IDC FutureScape: Worldwide Hospitality, Dining, and Travel 2024 Predictions

Description

This IDC study discusses our top 10 predictions for worldwide hospitality, dining, and travel for 2024."Hospitality, dining, and travel has experienced rapid return of demand while grappling with unforeseen - and some seen before - challenges," says Dorothy Creamer, research manager, Hospitality and Travel Digital Strategies at IDC. "From the ashes of the COVID-19 pandemic, travel and hospitality has risen phoenix-like with a blaze of digital transformation and now faces the challenge of differentiating while continuing to mine value from technology investments and steadily re-architecting legacy systems in order to scale the next-generation of advancements."

Product Code: US49910823

IDC FutureScape Figure

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers
Predictions: Impact on Technology Buyers
- Prediction 1: By 2025, a Third of Hospitality, Dining, and Travel Operators Will Implement GenAI-Informed Chatbots for Guest Service Interactions, Improving First Touch Resolution by 50% and CSAT Scores by 35%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 2: By 2028, One-Fourth of Midtier Hospitality and Travel Brands Will Use GenAI to Curate and Compare Enterprise Strategies and Messaging, Decreasing Implementation Times of Revenue-Driving Projects by 30%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 3: By 2026, 65% of Hospitality/Travel Brands Will Add Location-Based Awareness to Unified Customer Data Strategies Driving Loyalty and Lifetime Value, Increasing Offer/Marketing Effectiveness by 35%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 4: By 2028, 55% of the Top-Tier Enterprise Hospitality, Dining, and Travel Brands Will Apply Predictive Recommendations to Digital Channels, Increasing Revenue by 17% and Average Ticket Sizes by 25%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 5: By 2027, 55% of Hospitality and Travel Organizations Will Invest in AI and IoT-Powered Devices to Identify and Reduce Waste by 20% and Improve Planning and Processes, Reducing Costs by 15%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 6: By 2029, 45% of Hospitality, Dining, and Travel Organizations Will Earmark 25% of IT Budgets for Automation of Services and Processes to Increase Efficiency by 85% and Accuracy by 75%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 7: Driven by Increased Digital Demands and Mobile Workforce, by 2026, 60% of Hospitality and Travel Will Increase Network Investment, Integrating 5G with Wi-Fi to Improve Employee and Guest Connectivity
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 8: By 2027, 35% of Hospitality and Travel Organizations Will Test or Invest in Technologies to Accept and Verify Digital Identity of Guests, Increasing Throughput Speed by 45%
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 9: By 2026, 40% of Hospitality and Travel Brands Will Increase IT Spend on Security and Risk Technologies, with 50% Investing in Predictive AI to Reduce Threats and Limit the Scope of Attacks
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 10: By 2025, 95% of Hospitality and Travel Brands Will Accept Multiple Payments and Offer BNPL and Subscription Options, Increasing Investment in Unified Payments to Reduce Costs and Drive Revenue
  - Associated Drivers
  - IT Impact
  - Guidance

Advice for Technology Buyers

External Drivers: Detail

AI Everywhere - Generative AI Takes the Spotlight
The Drive to Automate - Maximizing Efficiency and New Opportunities
Cybersecurity and Risk - Building Resilience Against Multiplying Threats
The Digital Business Imperative - Competitiveness and Outcomes
Dynamic Work and Skills Requirements - New Work Mode Era
Operationalization of ESG - Measuring and Implementing Sustainability

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