Whose hotel does the AI recommend? An algorithm audit of reputation signals in LLM-assisted hotel selection

· Source: Artificial Intelligence · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Data Science & Analytics · Depth: Advanced, quick

Summary

An algorithm audit investigated how large language model (LLM) assistants recommend hotels, analyzing twelve open-weight and proprietary models. Using a randomized choice-based conjoint, researchers assessed the impact of guest rating, review volume/recency, management response, chain affiliation, price, eco-certification, and list position. Findings reveal guest rating and price dominate LLM selections, with a top rating increasing selection by 31.6 percentage points and a high price decreasing it by 30.0. LLMs over-weight eco-certification and ignore management response. Crucially, list position, a content-free artifact, causally shifts recommendations, valued at approximately \$12 per night. Stated reasons for recommendations often imperfectly track these revealed weights.

Key takeaway

For hotel marketers optimizing online visibility, prioritize maximizing guest ratings and competitive pricing, as these signals heavily influence LLM recommendations. Be aware that list position also significantly impacts selection, worth about \$12 per night, suggesting a need to understand platform-specific ranking algorithms. Additionally, scrutinize LLM-generated recommendation rationales, as they may not accurately reflect the underlying decision weights, impacting your strategy for generative engine optimization.

Key insights

LLMs prioritize guest ratings and price in hotel recommendations, but also exhibit biases like over-weighting list position.

Principles

Method

A pre-specified algorithm audit used a randomized choice-based conjoint across personas, prompt templates, and twelve LLMs to estimate marginal component effects of hotel signals.

In practice

Topics

Best for: Research Scientist, AI Scientist, AI Ethicist, AI Product Manager

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Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial Intelligence.