Amadeus, a renowned global travel technology firm, has released a new study titled 'Travel Technology Investment Trends' that outlines the rising investment trends in the travel industry's technology sector. The comprehensive study, backed by insights from senior decision-makers worldwide, notes that airports, corporate travel managers, and hotels are planning more significant technology investments focusing on machine learning, data analytics, digital payments, and extended reality advancements.
The research revealed that an impressive 98% of airlines are utilising or intend to implement biometrics at airport services. The exhaustive study, the first of its kind, analyses eight distinct sectors across the end-to-end journey in ten international markets. It explores the current technology priorities and investment intentions of full-service and low-cost airlines, airports, hotels, travel sellers, corporations, and travel payment departments, alongside their ambitions for the future.
A 14% increase in travel industry technology investment is predicted for this year, driven by a desire for digital transformation and according to business growth plans. The research indicated that 67% of senior industry decision-makers anticipate boosting their technology investments this year compared to 2023 expenditure. Among the sectors, the anticipated average increases in spending for 2024 are 17% for airports, 15% for corporations, 14% for hotels, and 13% each for airlines and travel sellers.
The study highlights notable industry expectations for technology investments. Full-service airlines expect a revenue boost of 18% by switching to modern retailing, with optimism for a transition to 'Offer & Order' within four years. Notably, within five years, 60% of airports plan to deploy biometrics throughout the entire airport experience (check-in, bag drop, lounge, boarding). The hospitality sector also believes personalisation could contribute to more than a 5% growth in additional revenue, as reported by 85% of hospitality-based respondents.
Decius Valmorbida, the President of Travel at Amadeus, said, "Every area of the travel industry is increasing investment in digital transformation. It's key that this spending maximises impact and enhances the traveller experience across the travel ecosystem." He added that existing technologies like biometrics are helping to make trips more contextual and relevant, with the emergence of Generative AI promising to further accelerate the pace of change.
Machine learning is currently deemed the most crucial technology for the travel industry, a perspective global travel industry leaders anticipate will remain true in five years. Data analytics and cloud computing are also significant investment priorities across all sectors.
Amadeus plans to release in-depth sector-specific reports throughout the first half of 2024, examining the topics explored in the 'Travel Technology Investment Trends' study.
The study was conducted through an online survey by independent market research agency Opinium in Q4 2023. The agency surveyed 1,253 leading travel technology decision-makers worldwide, including those from full-service and low-cost carriers, online travel agencies, business travel agencies, leisure travel agencies, hotels, airports, corporate travel management, and travel payment sectors.