The Impact of Hotel Service Innovation on Guest's Perceived Value and Return Intention

Abstract

In hospitality industry several elements could positively affect return intention, such as hotel service innovation and guest's perceived value. Hotel service innovation consists of in many forms such as innovative hotel types, customization of service, use of information technology, process innovation, marketing-focused innovation, brand differentiation and pricing innovation. Guest's perceived value is classified into: emotional value, social value, price value, and quality value. Using data gathered from in-house guests in a sample of five-star hotels, the current study investigated the impact of hotel service innovation on guest's perceived value and return intention. A survey questionnaire was adopted in this study. The questionnaire consisted of 79 items divided into nine groups as innovative hotel types (IHT), customization of service (CS), use of information technology (UIT), process innovation (POI), marketing-focused innovation (MFI), brand differentiation (BD), pricing innovation (PI), guest's perceived value (GPV), and return intention (RI). The hypothesized conceptual model was tested using structural equation modelling (SEM). Findings revealed that hotel service innovation through innovative hotel types, use of information technology, process innovation, marketing-focused innovation, brand differentiation, and pricing innovation significantly impact guest's perceived value. Also, guest's perceived value significantly impacts return intention. In addition, hotel service innovation through innovative hotel types significantly impact return intention.