What Has Been the Growth of the Artificial Intelligence AI In Hospitality Market So Far?
The artificial intelligence ai in hospitality market has seen considerable growth due to a variety of factors.
• The market size for artificial intelligence (AI) in the hospitality sector has seen significant expansion recently, with projections indicating an increase from $0.15 billion in 2024 to $0.24 billion in 2025. This represents a compound annual growth rate (CAGR) of 57.0%.
The surge in growth during this historic period is a result of factors such as the rising demand for an improved customer experience, the increased use of chatbots and virtual assistants, the potential applications of AI in travel and hospitality, and the use of advanced analytics and AI-powered robots for managing various on-site operations in the hospitality industry.
How Will the Artificial Intelligence AI In Hospitality Market?
The artificial intelligence ai in hospitality market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size for artificial intelligence (AI) in the hospitality sector is projected to experience a significant surge. By 2029, it's expected to reach a value of $1.46 billion, growing at a compound annual growth rate (CAGR) of 57.8%.
The predicted growth throughout the forecast period can be ascribed to various factors such as the use of generative AI for dynamic content creation, Internet of Things (IoT), blockchain, and cloud integration, enhancing the guest experience and increasing consumer needs. The projection period will also witness certain trends like considerable market expansion, acceptance of high-tech methods, emphasis on personalisation and customer service, challenges and issues, along with upgrading of operations.
Which Factors Are Boosting Growth In The Artificial Intelligence AI In Hospitality Market?
The accelerating advancements in digital technology within the hospitality sector is predicted to boost the expansion of the artificial intelligence (AI) in hospitality market in the future. Digital progress in this industry entails total harmonization and application of digital tech and strategies to upgrade and augment varying segments of hospitality services. As this sector starts to utilize these cutting-edge technologies more, the call for AI solutions increases in order to further improve operations, augment operational effectiveness, customize guest experiences, and boost decision-making through information based on solid data. For example, in September 2022, nearly half of the travel and tourism businesses have completed digital transformations according to Boston Consulting Group, Inc., a management consultancy based in the U.S., this is 25% more than the standard transformation rate across different sectors. Thus, this accelerated pace of digital integration within the hospitality sector will be a significant factor in driving growth in the artificial intelligence (AI) in hospitality market.
What Key Areas Define The Segmentation Of The Global Artificial Intelligence AI In Hospitality Market?
The artificial intelligence (AI) in hospitality market covered in this report is segmented –
1) By Technology: Machine Learning, Natural Language Processing, Chatbots Or Travel Bots, Blockchain, Big Data, Other Technologies
2) By Hospitality Type: Food And Beverage, Lodging Or Accommodation, Other Hospitality Type
3) By Application: Customer Purchases, Travel Choices, Restaurants, Entertainment, Journey Patterns And Itinerary, Other Applications
Subsegments:
1) By Machine Learning: Predictive Analytics, Recommendation Systems, Personalization Engines
2) By Natural Language Processing: Sentiment Analysis, Language Translation, Voice Recognition
3) By Chatbots Or Travel Bots: Customer Service Bots, Booking Assistants, FAQ Bots
4) By Blockchain: Smart Contracts, Payment Solutions, Identity Verification
5) By Big Data: Data Analytics, Data Management Solutions, Customer Insights
6) By Other Technologies: Augmented Reality (AR), Virtual Reality (VR), Internet Of Things (Iot) Solutions
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What New Trends Are Influencing The Artificial Intelligence AI In Hospitality Market?
Leading firms in the hospitality market's artificial intelligence (AI) sector are innovating advanced technologies for hotels and resorts including AI and ML platforms to offer superior services with advanced features. These platforms use sophisticated algorithms to simplify operations, improve guest experiences, and maximize decision-making processes through data-driven insights. For example, in March 2022, Revnomix Hotel Data, a company offering hotel revenue management services based in India, introduced RevSeed 2.0, an upgraded version of RevSeed. This new version utilizes AI and machine learning (ML) to deliver real-time market and demand analysis, aid in strategic pricing decisions for hotel accommodations and facilities, and proposes revenue management approaches such as volume, rate, market-linked, among others.
Who Are the Key Players In The Artificial Intelligence AI In Hospitality Market?
Major companies operating in the artificial intelligence (AI) in hospitality market are:
• Google LLC
• Alibaba Group Holding Limited
• Huawei Technologies Co. Ltd.
• Amazon Web Services Inc.
• Intel Corporation
• International Business Machines (IBM) Corporation
• Cisco Systems Inc.
• Microsoft Corporation
• Oracle Corporation
• NVIDIA Corporation
• Salesforce Inc
• NEC Corporation
• Infosys Limited
• HCL Technologies Limited
• KLM Royal Dutch Airlines
• AltexSoft Inc
• Hilton Worldwide Holdings Inc
• Amadeus IT
• Sabre Corporation
• CRS Technology
• Cvent Holding Corp
• Navitaire
• Lemax
• Tramada System
• Lola
• mTrip
• Qtech Software
• Infor Inc
What Is The Most Dominant Region In The Artificial Intelligence AI In Hospitality Market?
North America was the largest region in the artificial intelligence (AI) in hospitality market in 2024. The regions covered in the artificial intelligence (AI) in hospitality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
