Travel, Transportation, and Hospitality Digital Services 2025 Market Insights™

August, 2025

Report Summary

This report identifies key demand-side trends in the travel, transportation, and hospitality industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the industry based on Avasant’s assessment.

Why read this Market Insights?

The travel, transportation, and hospitality industry rapidly embraces digital transformation, focusing on AI, immersive technologies, cybersecurity, and sustainability. Business enterprises leverage AI and Gen AI for customer engagement through personalized itineraries, dynamic pricing, real-time bookings, and operational efficiency in fleet, route planning, and workforce support. Immersive technologies (AR/VR/XR) enhance customer experience via virtual tours, pre-trip engagement, and employee training simulations. To support these innovations, companies are modernizing legacy IT systems while strengthening cybersecurity with biometrics, predictive threat monitoring, and encrypted digital infrastructures to build digital trust. In parallel, the industry drives sustainability and net‑zero goals through blockchain- and IoT-enabled carbon tracking, predictive maintenance, and smart automation across facilities. With the help of these innovative steps, the industry is rapidly moving toward a more personalized, secure, immersive, and eco‑conscious travel ecosystem.

The Travel, Transportation, and Hospitality Digital Services 2025 Market Insights™ aids enterprises in this sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, analyst insights from primary and secondary research, and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

    • Definition and scope of the travel, transportation, and hospitality industry
    • Key drivers and enterprise response
    • Avasant recognizes 19 top-tier providers supporting the travel, transportation, and hospitality industry in digital transformation

Demand-side trends (Pages 8–12)

    • Accelerated hyperpersonalization, resource efficiency, and superior services are leading to an increase in AI and Gen AI investments.
    • Demand for deeper, more interactive experiences propels the rapid adoption of immersive technologies.
    • Rising digitalization is exposing critical customer data, prompting the need for stronger cybersecurity frameworks.
    • Heightened environmental concerns are prompting TTH enterprises to embed green digital solutions throughout their value chain.

Key contacts (Page 13)


Read the Research Byte based on this report. Please refer to Avasant’s Travel, Transportation, and Hospitality Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.