The market size of the Global AI in Hospitality Market is predicted to show an 11.26% CAGR during the projected period.
As artificial intelligence (AI) advances, it becomes increasingly attractive and reliable as a commercial solution. AI is used by companies in the travel and hospitality industry to carry out a range of administrative and customer support activities. Most resorts and hotels rely heavily on offering top-notch customer service to establish their reputations. AI technology can help in many ways, including tailoring recommendations, enhancing personalization, and ensuring quick response times even when executives or staff are not present. The consequences of COVID-19 on the hospitality industry, the need to prevent human-to-human contact, and labour shortages have made incorporating robots into hotels and restaurants more critical. The industry is growing with the spike in demand for real-time improved guest experience management. The employment of cutting-edge technology in the hospitality sector is promoting industrial growth. To increase their security and level of hotel management, many hotels are choosing integrated security solutions, including access control, video surveillance, and emergency incident management systems. This, in turn, supports the market growth of the AI-based hotel industry. Market expansion is quickening due to low operating costs and alluring revenue growth. As IoT and energy management technologies gain traction, the industry is growing.
The sturdy initial implementation costs are impeding the market's capacity to grow. Industry expansion is being hampered by challenging integration across outdated networks and systems. The lack of technically qualified workers hampers the contraction of the market. Worldwide risks of digital data theft and personal data leaks are causing concern among hoteliers. AI-based hospitality solutions consider the guest's preferences and private information. Any data leak could have legal ramifications and undermine the hotel chain's reputation.
The AI in Hospitality Market is segmented on the basis of Technology, Hospitality Type, and Application. Based on Technology, the market is segmented as Machine Learning, Natural Language Processing, Chatbots or Travel bots, Blockchain, Big Data, Virtual Assistants, and Others. Based on Hospitality Type, the market is segmented as Food & Beverage, Lodging-Accommodation, and Others. Based on Application, the market is segmented as Customer Purchases, Travel Choices, Restaurants, Entertainment, Journey Patterns & Itinerary, and Others (Hotel Rating Inquiries, Payment Methods, Smart Controls).
Based on Technology, the Natural Language Processing segment is accounted as a major contributor to the AI in Hospitality Market.
Natural Language Processing is an important industry trending technology. The main benefits provided by these technologies include increased user experience, improved problem-solving abilities, improved customer contact, and advanced comprehension. Natural language processing is anticipated to be driven by rising demand for cloud-based NLP solutions to lower overall costs and improve scalability, as well as increasing smart device usage to support smart environments. Opportunities for NLP providers are anticipated as NLP-based solutions become more widely used across industries to improve customer experiences and as investments in the healthcare sector rise. The market for natural language processing is expanding due to the rising need for advanced text analytics, as well as the increasing use of the internet and linked devices.
Based on Application, the restaurants segment is accounted as a major contributor to the AI in Hospitality Market.
One important Application is restaurants, among others. The market will increase as a result of increasing customer and provider preference for technologically enhanced service solutions. The preference to minimize social contact and maintain social distance to prevent the spread of viruses will probably encourage industry penetration in hotels and restaurants. Additional advantages of adopting artificial intelligence in this sector include enhanced consumer behaviour, patterns, and input analytics. Resource usage will be optimized, and waste will be minimized with a choice that is more well-informed and based on real-time data and analytics. The global restaurant sector is expanding as a result of shifting consumer preferences and a rise in favourable global spending patterns. The discretionary income of those with higher propensities to spend on opulent habits, such as eating out, has increased.
The North America AI in Hospitality Market holds a significant revenue share in the region.
North America will likely dominate the market and will account for more than half of the global market in 2021. Regional growth has been driven by the abundance of suppliers and the swift uptake of digital technologies in consumer-focused firms. Major hotels in countries like the U.S. and Canada have already implemented AI-based hospitality management systems to boost tourist engagement. Market expansion will be aided by the deployment of artificial intelligence to enhance user interface and experience. Additionally, as more large hotel operators in this region adopt cutting-edge Technology like automation, artificial intelligence, and others, the market for AI-based hospitality management in North America is growing.
Some of the major key players in the AI in the Hospitality Market are IBM, KLM Airlines, Lola, Altexsoft, Hilton, Infosys, Cvent, Amadeus IT, Lemax, Sabre Corporation, Tramada System, mTrip, CRS Technologies, Qtech Software, and Navitaire.