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AI-enabled green services in upscale Egyptian hotels raise perceived service quality and, through increased green trust, boost customer loyalty; the effect operates indirectly rather than as a direct AI→loyalty link.

AI-Enabled Green Hospitality Services and Customer Loyalty: The Sequential Mediating Roles of Service Quality and Green Trust
Wagih Mohamed Salama · August 01, 2026 · Tourism and Hospitality
openalex correlational low evidence 7/10 relevance Summary only summary available; pdf_status=paywall DOI Source PDF

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In four- and five-star Egyptian hotels, AI-enabled green hospitality services are strongly associated with higher perceived service quality, which increases green trust and thereby raises customer loyalty, with both individual and sequential mediation observed.

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Despite the growing adoption of AI-enabled green hospitality services, limited research has examined how these services influence customer loyalty through the sequential mediating roles of service quality and green trust. This research investigates the influence of AI-enabled green hospitality services on customer loyalty in Egyptian four- and five-star hotels, mediated sequentially by service quality and green trust. A cross-sectional survey was conducted using convenience sampling, and data were collected from 432 guests staying in four- and five-star hotels in Egypt. The proposed model was analyzed using PLS-SEM. Results indicated that AI-enabled green hospitality services enhance service quality (β = 0.796, p < 0.001), which positively impacts green trust (β = 0.244, p < 0.001). Green trust also showed a positive influence on customer loyalty (β = 0.208, p < 0.001). Both service quality and green trust mediated the relationship between AI-enabled green hospitality services and customer loyalty, both individually and sequentially. The findings also confirmed a significant sequential mediation effect of service quality and green trust in the relationship between AI-enabled green hospitality services and customer loyalty. The study concludes that technological innovation coupled with enhanced service experiences and credible environmental practices increases customer loyalty. Hotels should integrate AI with sustainability initiatives, improve service quality, and communicate environmental commitments transparently to encourage trust and long-term loyalty.

Summary

Main Finding

AI-enabled green hospitality services increase customer loyalty indirectly by substantially improving perceived service quality, which in turn raises green trust; green trust then positively influences customer loyalty. Both service quality and green trust mediate the AI→loyalty relationship individually and in sequence.

Key Points

  • Conceptual chain: AI-enabled green hospitality services → Service quality → Green trust → Customer loyalty.
  • Strong effect of AI-enabled green hospitality services on perceived service quality (β = 0.796, p < 0.001).
  • Service quality positively affects green trust (β = 0.244, p < 0.001).
  • Green trust positively affects customer loyalty (β = 0.208, p < 0.001).
  • Mediation: service quality and green trust each mediate the AI→loyalty link, and a significant sequential mediation (AI → service quality → green trust → loyalty) was found.
  • Practical takeaway: combining technological innovation (AI) with visible environmental practices and high service standards fosters trust and repeat patronage.

Data & Methods

  • Sample: 432 hotel guests staying in four- and five-star hotels in Egypt.
  • Design: Cross-sectional survey using convenience sampling.
  • Analysis: Partial Least Squares Structural Equation Modeling (PLS-SEM).
  • Limitations noted by the study: cross-sectional design limits causal claims; convenience sampling limits generalizability beyond the sampled hotels and context.

Implications for AI Economics

  • Investment rationale: Strong link from AI-enabled green services to service quality suggests high marginal returns in perceived experience—supporting investment in AI as a demand-side enhancer that can generate longer-term revenue through increased loyalty.
  • Signalling and trust: AI plus credible green practices function as a market signal that builds green trust. Trust is an economic asset that reduces transaction costs (e.g., fewer switching behaviors) and increases customer lifetime value.
  • Policy and firm strategy: Firms should integrate AI with verifiable sustainability actions and transparent communication to avoid greenwashing risks; regulators might promote standards or certifications that amplify trust effects.
  • Cost–benefit considerations: While upfront AI and sustainability investments are required, the sequential pathway indicates benefits accrue via improved service quality and trust—economic analyses should model these intermediate channels (e.g., effect on repeat purchases, willingness to pay, reduced marketing costs).
  • Labor and distributional effects: Adoption may reshape labor demand in hospitality—automation of routine tasks could reallocate labor toward relationship-driven services that reinforce service quality and green commitments.
  • Research directions for AI economics: quantify monetary impact of the mediated effects (e.g., incremental revenue per loyalty point), test causality with longitudinal/experimental designs, assess heterogeneity across markets and hotel tiers, and evaluate welfare implications of AI-enabled green service diffusion.

Assessment

Paper Typecorrelational Evidence Strengthlow — Cross-sectional convenience survey with self-reported measures establishes associations but cannot support causal claims; results are internally consistent but vulnerable to common-method bias, reverse causality, and sampling limits. Methods Rigormedium — Appropriate statistical approach (PLS-SEM) and a reasonable sample size (n=432) support estimation of the proposed mediation model, but the non-probability sampling, single-country single-sector setting, and cross-sectional design weaken identification and external validity. SampleCross-sectional survey of 432 hotel guests staying in four- and five-star hotels in Egypt; convenience sampling; self-reported measures of AI-enabled green services, perceived service quality, green trust, and customer loyalty. Themeshuman_ai_collab adoption GeneralizabilityLimited to upscale (4–5 star) hotels in Egypt—may not generalize to lower-tier hotels, other countries, or non-hospitality sectors, Convenience sampling limits representativeness of hotel guests, Cross-sectional, self-reported data limit causal inference and may be affected by common-method or social-desirability bias, Focus on green/eco services and culturally specific attitudes toward sustainability may reduce transferability to markets with different green norms

Claims (5)

ClaimDirectionOutcomeConfidence & EvidenceDetails
AI-enabled green hospitality services positively affect guests' perceived service quality. Output Quality positive Perceived service quality
Reading fidelity high
Study strength medium
n=432
β = 0.796, p < 0.001
0.3
Perceived service quality positively affects green trust. Ai Safety And Ethics positive Green trust
Reading fidelity high
Study strength medium
n=432
β = 0.244, p < 0.001
0.3
Green trust positively affects customer loyalty. Consumer Welfare positive Customer loyalty
Reading fidelity high
Study strength medium
n=432
β = 0.208, p < 0.001
0.3
Service quality and green trust each individually mediate the relationship between AI-enabled green hospitality services and customer loyalty. Consumer Welfare positive Customer loyalty through indirect effects via service quality and green trust
Reading fidelity high
Study strength medium
n=432
0.3
AI-enabled green hospitality services have a significant sequential indirect effect on customer loyalty through perceived service quality and then green trust. Consumer Welfare positive Customer loyalty through the sequential pathway AI-enabled green hospitality services → service quality → green trust
Reading fidelity high
Study strength medium
n=432
0.3

Notes