In an era of rapid technological advancements, the travel sector stands on the brink of a monumental shift. A recent study spearheaded by Amadeus, a leading global travel technology company, unveils a forward-looking blueprint for the industry. Titled “Travel Technology Investment Trends,” this groundbreaking research forecasts a 14% surge in technology investments across the travel landscape in 2024, signifying a robust commitment to digital evolution and enhanced traveller experiences.
Airports, corporate travel managers, and hotels are at the forefront of this investment wave, prioritizing cutting-edge solutions like machine learning, data analytics, digital payments, and extended reality to redefine travel norms. Remarkably, 98% of airlines are on track to incorporate biometric technologies at various airport touchpoints, which promises to streamline and personalize the passenger journey.
The “Travel Technology Investment Trends” research is a pioneering effort, offering a comprehensive overview of investment intentions and technology priorities across eight pivotal sectors of the travel journey in ten key markets. This extensive study provides a critical benchmark for future investments, highlighting the sector’s collective ambition to foster growth, innovation, and a seamless travel experience.
The anticipated increase in technology investments is not just about enhancing operational efficiency; it’s a strategic move to boost business growth. Two-thirds of senior decision-makers in the travel sector are poised to ramp up their technology spending in 2024 compared to the previous year. Airports are leading the charge with a forecasted 17% increase, followed closely by corporations and hotels at 15% and 14%, respectively.
This investment is a testament to the sector’s dedication to adopting smarter retailing, personalization, and digital efficiency. Airlines, for instance, are eyeing an 18% revenue boost from modern retailing innovations, with a hopeful transition to “Offer & Order” models within the next four years. Meanwhile, within five years, 60% of airports plan to implement comprehensive biometric solutions, covering everything from check-in to boarding.
The hospitality sector is not far behind, with 85% of respondents anticipating that personalization could drive over 5% growth in incremental revenue. Furthermore, a significant portion of corporate travel managers and travel payment leaders focus on digitizing end-to-end processes, from expense management to global payments orchestration, within the next 12 months.
Decius Valmorbida, President of Travel at Amadeus, and Francisco Pérez-Lozao Rüter, President of Hospitality at Amadeus, share a unified vision of leveraging technology to enhance the traveller experience, streamline operations and unlock new growth avenues. Their insights reflect a deep understanding of the sector’s potential and the critical role of technology in achieving it.
As the travel industry embarks on this transformative journey, it’s clear that the commitment to digital innovation is more than a trend—it’s a strategic imperative. The future of travel, characterized by personalized experiences, operational efficiency, and sustainable growth, is being shaped today. The sector’s readiness to invest in technology promises an enriched traveller experience and heralds a new era of innovation and collaboration across the global travel ecosystem.
With the launch of the “Travel Technology Investment Trends” research in Extended Reality, Amadeus is not just presenting data; it’s inviting stakeholders to immerse themselves in the future of travel. This initiative, in collaboration with strategic partner Accenture, marks the beginning of a new chapter in travel, one where technology and human experience converge to create a world of endless possibilities.
Written by: Christine Nguyen
