IDC FutureScape: Worldwide Hospitality, Dining, and Travel 2025 Predictions
This IDC study discusses the top 10 predictions for worldwide hospitality, dining, and travel for 2025."The hospitality, dining, and travel industries are on the cusp of great change — and that will come at the expense of many long-held business processes and technology architecture," says Dorothy Creamer, senior research manager, Hospitality and Travel Digital Strategies at IDC. "These changes are mainly in the form of addressing how to blend the physical and digital worlds through automation while re-architecting legacy systems to adopt and scale the next generation of intelligent advancements."
IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2028, Predictive AI Will Account for 25% of IT Budgets for Hospitality and Travel Organizations, Driven by Needs in Security, Revenue, and Efficiency Planning
Associated Drivers
IT Impact
Guidance
Prediction 2: Driven by Increasing Demand for Travel and Hospitality to Adopt Digital Identity Strategies, Web3 Investment Will Increase 25% by 2029, Enabling Travelers to Store Credentials on a Decentralized Network
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2027, 35% of Global Enterprise Hospitality and Travel Brands Will Have Added Biometric Check-in/Payments Options or Invested in Infrastructure to Support the Technology
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2027, 50% of Interactive Signage in Hospitality and Travel Will Utilize Headless Content Management Capabilities to Create Frictionless Experiences for Guests Between Signage, Websites, and Mobile
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2029, 35% of QSR Brands Will Have Allocated 15% of Overall IoT Budgets to Explore or Expand Drone Delivery, Reducing CO2 Footprint by 10% and Increasing CSAT by 25%
Associated Drivers
IT Impact
Guidance
Prediction 6: Driven by Impending Regulations and Compliance Issues, by 2029, Sustainability Goals Will Be a KPI for 75% of Hospitality and Travel AI Investments
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2025, 65% of Interactions with Hospitality and Travel Brands Will Be Handled Through Voice AI-Powered Chatbots, Accounting for 50% of All GenAI Investments, Leading to 35% Fewer Issue Escalations
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2026, 45% of Employee and Guest-Facing Mobile Applications Will Have Embedded Intuitive AI Elements, Driving Efficiency for Operations and Seeing Increased Employee Retention and Guest Loyalty
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2028, 25% of Martech Budgets in Hospitality and Travel Will Be Allocated to Add Demand-Based Pricing, Providing Better Visibility to Inventory and Increasing Sales by 10% and Revenue by 6%
Associated Drivers
IT Impact
Guidance
Prediction 10: Driven by Need for Data Visibility and Security, by 2027, 95% of Hospitality and Travel Brands' Enterprise Systems Will Be Cloud Based, Seeing a Two-Fold Increase in Data Loss Prevention Investments
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
AI-Driven Business Models — Moving from AI Experimentation to Monetization
The Drive to Automate — Toward a Data-Driven Future
Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management
AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today
Expanding Digital Security Frontiers — Fortification Against Multiplying Threats
Customer Experience Squared — Consumer and Citizen Expectations for Digital Services
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