The Role of Smart Automation in Tourism Industry Management Using Smart PLS

ABSTRACT


INTRODUCTION
Having a comprehensive understanding of smart automation is crucial for the tourism industry.The introduction of Information and Communication Technology (ICT) has the potential to create significant trans-formations in the tourism industry, presenting a variety of opportunities and challenges.ICT enables tourists to easily locate, tailor, and purchase tourism products while also supporting the industry in developing, man-aging, and disseminating tourism services globally.By implementing ICT, stakeholders in the Journal homepage: https://journal.pandawan.id/italic❒ P-ISSN: 2963-6086, E-ISSN: 2963-1939 tourism sector can employ intelligent automation to enhance transactional efficiency and communication [1].ICT allows for the integration of customer relationship management and supply chain management into a user-friendly plat-form for a wide range of operations, including product selection, booking, fulfillment, tracking, payment, and reporting.
The use of intelligent automation in the tourism industry has grown exponentially, with 20% of trans-portation companies implementing intelligent automation technologies in 2016 and an expected growth rate of 8% (McKinsey Global Institute, 2017).Additionally, about 12% of other travel and tourism businesses, including hotels and entertainment venues, have followed suit with an annual growth rate of 6.5% [2].While intelligent automation has been primarily used in service operations, there is projected growth in product devel-opment, marketing, and sales (McKinsey Global Institute, 2017).Studies have shown the benefits of intelligent automation in the hospitality and tourism industry, including increased productivity, efficiency, and profitability for suppliers and personalized and convenient experiences for consumers (Kong et al., 2021;Cain et al., 2019;Samara et al., 2020).However, there is still a need for a theoretical framework to evaluate the introduction of intelligent automation in the tourism industry [3].
The tourism industry utilizes two types of artificial intelligence systems, namely purely digital systems and digital-physical hybrid systems commonly referred to as robots.These systems are employed in various aspects of the tourism industry.For instance, the airline industry utilizes automated digital systems such as online check-in and mobile boarding passes.However, the most significant impact on the tourism industry has been the emergence of various chatbot types, which have resulted in significant benefits and major changes to the industry.

Tourism Industry Adaptation
The tourism industry adaptation is equally crucial for Small and Medium Enterprises (SMEs).SMEs are a vital business sector in Indonesia as they contribute significantly to the country's economic growth and employment rate [4].However, these businesses encounter various challenges, including adapting to the tourism industry.To maintain their existence and remain competitive both locally and globally, SMEs need to improve their adaptation to the tourism industry.This can be achieved by leveraging supportive technologies such as Information and Computer Technology [5].By doing so, SMEs can enhance their efficiency and effectiveness, resulting in improved performance in achieving their business objectives.Moreover, it's important to consider social and cultural sensitivity and environmental sustainability aspects when adapting the tourism industry in SMEs [6].This approach will ensure that the resulting tourism industry is sustainable and has a positive impact on the surrounding environment while remaining culturally and socially friendly [7].

Tourism Industry Idea
The concept of the tourism industry involves producing goods or services that rely on cultural-based human creativity to generate economic benefits and improve society's welfare [8].Indonesia has immense potential for developing a creative industry based on culture and nature.The creative industry encompasses a wide range of areas, including applications, architecture, interior design, product design, visual communication design, fashion, FAV (film, animation, and video), photography, game development, crafts, culinary, music, publishing, advertising, performing arts, fine arts, television, and radio (Ministry of Tourism and Creative Economy, 2020).The government has implemented several policies to support the growth and development of this industry, which positively impacts the economy and employment rates.Creative industries can also create new job opportunities.Thus, the tourism industry has been identified as a critical component of Indonesia's economy.As natural resources become scarce, industries should pivot towards optimizing the creative potential of human resources, particularly the younger generation.to the development of innovative products and services with high economic value [9].Therefore, the creative young generation can be a vital component of an industry-oriented future (Herlambang, 2015).

METHOD
The research method used in this study is a quantitative approach using the Smart Partial Least Square (PLS) method as a data analysis tool [10], [11].The quantitative approach was chosen to measure the extent of the influence of smart automation in smart tourism industry management on tourist destination loyalty and sustainable development using numerical data generated from questionnaires [12], [13], as shown in Table 1. 4. THE COMPREHENSIVE THEORETICAL BASIS Additionally, the Smart PLS method was selected because it can address the issues of multicollinearity and relatively small sample size, and it has the ability to test structural models simultaneously [14].This method can also generate path analysis that can be used to test the direct and indirect effects of the variables involved in this study.
By using multiple indicators and considering the proposed concepts and theories, this research aims to examine the aforementioned objectives and produce outcomes that can be used as guidelines to determine suitable strategic policies for managing the tourism industry.The research methodology employed in this study is quantitative analysis, and the following steps are undertaken to achieve the research objectives: 1. Preliminary survey, The step taken is observing the productivity in the tourism industry.2. Conducting literature review, To identify theoretically the potential methods that could be applied to tackle issues at hand. 3. Identifying and formulating problems, Carrying out the process of identifying and formulating challenges that arise during the progression of the tourism industry.4. Determining research objectives, The defined objectives will be linked to the existing problems in order to provide solutions to the aforementioned issues.5. Conclusion, The conclusion is drawn from the result of data processing and analysis.

. Construct Reliability and Validity
To ensure the construct's reliability, two experiments were conducted, testing for two types of validity: convergence and discriminant.Convergence validity is examined to ensure that objects associated with variables correlate significantly, while discriminant validity tests show that items from different variables are not interrelated.By demonstrating the uniqueness of the dataset and the absence of associations between elements with different variables, the model is sufficiently robust to evaluate variable significance without the need for interconnections between elements [16].

Convergence validity
Several different criteria, such as Average Variance Extracted, Cronbach Alpha, Composite Reliability, and Outer Loadings, have been met in testing the convergence validity.
1   The tables (Tables 3, 4, and 5) present the Heterotrait-Monotrait, Fornell and Larcker, and cross-loading criteria, respectively.It is important to highlight that all of these values exceed the cutoff threshold of 0.85, and the heterotrait-monotrait values are further supported by the graphical representations in Figure 6.
However, the heterotrait-monotrait condition remains unfulfilled.This condition is also satisfied when the diagonal values in the corresponding columns are greater, as observed in the Fornell and Larcker criteria.Table 3 reveals significant correlations between each item and its respective variable but not with other items or items from different variables.Consideration should be given to the inclusion of additional items or elements from diverse variables.

Elucidation of Results
Upon observation, it becomes evident that the beta value, p-value, and t-value serve as valuable tools for determining the support of a hypothesis.Remarkably, the impact of travel beauty on cultural Wealth exhibits an extraordinarily low p-value of 0.000, well below the established threshold of 0.05.Moreover, there is a notable advantage when factors such as cultural Wealth influence the utilization of travel beauty in the process of acquiring competitiveness.The influence of cultural Wealth on competitiveness presents a significant and acknowledged benefit.Furthermore, the T-value for the targeted hypothesis surpasses 13.197, The Role of Smart Automation in Tourism Industry Management Using Smart PLS (Oscar Jayanagara ❒ P-ISSN: 2963-6086, E-ISSN: 2963-1939 as it represents the alternative hypothesis of a positive effect from the independent variable on the dependent variable.The directional value derived from the T-test will be subject to further examination and evaluation.Additionally, the initial average value, beta, offers insights into the positive or negative direction, with the positive values highlighting their positive associations.Figures 7,8,9,10,11,and 12 depict the path coefficients and the impact of independent factors on the dependent variable.Notably, figure 7 visually illustrates the correlation between variables and presents the model created in SMART Pls.

CONSTRUCT RELIABILITY AND VALIDITY
In summary, this study makes a significant contribution to the current body of literature by shedding light on the transformative influence of smart automation on the tourism sector, particularly for Small and Medium Enterprises (SMEs) [17].Moreover, it offers valuable insights and actionable recommendations for SMEs to optimize their business practices.Future investigations in this domain will undoubtedly deepen our comprehension of the complex interplay between intelligent automation and SME performance, serving as a catalyst for the flourishing and triumph of SMEs in the age of smart automation.
The findings of this research carry significant implications for the business practices of Small and Medium Enterprises (SMEs) that deserve attention [18].SMEs must acknowledge the paradigm-shifting po-tential of Smart Automation and proactively contemplate its integration into their operations.By embracing Smart Automation technology, SMEs can unlock heightened productivity, amplify revenue growth, and en-hance decision-making processes.A pivotal step for SMEs lies in investing resources to cultivate their Smart Automation prowess, encompassing facets such as preparedness, strategic planning, implementation, and im-pact evaluation.Through this comprehensive approach, SMEs can fully harness the advantages bestowed by Smart Automation, positioning themselves for a distinctive competitive advantage.
Moreover, the research findings emphasize the importance of well-established theories like the resource-based view and dynamic capabilities theory in explaining the impact of Smart Automation on the performance of the tourism industry.It is crucial for Small and Medium Enterprises (SMEs) to integrate these theoretical perspectives into their Smart Automation strategies and resource management approaches in order to attain an enduring competitive edge and maximize their performance results [19].
In the context of suggestions for further research, it is crucial to delve into the specific mechanisms and factors that act as mediators between the use of smart automation and the performance of the tourism industry in Small and Medium Enterprises (SMEs).Exploring the potential challenges and barriers to smart automation adoption in SMEs will also provide valuable guidance in developing effective strategies to overcome these obstacles.Additionally, conducting comparative studies across industries or diverse geographical contexts can provide a deeper understanding of the specific implications of smart automation on the performance of the tourism industry in SMEs [20].
Overall, this research makes a valuable contribution to the existing literature by revealing the impact of smart automation on the performance of the tourism industry in Small and Medium Enterprises (SMEs), as well as providing relevant practical implications for SMEs' business practices.Further research in this field will continue to broaden our understanding of the intricate dynamics between smart automation and SME performance, ultimately fostering the growth and success of small and medium enterprises in the era of smart automation.

SUGGESTIONS
It is recommended to conduct a comprehensive analysis of the specific mechanisms and fac-tors that mediate the relationship between smart automation adoption and entrepreneurial performance in SMEs.This could involve examining the role of organizational culture, employee attitudes, and technological infrastructure in facilitating the integration of smart automation.

Figure 1 .❒ 5 . 1
Figure 1.Conceptual SchemeIn the context of smart automation, various performance techniques, such as performance assessment and key performance indicators as expressions, should be clearly defined[15].However, the complexity of performance assessment in smart automation must be acknowledged, which necessitates alternative performance techniques and better definitions to understand it.Int.Transactions on Artificial Intelligence, Vol. 2, No. 1, November 2023: 7-23

Table 1 .
Indicators Used To Measure Constructs CW2This visit provides a comprehensive insight into the historical era of this cultural heritage.CW3During my visit, I didn't feel connected to the related history, legends, and historical figures.CW4Travel Desires (TD) The likelihood of me returning to this heritage site for another heritage trip is high.TD1If given the opportunity, I would definitely return to places that have heritage tourism.