Artificial Intelligence (AI) in Hospitality Market Report 2026

The artificial intelligence (AI) in hospitality market size has grown exponentially in recent years. It will grow from $0.23 billion in 2025 to $0.37 billion in 2026 at a compound annual growth rate (CAGR) of 57.6%. The growth in the historic period can be attributed to digital transformation of hospitality operations, growth of online travel platforms, increasing customer experience focus, rise of data driven decision making, early adoption of automation tools.

The artificial intelligence (AI) in hospitality market size is expected to see exponential growth in the next few years. It will grow to $2.28 billion in 2030 at a compound annual growth rate (CAGR) of 57.7%. The growth in the forecast period can be attributed to advancements in machine learning algorithms, rising demand for personalized guest experiences, expansion of smart hotels, investment in cloud based hospitality platforms, focus on operational cost optimization. Major trends in the forecast period include adoption of AI powered chatbots for guest services, growth of predictive analytics for demand forecasting, integration of AI based personalization engines, expansion of voice enabled hotel room controls, use of AI for dynamic pricing and revenue management.

The increasing level of digitalization in the hospitality industry is expected to drive the growth of the artificial intelligence (AI) in hospitality market in the coming years. Digitalization in hospitality refers to the extensive adoption and use of digital technologies and solutions to transform and improve different aspects of hospitality services. As companies across the sector continue to adopt advanced technologies, the demand for AI solutions is rising to further optimize operations, enhance efficiency, deliver personalized guest experiences, and support better decision-making through data-driven insights. For example, in February 2024, according to Eurostat, a Luxembourg-based government agency, more than 90% of people in the European Union used the internet at least once a week in 2023, while only 56% possessed basic or above-basic digital skills. Therefore, increasing digitalization in the hospitality industry is driving the growth of the artificial intelligence (AI) in hospitality market.

Major companies operating in the AI in hospitality market are emphasizing the development of innovative solutions such as advanced unified communication systems to improve guest engagement and streamline operational processes. Advanced unified communication systems are platforms that bring together multiple messaging channels into a single authenticated conversation stream linked to a guest’s identity and reservation, enabling consistent communication throughout the guest journey. For instance, in December 2025, Intelity, a US-based company, introduced a first-of-its-kind unified messaging layer within its guest engagement platform that combines SMS and WhatsApp with in-app chat to simplify hotel-to-guest communications. This system ensures that all conversations are connected to a guest’s reservation and identity, reducing fragmented or anonymous interactions, and allows staff to connect instantly with travelers through trusted channels. It also supports proactive communication by hotel teams before arrival and during the stay, while enabling guests to securely initiate messages via SMS or WhatsApp. The upgraded messaging layer remains fully integrated with Intelity’s in-app chat and supports AI automation readiness through Nexus AI Concierge to efficiently manage high-volume requests across channels.

In October 2023, Mews, a Netherlands-based hospitality management cloud company, acquired Nomi for an undisclosed amount. This acquisition enables hoteliers to gain deeper insights into guest preferences, make data-driven operational decisions, and deliver improved guest experiences. Nomi is a US-based hospitality startup that offers an AI-powered personalized travel recommendation guidebook for travelers.

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 Corporation, Cisco Systems Inc., Microsoft Corporation, Oracle Corporation, NVIDIA Corporation, Salesforce Inc, NEC Corporation, Infosys Limited, HCL Technologies Limited, AltexSoft Inc, Hilton Worldwide Holdings Inc, Amadeus IT, Sabre Corporation, Cvent Holding Corp, Navitaire, Infor Inc.

North America was the largest region in the artificial intelligence (AI) in hospitality market in 2025. The regions covered in the artificial intelligence (AI) in hospitality market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

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

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