Artificial Intelligence (AI) in Hospitality Global Market Report 2024

The artificial intelligence (AI) market size has grown exponentially in recent years. It will grow from $0.09 billion in 2023 to $0.15 billion in 2024 at a compound annual growth rate (CAGR) of 58.6%. The growth observed in the historical period can be attributed to several factors, including the increasing demand for enhanced customer experiences, the growing adoption of chatbots and virtual assistants, recognition of the potential of AI in travel and hospitality, and the utilization of advanced analytics and AI-enabled robots to address various on-property functions within the hospitality industry.

The artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $0.92 billion in 2028 at a compound annual growth rate (CAGR) of 57.5%. The anticipated growth in the forecast period can be attributed to several factors, including the utilization of generative AI for dynamic content generation, integration with IoT, blockchain, and cloud technologies, a focus on enhancing guest experiences, and increasing consumer demand for innovative hospitality services. Major trends expected during this period include significant market growth driven by the adoption of advanced technologies, a heightened focus on personalization and customer service, addressing challenges and concerns within the industry, and the optimization of operations through technological advancements.

The escalating digitalization within the hospitality industry is poised to drive significant growth within the artificial intelligence (AI) in hospitality market in the foreseeable future. Digitalization in hospitality entails the comprehensive integration and utilization of digital technologies and solutions to revolutionize various facets of hospitality services. As businesses within the sector increasingly embrace advanced technologies, there is a growing appetite for AI solutions to further optimize operations, enhance operational efficiency, personalize guest experiences, and facilitate data-driven decision-making. A survey conducted by Rackspace Technology, a US-based cloud computing company, in February 2023, revealed a notable surge in the adoption of artificial intelligence and machine learning among IT decision-makers in the hospitality and travel sector, with 37% embracing these technologies - an increase from 13% in 2021. Moreover, a significant proportion of respondents expressed intentions to leverage AI and ML to enhance speed and efficiency, predict business performance, and minimize risks, underscoring the pivotal role of AI in driving digital transformation within the hospitality industry and propelling the growth of the AI in hospitality market.

Key players within the AI in hospitality market are actively engaged in developing advanced technologies tailored to meet the evolving needs of hotels and resorts, leveraging AI and ML platforms to deliver enhanced customer experiences and operational efficiencies. These platforms harness sophisticated algorithms to streamline operations, offer personalized services, and empower decision-makers with data-driven insights. For instance, in March 2022, Revnomix Hotel Data, an India-based hotel revenue management company, unveiled RevSeed 2 - a next-generation AI and ML-based revenue management platform designed to provide real-time market and demand analysis, facilitate strategic pricing decisions for hotel rooms and services, and offer comprehensive revenue management strategies such as volume, rate, market-linked, and others. By harnessing the power of AI and ML, RevSeed 2 exemplifies the transformative potential of advanced technologies in optimizing revenue management processes and enhancing guest satisfaction within the hospitality sector, thereby driving the growth of the AI in hospitality market.

In October 2023, Mews, a hospitality management cloud company headquartered in the Netherlands, finalized the acquisition of Nomi for an undisclosed sum. This strategic move aims to empower hoteliers with deeper insights into their guests, facilitating data-driven operational decisions and ultimately delivering superior guest experiences. Nomi, a hospitality startup based in the United States, specializes in offering an AI-driven personalized travel recommendation guidebook for travelers.

Major companies operating in the artificial intelligence (AI) in hospitality market report 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.

North America was the largest region in the artificial intelligence (AI) in hospitality market in 2023. 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. The countries covered in the artificial intelligence (AI) in hospitality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in hospitality involves integrating AI technologies and solutions within the hospitality industry to improve guest experiences, streamline operations, and optimize various aspects such as customer interactions, service delivery, and business processes. This encompasses utilizing machine learning, natural language processing, chatbots, blockchain, big data analytics, and other emerging technologies to enhance efficiency, offer personalized services, and innovate across accommodation, dining, entertainment, and customer interaction segments.

The primary technology types in AI in hospitality include machine learning, natural language processing, chatbots or travel bots, blockchain, big data, and others. Machine learning enables systems to analyze patterns, adapt to changing circumstances, and enhance guest experiences by learning from data without explicit programming. Hospitality types are categorized into food and beverage, lodging or accommodation, and others, with applications spanning customer purchases, travel choices, restaurant selections, entertainment, journey patterns, and itineraries.

The artificial intelligence (AI) in hospitality research report is one of a series of new reports that provides artificial intelligence (AI) in hospitality market statistics, including the artificial intelligence (AI) in hospitality industry's global market size, regional shares, competitors with an Artificial intelligence (AI) in hospitality market share, detailed artificial intelligence (AI) in hospitality market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in hospitality industry. This artificial intelligence (AI) in hospitality market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial intelligence (AI) in hospitality market includes revenues earned by entities by providing guest assistance services, personalization services, operational optimization services, reservation and booking services, predictive analytics services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) hospitality market consists of sales of biometric authentication systems, data analytics platforms, customer relationship management (CRM) software, and smart room controls. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values - that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.


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