Major Force in the AI In Hospitality And Tourism Market 2025: Expanding Tourism Industry Fuels Growth Of AI in Hospitality And Tourism Market

How Will the AI In Hospitality And Tourism Market Grow, and What Is the Projected Market Size?
In recent times, the AI market for hospitality and tourism has seen significant growth. It's projected to escalate from a size of $15.69 billion in 2024 to $20.47 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 30.5%. The expansion through the historic period has been due to factors such as automation in customer service, bespoke services, management of revenue, increased operational efficiency, and predictive analytics.

The market size of AI in the hospitality and tourism sector is poised for substantial expansion over the upcoming years. It's anticipated to surge to $58.56 billion by 2029, reflecting a compound annual growth rate (CAGR) of 30.1%. This uptick during the prediction interval can be ascribed to improvements in customer service, business efficiency, data analysis, insightful recommendations, chatbots, and virtual assistants. Notable trends expected during this timeframe comprise tailored guest experiences, the increased use of chatbots and virtual assistants, demand forecasting through predictive analytics, improved security measures and fraud protection, as well as the application of robotic process automation (RPA).

What Is Contributing to the Growth of the AI In Hospitality And Tourism Market?
The expansion of the tourism industry is predicted to drive the application of artificial intelligence in the sector of hospitality and tourism. Comprising of activities and services tied to individuals traveling outside their usual surroundings for diverse reasons like leisure, business, or others, the tourism industry is on a rise due to factors such as enhanced global mobility, escalating disposable incomes, and an increasing fascination for distinctive travel experiences. Application of AI in the domain of tourism enhances customer service, makes operations more efficient, and personalizes travel experiences with the usage of advanced technology systems like chatbots, predictive analytics, and recommendation systems. For example, Statistics Canada, a government agency of Canada, reported in April 2024 that the expenditure by international tourists in Canada grew by 1.8% in the initial quarter, succeeding a 4.0% increase in the preceding quarter. The growth was primarily attributed to the expenditure on services related to accommodation and food and beverages, which both grew by 2.0%. Additionally, there was a 1.7% increment in the count of non-resident travelers entering Canada. Hence, the expanding tourism industry is predominantly driving the growth of AI implementation in the hospitality and tourism market segment.

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Who Are the Major Industry Players Fueling AI In Hospitality And Tourism Market Expansion?
Major companies operating in the AI in hospitality and tourism market are Google LLC, Microsoft Corporation, accenture* PLC, International Business Machines Corporation, Oracle Corporation, Salesforce com Inc., Tata Consultancy Services Limited (TCS), Capgemini SE, Infosys Limited, Adobe Inc., Booking Holdings Inc., HCL Technologies Limited, Expedia Group Inc., Wipro Limited, Amadeus IT Group, Sabre Corporation, Concur Technologies (SAP Concur), Travelport Worldwide Limited, Cvent Inc., Trivago N.V., Skyscanner Ltd., Mews Systems, Hopper Inc., Kayak Software Corporation, RateGain Technologies, Revinate Inc., Hotelogix

Which Key Developments Are Influencing the AI In Hospitality And Tourism Market?
Key players in the AI hospitality and tourism market, such as the generative AI sector, are intensifying their efforts to create innovative solutions to improve customer service in the hotel industry. Generative AI is a type of artificial intelligence system engineered to produce new content like text, images, music, or coding that imitates the creativity and intellect of humans. For example, in June 2024, a U.S.-based tech company known as Sabre Hospitality, entered the generative AI zone for the first time by launching its product SynXis Concierge.AI. This effort was envisioned to drastically transform the interaction between hotel managers and customers, providing immediate, comprehensive, and precise responses to inquiries by using Sabre's vast data repositories. Initially, it is decided that the tool will be applied by Sabre's delivery and customer care team to manage various customer-related activities that involve queries and resolving issues.

How Is the Segmentation of the AI In Hospitality And Tourism Market Defined?
The AI in hospitality and tourism market covered in this report is segmented -

1) By Type: Natural Language Processing (NLP) Applications, Machine Learning Algorithms, Computer Vision And Image Recognition, Chatbots And Virtual Assistants, Recommendation Systems, Sentiment Analysis
2) By Application: 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, Revenue Management And Pricing Optimization
3) By End-User: Hotels And Resorts, Airlines And Airports, Travel Agencies And Tour Operators, Restaurants And Food Service Providers, Cruise Lines And Maritime Tourism, Online Travel Platforms And Booking Websites

Subsegments:
1) By Natural Language Processing (NLP) Applications: Language Translation, Voice Recognition, Text Analysis, Speech-To-Text Conversion
2) By Machine Learning Algorithms: Predictive Analytics, Demand Forecasting, Dynamic Pricing Models, Customer Segmentation
3) By Computer Vision And Image Recognition: Facial Recognition For Check-In, Visual Quality Inspection, Object Detection In Security, Automated Identification For Guest Preferences
4) By Chatbots And Virtual Assistants: Customer Service Chatbots, Booking And Reservation Assistants, Travel Information Assistants, In-Room Virtual Assistants
5) By Recommendation Systems: Personalized Destination Recommendations, Activity And Event Suggestions, Dining And Cuisine Recommendations, Hotel Room And Amenity Recommendations
6) By Sentiment Analysis: Customer Feedback Analysis, Review Monitoring And Analysis, Brand Reputation Management, Social Media Sentiment Tracking

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What Is the Leading Region in the AI In Hospitality And Tourism Market?
North America was the largest region in the AI in hospitality and tourism market in 2023. The regions covered in the AI in hospitality and tourism market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The AI In Hospitality And Tourism Global Market Report?

- Market Size Analysis: Analyze the AI In Hospitality And Tourism Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the AI In Hospitality And Tourism Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall AI In Hospitality And Tourism Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the AI In Hospitality And Tourism Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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