Exploring AI-driven phygital experiences: the case of ultra-high-net-worth individuals travel concierge services

This study investigates how Ultra-High-Net-Worth Individuals (UHNWIs) engage with AI-powered travel concierge services, focusing on their influence on phygital (physical + digital) customer experiences. Anchored in Self-Determination Theory, we conducted in-depth interviews with UHNWI users to uncover the psychological mechanisms driving satisfaction, engagement, and loyalty. Findings reveal that while AI services significantly enhance cognitive immersion and convenience—fulfilling needs for autonomy and competence—they often fall short in addressing relatedness, particularly in the transition from digital planning to physical execution. This gap undermines the holistic luxury experience expected by UHNWIs. The study contributes to the literature by extending theoretical insights into AI, phygital integration, and luxury customer behavior. It introduces a validated framework for understanding the dynamics of AI-driven phygital experiences in elite service environments. Managerial implications stress the need for seamless integration between digital tools and human touchpoints to meet the elevated expectations of this elite customer segment and sustain competitive advantage in luxury service innovation.