Trust, Try, Buy, and Belong: How Does AI Create a Loyalty Loop in Hotels?

Abstract

This study examines the effects of trust in AI, willingness to accept AI, and perceptions of AI performance on brand loyalty in the hospitality industry. The study further posits that purchase intentions mediate the relationship between understudied independent variables and brand loyalty. Drawing on the Technology Acceptance Model, Unified Theory of Acceptance Use of Technology UTAUT, and Trust–Satisfaction theory as the theoretical foundation, the study posits seven hypotheses. Data were collected via an online platform; ultimately, 183 participants participated in the survey. The study tests the hypotheses using Hayes’s Macro PROCESS Model 4 mediation, where the direct and indirect effects were established. The study observes that the direct and indirect effects of trust in AI and the perceived performance of AI on brand loyalty were significant. However, only the indirect effect was significant for the willingness to accept AI on brand loyalty. These observations show that the use of AI-enabled services enhances a stronger intention to book, leading to an improved brand loyalty. The results extend the body of knowledge in this area by linking the unified framework of trust in AI, AI perceived performance, and willingness to accept AI to brand loyalty in the hospitality industry. For managers and hoteliers, this finding is clear, emphasising that the transparent and reliable use of AI enhances purchase intentions and improves brand loyalty.

Affiliated Institutions

• Eastern Institute of Technology NZ
• Wellington Institute of Technology NZ

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