Artificial Intelligence in Tourism Market By Component (Hardware {Robots, Sensors, IoT devices}, Software {AI algorithms, Machine learning platforms, Analytics software}, Services {Consulting, Integration & Deployment, Support & Maintenance}), By Application (Customer Service & Engagement, Personalized Recommendations, Booking & Reservation Management, Fraud Detection & Security, Marketing & Advertising, Operational Efficiency, Others), By Technology (Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, Context-Aware Computing, Robotics, Predictive Analytics, Others), By Deployment Mode (Cloud-Based, On-Premises, Hybrid), By End User (Travel Agencies, Hotels & Resorts, Airlines & Airports, Cruise & Ferry Operators, Railway & Bus Service Providers, Tour Operators, Theme Parks & Attractions, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles and Market Forecast, 2025 – 2035

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Industry Outlook

The Artificial Intelligence in Tourism Market accounted for USD 3.47 Billion in 2024 and USD 4.39 Billion in 2025 is expected to reach USD 46.42 Billion by 2035, growing at a CAGR of around 26.59% between 2025 and 2035. In tourism, Artificial Intelligence assists through technology like machine learning, chatbots, virtual assistants, and predictive analytics to enhance the quality of travelling for consumers and assist in simplifying tourism operations. It enables travel agencies, hotels, airlines, and tourism websites to fulfil every customer's wish, manage bookings more easily, respond to questions quickly, and understand what their customers prefer. Tourism companies are soon implementing AI for enhanced customer care, cost reduction, and staying ahead of their competitors. Since more individuals are seeking intelligent travel solutions.

Industry Experts Opinion

“Artificial intelligence is going to change things again, as on some of the big travel platforms, itineraries will be created or curated for you.”

• Vicki Miller – CEO, VisitScotland.

Report Scope:

Market Dynamics

Rising demand for personalized travel experiences is pushing companies to use AI to customize recommendations for hotels, destinations, and activities.

Travellers seeking more customized trips are fostering the development of AI in the tourism sector. Modern travellers desire to visit places that are personalized according to their budget and taste. Tourism businesses can analyze user behaviour, bookings, the way users search and their reviews using AI so that they can suggest certain hotels, attractions and activities. Machine learning algorithms make it possible for platforms to provide improved and more engaging recommendations over time. Due to the personalization, the customers have fun with the company and repeat the experience. With the use of AI, it is possible to personalize travel experiences, thus beating the competition.

AI enables people to discover places, pursuits and cultures that are not so popular, yet are the best fit for what they like and enjoy. Someone looking for romance may be suggested quiet spots and candlelight dinners, whereas adventure seekers may get tips regarding hiking and exciting extreme sports. These intelligent suggestions can relieve your stress by making your travel more exciting. AI adjusts its suggestions as per new behaviour or persistent situations like the weather or activities occurring nearby. As personalization is now widespread, AI assists the industry in entering a new era.

The increasing use of AI-powered chatbots and virtual assistants is improving customer service and booking convenience in tourism.

Chatbots and virtual assistants based on AI have a very significant influence on the growth of Artificial Intelligence in the Tourism Market. Due to these technologies, travel businesses can provide fast and accurate customer support at any time without depending on humans. Travelers can just ask quick questions to AI chatbots, make travel arrangements, modify their plan or receive travel suggestions for the destination area. Due to this, travellers spend less time waiting and are more content, primarily during peak travel times. Since AI can manage multiple languages, it is easier to cater to international visitors. Since they can manage lots of questions simultaneously, businesses can provide customer support at a lower price while maintaining its quality.

AI virtual assistants make booking faster and the entire process simpler. If you let the assistant know where is convenient for you, it will present you with suggestions for flights, hotels or entertainment. Some digital assistants become accustomed to your habits and present more and more precise suggestions with every occasion. More individuals feel encouraged to make use of online alternatives when they plan a trip. As individuals become more dependent on online assistance in planning their holidays, the market for AI technology in tourism grows and promotes further innovation.

High implementation costs of AI technology can be a challenge for small and mid-sized travel businesses.

The high cost of implementing AI software hinders growth in the Artificial Intelligence in Tourism Market, mainly for smaller and medium-sized tourism companies. Chatbots, recommendation engines and data analytics platforms can only be developed or added with large investments in the required software, hardware and people with the right skills. Due to their limited budgets, small companies can have difficulties investing in these tools. Setting up, keeping it operating correctly and properly training staff accounts for much of the total cost, meaning using AI is costly.

Serving this market manually as many do can leave them behind compared to large firms that have advanced tech. There can be a delayed return with AI, so this makes smaller companies think twice before trying it. They may not purchase costly equipment if the results are not assured, mainly because they aren’t very tech-savvy. Fear of the system failing or encountering errors may make business owners careful. Affordable and easy-to-use AI is necessary for most small tourism companies to keep up with the trend toward personalized online services. For this reason, the slow rise in this industry is mostly due to the high costs associated with adopting AI.

Growing adoption of AI in voice assistants and virtual tour guides presents new ways to engage tourists before and during travel.

Using AI in voice assistants and tour guides is a huge opportunity for Artificial Intelligence in Tourism Market. Voice assistants like Alexa, Siri and Google Assistant are used by most individuals to look for a place to visit, book a hotel and look for updates when one is on the move. Travel organizations can utilize AI to ensure ease of planning trips by users with minimal clicks. It makes searching for trains and flights easy which also makes users use the app even more. Due to voice technology becoming more and more precise and being able to understand a lot of languages, it can now assist international visitors with personalized assistance.

AI-based virtual guides for tours have gained popularity among individuals taking self-guided tours. Tourists can utilize the guides to listen about local attractions, cultural landmarks, history and more as they walk around with their phones or tablets. A guided tour where you do it yourself enables you to live the experience as though a guide were present. Such kinds of innovations catch the eye of tourists who enjoy flexibility, convenience and interesting content. When tourism companies employ AI-enabled voice technology and virtual guides, they can attract avid travellers and provide distinctive services to differentiate themselves from other firms, assisting them in expanding in the industry.

Expanding the use of predictive analytics in tourism can help businesses forecast demand and trends more accurately.

Through the enhancement of predictive analytics in tourism, companies can more easily make crucial decisions based on data. AI predictive analytics, tourism businesses can analyze the history of bookings, the behaviour of the visitors, trends across different months and outside causes. Through the application of this, companies can predict what services will be required and prepare well. Hotels and airlines can anticipate their peak season or most sought-after travel dates, thus making it simple for them to manage inventory, price and schedule staff. This enables businesses to utilize fewer resources, reduce waste and make profits. Through predictive analytics, companies can plan their marketing campaigns based on the prevailing trends.

Airlines can offer deals or vacation suggestions to specific groups before travel demand rises, increasing the likelihood that clients will commit to the offer. Tour operators may be able to predict the next popular destinations and make their packages worth considering for potential visitors. Efficiency can be enhanced and additional benefits can be offered to the client as the primary outcome of such planning in advance. With more competition in tourism, predictive analytics can now be at the centre of assisting with new business and innovation.

Segment Analysis

Based on components, the Artificial Intelligence in Tourism Market is segmented into Hardware, Software, and Services. Smart platforms utilised by tourists are becoming increasingly popular, placing the Software segment at the forefront of the market. AI serves to enhance the experience of the travellers through prediction, speech recognition and instant personalized offerings. Due to many tourism businesses adopting data-driven decisions and automation for services, the demand for scalable and flexible software is rapidly increasing.

Based on application, Artificial Intelligence in Tourism Market is segmented into Customer Service & Engagement, Personalized Recommendations, Booking & Reservation Management, Fraud Detection & Security, Marketing & Advertising, Operational Efficiency, and Others. The Customer Service & Engagement market segment is in the lead, as chatbots and virtual assistants with AI technology are comprehensively applied to support customers and guarantee assistance at any time. It is crucial when travelling, as it raises travellers' satisfaction by answering fast, speaking several languages and offering individual contact. Since the pandemic, customer interaction via AI has grown at numerous touchpoints throughout the travel experience due to the growth in demand for self-service.

Regional Analysis

The North America Artificial Intelligence in Tourism Market is leading due to strong digital connections using AI in tourism to improve customer visits. Google, Expedia, Hilton and Marriott are using AI to recommend trips based on what a customer has searched, serve customers through chatbots and make their operations more efficient. Now that AI virtual assistants and analytical systems are popular, businesses can easily foresee the travel needs of their customers. Besides, AI is seeing more investments thanks to government and company funding; the U.S. National Science Foundation recently started funding AI research institutes and Canada has committed a large budget to AI progress. All these reasons have helped North America become a leader in using AI to improve the tourism sector.

The Asia-Pacific Artificial Intelligence in the Tourism Market is growing due to greater digital use, higher incomes and a growing number of middle-class families. China, Japan and India are using AI to improve the planning of trips, customer service and the way operations are carried out. Nowadays, travel agencies and hotels often use chatbots and virtual assistants powered by AI to assist customers in real-time and recommend services. The region is also boosting this trend through its approach to smart tourism and AI infrastructure. As a result, Asia-Pacific is expected to enter the global AI market for tourism by introducing innovations that address what today’s travellers need.

Competitive Landscape

The market sees many global technology companies and travel tech specialists compete to ensure greater, faster and better-organized customer trips. Because companies like Google, IBM, Microsoft and Amazon Web Services developing AI tools and cloud solutions, many tourism applications use AI and companies such as Expedia, Booking Holdings, Trip.com and Airbnb add AI to help customers, set prices and offer personal suggestions. Businesses in the tourism sector are also building AI chatbots, virtual assistants and translation tools designed for travellers. There is increasing pressure among companies to use AI technology to make their services better, manage operations more efficiently and reach out to more customers as the travel industry evolves rapidly.

Artificial Intelligence in Tourism Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2025, Riyadh Air increased their relationship with IBM Corporation to bring AI into every part of their airline to be the world's first digital-native carrier. IBM’s AI abilities, including Watsonx and Agentic AI, are driving this initiative to better serve customers, simplify flying experiences and make sound decisions using every piece of data securely and responsibly.
• In March 2025, LG Uplus signed a deal with Amazon Web Services to build a cloud, AI platforms and offer consultancy to accelerate AI change in Korea. The effort is about helping companies use AI rapidly, improving their customer service and increasing data safety and sovereignty.

Report Coverage:

By Component

• Hardware
  • Robots
  • Sensors
  • IoT devices
• Software
  • AI algorithms
  • Machine learning platforms
  • Analytics software
• Services
  • Consulting
  • Integration & Deployment
  • Support & Maintenance

By Application

• Customer Service & Engagement
• Personalized Recommendations
• Booking & Reservation Management
• Fraud Detection & Security
• Marketing & Advertising
• Operational Efficiency
• Others

By Technology

• Machine Learning (ML)
• Natural Language Processing (NLP)
• Computer Vision
• Context-Aware Computing
• Robotics
• Predictive Analytics
• Others

By Deployment Mode

• Cloud-Based
• On-Premises
• Hybrid

By End User

• Travel Agencies
• Hotels & Resorts
• Airlines & Airports
• Cruise & Ferry Operators
• Railway & Bus Service Providers
• Tour Operators
• Theme Parks & Attractions
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Google LLC
• IBM Corporation
• Microsoft Corporation
• Amadeus IT Group SA
• Sabre Corporation
• Expedia Group, Inc.
• Airbnb, Inc.
• Booking Holdings Inc.
• Trip.com Group Limited
• Skyscanner Ltd.
• Trivago N.V.
• Travelport Worldwide Ltd.
• Fareportal Inc.
• Hopper Inc.
• MakeMyTrip Limited

Frequently Asked Questions (FAQs)