Authors: Akshatha
Abstract: With the advent of AI and predictive customer behaviour, the luxury hospitality industry is undergoing a significant transformation in how organisations engage with guests and build long-term loyalty. AI-powered analytics enables real-time, continuous insights into consumer behaviour, far beyond what traditional segmentation methods can deliver. Machine learning algorithms uncover complex patterns, forecast future preferences, and deliver personalised experiences at scale shifting the focus from reactive customer service to predictive relationship management. Yet algorithmic intelligence carries limitations: over-reliance on data-driven systems risks overlooking the emotional and situational dimensions of consumer conduct. This paper develops a strategic service-operations framework illustrating how AI-driven CRM systems can leverage algorithmic consumer behaviour to optimise repeat purchase and customer retention dynamics for luxury UK hospitality brands.
