Travel companies expect ‘moderate to aggressive’ technology investment increase in 2024

Travel companies are expected to increase their technology investments by 14% in 2024, according to new research from Amadeus.

According to the company’s Travel Technology Investment Trends survey, 91% of companies surveyed expect a “moderate to aggressive” investment increase this year.

Priorities for respondents include machine learning, data analytics, and digital payments.

Additionally, the majority of airlines (98%) have already begun plans to use biometrics at airports. The study found that 70% of airlines expect to implement biometric identity management by 2026, and 90% of airports have invested in major programs in this area. This reflects recent research by SITA, an IT specialist company.

Amadeus recently acquired biometrics specialist Vision-Box.

More than two-thirds of travel industry decision makers expect technology investments to increase in 2024 compared to 2023. Spending at airports is expected to increase by his 17%, and investments in the travel payments sector are expected to increase by around 12%. Hotels and airlines are expected to increase their spending on technology by 14% and 13%, respectively.

The Amadeus report also found that respondents said increasing their use of technology would increase their revenue. Airlines suggest that switching to modern retail could increase revenue by 18%, and hotels estimate that personalization strategies could increase incremental revenue by 5% .

“Hoteliers, airlines and the industry as a whole are right to be ambitious about the next-generation technology we are building together,” said Francisco Pérez Rosao Rueter, President of Hospitality at Amadeus. ” he said.

“Travel companies have huge potential to improve their customer experience and gain significant growth and control if they set their investment strategies in place now. From this research, we have clear ambitions for evolution and We understand the commitment and are excited to be at the forefront of this journey with our customers.”

Machine learning, data analytics and digital payments were seen as the most important technologies for businesses this year, but respondents believe machine learning, generative artificial intelligence and cloud computing will be the most important by 2029. Stated.

During the media event, Amadeus also updated on some of the ways it is piloting new technologies, including its Triportation initiative, which provides a digital twin that allows consumers and industry players to experience elements of their trip before they buy. provided information.

The company is also working on an “Inspiration Plugin” to help online travel agents give travelers inspiration on where to go, what flights to take and what to do. He said there was.

Investment in technology has increased in recent years, with Amadeus itself increasing its R&D investment by around 13% to €1.1 billion in 2023, and there is an immediate need to address technical debt within the industry. There is a growing recognition that this is the case.

The Amadeus survey, conducted online by Opinium, is based on responses from more than 1,250 travel industry decision makers.