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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.

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.

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.

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.

The purpose of this commentary is to present a critically constructive examination of the contribution of service research to the development of services from institutions that offer fair and sustainable living for all humans.

The authors draw upon critical thinking and critical social theory to problematise the neoliberal agenda (e.g. marketisation and privatisation) that shapes the service ecosystems within which the sustainable development goals (SDGs) and service research relating to SDG11 – sustainable cities and communities – and SDG16 – peace, justice and strong institutions – are often based. The authors critically review extant literature aimed at these goals and present constructive pathways for transformative social change to foster fair and sustainable living for all.

The authors find that the United Nations institutions, the SDGs and the service ecosystems that shape the research and practice addressing SDG11 and SDG16 are often grounded in neoliberal capitalist ideology that may inhibit transformative change. While service research has made some relevant and important contributions to support the development of services from institutions that offer fair and sustainable living, there is a need to consider alternative assumptions upon which service research and service design can be based to fully realise such transformative goals.

This commentary encourages service research scholars to engage with critically constructive perspectives that harness critique for transformative change.