Travel and Hospitality AI Market Report 2024

Where is the largest and fastest growing market for travel and hospitality ai? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more. The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The travel and hospitality AI market size has grown strongly in recent years. It will grow from $0.78 billion in 2023 to $0.85 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth during the historic period can be attributed to rising customer expectations, advancements in technology, the use of big data analytics, increased mobile and internet usage, and improvements in operational efficiency.

The travel and hospitality AI market size is expected to see strong growth in the next few years. It will grow to $1.21 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to rising demand for personalization, improved customer service, greater operational efficiency, predictive analytics, enhanced fraud detection, and increased security. Major trends during this period include personalized customer experiences, the use of chatbots and virtual assistants, predictive analytics for demand forecasting, advanced security and fraud detection measures, and the development of smart hotel rooms.

The rising demand for personalized experiences is anticipated to drive the growth of the travel and hospitality AI market. Personalized experiences involve customized interactions, services, or products tailored to an individual's preferences, behaviors, and needs, which enhances engagement and satisfaction by making individuals feel uniquely attended to. This demand is growing as consumers increasingly expect tailored interactions that boost their overall satisfaction and engagement. Travel and hospitality AI supports these personalized experiences by analyzing data to create custom itineraries, recommendations, and services that align with individual preferences. For example, a survey conducted by Salesforce Inc. in January 2023 with 5,000 consumers revealed that 81% planned to reassess their budgets over the next year for more personalized experiences. In the hospitality sector, 72% of respondents said they would stay loyal to companies offering faster service, and 65% preferred those providing personalized experiences. Consequently, the rising demand for personalized experiences is propelling the growth of the travel and hospitality AI market.

Key players in the travel and hospitality AI market are concentrating on innovative solutions such as generative artificial intelligence to maintain their market position. Generative AI refers to systems that create personalized content, including customized travel itineraries, dynamic pricing models, and bespoke marketing materials, enhancing customer experiences and operational efficiency. For instance, in January 2024, Amadeus IT Group, S.A., a Spain-based IT company, collaborated with Microsoft Corporation, a US-based technology firm, to launch a new AI-powered technology aimed at modernizing hotel business intelligence. This initiative employs generative AI to help hoteliers access and interpret essential business intelligence data more efficiently. A key component is the Amadeus Advisor chatbot, which uses the Azure OpenAI Service to enable natural language queries, making it easier for users to retrieve complex data insights quickly. This advancement simplifies data analysis and makes important information more accessible, even for non-technical staff.

In October 2023, Mews, a Netherlands-based software company, acquired Nomi for an undisclosed amount. This acquisition significantly boosts Mews' capacity to provide hyper-personalized guest experiences through AI and data insights while expanding its product offerings and talent base to foster innovation in hospitality technology. Nomi is a US-based AI startup specializing in travel and hospitality AI.

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.

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.

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

Travel and hospitality artificial intelligence (AI) refers to the use of AI technologies within the travel and hospitality industry to enhance customer experiences, streamline operations, and improve decision-making. This includes a range of technologies such as machine learning, natural language processing, robotics, and data analytics.

The main types of travel and hospitality AI encompass transportation and hospitality. Transportation AI focuses on technologies that enhance the efficiency and experience of moving people and goods. It is utilized both on the cloud and on-premises and includes AI, the Internet of Things (IoT), augmented reality (AR), virtual reality (VR), big data, and other technologies. Pricing models for these technologies include one-time payments and subscriptions, and the end users include travel agencies, transportation companies, corporations, and hotels.

The travel and hospitality AI market research report is one of a series of new reports that provides travel and hospitality AI market statistics, including travel and hospitality AI industry global market size, regional shares, competitors with a travel and hospitality AI market share, detailed travel and hospitality AI market segments, market trends and opportunities, and any further data you may need to thrive in the travel and hospitality AI industry. This travel and hospitality AI 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 travel and hospitality AI market includes revenues earned by entities by providing services such as personalized recommendations, chatbots and virtual assistants, predictive analytics, automated operations, and image and voice recognition. 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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