Smart Hospitality in the Age of AI: Impact of AI-Driven Personalization on Guest Satisfaction and Loyalty in Hotels

Abstract

The advent of artificial intelligence (AI) transformed hospitality service delivery through innovations such as chatbots, smart room automation, and digital concierge systems. As hotels in emerging urban centers like Metro Cebu increasingly integrate AI technologies to enhance guest experiences, there remains a critical need to assess their impact on guest satisfaction and loyalty empirically. This study addressed that gap by examining the influence of AI-driven personalization on key guest outcomes, with particular attention to the moderating effects of tech-readiness and generational perceptions. A quantitative descriptive-correlational design was employed, utilizing structured surveys administered to 400 hotel guests in Metro Cebu. Statistical techniques, including multiple regression, moderation analysis, and one-way ANOVA, were conducted to evaluate the relationships among five AI personalization features, guest satisfaction, and loyalty intention. The results indicated that all AI personalization features significantly influenced guest satisfaction, with chatbot responsiveness and AI-enabled service accuracy emerging as the strongest predictors. Guest satisfaction exhibited a robust positive effect on loyalty intention (β = 0.663, p < .001), confirming its mediating role in the AI–loyalty relationship. Additionally, tech-readiness significantly moderated the relationship between AI personalization and satisfaction, while generational analysis revealed that younger guests rated AI services more favorably than their older counterparts. The study confirmed the strong reliability and validity of the measurement constructs. These findings provided novel empirical insights into the behavioral dynamics of AI use in hospitality and offered practical recommendations for hotels to implement inclusive, user-centered AI strategies. By aligning AI services with digital competencies and generational expectations, hotels in Metro Cebu enhanced guest experiences, fostered customer loyalty, and positioned themselves competitively in the domain of smart hospitality.