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01Investment Plans
According to Figures from the United Nations World Tourism Organization (UNWTO) World Tourism Barometer, international tourism ended 2023 at 88% of pre-pandemic levels, with an estimated 1.3 billion international arrivals. The unleashing of remaining pent-up demand, increased air connectivity, and a stronger recovery of Asian markets and destinations are expected to underpin a full recovery by the end of 2024.
UNWTO Secretary General, Zurab Pololikashvili, said: “The rebound is already having a significant impact on economies, jobs, growth and opportunities for communities everywhere. These numbers also recall the critical task of progressing sustainability and inclusion in tourism development.”
Against a backdrop of accelerating global recovery, travel expectations continue to evolve. Travelers today expect end-to-end, personalized experiences and simple journeys which deliver value, every time.
Online Travel Agencies across the world are planning to spend more on technology
The sector is responding, with 86% of Online Travel Agencies planning ‘at least’ moderate technology investment in their businesses over the next year.
0%
‘conservative’ in their investment plans
0%
planning ‘at least’
moderate investment
Just 14% are conservative when it comes to overall investment in the business. There are differences among markets, with Online Travel Agencies particularly bullish in the United States and Asia, with 29% and 28% of organizations in these countries planning ‘aggressive investment’.
Respondents told researchers technology is a key area of investment. Some 94% of Online Travel Agencies will spend ‘the same or more’ on technology over the coming twelve months as they did in the previous twelve.
At the same time, a significant 63% will spend ‘more’ on technology than the prior 12 months, with higher proportions of Online Travel Agencies in LATAM, North America and Asia planning to increase investment in technology.
On average across the world, Online Travel Agencies plan to increase investment in technology by a significant 13% in the coming 12 months.
Improved user experience drives technology investment
Notably, cost-reduction was cited as a driver by only 29% of respondents, by far the lowest response option. This suggests Online Travel Agencies view travel demand as resilient and are looking to utilize technology investments to improve services on offer to travelers, rather than driving cost reduction.
Amadeus research found a wide variety of objectives are driving this investment in technology:
Improve the user experience
Innovation
Sustainability
Margin improvement
Increase revenue
“These findings suggest technology investments are viewed as a necessity to differentiate and compete.”
Sam Abdou
EVP, Global OTAs, IT & Distribution Sales
Amadeus
Better technology is needed to help travelers make sustainable choices
Online Travel Agencies are working to overcome several technology challenges, with ambitions clearly mirrored in priority investment areas.
Having ‘access to the right information to help travelers make sustainable choices’ was the most selected response from the survey (selected by 40% of those questioned), with Online Travel Agencies hoping to respond to demand from travelers to reduce the impact of travel on the environment.
While this could include investment in solutions offering carbon offsets, many travelers today aim to visit local communities when on a trip or strive to avoid crowded destinations altogether. Online Travel Agencies have taken note, and are looking to invest to drive an improved experience in this area.
Servicing traveler needs was also a top concern, with 35% of Online Travel Agencies looking to invest to ‘provide a full end-to-end trip to customers,’ with a similar number looking for options to ‘better serve the traveler’. ‘Driving cost-efficient traffic to our site’ (35%) and ‘improving productivity’ (33%) were also areas of interest.
At the other end of the spectrum, ‘merchandising’ (21%) and ‘preparing for NDC’ (25%) were not viewed as such significant challenges. With these areas also not highlighted as priority investment areas, Online Travel Agencies may consider they have overcome some of the challenges initially faced.
Online Travel Agencies’ top technology concerns for 2024:
%
access to the right information to help travelers make sustainable choices
%
provide a full end-to-end trip to customers
%
better serve the traveler
%
driving cost-efficient traffic to our site
%
improving productivity
