The Integration of Artificial Intelligence in Personalized Guest Experiences in Luxury Hotels in Surabaya

Abstract

This study examines how Artificial Intelligence (AI) enhances personalized guest experiences in luxury hotels in Surabaya while addressing the tension between technological efficiency and the human warmth expected in luxury hospitality. Using an explanatory sequential mixed-method design, the study combined survey data from 150 hotel guests with semi-structured interviews involving 10 general managers and IT directors from five five-star hotels. Quantitative data were analyzed using descriptive statistics and multiple regression, while qualitative data were examined through thematic analysis. The results show that AI significantly improves perceived personalization, with smart room controls, AI chatbots, recommendation engines, and predictive housekeeping emerging as key contributors. Smart room controls had the strongest positive effect, indicating that guest value seamless, ambient forms of personalization. However, privacy concern exerted a significant negative influence, revealing that AI benefits diminish when personalization is perceived as intrusive or opaque. The findings also highlight the critical moderating role of human staff responsiveness: AI creates the highest value when combined with empathetic and context-sensitive human interaction. Based on these results, the study proposes the Augmented Hospitality Framework, which conceptualizes luxury service as a hybrid model where AI supports operational intelligence and human staff provide emotional and relational depth. The study contributes to the literature on AI-enabled hospitality in an emerging Southeast Asian market and suggests that successful AI implementation depends on balancing personalization, privacy, and human-centered service.