Artificial Intelligence (AI) In Travel Market Global Report 2026

The artificial intelligence (AI) in travel market size has grown exponentially in recent years. It will grow from $4.37 billion in 2025 to $5.37 billion in 2026 at a compound annual growth rate (CAGR) of 23.0%. The growth in the historic period can be attributed to the expansion of online travel booking platforms, increasing use of digital customer service tools, growth of data-driven marketing in travel, rising adoption of cloud technologies, and increased availability of travel data.

The artificial intelligence (AI) in travel market size is expected to see exponential growth in the next few years. It will grow to $12.11 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. The growth during the forecast period can be attributed to increasing investments in end-to-end AI travel platforms, rising demand for hyper-personalized travel experiences, expansion of AI-enabled operational optimization, growing emphasis on real-time traveler insights, and increasing adoption of biometric and facial recognition technologies. Major trends during the forecast period include increasing adoption of AI-powered personalization engines, growing use of chatbots and virtual travel assistants, increased deployment of dynamic pricing algorithms, expansion of AI-driven fraud detection systems, and enhanced focus on predictive travel analytics.

The growth in global tourism is anticipated to drive the expansion of the artificial intelligence (AI) in travel market going forward. Global tourism involves individuals traveling internationally for leisure, business, or other purposes, promoting cultural exchange, economic development, and connections worldwide. The increase in global tourism is driven by higher disposable incomes, improved access to international travel, a stronger desire to explore different destinations, and advancements in travel technology. AI in travel enhances tourism by delivering personalized recommendations, automating booking processes, and optimizing customer service, thereby improving overall traveler experiences and operational efficiency. For instance, in 2024, according to the World Travel and Tourism Council, a UK-based travel company, in 2023, the travel and tourism sector contributed 9.1% of global GDP, representing a 23.2% increase compared to 2022. Therefore, the growth in global tourism drives the artificial intelligence (AI) in travel market.

Key companies operating in the artificial intelligence (AI) in travel market are concentrating on technological development, including the integration of artificial intelligence into personalized travel, to improve customer experiences through tailored recommendations, optimized travel itineraries, and real-time assistance. AI in personalized travel customizes travel experiences by using technology to analyze user data and preferences, delivering tailored recommendations for destinations, accommodations, and activities according to individual requirements and previous behaviors. For example, in May 2024, Expedia Group Inc., a US-based travel technology company, launched an AI-powered assistant called Romie. Romie is an AI travel assistant that functions as a personal travel agent, supporting users with planning, booking, and managing last-minute travel changes. It learns users' preferences over time to provide personalized recommendations and includes features for group chat planning, smart search, and itinerary creation.

In May 2024, Headout, a US-based tours and activities platform, acquired Dabble for an undisclosed amount. The acquisition aims to enhance Headout's mission of providing top-tier real-life experiences through advanced AI technology. Dabble is a Canada-based startup that helps companies use artificial intelligence (AI) more effectively to improve travel experience search.

Major companies operating in the artificial intelligence (AI) in travel market are International Business Machines Corporation, Expedia Group Inc., Priceline.com, Booking.com B.V., Airbnb Inc., Sabre Corporation, TripAdvisor Inc., Agoda Company Pte. Ltd., SAP Concur, Travelport Worldwide Ltd., Hotelbeds Group, Skyscanner Ltd., Trivago N.V., MakeMyTrip Limited, Fareportal, Kayak Software Corporation, Despegar.com Inc., Cendyn Group LLC, Hopper, Cleartrip Private Limited, Sojern Inc., OTA Insight Ltd., Adara Inc., Viator Inc., Duetto.

North America was the largest region in the artificial intelligence (AI) in travel market in 2025. The regions covered in the artificial intelligence (AI) in travel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence (AI) in travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) in travel market includes revenues earned by entities by providing services such as personalized recommendations, virtual assistants and chatbots, dynamic pricing, and predictive analytics for travel demand. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in travel market also includes sales of kiosks and self-service terminals and robotic assistants. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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