Tour operators are undergoing a digital transformation, spurred by post-pandemic recovery and increasing demand. Historically, these businesses relied on outdated systems that limited their ability to book and market trips effectively. Today, however, companies like Intrepid Travel are investing heavily in technology to stay competitive and improve operations — with Intrepid increasing its tech budget by 189% compared to 2019.

The path to modernization is complex. Many tour operators still struggle with integrating new systems, often balancing whether to build custom tech or buy solutions from third-party providers.

Industry experts agree that partnering with tech companies is key. Companies like Kaptio and Nezasa offer platforms that consolidate bookings, automate documents, and provide real-time inventory access. These tools help operators reduce manual tasks and improve customer experiences. Kaptio, built on Salesforce, enables teams to manage customer journeys more effectively and drive repeat bookings — though implementing such systems can cost over $1 million.

Automation is emerging as a game-changer. Explore Worldwide uses a tool called Parabola to streamline customer feedback processing. This automation has allowed the company to resolve issues faster and free up time to focus on product improvements.

Software-as-a-service (SAAS) platforms are gaining traction in the industry. Travefy, for example, offers tools for itinerary planning and digital client management. Its features help tour operators store e-signatures, track client approvals, and enhance documentation — a critical need realized during the pandemic.

Still, challenges remain. Eli White of smarTours says many operators are stuck cleaning up legacy systems, delaying their ability to adopt cutting-edge tech. Staffing shortages and the loss of experienced workers during the pandemic have also hampered the ability to manage complex systems and meet growing demand.

Despite the hurdles, leaders like Leigh Barnes of Intrepid are optimistic. They believe the industry is on the brink of a major tech shift. The goal? Fully digitized operations — from customer communications to trip management — within the next few years.

To get there, Barnes advises operators to understand their value chain and prioritize innovations that deliver the most benefit. With strategic planning and smart investments, tour operators aim to streamline operations and thrive in a fast-changing travel landscape.