Personalizing guest experience with generative AI in the hotel industry: there's more to it than meets a Kiwi’s eye

Abstract

Since its launch in November 2022, ChatGPT has pioneered a new era in AI, globally acclaimed for its content creation and language understanding. This advancement is reshaping industries like hospitality, offering innovative applications but also raising ethical and efficiency challenges. In the context of New Zealand’s hotel industry, renowned for its vibrant and inclusive ‘Kiwi’ hospitality culture, the idea of incorporating generative AI offers a novel perspective. While its application could potentially enhance service efficiency and help to alleviate staff shortages, integration with the country’s deeply rooted cultural values demands a carefully considered approach. This study adopted a qualitative methodology using semi-structured interviews with hotel managers and AI experts in New Zealand. The findings revealed that generative AI holds promises for cost savings, work efficiency and meeting specific social group demands. Concerns have been raised, however, relating to the ability of AI to handle complex interactions, incorporate a sense of Kiwi culture, respond appropriately to service contingency events, maintain data privacy and meet the generational service preferences of guests. The absence of clear AI legislation has led to cautious interest among hotel managers, restrained by concerns around legality, privacy and service quality.