THL leaders are playing it smart by betting on pragmatism over hype

Our travel, hospitality, and logistics (THL) study reveals a critical insight. travel and hospitality enterprises are doubling down on proven technologies such as hybrid cloud (52% actively investing) and ERP systems (50%), while emerging tools such as GenAI, blockchain, and AR/VR remain in experimental or observational phases. This reflects a pragmatic, outcome-driven mindset among enterprise leaders.

Clear priority on modernization and operational backbone: THL enterprises are channeling their tech investments primarily into foundational technologies. Over half (52%) are actively expanding hybrid/multi-cloud capabilities, closely followed by 50% expanding ERP platforms such as SAP. RPA also draws strong investments, with 44% actively scaling it.

The investment patterns tell a clear story: hybrid cloud and ERP are the digital backbone. Enterprise leaders aren’t dabbling here; they’re scaling. This signals a need to modernize infrastructure, enable real-time decision-making, and improve operational resilience.

Automation and IoT are still essential but stalling at scale: Despite early momentum, RPA sees only 44% active investment. IoT, which is crucial for real-time asset and guest experience management, lags at 34%. Both technologies show high rates of strategic trials (36% and 33%, respectively)—suggesting that while the business case is understood, budget issues, scalability challenges, and integration issues persist.

Leaders must reassess whether RPA and IoT are underutilized due to legacy friction or poor governance models. These are still powerful levers, especially in facilities, fleet, and resource management, but only when integrated into a broader digital strategy.

GenAI and ML, high buzz, and cautious budgets: Despite the hype, only 26% are actively investing in GenAI. Machine learning and traditional AI are similarly restrained (25% active). Nearly a third (29%) are merely monitoring GenAI, while another 30% are still in trial mode. THL firms seem to be struggling with the ‘how’ for AI; they have legacy systems and data in silos, hindering adoption.

The message is clear: the technology is promising, but THL enterprises are not ready to go all in. They are intrigued yet hesitant to place big bets until three critical enablers mature: data infrastructure, governance frameworks, and clearly defined business outcomes. Just like any other new tech, GenAI won’t go mainstream in this vertical until it proves clear measurable outcomes, not just wow-factor demos.

Emerging tech still struggles for relevance: Despite the excitement around immersive and decentralized technologies, blockchain and VR/AR aren’t on most THL executives’ shortlists. Only 10% are actively expanding blockchain efforts, and 37% say it’s not applicable. VR/AR tells a similar story—just 19% are expanding, and 19% label it irrelevant.

While both technologies offer intriguing use cases from decentralized loyalty programs to immersive booking experiences, they fail to provide tangible ROI or operational relevance in this sector. For most enterprises, blockchain has long been pitched as a game-changer for traceability, identity verification, and digital payments. But it hasn’t achieved meaningful enterprise traction beyond pilots. Similarly, while AR/VR has potential in experiential marketing or virtual tours, it’s often viewed as a ‘nice to have’ rather than a core differentiator.

The Bottom Line: THL leaders must continue to focus on pragmatic modernization while addressing the need to balance core with edge.

Investments in foundational systems may be critical to survive in this hyper-competitive, margin-sensitive industry. At the same time, enterprises must revisit RPA, GenAI, blockchain, and IoT—not as siloed tools but as integral parts of a connected, intelligent operating model. Being stuck in trial mode only points to organizational misalignment, not technology immaturity.