AI agents may redefine hotel customer loyalty study finds

The rise of artificial intelligence-powered agents will add complexity to hotel marketing, according to researchers at Florida Atlantic University. (CandyRetriever via Getty Images)

Key Findings

• Artificial intelligence-powered agents are poised to become the hospitality industry's "new gatekeepers of loyalty," according to Florida Atlantic University researchers in their paper, "Artificial Intelligence (AI) Agents and the Future of Customer Loyalty".
• As travelers increasingly rely on AI agents for hotel searches, price checks, and bookings, algorithms may increasingly make travel decisions, potentially shifting loyalty from brands to specific agents or online ecosystems.
• Hotel marketers must adapt by designing experiences for both human guests and AI decision-makers, using customer data to enhance algorithmic visibility and tailor experiences.

Industry Implications

• FAU Professor Anil Bilgihan warns: "Hotels need to prepare for a future where a guest's preferred brand may be decided before the guest even opens their phone."
• While AI will change marketing strategies, Bilgihan notes that "the foundation of loyalty will always be exceptional customer experience once [guests] arrive."
• Associate Professor Melanie Lorenz emphasizes: "Hotels that design experiences for both human guests and digital decision-makers will lead the next wave of personalized, predictive hospitality."

Current Challenges

• 50% of hotel loyalty program members believe programs are no longer delivering the value they once promised, per Accenture's latest survey.
• However, effective loyalty programs can drive greater spending on-property, according to Choice Hotels International's VP of Loyalty.

Future Outlook

The study suggests AI agents could integrate with IoT technology to enhance on-property personalization, marking a significant shift in how hotels approach customer relationships and loyalty strategies.