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Technological Advancements In Hotel Upselling Solutions Drive Revenue And Efficiency Trend: A Crucial Influence on the Hotel Automation System Market's Transformation in 2025

02-11-2025 08:10 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Hotel Automation System Market Overview

Hotel Automation System Market Overview

What Is the Expected Size and Growth Rate of the Hotel Automation System Market?
The market size of the hotel automation system has significantly expanded in the past few years. It is estimated to increase from $18.52 billion in 2024 to $19.77 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 6.8%. The historical growth is linked to the increased need for operational effectiveness, the higher use of cloud-based solutions, emphasis on improving guest experience, incorporation of Internet of Things (IoT) and Artificial Intelligence (AI), rigorous regulatory adherence, growth of online reservation platforms, and a transition towards eco-friendly methods.

The market size for hotel automation systems is projected to experience significant expansion in the coming years, predicted to reach $25.43 billion in 2029 with a compound annual growth rate (CAGR) of 6.5%. The boom in the stated period is due to factors such as rapid digitalization, the advent of non-touch technology, the need for predictive analysis, enhanced data protection systems, the incorporation of voice and gesture commands, the proliferation of mobile application integration, and the global growth of the hospitality industry. Predicted trends for the period include breakthroughs in AI, IoT incorporation for intelligent hotel rooms, a concentration on sustainability and energy efficiency, the emergence of robotics in guest services, AR and VR experiences, blockchain for secure transactions, and hybrid work situations.

What Factors Are Fueling Growth in the Hotel Automation System Market?
The hotel automation system market is forecasted to expand significantly due to the booming growth in the tourism and hospitality sectors. These sectors involve businesses and services that offer travel, accommodation, dining, entertainment, and recreational experiences to travelers and guests. This rapid expansion in tourism and hospitality can be attributed to rising disposable incomes that have enabled more individuals to afford travel and leisure activities. Progress in global travel has been supported by new developments such as online booking systems, travel applications, and digital advertising, making it easy and convenient for people to plan and book trips. Hotel automation systems further improve these sectors, enriching guest experiences through simplification and efficiency. They also assist hotels in controlling costs, enforcing operational protocols, and offering a comfortable, safe setting for guests. As per a January 2023 report by the American Hotel and Lodging Association, a US-based trade union that represents the hotel and lodge industry, the hotel occupancy rate in the country had reached 62.7%, marking a 9% rise from April 2022 against 2021's figures. The report also predicted that the average hotel occupancy rate in the United States might reach 63.8% by 2023. Thus, the surging growth of the tourism and hospitality sectors fuels the hotel automation system market.

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Which Leading Companies Are Shaping the Growth of the Hotel Automation System Market?
Major companies operating in the hotel automation system market are Oracle Corporation, Infor Hospitality Solutions, Sabre GLBL Inc., Urmet SpA, ASSA ABLOY Global Solutions, Pacific Controls, Agilysys Inc., Guestline Ltd., Maestro PMS, MSI Solutions, Springer-Miller Systems (SMS), protel hotelsoftware GmbH, SkyTouch Technology, Hotelogix Inc., StayNTouch Inc., RMS Cloud, InnQuest Software Corporation, RoomRaccoon Hotel Tech, Rezlynx by Guestline, SuitePad GmbH, Quore Systems LLC, BuildTrack, Frontdesk Anywhere, Clock Software Ltd., Hotello by Mingus Software Inc., StayFlexi Inc., Fastnet IoT, AutoClerk Inc., RoomKeyPMS

What Are the Major Trends Shaping the Hotel Automation System Market?
Major corporations in the hotel automation system marketplace are channeling their efforts on data analytics to devise personalized solutions such as hotel upselling software, with a vision to amplify guest experiences, propel revenue through amplified upsell possibilities, optimize operations, and establish a distinctive presence in a fiercely competitive hospitality environment. Custom-made hotel upselling software solutions augment the capacity of hotels to promote additional facilities and upgrades to their clientele in a precise and tailored fashion. For example, in April 2023, Oaky, a firm with bases in Amsterdam and Singapore that specializes in crafting upselling software specifically intended for hotels, unveiled a pioneering front desk upsell automation solution set to overhaul hotel revenue tactics by converting front desk personnel into proficient upselling specialists. Oaky furnishes real-time prompts and suggestions during guest registrations, simplifies segmentation, proffers dynamic pricing abilities, and provides comprehensive reports. This solution massively escalates upsell revenue (hotels experience a 3-9 times surge), encourages employee retention with increased commissions and gamification, and makes operations easier by diminishing manual labor.

What Are the Key Segments of the Hotel Automation System Market?
The hotel automation system market covered in this report is segmented -

1) By Type: Software, Hardware
2) By Deployment Type: Cloud Based, On Premises
3) By Application: Independent Hotel, Chain Hotel

Subsegments:
1) By Software: Property Management Systems (PMS), Booking And Reservation Systems, Channel Management Software, Revenue Management Systems (RMS), Guest Engagement And Mobile Apps, Point Of Sale (POS) Systems, Energy Management Software, Security And Surveillance Software
2) By Hardware: Room Control Systems, Keyless Entry Systems, In-Room Entertainment Systems, Self-Check-In Kiosks, Energy Management Devices, Digital Signage And Displays, Security Hardware

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Which Region Dominates the Hotel Automation System Market?
North America was the largest region in the hotel automation system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hotel automation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Hotel Automation System Global Market Report?

- Market Size Analysis: Analyze the Hotel Automation System Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Hotel Automation System 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 Hotel Automation System Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Hotel Automation System Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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