(I-BusinessNews.Com, June 12, 2021 ) The Travel and Hospitality AI Market is estimated to surpass $1.2 billion mark by 2026 growing at an estimated CAGR of more than 9.7% during the forecast period 2021 to 2026. Most hotels and resorts rely heavily on delivering excellent customer service to build their reputation and AI technology can assist with this in a wide variety of different ways ranging from improving personalisation, tailoring recommendations and guaranteeing fast response times, even in the absence of staff. The turmoil in Corona (COVID-19) has had a big influence on the hospitality and travel industry. (Partial) lockdowns and travel bans have been placed in effect by several nations. Many competitions have been postponed, including the UEFA EURO 2020, the Olympic Games and the ITB Berlin, the world's biggest travel trade show. A large amount of 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 dramatic drop in business. For instance, airlines slash their schedule by as much as 50 percent (or more) and restaurants and hotels worldwide face occupancy drops of up to 90 percent and are even ordered to close in some cases.
Travel and Hospitality AI Market Segment Analysis - By Type
Transportation segment held the highest market share in 2020 and it is anticipated to witness significant market growth during the forecast period 2021-2026 with a CAGR of 9.15%. The transportation industry is becoming leaner, quicker, tech-enabled, and data-driven. Leveraging AI in transportation helps the sector increase passenger safety, reduce traffic congestion and accidents, lessen carbon emissions, and also minimize the overall financial expenses. The capacity for artificial intelligence to perform tasks that have traditionally required human cognitive function has made it especially useful for those in the travel industry, because deploying AI can save businesses time and money, while potentially eliminating human error and allowing tasks to be performed quickly, at any time of the day.
Travel and Hospitality AI Market Segment Analysis - By Solution Type
Latest surveys estimate that "Smart Hospitality" is projected to rise by more than 25% by 2021. Robots delight consumers by offering unexpected services, keeping customers involved on an ongoing basis, generating a fresh and exciting environment in the minds of customers. Robots in the hotels offer assistance to clients by leading them to their hotel rooms, delivering their baggage to their rooms, maintaining housekeeping facilities, serving food & snacks. Thus, Robotics continually improve Customer loyalty & Customer experience by delivering innovative services and offer assistance in hospitality facilities. With a growth in the number of travellers, it is important for service providers to distinguish themselves from overly customised offerings while keeping visitors' tastes in mind. The dynamic method of understanding guest expectations and monetizing guest data has progressed with the advent of data analytics. ML (Machine Learning) is the perfect medium for acting groups to grasp from background knowledge and increase operational performance in order to satisfy consumer needs cost-effectively. Deep understanding of specific consumer needs allows the customer agent or communications staff to recommend goods and services that are sure to be appealing to the customer. This in turn boosts the market growth.
Travel and Hospitality AI Market Segment Analysis - By Geography
Geographically, APAC region is anticipated to witness the most significant market growth during the forecast period 2021-2026 with a CAGR of 9.89%. This market growth is attributed to various factors including rapid infrastructure development across airports, seaports, railroads, hotels, highways, and others coupled with incorporation of advanced technologies such as Artificial Intelligence, Internet of things, Block-chain and others.
Deployment of AI eases the process of booking tickets for flights, booking hotel rooms, overcoming difficult travel choices, shortening the purchase process and providing a more comfortable bid. In recent years, artificial intelligence in the hospitality field has been growing. Connie, an AI robot which is used in hotels and resorts, was introduced by IBM. These robots assist customers with basic tasks such as help desks, hotel room detail, restaurants and timings, hotel maps and other related tasks. These prospects for the growth of new AI start-ups in the travel & hospitality industry has been developed and have become a significant trend in recent years.
Technologies including facial recognition offer hassle-free check-ins at airports and all other stations without any review of documentation by the immigration service, customs department, and so on. This app for facial recognition not only offers hassle-free check-ins but also provides visitors with digital privacy and enforcement through the use of blockchain technology. The travel process for clients supported by these technology leverages a positive impact on market growth. Not only are airlines improving customer service with self-service capabilities. Hotels can even benefit from check-in for facial recognition. This technology helps travellers to skip queues and complete entry forms at the front desk. With these terminals, in less than one minute, a check-in that usually takes three minutes or more can be completed. It is quick to use facial recognition checkouts. Travelers scan their ID, take a screenshot and include information about their contacts. The computer verifies their knowledge about identification and reservation and issues a room key. Marriott has so far been exploring self-serve kiosks at the Moxy brand that encourage guests to swipe their credit card, causing the kiosk to distribute the key to their room.
Virtual reality creating opportunities in travel, tourism & hospitality sectors
There is a substantial difference between the consumers' perceptions of the service and the current service offered by the service providers. Customers at a distance appear to be oblivious of the tourist locations and the travel experience of that destination. Customers would like to observe the journey & discovery of the tourist destinations before heading to the tourist spots. This is accomplished by looking for useful information on the Internet in the form of consumer feedback, among others. Technology of Virtual Reality (VR) produces a simulated world that gives a virtual reality experience. In the interactive realm of 3D, the client encounters the environment to a great degree. The key limitations between the client and the service provider are solved by this technology. Customers can enjoy the scenic beauty of natural resources, general infrastructure services, tourism infrastructure, and destination tourism infrastructure through watching of augmented reality videos. In order to assess the selection of the tourist attraction location, consumers can have detailed first-hand knowledge with the aid of VR technology.
Travel and Hospitality AI Market Challenges
Data Safety and Security Issues
This significant concern about the implementation of AI in some of the main fields, such as financial management and security apparatus, is a continuing problem. For instance, the use of Blockchain technologies in facial recognition applications guarantees data protection and security. Some countries are still hesitant to use facial recognition technology due to privacy and data security concerns. In case of Chatbots, hotels store past purchasing records, travel history that challenges data protection and security concerns. A big issue with these machine-controlled services is that a minor ransomware intrusion will interrupt software programmes and service providers' activities, which can lead to anarchy. While AI technology is innovative and forward-looking, these innovations is not afforded to small service providers because it needs a massive investment. While Chatbots & Robots are capable of replacing the human workforce, customers still rely on the human workforce when it comes to queries that require difficulty in language processing. Machines like chatbots are limited to answering basic questions. This technologies use the keywords of the questions to have responses. When there is an incident & complicated situation that needs to be worked out, consumers still focus on the human workforce.
Travel and Hospitality AI Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Travel and Hospitality AI Market. Amadeus IT, mTrip, Lemax, CRS Technologies, Navitaire, Sabre Corp., Qtech Software, Tramada Systems, Travelport International and others are considered to be the key players of the Travel and Hospitality AI Market.
In July 2019, Ford Motor Company and Volkswagen AG revealed that through a strategic partnership with Argo AI, they are collaborating on autonomous vehicle technologies in the U.S. and Europe in a synergistic effort to stay successful in the evolving transportation environment.
In January 2018, credit card giant American Express acquired travel-oriented chatbot provider Mezi and folds it into its patented card-holders travel tool AskAmex.
As a direct result of Covid-19, enterprises are advancing their plans to digitize and automate parts of their business not just to achieve better operational efficiencies, but to protect themselves from disruptions. This has been particularly prevalent in the travel sector.
Latest surveys estimate that "Smart Hospitality" is projected to rise by more than 25% by 2021. Robots delight consumers by offering unexpected services, keeping customers involved on an ongoing basis, generating a fresh and exciting environment in the minds of customers.
This significant concern about the implementation of AI in some of the main fields, such as financial management and security apparatus, is a continuing problem.
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