In: Economics
Conceptual framework for marketing the Travel & Hospitality services for post COVID-19 or projection for 5-10years.
: This study aims to develop a conceptual framework of the
service delivery system design for hospitality firms in the
(post-)viral world. Several theoretical approaches such as
resource-based view, value chain analysis, stakeholder theory,
PESTEL analysis, positioning strategy, and service delivery system
design were adopted. The paper identified three service delivery
system designs (robotic, human-based, and mixed) and analyses their
requirements, advantages, disadvantages, and potential target
markets. According to the suggested model, hospitality firms need
first to explore the expectations of tourists. Then comes the
analysis phase (based on a holistic perspective, and consisting of
RBV, Value chain, Stakeholder, and PESTEL analyses), which helps
hospitality firms to identify how they should differentiate and
position themselves in the market. Following, companies decide on
what kind of service delivery system they should offer to their
target customers, and position themselves in the market according
to the chosen system.
COVID-19 is a major disruptor of the tourism and hospitality
industries . The fear of the virus forced governments to undertake
various actions to slow its spread. Borders were closed, airplanes
were grounded, hotels, restaurants, conference and convention
venues, and other hospitality companies had to close their
premises, compulsory quarantine measures were imposed on
populations, physical distancing was introduced as a recommended
social behaviour of people . As a result of tourists’ fear of the
virus and governments’ actions to curb it and many companies had to
fire their employees due to the lack of financial resources to pay
salaries , while others went into default.
At the same time, the COVID-19 pandemic creates many opportunities for hospitality companies to innovate to survive and remain competitive on the market. Hotels, restaurants, venues, museums, airports, airlines, cruise lines have to rewrite their health and safety protocols to decrease the probability of spreading the virus. Masks, transparent anti-virus helmets, and rubber gloves may become standard equipment for hospitality employees with direct contact with customers . Some hotels have adopted robots for the disinfection of rooms with ultraviolet light ). After resuming operations, hotels, restaurants, and venues had to work with decreased capacity to assure physical distancing among customers. Therefore, while the core service of hospitality companies does not change, the way the service is delivered to the tourists is changing. Due to the pandemic, hospitality companies’ service delivery systems may undergo a major transformation to incorporate physical distancing as an integral part of the hospitality service.
Prior research has already recognised the strategic role of information and communication technologies including for hospitality companies’ marketing communications, distribution strategies, supply chain management, experiences design, creating and sustaining competitive advantage, etc. However, the current COVID-19 pandemic may assign additional roles to technologies, especially robots, in the strategic management of hospitality companies . The pandemic forced health authorities to impose physical distancing as a way to slow down the spread of the virus because the virus spreads easier than previous pandemics due to its less distinguishable symptoms and longer incubation The pandemic is changing the behaviour of tourists – they become more sensitive towards the health and safety standards of firms and destinations . Therefore, hospitality firms need to develop the right service delivery system design which meets both the customers’ expectations and fits the firm’s resources and capabilities. This would make it easier for hospitality firms to position and differentiate themselves in the market and target their potential customers. In this respect, robots may be a beneficial tool to ensure a high level of physical distance during and after the pandemic . When people do not have physical closeness and keep distance, the risk of being infected decreases, hence through robots, hospitality companies may provide a service that is safe to the health of both tourists and employees. Additionally, in the (post-)viral era, the use of service robots may be widespread as people would be more concerned about their safety and security when receiving services from hospitality firms . Therefore, service robots may gain a strategic significance for the service delivery systems of hospitality firms.
1.2. Aim
In light of the above discussion, this paper aims to develop a
conceptual framework of the service delivery system design for
hospitality firms in the (post-)viral world. Specifically, it aims
to: a) identify and analyse the physically distant service delivery
designs in hospitality firms in the (post-)viral world; b) analyse
the role of customer expectations, company’s resources, activities,
stakeholders, positioning strategy, and external macroenvironment
in the service delivery system design; c) develop a strategic model
of service delivery system design in hospitality firms in the
(post-)viral world; and d) elaborate on the role of robots in
service delivery system in hospitality firms in the (post-)viral
world.
To achieve the aim, the rest of the paper is organised as follows. The next section provides a focused literature review on the strategic management frameworks (resource-based view, value chain, stakeholder theory, PESTEL), differentiation as a positioning strategy, service delivery system design, and service robots in hospitality. Section 3 develops and elaborates on the conceptual framework of the service delivery system design in hospitality firms in the (post-)viral world: Section 4 discusses the theoretical, managerial and policy implications, paper’s contribution and limitations, outlines directions for future research, and concludes the paper.