A recent study conducted by technology giant Amadeus, titled ‘Travel Technology Investment Trends‘, forecasts a significant acceleration in the pace of transformation within the travel industry, with a notable 14 per cent increase in technology investment planned for the year 2024. The research, launched today, marks a pioneering effort in comprehensively analysing investment intentions and technology priorities across eight sectors of the travel industry, spanning ten global markets.
The study reveals a robust appetite for investment across the sector, with a staggering 91 per cent of surveyed travel companies expressing expectations of “moderate to aggressive” increases in investment within their organisations in 2024. Notably, airports, corporate travel managers, and hotels emerge as the frontrunners in this technological evolution, leading the charge in plans to bolster technology spend.
Key areas of focus for investment include machine learning, data analytics, digital payments, and extended reality, reflecting the industry’s commitment to driving digital efficiency and enhancing customer experiences. Noteworthy findings from the research underscore the industry’s inclination towards smarter retailing and personalization strategies to cater to evolving consumer preferences.
A significant highlight of the study is the overwhelming adoption of biometrics at airport services, with 98 per cent of airlines having already implemented or planning to implement biometric solutions to streamline airport processes.
Among the various sectors, airports lead with an average projected increase in technology spend of 17 per cent, followed closely by corporations (15 per cent) and hotels (14 per cent). Airlines, travel sellers, and travel payment departments also anticipate substantial increases, with average growth rates ranging from 12 per cent to 13 per cent.
Anticipated technological investments across key sectors
In anticipation of the year 2024, industry leaders are prioritizing smarter retailing, personalized experiences, and digital efficiency as their top technological objectives. Notable insights from respondents include:
Full-service airlines project an 18 per cent boost in revenue by transitioning to modern retailing, with an optimistic outlook on achieving the ‘Offer & Order’ transition within the next four years.
60 per cent of airports plan to implement biometrics throughout the entire airport journey within the next five years, encompassing processes such as check-in, bag-drop, lounge access, and boarding.
85 per cent of respondents from the hospitality sector foresee leveraging personalization to drive more than 5 per cent growth in incremental revenue.
NDC emerges as the leading technology for implementation among leisure travel agents over the next 12 months, cited by 40 per cent of the agents surveyed.
Corporate travel managers reveal intentions to digitize their end-to-end expense management process within the coming year.
Similarly, a third of travel payments leaders express plans to enhance global payments flows through the implementation of payments orchestration within the next 12 months.
Top priority technologies for 2024 and by 2029
Looking ahead, the research outlines the top priority technologies for both 2024 and 2029, with machine learning, data analytics, and cloud computing emerging as perennial favorites across all sectors. The findings emphasize a collective industry vision towards harnessing the power of technology to drive innovation and efficiency in the years to come.
As part of its commitment to providing comprehensive insights, Amadeus plans to release in-depth reports examining each sector explored in the research throughout the first half of 2024. These reports will delve into the specific investment intentions and technology priorities of full-service and low-cost carriers, hotels, airports, corporate travel managers, and payments, as well as travel sellers.
The study, conducted in Q4 2023 in collaboration with independent market research agency Opinium, surveyed 1,253 leading travel technology decision-makers worldwide. Representing a global perspective, the insights gleaned from decision-makers across ten key markets, including India, highlight the industry’s collective aspirations towards embracing technology-driven transformation.
Responding to ETTravelWorld’s query on investment plans in the Indian markets across travel tech, payments, and airport sector, Decius Valmorbida, President, Travel, Amadeus, commented on the investment landscape in Indian markets, noting the significant economic growth and burgeoning middle-class as driving forces behind technological advancements in the travel sector.
“With projects like the Greenfield airport in Noida and collaborations with leading airlines like IndiGo and Air India Group, India presents a fertile ground for the deployment of cutting-edge technologies such as machine learning, AI, biometrics, and retail transformation,” he said during the virtual launch event for media.
During the launch event, Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus, observed, “We know that the right technology is the key to connecting and unlocking the value of our travel ecosystem. Hoteliers, airlines and the whole sector are right to be ambitious about the next generation of technology that we are building together. Travel providers can see huge potential for a better customer experience as well as significant growth and control if they get their investment strategies right now. We can see clear ambition and commitment to evolution from this research and are excited to be at the forefront of this journey with our customers.”
During the first half of this year 2024, Amadeus will release in-depth reports examining each sector explored in the research – full-service and low-cost carriers, hotels, airports, corporate travel managers and payments, as well as travel sellers, including business travel agents, leisure travel agents and online travel agents.
This strategic move is poised to enhance the payment experience within the travel ecosystem and aligns with Amadeus’ commitment to delivering seamless travel experiences. By integrating Voxel’s solutions into its portfolio, Amadeus aims to provide a broader range of payment services for travel sellers while streamlining invoice management processes for tour operators, travel management companies (TMCs), hotel aggregators, and hotels.
