Abstract
The study of service innovation has gained relevance in recent years, but there is a lack of empirical research analysing the factors that favour it. The growing competition arising from burgeoning global markets aggravates the demand for hotels to innovate their services to continuously ensure success. The aim of this study is to test the moderating effect of service innovation in hotel services on customer value within the context of 3-star hotels in Jakarta. A conceptual model is developed by proposing five hypotheses. 150 respondents of hotel guests are collected through questionnaire within three months periods. The model is examined using structural equation modelling. The result shows that customer value was influenced by service quality and customer satisfaction and service innovation has a positive moderating effect on customer value. This study contributes to the hotel industry and innovation management literature by supplying suggestions for forming innovative strategies in the fierce market competition according to the customers' preferences of hotel services.
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