Recent research conducted by Amadeus, titled “Travel Technology Investment Trends,” reveals a significant surge in technology investment across various sectors within the travel industry in 2024. The study, the first of its kind to comprehensively analyse investment intentions and technology priorities in ten key markets worldwide, highlights an industry-wide eagerness among travel companies to bolster their technological infrastructure.
The survey engaged 1,253 leading travel technology decision-makers across various sectors, including airlines, travel distribution, hotels, airports, corporate travel management, and travel payments, across ten global markets. The methodology employed for this research involved an online survey conducted by independent market research agency Opinium in Q4 2023. The results revealed that 91% of respondents anticipate moderate to aggressive increases in investment within their organizations for 2024.
This bullish sentiment is coupled with a targeted focus on technology enhancements, with 67% of senior decision-makers expressing intentions to ramp up technology spending compared to 2023.
Sector-wise, the average percentage increase in technology spend forecasted for 2024 is as follows:
- Airports: 17%
- Corporations: 15%
- Hotels: 14%
- Airlines: 13%
- Travel agencies: 13%
- Travel payments: 12%
Key priorities driving this surge in technology investment include embracing smarter retailing, personalisation, and enhancing digital efficiency.
Noteworthy findings from the research include:
- Full-service airlines anticipate an 18% increase in revenue by transitioning to modern retailing, with expectations for this transition to occur within the next four years.
- Biometrics implementation across the complete airport experience is anticipated by 60% of airports within the next five years, encompassing check-in, bag-drop, lounge, and boarding processes.
- Personalisation is expected to drive more than 5% growth in incremental revenue for 85% of respondents from the hospitality sector.
- New Distribution Capability (NDC) ranks as the top technology for implementation by leisure travel agents in the next 12 months, cited by 40% of agents.
- A third of corporate travel managers plan to digitize the complete end-to-end expense management process within the next year.
- Similarly, a third of travel payments leaders aim to enhance global payments flows by implementing payments orchestration in the next 12 months.
Decius Valmorbida, President of Travel at Amadeus, emphasises the importance of maximising the impact of digital transformation spending to enhance the traveller experience across the ecosystem. Meanwhile, Francisco Pérez-Lozao Rüter, President of Hospitality at Amadeus, echoes this sentiment, noting the potential for significant growth and customer experience improvement through strategic investment in technology.
The Amadeus survey also highlights that machine learning, data analytics, and cloud computing emerged as top investment priorities for the industry, both in 2024 and projected for 2029. These technologies are seen as instrumental in driving efficiency, personalisation, and overall business growth within the travel sector.
The results of the Travel Technology Investment Trends research was presented in an Extended Reality experience at an Amadeus Lounge, developed in collaboration with strategic partner Accenture. Additionally, Amadeus plans to release in-depth reports examining each sector explored in the research throughout the first half of 2024.
