New global research from Amadeus, Travel Technology Investment Trends, has revealed a strong appetite for investment across the travel sector in 2024.

Nearly all (91 per cent) travel companies surveyed said that they expect ‘moderate to aggressive’ increases in investment in their organisations in 2024. 

Launching today, the research – which examines eight distinct sectors across the end-to-end journey in ten markets – is the first truly comprehensive work of its kind.

It benchmarks investment intentions and technology priorities for global full service and low-cost airlines, airports, hotels, travel sellers (online, business and leisure), corporations and travel payment departments across the world as they stand today.

It also captures their ambitions for the future. 

Travel technology investment to increase across the industry

Alongside business growth plans, the travel technology market looks bright for 2024.

Over two thirds (67 per cent) of senior decision-makers in the sector expect to increase investment specifically in technology this year when compared to spend in 2023.

By sector, the average increase in spend forecasted for 2024 are as follows: Airports (17 per cent); Corporations (15 per cent); Hotels (14 per cent); Airlines (13 per cent); Travel agencies (13 per cent) and Travel payments (12 per cent).

Key sector technology investment expectations

Embracing the potential of smarter retailing, personalization and driving digital efficiency are the top priorities for 2024.

Some of the key takeaways from respondents include:

• Full-service airlines expect to see an 18 per cent increase in revenue from switching to modern retailing and are optimistic that the transition to ‘Offer & Order’ will take place within the next four years.
• In total, 60 per cent of airports expect to roll-out biometrics across the complete airport experience in the next five years, including check-in, bag-drop, lounge and boarding.
• Some 85 per cent of respondents from the hospitality sector anticipate that personalisation could help them to deliver more than five per cent growth in incremental revenue.
• NDC is the top technology for implementation by leisure travel agents over the next 12 months - cited by 40 per cent of the agents questioned.
• A third of corporate travel managers said their organisations intend to digitise the complete end-to-end expense management process over the coming 12 months.
• A third of travel payments leaders confirmed their organisations are planning to better manage global payments flows by implementing payments orchestration in the next 12 months.

Decius Valmorbida, president, Travel, Amadeus, comments: “The findings match our on-the-ground experience with customers - every area of the travel industry is increasing investment in digital transformation.

“It’s crucial this spending delivers maximum impact and improves the traveler experience across the travel ecosystem.

“Existing technologies, such as biometrics, are already helping to make trips more contextualised and relevant.

“At the same time, the emergence of Generative AI promises to increase the pace of change still further.

“Travellers will experience significant improvement to the on-trip experience in the coming years, with commitment, investment and collaboration across the ecosystem combining to make travel work better.”   

During the first half of this year 2024, Amadeus will release in-depth reports examining each sector explored in the research – full-service and low-cost carriers, hotels, airports, corporate travel managers and payments, as well as travel sellers, including business travel agents, leisure travel agents and online travel agents.

Methodology

Amadeus commissioned an online survey with an independent market research agency, Opinium, which concluded in Q4 2023.

Over the course of the research, 1,253 of the leading travel technology decision-makers were surveyed online across the world. 

Their expertise spans the airline (full service and low-cost carriers), travel distribution (online travel agencies, business travel agencies and leisure travel agencies) as well as hotels, airports, corporate travel management and travel payment sectors.

The insights are global in nature, with senior decision makers from the UK, France, Germany, UAE, USA, Mexico, Brazil, India, China and Korea represented.