Amadeus study reveals Generative AI is top priority for travel sector – but emerging challenges need to be addressed
Digital
assistants, tailored recommendations, and content generation seen as top use
cases
Challenges
emerge around talent shortages, return on investment, and data security
APAC,
21st October 2024: Generative Artificial
Intelligence (Generative AI) remains a central focus for the travel sector
looking ahead to 2025 – but challenges are emerging as initial optimism begins
to dissipate.
That is according to a new
report released today by Amadeus – ‘Navigating
the Future: How Generative Artificial Intelligence is transforming the travel
industry’ – which surveyed experts in the field from across the travel
ecosystem.
Generative
AI is a top priority with budget and resources on the agenda
Among the 300+ industry
leaders questioned, Generative AI was cited as a ‘top priority’ for the coming year by 46% – ahead of any other
technology. This figure rose to 61% in Asia Pacific, suggesting the region may
be ready to take the lead in this transformative technology.
Other technologies cited as a
top priority for 2025 included data management (38%), cloud architecture (36%),
non-generative AI IT infrastructure (34%), and biometric technology (23%).
Globally, over half of travel technology leaders (51%) argue Generative AI
already has a ‘significant presence’ in the travel industry in their country.
A further 36% expect this presence to emerge over the next year, while 11%
expect the process to take one-to-two years. Just 2% of travel technology
leaders think it will take three or more years for Generative AI to have a
significant presence on the travel sector where they are.
Today,
41% of travel companies say their organization has the budget and resources in
place to implement Generative AI, while 87% are open to
working with a third-party vendor to develop Generative AI-powered
applications.
Data, talent and cost seen as challenges in
deployment of Generative AI
While support for the roll-out
of Generative AI in the travel technology sector remains undimmed, “Navigating the Future” finds a number
of challenges are emerging.
When
asked what, if anything, was slowing the roll-out of the technology,
industry leaders said:
· Data
security - 35%
· Lack
of Generative AI expertise and training - 34%
· Data
quality and inadequate technological infrastructure - 33%
· ROI
concerns, lack of use cases, or difficulty in estimating value - 30%
· Difficulty
in connecting with partners or vendors - 29%
Today, Generative AI
specialists are grappling to recruit experts and train existing workforces to
bridge a skills gap, while working to secure data and convince senior leaders
of the value of Generative AI investments.
How is Generative AI being used?
While the process of
experimentation continues with the deployment of Generative AI, several use cases have emerged in the
travel technology sector.
These are led by digital
assistance for travelers during booking (53%) and followed by recommendations
for activities or venues (48%), content generation (47%), helping staff to
better serve customers (45%), and collecting and condensing post-travel feedback
(45%).
What does successful
deployment of Generative AI look like?
“Navigating the Future” respondents were looking for, in ranked
order, return on investment, customer satisfaction, efficiency and productivity
improvements, performance metrics (accuracy, precision and relevance) and
increases in key performance indicators.
Sylvain
Roy, Chief Technology Officer, Amadeus,
said: “At Amadeus, we work to make the experience of travel better for
everyone, everywhere and there is perhaps no better example of this mission
coming to life right now than through the deployment of Generative AI. This is
a technology that has the potential to transform every facet of what we do
across the travel ecosystem, significantly enhancing the passenger experience
at every step of the journey.
While technology will be a key
focus for the next year, questions are rightly being asked whether Generative
AI will deliver sufficient returns on investment, while talent shortages are
also coming under the spotlight.
It is crucial that we use this
new technology responsibly, ensuring data security, privacy, and content
reliability. It is time for Generative AI to prove it can live up to the hype.”
You
can download the full research here: https://amadeus.com/en/resources/research/generative-ai-travel-industry
Methodology
Amadeus commissioned Mercury
Analytics, a market research organization which harnesses state-of-the-art
techniques and AI, to study the role – both current and future – of Generative
AI in the travel sector.
A total of 306 senior
technology decisionmakers within the travel industry with knowledge of
Generative AI were questioned in the third quarter of 2024.
They were based in ten markets: Canada, Italy, United Kingdom, France, Germany, India, Australia, China, Japan and the United States.
Notes to the editors:
About
Amadeus
Amadeus
makes the experience of travel better for everyone, everywhere by inspiring
innovation, partnerships and responsibility to people, places and planet.
Our
technology powers the travel and tourism industry. Inspiring more open ways of
working. More connected ways of thinking, centered around the traveler. Our
open platform connects the global travel and hospitality ecosystem. From
startups to big industry players and governments too. Together, we will
redesign the travel of tomorrow.
We are
working to make travel a force for social and environmental good. A collective
responsibility to protect and improve the people and places we visit, ensuring
travel continues to make positive contribution to our world.
We
apply innovation to meet new needs, to solve real challenges. Our truly diverse
global workforce, made up of 150 nationalities, is passionate about travel and
technology.
We are
an IBEX 35 company, listed on the Spanish Stock Exchange under AMS.MC. We have
also been recognized by the Dow Jones Sustainability Index for the last 11
years.
Amadeus.
It’s how travel works better.