System dynamics model for service quality improvement: a case study of Surakarta tourism, Indonesia

Abstract

Value co-creation concept implies that customers can actively participate in every stage of the service development process. Service providers are encouraged to build a unique and memorable experience to remain competitive. The concept is applicable in tourism settings. This study adopts system dynamics approach to study the conditions of tourism in Surakarta City, Indonesia. This study incorporates SERVQUAL dimensions of tangibility, reliability, responsiveness assurance and empathy to construct a co-created tourism policy in the city. There are five interventions proposed in the study: infrastructure, platform, human resource, events and promotions. The study reveals that to increase the number of tourists, Surakarta city is urged to invest bigger in the transportation sector and perform interactive online platform to accommodate a co-creation among stakeholders in the tourism sector. This study proposes alternatives to help the decision maker to understand the complexity of tourism sector in Surakarta both in theory and practice.