AI versus human-generated hotel pricing: Unpacking consumer perceptions of trustworthiness and fairness

This study examines hotel guests’ perceptions of AI-generated versus human-generated pricing, focusing on the roles of trustworthiness and fairness in booking preferences. While revenue management traditionally emphasizes price outcomes, growing interest in transparency raises questions about whether consumers should be informed about how prices are determined, particularly when AI is involved. We conducted two experiments using a discrete choice framework and used logistic regression to investigate how guests respond to different pricing sources. Study 1 held price constant, and Study 2 introduced variable price levels to estimate willingness to pay. Results consistently showed a preference for human-generated pricing. Trust in human pricing reduced the likelihood of selecting AI-driven options, while fairness perceptions increased the likelihood of choosing AI pricing. These findings contribute to an emerging discussion on the relevance of pricing process disclosure. Focusing on hotel guests, this study highlights the consumer perspective in evaluating AI adoption in revenue management.

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Publication Details

Journal
Tourism Economics
Published
2025-10-24
DOI
https://doi.org/10.1177/13548166251391486
Primary Topic
Consumer Market Behavior and Pricing
Type
article
Field-Weighted Citation Impact
0.00
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article

AI versus human-generated hotel pricing: Unpacking consumer perceptions of trustworthiness and fairness

Sung W. Lee, Amit Sharma
Tourism Economics
Consumer Market Behavior and Pricing
article

AI versus human-generated hotel pricing: Unpacking consumer perceptions of trustworthiness and fairness

Sung W. Lee, Amit Sharma
article en

Abstract

This study examines hotel guests’ perceptions of AI-generated versus human-generated pricing, focusing on the roles of trustworthiness and fairness in booking preferences. While revenue management traditionally emphasizes price outcomes, growing interest in transparency raises questions about whether consumers should be informed about how prices are determined, particularly when AI is involved. We conducted two experiments using a discrete choice framework and used logistic regression to investigate how guests respond to different pricing sources. Study 1 held price constant, and Study 2 introduced variable price levels to estimate willingness to pay. Results consistently showed a preference for human-generated pricing. Trust in human pricing reduced the likelihood of selecting AI-driven options, while fairness perceptions increased the likelihood of choosing AI pricing. These findings contribute to an emerging discussion on the relevance of pricing process disclosure. Focusing on hotel guests, this study highlights the consumer perspective in evaluating AI adoption in revenue management.

Tourism Economics
Pennsylvania State University (US), Bowling Green State University (US), University of Johannesburg (ZA)
Openalex Percentile: Top 60%
Consumer Market Behavior and Pricing
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AI versus human-generated hotel pricing: Unpacking consumer perceptions of trustworthiness and fairness — Sung W. Lee, Amit Sharma · Tourism Economics (2025) | TGRS Research Map | TGRS