San Francisco, 28 August 2025, – The global AI in tourism market size is anticipated to reach USD 13,868.8 million by 2033 and is expected to expand at a CAGR of 26.7% during the forecast period, according to a new report by Grand View Research, Inc. The rising demand for personalized travel experiences and technological innovation is expected to drive market growth during the forecast period.

Today's travelers seek itineraries, recommendations, and services tailored to their unique preferences. AI-powered platforms deliver just that— analyzing user behavior, search history, and location data to curate bespoke travel suggestions. This level of customization not only enhances customer satisfaction but also boosts service providers' engagement and conversion rates.

Operational efficiency is another major driver. AI tools such as chatbots, virtual assistants, and predictive analytics are streamlining processes across the tourism value chain—from booking and customer service to pricing and disruption management. These technologies reduce labor costs, improve response times, and enable 24/7 support, making tourism services more agile and responsive. For instance, AI-driven dynamic pricing algorithms help businesses optimize revenue by adjusting real-time rates based on demand forecasts and market conditions.

The integration of big data and machine learning is also transforming the industry. Travel platforms increasingly use these tools to anticipate customer needs, manage resources more effectively, and deliver real-time updates. This improves operational decision-making and empowers travelers with timely, relevant information. Moreover, the emergence of generative AI and natural language processing enables more intuitive interactions, allowing users to engage with travel platforms through voice commands and conversational interfaces.

Order a free sample PDF of the AI in Tourism Market Intelligence Study, published by Grand View Research.

Further key findings from the report suggest:

• In terms of offering, the solution segment dominated the market in 2024 with a 64.1% revenue share.
• By end use, the transportation & mobility services segment held the largest market revenue share in 2024.
• North America AI in tourism industry dominated globally with a revenue share of 38.7% in 2024.
• AI in tourism industry in the U.S. attributes its dominance to the early adoption of advanced digital technologies.

List of Key Players in the AI in Tourism Market

• Amazon Web Services, Inc. (AWS)
• Appier Inc.
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Microsoft
• NVIDIA Corporation
• Sabre Corporation
• Salesforce, Inc.
• SAS Institute Inc.
• Snowflake Inc.