Smart services have become very important in the hospitality industry, especially with the advancement of information technology. Smart services improve employees' performance by providing new flexibility and providing insight into processes and tasks. This research aims to explore the impact of smart services on the effectiveness and efficiency of employees' performance in hotels. The research used the descriptive approach with a questionnaire for a cluster sample of hotel employees in three, four, and five-star hotels in Hurghada, Elgona, and Safaga during the period (November 2021 to February 2022). A total of 380 questionnaire forms were conducted among hotel employees. The results reveal that the actual practice of smart services has a positive impact on the effectiveness of employees' performance by 81.1%. Moreover, it has a positive impact on the efficiency of employees' performance by 76.5%. According to the research, hotel management should focus on choosing qualified employees, make extensive infrastructure improvements, and stay abreast of technological advances in the field of artificial intelligence.