An investigation of the Impact of Digital Transformation on Customer satisfaction and Loyalty in Hospitality Industry

The hotel industry is undergoing a profound transformation due to the integration of technologies, including artificial intelligence (AI), into service operations. The pattern of service delivery, which was previously predicated on human interaction, has been replaced by digital interaction due to this transformation. The Kingdom of Saudi Arabia (KSA) is considered one of the preferred places for the tourist to visit. KSA hotels are continuously working on enhancing their tourist experience since they contribute greatly to the KSA economy. The main purpose of this research is to examine how AI tools integration can improve KSA tourists’ satisfaction and loyalty level. The research was conducted on Riyadh, Madinah, and Mecca hotels that have implemented AI chatbots, AI personalised services, and AI fraud detection systems. Satisfaction level was determined through quantitative analysis and data was collected from 300 respondents. The quantitative results show that AI tools integration enhance tourist satisfaction levels. It was determined by seeing the significance values of AI chatbots, AI personalised services, and AI fraud detection systems which are less than 0.05. Similarly, the qualitative analysis was performed through the interviews conducted with 9 tourists. The interview answers show that AI tools integration enhances the tourist loyalty level. Overall, research suggested that knowing the impact of AI on the satisfaction and loyalty of tourists could potentially result in the implementation of AI-driven services in hotels, thereby potentially enhancing the preferences of tourists. Keywords: Customer satisfaction, Loyalty, Artificial Intelligence, Chat Bot, Personalisation Services, Tourists, Fraud Detection