AI versus human-generated hotel pricing: Unpacking consumer perceptions of trustworthiness and fairness

This study examines hotel guests’ perceptions of AI-generated versus human-generated pricing, focusing on the roles of trustworthiness and fairness in booking preferences. While revenue management traditionally emphasizes price outcomes, growing interest in transparency raises questions about whether consumers should be informed about how prices are determined, particularly when AI is involved. We conducted two experiments using a discrete choice framework and used logistic regression to investigate how guests respond to different pricing sources. Study 1 held price constant, and Study 2 introduced variable price levels to estimate willingness to pay. Results consistently showed a preference for human-generated pricing. Trust in human pricing reduced the likelihood of selecting AI-driven options, while fairness perceptions increased the likelihood of choosing AI pricing. These findings contribute to an emerging discussion on the relevance of pricing process disclosure. Focusing on hotel guests, this study highlights the consumer perspective in evaluating AI adoption in revenue management.