 2023). In this context, it is evident that brand loyalty is intrinsically linked to the service provided to customers through its online channels (Merdiaty & Aldrin, 2022).

The second indicator shows a 65.48% improvement in customer retention, which indicates that the application not only attracts customers, but also keeps them engaged. This increase is attributed to the implementation of personalized engagement strategies, such as advanced loyalty programs and identification of customer preferences and behaviors, thus enabling more effective personalization of services and offers. This result suggests that virtual reality not only enhances the immediate experience, but also influences consumers' future intentions to share their positive experiences. This behavior of sharing positive experiences is considered a key indicator of customer retention (Lee, 2022). Previous studies have indicated that virtual reality brings significant benefits to the industry from both economic and marketing perspectives. These benefits include the enhancement of the image of tourism destinations and an increase in attractiveness to potential visitors (Ouerghemmi et al., 2023). Moreover, a comprehensive perspective is provided on how virtual reality is transforming the tourism industry, especially with regard to customer retention (Abarca et al., 2022).

The customer satisfaction rating of 78.15% represents a tangible improvement in the user experience. This high level of satisfaction was achieved through the implementation of two key initiatives. These include the optimization of user interfaces to provide more intuitive navigation, and the integration of immediate response systems to address inquiries and resolve issues efficiently. This result shows that the quality and type of experience provided by virtual reality is highly satisfactory for the users involved in such research (Orús et al., 2021). Similarly, it highlights that a positive experience with virtual reality technology has broad and lasting effects on the relationship between the customer and the company (Alcañiz et al., 2019). Furthermore, it is emphasized the importance of considering how the adoption of virtual reality transforms market dynamics and sets new standards in the customer's tourism experience (Branca et al., 2023).

The limitations of this study lie in its reliance on quantitative indicators, which do not fully capture the complexity of individual experiences. In addition, the results may have been influenced by cultural or demographic factors specific to the sample studied. In terms of future work, it would be beneficial to explore longitudinal studies that examine the persistence of virtual reality's impact on brand loyalty and customer retention over time. This could include analyzing changes in consumer perceptions as the novelty of virtual reality wears off. It would also be beneficial to incorporate qualitative approaches, such as interviews or ethnographic studies, to gain a better understanding of how consumers experience and make sense of immersive technologies.

Conclusions

Remarkably, the application captured users' interest and sustained their engagement. This data not only highlights the effectiveness of the application in driving loyalty, but also suggests its potential to reshape expectations and practices in long-term customer engagement. Customer engagement reveals how an immersive experience can revolutionize the connection between customer and brand. This finding suggests that these strategies go beyond simply capturing interest and set new standards in the customer-brand dynamic. This breakthrough is notable not only for its immediate impact, but also for opening the door to future research on how technological immersion can redefine business relationships and customer loyalty. The user satisfaction rate highlights the success of virtual reality innovations that not only improve the customer experience, but also redefine expectations in the tourism sector. These results demonstrate the effectiveness of immersive experiences and their ability to drive tourism in new and engaging ways.

The application of virtual reality in tourism is characterized by its ability to transform and enrich the user experience, resulting in increased customer loyalty and retention. By providing an immersive and emotionally engaging experience, Virtual Reality is emerging as a key factor in differentiating destinations in a highly competitive market, with significant potential to enhance tourism promotion. The practical implications of virtual reality in the tourism sector are remarkable, as institutions can implement this technology to differentiate themselves in the marketplace, thereby increasing customer loyalty and retention through immersive experiences.

While current research has observed significant improvements in brand loyalty and customer retention, there are opportunities for improvement, such as expanding the study demographic and personalizing content. This would maximize the potential of virtual reality in tourism and better tailor the user experience.

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Cayahuallpa-Paquirachi C, Pacheco A and Uribe-Hernandez Y. Transforming the tourism experience: Virtual Reality for customer loyalty in the tourism industry [version 1; peer review: 1 approved with reservations]. F1000Research 2024, 13:302 (https://doi.org/10.12688/f1000research.146072.1)
NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article.
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Open Peer Review

Current Reviewer Status: ?
Key to Reviewer Statuses VIEW
ApprovedThe paper is scientifically sound in its current form and only minor, if any, improvements are suggested
Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit.
Not approvedFundamental flaws in the paper seriously undermine the findings and conclusions
Version 1
VERSION 1
PUBLISHED 19 Apr 2024
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Reviewer Report 08 Jun 2024
Aniesa Samira Bafadhal, Universitas Brawijaya, Malang, East Java, Indonesia 
Approved with Reservations
VIEWS 13
1) The current research article's rationale for developing the new software tool is unclear.
While the paper proposes virtual reality (VR) as a pivotal strategy for advertising and fostering brand loyalty in tourism companies, the title fails to emphasize ... Continue reading
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CITE
HOW TO CITE THIS REPORT
Samira Bafadhal A. Reviewer Report For: Transforming the tourism experience: Virtual Reality for customer loyalty in the tourism industry [version 1; peer review: 1 approved with reservations]. F1000Research 2024, 13:302 (https://doi.org/10.5256/f1000research.160110.r282143)
NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article.

Comments on this article Comments (0)

Version 1
VERSION 1 PUBLISHED 19 Apr 2024
Comment
Alongside their report, reviewers assign a status to the article:
Approved - the paper is scientifically sound in its current form and only minor, if any, improvements are suggested
Approved with reservations - A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit.
Not approved - fundamental flaws in the paper seriously undermine the findings and conclusions
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