Navigating Mega-Disruptions: The Power of Value Co-Creation in the Hospitality Industry

If you're in the hospitality industry, you're most likely more than aware of the challenges brought on by the COVID-19 pandemic. In this post, we'll share with you some insights from an insightful Elsevier paper we read, and how Hoxell can help you navigate these challenges and achieve effective service recovery.

The paper, titled "Value propositions during service mega-disruptions: Exploring value co-creation and value co-destruction in service recovery," examines how customers re-evaluate resources and value propositions during service mega-disruptions such as the ongoing pandemic. 

Here are some of our key takeaways:

Customers prioritize eudemonic* well-being: 

Customers want more than just a pleasant stay, they want an experience that enhances their overall well-being, especially during times of uncertainty and stress. This can include safety measures, flexible booking options, and personalized services that cater to their needs.

*Eudaimonia is a Greek term that is commonly translated as "happiness" or "flourishing.”. Eudemonic refers to a state of happiness or well-being that arises from engaging in activities that contribute to personal growth, meaning, and purpose.

Guest Expectations from Hospitality Outlets: 

Guests expect honesty, transparency, and flexibility from hotels, and want to be treated with respect and empathy. They also want to see reciprocity from the tourism industry, and a willingness to collaborate and share resources to support the well-being of all actors in the ecosystem.

Misalignment leads to value co-destruction: 

When hotel practices and routines don't align with customer expectations, it can lead to dissatisfaction, negative reviews, and reduced customer loyalty. This is especially true during times of service mega-disruptions (such as the COVID-19 pandemic), when customers are more likely to switch to competitors or opt for alternative accommodations.

So how can hotels achieve effective service recovery in the post-COVID era? Here are some of our recommendations:

Embrace flexibility and transparency: 

Be open and honest with customers about your policies and procedures, and be willing to adapt and adjust to meet their needs. For example: 

• Offer flexible cancellation policies that allow customers to change their plans without penalty or offer partial refunds in case of unexpected events.
• Communicate your health and safety protocols transparently before and during the guest’s stay, providing them with the information they need to feel safe and secure during their stay. 

Prioritize eudemonic well-being: 

Consider ways to enhance guests' overall well-being, such as wellness programs, contactless experiences, and environmental sustainability initiatives. For example: 

• Offer yoga or meditation classes -you could also offer a “meditation-discovery workshop”, this is leav a lastinng impact with your guests. 
• Install touchless check-in and check-out systems
• Use eco-friendly products and practices throughout your hotel, while telling the stories of the supplier behind those products.

Ultimately, well-thought-through initiatives like the ones above, can lead to increased guest satisfaction, positive reviews, and a stronger brand reputation.

Demonstrate altruism and solidarity: 

Collaborate with other actors in the tourism ecosystem, and look for ways to support and uplift each other during challenging times.  For example:

• Partner with local tour operators and promote their services to guests, helping to boost business for both parties.
• Hotels can participate in local community initiatives and volunteer their services or resources to help those in need.
• Hotels can work with suppliers and vendors to source products with the most transparent supply chain. 

Bottom line: showing your customers and employees that you care about more than just the hotel’s own bottom line, while create immense value in the long-term. 

Conclusion

At Hoxell, we strive to create a digital platform can help hotels achieve these goals and more. Our platform optimizes hotel operations in real-time, reducing costs and streamlining workflows. We also offer data analytics and insights to help hotels identify value co-creation opportunities and build stronger relationships with their customers.

In summary, the Elsevier paper sheds light on the importance of value co-creation and co-destruction during service mega-disruptions. By prioritizing eudemonic well-being, embracing flexibility and transparency, and demonstrating altruism and solidarity, hotels can achieve effective service recovery and build long-term customer loyalty. Hoxell is here to help you every step of the way!

Ready to take your value co-creation to a next level? Schedule your demo today

Sources: Assiouras, I., Vallström, N., Skourtis, G., & Buhalis, D. (2022). Value propositions during service mega-disruptions: Exploring value co-creation and value co-destruction in service recovery. Tourism Management, 89, 104918. doi:10.1016/j.tourman.2021.104918