(Food-Beverage-News.Com, September 28, 2024 ) According to the latest research by InsightAce Analytic, the Global AI in Hospitality and Tourism Market is valued at US$ 16.2 Bn in 2023, and it is expected to reach US$ 167.0 Bn by 2031, with a CAGR of 34.7% during the forecast period of 2024-2031.
To improve many elements of guest experiences, operational efficiency, and business operations within hotels, restaurants, travel agencies, and related sectors, artificial intelligence (AI) refers to the integration of AI technologies and applications. This includes computer vision, machine learning (ML), data analytics, and natural language processing (NLP), among many other technologies. AI has several uses in the hospitality industry. Chatbots and virtual assistants, for example, can help with tailored visitor interactions and reservation processes. Recommendation systems can provide recommendations for unique experiences and facilities based on previous guest behavior and guest preferences. Additionally, computer vision makes facial identification possible for security reasons and improves the efficiency of check-in/out procedures, which has a good impact on the product outlook. Predictive analytics is also used for inventory management, demand forecasting, and dynamic pricing. List of Prominent Players in the AI in Hospitality and Tourism Market: • IBM Corporation • Google LLC • Amazon Web Services (AWS) • Microsoft Corporation • Oracle Corporation • Salesforce.com, Inc. • SAP SE • Intel Corporation • NVIDIA Corporation • Alibaba Group Holding Limited • Huawei Technologies Co., Ltd. • Accenture PLC • Cisco Systems, Inc. • Travelport Worldwide Limited • Amadeus IT Group S.A. • Expedia Group, Inc. • Airbnb, Inc. • Tripadvisor, Inc. • Booking Holdings Inc. • Agoda Company Pte. Ltd. • Ctrip.com International, Ltd. • MakeMyTrip Limited • TripAdvisor, Inc. • Kayak Software Corporation • Trivago N.V. • Others
Market Dynamics: Drivers: AI-driven chatbots improve the visitor experience by offering round-the-clock customer service, promptly answering questions, resolving problems, and helping with reservations. Convenience is increased when voice commands adjust the temperature, request services, and get information from speech-activated devices integrated into hotel rooms. Additionally, AI supports sustainable behaviors by optimizing resource utilization, cutting waste, and encouraging eco-friendly solutions. AI also improves AR and VR experiences, enabling passengers to explore hotels and destinations virtually before making a reservation. Therefore, promoting market expansion.
Challenges: Poor decision-making might result from AI systems' occasional inaccuracies or biases based on the data they are trained on. It is possible to be skeptical about the accuracy of AI systems, especially in urgent circumstances where human judgment might still be preferable. Integration is also challenging because a lot of the hotel and tourism industries still use outdated systems that are incompatible with AI advancements. Ensuring that AI systems integrate seamlessly with current platforms and tools can be difficult and resource-intensive.
Regional Trends: The North America AI in hospitality and tourism market is expected to register a major market share in terms of revenue and is projected to grow at a high CAGR in the near future. The growth of the AI in hospitality and tourism industry in the region is attributed to the presence of major players, high consumer expectations, technological advancements, innovative product launches, regulatory support and others. Besides, Europe had a substantial share in the market due to its developed economy and growing adoption of advanced products. Moreover, Europe remains one of the world's most popular travel destinations, drawing millions of tourists annually to nations like France, Italy, Spain, and the United Kingdom. The large number of tourists drives the need for AI technology to monitor and improve the visitor experience.
Recent Developments: • In June 2024, the travel IT company Amadeus added a chatbot to its Agency360 Plus data tool as the first step toward integrating Generative AI into its portfolio of business intelligence solutions. The chatbot will be able to respond to queries and requests for data in "natural language" and give hotel companies access to agency and corporate booking data via Microsoft's Azure OpenAI Service.
Segmentation of AI in Hospitality and Tourism Market AI in Hospitality and Tourism Market- By Type • Natural Language Processing • Machine Learning Algorithms • Computer Vision and Image Recognition • Chatbots and Virtual Assistants • Recommendation Systems • Sentiment Analysis AI in Hospitality and Tourism Market- By Application • Customer Service and Support • Personalized Marketing and Advertising • Hotel and Room Booking Systems • Virtual Concierge Services • Smart Guest Room Automation • Data Analytics and Business Intelligence • Revenue Management and Pricing Optimization AI in Hospitality and Tourism Market- By End User • Hotels and Resorts • Airlines and Airports • Travel Agencies and Tour Operators • Restaurants and Food Service Providers • Cruise Lines and Maritime Tourism • Online Travel Platforms and Booking Websites AI in Hospitality and Tourism Market- By Region North America- • The US • Canada • Mexico Europe- • Germany • The UK • France • Italy • Spain • Rest of Europe Asia-Pacific- • China • Japan • India • South Korea • South East Asia • Rest of Asia Pacific Latin America- • Brazil • Argentina • Rest of Latin America Middle East & Africa- • GCC Countries • South Africa • Rest of Middle East and Africa
About Us: InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
