Identifying the attributes of blue ocean strategies in hospitality

Abstract

PurposeThe purpose of this study is to identify the characteristics of a blue ocean strategy (BOS) in selected hotels in Taiwan.Design/methodology/approachSemi‐structured interviews and the grounded theory approach were applied in this study. A total of 32 senior and top managers working in the corporate executive office and the divisions of rooms and marketing were selected from international tourist chain hotels and resorts for semi‐structured interviews.FindingsThe results show that the features of BOS are identifying guest value perceptions, innovating distinctive added‐value offerings, developing new market segments, branding and re‐branding, creating a unique hotel ambience, adjusting distribution channels, and establishing strategic alliances.Practical implicationsThe study suggests that in the sampled hotels, hoteliers should integrate a demand‐based pricing strategy with a supply‐based product‐development strategy. Organizational effectiveness could be further advanced in those hotels by the introduction of revenue management based on the determination of variations in guest demand, making it possible to offer different pricing strategies to diverse market segments.Originality/valueThe results show that the sampled hotels should be able to create unique products and services for customers that strengthen their competitive positions in the marketplace of international tourist hotels in Taiwan. This study advances academic knowledge in the field of organizational effectiveness, particularly with respect to managing customer demand and capacity in the hotel industry.