This investigation aims to explore the profound impact of these technologies on marketing strategies within the luxury tourism and hospitality sectors in Portugal and Spain and to provide a comprehensive analysis of their role in enhancing service delivery and molding consumer behavior. Additionally, this research delves into the geographical patterns of online luxury hotel bookings, uncovering how regional economic conditions and cultural factors influence consumer behavior. Through a detailed quantitative examination of 2,048 survey responses, this study investigates how AI and ML technologies are employed to optimize digital marketing strategies, focusing particularly on the effectiveness of remarketing and retargeting tactics and their influence on consumer purchasing decisions. By analyzing the distribution of bookings across various districts in Portugal and Spain, the study highlights the disparities in economic prosperity and their correlation with the frequency and nature of luxury hotel stays. This geographical analysis not only provides insights into the current state of the luxury hospitality market but also sheds light on the broader trends of e-commerce adoption in these regions. The study anticipates that the integration of even more immersive technologies such as augmented reality (AR) and virtual reality (VR) will further blur the lines between digital convenience and tangible luxury, suggesting a continued evolution of luxury tourism where technology enhances both the digital and physical aspects of consumer experiences. AI and ML applications, such as chatbots for 24/7 customer service and predictive analytics for tailoring travel recommendations, have greatly improved customer interaction and operational efficiencies. While the industry benefits from technological advancements, there are ongoing challenges such as concerns over data privacy and the need for constant updates to algorithms to keep pace with evolving market conditions.
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