Artificial Intelligence (AI) in Travel Market Report 2024

This Artificial Intelligence (AI) In Travel 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 artificial intelligence (AI) in travel market size has grown exponentially in recent years. It will grow from $92.46 billion in 2023 to $123.72 billion in 2024 at a compound annual growth rate (CAGR) of 33.8%. The growth during the historic period can be attributed to the rise of digital transformation, increased demand for personalized travel experiences, a greater need for enhanced operational efficiency, a heightened focus on security and safety, the proliferation of mobile and wearable technology, and a stronger push for automation in customer service.

The artificial intelligence (AI) in travel market size is expected to see exponential growth in the next few years. It will grow to $397.86 billion in 2028 at a compound annual growth rate (CAGR) of 33.9%. The growth during the forecast period can be attributed to the rising demand for personalized travel experiences, increased adoption of contactless technologies, growing need for enhanced security and safety protocols, expansion of smart infrastructure in travel hubs, and the increasing use of AI-driven analytics for operational efficiency. Major trends expected include the adoption of AI-driven personalization, autonomous vehicles and AI-powered robots, AI-powered chatbots and virtual assistants, AI-driven predictive analytics, and advancements in contactless technologies.

The expansion of global tourism is expected to drive growth in the artificial intelligence (AI) in travel market. Global tourism encompasses international travel for leisure, business, or other purposes, which promotes cultural exchange, economic development, and global connections. Factors such as increased disposable incomes, easier international travel access, a heightened interest in exploring new destinations, and advancements in travel technology contribute to the rise in global tourism. AI in travel enhances the tourism experience by offering personalized recommendations, automating bookings, and improving customer service, leading to better traveler experiences and operational efficiency. For example, the World Travel and Tourism Council reported in 2024 that in 2023, the travel and tourism sector represented 9.1% of global GDP, reflecting a 23.2% increase from 2022. Thus, the growth in global tourism is propelling the AI in travel market.

Companies in the AI travel sector are focusing on technological innovations, such as integrating AI into personalized travel services to enhance customer experiences. AI in personalized travel uses technology to analyze user data and preferences, providing tailored recommendations for destinations, accommodations, and activities. For instance, in May 2024, Expedia Group Inc., a US-based travel technology firm, introduced Romie, an AI-powered travel assistant. Romie acts as a personal travel agent, assisting with planning, booking, and managing last-minute changes. It adapts to user preferences over time to offer personalized recommendations and includes features for group chat planning, smart search, and itinerary management.

In May 2024, Headout, a US-based platform for tours and activities, acquired Dabble for an undisclosed amount. This acquisition aims to enhance Headout's goal of delivering exceptional real-life experiences through advanced AI technology. Dabble, a Canada-based startup, specializes in leveraging AI to improve the search for travel experiences.

Major companies operating in the artificial intelligence (AI) in travel market are International Business Machines Corporation, Expedia Group Inc., Priceline.com, Booking.com B.V., Airbnb Inc., Sabre Corporation, TripAdvisor Inc., Agoda Company Pte. Ltd., SAP Concur, Travelport Worldwide Ltd., Hotelbeds Group, Skyscanner Ltd., Trivago N.V., MakeMyTrip Limited, Fareportal, Kayak Software Corporation, Despegar.com Inc., Cendyn Group LLC, Hopper, Cleartrip Private Limited, Sojern Inc., OTA Insight Ltd., Adara Inc., Viator Inc., Duetto.

North America was the largest region in the artificial intelligence (AI) in travel market in 2023. The regions covered in the artificial intelligence (AI) in travel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence (AI) in travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial Intelligence (AI) in travel involves using AI technologies to improve and personalize the travel experience, covering aspects such as booking, customer service, and itinerary management. AI enhances travel through personalized recommendations, dynamic pricing, predicting travel trends, language translation, facial recognition, and managing travel itineraries.

The primary components in the AI in travel market are software and services. AI software includes specialized programs and algorithms that automate and enhance different facets of the travel industry. These solutions are deployed through both on-premises and cloud-based systems, and serve various applications such as customer service, booking and reservations, travel planning and personalization, marketing and advertising, operations management, and security and fraud detection.

The artificial intelligence (AI) in travel market research report is one of a series of new reports that provides artificial intelligence (AI) in travel market statistics, including the artificial intelligence (AI) in travel industry global market size, regional shares, competitors with artificial intelligence (AI) in travel market share, detailed artificial intelligence (AI) in travel market segments, market trends, and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in travel industry. These artificial intelligence (AI) in travel market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial intelligence (AI) in travel market includes revenues earned by entities by providing services such as personalized recommendations, virtual assistants and chatbots, dynamic pricing, and predictive analytics for travel demand. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in travel market also includes sales of kiosks and self-service terminals and robotic assistants. 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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