News Summary
A study from Florida Atlantic University indicates that AI agents will serve as new intermediaries in hotel loyalty programs, potentially reshaping guest brand loyalty even before travel apps are accessed. The research stresses the importance for hotels to adapt their loyalty strategies, as AI begins to influence how hotels manage user data and customer relationships. Additionally, hotels must focus on enhancing customer experiences while addressing ethical considerations related to AI functionalities. The study aims to prepare the hospitality industry for the changes AI integration brings.
Florida – A study from Florida Atlantic University (FAU) has revealed that artificial intelligence (AI) agents are set to become the new gatekeepers of hotel loyalty programs. This shift could significantly change how travelers choose hotels, with AI potentially determining brand loyalty before lodging guests even access travel apps on their phones.
According to FAU’s Professor of Hospitality Management Anil Bilgihan, the study indicates that as AI becomes increasingly embedded in travel booking processes, hotels need to rethink their loyalty strategies. Traditionally, hotels have relied on collecting first-party data and using search engine optimization to drive customer engagement. However, with AI acting as intermediaries in customer relationships, these methods may no longer suffice.
The role of AI agents includes managing user data discreetly and streamlining decision-making processes. Unlike traditional channels, AI agents might not share user data with hotel brands, presenting a unique challenge for hotels aiming to maintain direct relationships with their customers.
Future of Hospitality and Personalization
Associate Professor of Marketing Melanie Lorenz emphasized that hotels that accommodate the needs of both human guests and AI decision-makers will be at the forefront of a new era in personalized hospitality. As travelers increasingly rely on AI for recommendations, hotels must ensure their facilities and services are attractive not only to guests but also to these AI systems.
Despite the anticipated transformation driven by AI, the quality of guests’ experiences remains critical for fostering loyalty once they arrive at the hotel. The study suggests that hotels should craft offerings that appeal to both user preferences and the algorithms that guide AI recommendations, thereby improving visibility and appeal in an AI-driven marketplace.
Challenges Facing Loyalty Programs
Research findings highlight that approximately fifty percent of hotel loyalty program members feel that existing programs have fallen short of delivering anticipated value. The paper, titled “Artificial Intelligence Agents and the Future of Customer Loyalty,” posits that the concept of loyalty may begin to pivot from brands toward the algorithms that underpin AI agents.
To stay competitive in the evolving landscape, hotels are urged to innovate their loyalty programs to engage meaningfully with AI systems. Additionally, hotels must place a strong emphasis on providing enriching customer experiences that keep guests coming back.
Ethics and Operational Readiness
The study also addresses ethical concerns related to AI, such as algorithmic bias and the level of consumer understanding regarding AI functionalities. These issues underscore the need for transparency and accountability in how AI systems interact with potential customers.
The current state of hotel loyalty management is fraught with challenges, a sentiment corroborated by a report from New York University. This report notes a significant gap between the potential of AI technologies and the operational readiness of many hotel establishments to integrate these advancements effectively.
This comprehensive study, co-authored by four researchers from FAU, was published in the International Journal of Contemporary Hospitality Management. The insights and recommendations offered through this research aim to prepare the hospitality industry for the imminent changes brought about by AI integration in hotel loyalty programs.
Deeper Dive: News & Info About This Topic
- Hotel Dive: AI Agents Add Marketing Complexity for Hotels
- Wikipedia: Hotel Loyalty Program
- Asian Hospitality: AI Agents in Hotel Loyalty
- Google Search: AI Agents Hotel Loyalty
- Customer Experience Dive: Marriott’s AI Strategy
- Google Scholar: AI in Hospitality Management
- The Wise Marketer: Community Rewards in Miami
- Encyclopedia Britannica: AI in Hospitality
- Hotel Online: HSMAI South Florida Scholarship Recipients
- Google News: Hotel Loyalty Programs
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ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
