10 key technology trends in the travel and hospitality industry

10 key technology trends in the travel and hospitality industry

Technology is dominating every industry. Organizations around the world are implementing new technological trends to increase their profits, and this includes the travel and hospitality industry. 

According to Statista, over 54% of travel businesses have bought cloud-computing solutions and 43% travel brands agree that digital transformation is necessary for the business. 

While they're trending, travel technologies can also help you improve your customer experience, increase satisfaction rate, improve brand visibility, and build credibility. Therefore, airlines, hotels, tour agencies, restaurants, cruise companies, and other such hospitality businesses are keeping up with the travel software development trends.

And so should you, as part of the travel sector.

If you're not already aware of what's going on with travel tech trends and why you should join them, we got you covered with the top 10 trends in the current tourism industry!

Travel and hospitality industry today

The travel and hotel industry has thrived multiple folds within the last few decades. Both travel providers and travel companies ensure making traveling fun, cost-effective, simple, and safe. One of the reasons for travel innovations becoming mainstream is the ever-growing demand in the sector. Here are some figures that would blow you away:

  • The current travel and hospitality market size is over $3953 billion and rapidly increasing. 
  • It is expected that international visitor’s expenditure will increase by 118 billion in 2023 according to US Travel Association. 
  • Most importantly, the industry provides 1 of 8 jobs in the United States. 

Since demand for both travel and technology is increasing, the future of travel industry is bound to be more advanced than now and you can expect some futuristic experiences.

How do technological trends affect the travel industry?

Technology transformation and trends are helping travel providers, hospitality companies, and tourists to connect within a consolidated ecosystem to serve everyone better.

This means utilizing technological software development services and more advanced tech for travel. These transformations and key trends are useful in every aspect of tourism. These range from booking customers to managing hotel accommodations, airline tickets, car rentals, and other tourism-related activities.

Moreover, technology trends in hospitality industry have also made intelligent automation possible. Innovation in travel and hospitality have made marketing and planning faster for agencies and individual travelers, leading to exceptional guest experiences and data-driven decisions.

Businesses in the hospitality sector and agencies can now automate back-office tasks, payments, and bookings for agencies using online travel booking software. Besides that, technological trends in the industry have benefited this sector differently.

For instance:

  • Technology has streamlined the processes required for enacting and organizing travel plans with reduced human error. 
  • People worldwide can now connect with each other through customized software/ mobile app on their mobile devices.
  • Businesses and travelers can now communicate, accommodate, and plan together a wide range of different services in one place. 
technology trends in hospitality

What technological innovations are most important for the travel industry?

Quick advancements and changing trends in travel and technology have made it necessary for organizations to update their systems with upgrading trends. Companies prefer to have customized software and innovative technologies developed for their businesses. It not only allows them to communicate but also maintain a healthy environment in their workforce.

Here's a snapshot of the new travel technology innovations helping the travel and hospitality industry grow at a faster pace:

  • Data analytics and AI development services are used for quick direct bookings, mobile check-ins, finding deals, analyzing consumer behavior, and better customer service.
  • Custom travel website development services allows the companies to have specialized software designed for their businesses that makes it easier to engage with clients and customers, contributing to more customer loyalty, personalized offers, and convenient guest experience. 
  • Automation and Robotics in the hospitality tech are for serving, cleaning, efficient task automation, and managing repetitive tasks.  
  • Virtual Reality to improve customer experience in room and in-flight. Like 360° room/ flight tours. 

These are just a few examples of how adopting the latest trends, including a cloud-based solution for travel agencies, can significantly enhance the efficiency and customer experience in the travel industry. Businesses need to stay abreast of these trends to remain competitive in the evolving landscape.

Top 10 travel technology trends in 2023

We all know that technology for travel is constantly growing, evolving, and changing. Whether you’re a traveler, travel agent, or operator, tourism technology trends are important to consider.

With a range of other benefits, technology in the industry leads to reduced operating costs, smart inventory management, property management systems, improved efficiency, and an unparalleled convenient experience. Eventually, opting for the latest high-tech trends also means healthier cash flow and better margins. Therefore, it's better to learn and implement them earlier in the race!

Now that we're done with all the facts, reasons, and solutions you must know about, let's dive right into the goldmine of trends for this year!

1. Mobile Technology 

Smartphones have become a vital part of everyone’s life. Therefore, it's one of the key travel technology trends. Mobile phones are not just communication devices anymore. These have evolved into maps, planners, restaurant locators, personal guides, etc. Therefore, mobile technology has become an important part of our everyday life.

However, businesses should integrate mobile technology in multiple ways. For instance:

  • Intuitive mobile applications

Many businesses operating in the industry are developing and enhancing their mobile applications for travelers. For example, airlines now allow travelers to book flights, access boarding passes, check flight status, and more through these apps.

A mobile application can make it more convenient and faster for your customers to get your services. So, investing in mobile app development services is necessary for the tourism business. 

  • Virtual Queues 

Virtual queues is another one of the amazing mobile technology trends in tourism. This trend helps travelers to join queues virtually. The customers don’t need to wait for hours in physical queues. While visitors can scan a QR code through smartphones and enter details of their group. They will receive a text notification when it’s their turn to avail of the service. 

  • Live Chat or in-app Chat 

Having an in-app chat feature has become imperative for businesses in every industry. This live chat feature helps your consumers to connect with business employees in real-time. The live chat feature facilitates more than just the consumers with quick assistance. It also helps businesses to improve their customer engagement significantly. 

  • Mobile Friendly software 

Recently, it has become essential for organizations to manage their workflow and ensure that the entire team is working efficiently. Therefore, hospitality businesses prefer to have customized software developed for the needs of their team, utilizing travel API integration to standardize how they request and receive data in a structured format. It allows the management team to keep a check on all employees and ensure that all tasks are done proficiently to reduce errors and increase customer satisfaction rate.

2. Robots

In the past, it was predicted about the entry of robots in the tourism industry. However, it wasn’t the way that people could have expected.

The very first robot in the travel industry was bartenders. Just like the robots work in manufacturing and assembly lines worldwide, robots in hospitality have been programmed to do things repeatedly, i.e., making drinks.

However, over time, robots have grown in number and purpose. These are becoming one of those that have become more than entertainment value only. 

Currently, robots have been helping in various things, such as:

  • Disinfecting airports 
  • Cleaning and disinfecting aircraft 
  • Using UV lighting technology even to disinfect hotel rooms. 

After covid pandemic, airports and hotels have employed robots to enhance disinfection and sanitization measures. This practice was started to protect against human coronavirus exposure.

Moreover, robots in the hospitality industry are currently used to improve cleanliness services. However, these differ from those hired to clean hotels, airports, and more. Robots work alongside human resources to remove viruses and bacteria left behind even after cleaning.

It is expected that robots will grow even more. Moreover, their role in the industry will be more than sanitization and bartending. For example, concierge robots taking over the job of answering front-desk queries in real time.

3. Contactless payments

Contactless payments have become another leading technology. People now stay away from banknotes and physical tokens. Contactless payment options, such as Apple Pay, Google Pay, etc., have gained immense popularity.

The user’s device communicates with the payment system through contactless payment technology through RFID technology.

Moreover, contactless payments not only add more convenience to their consumers. This technology trend also allows customers to track the behavior of their consumers. Consequently, businesses can better optimize their operations in the future. 

QR code payments are taking this trend further in 2023. By scanning a QR code, guests can easily complete transactions using a mobile payment app or their credit card information stored on their device. QR contactless payments are also faster than traditional payment methods, reducing transaction times and improving operational efficiency for hotels.

Overall, contactless payment is a trend gaining popularity in different sectors of the industry as hotels seek to offer a more convenient, secure, and hygienic payment option for their guests.

technology trends in hospitality industry

4. Internet of Things (IoT)

Another one of the emerging hospitality technology trends is the Internet of Things. The IoT refers to physical devices’ networks equipped with sensors to connect and exchange data with systems over the internet.

Based on your business, things can range from industrial machinery to devices for everyday use. Hospitality and travel businesses around the global and quickly adapting and installing new smart gadgets that will enhance their customer’s experience.

Moreover, business owners are interested in customized software developed to interact with such smart devices. It enhances security, improve management and offers a better user experience.

Some airports have already adopted Internet of Things technology. These include:

  • Add tags on passengers' bags to alert them about the current whereabouts of their luggage. 
  • These tags also help the passengers to get a notification when their luggage arrives at the carousel. 

Besides that, hotels have also started adopting this technology trend. They also have enabled voice control devices to control things such as air conditioning in their rooms. Moreover, hotel guests can now conveniently control different things using an in-room tablet. For example:

  • Controlling their curtains 
  • Switching on and off their lighting
  • Changing the atmosphere of the room 
  • Controlling music 

Overall, this technology trend can let customers personalize their experience to a new level.

5. Augmented Reality (AR) and Virtual Reality (VR)

Virtual Reality and Augmented reality in the travel and hospitality industry have come into the spotlight again. This is truer after the rebranding of Facebook as a metaverse. Metaverse is a conceptual virtual universe that will replace established social media networks.

Although the trend seems a little more exciting at times, people still wonder if virtual reality and augmented reality are the technological trends in tourism.

Virtual reality in tourism will let people explore new locations without leaving the comfort of their homes. Moreover, virtual tours have become a new norm. This trend allows people to get a glimpse of any exotic place’s before visiting that in person. Hotels also allow visitors to have a virtual room tour before finalizing their booking.

These trends will shape the customer experience in the future for sure. Virtual tours will help businesses to manage their customers' expectations better. 

6. Artificial Intelligence (AI)

AI in tourism is one of the most sensible technology investments. For example, AI chatbots allow companies to answer their potential customers' queries 24/7. Large language models can generate high-quality content for marketing campaigns, social media posts, and product descriptions. So, investing in this technology can also benefit your business.

Therefore, many travel business owners have customer communication software developed for their organization. These chatbots will resolve all issues of customers and answer their various questions. It helps build customer’s trust and increase credibility of company.

Moreover, AI can also allow businesses to sort through data continuously. It will also allow businesses to learn from their interactions with customers.

7. Recognition technology

The recognition technology trend is particularly interesting here because it removes purchase friction. Moreover, recognition technology can also make customer interactions seamless with businesses.

This technology has multiple forms as per the industry. These include: 

Some hotels and airports already use this technology to allow semi-contactless boarding and check-outs. However, the technology trend seems to advance in the future.

8. Big Data

Big data has become a fact of life in the modern tourism and hospitality industry and one of most essential technology trends in hospitality. Almost all successful businesses globally employ their independent data collection technologies. One of the biggest benefits of using big data is improved personalization.

Companies are using their data to make certain adjustments and offerings to attract more prospects. Another key use of big data is analyzing business performance. Moreover, companies also rely on data to improve their operations and boost business performance.

Using big data companies are getting personalized and customized software developed according to their specific needs. It allows them to handle customers more efficiently. Software developed for managing data of customers allows to keep all information under check. Thus, hospitality organizations can offer better services and hospitality to clients.

For instance, hotels use big data to analyze past trends and for better revenue management solutions. They analyze historic data to make their promotional and pricing strategies more optimized. 

trends in the travel industry

9. Travel and Hospitality Software  

Organizations do not rely on one app fits all methodology anymore. Therefore, they prefer to have specialized software designed for the needs and demands of their business. It helps to attract target audience, increase business growth, offers client’s data in real-time and quick access to information.

Most travel organizations are moving towards customers software because it reduce their operation cost and makes maintenance of business easier. Moreover, it allows to give tourists a better experience.  

10. Cybersecurity

Cybersecurity is also a major technological area to focus on for businesses playing travel management roles. Companies at present are at a higher risk of cyberattacks. Moreover, businesses are also highly vulnerable to data breaches. Travel-related businesses are no exception here.

Therefore, relevant businesses also need to invest in cybersecurity training and solutions. Moreover, adopting this technology trend is important to keep up with data regulation laws.

Future of travel & hospitality technology

Future travel technology is all about interactive, lifelike virtual destination tours, space travels, robots, and more. These technological advancements will shape how, where, and why we travel. Although some technological advancements are currently shaping the new ways, the future of tourism will be quite advanced and different from what we experience today.

A variety of technological trends (some of those we have mentioned above) will be utilized more robustly by most of the people. This is where an early start can help you lead the travel scene and build your business with scale in mind.


Technology trends in the travel industry can help businesses to streamline and automate their processes. These solutions can also help businesses to cut costs, reduce staffing, and increase income. Moreover, trends in tourism and hospitality industry can lead to better financial results.

With the emergence of trends in travel and tourism, new technologies have been established. To implement these trends and technologies in real time for your travel business you need the right dedicated team at your service.

COAX Software is one of the leading travel software development company, with a team of pioneers and a range of custom services to help you stay connected with your users' changing needs, customer expectations, and industry trends.

So, are you ready to benefit from the latest technology trends in travel and hospitality industry?

Get in touch with our experts for a no-obligation consultation to build great things together!

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