Technology Trends in the Travel Industry
Many travel agencies have already reported record sales days in January, making it clear that 2024 is poised to be a big year for travel.
And to keep up with the levels of demand, travel companies have to digitize to survive. According to a report by Statista, the global market for travel technologies was estimated to be worth 8.6 billion U.S. dollars in 2020. By 2026, the size of this industry could increase by approximately 45 percent. There is much growth to come in this market and investing in travel technology has never been more important.
What is Travel Tech?
Travel technology trends cover the most recent advancements in digital and technological solutions within the travel industry. They play a pivotal role in elevating the customer experience, optimizing operational processes, and opening up fresh avenues for customisation and effectiveness in travel planning and administration.
With this in mind, here are Traveltek’s predictions for the top technology trends in Travel for 2024.
Travel Technology Trends
Automation: In recent years, we have certainly seen an increase in RPA (robotic processing automation) and we think this is the year that will propel businesses embracing this trend and not fear robots are here to steal jobs. There are plenty of use cases now, where its clear RPA can efficiently drive process improvements, with less error and a significant ability to scale.
Adoption of AI (artificial intelligence) & ML (machine learning): As with many other industries we expect travel companies and travel agents to look at ways they can embed AI into their day to day lives. Whether this is utilizing simple tools like zoom AI companion summary, ChatGPT to help write destination guides and literature (of course complimenting industry expertise) we’ve seen how these tools can compliment industry expertise. It’s becoming clear that AI is here to stay and this trend will continue to gain momentum. So it’s key that we embrace this and don’t simply ignore it.
Payment Simplification: Travel is a complex beast and currently payment processes are arduous and expensive. Although change has started in this arena, we predict big changes to come in 2024. New players are now challenging the status quo, allowing travel companies to aid payment options and credit options to personalize this for consumers. We expect to see new payment players making their entry in the travel world in 2024.
Online Cruise bookability: As a business synonymous with Cruise, perhaps we are a little biased here, but the data for Cruise is unarguable. 4 million new to Cruise customers need to be enticed by 2025 to fill the new ships entering our waters according to CLIA. This has sparked a demand for online cruise book ability. We predict innovation and new entrants to the cruise world to take advantage of this natural growth.
Buy v Build: Of course it goes without saying that the travel sector was hit hard in recent years and the industry has been hard at work to rebuild since the pandemic. Many companies who are still wrestling with legacy tech are now debating whether to buy or build, across their infrastructure. We predict a growing trend in businesses that choose to connect with each other and focus more on buying in the tech they need rather than building everything in house themselves. This is a trend which will also see a greater collaboration between tech companies in 2024.