Generative Artificial Intelligence in Tourism Market: Global Industry Analysis and Forecast (2023-2029)

The Global Generative Artificial Intelligence in Tourism Market size was valued at USD 3104.20 Million in 2022 and the total Generative Artificial Intelligence in Tourism revenue is expected to grow at a CAGR of 17.5% from 2023 to 2029, reaching nearly USD 9598.75 Mn.

Generative Artificial Intelligence (GAI) has brought revolutionary changes to the world, enabling businesses to create new experiences by combining virtual and physical worlds. The hospitality and tourism sector has witnessed phenomenal growth in customer numbers during the post-pandemic times. This growth has been accompanied by the use of technologies in customer interface and backend activities, including the adoption of self-serving technologies. In the tourism industry, generative AI is now widely adopted to generate personalized travel recommendations, create virtual tours and immersive experiences, develop interactive chatbots for customer service, generate descriptive and engaging content for travel websites, and assist in real-time translation and interpretation services for tourists, etc. As a result, the use of generative AI in tourism has the potential to enhance customer experiences, streamline operations, and provide innovative solutions to various challenges faced by the industry. Thus, the Generative Artificial Intelligence in Tourism Market is witnessing significant growth in recent years and is expected to generate lucrative growth prospects throughout the forecast period.To know about the Research Methodology :- Request Free Sample Report
Generative Artificial Intelligence in Tourism Market Competitive Landscapes:
The Generative Artificial Intelligence in Tourism Market is characterized by the presence of various technology companies, startups, and established players all across the world. These market players offer a wide range of generative AI (GAI) solutions and compete in terms of innovation, product/ service features, market reach, and customer satisfaction. GAI, which emerged as a specialized area of study within artificial intelligence, enables individuals to generate fresh content across various mediums, including text, images, audio, and videos. This technology assists users in making informed decisions regarding tourism destinations, assessing the weather conditions of different regions, obtaining feedback on restaurants, and more. As a result, it has attracted the interest of various tourism companies to adopt the GAI. OpenAI’s Codex, DALL-E, and ChatGPT are some of the tools widely used by the end-user.

ChatGPT, a chatbot capable of generating articles, is a prominent example of this technology. Its capability to create high-quality content is both remarkable and a little scary. ChatGPT, developed by OpenAI—a research organization backed by Microsoft—has garnered significant attention since its unveiling in November 2022. The introduction of GAI has contributed to the perception of artificial intelligence becoming increasingly prevalent in mainstream applications. Notably, Google's release of the widely successful ChatGPT has prompted them to unveil a new experimental service called Bard. This innovative offering showcases the potential of AI to revolutionize the search experience by delivering more sophisticated and detailed responses to user queries.

The same week, Microsoft also revealed a new Bing-powered version by ChatGPT, designed to deliver users with more accurate and timely search results. Instead of relying on the traditional ladder approach to search results, ChatGPT takes a request, scans for answers, and provides a response that includes citations to the sources. As a result, such advancement by key players makes generative artificial intelligence (AI) in the Tourism industry highly competitive.

 



Company
Differentiator
Focus area(s)
Company valuation/ Enterprise value
Products


OpenAI
Best Overall
A. Language modeling
B. Content generation and editing
Private company; estimated at around $29 billion.
1. GPT-3
2. GPT-4
3. ChatGPT Plus
4. DALL-E
5. Whisper
6. InstructGPT


Hugging Face
Best for Community-Driven AI Development
A. Generative AI forums
B. Open-source AI model development
Private company; estimated at around $2 billion.
1. BLOOM
2. Expert Acceleration Program
3. Private Hub
4. Inference Endpoints
5. AutoTrain
6. Hardware


Alphabet (Google)
Best for Scalability
A. Generative AI model development and deployment
B. Application development
C. Content generation
$1.72 trillion.
1. Generative AI support in Vertex AI
2. Generative AI App Builder
3. Generative AI in Workspace
4. Bard


Microsoft
Best for Business Operations and Productivity
A. Content generation
B. Generative AI-powered search
C. Code development and support
D. Cybersecurity
$2.25 trillion.
1. Microsoft 365 Copilot
2. Microsoft Security Copilot
3. GitHub Copilot
4. AI-Enhanced Bing and Edge


Cohere
Best for Natural Language Processing
A. Natural language processing and modeling
B. Enterprise conversational AI
Private company; estimated at around $6 billion.
1. Embed
2. Neural Search
3. Summarize
4. Generate
5. Classify



Generative Artificial Intelligence in Tourism Market Dynamics:
Growing Demand for Personalized Travel Experiences

The tourism industry is human- and service-oriented by nature. Generative AI is poised to transform the travel industry. In the past few weeks, there have been remarkable advancements in Generative AI that have sparked tremendous excitement and enthusiasm within the tech industry. Travelers nowadays seek unique and customized experiences that align with their individual preferences. Generative AI plays a crucial role in fulfilling this demand by analyzing large volumes of data, including customer preferences, demographics, and historical travel patterns.

Generative AI uses the available data to produce customized recommendations, itineraries, and suggestions that are personalized to meet the unique requirements and preferences of individual travelers. This ability to create tailored travel experiences is expected to be a key driver for the adoption and implementation of generative AI in the tourism industry, thereby driving the Generative Artificial Intelligence in Tourism Market growth. This factor is further expected to enhance customer satisfaction and helps businesses differentiate themselves in a competitive market.

Chatbots have emerged and proven to be a valuable customer service asset both during the booking process and in responding and addressing to recurring questions from leisure. This is particularly essential in an industry such as hospitality and tourism which is expected to be on 24/7 and requires continuous support. OpenAI developed a model ChatGPT, a chatbot that uses the GPT-3 language model and is adept at imitating human conversational versatility when delivering answers. It is an enhanced and intelligent version of a search engine, eliminating the need for users to navigate through countless blue links, open multiple tabs, and sift through information to find what they need. Instead, it interprets user queries, understands their preferences and desires, and provides concise and comprehensive responses by drawing upon the vast information available on the web. This is expected to be particularly valuable for users searching for travel recommendations, where the system can deliver tailored suggestions based on their specific needs and interests.
Increasing adoption of generative artificial intelligence (AI) in the tourism industry

The use of generative artificial intelligence technologies in the tourism industry is gradually becoming popular in recent days. Tourism companies are now making investments in these technologies to gain a competitive edge and enhance operational efficiency. Generative artificial intelligence (AI) is becoming increasingly essential for travel planning in the tourism and travel industry and attracts destination marketing organizations' attention as an essential element in their marketing activities. Those who will be traveling using generative AI to make a travel plan consisting of accommodation, attractions, tours, restaurants, and activities in the region and decide on the regions they will travel to by the generative artificial intelligence recommendations.

In addition, generative artificial intelligence applications can also be used by businesses providing consultancy services in the tourism and travel industry. These companies provide recommendations similar to search engines, but they differentiate themselves by working closely with travel and accommodation businesses. For instance, AltexSoft, a B2B company based in Ukraine, collaborates closely with the travel and hospitality industry to create customized software and systems. They leverage their data and machine learning teams to develop solutions and offer consulting services to tourism businesses. Their expertise lies in areas such as booking and reservation management, travel management, and airline management. They utilize natural language processing, automation, and machine learning models to enhance their offerings and provide valuable insights to their clients. As a result, the increasing adoption of generative AI by the travel business is a major growth factor driving the Generative Artificial Intelligence in Tourism Market growth.
Implications for Administrative and Clerical Skills

The advancement of robotics and automation has the potential to diminish the value of administrative and clerical skills traditionally performed by humans. Tasks like generating advertising copy and human resources letters can now be carried out by robots. Experts in the automotive industry anticipate that as much as 70% of computer-based work could be automated in the near future. Writing assistants in the form of chatbots are increasingly trusted by technical experts. Although this automation is not expected to eliminate jobs, outsourcing such tasks could motivate human employees to focus on more productive endeavors. The ChatGPT language model, with its ability to process natural language, has the potential to replace humans in simpler tasks. It can assist programmers in identifying common code errors and even facilitate the creation of meeting emails. The implications of ChatGPT's capabilities are significant and far-reaching.
Generative Artificial Intelligence in Tourism Market Segment Analysis:
By application, the personalized recommendations segment dominated the global Generative Artificial Intelligence in Tourism Market with the highest market share of 34.75% in 2022. The segment is further expected to grow at a CAGR of 26.4% and maintain its dominance by 2029. Personalized recommendations leverage generative AI algorithms to analyze user preferences, behavior, and historical data to provide tailored suggestions and recommendations for various aspects of the tourism industry, including accommodations, attractions, restaurants, and activities. This allows users to receive customized suggestions that align with their interests and preferences, enhancing their overall travel experience. Nowadays, the rapidly developed online tourism industry and the increasingly serious phenomenon of information overload have some studies putting forward opinions that the hedonic dimension of quality is important in adding value for customers. So personalized recommendations on tourism attract more attention by providing potential travelers with online tourism products that fit their needs and preferences, then further help to make travel decisions more accurately and quickly. Therefore, the research on the application of personalized recommendations in tourism is beginning to show a sustained increase.
The virtual tours segment is expected to grow at a rapid CAGR and offer lucrative growth opportunities for the Generative Artificial Intelligence in Tourism Market players during the forecast period. Virtual tours are also expected to utilize generative AI to a significant extent. Generative AI technologies enable the creation of immersive and interactive virtual tour experiences, allowing users to explore destinations, landmarks, museums, or hotels virtually. These virtual tours often incorporate generative AI-generated content, such as realistic visuals, 3D reconstructions, and audio guides, providing users with a rich and engaging virtual travel experience. The Itinerary generation segment is expected to grow at a moderate CAGR during the forecast period. By analyzing various data sources, including user preferences, time constraints, budget considerations, and destination-specific information, generative AI algorithms generate optimized travel itineraries. These itineraries include suggestions for sightseeing, activities, transportation, and accommodations, helping users plan their trips efficiently. Thereby, increasing adoption of GAI in itinerary generation is expected to support the segment growth.
Generative Artificial Intelligence in Tourism Market Regional Insights:
North America held the largest Generative Artificial Intelligence in Tourism Market share of over 40% in terms of revenue and led the global generative artificial intelligence (AI) market in 2022. The region is further expected to grow at a CAGR of 25.7% during the forecast period and maintain its dominance by 2029. The significant presence of key companies, advanced infrastructure, and increasing adoption of the latest technologies by region, contributes to the growth of the market. The region benefits from a strong ecosystem of AI startups and research institutions, driving advancements in generative AI applications for personalized recommendations, virtual tours, and content generation. For instance, OpenAI, Founded in 2015, is a leading AI research organization known for developing advanced language models like ChatGPT. Their research and advancements in natural language processing have significant implications for various tasks in the tourism industry, including content generation and personalized recommendations. In addition, Key players in the generative artificial intelligence (AI) market are investing in research and development activities, propelling the market's growth during the forecast period.
The United States and China had the greatest number of cross-country collaborations in AI publications from 2010 to 2021, although the pace of collaboration has slowed. This factor is further expected to boost the Generative Artificial Intelligence in Tourism Market growth. The number of AI research collaborations between the United States and China increased roughly 4 times since 2010 and was 2.5 times greater than the collaboration totals of the next nearest country pair, the United Kingdom and China. However, the total number of U.S.-China collaborations only increased by 2.1% from 2020 to 2021, the smallest year-over-year growth rate since 2010. The United States is still ahead in terms of AI conferences and repository citations, but those leads are slowly eroding. Still, the majority of the world’s large language and multimodal models (54% in 2022) are produced by American institutions.
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Generative Artificial Intelligence in Tourism Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 3104.20 Mn.


Forecast Period 2023 to 2029 CAGR:
17.5%
Market Size in 2029:
US $ 9598.75 Mn.


 Segments Covered:
by Application
1. Personalized Recommendations
2. Virtual Tours
3. Itinerary Generation
4. Content Generation
5. Others


by Platform
1. Web-based
2. Mobile Applications
3. Others


by End User
1. Leisure Travelers
2. Business Travelers
3. Travel Agencies
4. Others



Generative Artificial Intelligence in Tourism Market by Region:
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and the Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria, and the Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Generative Artificial Intelligence in Tourism Market Key Players:
1. OpenAI (United States)
2. Hugging Face (United States)
3. Alphabet (Google) (United States)
4. Microsoft (United States)
5. Cohere (United States)
6. Anthropic (United States)
7. Jasper (United States)
8. Glean (United States)
9. Synthesis AI (United States)
10. Stability AI (United States)
11. Lightricks (Israel)
12. Inflection AI (United States)

FAQs:

1. What are the growth drivers for Generative Artificial Intelligence in Tourism Market?
Ans. The Growing Demand for Personalized Travel Experiences, is expected to be the major driver for Generative Artificial Intelligence in Tourism Market.

2. What is the major restraint for the Generative Artificial Intelligence in Tourism Market growth?
Ans. Rising ethical concerns are expected to be the major restraining factor for the Generative Artificial Intelligence in Tourism Market growth.

3. Which region is expected to lead the global Generative Artificial Intelligence in Tourism Market during the forecast period?
Ans. North America is expected to lead the global Generative Artificial Intelligence in Tourism Market during the forecast period.

4. What is the projected market size & growth rate of Generative Artificial Intelligence in Tourism Market?
Ans. The Global Generative Artificial Intelligence in Tourism Market size was valued at USD 3104.20 Million in 2022 and the total Generative Artificial Intelligence (AI) in Tourism revenue is expected to grow at a CAGR of 17.5% from 2023 to 2029, reaching nearly USD 9598.75 Million.

5. What segments are covered in the Generative Artificial Intelligence in Tourism Market report?
Ans. The segments covered in the Generative Artificial Intelligence in Tourism Market report areApplications, Platforms, End-user, and Regions.