The digital tightrope: balancing value and ethics in hotel transformation

Purpose This study investigates how digital transformation (DT) can be comprehensively leveraged for value creation in the hospitality and tourism (H&T) industry. This study aims to address gaps in existing literature regarding the specific impacts and practical applications of emerging disruptive technologies in hotels, particularly in integrating sustainability and ethical practices. Design/methodology/approach This study adopts a systematic literature review and meta-synthesis, using keyword searches on DT across major databases, including Scopus and Web of Science. Following data collection, filtration and refinement, 106 pertinent documents were synthesized based on cosine similarity metrics. Key themes and patterns were then identified through concept mapping techniques via Leximancer. Findings This study reveals that integrating artificial intelligence (AI) and Internet of Things (IoT) enables hotels to enhance personalization and operational efficiency, boosting guest satisfaction and reducing costs, while digital marketing strategies like social media engagement and dynamic pricing drive revenue growth and foster customer loyalty. In addition to exploring how hotels adapt to market disruptions, such as the sharing economy and the COVID-19 pandemic, this paper reveals the “dark effects” of digitalization, highlighting its detrimental potential to facilitate corruption while also serving as a tool for combating unethical practices through responsible data governance and transparency initiatives. Originality/value This research introduces novel insights by integrating service-dominant logic with DT, expanding the framework’s relevance to the hospitality sector. It demonstrates how digital tools facilitate value co-creation between hotels and guests, advancing theoretical understanding of service exchange in service-oriented industries. Additionally, this study extends the technology-organization-environment framework by incorporating environmental stewardship and ethical practices, offering a holistic view of responsible digital innovation. By exploring the role of AI, IoT and data-driven decision-making in enhancing customer experiences and operational efficiency, this research provides a structured approach to measuring DT progress in hospitality.