Hoteliers to increase tech investments by 16% in 2024, focus on personalisation and AI
Amadeus has released its latest report, “Travel Technology Investment Trends 2024,” highlighting significant trends in technology investment within the hospitality sector. The report reveals that hoteliers are planning to increase their technology investments by an average of 16% over the next 12 months, with one in five expecting to boost their investment by more than 20%.
The report is based on a survey conducted in December 2023, involving senior technology decision-makers from 100 hospitality brands, properties, and hotel groups across the UK, France, Germany, UAE, USA, Mexico, Brazil, India, China, and South Korea. These respondents represent various layers of the hospitality sector, including 18% from properties, 34% from brands, and 48% from hotel groups or management companies. Notably, 92% of the respondents are the final decision-makers on IT spending for their organisations.
The “Travel Technology Investment Trends 2024” report is part of a series of eight reports by Amadeus, each addressing different sectors such as hospitality, aviation, travel sellers, and payments. These reports provide a view of the developments expected to shape the travel industry over the coming year and beyond.
The study underscores the critical role of personalisation in driving commercial value. According to the survey, 85% of hoteliers believe that personalization could lead to more than 5% in incremental revenue. Hoteliers are particularly focused on offering specific room attributes (43%), upselling room types and value-added amenities (40%), and providing personalized onsite experiences (39%). Other areas of interest include personalized offers for returning guests (34%), last-minute room promotions (34%), and experiential stays (33%).
Artificial Intelligence (AI) is recognized by nearly all respondents (98%) as having the potential to bring significant benefits to the hospitality industry. Approximately 49% of hoteliers hope AI will help identify and upsell opportunities to travelers during the booking process. AI is also expected to manage data more effectively and generate automatic content for websites, suggesting its application across a wide range of hotel functions.
Currently, AI and machine learning, along with digital payments and data analytics capabilities, are the top priority technologies for hotel technology leaders. However, looking five years ahead, the focus is expected to shift towards extended reality, chatbots, and robots.
Francisco Pérez-Lozao Rüter, President of Hospitality at Amadeus, commented on the findings: “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 personalised 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.”
