What Has Been The Evolution of the Travel And Hospitality AI Market in Recent Years?
The travel and hospitality ai market has seen considerable growth due to a variety of factors.
• The travel and hospitality AI market has seen strong growth in recent years. It will increase from $0.85 billion in 2024 to $0.93 billion in 2025, at a CAGR of 9.5%.
The growth is attributed to rising customer expectations, technological advancements, big data analytics, mobile and internet usage, and a drive for operational efficiency.
What Is the Forecasted Market Size and Growth Rate for The Travel And Hospitality AI Market Size In The Coming Years?
The travel and hospitality ai market is expected to maintain its strong growth trajectory in upcoming years.
• The travel and hospitality AI market is expected to grow to $1.32 billion by 2029, with a CAGR of 9.3%.
Growth drivers include increased demand for personalization, improved customer service, operational efficiency, fraud detection, and security. Trends include personalized experiences, chatbots, predictive analytics, fraud detection, and smart hotel rooms.
What Factors Are Driving Growth In The Travel And Hospitality AI Market?
The surge in desire for personalized experiences is set to drive the expansion of the AI market in the travel and hospitality sectors. These personalized experiences involve the customization of interactions, services, or products to meet the specific needs, behaviours and preferences of the individual, thereby encouraging engagement and satisfaction by creating a sense of being uniquely attended to. The call for such experiences escalates owing to the growing consumer expectation for bespoke interactions that boost satisfaction and involvement. The AI in the tourism and hospitality sectors heightens personalized experiences by scrutinising data to generate custom-made itineraries, recommendations, and services in line with individual wants and necessities. For instance, a poll held by Salesforce Inc., a US-based software company, in January 2023 on 5,000 consumers revealed that 81% of those polled intended to review their budgets within the following year in pursuit of more personalized experiences. Within the hospitality sector, 72% pledged loyalty to companies that prioritized faster service, while 65% declared their fidelity to companies that focussed on offering more personalized experiences. Consequently, the mounting demand for personalized experiences is fuelling the growth of the AI market in the travel and hospitality fields.
What Are The Main Segments Of The Global Travel And Hospitality AI Market?
The travel and hospitality AI market covered in this report is segmented –
1) By Type: Transportation, Hospitality
2) By Deployment Model: Cloud, On-Premises
3) By Technology: Artificial Intelligence (AI), Internet Of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), Big Data, Other Technologies
4) By Pricing Model: One Time Payment, Subscription
5) By End Users: Travel Agencies, Transportation Companies, Corporations, Hotels
Subsegments:
1) By Transportation: AI In Autonomous Vehicles, AI For Traffic And Route Optimization, AI In Air Traffic Management, AI For Predictive Maintenance, AI-Powered Ride-Hailing Services, AI For Travel Planning And Route Suggestions
2) By Hospitality: AI-Powered Virtual Assistants And Chatbots, AI For Personalized Customer Experiences, AI In Reservation And Booking Systems, AI For Pricing And Revenue Optimization, AI-Driven Customer Feedback And Sentiment Analysis, AI In Hotel And Resort Operations
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What Emerging Trends Are Influencing The Growth Of The Travel And Hospitality AI Market?
Leading companies in the AI market for travel and hospitality are turning to innovative strategies, including generative artificial intelligence, to maintain their market standing. Generative AI refers to technologies that can generate personalised content such as customised travel plans, variable pricing structures, and tailored marketing strategies - all enhancing customer satisfaction and business operations in the sector. A case in point is the partnership between Spain's Amadeus IT Group SA and Microsoft Corporation, a US tech company, which occurred in January 2024. They unveiled a pioneering AI technology that revolutionizes hotel business intelligence. Using generative AI, this new initiative bolsters hotel operators' capability to efficiently access and make sense of crucial business intelligence information. The epicenter of this new technology is the Amadeus Advisor chatbot which leverages Azure OpenAI Service to support natural language interactions, thus enabling users to rapidly and intuitively gather intricate data insights. Not only does this development streamline the process of data analysis, but it also disseminates crucial information more widely, empowering even non-technical employees to effectively immerse themselves in data handling.
Who Are the Key Players In The Travel And Hospitality AI Market?
Major companies operating in the travel and hospitality AI 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 Travel And Hospitality AI Market?
Asia-Pacific was the largest region in the travel and hospitality AI market in 2023. The regions covered in the travel and hospitality AI market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
