GenAI in Hospitality Service Sector Study 2026 - LNU - Group 08

This report focuses on customers’ experiences and attitudes towards GenAI tools in the service and hospitality industry. As GenAI tools such as chatbots and digital assistants have become integrated into services like travel planning, booking, and customer service, it is important to understand how these technologies influence the overall service experience. Thus, this study aims to answer the research question: How does the use of generative AI influence customers’ experiences and perceptions of service interactions? For this research, a qualitative research approach was adopted. Data was collected through twelve semi-structured interviews with participants who had recent experience using GenAI in service contexts. They ranged in ages from 19 to 71 years old, and all had recent exposure or experience interacting with service GenAI tools such as chatbots, booking assistants, and travel planning. Prior to the interviews being conducted, consent was obtained, and after they were transcribed, it was peer reviewed and used for analysis, which adopted a thematic approach. Subsequently, quotes were gathered and divided into various first-order concepts, second-order themes, and lastly aggregated dimensions. The findings reveal a complex and somewhat ambivalent perception of GenAI in service interactions. Three aggregate dimensions were identified based on the customers’ experiences. First, GenAI is appreciated for its performance-driving values, like its ability to improve efficiency, save time, and simplify tasks. Second, the findings highlight ethical concerns related to service providers relying on AI at the cost of reducing human interaction, resulting in a lack of emotional understanding in service encounters. Third, participants expressed low trust in AI tools, with concerns regarding credibility and the handling of personal data. These issues lead users to check the accuracy of the information or avoid relying on AI tools. The results suggest that while GenAI is efficient and accessible, it does not replace the need for human interaction in the hospitality sector. Instead, customers prefer a hybrid approach, where AI supports customer service but does not substitute the human element. The study concludes that companies should carefully balance the use of GenAI with human interaction to maintain trust, emotional connection, and a high-quality service experience.