Discover trends, market shifts, and competitive outlooks for the travel and hospitality ai industry through 2025-2034 with The Business Research Company’s reliable data and in-depth research

What Are the Projected Market Size and Growth Rates for the Travel And Hospitality AI Market From 2025 To 2029?

There has been a significant expansion in the artificial intelligence (AI) market in the travel and hospitality industry in the past years. It is forecasted to rise from $0.85 billion in 2024 to $0.93 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.5%. This growth over the historic period can be credited to factors such as heightened customer demands, advancements in technology, the implementation of big data analytics, increasing mobile and internet utilization, and improved operational efficiency.

The artificial intelligence market in the travel and hospitality sector is set to experience robust expansion in the coming years, reaching a market value of $1.32 billion in 2029, growing at a compounded annual growth rate (CAGR) of 9.3%. This expected growth during the forecast period is due to a surge in the need for customization, improved customer services, operational effectiveness, predictive analysis, protection against fraud, and security enhancements. The forecast period will also see significant trends such as individualized customer interactions, the introduction of chatbots and virtual assistants, predictive analytics for demand prediction, improved fraud detection and security, and the advent of smart hotel rooms.

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Which Primay Drivers Are Accelerating Growth in the Travel And Hospitality AI Market?

The projected expansion of the travel and hospitality AI market is linked to the escalating demand for personalized experiences. Such experiences, which are carefully adapted to fulfill a person’s unique preferences, behaviors, and requirements, heighten their engagement and satisfaction by making them feel exclusive. The call for such customized interactions is growing as customers’ expectations for personalized engagements that boost satisfaction increases. AI in the travel and hospitality sector assists in enhancing these personalization by scrutinizing data to devise customized itineraries, suggestions, and facilities that meet distinctive choices and necessities. As an example, a survey was conducted by Salesforce Inc., an American software firm, on 5,000 consumers in January 2023; it revealed that within the next year, 81% of the consumers intended to reevaluate their budgets to find more personalized experiences. In terms of the hospitality sector, it was stated by 72% of individuals that they would maintain loyalty to firms offering quicker services. Similarly, 65% declared their loyalty would persist with entities providing more personalized experiences. Hence, the growing demand for personalization is fueling the expansion of the travel and hospitality AI sector.

What Segment Types Define the Travel And Hospitality AI Market Structure?

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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Which Regions Are Key Players in the Growth of 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.

Which Emerging Trends that Are Influencing the Travel And Hospitality AI Industry Evolution?

Leading corporations in the AI travel and hospitality market are concentrating on developing unique products, like generative artificial intelligence, to maintain their market stance. Generative artificial intelligence is an AI system that can generate personalized content, such as personalized travel plans, adaptable pricing strategies, and customized promotional materials, enhancing client experiences and operational productivity in the industry. For instance, in January 2024, Amadeus IT Group, S.A., a technology company based in Spain, allied with Microsoft Corporation, an American technology business, to launch an innovative AI-assisted technology aimed at renovating hotel business intelligence. This new approach uses generative AI to enhance hotel operators’ capability to access and comprehend crucial business intelligence data more effectively. The key feature of this technology is the Amadeus Advisor chatbot, which employs the Azure OpenAI Service to enable natural language inquiries, allowing users to swiftly and intuitively extract intricate data insights. This progress not only streamlines the data interpretation process but also renders crucial information more attainable, facilitating even non-technical personnel to effectively interact with the data.

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What Is the Definition of the Travel And Hospitality AI Market?

Travel and hospitality artificial intelligence (AI) refers to the application of artificial intelligence technologies in the travel and hospitality industry to enhance customer experiences, streamline operations, and improve decision-making processes. AI in this context includes a range of technologies such as machine learning, natural language processing, robotics, and data analytics.

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