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Artificial intelligence (AI) is increasingly becoming part of the hospitality industry. In times of staff shortages, AI used in the industry can have advantages, but it also brings with it the possibility of customer backlash. The purpose of this paper is to understand the potential response of millennial guests to the potential applications of AI in the hotel industry. The emphasis was on which hotel service encounter categories are most suited to replacing employees with AI in the context of the millennial guest experience.

This quantitative research used a survey questionnaire for the data collection. Responses from 169 millennials from six continents were analysed using a combination of descriptive statistics, t-tests, MANOVA tests and Bonferroni tests.

Four service encounter categories were studied: (i) “Check-in”, (ii) “Reception Services (excl. check-in)”, (iii) “Wellness” and (iv) “Food and Beverage Services”. The results showed that of these four categories, “Food and Beverage Services” is more suited to replacing employees with AI than “Wellness”.

The findings of this research are important as they contribute to the body of knowledge related to the implementation of AI in the hospitality industry and provide useful information to policymakers and hotel managers who may wish to identify suitable areas for investment related to AI in their operations.

This study offers useful insight on a cutting-edge topic of AI application for service encounters within the hospitality sector and confirms the suitability of some encounters.