TL;DR

The global hotel industry is transforming through technology

"Historically, tech investment in hotels has barely exceeded 2% of revenue. But today's tech landscape offers the hospitality industry an unprecedented opportunity to invest and grow." (Floor Bleeker, Accor CTO)

Global hotels are pouring money into hospitality tech. Major chains and independent boutique properties alike are racing to build more efficient operations through technology.

ONDA hotel tech report
ONDA hotel tech report

Several forces are driving this shift. Guest expectations have risen dramatically. Today's travelers want more than a place to sleep. They expect personalized recommendations and elevated service at every touchpoint.

Post-pandemic labor shortages and rising operational costs are also fueling tech adoption. With fewer staff available, hotels are turning to technology to maintain — and even improve — service quality while controlling expenses.

A recent Amadeus survey of hotel decision-makers worldwide reveals just how committed the industry is to tech investment.

94% of global hotel leaders plan to increase tech spending over the next 12 months. Of those, 21% will boost their tech budgets by more than 20% year-over-year.

Source: Amadeus, Travel Technology Investment Trends 2024: Hospitality
Source: Amadeus, Travel Technology Investment Trends 2024: Hospitality

Hotels expect technology to deliver real business value: ▲operational efficiency ▲service differentiation ▲revenue growth ▲occupancy gains ▲better guest experiences ▲cost reduction.

Only 6% of hotel decision-makers say they won't invest in tech — a telling sign of how central technology has become. So where exactly is that money going?

First, hotels are betting big on strategic digital marketing tech. Most properties already spend hundreds of thousands — sometimes millions — annually on digital media campaigns to drive bookings.

They're investing in data-driven marketing tools that target new customers, deliver compelling offers, and increase both discoverability and direct bookings.

Hotels are also pouring resources into distribution channel management technology. As booking channels multiply, hoteliers face three core challenges: ▲improving booking management efficiency (36%) ▲managing too many channels (29%) ▲finding ways to reach new customers (26%).

To solve these issues, they're adopting distribution tech that boosts visibility across more channels and manages inventory intelligently to minimize overbookings.

Source: Amadeus, Travel Technology Investment Trends 2024: Hospitality
Source: Amadeus, Travel Technology Investment Trends 2024: Hospitality

AI is another major investment area. Artificial intelligence is already transforming marketing, room sales, customer service, and data analytics across hotel operations. One in three hotel decision-makers (37%) believe generative AI — think chatbots — will have the biggest impact on the industry over the next year.

Global hospitality is going through a tech transformation. Labor shortages and rising costs aren't just problems — they're catalysts for change. Technology is solving operational headaches while freeing hoteliers to focus on what matters: delivering exceptional guest experiences.

The industry's appetite for tech investment will only grow. As Accor CTO Floor Bleeker notes, hotels have historically been tech-shy. That era is over. Today, they're finding opportunity and growth through innovation.