Artificial intelligence in the hospitality industry: benefits, barriers and labour market disruption

Purpose This study aims to examine the current state of Artificial Intelligence (AI) integration in the hospitality industry, focusing on luxury and upscale hotels in Türkiye. This study explores how executives perceive the benefits and barriers associated with AI adoption and investigates their views on AI’s potential to disrupt existing labour structures within the sector. Design/methodology/approach Qualitative research using in-depth interviews with hotel executives based in Türkiye was adopted, and the data was analysed using a hybrid approach of data- and theory-driven thematic analysis. Findings AI is apparently perceived as various forms of data-driven technology undertaking tasks that are traditionally undertaken by humans. AI adoption in hospitality seems to be in its infancy, with current applications involving e-check-in/out, instant translation, responding to online reviews, revenue management software (e.g. rate setting) and in-room entertainment. The findings of this study also suggest that AI is perceived as beneficial in addressing staff shortages, increasing efficiency, reducing costs and fostering guest satisfaction. However, high investment costs, risks associated with AI failure, cultural barriers, technology resistance, guest dissatisfaction and lack of personal touch were perceived as key barriers to AI adoption in hospitality businesses. The findings suggest that AI is perceived as a potential contributor to unemployment although the human factor cannot be fully replaced in certain functions that require human knowledge and skills. Practical implications While the limited AI integration in hospitality operations might be unsurprising given the recency of various revolutionary AI applications, to remain competitive, hospitality businesses need to be both proactive and cautious in adopting AI. Proactive adoption might involve operational aspects including revenue management and monitoring online reputation where social interaction does not typically exist. Caution should be taken, however, in adopting AI where social values of hospitality service encounters could be potentially harmed especially when catering to and targeting market segments that resist self-automation of services and appreciate human interaction. Originality/value Research exploring AI adoption in business environments has been exponentially growing over the past few years. While the present study is not the first to examine AI adoption in hospitality operations, existing AI research within the realm of tourism and hospitality remains notably fragmented indicating the need for more empirical investigation. In addition, AI hospitality research seems to be biased toward the demand side (i.e. customers/guests) with limited work focusing on the supply side (i.e. hospitality firms). Hence, the present study provides timely empirical evidence on how AI is adopted as well as the benefits of and barriers to AI adoption.