Exploring the Adoption Gap of Artificial Intelligence in the Hotel Industry: An Empirical Study of Madurai City

Abstract

This study examines the adoption gap of Artificial Intelligence (AI) in the hotel industry of Madurai, a tier-2 heritage city in India. Data were collected from 200 hotel employees using a structured questionnaire and analyzed using descriptive statistics, Chi-square test, and correlation analysis. The findings reveal low to moderate levels of AI awareness (42.5% for chat bots; 12.5% for robotic services) and extremely low implementation levels (10.0% for chat bots; 1.0% for robotic services). Financial barriers, particularly high implementation cost (mean = 4.6), are identified as the most significant obstacle, followed by technological barriers such as poor internet connectivity (mean = 4.3). Chi-square analysis confirms significant relationships between hotel category, department, and technology usage (p < 0.05), while correlation analysis shows a positive relationship between AI awareness and implementation (r = +0.62). The study recommends financial incentives, infrastructure development, training programs, and phased implementation strategies tailored to different hotel categories. This research provides valuable insights for hoteliers, policymakers, and technology providers targeting non-metropolitan hospitality markets.