The paradox of immersive artificial intelligence (AI) in luxury hospitality: how immersive AI shapes consumer differentiation and luxury value
International Journal of Contemporary Hospitality Management
ISSN: 0959-6119
Article publication date: 16 April 2024
Issue publication date: 14 October 2024
Abstract
Purpose
This paper aims to bridge the extended reality framework and the luxury hospitality literature by providing insights into how immersive technologies using artificial intelligence (AI) can shape luxury value and consumer differentiation.
Design/methodology/approach
The authors conducted three experimental studies comparing immersive AI versus traditional hospitality across luxury contexts (hotels, restaurants and spas). Study 1 investigates the effect of immersive AI (vs traditional hospitality) on customers’ behavioral intentions and the need for differentiation using virtual-assisted reality. Study 2 tests the underlying mechanism of the need for differentiation and luxury value in an augmented reality context. Study 3 provides additional support for the proposed underlying mechanism using virtual-assisted reality in luxury hospitality.
Findings
The findings reveal that immersive AI (vs traditional) luxury hospitality reduces customers’ behavioral intentions of using such services and perceived luxury value. Moreover, the findings indicate that the intention to use immersive AI (vs traditional) luxury hospitality services is contingent upon customers’ need for differentiation.
Originality/value
The findings have important theoretical and managerial implications for immersive technologies in luxury hospitality. They shed light on the dynamics between integrating immersive AI into luxury hospitality and its impact on customers’ differentiation motives and perceived luxury value. The findings reveal the detrimental effect of using immersive AI (vs traditional hospitality) within this context.
Keywords
Acknowledgements
This work received partial support from national funds through FCT (Fundação para a Ciência e a Tecnologia), under the projects –UIDB/04152/2020 and DSAIPA/DS/0113/2019– Centro de Investigação em Gestão de Informação (MagIC)/NOVA IMS.
Funding: Fundação para a Ciência e a Tecnologia; DSAIPA/DS/0113/2019; Fundação para a Ciência e a Tecnologia; UIDB/04152/2020.
Citation
Gonçalves, A.R., Costa Pinto, D., Shuqair, S., Mattila, A. and Imanbay, A. (2024), "The paradox of immersive artificial intelligence (AI) in luxury hospitality: how immersive AI shapes consumer differentiation and luxury value", International Journal of Contemporary Hospitality Management, Vol. 36 No. 11, pp. 3865-3888. https://doi.org/10.1108/IJCHM-11-2023-1689
Publisher
:Emerald Publishing Limited
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