14% increase in travel technology investment set for 2024

14% increase in travel technology investment set for 2024

A recent study conducted by Amadeus titled “Travel Technology Investment Trends” reveals a significant jump in technology investment across sectors within the travel industry in 2024. The study, the first of its kind to comprehensively analyze investment intentions and technology priorities in ten key markets globally, highlights the drive by travel companies across the industry to strengthen their technology infrastructure.

The study engaged 1,253 top travel technology decision-makers in a variety of sectors, including airlines, travel distribution, hotels, airports, corporate travel management and travel payments, in ten global markets. The methodology used for this research included an online survey conducted by independent market research agency Opinium in the fourth quarter of 2023. The results revealed that 91% of respondents expect a moderate to aggressive increase in investment in their organizations for 2024.

This bullish sentiment is coupled with a single-minded focus on technology improvements, with 67% of senior executives expressing intentions to increase technology spending compared to 2023.

By sector, the average percentage increase in technology spending projected for 2024 is as follows:

  • Airports: 17%
  • Corporations: 15%
  • hotels: 14%
  • Airlines: 13%
  • Travel agencies: 13%
  • Road charges: 12%

Key priorities driving this surge in technology investment include embracing smarter retail, personalization and improving digital efficiency.

Noteworthy findings from the study include:

  • Full-service airlines expect an 18% increase in revenue by moving to modern retail, with this transition expected to occur over the next four years.
  • 60% of airports are expected to implement biometrics across the entire airport experience in the next five years, which includes check-in, baggage claim, lounge and boarding processes.
  • Personalization is expected to drive more than 5% incremental revenue growth for 85% of hospitality respondents.
  • New Distribution Capability (NDC) ranked as the top technology to be implemented by travel agents in the next 12 months, cited by 40% of agents.
  • A third of corporate travel managers plan to digitize their entire end-to-end spend management process in the next year.
  • Similarly, a third of travel payments leaders aim to improve global payment flows by implementing payment orchestration in the next 12 months.

Decius Valmorbida, President of Travel at Amadeus, emphasizes the importance of maximizing the impact of digital transformation spend to improve the passenger experience across the entire ecosystem. Meanwhile, Francisco Pérez-Lozao Reuter, president of hospitality at Amadeus, echoes this sentiment, noting the potential for significant growth and improving the customer experience through strategic investments in technology.

The Amadeus study also highlighted that machine learning, data analytics and cloud computing emerged as key investment priorities for the industry, both in 2024 and projected to 2029. These technologies are seen as a tool to drive efficiency, personalization and overall business growth within the tourism sector.

The results of the research on investment trends in travel technology were presented in an augmented reality experience in the Amadeus Lounge, developed in collaboration with strategic partner Accenture. In addition, Amadeus plans to publish in-depth reports looking at each sector explored in the research in the first half of 2024.

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