The Effects of Service Innovation on Perceived Value and Guest’s Return Intention — A Study of Luxury Hotels in Ho Chi Minh City, Vietnam

Abstract

Abstract-This research aimed to explore factors affecting to service innovation and how well the influence of innovative practices on the way guests perceiving value and their intention to return the hotels. Quantitative research approach was applied with convenient sampling technique and a completed set of well-structured questionnaires was delivered directly to 300 respondents who were foreign tourists staying at three to five-star hotels in Ho Chi Minh City, Vietnam. This study found that marketing-focused innovation, process innovation, price innovation, hotel types, customization of service, and use information technology were positively correlated with guest's return intention. In addition, the empirical results showed that factors of pricing innovation, process innovation and hotel types provided both indirect and indirect effects towards the return intention. IndexTerm-Hotel types, process innovation, marketing-focused innovation, pricing innovation, perceived value, guest return intention.

تقییم الأنشطة الابتکاریة فی الفنادق باستخدام تحلیل الأهمیة والأداء

“…Service innovation Khuong and Giang (2014) explained that innovation is one of the most competitive advantages that make a company stands up to the fierce competition. Also, service innovation is perceived as the concept of service, a means of customer interaction, a system to provide services, or the concept of technology that is new or variable to a great extent.…”

“…Moreover, Verma et al (2008, p.7) defined service innovation as "The introduction of new or novel ideas which focus on services that provide new ways of delivering a benefit, new service concepts, or new service business models through continuous operational improvement, technology, investment in employee performance, or management of the customer experience". Furthermore, the services industry covers a large scale of activities, and many studies support the types that affect innovation services, namely innovative hotel types, customization of service, use of information technology, process innovation, marketing-focused innovation, brand differentiation, and pricing innovation (Khuong & Giang, 2014). Veerakumaran (2009) pointed out that innovation in the service is intended to provide new services as well as the development of the available services.…”

“…Also, because of increasing pressure on the hospitality industry to be more environmentally friendly (Foster et al, 2000;Lynes & Dredge, 2006;Manaktola & Jauhari, 2007). Also, Khuong and Giang (2014) revealed that the healthcare hotel is considered an innovative form of service in terms of hotel type. Furthermore, (Han 2013;Han & Hyun 2014) identified healthcare hotels as a target market for customers who want to have access to healthcare / aesthetic services besides travel.…”

Factors Affecting Repurchase Intention towards Luxury Hotels – A Mediation Analysis of Guest Satisfaction

“…It is suggested that the further research should invest more time and select more factors to build more effective research model. The accuracy and effectiveness should be better when additional factors are investigated such as: Price Perception [40], Marketing focused innovation [3], Word of Mouth [41]. Future study can consider implementing these factors into the research models to investigate.…”

“…Additionally, hotel companies are facing with increasing competition from other lodging properties such as extended-stay properties, bed-and-breakfasts and campgrounds [2]. Therefore, building the sustainable competitive advantage for hotels has become an important consideration [3]. The sustainable and retain the customers for the future.…”