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The main purpose of this chapter is to analyze the relationship between service innovation and experience creation in the context of spas, wellness and medical tourism. The objectives include providing an overview of service innovation theory and models and applying them to the spa, wellness and medical tourism sectors.

Primary research was undertaken with the purpose of identifying the most important elements in the experiences of spa and wellness guests and tourists. An online questionnaire was collected from 17 different types of spa and wellness facilities from 56 countries including all kinds of spa, wellness hotels, and retreats. Information given was based on three major demand segments: local customers, domestic tourists, and international tourists. A case study is also given of Pärnu hospital in Estonia, where innovative practices are being implemented to enhance the patient experience.

Findings suggested that some aspects of innovation (e.g., design and technology) are not as important as expected, but evidence-based treatments, medical services, and natural and local resources are.

The research gives important insights into customer preferences and current and future trends; however, the research only focused on operator rather than consumer perspectives. This would require further research.

The research findings provide useful information to operators who are trying to create innovative, unique, and competitive customer services.

Existing service innovation models are applied to new sectors (spa, wellness and medical tourism) and new insights are given into how these sectors can increase innovation and enhance customer experiences.

The aim of this chapter is to discuss the experience-centric strategy from the aspect of innovation management, its contribution to designing and managing valuable tourism experiences, especially in context of guided tours.

The study reviews literature on experience-centric approaches and innovation, it discusses the concepts of experience-centric innovation and experience innovation, particularly the role of experience design and market intelligence in experience-centric service processes. It analyzes empirical data from interviews with eleven tour providers.

Creating novel experiences through product innovation was found as the most common type of innovation on frames of guided tours. The group size was identified as an influential feature of the experience design, and imitation has proved to be a major threat. The role of knowledge management and dynamics of knowledge were explored, too, and tour guides were identified as experiential knowledge collectors and/or creators; thus their role in knowledge management is crucial alongside the market intelligence. In contract with theoretical proposition, costumer-driven innovation is not seen by tour providers as a crucial issue in creating memorable experiences.

The chapter studied only traditional guided tours where the customer meets the service provider, and the data was collected only in Budapest.

The chapter emphasized the role of market intelligence and experience design in the process of experience-centric service provision for a successful innovation – in frames of a theoretical model. The empirical results identified some main issues and obstacles in implementation of the experience-centric approach and innovative tools and processes in context of guided tours.

This chapter explores the relationship between emotional design and customer experience. It begins with an introduction to the concept of emotional design, comprising behavioral, visceral, and reflective elements. Next, the nature of service experiences is examined, leading to a framework that classifies services according to their functional and experiential positions. Understanding customer goals allows this framework to be used to design customer experiences, in terms of the journey that customers take when consuming a service. The chapter then discusses the cognitive traits associated with designers and argues that they are well suited to understanding the customer journey and designing the prerequisites for the desired experience. Two different approaches to understanding and acting on customer requirements are explored – user centered and design driven.

Purpose: The purpose of this chapter is to critically evaluate the implementation of technologies from the perspective of guest services, innovation and visitor experiences. The paper focuses on the value of robots, service automation and artificial intelligence in hospitality and examines their influence on service quality

Design/methodology/approach: The chapter is a critical and conceptual overview of the emergence and implementation of robots, service automation and artificial intelligence in the hospitality with an emphasis on service, service quality and guest experience. A comprehensive overview of the academic literature of customer service and guest experience is combined with industry examples from various service operations in hospitality in order to examine the implementation of RAISA in the hospitality industry from a range of academic and practical viewpoints.

Findings: The chapter argues that despite the global acceptance of technologies in service industries in general and hospitality in particular, it remains difficult to find the right balance between digital and human interactions. In the context of service quality, the implementation of robots and service automation is increasingly important for gaining a competitive advantage, but the provision of more personalized guest experiences remains controversial.

Originality/value: The study provides a comprehensive and systematic review of RAISA in a hospitality context and examine their impacts on service quality. The chapter is a critical examination of the potential of RAISA to transform the service experience and raises some fundamental questions regarding the need for RAISA, its practical implications and impact over the understanding and measurement of service quality.

This chapter argues that substantial potential exists for service encounter-based innovation in tourism. However, there are also a number of obstacles. Based on theoretical discussions on potentials and obstacles, a Knowledge Chain Model of service encounter-based innovation in tourism is developed. It suggests how weak or broken knowledge chains limit companies’ potential for benefiting from service encounter-based innovation. The relevance of the model is illustrated by a comparative case study of four tourism companies. In light of the theoretical frameworks and empirical findings, the chapter suggests how experimental methods can join research and practice to enhance the innovative potential of tourism companies while providing the research community with valuable knowledge.

The main aim of this chapter is to show the paramount role that both creativity and innovation have in order to state competitive advantages in tourism.

The approach is based both on literature review and on various business cases to underline the ideas derived from the literature review.

An entrepreneurial mind must be creative and innovative. This simple idea takes a special value in tourist businesses because of the need to survive in a global market full of competitive actors, dynamism and volatility of preferences in consumers’ attitudes.

This chapter is an approaching essay based mainly on a general literature review supported with several case studies.

Tourism entrepreneurs must take into account the role that creativity and innovation have for their business plans. These two dimensions are the head and tail of the same coin that will help them not only to create value for tourist customers but also to make the difference between them and their competitors.

This chapter shows the connections between creativity, innovation and competitive advantages, and their critical value for any entrepreneur who wants to deploy a successful business venture.

Traditionally, firms have been dependent on internal sources such as their own employees – and up to a certain extent, on some external sources, their customers – for innovation. However, in the current scenario of technological dynamism, firms are exploring multiple sources to generate ideas for innovation. Therefore, there is a need to understand the relative effect of various sources of innovations on a firm’s performance.

We offer a conceptual framework where we identify six distinct sources of innovations – firm, customers, external network, competition, macro-environment, and technology and how they create value for focal firms especially their brand equity. We introduce a taxonomy of various costs and benefits related to innovations. We then argue using our proposed taxonomy to understand the relative strengths of various sources of innovation affecting a firm’s brand equity.

We discuss and compare the relative effects of these sources of innovations on a firm’s brand equity by rank-ordering the sources. The customers and the technology as a source of innovation have the maximum impact on the firm’s brand equity followed by the marginal impact of macro-environment and external network of a firm. The firm itself has a moderate impact on its brand equity, while competition has the minimal impact. Further, we also discuss how the relationship is moderated by different innovation characteristics (nature and type of innovations).

The main practical implication is to create awareness among managers about various costs and benefits of the proposed six sources of innovations and their effects on brand equity. Managers would be able to prioritize their sources of innovation based on firms’ current needs, and whether to focus on lower costs or building higher brand equity in the scarce resource environment.

We offer a comprehensive list of six sources of innovation, build a conceptual framework wherein we discuss the relative strengths of these sources affecting brand equity.

Purpose: This paper presents a review of the current state and potential capabilities for application of robots, artificial intelligence and automated services (RAISA) in hotel companies.

Design/methodology/approach: A two-step approach was applied in this study. First, the authors make a theoretical overview of the robots, artificial intelligence and service automation (RAISA) in hotels. Second, the authors make a detailed overview of various case studies from global hotel practice.

Findings: The application of RAISA in hotel companies is examined in connection with the impact that technology has on guest experience during each of the five stages of the guest cycle: pre-arrival, arrival, stay, departure, assessment.

Research implications: Its implications can be searched with respect to future research. It deals with topics such as how different generations (guests and employees) perceive RAISA in the hotel industry and what is the attitude of guests in different categories of hotels (luxury and economy) towards the use of RAISA. It also shows what is the attitude of different types of tourists (holiday, business, health, cultural, etc.) and what kinds of robots (androids or machines) are more appropriate for different types of hotel operations.

Practical implications: The implications are related to the improvement of operations and operational management, marketing and sales, enhancement of customer experience and service innovation, training and management.

Originality/value: This book chapter complements and expands research on the role of RAISA in the hotel industry and makes some projections about the use of technologies in the future.