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Technology

Amadeus says generative AI is key to travel industry growth

AI faces
AI faces
AI faces – Photo by Steve Johnson on Unsplash

A recent Amadeus report has revealed that generative AI remains a top priority for the travel sector, with 46% of experts citing it as their main focus ahead of 2025.

This finding emerges from a survey of just over 300 travel industry professionals worldwide. The technology is expected to transform the industry, with Asia-Pacific currently leading the charge, where 61% of respondents identified generative AI as a key priority.

The report, “Navigating the future: How generative artificial intelligence is transforming the travel industry” also highlights other technologies critical to the sector’s growth. These include data management (38%), cloud architecture (36%), non-generative AI IT infrastructure (34%), and biometric technology (23%). As the travel industry continues to evolve, these technologies will play vital roles in shaping its future.

Globally, travel technology leaders acknowledge generative AI’s significant presence in the industry, with 51% confirming its current impact and 36% anticipating its emergence within the next year. Only 2% believe it will take three or more years for generative AI to make a significant impact. These findings underscore the technology’s potential to revolutionize the travel sector, driving innovation and growth in the years to come.

The travel industry’s enthusiasm for generative AI remains strong, with 41% of companies having the necessary budget and resources to implement the technology. Moreover, 87% are open to collaborating with third-party vendors to develop generative AI-powered applications. This willingness to invest and partner underscores the industry’s commitment to harnessing generative AI’s potential.

However, all of this comes with its own set of challenges. Industry leaders cite data security (35%), lack of generative AI expertise and training (34%), and inadequate technological infrastructure (33%) as key obstacles.

In addition, concerns around return on investment (30%) and difficulty in connecting with partners or vendors (29%) are delaying the rollout. To overcome these hurdles, companies must recruit and train experts, secure data, and demonstrate the value of generative AI investments to senior leaders.

Despite these challenges, generative AI is already being deployed in various travel sectors. Top applications include digital assistance during booking (53%), activity and venue recommendations (48%), content generation (47%), and enhancing customer service (45%). Successful deployment is measured by return on investment, customer satisfaction, efficiency improvements, performance metrics, and key performance indicator increases.

According to Sylvain Roy, Chief Technology Officer of Amadeus, generative AI “is a technology that has the potential to transform every facet of the travel ecosystem, significantly enhancing the passenger experience at every step of the journey.”

He did, however acknowledge concerns around investment returns and talent shortages, saying, β€œIt is crucial that we use this new technology responsibly, including ensuring data security, privacy and content reliability. It is time for generative AI to prove it can live up to the hype.”

As the industry moves forward, addressing these challenges will be critical to unlocking generative AI’sΒ fullΒ potential.

For a comprehensive breakdown of how AI is transforming travel and tourism, and how or why you should get on board, read our six part series here:

  1. Should we be threatened by the rise of AI travel agents?
  2. Boosting hotel revenue through AI in the Middle East
  3. AI meets customer service: Tech with a personal touch
  4. AI and aviation: Airlines of the future
  5. How travel operators can leverage AI for customer journey excellence
  6. AI in travel: Top five challenges and solutions

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