Service Innovation Assignment
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Added on 2021-04-17
Service Innovation Assignment
Added on 2021-04-17
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Running Head: SERVICE INNOVATION 1Managing Service Innovation
SERVICE INNOVATION 2Introduction In today’s business world, the hospitality industry is shifting from service-focused, physical assetintensive business to customer centric and experience centric. The organizations in this industryare making various innovations for managing the service by focusing on needs and demands ofcustomers. The major objective of this essay is to evaluate different issues, which are significantfor managing the service strategies in hotel and hospitality industry. Moreover, this essay willexamine different theoretical perspectives on service in a range of settings like; events andconferences, hotels, licensed retails, commercial catering, transport catering and other servicesectors (Robinson and Picard, 2016). For a hospitality business, it is essential to analyze thesefactors and theoretical perspectives to stay competitive in the industry. Theoretical Perspectives of Service The impact of economic conditions, globalization, service development and increasedcompetition have led to changes in the business and operating environment of global hospitalityindustry. It needs service organizations, like hotels to adopt competitive and marketing strategiesto enhance the competitiveness and sustain the customers (Bilgihan, and Neiad, 2015). There arevarious theoretical perspectives, which can be used for examining the services offered byhospitality industry and its sectors such as; events and conferences, hotels, licensed retails,commercial catering, transport catering etc. These theoretical perspectives offer the activities andpractices, which are fully associated with the service recovery and service failure management. One of the most important theoretical perspectives of service is service innovation theory. Thistheory states that implementing innovation in services assists the organizations or businesses tofind new revenue systems by fulfilling the needs and demands of customers to get the thingsdone. For successful service innovation, it is very important to develop synergy between all theelements of service. It enables the organization to respond effectively to the changes in customerbehavior with innovative practices and services. In hotel and hospitality industry, serviceinnovation is a major source of competitive advantage in markets, where the needs andpreferences are changing rapidly (Bowen, 2016). The major reason behind adopting serviceinnovation is innovative business models and technologies. The hotels are making severalinnovations like; self-service, mobile booking, phone as key cards, check-in kiosks, electronicluggage tags, smartphone boarding passes, guest connectivity devices etc.
SERVICE INNOVATION 3To make innovation, there are innovative collaborations among different brands, which operatetheir business different sectors are also building service industries, like; hospitality and tourism.For instance, the Line Hotel in US has partnered with the Linus Bike by offering a vehicle ofbranded bikes for its guests in hotels (Lusch, and Nambisan, 2015). In addition to this, the hotelhas created the maps of domestic bike routes for the guests, so that they can discover their routes.Moreover, Marriott Hotel has collaborated with IKEA Company to develop Moxy brand. Threestar hotels aim at millennial customers, who do not spend on their stay at expensive hotels.Under their service offering, they provide stylish rooms, using neutral tones and artisticcharacteristics and buildings, which are eco-friendly. There are various event organizations,which are using innovative technologies for interactive engagement with the audiences(Carlborg, Kindström, and Kowalkowski, 2014).Another theoretical perspective, which can be applied on service and service strategies inhospitality industry, is role theory. Role theory of HRM has served as a theoretical andconceptual framework for the study of behavior of employees in an organization. In the serviceorganizations, a major objective is to fulfill the needs and demands of customers. This theoryemphasizes on the need to consider how the roles are differently played by the people oforganization. For instance, behavior of managers in a service organization is different from thebehavior of lower level employees. In the hospitality industry, it is useful to implement thistheory as a major source to enhance the understanding of HRM behaviors and practices(Kusluvan, Kusluvan, Ilhan and Buyruk, 2010). There are various five star hotels such as;Holiday Inn and Marriott International are adopting role theory for effective service delivery.Implementation of this theory assists the management for developing service interactions inhotels and other hospitality sectors. Apart from above theories, customer retention management is another important theory. In thecontext of this theory, authors stated that regardless of the efforts of service companies to adoptcompetitive strategies for enticing customers and their efforts to manage the productivity,demand and supply, the customers do not stay loyal to the same service organization. Customersmay buy same services from its competitors due to better quality and prices. To becomesuccessful, service organizations especially hospitality organizations should focus on satisfyingtheir customers and develop relationship. It will lead the organizations to customer retention.
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