AI in Hospitality and Tourism Market Report 2024

The AI in hospitality and tourism market size has grown exponentially in recent years. It will grow from $12.06 billion in 2023 to $15.69 billion in 2024 at a compound annual growth rate (CAGR) of 30.1%. The growth during the historic period can be attributed to advancements in customer service automation, increased personalization, improved revenue management, enhanced operational efficiency, and the use of predictive analytics.

The AI in hospitality and tourism market size is expected to see exponential growth in the next few years. It will grow to $45.06 billion in 2028 at a compound annual growth rate (CAGR) of 30.2%. The anticipated growth during the forecast period can be attributed to improvements in customer experience, operational efficiency, data analytics and insights, smart recommendations, and the use of chatbots and virtual assistants. Key trends expected to drive growth include personalized guest experiences, the widespread use of chatbots and virtual assistants, predictive analytics for demand forecasting, enhanced security and fraud prevention measures, and the adoption of robotic process automation (RPA).

The growth of the tourism industry is expected to drive the expansion of the AI in hospitality and tourism market. The tourism industry involves activities and services related to travel outside one's usual environment for leisure, business, or other reasons. Its expansion is fueled by increased global mobility, rising disposable incomes, and a growing interest in unique travel experiences. AI technologies, such as chatbots, predictive analytics, and recommendation systems, enhance customer service, streamline operations, and personalize travel experiences. For example, Statistics Canada reported in April 2024 that international tourism spending in Canada increased by 1.8% in the first quarter, following a 4% rise in the previous quarter. This increase was driven by higher spending on accommodation and food and beverage services, which both grew by 2%. Additionally, the number of non-resident travelers to Canada rose by 1.7%. This growth in the tourism sector is propelling the AI in hospitality and tourism market.

Companies in the AI in hospitality and tourism market are focusing on advanced solutions, such as generative AI features, to improve customer service in the hospitality sector. Generative AI refers to systems that create new content, including text, images, music, or code, mimicking human creativity and intelligence. For example, in June 2024, Sabre Hospitality, a US-based technology company, introduced SynXis Concierge.AI, its first generative AI solution for enhancing customer service in hospitality. This tool aims to transform interactions between hoteliers and customers by delivering immediate, detailed, and accurate responses to inquiries, using Sabre’s extensive data resources. Initially, the tool will be employed by Sabre's Customer Care and Delivery team to manage various customer interactions and issue resolutions.

In January 2024, Duve, an Israel-based software company, acquired Easyway for an undisclosed amount. This acquisition is intended to improve guest experience management across hotels and vacation rentals worldwide by integrating Easyway's generative AI capabilities with Duve's existing personalization and segmentation features. Easyway specializes in AI-driven guest experience solutions.

Major companies operating in the AI in hospitality and tourism 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.

North America was the largest region in the AI in hospitality and tourism market in 2023. The regions covered in the AI in hospitality and tourism market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the AI in hospitality and tourism market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in hospitality and tourism leverages AI technologies to enhance customer service, streamline operations, and deliver personalized experiences. This includes using chatbots for handling customer inquiries, predictive analytics for forecasting demand, and recommendation systems for personalized travel suggestions. These innovations improve efficiency, customer satisfaction, and overall operational effectiveness in the industry.

The main types of AI in hospitality and tourism encompass natural language processing (NLP) applications, machine learning algorithms, computer vision and image recognition, chatbots and virtual assistants, recommendation systems, and sentiment analysis. NLP applications use algorithms to enable computers to understand, interpret, and generate human language, facilitating tasks such as translation, sentiment analysis, and speech recognition. AI applications span customer service and support, personalized marketing and advertising, hotel and room booking systems, virtual concierge services, smart guest room automation, data analytics and business intelligence, revenue management, and pricing optimization. These technologies are employed by various end-users, including hotels and resorts, airlines and airports, travel agencies and tour operators, restaurants and food service providers, cruise lines and maritime tourism, online travel platforms, and booking websites.

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

The AI in hospitality and tourism market includes revenues earned by entities by providing services such as automated check-ins, dynamic pricing, virtual concierges, and sentiment analysis to improve customer feedback and satisfaction. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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