Artificial Intelligence and Digital Transformation in Tourism and Hospitality: Opportunities, Challenges, and Implications for Service Quality

The tourism and hospitality sector is experiencing a rapid digital transformation driven by artificial intelligence (AI), data analytics, mobile technologies, automation, and increasingly connected service environments. These technologies are changing how travellers search for information, select accommodation, communicate with service providers, and evaluate their experiences. At the same time, hotels and tourism enterprises are using digital tools to improve operational efficiency, personalise services, support employees, and make decisions based on data. This article examines the main opportunities and challenges associated with AI and digital transformation in tourism and hospitality, with particular attention to service quality and the role of human employees. The paper uses a narrative review of recent international research and policy literature. The analysis indicates that AI can support customer communication, demand forecasting, recommendation systems, revenue management, multilingual assistance, and routine operational tasks. However, successful digital transformation depends not only on technology but also on employee skills, data governance, privacy protection, service design, and the preservation of meaningful human interaction. The article argues that technology should be implemented as a tool for strengthening hospitality rather than as a substitute for hospitality itself. The findings are relevant to hospitality managers, tourism educators, students, and policymakers seeking to prepare the sector for a more digital and data-informed future.