Generative AI in Hospitality Market Report 2024

This Generative AI in Hospitality 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 Generative AI in hospitality market size has grown exponentially in recent years. It will grow from $16.98 billion in 2023 to $24.08 billion in 2024 at a compound annual growth rate (CAGR) of 41.8%. The growth during the historic period can be attributed to several factors such as a rising demand for personalized guest experiences, increased availability of data and advancements in analytics capabilities, the need for greater operational efficiency and cost reduction, heightened customer expectations for automation, and improvements in machine learning algorithms.

The Generative AI in hospitality market size is expected to see exponential growth in the next few years. It will grow to $97.69 billion in 2028 at a compound annual growth rate (CAGR) of 41.9%. The anticipated growth during the forecast period can be attributed to several factors such as the expansion of smart technology infrastructure, improved integration capabilities with existing systems, increasing consumer preference for contactless services, the growing use of AI for guest personalization, and the broader growth of global travel and tourism markets. Key trends expected in this period include the rise of AI-driven dynamic pricing models, the growth of virtual and augmented reality experiences, the development of more advanced AI-powered chatbots, increased use of AI-based predictive analytics for guest behavior, and the integration of AI with Internet of Things (IoT) devices.

The growing tourism sector is expected to drive the expansion of the Generative AI in hospitality market moving forward. The increase in tourism is fueled by rising disposable incomes, enhanced travel infrastructure, better global connectivity, and a growing consumer desire for new experiences and destinations. Generative AI enhances the tourism sector by personalizing guest experiences, optimizing service delivery, and streamlining operations to meet rising consumer demands. For example, in May 2024, the Office for National Statistics, a UK-based national statistical institute, reported that the UK saw an increase in overseas visitors, with 38 million trips in 2023 compared to 31.2 million in 2022. These visitors spent $39.74 billion (£31.1 billion), up by $5.91 billion (£4.6 billion) from the previous year. Meanwhile, UK residents took 86.2 million trips abroad, up from 71 million in 2022, and spent $93.07 billion (£72.4 billion), an increase of $17.87 billion (£13.9 billion) from the previous year. Thus, the expanding tourism sector is driving the growth of Generative AI in the hospitality market.

Leading companies in the Generative AI in hospitality market are focusing on integrating generative artificial intelligence (AI) to enhance guest interactions, streamline operations, and deliver personalized services. Generative AI creates new content, such as text, images, or music, based on patterns learned from existing data. For instance, in June 2024, Sabre Hospitality, a US-based hospitality technology provider, launched SynXis Concierge.AI, a tool that uses Generative AI to create content from inputs such as text and images. This innovation allows the system to generate responses without relying on the direct knowledge of support agents. Leveraging Sabre's extensive data resources, SynXis Concierge.AI provides immediate, accurate responses to customer queries, reducing dependence on support agents' knowledge and experience.

In January 2024, Duve, an Israel-based hospitality guest experience platform, acquired Easyway AI for an undisclosed amount. This acquisition represents a significant advancement in personalized hospitality technology, combining the strengths of both companies to enhance guest experiences worldwide and capitalize on the opportunities offered by generative AI. Easyway AI is an Israel-based company specializing in AI-powered hotel management software with AI agents based on generative AI.

Major companies operating in the Generative AI in hospitality market are Microsoft Corporation, Amazon Web Services Inc., Accenture plc, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., Fujitsu Limited, Salesforce Inc., NVIDIA Corporation, Google LLC (Google Cloud), NEC Corporation, Adobe Inc., Zebra Technologies Corporation, Amadeus IT Group SA, Persado Inc., Aisera, Master of Code Global, Asksuite Hotel Chatbot, 4Geeks LTD.

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

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

Generative artificial intelligence (AI) in hospitality involves the use of advanced AI technologies to create personalized and efficient guest experiences. This includes applications such as virtual concierges, chatbots, and recommendation systems designed to enhance customer service. By analyzing guest data, Generative AI can offer tailored recommendations, streamline operations, and boost overall satisfaction.

The primary components of Generative AI in hospitality are software and services. Software refers to sophisticated programs and platforms that use machine learning and AI algorithms to automate and improve tasks such as guest interactions, personalized recommendations, and operational efficiency, thereby enhancing overall service and experience. Generative AI in hospitality is suited to various customer sizes, including large hotel chains and resorts, small boutique hotels, and mid-sized hotels and chains. Key applications include chatbots and virtual assistants, personalized recommendations, demand forecasting, voice assistants, predictive maintenance, and guest experience enhancement, among others.

The Generative AI in hospitality market research report is one of a series of new reports that provides Generative AI in hospitality market statistics, including Generative AI in hospitality industry global market size, regional shares, competitors with a Generative AI in hospitality market share, detailed Generative AI in hospitality market segments, market trends and opportunities, and any further data you may need to thrive in the Generative AI in hospitality industry. This Generative AI in hospitality 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 Generative AI in hospitality market includes revenues earned by entities by providing services such as automated check-in and check-out systems, AI-driven concierge services, dynamic pricing optimization services, intelligent customer service management, and automated survey analysis. 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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