Vol. 7, Issue 2, Part G (2025)

The study examines the impact of AI-driven transformation on customer decision-making in hotel selection. It investigates the role of AI in improving customer experience in selecting the hotels, focusing on AI-driven tools such as dynamic pricing, smart reviews and sentiment analysis, voice search and booking, fraud detection and secure payments, enhanced personalization and recommendation, convenience & time-saving and AI-driven virtual assistants & Chatbots. The study also explores the challenges customers face, including a lack of personalization accuracy, trust issues, data privacy and security concerns, limited human interaction, and internet and technical constraints. The primary data was collected through a structured questionnaire from 200 customers using a convenient sampling method. Tools used for this study are Percentage analysis, Descriptive Statistics, Independent t-test, One Way ANOVA and Exploratory factor analysis. The findings provide valuable insights into the effectiveness of AI in hotel selection and help the customer to know the role, challenges and satisfaction level associated with the adoption of AI in the hospitality sector.