How investment trends are reshaping travel in 2025
At a glance
- Customer experience investment accelerates: 78% of businesses plan increases in 2025, up from 73% in 2024.
- AI adoption leads in US: 81% of US businesses prioritise AI and generative AI versus 72% of European businesses.
- Sustainability investment broadens: 62% of leaders plan increases in 2025, up from 52% in 2024, at average 10.5% growth.
- Supply chain resilience rising: 62% plan increased investment in 2025 versus 48% in 2024; 74% reducing China reliance.
What the report covers
Capgemini's report examines investment priorities reshaping travel and hospitality in 2025, based on a survey of 2,500 senior executives across 17 countries. It analyses four strategic areas: customer experience, artificial intelligence, sustainability, and supply chains. The report identifies regional investment variations and provides guidance for travel leaders navigating technological, regulatory, and geopolitical shifts.
Key findings
Customer experience remains the top investment priority. According to the report, 78% of businesses plan to increase CX spending in 2025, compared to 73% in 2024. In travel and tourism, where experience is the core product, this acceleration is especially critical. However, large US organisations (over $1 billion revenue) are expected to increase CX investment at only 12.7% in 2025, suggesting some may have already saturated programmes and are shifting funds toward digital transformation.
AI adoption shows geographic divergence. Globally, 74% of business leaders ranked AI and generative AI in their top three technologies for 2025 investment. US organisations lead: 81% prioritise AI versus 72% of European counterparts. Average technology investment as a percentage of 2025 revenue reaches 1.45% in the US, 1.32% in Asia-Pacific, and 1.29% in Europe, potentially widening regional tech-maturity gaps.
Sustainability investment is broadening but at slower rates. The report finds 62% of business leaders will increase sustainability spending in 2025, up from 52% in 2024 and 33% in 2023. However, the average increase is expected to be 10.5% in 2025, down from 12.2% in 2024. Only 23% of executives believe sustainability costs outweigh benefits. Water stewardship programmes are now implemented by 75% of surveyed businesses, up from 55% in 2022.
Supply chain transformation is accelerating through technology and geographic diversification. According to the report, 70% of executives view next-generation supply chains incorporating AI and IoT as a top tech trend for 2025. Investment is rising: 62% of businesses plan increased spending in 2025 compared to 48% in 2024. Critically, 74% of organisations are reducing China reliance through friendshoring in 2025, compared to only 49% in 2024, reflecting trade disruption reshaping global logistics.
Key numbers
| Metric | Value |
|---|---|
| CX investment priority growth | 78% (2025) vs 73% (2024) |
| AI and Gen AI prioritisation: US | 81% |
| AI and Gen AI prioritisation: Europe | 72% |
| Tech investment as % of 2025 revenue | 1.45% (US), 1.32% (Asia-Pacific), 1.29% (Europe) |
| Sustainability investment growth | 62% (2025) vs 52% (2024) vs 33% (2023) |
| Average sustainability investment increase | 10.5% (2025) vs 12.2% (2024) |
| Supply chain investment growth | 62% (2025) vs 48% (2024) |
| Reduction of China reliance | 74% (2025) vs 49% (2024) |
Figures as published in the source; forecasts and survey results are labelled as such in the note.
Why it matters
DMOs & destinations
DMOs must differentiate through verified sustainability credentials and AI-driven personalisation. With 62% of consumers prioritising sustainability and 38% willing to pay premiums for eco-friendly options (up from 30% in late 2023), destinations should invest in green credentials. Competitive positioning requires data-driven visitor insights and supply chain transparency to attract investment-savvy operators and sustainability-conscious tourists.
Hotels & hospitality
Hotels face dual imperatives: maintain CX competitiveness while deploying AI-powered operations. With 78% of businesses increasing CX spending, baseline investment is insufficient for differentiation. AI-powered guest analytics and chatbots are becoming essential. Simultaneously, 72% of businesses investing in climate tech signals supply chain pressure on sustainability. Properties must integrate green practices across procurement and guest offerings to capture the growing eco-conscious segment willing to pay premiums.
Travel tech & distribution
Travel-tech vendors must innovate in generative AI integration (81% US priority), supply chain visibility, and sustainability tracking. Geographic variance—81% US versus 72% Europe AI adoption—indicates market fragmentation. Platforms enabling real-time predictive analytics for inventory, maintenance, and bookings, combined with verifiable sustainability metrics, will capture enterprise contracts as operators seek intelligent transformation solutions.
Methodology and limits
Based on a comprehensive survey of 2,500 senior executives across 17 countries by Capgemini Research Institute. Figures represent stated investment intentions and forward-looking expectations for 2025 rather than observed expenditures. The report also incorporates Capgemini's consumer research to contextualise business investment trends against customer behaviour. This brief is based on the publicly available report summary; detailed methodological constraints are not fully disclosed in the source text.
Official source
The report is © Capgemini. This brief is an original editorial summary by TourismIntel — it quotes only figures published in the source and never reproduces the document.
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