The AI in Hospitality and Tourism Market Size was valued at USD 16.2 Bn in 2023 and is predicted to reach USD 167.0 Bn by 2031 at a 34.7% CAGR during the forecast period for 2024-2031.
Artificial Intelligence (AI) in hospitality and tourism pertains to the utilization of AI technology to improve the overall experience, efficiency, and personalization in these industries. This involves using AI to manage operations, market, provide customer service, and analyze data, among other tasks. The hospitality and tourist industries may optimize their operations and spur growth by incorporating AI technologies, providing clients with more efficient, memorable, and personalized experiences. Visitors look for distinctive and customized experiences. AI assists in the analysis of consumer data to deliver personalized services and recommendations that increase customer loyalty and satisfaction.
The market growth is being driven by several factors including technological advancements, increasing demand for personalization, operational efficiency and cost reduction, enhanced customer service, integration of big data analytics and many others. However, high costs and privacy and security concerns are expected to hinder market growth during the forecast period.
Competitive Landscape
Some of the Major Key Players in the AI in Hospitality and Tourism Market are
- IBM Corporation
- Google LLC
- Amazon Web Services (AWS)
- Microsoft Corporation
- Oracle Corporation
- Salesforce.com, Inc.
- SAP SE
- Intel Corporation
- NVIDIA Corporation
- Alibaba Group Holding Limited
- Huawei Technologies Co., Ltd.
- Accenture PLC
- Cisco Systems, Inc.
- Travelport Worldwide Limited
- Amadeus IT Group S.A.
- Expedia Group, Inc.
- Airbnb, Inc.
- Tripadvisor, Inc.
- Booking Holdings Inc.
- Agoda Company Pte. Ltd.
- Ctrip.com International, Ltd.
- MakeMyTrip Limited
- TripAdvisor, Inc.
- Kayak Software Corporation
- Trivago N.V.
- Others
Market Segmentation:
The AI in hospitality and tourism market is segmented based on type, application, and end user. Based on type, the market is segmented as natural language processing, machine learning algorithms, computer vision and image recognition, chatbots and virtual assistants, recommendation systems and sentiment analysis. By application, the market is segmented into 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 and revenue management and pricing optimization. Based on end users, the industry is bifurcated into hotels and resorts, airlines and airports, travel agencies and tour operators, restaurants and food service providers, cruise lines and maritime tourism and online travel platforms and booking websites.
Based On Type, The Chatbots And Virtual Assistants Segment Is Accounted As A Major Contributor To The AI In Hospitality And Tourism Market
The chatbots and virtual assistants segment is expected to hold a major share of the global AI in hospitality and tourism market. Without requiring human assistance, chatbots and virtual assistants offer 24/7 customer support by managing questions, reservations, and other duties. This guarantees that visitors may get help whenever they need it, improving their entire experience. These artificial intelligence (AI) products are especially useful in the global hospitality and tourism sector where visitors come from a variety of linguistic backgrounds since they can be taught to understand and reply in numerous languages. The market is growing because of these uses.
The Customer Service and Support Segment Witnessed Growth at a Rapid Rate
Customer service and support are projected to grow at a rapid rate in the global AI in hospitality and tourism market. Artificial intelligence (AI)-powered customer support platforms may resolve typical problems including check-in information, cancellation rules, and booking revisions as well as frequently asked questions (FAQs) without requiring human assistance. AI may also prioritize and triage requests for more complicated problems, sending them to the right human agents and increasing the effectiveness of the customer care process.
In the Region, North America AI in Hospitality and Tourism Market Holds a Significant Revenue Share.
The North America AI in hospitality and tourism market is expected to register the highest market share in terms of revenue in the near future. High adoption rates of AI technologies, a strong emphasis on improving customer experience, and sophisticated technological infrastructure are driving the industry's major expansion in North America's hotel and tourism sector. The area is home to numerous cutting-edge startups and top IT firms that are accelerating the adoption of AI in the travel and hospitality industries. In addition, Asia Pacific is projected to grow at a rapid rate in the global AI in hospitality and tourism market due to rapid digital transformation. Moreover, travel destinations in the Asia Pacific area are among the fastest growing in the globe, with China, Japan, Thailand, and Australia leading the way in terms of foreign visitor arrivals. The need for cutting-edge AI solutions to handle the growing number of tourists and improve their experiences is fueled by this growth.
Recent Developments:
- In June 2024, the travel IT company Amadeus added a chatbot to its Agency360 Plus data tool as the first step toward integrating Generative AI into its portfolio of business intelligence solutions. The chatbot will be able to respond to queries and requests for data in "natural language" and give hotel companies access to agency and corporate booking data via Microsoft's Azure OpenAI Service.
AI in Hospitality and Tourism Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 16.2 Bn |
|
Revenue Forecast In 2031 |
USD 167.0 Bn |
|
Growth Rate CAGR |
CAGR of 34.7% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Million and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Type, By Application, By End-user and By Region |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
IBM Corporation, Google LLC, Amazon Web Services (AWS), Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, Intel Corporation, NVIDIA Corporation, Alibaba Group Holding Limited, Huawei Technologies Co., Ltd., Accenture PLC, Cisco Systems, Inc., Travelport Worldwide Limited, Amadeus IT Group S.A., Expedia Group, Inc., Airbnb, Inc., Tripadvisor, Inc., Booking Holdings Inc., Agoda Company Pte. Ltd., Ctrip.com International, Ltd., MakeMyTrip Limited, Kayak Software Corporation, Trivago N.V., and Others. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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