Fragmented path to AI and smart technology challenges hospitality industry growth

A new academic study warns that the Albanian hospitality industry is split into distinct groups when it comes to adopting artificial intelligence (AI) and smart technologies, exposing both opportunities and gaps in one of the country’s most important service sectors. The research, conducted by researchers from the University of Tirana, provides the most comprehensive analysis to date of how hotels and guesthouses in Albania are preparing for digital transformation.

Published in Tourism and Hospitality, the study “Strategic Readiness for AI and Smart Technology Adoption in Emerging Hospitality Markets: A Tri-Lens Assessment of Barriers, Benefits, and Segments in Albania” combines survey data, factor analysis, clustering, and structural modeling to map the readiness of more than 1,800 licensed accommodation providers across the country.

Who is leading and who is lagging in adoption?

The researchers found that accommodation providers in Albania fall into three clear categories of readiness. Tech Leaders account for just under one-fifth of the market, around 17.7 percent, and demonstrate the strongest intention to adopt new technologies. These businesses are not only aware of AI’s potential but are also actively using advanced digital tools to improve competitiveness and efficiency.

A larger share, 43.5 percent, were identified as Selective Adopters. This group engages with some smart technologies, particularly those considered essential for day-to-day operations, but remains cautious about scaling into more advanced or experimental areas. Their adoption decisions are shaped by specific operational needs rather than a broad digital strategy.

Finally, Skeptics, who make up nearly 39 percent of the industry, show little readiness to adopt AI-driven systems. For them, digitalization remains limited to basic functions such as online booking connections and payment systems. The findings indicate that Albania’s hospitality sector is undergoing what the authors describe as a “two-speed digitalization,” where a minority pushes ahead while the majority lags behind.

What benefits and barriers are shaping readiness?

The study highlights that the environmental context, particularly competitive pressure, plays the most influential role in motivating businesses to consider AI. Hotels and guesthouses under stronger market competition are more likely to perceive AI tools as useful for enhancing services and attracting guests. This perception of usefulness directly feeds into their intention to adopt.

On the other hand, the perceived ease of use of AI systems had little effect on readiness. In other words, even if technologies were seen as user-friendly, businesses were not significantly more likely to adopt them unless they felt competitive necessity. Furthermore, intention to adopt translated into actual use only for the Tech Leaders segment, suggesting that motivation alone is not enough to overcome structural barriers.

Adoption rates remain highly uneven across types of technology. Basic systems such as channel managers and property management software are more widely used, while advanced tools like revenue managers, guest messaging platforms, or AI-powered automation have yet to gain traction. This fragmentation reflects a digital ecosystem where enthusiasm for innovation is growing faster than real-world feasibility.

Barriers identified include high implementation costs, lack of technical expertise, and difficulties integrating systems into existing operations. Smaller operators in rural and cultural heritage regions were particularly affected, with far lower adoption levels compared to providers in central urban areas and coastal tourist hubs. This regional disparity points to a digital divide that risks leaving some parts of Albania’s tourism industry behind.

How should policy and industry respond?

The authors argue that bridging this divide requires targeted policy measures, vendor innovation, and capacity building. For policymakers, this means supporting tailored digitalization strategies that recognize the differences between Tech Leaders, Selective Adopters, and Skeptics. Incentives for training, financing, and infrastructure development could help smaller and more hesitant providers close the gap.

For technology providers, the research suggests offering modular and scalable solutions. Instead of complex all-in-one systems, vendors could design flexible bundles that allow businesses to adopt technologies step by step, reducing the risks and upfront costs. For Skeptics, ensuring baseline adoption of cloud-based property management systems, secure online payment solutions, and basic customer relationship tools is seen as critical.

The study also stresses the importance of skills development. Training programs for managers and staff would not only build digital competence but also reduce resistance rooted in uncertainty or fear of job displacement. By equipping personnel with the knowledge to work alongside AI, hospitality businesses can ensure smoother integration of technology into service delivery.

While the findings focus on Albania, the implications extend to other emerging hospitality markets facing similar challenges. The segmentation of adopters, the dominance of competitive pressure as a driver, and the persistence of financial and organizational barriers are common themes in developing tourism economies. The Albanian case offers lessons on how to design adaptive, tiered strategies rather than one-size-fits-all digital transformation policies.

A fragmented future without coordinated action

The researchers caution that without coordinated action, Albania’s hospitality sector could continue along a fragmented path. Tech Leaders may gain significant advantages by leveraging AI-driven tools, while Skeptics risk falling behind in an increasingly competitive regional market. This divergence could weaken the overall resilience and competitiveness of the national tourism sector, especially as neighboring countries accelerate their own digitalization.

The study’s nuanced segmentation of adopters serves as a roadmap for where interventions could have the greatest impact. By encouraging collaboration between policymakers, technology vendors, and industry leaders, Albania has the potential to transform its hospitality sector into a more adaptive, innovative, and sustainable industry.