Digital transformation in tourism SMEs: A strategic imperative in the evolving business landscape

Abstract This study investigates the impact of digital transformation on firm performance within the tourism sector. Firm performance is assessed in terms of turnover and employment growth, and is measured both as realized outcomes over the period 2016–2019 and as expected performance for the forthcoming years. The empirical analysis, based on data from the Flash Eurobarometer Survey of the European Commission, indicates that having a strategic digitalization plan boosts the growth of tourism SMEs more than simply adopting digital technologies, though both significantly improve firms’ performance. The findings further indicate that digitalization tools and strategic plans act as moderating variables in the relationship between external factors and firm performance. The most favourable growth outcomes are observed among firms that not only employ digital technologies but also define digital strategy for the future, highlighting a complementary relationship between the two dimensions. Finally, tourism firms with a digital adoption and/or strategy are more confident about future growth prospects. The study concludes with a discussion of the principal managerial and policy implications.