Chapter 2: Economic Fundamentals of the Use of Robots, Artificial Intelligence, and Service Automation in Travel, Tourism, and Hospitality

Purpose: The purpose is to introduce the fundamental economic concepts that must be wrestled with the incorporation of robots, artificial intelligence and service automation (RAISA) into the travel, tourism and hospitality industries.

Design/methodology/approach: This chapter uses cost-benefit analytical framework of the incorporation of RAISA technologies into travel, tourism and hospitality industries.

Findings: The chapter elaborates on the economic fundamentals of RAISA adoption into the travel, tourism and hospitality industries. The analysis reveals that many financial and non-financial costs and benefits need to be considered when taking a decision to use RAISA technologies. Automation of tasks leads to simultaneous substitution and enhancement of human employees. Introduction of RAISA technologies results on inevitable deskilling of some and upskilling of other tourism and hospitality jobs.

Research limitations/implications: The chapter is conceptual and conclusions are limited by the views and interpretations of the authors.

Practical implications: RAISA technologies will become increasingly omnipresent in the travel, tourism and hospitality industries. That is why an understanding of the costs and benefits and many of the practical impediments to the incursion of RAISA into the workplace should be understood to make a transition from human-performed tasks to technology-performed tasks.

Social implications: Replacement of human labour will have significant social implications for the workforce and employers.

Originality/value: This is one of the few publications that discuss the economic aspects of the incorporation of RAISA technologies into travel, tourism and hospitality industries.