Main Article Content
Abstract
This research explores the application of artificial intelligence (AI) technologies in transforming the analysis of customer behavior and refining customer loyalty strategies in the hospitality sector. Most traditional loyalty programs are characterized by static segmentation and standardized reward frameworks, often disregarding evolving customer priorities and shifting market dynamics. Using an AI-powered system based on deep learning, natural language processing, and predictive analytics, we analyzed 3.2 million transactions from 846,000 customers across five international hotel chains globally. The system identifies behavioral patterns that are overlooked by traditional analysis methods through the continuous processing of heterogeneous data streams such as booking, service usage, social media sentiment analysis, and feedback loops. Results indicate that customer retention increased by 27.3% while AI-driven strategies heightened engagement with loyalty programs by 42.1%, yielding 18.5% additional revenue per loyal customer when juxtaposed with traditional methods. The framework's dynamic loyalty incentive modification and proactive journey mapping surpass conventional segmentation techniques through hyper-personalized recommendations. This work advances the hospitality management body of knowledge by formulating a robust architectural design to formulate loyalty strategy design and provide implementation frameworks for hoteliers seeking the integration of advanced technologies in customer relationship management. Futuristic lines of inquiry are the ethical considerations of algorithmic and automated decision-making in the customer relationship management domain and the effectiveness of AI-powered loyalty programs in different cultures.
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References
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- Phillips, P., et al., Understanding the impact of online reviews on hotel performance: an empirical analysis. Journal of travel research, 2017. 56(2): p. 235-249.https://doi.org/10.1177/0047287516636481
- Galliers, R.D. and D.E. Leidner, Strategic information management: challenges and strategies in managing information systems. 2014: Routledge.https://doi.org/10.4324/9781315880884
- Li, H., et al., Comprehending customer satisfaction with hotels: Data analysis of consumer-generated reviews. International Journal of Contemporary Hospitality Management, 2020. 32(5): p. 1713-1735.http://creativecommons.org/licences/by/4.0/legalcode
- Wang, P.Q., Personalizing guest experience with generative AI in the hotel industry: there's more to it than meets a Kiwi’s eye. Current Issues in Tourism, 2025. 28(4): p. 527-544. https://doi.org/10.1080/13683500.2023.2300030
References
Koo, B., J. Yu, and H. Han, The role of loyalty programs in boosting hotel guest loyalty: Impact of switching barriers. International journal of hospitality Management, 2020. 84: p. 102328.https://doi.org/10.1016/j.ijhm.2019.102328
Al-Hyari, H.S.a., H.M. Al-Smadi, and S.R. Weshah, The impact of artificial intelligence (AI) on guest satisfaction in hotel management: An empirical study of luxury hotels. Geo Journal of Tourism and Geosites, 2023. 48: p. 810-819.DOI 10.30892/gtg.482spl15-1081
Lentz, M., O. Berezan, and C. Raab, Uncovering the relationship between revenue management and hotel loyalty programs. Journal of revenue and pricing management, 2021. 21(3): p. 306.doi: 10.1057/s41272-021-00331-0
Singh, P. and V. Singh, The power of AI: enhancing customer loyalty through satisfaction and efficiency. Cogent Business & Management, 2024. 11(1): p. 2326107.https://doi.org/10.1080/23311975.2024.2326107
Alsayat, A., Customer decision-making analysis based on big social data using machine learning: a case study of hotels in Mecca. Neural Computing and Applications, 2023. 35(6): p. 4701-4722.https://doi.org/10.1007/s00521-022-07992-x
Said, S., The role of artificial intelligence (AI) and data analytics in enhancing guest personalization in hospitality. Journal of Modern Hospitality, 2023. 2(1): p. 1-13.DOI:10.47941/jmh.1556
Zahidi, F., B.B. Kaluvilla, and T. Mulla, Embracing the new era: Artificial intelligence and its multifaceted impact on the hospitality industry. Journal of Open Innovation: Technology, Market, and Complexity, 2024. 10(4): p. 100390.https://doi.org/10.1016/j.joitmc.2024.100390
Alghamdi, A., A hybrid method for customer segmentation in Saudi Arabia restaurants using clustering, neural networks and optimization learning techniques. Arabian Journal for Science and Engineering, 2023. 48(2): p. 2021-2039. https://doi.org/10.1007/s13369-022-07091-y
Badouch, M. and M. Boutaounte, Design and Implementation of a Hotel Recommendation System Using Deep Learning, in AI and Data Engineering Solutions for Effective Marketing. 2024, IGI Global. p. 388-408.DOI: 10.4018/979-8-3693-3172-9.ch019
Kshetri, N., et al., “So what if ChatGPT wrote it?” Multidisciplinary perspectives on opportunities, challenges and implications of generative conversational AI for research, practice and policy. International Journal of Information Management, 2023. 71: p. 102642.https://doi.org/10.1016/j.ijinfomgt.2023.102642
Dwivedi, Y.K., et al., Leveraging ChatGPT and other generative artificial intelligence (AI)-based applications in the hospitality and tourism industry: practices, challenges and research agenda. International Journal of Contemporary Hospitality Management, 2024. 36(1): p. 1-12.https://doi.org/10.1108/IJCHM-05-2023-0686
Gatera, A., Role of artificial intelligence in revenue management and pricing strategies in hotels. Journal of Modern Hospitality, 2024. 3(2): p. 14-25.DOI:10.47941/jmh.1957
Bulchand-Gidumal, J., et al., Artificial intelligence’s impact on hospitality and tourism marketing: exploring key themes and addressing challenges. Current Issues in Tourism, 2024. 27(14): p. 2345-2362.https://doi.org/10.1080/13683500.2023.2229480https://doi.org/10.1080/13683500.2023.2229480
Lo, F.-Y. and N. Campos, Blending Internet-of-Things (IoT) solutions into relationship marketing strategies. Technological Forecasting and Social Change, 2018. 137: p. 10-18.https://doi.org/10.1016/j.techfore.2018.09.029
Manoharan, G. and S.P. Ashtikar, AI Era in Hospitality: The New Frontier in Guest Satisfaction and Operations, in Digital Disruption in Hospitality, AI, and Emerging Technologies: A Roadmap to Personalized Experiences, Enhanced Operations, and Revenue Growth. 2025, Emerald Publishing Limited. p. 59-77. https://doi.org/10.1108/978-1-83608-796-020251019
Phillips, P., et al., Understanding the impact of online reviews on hotel performance: an empirical analysis. Journal of travel research, 2017. 56(2): p. 235-249.https://doi.org/10.1177/0047287516636481
Galliers, R.D. and D.E. Leidner, Strategic information management: challenges and strategies in managing information systems. 2014: Routledge.https://doi.org/10.4324/9781315880884
Li, H., et al., Comprehending customer satisfaction with hotels: Data analysis of consumer-generated reviews. International Journal of Contemporary Hospitality Management, 2020. 32(5): p. 1713-1735.http://creativecommons.org/licences/by/4.0/legalcode
Wang, P.Q., Personalizing guest experience with generative AI in the hotel industry: there's more to it than meets a Kiwi’s eye. Current Issues in Tourism, 2025. 28(4): p. 527-544. https://doi.org/10.1080/13683500.2023.2300030