Generative AI remains a central focus for the travel technology sector looking ahead to 2025, but challenges are emerging as initial optimism begins to dissipate, according to a new report released by Amadeus.
Amadeus commissioned Mercury Analytics to study the role – both current and future – of generative AI in the travel sector.
A total of 306 senior technology decision-makers within the travel industry with knowledge of generative AI were surveyed in the third quarter of 2024.
They were based in 10 markets — Canada, Italy, the United Kingdom, France, Germany, India, Australia, China, Japan and the United States.
Among respondents, 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 (51%) of travel technology leaders argue that 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 in the travel sector where they are.
Further, 41% of travel companies say their organisation 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.
While support for the roll-out of generative AI in the travel technology sector remains undimmed, the study 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%); and 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.
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%).
For respondents, a successful deployment of generative AI entails, 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, CTO of Amadeus, said that 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,” said Roy. “It is time for Generative AI to prove it can live up to the hype.”