The article “14% Increase in Travel Technology Investment Set for 2024,” written by Arvindh Yuvaraj, examines a detailed study conducted by Amadeus titled “Travel Technology Investment Trends.” This research anticipates a notable rise in technology investments within various travel industry sectors for the year 2024. The study represents a pioneering effort to systematically assess investment intentions and technology priorities across ten major global markets.
The study surveyed 1,253 leading travel technology decision-makers across different sectors, including airlines, travel distribution, hotels, airports, corporate travel management, and travel payments. The research was conducted via an online survey by independent market research agency Opinium in Q4 of 2023. A significant 91% of respondents foresee moderate to substantial increases in their organizations’ technology investments for 2024. Furthermore, 67% of senior decision-makers plan to raise their technology spending compared to 2023.
Forecasted Percentage Increase by Sector
A detailed breakdown of the projected percentage increase in technology spending reveals notable numbers across various sectors. Airports are looking at a 17% increase, corporations at 15%, hotels at 14%, airlines at 13%, and both travel agencies and travel payments at 12%. These sectors are prioritizing digital efficiency, embracing smarter retailing methods, and focusing on personalization.
Key Trends in Technology Investment
Several key trends emerged from the research. Full-service airlines anticipate an 18% rise in revenue from adopting modern retailing practices over the next four years. Sixty percent of airports plan to integrate biometrics across the entire passenger journey—covering check-in, bag-drop, lounge, and boarding—within five years. In the hospitality sector, 85% of respondents believe that personalization can drive over 5% growth in incremental revenue.
New Distribution Capability (NDC) has been identified as a top technology for implementation by 40% of leisure travel agents within the next 12 months. A third of corporate travel managers aim to digitize the entire end-to-end expense management process within the next year, and a similar proportion of travel payment leaders plan to optimize global payment flows via payments orchestration during the same period.
Strategic Role of Technology Investment
Senior industry leaders such as Decius Valmorbida, President of Travel at Amadeus, and Francisco Pérez-Lozao Rüter, President of Hospitality at Amadeus, stress the pivotal role of strategic technological investments in boosting traveler experiences and business growth. The focus for the travel industry from 2024 to 2029 is on machine learning, data analytics, and cloud computing. These advanced technologies are seen as essential for increasing efficiency, enhancing personalization, and driving sector growth.
The “Travel Technology Investment Trends” study findings were presented through an Extended Reality experience at an Amadeus Lounge, in collaboration with Accenture. Amadeus has also announced that it will publish more detailed sector-specific reports during the first half of 2024.
In summary, the article highlights a strong consensus among travel industry leaders on the necessity of increasing technology investments in 2024. The initiative aims to improve digital efficiency, implement smarter retailing strategies, and offer personalized services. This trend underscores a commitment to using advanced technologies like machine learning and biometrics to enrich traveler experiences and promote substantial business growth within the travel industry.
