AI in Travel and Hospitality: Introduction
- Artificial Intelligence (AI) is developing, making it more attractive and reliable as a business solution. Businesses in the travel and hospitality sector are taking advantage of AI in order to perform a variety of administrative and customer service tasks.
- Majority of resorts and hotels rely heavily to provide excellent customer service build their reputation and AI technology can assist in a variety of different ways ranging from tailoring recommendations, improving personalization, and guaranteeing fast response times, even in the absence of executives or staff.
- The travel and hospitality sector is adopting modern technology along with artificial intelligence (AI) and machine learning (MI) that is expected to boost the market size over the forecasted timeframe.
- Artificial intelligence plays an important role in travel and hospitality management due to its ability to carry out human functions at any time of the day. This potentially means that hotel owners can eliminate human error, save money, and deliver superior service.
Global AI in Travel and Hospitality Market: Dynamics
Global AI in Travel and Hospitality Market: Key Drivers
- Several smart technologies that includes facial recognition offer hassle-free check-ins at airports without any assessment of documentation by the customs department and immigration facility. These applications for facial recognition also provide visitors with digital privacy.
- The implementation of artificial intelligence and machine learning in the travel and hospitality sector has wide implications for enriching the end-user experience of guests and offers the option of dynamic pricing.
- As per the 2017 Air Transport Report by SITA, 52% of airlines and 45% of airports were planning to invest in large AI or ML based programs in the next 3 to 5 years.
- However, AI in the travel and hospitality market faces several restraints and challenges. The significant concern about the implementation of AI in some of the main fields, such as data security and safety issues. For instance, the use of Blockchain technologies in facial recognition application guarantees data security and data protection. However, several countries are still cautious about using the facial recognition technology due to data security and privacy concerns.
Impact of COVID-19 on the Global AI in Travel and Hospitality Market
- Covid-19 has had a big influence on the hospitality and travel industry. Lockdowns and travel bans are in place, enforced by several nations. Many corporate activities and vacation outings have had to be delayed or cancelled due to work uncertainties and business limitations.
- Many travel firms are facing a drastic drop in business. For instance, airlines slashed their schedule by around 50 percent (or more) and restaurants and hotels worldwide face occupancy drops of approximately 90 percent and are even ordered to close in some cases.
- Many competitions and sports activities have been suspended and postponed, including the Olympic Games, the UEFA EURO 2020, and the ITB Berlin.
Asia Pacific to Account for Large Share of the Global AI in Travel and Hospitality Market
- In terms of region, the global AI in travel and hospitality market can be divided into North America, South America, Europe, Asia Pacific, and Middle East & Africa.
- Geographically, the Asia Pacific region is projected to witness significant growth in the market over the coming years. The market growth can be attributed to various factors that include speedy infrastructure development across seaports, airports, hotels, railroads, highways, and others coupled with the combination of technologically advanced technologies such as Blockchain, Internet of things, and artificial intelligence.
- Europe is expected to hold a major share of the market owing to deployment of AI that eases the task of booking hotel rooms, booking tickets for flights, minimizing the purchase process, overcoming challenging travel choices, and providing a more comfortable experience.
Global AI in Travel and Hospitality Market: Competition Landscape
- Industry participants engaged in the market have been focusing on inorganic development strategies that involve collaboration, mergers, partnerships, and acquisition with smaller firms to enhance their service portfolios and gain a major share of the market. Moreover, players in the market are constantly engaged in research & development activities to develop new technologies that will fulfill the requirements of customers and retain their customer base.
Key Players Operating in the Global AI in Travel and Hospitality Market Include:
- Amadeus IT
- CRS Technologies
- Sabre Corporation
- Qtech Software
- Tramada Systems
- Travelport International
Global AI in Travel and Hospitality Market: Research Scope
Global AI in Travel and Hospitality Market, by Type
- Personal Travel
- Business or Professional Travel
Global AI in Travel and Hospitality Market, by Technology
- Machine Learning
- Natural Language Processing
- Chatbots or Travel Bots
- Big Data
- Virtual Assistants
- In Person Customer Service
- Data Analysis
Global AI in Travel and Hospitality Market, by Form of Travel
- Air Travel
- Marine Travel
- Rail Travel
- Road Travel
Global AI in Travel and Hospitality Market, by Application
- Hospitality Applications
- Travel Applications
Global AI in Travel and Hospitality Market, by End-Users
- Tourism Industry
- Hospitality Industry
- Aviation Industry
- Shipping & Shipbuilding Industry
- Transportation& Logistics Industry
- Entertainment Industry
Global AI in Travel and Hospitality Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.