The Influence of Service Innovation on Hotel Selection in Andaman Provinces
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Abstract
Development of hotel business needs to be more effective especially in the Andaman coastal areas. Service innovation is a tool that leads to creating a competitive advantage which leads to the development of a new model that meets the customers’ needs. The purpose of this research was to study service innovation factors affecting customers’ decisions in selecting hotels in the Andaman province group using a mixed-method approach. A sample of 420 individuals was divided into 2 groups. The first is a group of 400 customers who were chosen using stratified random sampling. These customers had the experience of staying in hotels in the Andaman provinces at least 1 night. The second includes 20 hotel managers who work in the areas. They were purposely selected. A questionnaire and interview questions designed by the researcher were used as the research instruments. The questionnaire was used to elicit participants’ personal information, their perception of service innovation factors and customers’ decisions in choosing the hotels. Statistics was employed for the analysis of data collected from the questionnaire including frequency, percentage, mean, standard deviation and multiple regression analysis. The data from interviews were analysed using content analysis. Results showed that overall perception of the customers about service innovation was at a high level. In addition, the interview data revealed that the informants have knowledge and understanding about service innovation and were able to define the term “service innovation.” However, they viewed that service innovation is about applying new technologies to facilitate work and provide services to customers. With regards to service innovation factors affecting their decisions in choosing hotels in the Andaman Province group, working process and environment are the two indicators influencing their selection. Findings of this study can be applied relating to service innovation in terms of systematic working process, applying technology for effective services, as well as continuous development in services along with the emphasis on safety systems during the service which will eventually meet the customers’ needs.
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