Rising Tourism Boosts generative Artificial Intelligence (AI) In Hospitality For Enhanced Experiences Driver: A Major Catalyst in the Evolution of the Generative AI in Hospitality Market in 2025

How Is the Generative AI in Hospitality Market Projected to Grow, and What Is Its Market Size?
The market size for generative AI in the hospitality sector has witnessed massive growth recently. The market is projected to bloom from $24.08 billion in 2024 to $34.22 billion in 2025, reflecting a compound annual growth rate (CAGR) of 42.1% . The noteworthy growth during the historic timeframe is primarily due to the surge in the need for personalized guest experiences, the expansion of data availability and analytics capacities, the urge for operational efficiency and cost savings, a heightened customer expectation for automation, and enhancements in machine learning algorithms.

The market size for generative AI in the hospitality sector is set to witness an extraordinary increase in the coming years, with an expectation to reach $138.45 $ billion by 2029 at a 41.8% compound annual growth rate (CAGR). This anticipated growth during the projection period can be attributed to the advancement in smart technology infrastructure, improved integration capabilities with current systems, increase in customer preference for contactless services, the use of AI for more personalized guest experiences and the global growth of travel and tourism markets. During the projection period, key trends would include the development of AI-based dynamic pricing models, enhancement of virtual and augmented reality experiences, creation of more advanced AI chatbots, the growth of predictive analytics for guests behavior powered by AI, and embedding AI with Internet of Things (IoT) devices.

What Are the Key Drivers Behind the Growth of the Generative AI in Hospitality Market?
The expansion of the tourism industry is projected to drive the advancement of generative AI in the hospitality market. An increase in disposable income, better travel infrastructure, heightened worldwide connectivity, and a heightened consumer interest in exploration and unique experiences are all contributing to the growth of the tourism sector. Generative artificial intelligence (AI) can be a game-changer in this industry by tailoring guest experiences, bettering service provision, and optimizing operations to meet growing consumer expectations. As per the Office for National Statistics in the UK, for instance, in May 2024, overseas visitors in the UK expanded to 38.0 million trips, up from 31.2 million in 2022. These foreigners injected $39.74 billion (£31.1 billion) into the economy, a boost of $5.91 billion (£4.6 billion) from the preceding year. Meanwhile, UK citizens took as many as 86.2 million trips overseas, a spike from 71.0 million in 2022, spending an impressive $93.07 billion (£72.4 billion), $17.87 billion (£13.9 billion) more than the year prior. As such, the burgeoning tourism industry is aiding the progress of generative AI in the hospitality sector.

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Who Are the Major Industry Players Fueling Generative AI in Hospitality Market Expansion?
Major companies operating in the generative AI in hospitality market are Microsoft Corporation, Amazon Web Services Inc., accenture* plc, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., Fujitsu Limited, Salesforce Inc., NVIDIA Corporation, Google LLC (Google Cloud), NEC Corporation, Adobe Inc., Zebra Technologies Corporation, Amadeus IT Group SA, Persado Inc., Aisera, Master of Code Global, Asksuite Hotel Chatbot, 4Geeks LTD

Which Key Developments Are Influencing the Generative AI in Hospitality Market?
Major corporations in the generative AI in hospitality sector are concentrating on incorporating generative artificial intelligence (AI) to improve client engagement, optimize processes, and supply tailored services. Generative AI, a kind of artificial intelligence, produces novel content like text, images, or music, using patterns obtained from existing data. For example, in June 2024, the American hospitality technology firm Sabre Hospitality launched SynXis Concierge.AI, a tool that employs generative AI to create content via various inputs such as text and images. This progression lets the system offer responses independently from the direct knowledge of support agents. Harnessing the power of Sabre's vast data resources, SynXis Concierge.AI provides immediate and accurate responses to clientele inquiries, diminishing the dependency on support agents' skill and experience.

How Is the Segmentation of the Generative AI in Hospitality Market Defined?
The generative AI in hospitalitymarket covered in this report is segmented -

1) By Component: Software, Services
2) By Customer Size: Large Hotel Chains And Resorts, Small Boutique Hotels, Mid-Sized Hotels And Chains
3) By Application: Chatbots And Virtual Assistants, Personalized Recommendations, Demand Forecasting, Voice Assistants, Predictive Maintenance, Guest Experience Enhancement, Other Applications

Subsegments:
1) By Software: Customer Service Chatbots, Virtual Assistants, Personalized Recommendation Engines, Automated Content Creation Tools, Predictive Analytics Software
2) By Services: Consulting Services, Implementation And Integration Services, Support And Maintenance Services, Training And Development Services, Managed Services.

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What Is the Leading Region in the Generative AI in Hospitality Market?
North America was the largest region in the generative AI in hospitality market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in hospitality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Generative AI in Hospitality Global Market Report?

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

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