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Rapid advancement in immersive technology and the global response to the COVID-19 pandemic will catalyze Extended Reality in tourism. This research letter draws from Schumpeter’s innovation theory to examine how the evolving market-driven factors arising from the magnitude of change in the tourism industry will accelerate innovation through creative accumulation and creative destruction for tourism enterprises leading to sustainable competitive advantage. Insights from this research letter contribute to how Extended Reality will reshape tourism and provide implications for tourism stakeholders.
Kwok et al. (Sat,) studied this question.