PUBLISHER: The Business Research Company | PRODUCT CODE: 1681773
PUBLISHER: The Business Research Company | PRODUCT CODE: 1681773
Artificial intelligence (AI) in hospitality refers to integrating artificial intelligence technologies and solutions in the hospitality industry to enhance guest experiences, streamline operations, and optimize various aspects such as customer interactions, service delivery, and business processes. It involves the application of machine learning, natural language processing, chatbots, blockchain, big data analytics, and other emerging technologies to improve efficiency, provide personalized services, and innovate across diverse segments, including accommodation, dining, entertainment, and customer interactions.
The main technology types in artificial intelligence (AI) in hospitality are machine learning, natural language processing, chatbots or travel bots, blockchain, big data, and others. Machine learning in AI for hospitality involves computers learning from data to make predictions or decisions without explicit programming and enables systems to analyze patterns, adapt to changing circumstances, and enhance guest experiences. The hospitality types are categorized into food and beverage, lodging or accommodation, and others. The application includes customer purchases, travel choices, restaurants, entertainment, journey patterns and itineraries, and others.
The main technology types in artificial intelligence (AI) in hospitality are machine learning, natural language processing, chatbots or travel bots, blockchain, big data, and others. Machine learning in AI for hospitality involves computers learning from data to make predictions or decisions without explicit programming and enables systems to analyze patterns, adapt to changing circumstances, and enhance guest experiences. The hospitality types are categorized into food and beverage, lodging or accommodation, and others. The application includes customer purchases, travel choices, restaurants, entertainment, journey patterns and itineraries, and others.
The artificial intelligence (AI) in hospitality market size has grown exponentially in recent years. It will grow from $0.15 billion in 2024 to $0.24 billion in 2025 at a compound annual growth rate (CAGR) of 57.0%. The growth in the historic period can be attributed to increasing demand for enhanced customer experience, growing adoption of chatbots and virtual assistants, potential of AI in travel and hospitality, advanced analytics and ai-enabled robots could tackle many on-property functions in the hospitality industry.
The artificial intelligence (AI) in hospitality market size is expected to see exponential growth in the next few years. It will grow to $1.46 billion in 2029 at a compound annual growth rate (CAGR) of 57.8%. The growth in the forecast period can be attributed to generative AI for dynamic content generation, IoT, blockchain, and cloud integration, guest experience enhancement, and rising consumer demand. Major trends in the forecast period include significant market growth, adoption of advanced technologies, focus on personalization and customer service, challenges and concerns, and optimization of operations.
The growing digitalization in the hospitality industry is expected to drive the growth of the artificial intelligence (AI) in hospitality market. Digitalization in this sector refers to the widespread integration and use of digital technologies to improve and transform various hospitality services. As businesses in the industry increasingly adopt advanced technologies, there is a rising demand for AI solutions to further optimize operations, enhance efficiency, personalize guest experiences, and improve decision-making through data-driven insights. For example, in September 2022, Boston Consulting Group, Inc., a US-based management consulting firm, reported that nearly half of travel and tourism companies have successfully undergone digital transformations, which is 25% higher than the average across other industries. Therefore, the rise in digitalization within the hospitality industry is set to boost the growth of AI in the hospitality market.
Major companies operating in artificial intelligence (AI) in the hospitality market are developing advanced technologies for hotels and resorts, such as AI and ML platforms, to better serve customers with advanced features. An AI and ML platform for hotels and resorts leverages advanced algorithms to streamline operations, enhance guest experiences, and optimize decision-making processes through data-driven insights. For instance, in March 2022, Revnomix Hotel Data, an India-based hotel revenue management company, launched RevSeed 2.0, a new version of RevSeed that is based on artificial intelligence (AI) and machine learning (ML), aiming to provide real-time analysis of the market and demand, assist in making strategic price decisions for hotel rooms and services, and offer revenue management strategies such as volume, rate, market-linked, and other strategies.
In October 2023, Mews, a Netherlands-based hospitality management cloud company, acquired Nomi for an undisclosed amount. This acquisition will enable hoteliers to understand their guests better, make data-informed operational decisions, and provide enhanced guest experiences. Nomi is a US-based hospitality startup that provides an AI-driven personalized travel recommendation guidebook for travelers.
Major companies operating in the artificial intelligence (AI) in hospitality market are Google LLC, Alibaba Group Holding Limited, Huawei Technologies Co. Ltd., Amazon Web Services Inc., Intel Corporation, International Business Machines (IBM) Corporation, Cisco Systems Inc., Microsoft Corporation, Oracle Corporation, NVIDIA Corporation, Salesforce Inc, NEC Corporation, Infosys Limited, HCL Technologies Limited, KLM Royal Dutch Airlines, AltexSoft Inc, Hilton Worldwide Holdings Inc, Amadeus IT, Sabre Corporation, CRS Technology, Cvent Holding Corp, Navitaire, Lemax, Tramada System, Lola, mTrip, Qtech Software, Infor Inc
North America was the largest region in the artificial intelligence (AI) in hospitality market in 2024. The regions covered in the artificial intelligence (ai) in hospitality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the artificial intelligence (AI) in hospitality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence (AI) in hospitality market includes revenues earned by entities by providing guest assistance services, personalization services, operational optimization services, reservation and booking services, predictive analytics services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) hospitality market consists of sales of biometric authentication systems, data analytics platforms, customer relationship management (CRM) software, and smart room controls. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence (AI) In Hospitality Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence (ai) in hospitality market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence (ai) in hospitality ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The artificial intelligence (ai) in hospitality market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.