Hotel Automation System Market Report 2024

This Hotel Automation System market 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 hotel automation system market size has grown strongly in recent years. It will grow from $17.39 billion in 2023 to $18.52 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth observed during the historic period can be attributed to increasing demand for operational efficiency, rising adoption of cloud-based solutions, a focus on enhancing guest experience, growing integration of IoT and AI technologies, stringent regulatory compliance, the expansion of online booking platforms, and a shift toward sustainable practices.

The hotel automation system market size is expected to see strong growth in the next few years. It will grow to $23.9 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The growth anticipated during the forecast period can be attributed to accelerated digital transformation, the emergence of contactless technology, increased demand for predictive analytics, enhanced data security measures, integration of voice and gesture control, expansion of mobile app integration, and the global expansion of the hospitality sector. Major trends to watch include advancements in artificial intelligence, IoT integration for smart hotel rooms, a focus on sustainability and energy efficiency, the rise of robotics in guest services, augmented reality (AR) and virtual reality (VR) experiences, blockchain for secure transactions, and the development of hybrid work environments.

The rapid expansion of the tourism and hospitality sectors is anticipated to drive growth in the hotel automation system market. This sector includes businesses and services related to travel, accommodation, food and beverage, entertainment, and recreation for travelers and guests. The surge in tourism and hospitality is fueled by rising disposable incomes, which enable more people to afford travel and leisure activities. Additionally, advancements in international travel and innovations such as online booking platforms, travel apps, and digital marketing have made planning and booking trips more accessible and convenient. Hotel automation systems play a crucial role by simplifying and enhancing guest experiences, helping hotels manage costs, enforce operational standards, and ensure guest comfort and safety. For example, a report from the American Hotel and Lodging Association in January 2023 indicated that the hotel occupancy rate in the United States reached 62.7%, reflecting a 9% increase in April 2022 compared to 2021. The average hotel occupancy rate is projected to rise to 63.8% by 2023. Thus, the growth in the tourism and hospitality industries is a significant driver for the hotel automation system market.

Key players in the hotel automation system market are concentrating on data analytics for personalized solutions, such as hotel upselling software, to enhance guest experiences, increase revenue through upselling opportunities, streamline operations, and differentiate themselves in the competitive hospitality market. Personalized upselling software enables hotels to offer targeted and customized services and upgrades to guests. For instance, in April 2023, Oaky, a company based in Amsterdam and Singapore specializing in upselling software for hotels, introduced a new front desk upsell automation solution. This solution aims to transform front desk agents into effective upselling specialists by providing real-time prompts and recommendations during guest check-ins, streamlining segmentation, offering dynamic pricing, and delivering comprehensive reporting. The solution significantly boosts upsell revenue (3-9 times more for hotels), supports employee retention with higher commissions and gamification, and simplifies operations by reducing manual tasks.

In May 2024, Mews System Ltd., a Netherlands-based provider of hospitality technology and cloud-native property management systems, acquired HS3 Hotel Software for an undisclosed amount. This acquisition is intended to strengthen Mews System's presence and market penetration in the German hospitality industry. HS3 Hotel Software, based in Germany, offers hospitality automation solutions, including on-premises property management systems.

Major companies operating in the hotel automation system market are Oracle Corporation, Infor Hospitality Solutions, Sabre GLBL Inc., Urmet SpA, ASSA ABLOY Global Solutions, Pacific Controls, Agilysys Inc., Guestline Ltd., Maestro PMS, MSI Solutions, Springer-Miller Systems (SMS), protel hotelsoftware GmbH, SkyTouch Technology, Hotelogix Inc., StayNTouch Inc., RMS Cloud, InnQuest Software Corporation, RoomRaccoon Hotel Tech, Rezlynx by Guestline, SuitePad GmbH, Quore Systems LLC, BuildTrack, Frontdesk Anywhere, Clock Software Ltd., Hotello by Mingus Software Inc., StayFlexi Inc., Fastnet IoT, AutoClerk Inc., RoomKeyPMS.

North America was the largest region in the hotel automation system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hotel automation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the hotel automation system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Hotel automation systems are integrated technological solutions designed to enhance efficiency and the guest experience in hotels. These systems streamline operations through centralized management, improve security with advanced access controls, and provide convenience to guests through smart devices. They boost operational efficiency, reduce costs, and elevate the overall guest experience, making them a valuable investment for modern hospitality businesses.

The main types of hotel automation systems include software and hardware. Software refers to digital programs and applications used to manage and control various aspects of hotel operations, such as room bookings, guest services, and facility management. Deployment types include cloud-based solutions, on-premises systems for independent hotels, and applications suited for chain hotels.

The hotel automation system market research report is one of a series of new reports that provides hotel automation system market statistics, including hotel automation system industry global market size, regional shares, competitors with an hotel automation system market share, detailed hotel automation system market segments, market trends and opportunities, and any further data you may need to thrive in the hotel automation system industry. This hotel automation system 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 hotel automation system market consists of revenues earned by entities by providing services such as automated room control systems, energy management solutions, advanced security and access control, centralized management platforms, and personalized guest experience enhancements. The market value includes the value of related goods sold by the service provider or included within the service offering. The hotel automation system market also includes sales of products such as smart thermostats, automated lighting systems, smart locks, energy management systems, centralized control panels, in-room entertainment systems, and integrated communication devices. 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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