Challenges and Opportunities Presented by AI in the Tourism and Hospitality Sector in Emerging Economies

Abstract

Abstract The adoption of Artificial Intelligence (AI) has become very significant in the contemporary hospitality and tourism economies worldwide. This is because of the numerous opportunities it presents to the industry, such as decreased costs, improved customer satisfaction, increased profits, improved quality, enhanced customer service, segmentation, personalisation and revenue management for better marketing activities. However, the application of AI to positions requiring customer interactions is hampered by issues, including clients’ mistrust, fear, bad experiences, loss of control brought on by autonomous robots and worries about privacy, safety and security. This chapter aims to provide an overview of the adoption of AI in the contemporary hospitality and tourism industries by helping readers appreciate the concept, opportunities, challenges and future trends associated with the adoption of AI in the hospitality and tourism industries. The plausible strategies and way forward for a successful implementation are also recommended in this chapter. This review article may help readers better grasp how AI is being adopted in the hospitality and tourism sectors and the best ways to utilise it amid its challenges. Additionally, it provides support for managers, marketers and other businesses in the hospitality and tourism industries to achieve and improve high business performance by putting the right plans in place to use AI to satisfy the demands and expectations of both customers and staff.