Abstract
The rapid development of technology has shifted the conventional tourism industry towards the digitalization of the tourism sector. The emergence of travel booking platforms, as a form of technology-based service innovation, is able to simplify traveling activities and previous works of literature have indicated a positive relationship towards customer satisfaction. However, tourist’s behavior has change become more demanding to involve in the creation of value in accordance with their needs and wants. The concept of value co-creation elaborates this issue, offering a new concept of value creation and new roles between service providers and tourists. This study aims to examine value co-creation as mediating variable between IT-based service innovation and customer satisfaction, using DART measurements and SEM-PLS is used to assess the model. The findings prove that IT-based service innovation positively influences value co-creation between users, which can increase customer satisfaction. However, IT-based service innovation does not have a direct impact on customer satisfaction, which indicates that value co-creation fully mediating the relationship between service innovation and customer satisfaction. Thus to enhance customer satisfaction, service providers need to propose service innovation that facilitates customer involvement in value creation, which can be supported by technology. Keywords: Customer satisfaction, Service innovation, Tourism, Travel booking platform, Value co-creation.
Highlights
As we are in the ever-changing era of technology, innovation in the tourism industry is influenced by the role of information and communication technology (ICT)
The results showed that value co-creation fully mediated the relationship between IT-based service innovation and customer satisfaction
The results supported hypotheses 1 and 2, which show the relationship between IT-based service innovation to value co-creation and value co-creation to customer satisfaction
Summary
As we are in the ever-changing era of technology, innovation in the tourism industry is influenced by the role of information and communication technology (ICT). In 2018, technology was used to analyse tourist behaviour and market from generating big data that obtain by various resources such as usergenerated content (online reviews, Twitter tweets, Instagram’s photos, etc.), tourist mobility (GPS data, mobile roaming data, etc.), search engine and transaction data [2]. This phenomenon has resulted in radical changes in how service provider delivers tourism services to customers, from conventional travel agents into a multi-channel network that supported by ICT [3]. If customers are satisfied with the service offerings, they will develop the intention to purchase again in the future, willing to share their experiences with others, not paying attention to competitor’s brand, and even refuse service offerings by other brands [7]
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