Travel And Hospitality AI Market Forecast 2025-2034: Analysing Major Trends, Opportunities, and Growth Drivers

How Will the Travel And Hospitality AI Market Grow, and What Is the Projected Market Size?
There has been robust growth in the size of the AI market in the travel and hospitality sector in recent years. From $0.85 billion in 2024, it is predicted to increase to $0.93 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 9.5%. Historic growth in this market can be traced back to expanding customer expectations, advances in technology, utilisation of big data analytics, increasing mobile and internet usage, and gains in operational efficiency.

The AI market in the travel and hospitality sector is projected to experience considerable expansion in the upcoming years, with an anticipated value of $1.32 billion in 2029, growing at a 9.3% Compound Annual Growth Rate (CAGR). The growth throughout the predicted period is largely due to an increased demand for tailor-made services, superior customer service, operational effectiveness, predictive analysis, fraud prevention and security. Key trends anticipated during this period encompass customized customer experiences, the use of chatbots and virtual assistants, predictive analytics for future demand projection, improved safety and fraud detection measures, and the advent of intelligent hotel rooms.

What Key Elements Are Boosting Growth in the Travel And Hospitality AI Market?
The escalating need for personalized experiences is projected to stimulate the expansion of the AI market in the travel and hospitality sector. Personalized experiences, which are unique interactions, services, or products attuned to one's tendencies, behaviors, and requirements, boost engagement and satisfaction by making the individual feel singularly valued. The rise in the demand for such experiences can be attributed to consumers' growing anticipation for custom-made interactions that augment satisfaction and engagement. AI in travel and hospitality sectors elevates these personalized experiences by analyzing data to develop tailored agendas, suggestions, and amenities that match personal preferences and demands. To illustrate, a survey by Salesforce Inc., a US-based software firm, carried out in January 2023 with 5,000 consumers, revealed that 81% of the surveyed consumers intended to reassess their budgets within the forthcoming year for more personalized experiences. Seventy-two percent from hospitality industry cited faster service as the reason to retain their loyalty towards certain companies while 65% expressed loyalty for companies offering more customized experiences. Consequently, the accelerating demand for personalized experiences is steering the growth in the travel and hospitality AI market.

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Who Are the Major Industry Players Fueling Travel And Hospitality AI Market Expansion?
Major companies operating in the travel and hospitality AI 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 Travel And Hospitality AI Market?
Leading organizations in the AI landscape for travel and hospitality are concentrating on the development of novel solutions like generative artificial intelligence to strengthen their market stand. Generative AI involves systems that can generate personalized content like custom travel plans, variable pricing strategies, and bespoke marketing content, thereby improving customer experience and operational effectiveness in the sector. For instance, Amadeus IT Group, S.A., an IT firm based in Spain, collaborated with the US-based Microsoft Corporation in January 2024, to unveil an advanced AI technology aimed at updating hotel business intelligence. This pioneering effort employs generative AI to enhance hotel business operators' proficiency in accessing and deciphering vital business intelligence data. The core of this technology is the Amadeus Advisor chatbot, leveraging the Azure OpenAI service to enable natural language inquiries, thereby making it simple for users to swiftly and naturally derive complex data insights. This innovation not only streamlines the data interpretation process but also democratizes access to crucial information, enabling even non-tech staff to effectively interact with the data.

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

1) By Type: Transportation, Hospitality
2) By Deployment Model: Cloud, On-Premises
3) By Technology: Artificial Intelligence (AI), Internet Of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), Big Data, Other Technologies
4) By Pricing Model: One Time Payment, Subscription
5) By End Users: Travel Agencies, Transportation Companies, Corporations, Hotels

Subsegments:
1) By Transportation: AI In Autonomous Vehicles, AI For Traffic And Route Optimization, AI In Air Traffic Management, AI For Predictive Maintenance, AI-Powered Ride-Hailing Services, AI For Travel Planning And Route Suggestions
2) By Hospitality: AI-Powered Virtual Assistants And Chatbots, AI For Personalized Customer Experiences, AI In Reservation And Booking Systems, AI For Pricing And Revenue Optimization, AI-Driven Customer Feedback And Sentiment Analysis, AI In Hotel And Resort Operations

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

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

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

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