AI-Driven Hyper-Personalization in Hospitality: Application, Present and Future Opportunities, Challenges, and Guest Trust Issues

Raihana Akter Nira
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Raihana Akter Nira: Department of Nutrition and Hospitality Management, The University of Mississippi, P.O. Box 1848, University, MS, 38677, USA

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 4, 5562-5573

Abstract: Artificial intelligence (AI) has significantly transformed the hospitality industry by enabling hyper-personalized guest experiences, enhancing customer satisfaction, loyalty, and overall brand perception, and enhancing operational efficiency. However, its deployment presents a dichotomy of opportunities and challenges, often framed within paradoxes such as the Personalization-Privacy Paradox. While AI-driven personalization fosters value co-creation through tailored services and convenience, it also raises concerns regarding privacy, technology anxiety, reduced human interaction, and loss of control of personal data, leading to potential value co-destruction and consumer trust issues. This review examines the future direction of AI-driven personalization in hospitality by analyzing existing literature and industry trends. It identifies key benefits, ethical considerations, and trust-related challenges, offering insights into strategies that balance AI’s advantages while mitigating risks. The paper concludes with recommendations for future research and industry practices to optimize AI’s role in hospitality.

Date: 2025
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