Travel, Hospitality, and Logistics industry enterprises are increasing their IT budgets significantly in 2022

In our Pulse Survey, we asked 600 executives across all verticals to whether their enterprises are increasing their budgets in 2022. The study reveals that among all the industries, travel, hospitality, and logistics (THL) industry enterprise leaders are planning some of the most sizable increases in their IT budgets, with almost 73% of respondents planning increase of 5% or more.

During COVID-19, THL industries were disrupted primarily due to social distancing, weak demand, and broken supply chains. The quarantine rules, travel restrictions, and surge in consumer supply-demand were a few significant challenges that the industry had endure. However, THL industries are currently recovering from the Covid -19 disruption and gaining momentum in 2022. Investments by major geographic region include:

• APAC enterprise leaders are planning the most significant uplifts in their IT budgets, with 83% of respondents indicating plans to increase investment by more than 5%. Innovation, research and development, and marketing are the key functional areas receiving the most investments in 2022.  Recent rapid growth in the usage of IoT, RFID tracker/blockchain for goods, and AI are the few examples that showcase the result of investment in R&D by the THL industry.
• Enterprises leaders from North America are also planning significant investments in their IT budget in 2022. Most of the investments are focused on digital and data services across talent management, customer experience, marketing, and strategy-related services. As a consumer-centric set of industries, investment in these functions will increase overall value for the customers.
• Meanwhile, European THL enterprise leaders are planning more moderate increases in IT budgets on marketing functions. Most THL enterprises are enhancing their digital presence by investing in digital marketing services. Other investment focus areas include procurement sourcing, customer experience, business services, and overall operational functions.
• THL industries are also currently investing in adopting data science, cloud, analytics, and UI/UX-related services. Investments in these technologies help enterprises digitize their overall operations, resulting in enhanced employee and customer experience.

The Bottom Line: Travel, Hospitality, and Logistics was drastically impacted due to the COVID-19 pandemic. This has opened doors for a massive shift to Travel, Hospitality, and Logistics 2.0. The new normal has proved that uncertainty is the only certainty and can be better-tackled by continuous innovation.

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