THE ROLE OF ARTIFICIAL INTELLIGENCE IN TRANSFORMING TOURISM SERVICES: THE CASE OF DURRËS, ALBANIA

In Albania, the tourism sector has increasingly been using technology to improve the travel experience and service management. In the past, websites and mobile applications served as promotional tools, but recent developments support more sophisticated operations. This study explores the impact of Artificial Intelligence (AI) in tourism services in Durrës, Albania, focusing on how AI-driven technologies improve service management, customer experience, decision making and hotel recommendations. A mixed-methods approach was used, including a literature review, interviews, surveys, implementation, and process improvement. An AI-based hotel recommendation system was developed using Natural Language Processing (NLP) and machine learning to analyze customer reviews. Hotel reviews were collected from Google Reviews, and artificial intelligence techniques were applied to identify and recommend hotels with similar ratings and sentiment profiles, thereby supporting more personalized and data-driven recommendations. Through sentiment analysis, the reviews were classified as either negative or positive. The study finds that AI technologies improve operational efficiency, increase customer engagement, and support strategic marketing efforts. It is recommended that tourism services in Durres adopt AI solutions as they positively impact automated bookings, tour management, and personalized digital interactions, thereby enhancing tourism to a greater extent. The integration of AI-based recommendation systems further demonstrates how data analytics and sentiment analysis can optimize hotel selection processes for tourists. On the other hand, the high cost and staffing required for this poses a challenge for the city. This study provides a unique focus on AI's impact within Albania’s tourism sector, with Durrës as a case study. By integrating AI-driven analytics and hotel recommendation algorithms, the research highlights the role of AI in improving service quality, business efficiency, and the overall competitiveness of Albanian tourism. It offers practical insights into how AI can drive sustainable growth and innovation, positioning Albania’s tourism industry for a more tech-driven future.