What Has Been the Growth of the AI in Hospitality And Tourism Market So Far?
The ai in hospitality and tourism market has seen considerable growth due to a variety of factors.
• The AI in hospitality and tourism market is forecasted to grow from $15.69 billion in 2024 to $20.47 billion in 2025 at a CAGR of 30.5%.
Growth is attributed to the automation of customer service, personalization, revenue management, operational efficiency, and predictive analytics.
How Will the AI in Hospitality And Tourism Market Size In The Coming Years?
The ai in hospitality and tourism market is expected to maintain its strong growth trajectory in upcoming years.
• The AI in hospitality and tourism market is expected to grow to $58.56 billion by 2029, with a CAGR of 30.1%.
The growth is driven by improved customer experience, operational efficiency, data analytics, smart recommendations, and virtual assistants. Trends include personalized guest experiences, chatbots, predictive analytics, enhanced security, and RPA.
What Main Forces Are Fueling Expansion In The AI in Hospitality And Tourism Market?
The expanding tourism industry is expected to boost the AI in hospitality and tourism market. The tourism sector, which includes travel for leisure, business, and other purposes, is growing due to increased global mobility and rising disposable incomes. AI is enhancing customer service, streamlining operations, and personalizing travel experiences. For example, in April 2024, Statistics Canada reported a 1.8% increase in tourism spending by international visitors in the first quarter, primarily driven by spending on accommodation and food services. This growth is supporting the AI in hospitality and tourism market.
What Key Areas Define The Segmentation Of The Global AI in Hospitality And Tourism Market?
The AI in hospitality and tourism market covered in this report is segmented –
1) By Type: Natural Language Processing (NLP) Applications, Machine Learning Algorithms, Computer Vision And Image Recognition, Chatbots And Virtual Assistants, Recommendation Systems, Sentiment Analysis
2) By Application: Customer Service And Support, Personalized Marketing And Advertising, Hotel And Room Booking Systems, Virtual Concierge Services, Smart Guest Room Automation, Data Analytics And Business Intelligence, Revenue Management And Pricing Optimization
3) By End-User: Hotels And Resorts, Airlines And Airports, Travel Agencies And Tour Operators, Restaurants And Food Service Providers, Cruise Lines And Maritime Tourism, Online Travel Platforms And Booking Websites
Subsegments:
1) By Natural Language Processing (NLP) Applications: Language Translation, Voice Recognition, Text Analysis, Speech-To-Text Conversion
2) By Machine Learning Algorithms: Predictive Analytics, Demand Forecasting, Dynamic Pricing Models, Customer Segmentation
3) By Computer Vision And Image Recognition: Facial Recognition For Check-In, Visual Quality Inspection, Object Detection In Security, Automated Identification For Guest Preferences
4) By Chatbots And Virtual Assistants: Customer Service Chatbots, Booking And Reservation Assistants, Travel Information Assistants, In-Room Virtual Assistants
5) By Recommendation Systems: Personalized Destination Recommendations, Activity And Event Suggestions, Dining And Cuisine Recommendations, Hotel Room And Amenity Recommendations
6) By Sentiment Analysis: Customer Feedback Analysis, Review Monitoring And Analysis, Brand Reputation Management, Social Media Sentiment Tracking
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How Are Emerging Trends Reshaping The Dynamics Of The AI in Hospitality And Tourism Market?
Companies in the AI in hospitality and tourism market are focusing on generative AI to enhance customer service in the hospitality industry. In June 2024, Sabre Hospitality, a US-based technology firm, launched SynXis Concierge.AI, its first generative AI tool. This innovative product aims to transform how hotels interact with guests, offering immediate, accurate responses to inquiries by utilizing Sabre’s extensive data. Initially, the tool will be used by Sabre’s Customer Care team to manage a variety of guest interactions.
Who Are the Key Players In The AI in Hospitality And Tourism Market?
Major companies operating in the AI in hospitality and tourism market are:
• Google LLC
• Microsoft Corporation
• Accenture PLC
• International Business Machines Corporation
• Oracle Corporation
• Salesforce com Inc.
• Tata Consultancy Services Limited (TCS)
• Capgemini SE
• Infosys Limited
• Adobe Inc.
• Booking Holdings Inc.
• HCL Technologies Limited
• Expedia Group Inc.
• Wipro Limited
• Amadeus IT Group
• Sabre Corporation
• Concur Technologies (SAP Concur)
• Travelport Worldwide Limited
• Cvent Inc.
• Trivago N.V.
• Skyscanner Ltd.
• Mews Systems
• Hopper Inc.
• Kayak Software Corporation
• RateGain Technologies
• Revinate Inc.
• Hotelogix
What Is The Most Dominant Region In The AI in Hospitality And Tourism Market?
North America was the largest region in the AI in hospitality and tourism market in 2023. The regions covered in the AI in hospitality and tourism market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
