360-degree video and VR in tourism: Are virtual reality tours the future of traveling?

• Author:
• Author name

  Quantumrun Foresight
• November 3, 2021

Virtual reality (VR) has revolutionized industries beyond gaming, notably real estate and tourism, by offering immersive 360-degree experiences. The technology has transformed how consumers plan their travels and book tours. However, the rise of VR tourism also brings challenges, including potential job displacement in traditional tourism roles, new regulatory concerns, and the need for retraining and upskilling the workforce.

360 video and VR in tourism context

Virtual reality had already established a strong foothold in the entertainment sector prior to the COVID-19 pandemic. This trend was particularly evident within the gaming community, where companies continuously strive to create increasingly immersive experiences for their players. The allure of VR lies in its ability to provide a heightened sense of realism and engagement, a feature that has not gone unnoticed by industries beyond gaming. Sectors like real estate and tourism have begun to harness the potential of VR, integrating it into their business models to enhance customer experiences and streamline operations.

One of the most notable applications of VR is the use of specialized cameras and software to create a 360-degree view of a location or property. This feature has become increasingly prevalent on hotel and real estate websites, offering potential customers the opportunity to virtually explore a space before making a booking or purchase. In 2020, for instance, real estate companies like Zillow and Redfin started offering virtual home tours, enabling potential buyers to explore properties from the comfort of their own homes amidst pandemic-related restrictions.

The 360-degree VR experiences can be broadly categorized into two types: monoscopic and stereoscopic. Monoscopic VR videos, which can be viewed on standard devices such as mobile phones and computers, offer a single channel view of the environment. Stereoscopic VR videos require a VR headset for viewing and provide a more immersive experience by presenting two slightly different angles of the scene to each eye, simulating depth.

Disruptive impact

In 2017, transportation technology firm Navitaire introduced the first virtual booking experience using a VR headset, which included not only booking airplane tickets but also arranging car rentals. This innovative approach to booking could change how consumers plan their travels, offering a more immersive and interactive experience that goes beyond the traditional online booking process. Moreover, the use of VR to simulate full travel experiences, as demonstrated by Tokyo-based First Airlines, could have significant implications for the future of tourism. 

By offering a complete travel experience – from boarding an airplane with an actual cabin crew and gourmet food to a virtual tour of the passengers' destinations – First Airlines has effectively brought the travel experience to the comfort of the passengers' homes. This trend could open up new avenues for tourism, especially for those who are unable to travel due to financial, health, or other constraints. The pandemic has accelerated this trend, with companies like Ascape offering virtual tours of popular destinations, providing a lifeline to the tourism industry during times of travel restrictions.

The potential applications of VR extend beyond the realms of travel and tourism. In Canada, digital tours are being utilized to preserve and promote the indigenous tourism industry, offering virtual tours of indigenous cultural sites and experiences. Similarly, assisted living facilities are leveraging VR to enhance the quality of life for their residents. Elderly individuals can virtually visit landmarks, their previous homes, or even access family video recordings, providing a sense of connection and nostalgia.

Implications of 360-degree video and VR in tourism

Wider implications of 360-degree video and VR in tourism may include:

• Customers preferring a virtual tour guide. Alternatively, virtual tours may act like food samples or software free trials that may spur greater in-person tourism at later dates.
• Video production companies seeing significant demand from consumers and municipal travel promotion boards for VR tourism-based content.
• Airline companies offering virtual booking experiences and tours of their planes as a hybrid form of business and entertainment.
• A shift towards virtual tourism leading to a significant reduction in carbon emissions associated with travel, contributing to sustainable tourism practices.
• The rise of VR tourism stimulating job creation in the tech sector, as demand for VR content creators, software developers, and hardware manufacturers increases.
• The integration of VR in tourism leading to changes in labor market dynamics, with traditional tourism jobs potentially being displaced by tech-oriented roles, requiring workforce retraining and upskilling.
• Changes in demographic travel patterns, with older populations who may be less mobile being able to "travel" and explore the world virtually.
• New regulatory challenges and privacy concerns, as governments and regulatory bodies grapple with issues related to data security, content regulation, and intellectual property rights in the virtual space.

Questions to comment on

• Would you be willing to try such digital tours instead of actual travel? Why or why not?
• How might virtual tourism impact people’s demand for travel?