What Fueled The Previous Growth In The Hotel Automation System Market?
The hotel automation system market has seen considerable growth due to a variety of factors.
• The hotel automation system market has seen substantial growth in recent years. It is expected to increase from $18.52 billion in 2024 to $19.77 billion in 2025, with a compound annual growth rate (CAGR) of 6.8%.
This growth is driven by the rising demand for operational efficiency, greater adoption of cloud-based solutions, a focus on improving guest experience, increased integration of IoT and AI, strict regulatory compliance, growth in online booking platforms, and a shift toward more sustainable practices.
How Does the Forecast Look for the Hotel Automation System Market?
The hotel automation system market is expected to maintain its strong growth trajectory in upcoming years.
• The hotel automation system market is expected to grow to $25.43 billion by 2029, at a CAGR of 6.5%.
The market's growth is attributed to the accelerated digital transformation, the rise of contactless technology, demand for predictive analytics, enhanced data security, voice and gesture control integration, mobile app expansion, and global growth in the hospitality sector. Trends include advancements in AI, IoT integration for smart hotel rooms, sustainability efforts, robotics in guest services, AR/VR experiences, blockchain adoption, and hybrid work environments.
What Are The Leading Drivers Of Growth In The Hotel Automation System Market?
The tourism and hospitality industries are expected to drive the hotel automation system market. This growth is driven by factors such as rising disposable incomes and innovations in travel technology, including online booking platforms and digital marketing. Hotel automation systems simplify guest experiences, helping hotels optimize operations while improving safety and comfort. In January 2023, the American Hotel and Lodging Association reported that the U.S. hotel occupancy rate increased by 9% in April 2022 compared to the previous year. Therefore, the growth of these industries is propelling the hotel automation system market.
How Are The Segments Defined Within The Global Hotel Automation System Market?
The hotel automation system market covered in this report is segmented –
1) By Type: Software, Hardware
2) By Deployment Type: Cloud Based, On Premises
3) By Application: Independent Hotel, Chain Hotel
Subsegments:
1) By Software: Property Management Systems (PMS), Booking And Reservation Systems, Channel Management Software, Revenue Management Systems (RMS), Guest Engagement And Mobile Apps, Point Of Sale (POS) Systems, Energy Management Software, Security And Surveillance Software
2) By Hardware: Room Control Systems, Keyless Entry Systems, In-Room Entertainment Systems, Self-Check-In Kiosks, Energy Management Devices, Digital Signage And Displays, Security Hardware
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How Are New Trends Impacting The Size Of The Hotel Automation System Market?
Leading businesses in the hotel automation system industry are prioritizing data analytics to provide personalization solutions like hotel upselling software. These solutions aim to heighten guest experiences, amplify revenue by capitalizing on upsell opportunities, streamline workflows, and create a unique edge in the competitive landscape of the hospitality sector. Personalized hotel upselling strategies enhance hotels' capacity to upsell supplementary services and upgrades to guests in an individualized and tailored way. For example, Oaky, a company from Amsterdam and Singapore specialized in upselling software purposely built for hotels, revolutionized hotel income strategies in April 2023 by launching a novel front desk upsell automation solution. This converts front desk agents into proficient upselling specialists. Oaky offers real-time triggers and suggestions during guest registration, streamlines customer segmentation, provides flexible pricing options and yields extensive reports. These features notably enhance upsell revenue (increasing it 3–9 times for hotels), fosters staff retention via increased commissions and gamification, and optimizes operations by decreasing manual tasks.
Who Are the Key Players In The Hotel Automation System Market?
Major companies operating in the hotel automation system market are:
• Oracle Corporation
• Infor Hospitality Solutions
• Sabre GLBL Inc.
• Urmet SpA
• ASSA ABLOY Global Solutions
• Pacific Controls
• Agilysys Inc.
• Guestline Ltd.
• Maestro PMS
• MSI Solutions
• Springer-Miller Systems (SMS)
• protel hotelsoftware GmbH
• SkyTouch Technology
• Hotelogix Inc.
• StayNTouch Inc.
• RMS Cloud
• InnQuest Software Corporation
• RoomRaccoon Hotel Tech
• Rezlynx by Guestline
• SuitePad GmbH
• Quore Systems LLC
• BuildTrack
• Frontdesk Anywhere
• Clock Software Ltd.
• Hotello by Mingus Software Inc.
• StayFlexi Inc.
• Fastnet IoT
• AutoClerk Inc.
• RoomKeyPMS
What Is The Most Dominant Region In The Hotel Automation System Market?
North America was the largest region in the hotel automation system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hotel automation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
