Consumer Goods

AI in Hospitality Market is Expected to Reach USD 70.32 Billion by 2031

May 2024

Consumer Goods

As per the report published by Kings Research, the global AI in Hospitality Market was valued at USD 16.33 billion in 2023 and is projected to reach USD 70.32 billion by 2031, growing at a CAGR of 20.36% from 2024 to 2031.

AI algorithms play a pivotal role in revolutionizing the hospitality industry by allowing hotels to provide unparalleled personalized experiences to their guests. Through the analysis of vast amounts of data, AI algorithms can identify individual preferences, behaviors, and past interactions, thereby enabling hotels to tailor recommendations and services to meet the unique needs of each guest. From suggesting personalized amenities and activities to curating customized room settings based on guest preferences for lighting, temperature, and entertainment options, AI-driven personalization enhances guest satisfaction and loyalty, thereby driving repeat bookings and positive word-of-mouth referrals.

Key Insights

  • Based on technology, the chatbots or travel bots segment is expected to register the fastest CAGR of 26.28% over the forecast period
  • Based on hospitality type, the lodging-accommodation segment generated the highest revenue of USD 9.66 billion in 2023
  • By application, the travel choices segment is expected to witness a robust CAGR of 22.67% over the projection period
  • On the basis of region, Asia-Pacific is anticipated to experience a staggering CAGR of 22.98% through the estimated timeframe

Staynex Collaborated with Huawei to Enhance Travel & Hospitality Sector

July 2023: Staynex, a leading global vacation club platform, unveiled a collaboration with tech powerhouse Huawei to utilize Web3 technologies for elevating the travel and hospitality sector. This strategic alliance aims to provide users with an improved travel experience, featuring enhanced convenience and a wider array of options, powered by advanced AI tools.

Introduction of AI-powered Robots to Offer Lucrative Opportunities for Market Expansion

The introduction of AI-powered robots presents lucrative opportunities for the expansion of the AI in hospitality market by enhancing operational efficiency and guest experiences. These robots, equipped with advanced AI algorithms and sensors, perform a variety of tasks such as room service delivery, concierge assistance, and housekeeping duties with precision and efficiency. By automating routine tasks, AI-powered robots enable hotels to streamline operations, reduce labor costs, and improve service quality. Moreover, these robots engage guests in interactive experiences, providing information about hotel amenities, local attractions, and personalized recommendations. As hotels increasingly integrate AI-powered robots into their workforce to supplement operations and enhance guest services, the market is poised to witness significant expansion, thereby fostering innovation and differentiation in the hospitality industry.

Integrating AI with Smart Speakers and Voice Assistants to Augment  AI in Hospitality Market Growth

The integration of AI with smart speakers and voice assistants represents a transformative opportunity for the growth of the AI in hospitality sector. By utilizing natural language processing and voice recognition technologies, hotels deploy smart speakers and voice assistants in guest rooms to provide seamless and intuitive interactions. Guests use voice commands to control room amenities, request services, and access information, thereby enhancing convenience and satisfaction. Moreover, AI-powered voice assistants personalize recommendations and experiences based on guest preferences and past interactions, thereby improving the guest experience. As hotels utilize AI-driven technologies to revolutionize guest interactions and differentiate their offerings, the market is poised to experience substantial growth, driven by increased guest satisfaction, loyalty, and positive word-of-mouth referrals.

Asia-Pacific to Record a Staggering CAGR of 22.98% Between 2024 and 2031

Based on region, the global AI in the hospitality market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is poised to register a substantial CAGR of 22.98% in the foreseeable future, fueled by rapid urbanization, rising disposable incomes, and increasing tourism activities across the region. As emerging economies in Asia-Pacific continue to witness robust economic growth and infrastructure development, there is a growing demand for innovative hospitality solutions to cater to the evolving needs of both domestic and international travelers. Moreover, the proliferation of digital technologies and internet connectivity has facilitated the adoption of AI-powered solutions by hotels to enhance guest experiences and operational efficiency. With its vast population and diverse tourism offerings, Asia-Pacific presents significant growth opportunities, thereby driving investment, innovation, and regional market expansion in the forthcoming years.

Market Leaders Undertake Collaborations and Acquisitions for Sustained Growth

The global AI in hospitality market is fragmented with key players such as IBM Corporation, Microsoft, Amazon Web Services, Inc., Oracle, Google LLC, Intel Corporation, Cisco Systems, Inc., HCL Technologies Limited, Amadeus IT Group SA, and Salesforce, Inc., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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