Toward Holistic Experience-Oriented Service Innovation: Co-Creating Sustainable Value With Customers and Society

Abstract

Hospitality exists from the grassroots level of society upward and plays a central role in the global economy. For the many organizations active in this sector and the societies they are based in, innovation in hospitality services is considered their lifeblood. Recent advancements in digitalization, artificial intelligence, robotics, communications technologies, and platform-based new business models are transforming the global business environment at a rapid pace. However, unlike many other service sectors, the hospitality and tourism sectors are unique in their focus on people, experiences, and the wider ecosystem (i.e., society and the environment). The unique makeup of the hospitality sector, therefore, demands a distinctive approach to innovation. This study aims to examine service innovation with a focus on the hospitality sector. It provides a holistic theoretical framework and proposes an agenda for future research. The framework suggests the hospitality experience to be at the core of innovation in this sector. Consequently, hospitality firms must focus on creating value through both technological and nontechnological innovation. This innovation must be facilitated in a symbiotic manner, with a strong focus on people at its center, showcasing the “soul” of the hospitality across the extended “footprints” of the experience.