TECHNOLOGY


Competing priorities and limited funds hinder development


AI DOMINATES discussion of technology in travel, not least in aviation. But Deloitte head of aviation and AI and data lead Andy Gauld suggests aviation is behind sectors such as financial services and life sciences in AI adoption. This is for “two primary reasons”, he


explained: “One is still not being quite sure where to start. The other is around competing priorities. With limited funds to invest, is AI going to give airlines a competitive advantage when they don’t have a clear view on how to use it? “Those airlines starting to look at


AI are looking from the perspective of the customer experience and improving the end-to-end journey, at revenue management – how to increase yields and profitability – and personalisation, and at operations. “The industry is waking up to AI.


But the fundamental problem is airlines don’t have accurate data in the right place. To use AI, you need good data, as clean and accurate as possible. A lot of airlines still don’t have that core data platform in place, and the legacy carriers have the biggest problem. “A number of airlines are looking at


the end-to-end journey but in fragmented ways. There are conversations between airlines and airports on the airport


2.5


FIGURE 44: UK TRAVEL INDUSTRY IT SPEND Annual outlay (£billion)


2.2 2.0 1.76 1.5 1.4 1.0


2014 2015 2016 2017 2018 2019 2020 2021 2022 20232024* *Estimated Source: ONS/Travolution


UK TRAVEL industry spending on IT is necessarily on the increase (Figure 44)


1.97 1.96 1.8 1.45 1.48 1.96 1.97 1.86


A lack of good data remains a ‘fundamental problem’ for many businesses


experience and we’re seeing a bit more collaboration between them to integrate offerings for customers. Airlines are also looking at AI to analyse fuel consumption and in relation to aircraft maintenance and crew rostering when there is disruption. “I see more airports looking at


AI, predominantly around staffing and moving aircraft around the airfield. Digital twinning to simulate airport processes has moved on to augmenting processes with AI. “Air traffic control (ATC) is a similar


story. A lot is being done in post-ops [operations] analysis. The challenge is in adopting AI into a mission-critical system. That is going to take years. The risk in ATC is the biggest hurdle.” There are developments in non-AI


technologies. Gauld noted: “Every airline is looking to modernise its digital platforms, so there is constant evolution and new technologies coming in. We’re going to see another wave of technology that supports check-in and bag drop processes. There are technology needs airside, for example in luggage processing, and there is a lot going on in the airport space. But it comes down to where airports and airlines want to invest limited cash. Most tends to be funnelled towards the customer.” AI will play a role in the UK’s plans


for airspace modernisation. But Gauld said: “How much impact it will have, it’s too early to say. Simulation and digital twinning are fundamental to airspace modernisation. But I wouldn’t classify simulation as AI. The AI element is to help and support in real time. We should reach a point where we have elements of air traffic controlled by the system, with humans providing oversight and the ability to intervene. Air traffic control will modernise over time, with AI impacting how it works, and you won’t have as many people involved in the process, but people will control it.” Gauld suggests AI has yet to be


26 Travel Weekly Insight Report 2025


£bn


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