The air travel industry is witnessing a significant surge in investment as revealed by the latest research conducted by Amadeus, titled Travel Technology Investment Trends.
This latest study offers insights into investment intentions and technology priorities across various sectors within the global travel ecosystem.
We look into the key findings and implications for the air travel industry.
Travel Technology Investment Trends
Amadeus’ research sheds light on the robust appetite for investment prevailing in the travel sector in 2024.
An overwhelming 91% of surveyed travel companies express anticipation for moderate to aggressive increases in investment within their organizations for the current year.
This comprehensive research, spanning eight distinct sectors across ten markets, marks a pioneering effort in benchmarking investment intentions and technological priorities.
By sector, the average increase in spend forecasted for 2024 are as follows:
Key Findings from the Research
The research underscores a positive outlook for investment in travel technology. Over two-thirds (67%) of senior decision-makers foresee increased investment specifically in technology in 2024 compared to the previous year.
Noteworthy priorities include smarter retailing, personalization, and enhancing digital efficiency across the industry.
Technology Investment Expectations
Various sectors within the travel industry exhibit distinct technology investment expectations. Full-service airlines, for instance, are optimistic about an 18% increase in revenue.
Similarly, airports are gearing up to implement biometrics across the complete airport experience, with 60% expecting rollout within five years.
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% 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% 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% of respondents from the hospitality sector anticipate that personalization could help them to deliver more than 5% growth in incremental revenue.
- NDC is the top technology for implementation by leisure travel agents over the next 12 months – cited by 40% of the agents questioned.
- A third of corporate travel managers said their organizations intend to digitize the complete end-to-end expense management process over the coming 12 months.
- A third of travel payments leaders confirmed their organizations are planning to better manage global payments flows by implementing payments orchestration in the next 12 months.
Specific Technology Implementations
Leisure travel agents prioritize the implementation of New Distribution Capability (NDC), with 40% citing it as a top technology for adoption in the next 12 months.
Corporate travel managers and travel payments leaders also outline plans for digitization and enhanced management processes. This is indicative of a collective drive towards technological advancement.
Insights from Industry Leaders
Decius Valmorbida, President of Travel at Amadeus, emphasizes the significance of digital transformation in enhancing the traveler experience across the ecosystem.
“Existing technologies, such as biometrics, are already helping to make trips more contextualized and relevant,” he explained.
“At the same time, the emergence of Generative AI promises to increase the pace of change still further.”
Francisco Pérez-Lozao Rüter, President of Hospitality at Amadeus, echoes the sentiment. He highlights the transformative potential of technology in fostering growth and customer satisfaction.
“Travel providers can see huge potential for a better customer experience as well as significant growth and control if they get their investment strategies right now,” he said.
Conclusion
The findings from Amadeus’ Travel Technology Investment Trends underline a collective drive. The move is clearly towards technological innovation and investment across the travel industry.
Machine learning emerges as the most crucial technology. This applies for businesses in both the present and foreseeable future, according to industry leaders.
Data analytics and cloud technology also garner significant attention, indicating a concerted effort towards leveraging advanced technologies for competitive advantage.
Air travel industry stakeholders are clearly embracing digital transformation and prioritizing technology adoption. This sets the stage for significant enhancements in the traveler experience and industry growth.
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