New study reveals sector plans to increase investment in technology by 16% in the coming twelve months
Personalization viewed as a key driver of commercial value for hoteliers, as 85% of hoteliers feel it could help deliver in excess of 5% in incremental revenue
The new report, Travel Technology Investment Trends 2024, published today from Amadeus finds hoteliers expect to increase their investment in technology by an average of 16% over the coming 12 months, with one in five planning to invest over 20% more than they did last year.
The findings are the result of a survey of global senior hospitality leaders representing a diverse range of properties and management groups. Several key themes emerged from the research, including a primary focus of investment on ‘improving operational efficiencies during times of high occupancy’ (43%).
Using tech to diversify offerings and enhance the guest experience
The study reveals predictions as leaders consider the criticality of offering guest personalization. Expectations are high across the sector, particularly at the property level, as hoteliers feel it will enhance their offering and better meet guest expectations. 85% of respondents felt that personalization could help them deliver in excess of 5% in incremental revenue.
In general, respondents said they are keen to find ways to broaden and improve the services they offer to guests, including providing:
- Specific room attributes 43 %
- Upselling of room types and value-add amenities 40 %
- Personalized onsite experiences 39 %
- Personalized offers for returning guests 34 %
- Last minute promotions on rooms 34 %
- Experiential stays 33 %
Virtually all hoteliers surveyed (98%) recognize that Artificial Intelligence (AI) has the potential to bring significant benefits to their businesses. Nearly half of all those surveyed (49%) said they hope AI will be able to help them to identify and offer upsell opportunities to travelers at all stages of the booking process. They are also looking to AI to help manage data effectively and generate automatic content for their websites, suggesting that AI is being considered across a wide range of hotel functions.
Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus comments: “The level of investment planned across the sector reveals the strong desire for evolution and the important role technology will play in helping to achieve the ambitions of today’s hospitality leaders. As well as increasing revenue and driving efficiencies, hoteliers strive to be able to deliver the end-to-end experiences guests expect. The ability to create personalized itineraries is the ultimate goal for the hospitality sector, and we are proud to be at the forefront of the technology development that will allow hoteliers to offer truly unique and tailored experiences to their guests.”
AI and machine learning are top priorities with extended reality and robots coming into focus in the next five years
When asked about the top priority technologies for their businesses for this year, hotel technology leaders prioritized AI and machine learning alongside digital payments and increasing data analytics capabilities. However, that picture shifts slightly in five years towards the use of extended reality, chatbots and robots.
| 2024 | 2029 | |
| 1 | AI and machine learning | Machine learning |
| 2 | Digital payments | Extended reality |
| 3 | Data analytics | AI (e.g. chatbots) |
| 4 | Cloud computing | Digital payments |
| 5 | Self-service technology | Robotic process automation |
Top technologies expected to have the biggest impact on the industry in the next one and five years
About the research
Travel Technology Investment Trends 2024 is designed to take a unique, panoramic view across the entire travel ecosystem, with findings presented in a series of eight reports – addressing sectors including hospitality, aviation, travel sellers and payments. The work investigates the developments that will define the sector over the coming year and beyond.
This Travel Technology Investment Trends report was informed by an online survey of senior technology decision makers from 100 hospitality brands, properties, and hotel groups during December 2023. Of the respondents to the survey, 92% are the final decision-makers on IT spend for their hotel or group. Some 18% of the cohort represent a property, 34% a brand and 48% a hotel group or management company, offering insight into each layer of the hospitality sector. Respondents were drawn from the UK, France, Germany, UAE, USA, Mexico, Brazil, India, China, and South Korea to provide a globally representative sample of the industry. The study includes findings about personalization, AI technology and business intelligence tools.
