Technology to Transform Hospitality by 2034: AI and Automation Lead the Way
New York, Wednesday, 4 June 2025.
The Business Research Company forecasts that technological advances, specifically AI and automation, will significantly enhance customer experiences and operational efficiency in the hospitality sector by 2034.
Accelerating Operational Efficiency
The Business Research Company’s recent analysis points out that AI and automation are driving substantial changes in the hospitality sector’s operations. These technologies are expected to streamline tasks such as reservations, check-ins, and guest management, allowing for a more seamless guest experience. Over the next decade, the integration of AI into hospitality services will play a pivotal role in reducing operational costs and enhancing efficiency, which is vital as the industry aims to rebound and grow its market share [1].
Enhancing Customer Experience through AI
AI-powered personalization is emerging as a key trend, transforming how hotels interact with guests. By leveraging data analytics, hotels can anticipate customer preferences and tailor services to individual needs. This results in a more engaged and satisfied clientele, which is critical in differentiating offerings in a competitive market. As noted in industry reports, technologies such as virtual concierges and AI-driven recommendations are becoming standard features in cutting-edge hospitality environments [1][2].
The Rising Influence of Contactless Technology
Advancements in contactless technology are at the forefront of the hospitality industry’s evolution. These technologies, including mobile key access and QR code payments, have seen accelerated adoption, particularly post-pandemic. The demand for safety and convenience is pushing hotels to innovate further. As per the innovations showcased at HITEC 2025, these solutions significantly contribute to enhancing the guest experience by offering more secure and efficient service delivery [3].
Future Projections and Market Growth
The hospitality market is anticipated to grow from $5.7 trillion in 2025 to $7.2 trillion by 2029, buoyed by technological integration. The CAGR of 6.1% reflects stable economic growth and increased technological adoption driving market expansion [1]. As AI and automation continue to evolve, stakeholders must align with these trends to maintain competitive positioning. Industry leaders emphasize that adapting to technological advancements is crucial for operational longevity and market relevance through to 2034 [1][4].