Hospitality Tech Market Insights - Fall 2025

• The global hotel and hospitality management tech market is projected to grow at a CAGR of 7.1%, expanding from $7.6 billion in 2025 to $10.7 billion by 2030. Growth is fueled by the accelerated adoption of AI, automation, and sustainability-focused practices that are transforming operations across the hospitality industry.
• The market continues its strong shift toward cloud-based deployment models, which have become standard across organizations of all sizes. This subscription-driven approach is especially critical for small to medium-sized enterprises (SMEs) and independent properties, as it eliminates the high upfront costs of legacy on-premises systems. Cloud solutions enable real-time data flow for key systems such as booking and channel management engines, which are essential for navigating demand fluctuations and optimizing revenue.
• Software investment priorities are being adjusted to improve demand capture and guest experience. With mixed corporate travel recovery and tightening leisure margins, operators are focusing on high-impact technologies that enhance efficiency and engagement. Contactless and mobile-first solutions such as digital keys, mobile check-in and check-out, and automated guest communication are becoming standard, improving guest satisfaction while reducing labor intensity.
• A forecasted slowdown in U.S. RevPAR growth to approximately 0.8% in 2025 is expected to pressure margins but also to accelerate investment in efficiency-driven technology. Operators are increasingly directing IT budgets toward revenue optimization platforms and advanced property management systems that leverage artificial intelligence and machine learning to improve yield management, lower costs, and strengthen operational agility.

The hospitality tech market is undergoing a rapid, technology-driven maturation phase, characterized by massive operational efficiency gains through AI-powered automation, strategic platform consolidation, and expansion into adjacent leisure and recreation markets.

• It is now reported that roughly 70% of global travelers want a virtual reality experience prior to travel to explore potential destinations. 50% of leisure guests would trust AI to recommend restaurants to them, increasing to 60% among business travelers.
• In guest-facing roles, AI chatbots are now integrated with core systems (PMS, POS, CRM), capable of resolving an estimated 60% to 80% of standard inquiries, significantly lowering the cost-to-serve. AI is enhancing revenue management through dynamic pricing models, enabling predictive smart rooms, and driving kitchen automation in the restaurant sector.
• Robotics is now a key component of hospitality services. These physical service robots, such as automated concierges, room service delivery units, and cleaning machines, are fundamentally powered by sophisticated software ecosystems and tied into overarching hospitality management platforms.
• Leisure and recreation venues are emerging as early adopters of AI-powered scheduling, membership analytics, and guest engagement tools. These platforms are fueling 2025 software spend growth across golf, spa, and resort environment.

In June 2025, Agilysys debuted “Book with S.P.E.N.D” at HITEC 2025. The software enables guests to reserve all entitlements in a package, from spa, golf, dining, and activities & tours, without requiring manual coordination with property staff.

In May 2025, Amadeus announced a partnership with Google to integrate generative AI technologies, aiming to improve operational efficiency, system resiliency, and accelerate the development of new AI-driven travel solutions.

In February 2025, Canary Technologies unveiled the worlds first “End-to-End AI Voice Platform” built specifically for the hospitality sector. This reflects a broader shift toward AI-powered assistants that streamline guest bookings and operational workflows across hospitality and leisure venues.