What Has Been The Evolution of the Generative AI in Hospitality Market in Recent Years?
The generative ai in hospitality market has seen considerable growth due to a variety of factors.
• In recent times, the market size for generative AI in the hospitality sector has experienced substantial expansion. It is expected to scale from $24.08 billion in 2024 to $34.22 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 42.1%.
The growth witnessed in the past can be associated with a surge in demand for customized guest experiences, expansion in data accessibility and analytical skills, the necessity for operational efficiency and cost-cutting, an escalation in customer expectations for automation, and enhancements in machine learning algorithms.
What Are the Future Growth Projections for the Generative AI in Hospitality Market?
The generative ai in hospitality market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for generative AI in the hospitality sector is anticipated to witness a significant upsurge in the coming years, reaching $138.45 billion by 2029 with a CAGR of 41.8%.
The projected growth within the forecast period can be linked to the advancement of smart technology infrastructure, improved capacities for integrating with existing systems, increased demand for contactless services, growing usage of AI for personalizing guest experiences, and growth of worldwide travel and tourism industries. Major trends within the forecast period encompass the development of dynamic pricing models powered by AI, advancement of virtual and augmented reality experiences, creation of more advanced AI-enabled chatbots, escalation in AI-aided predictive analytics for guest behavior, and the amalgamation of AI with Internet of Things (IoT) devices.
What Are The Core Factors Supporting Growth In The Generative AI in Hospitality Market?
Generative AI's growth in the hospitality sector is being driven by the expansion of the tourism industry. This rise in tourism is due to factors such as increased disposable income, improved travel infrastructures, greater global connectivity, and a rise in consumer interest in new experiences and destinations. Generative artificial intelligence influences the tourism industry by customizing guest experiences, refining service deliverance, and simplifying operations to meet the rising demands of consumers. For instance, the UK experienced an increase in overseas tourists in May 2024, as documented by the Office for National Statistics, a UK-based national statistical institute. The number of trips amounted to 38.0 million from 2023, a notable increase from 31.2 million in 2022. These visitors spent a staggering $39.74 billion (£31.1 billion), a rise of $5.91 billion (£4.6 billion) from the prior year. On the other hand, the number of trips taken by UK residents abroad rose to 86.2 million from 71.0 million in 2022, with an expenditure of $93.07 billion (£72.4 billion) and $17.87 billion (£13.9 billion) more than the previous year. Consequently, the expansion of the tourism sector is spurring the growth of the generative AI in the hospitality industry.
What Are The Major Segments Within The Global Generative AI in Hospitality Market?
The generative AI in hospitalitymarket covered in this report is segmented –
1) By Component: Software, Services
2) By Customer Size: Large Hotel Chains And Resorts, Small Boutique Hotels, Mid-Sized Hotels And Chains
3) By Application: Chatbots And Virtual Assistants, Personalized Recommendations, Demand Forecasting, Voice Assistants, Predictive Maintenance, Guest Experience Enhancement, Other Applications
Subsegments:
1) By Software: Customer Service Chatbots, Virtual Assistants, Personalized Recommendation Engines, Automated Content Creation Tools, Predictive Analytics Software
2) By Services: Consulting Services, Implementation And Integration Services, Support And Maintenance Services, Training And Development Services, Managed Services.
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How Are New Trends Impacting The Size Of The Generative AI in Hospitality Market?
The prime firms in the generative AI in hospitality sector are aiming to integrate generative artificial intelligence (AI) to enrich guest communication, systematize processes, and deliver personalized assistance. Generative AI acts by making new material, such as text, music, or images, based on trends identified in existing data. For example, SynXis Concierge.AI, a tool that leverages generative AI to produce content from various sources like text and images, was launched in June 2024 by Sabre Hospitality, a hospitality technology service provider based in the US. This development enables the system to autogenously produce responses, independent of the direct expertise of support agents. SynXis Concierge.AI, utilizing the vast data resources of Sabre, offers instant and accurate responses to customer inquiries, lessening reliance due to knowledge and experience of support agents.
Who Are the Key Players In The Generative AI in Hospitality Market?
Major companies operating in the generative AI in hospitality market are:
• Microsoft Corporation
• Amazon Web Services Inc.
• Accenture plc
• International Business Machines Corporation (IBM)
• Cisco Systems Inc.
• Oracle Corporation
• Honeywell International Inc.
• Fujitsu Limited
• Salesforce Inc.
• NVIDIA Corporation
• Google LLC (Google Cloud)
• NEC Corporation
• Adobe Inc.
• Zebra Technologies Corporation
• Amadeus IT Group SA
• Persado Inc.
• Aisera
• Master of Code Global
• Asksuite Hotel Chatbot
• 4Geeks LTD
What Is The Most Dominant Region In The Generative AI in Hospitality Market?
North America was the largest region in the generative AI in hospitality market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in hospitality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
