Report: 2025 state of AI for travel and airlines

Amperity's inaugural "2025 State of AI for Hotels and Airlines" report indicates growing AI adoption in the sector, primarily in support, sales, and marketing, as companies navigate labor shortages and rising costs. However, significant barriers including high costs, technical hurdles, and fragmented data are impeding broader implementation, particularly in direct customer-facing experiences where the greatest potential for loyalty and revenue generation remains largely untapped.

Analysis

Hotels and airlines are under pressure to deliver personalized experiences amid labor shortages and rising costs. Artificial intelligence (AI) is emerging as a solution—but adoption remains uneven. For the first time, Amperity surveyed 800 industry leaders to understand where AI is gaining traction, where it is falling short and what it means for the future of guest loyalty. The 2025 State of AI for Hotels and Airlines report reveals that adoption is growing, especially in support, sales and marketing. But challenges like high costs, technical hurdles and fragmented data are slowing progress. Most brands have yet to apply AI directly to customer-facing experiences—the area with the greatest potential for loyalty and revenue growth. Read the full report after completing the form below. A recent Amperity survey of 800 hotel and airline industry leaders reveals that while AI adoption is growing, its application remains uneven and primarily focused on back-office functions. Faced with operational pressures from labor shortages and rising costs, companies are increasingly turning to AI for efficiencies in support, sales, and marketing. However, the report highlights significant barriers to broader implementation, including high costs, technical hurdles, and the persistent challenge of fragmented data. Critically, most brands have not yet succeeded in applying AI to direct customer-facing experiences, which is identified as the area with the greatest untapped potential for enhancing guest loyalty and generating meaningful revenue growth. This suggests a wide gap between the strategic desire for AI-driven personalization and the current operational reality, indicating a key execution risk and a source of potential differentiation among competitors in the sector.

Key Decisions for Investors

• Investors should differentiate between travel companies using AI for simple back-office cost savings versus those successfully deploying it in customer-facing applications, as the latter is a stronger indicator of future loyalty and pricing power.
• When evaluating potential investments in the sector, scrutinize a company's stated strategy and capital allocation for overcoming the key AI adoption hurdles of high costs, technical complexity, and data fragmentation.
• Given the implementation challenges for travel operators, consider the 'picks and shovels' play by investigating the technology providers, such as customer data platforms, that are enabling the industry's AI transition.