Technology is one of the key components of running a hotel successfully. Not only does it help hoteliers to handle all aspects of operation and ensure smooth service, it also helps deliver an enhanced experience for guests. With technology becoming increasingly important for seamless hotel operations, hoteliers are investing in tech more this year than they did last year, a recent study has found.
The primary drivers for increased spending are enhanced data analytics and AI, according to the Travel Technology Investment Trends study carried out by Amadeus and Opinium Research. At the heart of the change is the effective use of data, the study suggested.
There’s a strong appetite for technology investment among hoteliers, the study said. Hoteliers are planning to increase their spending in technology by 16% in the next 12 months, with one in five planning to invest more than 20% than they did in 2023. Some 41% of groups or management companies said they will spend more than 20% in the next 12 months than they did in 2023.
Personalization was a key driver of commercial value for hoteliers, with 85% of the respondents stating that it could help deliver more than 5% in incremental revenue. Hoteliers are especially keen to sell particular room attributes, upsell value added amenities and personalize experiences as their top priorities.
About 94% of IT decision makers are considering investing in technology in 2025, with 70% planning moderate investment ahead of spending seen in 2023. Around 24% of the respondents said they were planning heavy investment aligning with their current business strategy. Branded hotels lead in this metric over independent properties, with 97% planning moderate to aggressive investment. Only 6% of decision makers plan to be conservative in investing in the next 12 months.
Improving the speed of service emerged as the top priority for investing in technology, as hoteliers look to meet the evolving needs of their guests. The delivery of better service during busy times was the primary driver for investing in tech. Around a quarter of the respondents said improving automation of process was a priority, highlighting the difference in objectives across management levels.
Increasing efficiency was the first priority among hoteliers, selected by 52% of the respondents and rising to 71% among brands. Moreover, ‘increasing occupancy,’ selected by 41% of all those questioned, was a top priority for 56% of those representing a property.
Almost all hoteliers (98%) are hopeful about AI and its potential to bring considerable benefits to their businesses. AI can transform the hotel industry at every level – from planning, marketing and operations to guest experience. About 49% of the respondent said they were looking for AI to assist them in identifying and offering upsell opportunities to guests at all stages of the booking process. While 46% of hoteliers were hopeful of AI helping them personalize experiences for guests, 44% hoped AI will manage data within the organization to drive efficiencies. Hoteliers are also looking to AI to help manage data effectively and generate content for their websites.
AI was also an area with the biggest importance in both the near and long-term. Generative AI, such as chatbots, was considered the most important technology by 2025 by 37% of respondents.
“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,” said Francisco Pérez-Lozao Rüter, president, hospitality, Amadeus. “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 tailored experiences to their guests.”
The study was based on individual responses from 100 hospitality leaders from 10 markets – Brazil, China, France, Germany, India, Mexico, South Korea, U.A.E., U.K. and U.S. Respondents were senior managers or above in their organization, with more than nine in 10 being the final decision makers on matters of IT spend.