The Digital Disruptive Intermediaries in the Tourism Industry

2. Baseline

The term disruptive technologies was coined by Bower and Christensen (1995). Digital disruption is the effect that changes the fundamental expectations and behaviours in a culture, market, industry or process - caused by, or expressed through digital capabilities, channels, or assets. Advancing technology and globalization are the main causes for digital disruption (Dunning, 2014). Existing markets are shaken up mainly because of innovations (Christensen et al., 2004). The disruptive innovation theory points to a situation in which organizations can use relatively simple, convenient, low-cost innovations to create growth and triumph over powerful incumbents. Disruptive innovations either create new markets by bringing new features to non-consumers or offer more convenience or lower prices to customers at the low end of an existing market (Christensen et al., 2004). Disruptive technologies introduce a very different package of attributes from the one mainstream customers historically value, and they often perform far worse along one or two dimensions that are particularly important to customers.