PUBLISHER: The Business Research Company | PRODUCT CODE: 1888323
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888323
Machine learning in the travel industry involves the application of advanced algorithms and data-driven models to process and analyze large volumes of travel-related information, identify patterns, and generate intelligent predictions or automated decisions without the need for explicit programming. It enables travel companies to better understand customer behavior, optimize pricing strategies, forecast travel demand, enhance operational efficiency, and deliver personalized experiences to travelers.
The key components of machine learning in travel include software, hardware, and services. This technology utilizes artificial intelligence and data analytics to improve travel operations, enhance customer experiences, and support strategic business decision-making. Deployment modes include on-premises and cloud-based solutions. Core applications encompass personalized recommendations, dynamic pricing, fraud detection, customer service optimization, and predictive analytics. The primary end users include travel agencies, airlines, car rental companies, online travel platforms, and other organizations operating within the travel ecosystem.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The machine learning in travel market research report is one of a series of new reports from The Business Research Company that provides machine learning in travel market statistics, including machine learning in travel industry global market size, regional shares, competitors with a machine learning in travel market share, detailed machine learning in travel market segments, market trends and opportunities, and any further data you may need to thrive in the machine learning in travel industry. This machine learning in travel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The machine learning in the travel market size has grown rapidly in recent years. It will grow from $3.21 billion in 2024 to $3.78 billion in 2025 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to the increasing adoption of AI-based travel assistants, the growing use of predictive analytics for demand forecasting, the rising integration of chatbots for customer support, the increasing personalization in travel recommendations, and the growing automation in booking and pricing systems.
The machine learning in the travel market size is expected to see rapid growth in the next few years. It will grow to $7.22 billion in 2029 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to the rising use of machine learning for fraud detection, the growing implementation of AI in dynamic pricing, the increasing deployment of sentiment analysis tools for traveler feedback, the rise in data-driven decision-making by travel companies, and the growing utilization of AI for route and schedule optimization. Key trends in the forecast period include advancements in generative AI for personalized trip planning, the development of autonomous travel management systems, innovations in real-time language translation using AI, advancements in predictive maintenance for travel infrastructure, and the development of AI-driven virtual travel assistants.
The surge in demand for personalized customer experiences is fueling the growth of the market due to increasing customer expectations for tailored interactions. The growing demand for personalized customer experiences is expected to propel the growth of machine learning in the travel market going forward. Personalized customer experiences involve tailoring interactions and services to meet individual preferences and needs through data-driven insights that deliver relevant and engaging experiences across touchpoints. This demand is increasing as customers become more digitally connected and expect brands to understand their preferences and provide customized solutions. Machine learning in travel enables such personalization by analyzing traveler data and behavior to offer tailored recommendations, dynamic pricing, and customized services that enhance satisfaction and engagement throughout the journey. For instance, in January 2023, according to a report published by Marketing Tech News, a UK-based publishing company, about 66% of travelers globally preferred receiving personalized offers when booking trips, and around 61% of consumers worldwide were willing to pay extra for tailored travel experiences. Therefore, the growing demand for personalized customer experiences is expected to drive the growth of machine learning in the travel market.
Major companies operating in the machine learning in travel market are focusing on advancements in agentic AI solutions to enhance customer engagement, operational efficiency, and personalized travel experiences. Agentic AI solutions are advanced artificial intelligence systems capable of autonomous decision-making and adaptive behavior with minimal human intervention to achieve desired outcomes effectively. For instance, in September 2025, Sabre Corporation, a US-based technology company, launched a set of agentic AI-ready APIs powered by its proprietary Model Context Protocol (MCP) server. Integrated into the SabreMosaic platform and supported by the Sabre IQ layer leveraging over 50 petabytes of travel data, these APIs enable travel agencies to connect their AI systems for real-time shopping, booking, and post-booking workflows for flights and hotels. This innovation highlights the growing application of agentic AI in automating complex travel processes and delivering seamless, personalized experiences for agencies and customers.
In April 2023, Navan, Inc., a US-based technology company, acquired Tripeur for an undisclosed amount. This acquisition aimed to strengthen Navan's presence in the Indian business travel market by integrating Tripeur's advanced travel and expense management platform. It enhances Navan's localized offerings, leverages Tripeur's AI-driven automation capabilities, and provides a seamless, end-to-end travel experience for enterprises in the region. Tripeur is an India-based corporate travel management platform that provides machine learning solutions in the travel industry.
Major players in the machine learning in travel market are Amazon.com Inc., Microsoft Corporation, Hitachi Ltd., Accenture plc, International Business Machines Corporation, Oracle Corporation, Salesforce Inc. , SAP SE, Tata Consultancy Services Limited , NEC Corporation, Booking Holdings Inc., Tencent Holdings Limited , Infosys Limited, DXC Technology Company, Expedia Group Inc., Wipro Limited, Trip.com Group Limited, AMADEUS IT GROUP SOCIEDAD ANONIMA, LG CNS Co. Ltd., Sabre Corporation.
North America was the largest region in the machine learning in travel market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in machine learning in travel report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the machine learning in travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The machine learning in travel market consists of revenues earned by entities by providing services such as revenue management services, voice and language translation services, automated customer segmentation services, operational efficiency and route optimization services, and automated baggage handling services. The market value includes the value of related goods sold by the service provider or contained within the service offering. The machine learning in the travel market also includes kayak AI platform, mindtrip, sabre travel AI, citymapper, and navan concierge. 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.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Machine Learning In Travel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on machine learning in travel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for machine learning in travel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The machine learning in travel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.