Description
In-depth tourism is a new traveling pattern, which combines thematic traveling experience
and personal knowledge. This paper aims to analyze the industry characteristics and approaches to
develop and promote in-depth tourism from a service innovation perspective.
International Journal of Culture, Tourism and Hospitality Research
In-depth tourism's influences on service innovation
Yiche Grace Chen Zi-Hui Chen J onathan C. Ho Chung-Shing Lee
Article information:
To cite this document:
Yiche Grace Chen Zi-Hui Chen J onathan C. Ho Chung-Shing Lee, (2009),"In-depth tourism's influences on service innovation",
International J ournal of Culture, Tourism and Hospitality Research, Vol. 3 Iss 4 pp. 326 - 336
Permanent link to this document:http://dx.doi.org/10.1108/17506180910994541
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Liana Victorino, Rohit Verma, Gerhard Plaschka, Chekitan Dev, (2005),"Service innovation and customer choices in the hospitality
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W. Faché, (2000),"Methodologies for innovation and improvement of services in tourism", Managing Service Quality: An International
J ournal, Vol. 10 Iss 6 pp. 356-366http://dx.doi.org/10.1108/09604520010351185
Pim den Hertog, Wietze van der Aa, Mark W. de J ong, (2010),"Capabilities for managing service innovation: towards a conceptual
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In-depth tourism’s in?uences on service
innovation
Yiche Grace Chen, Zi-Hui Chen, Jonathan C. Ho and Chung-Shing Lee
Abstract
Purpose – In-depth tourism is a new traveling pattern, which combines thematic traveling experience
and personal knowledge. This paper aims to analyze the industry characteristics and approaches to
develop and promote in-depth tourism from a service innovation perspective.
Design/methodology/approach – The paper introduces the concept of in-depth tourism and presents
two case studies depicting the practices of this new approach. The paper also includes training and
exercises on in-depth tourism’s implementation.
Findings – A three-dimensional framework consisting of customer value, regional resources and
competences, and technology adoption (e.g. information and communication technologies) is
developed to guide service innovations in the tourism industry.
Practical implications – The new theoretical framework and set of training exercises provide
management with the tools to effectively create and promote service innovations through in-depth tourism.
Originality/value – The paper introduces the concepts and practices of in-depth tourismfroma service
innovation perspective. In addition, the research provides several managerial and policy implications to
manage service innovations and to promote regional development through in-depth tourism.
Keywords Innovation, Tourism, Training
Paper type Research paper
Introduction
In-depth tourism identi?es a new traveling pattern. This method combines thematic traveling
experiences and detailed knowledge of the traveled places resulting frompersonal learning.
The results increased perceived customer value and overall service quality. Additionally,
in-depth tourism provides a positive impact on regional economy, ecological protection,
cultural extension, society advancement, and technology adoption. Compared to traditional
tourism offerings, in-depth tourism further provides ‘‘edutainment’’ for tourists. In-dept
tourism is a total solution for customer satisfaction, personal leisure, entertainment, and
self-learning experiences.
This research analyzes the industry characteristics as well as models and approaches to
develop and to promote in-depth tourism. Tourism service providers are cognizant of
transportation, accommodations, and destination attractions. Their major challenge is
integrating those resources and core competences and capabilities to provide a suitable
traveling experience for customers. This article introduces a three-dimensional framework
consisting of customer value, regional resources and competences, and technology
adoption (e.g. information and communication technologies) to guide service innovations in
the tourism industry. This article provides several training and exercise questions to assist
both tourism business executives and regional planners in managing service innovations
and promoting regional development through in-depth tourism.
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Yiche Grace Chen is
Associate Professor, based
in the Department of
Business Administration,
Yuan Ze University,
Chungli, Taiwan.
Zi-Hui Chen is a Research
Associate based at the
Institute of Knowledge
Service and Innovation,
Yuan Ze University,
Chungli, Taiwan.
Jonathan C. Ho is Assistant
Professor, based in the
Department of Business
Administration, Yuan Ze
University, Chungli, Taiwan.
Chung-Shing Lee is
Associate Professor, based
at the School of Business,
Paci?c Lutheran University,
Tacoma, Washington, USA.
The authors are listed
alphabetically and each author
contributed equally to the
article. The authors gratefully
acknowledge the support
provided by the Institute for
Knowledge Service and
Innovation (IKSI) at Yuan Ze
University in Taiwan.
A preliminary version of this
article was presented at the
17th International Conference
on Management of Technology
(IAMOT 2008), 6-10 April 2008
in Dubai, UAE. The authors
thank the anonymous referees
and the co-editors of the
special issue for their valuable
comments and suggestions
that greatly improved this
paper.
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Innovation in services
Tourismis a service industry (Otto and Ritchie, 1996) in which innovation has become critical
for creating and sustaining competitive advantage. Service innovation’s roots grow from
Schumpeter’s (1950) creative destruction proposition: economic development’s motivation
is the discontinuous appeal of new elements. Services growing importance in modern
economies spurred new service development and innovation studies (see Alam, 2002). In
the service economy age, Schumpeter’s innovation concept is still valid but the focus is
different. Unlike manufacturing, the service industry is customer centric. Service innovation’s
core is satisfying individual customers.
Many innovation management researchers, such as Barras (1986), den Hertog et al. (2003),
Gallouj and Weistein (1997), Miles (2000), Sundbo (1997), and Tidd and Hull (2003), lay the
theoretical foundation for service sector advances. Service innovation includes moving from
strategy formulation to commercial implementation. According to the market demand,
companies not only add new attributes into existing services and reintegrate processes, but
they also learn new knowledge and gain innovative experiences. Service innovation is not a
new concept; however, the de?nition continues to evolve.
Despite service innovation’s evolutionary nature, several major characteristics are common
denominators. First, service innovation is a market-oriented strategy and action. Service
content changes according to market demands. Organizations must create new business
opportunities and generate new streams of revenue. Therefore, service innovation is both
market oriented behavior and business development strategy. Second, the process of
service innovation helps organizations create knowledge and accumulate experiences
through learning. Service innovation demand derives from a lack of required competences
and capabilities to serve customers. Conducting market research helps to close the gap
between customer demand and the existing service offerings. Third, service innovation is an
integrated concept. Service innovation concepts must integrate seamlessly with the new
service processes and existing business activities (Johne and Storey, 1998). For example,
product innovation can add new service functions to increase value. Process innovation
adds new elements to the existing process or reorganizes old process. The preceding
example demonstrates that service innovation is a holistic process. Fourth, service
innovation is a sustained thinking and practice. Although service innovation is easier to
implement than technological innovation, the former is easier imitate by competitors (de
Jong and Vermeulen, 2003). To avoid this situation, expanding organizational capabilities
and establishing a sustained innovation process are the ultimate key factors in service
innovation development (de Jong and Vermeulen, 2003).
In practice, service innovators need to understand the service concept’s signi?cant role in
designing and developing innovative services (Goldstein et al., 2002). The service concept
de?nes what (e.g. what is to be done for the customer to satisfy their needs and wishes) and
how (e.g. how it is to be achieved) of service design (Edvardsson and Olsson, 1996). The
result mediates between customer needs and an organization’s strategic intent. Service
innovators must focus on the design and delivery of their service concept to ensure that the
product ?ts the customers’ needs. In addition, the whole organization’s activities and
performance must provide customers with quality experiences to build and maintain
long-term customer relationships.
Evolution of in-depth tourism
The world’s largest industry is tourism (Cook et al., 2007). Tourism creates many business
opportunities and fosters economic growth. Tourism’s demand has grown signi?cantly for
many decades (Smeral, 2003). Opportunities to travel are no longer a privilege for most
people. Tourism can serve as a personal learning endeavor, or purely leisure and
entertainment. Growing economies provide more discretionary income for leisure and
tourism services. Increases in leisure and tourism positively affect demand for
knowledge-intensive goods and services (Smeral, 2003). As personal wealth and leisure
time have increased, tourism trends have changed gradually from traditional mass traveling
(e.g. price- and time-sensitive, and leisure-oriented) toward an in-depth method (e.g. more
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individually customized and thematic-oriented). Figure 1 depicts tourism’s evolution from
traditional to in-depth methods. The contents and bene?ts of traveling experience have
evolved over time to emphasize customer value (or perceived bene?t), environmental
sensitivity, and cultural awareness.
In-depth tourism is a total solution for personalized learning and entertainment. Travel time
length increases so tourists can explore and learn about the culture and ecology of local
environment, in addition to traditional sightseeing activities. This self-learning experience
satis?es both personal leisure and entertainment experiences (i.e. edutainment). Using
information and communication technologies (e.g. the internet and e-commerce) is critical
for in-depth tourism to deliver essential knowledge and information for tourists.
In-depth tourism consists of two major elements. One element includes the core tourism
service industry providers, such as transportation, accommodation, destination, and travel
agencies. Public and private tourism bureaus and research institutions (e.g. universities)
also are involved in providing services for tourists. The second element includes the
travel-related or supporting industries (e.g. ?nancial institutions, marketing and advertising
agencies, and health care providers) that support the core traveling services.
In sum, in-depth tourism is a newly evolving traveling style that satis?es customers’ multiple
demands by employing information and communication technologies to deliver essential
knowledge and information. In-depth tourism contributes positive learning and
entertainment experiences for tourists, promotes the growth of supporting industries, and
supports regional economic development.
Dimensions of in-depth tourism
The three cornerstones of in-depth tourism are:
1. higher perceived customer bene?t or value;
2. regional resources and the competences and capabilities of service providers; and
3. diffusion and adoption of new technologies to deliver innovative services.
Hospitality and tourism managers’ key challenges are to integrate regional resources,
coordinate supporting industries, and implement technology to assist customers/tourists in
Figure 1 The evolution of tourism
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accessing cultural and environmental knowledge and information in order to provide higher
value for them.
Customer value
A customer-oriented approach of value creation replaces the product and sales-oriented
strategy in marketing. A service provider’s competitive advantage is developed and
sustained by exploring and delivering superior value to satisfy customers (Anderson et al.,
1993; Flint et al., 1997; Holbrook, 2005; Huber et al., 2001; Woodruff, 1997). To create higher
value for in-depth tourism customers, managers must understand how to create and to
measure value. Value has been conceptualized in various ways. Bowman and Ambrosini
(2000) suggest value creation is either use value or exchange value. Use value is the
consumer’s subjective valuation of consumption bene?ts (e.g. the maximum willingness to
pay for a ?rm’s products or services). Exchange value is the monetary amount the consumer
pays in a market exchange (e.g. the purchase price). Value is the difference between the
bene?ts enjoyed by a ?rm’s customers and the product’s production and delivery costs
(Bowman and Ambrosini, 2000; Priem, 2007). Berghman et al. (2006) consider customer
value as low price, the product that customer wants, and the quality and the feedback after
the customers paid. This de?nition of customer value is ‘‘the total evaluation after customer’s
paying and getting’’ which means when customer’s cognitive value is larger than opportunity
cost, the product is more valuable. Larger gaps suggest higher perceived valuable the
customer derives from the purchase. Customer value may affect judgment of products and
service quality, product attributes, and even pricing (Berghman et al., 2006).
Most academic literature de?nes customer value as a trade-off between
(customer-perceived) quality and (customer-perceived) price (Desarbo et al., 2001).
Customer value is evaluated by cognitive value of target customers. This value is determined
by individual’s consumer behavior. Understanding cognitive value helps ?rms understand
what customers want and predict their reactions (Huber et al., 2001). From the utility
perspective, customer value is a function of customer perceived bene?ts and cost (Desarbo
et al., 2001). To create superior customer value, ?rms must increase the gap between
customer perceived value and the cost of delivering the product or service. Customers’
perceived bene?ts or values are explained by the utility they receive after a purchase
(Holbrook, 2006; Raju, 2006; Sinha and DeSarbo, 1998).
Finally, positive customer experiences lead to added value produced after the product or
service is consumed – resulting in an emotional bond between customer and supplier
(Berghman et al., 2006). Customer value is thus interactive, comparative (individual and
situational), preference-based, and experiential descriptions (Holbrook, 2006). In-depth
tourism emphasizes both widening the gap between perceived customer value (e.g. use
value) and the price (e.g. exchange value), and increasing the customer’s emotional and
learning experience. The discussion on creating high perceived customer value in in-depth
tourism suggests the following proposition.
P1. Identifying customer value and understanding value creation and measurement
help service providers design, develop, and deliver a quality service experience in
in-depth tourism.
Regional resources and competences
Tourism products or services are a combination of many elements including transportation,
accommodations, restaurants, attractions, entertainment, ?nancial institutions, and other
tourist facilities and traveling services (Bull, 1991; Sinclair and Stabler, 1992). Since tourism
is a service industry, the general service characteristics service are germane – intangibility,
heterogeneity, inseparability, and perishability. Tourism services cannot be stored in
advance and the experiences differ from people to people. Successful tourism service
delivery requires regional resources and providers’ competences to co-produce a unique
experience – a total solution that satis?es consumers’ (latent) demands.
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Even when all elements of good tourism service are present, people may not visit. Lew
(1987) argues that attractions and activities are also critical elements in tourism. Those
resources include natural resources (Gunn, 1994), such as scenery, vegetation, wildlife,
historic architectures and monuments, traditional arts, culture (see Richards and Wilson,
2006; Lee and Sparks, 2007), and sport and other leisure and entertainment. Because these
resources are vital to create a unique traveling experience, a region needs to develop and
promote tourism based on unique and valuable location-speci?c resources, combined with
both tangible supporting resources (e.g. information and communication technologies) and
intangible connections (e.g. emotional). Unique and valuable local resources combine with
the competences and capabilities of tourism supporting organizations are critical to create
and deliver unique customer experience and higher perceived customer value to attract
more visitors to the region. The foregoing arguments suggest the following.
P2. Integrating regional resources and leveraging organizational competences and
capabilities are essential for in-depth tourism service providers to design, develop,
and deliver a high quality service experience for customers.
Technology adoption
Adopting new technologies provide competitive advantages for many ?rms to develop,
market, and deliver their services (see Brynjolfsson, 1996; Kodama, 1999; Ricca, 2004;
Sumathi and Sivanandam, 2007). New services developed from technology adoption range
from e-commerce to database management, from software and digital contents to
geographic positioning systems, and fromcommunication networks to mobile technologies.
Tourisms’ business activities are delivered to customers through the aggregation and use of
various technologies (Ricca, 2004). Applied effectively, information and communication
assist consumers in identifying, selecting, planning, and purchasing tourism products and
services. Technology empowers tourists and provides ?exibility and convenience for themto
obtain detailed knowledge and information. Technology adoption also increases tourists’
bargaining power over the service providers because comparative shopping is effortless
(e.g. pricing information and service contents). On the other hand, adopting technologies
(e.g. data mining and collaborative ?ltering) helps tourism service providers learn about
tourists’ purchasing patterns, pro?les, and preferences. Adopting mobile technologies to
deliver tourism services is increasingly important (Peppers and Rogers, 2007). Finally,
technology adoption improves the visibility and reinforces a region’s attractiveness. These
improvements will signi?cantly in?uence ICT-based tourism development in the future
(Keeney, 1999; Ricca, 2004). The preceding discussion on technology adoption suggests
the following proposition.
P3. Technology adoption helps service providers of in-depth tourism understand
customers’ demands and design, develop, and deliver innovative services.
An integrated framework of service innovation in in-depth tourism
Figure 2 illustrates the framework for designing, developing, and delivering innovative
in-depth tourismservices. Tourismservice providers must understand the ‘‘service concept’’
(Goldstein et al., 2002), which mediates between customer needs and an organization’s
Figure 2 Service innovation and the dimensions of in-depth tourism
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strategic intent. Service providers need to identify customer’s latent demand for in-depth
tourism and to integrate and utilize regional resources with ?rm’s competences and
capabilities in order to design, develop, and deliver higher perceived service value through
technology adoption and use.
To create a ?rm’s competitive advantage, customer value is a critical indicator (Anderson
et al., 2006; Keeney, 1999; Ricca, 2004; Smith and Colgate, 2007; Woodruff, 1997).
Customer value plays a vital role in in-depth tourism design, development, and delivery of
innovative service offerings. Service providers must offer customers a total solution to meet
their latent demands. Local resources provide unique advantages and opportunities for
regional economic and business development. Exploring and creating new resources can
create competitive advantages and new business opportunities (e.g. high-technology
architectures and various recreational facilities in Dubai, UAE, arti?cial beach in Tokyo, or
developing cultural events). Developments in information and communication technologies
have changed how people acquire and use information for decision making. New
technology adoption assists vendors in reaching more potential customers and enhances
the development and delivering of innovative tourism products and services.
Training exercises
The following two cases illustrate the integration of the three dimensions of in-depth tourism
to design, develop, and deliver innovative services to customers. Following the cases, three
questions ask trainees to contrast the cases, to explain how innovation increases customer
value, and to assist tourists with culture-focus tourism.
Kyoto’s cultural tourism
Kyoto city is located on the center of Kyoto Prefecture (Kyoto-Fu). Compared to Tokyo, which
is a fashion and technology center, Kyoto is a classic city representing eastern culture
including ancient temples, sake manufacturing, and Geisha. Arguably, Kyoto is the best
place to learn Japanese customs and see historical buildings and architecture. Therefore,
people who want to experience Japanese culture (especially people who want to knowmore
about the Shogunate Period) and traditional arts would choose to visit Kyoto.
Kyoto was the imperial capital of Japan until the middle of the nineteenth century. As the
center of Japanese culture for more than 1,000 years, Kyoto illustrates the development of
art of eastern gardens, architecture, and Japanese painting and also retains traditional
conventions and institutions. Until Meiji Tenno¯ Mutsuhito, Kyoto was the seat Japanese
Tenno¯ living. Due to the importance of history and value, Kyoto possesses abundant cultural
resources and heritage. Moreover, part of Kyoto’s historical architecture, built in 794 AD, is
recognized in ‘‘The World Cultural Heritage.’’
As a center of Japanese culture, many customs and rich cultural traditions originated in
Kyoto. The castle of Tenno¯ temples and jinja, and the old streets and architecture and
buildings are the regional resources. These historical destinations create higher perceived
customer bene?t, especially for those who want to learn about the Shogunate period and
‘‘The tale of Genji.’’ Local government integrates both tangible and intangible regional
resources by sponsoring the ‘‘Kyoto Art Festival,’’ which is held for one and half months
during the autumn season. Special activities during the Festival include traditional Japanese
music and dancing, and the exhibition of traditional arts and paintings. The theme in 2007
was ‘‘The tale of Genji.’’ The tangible tourism resources in Kyoto include the Kyoto culture
museum, the well-known Nijo-jo castle and Yasaka temple. Nijo-jo castle was built by
Tokugawa Ieyasu as a temporary residence in Kyoto. Yasaka temple in Gion is associated
with the origins of Geisha as well as traditional architecture. The Gion Festival is held
annually in July.
Although Kyoto is a famous Japanese tourist city, local and prefectural governments are
experimenting with technology to attract more visitors. For example, Kyoto’s Prefectural
government plans to cooperate with mobile phone manufacturer to provide new services
(e.g. provide mobile tour guide in various languages). The cooperative effort is designed to
attract more tourists from neighboring prefectures and other countries. Quick Response
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Code (QR Code) is another example of a technology adoption that changes Japanese travel
patterns. This technology allows people to use mobile devices (e.g. mobile phone and
personal digital assistances (PDAs)) to scan the code and obtain tourism information. For
example, ANA (All Nippon Airways) allows passengers to use mobile phone QR Code to
replace the traditional paper tickets. This innovation saves check-in time at the airport and
boarding the aircrafts. Given the popularity of mobile devices in Japan and neighboring
countries, Kyoto’s government continues to explore the functions and capabilities of mobile
communications to promote their cultural resources and to deliver innovative tourism
services.
Montana’s cultural and eco-tourism
The US state of Montana has abundant natural resources, such as Yellowstone National
Park, Glacier National Park, and Rocky Mountain. Montana is called the ‘‘Big Sky Country’’
due to an abundance of natural resources and a pristine environment. Montana is also the
place full of pioneering spirit and cowboy and Indian history. The Lewis and Clark Festival is
a major annual event to honor their spirit and accomplishment. Other festivities and events
are associated with the cowboy culture, such as Montana PRCA (Pro Rodeo Circuit Finals),
Annual Snow Rodeo, and Red Bottom Celebration in various towns and cities. Montana also
is famous for the preservation of Indian culture. Seven Indian reservations exist within the
state. Numerous activities and events honor and celebrate Indian traditions. Indian culture is
a precious asset of Montana. In addition, many well-known artists lived in Montana. For
example, Charles M. Russell, who illustrates the history of Montana through his paintings,
captured the landscapes, the spirit, and the culture of the West during the late 1800s and
early 1900s (C.M. Russell Museum, 2008). The Museumand the Charles M. Russell National
Wildlife Refuge are located in Montana and dedicated to his life and work and his love of
nature. In addition, Kevin Red Star and King Kuka both are distinguished Indian artists.
Tourist can see and learn both Indian culture and arts and cowboy traditions by visiting
Montana museums. The cowboy mythology is the other cultural resource in Montana.
Several important events sponsored or supported by the local governments are held during
the year to attract tourists, such as Montana Pro Rodeo Circuit Finals and Livingston
Roundup Rodeo show.
To promote Montana’s tourism, the tourism bureau maintains a website to advertise various
events and activities in more than 33 languages. Montana’s internet site provides information
on both eco-tourismand cultural tourism. Potential tourists can obtain detailed information to
assist themin learning the region and planning for the trip. Information technology is applied
to eco-tourism such as the tour guide system in Yellowstone, NP. Although mobile
technologies or kiosk system has not yet been adopted for promoting cultural tourism in
Montana, information regarding cowboy and Indian cultures, customs, and arts are
published on the of?cial internet web site. In addition, many tourism service providers in
Montana also adopted information and communications technologies (e.g. internet sites)
and multimedia technologies (e.g. DVDs and videos) to advertise and deliver their services:
1. Compare and contrast the two case studies based on how these regions integrate
resources and competencies to deliver higher perceived customer value.
2. How can service providers design, develop, and delivery innovative service offerings to
create higher perceived customer value?
3. How can service providers assist customers in culture-focus tourism?
Trainers’ notes
Several lessons can be learned from studying these two cases. The evidence suggests
some travelers want more than a sightseeing holiday. These travelers seek information about
speci?c themes or learning objectives. Culture learning is one theme of in-depth tourism.
Customers choose culture-centric themes to gain both knowledge and traveling experience
(e.g., cultural tourism). In-depth tourism emphasizes ‘‘depth.’’ Tourists prefer to stay in a
speci?c region and study a ‘‘theme’’ rather than glancing through various sceneries. Unique
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regional resources provide customer incentives to visit. Using technology assists tourists in
planning, traveling, and learning new knowledge. Service providers need to explore what
types of resources are valuable and suitable to deliver to customer and how to do so
effectively and ef?ciently. Overall, service providers need to identify, create, and deliver
higher perceived bene?t or value to customers.
Table I summarizes and compares the two case studies of in-depth tourism. In both cases,
the regions integrate regional resources and competencies as well as create and deliver
higher perceived customer value through the technology adoption and implementation.
How can service providers create innovative services to create higher customer value?
Deliver higher customer value is the ?rst objective. For example, many tourists travel to Kyoto
to experience and gain the knowledge of the culture embedded into Japan’s traditions and
history. To create better value through higher service quality and experience and to avoid
dissatisfaction, service providers (e.g. travel agencies) need to start by self-examination of
how their product ?ts into the competitive environment. Some key issues to be addressed
are as follows:
1. What are the unique regional resources and how can they potentially create value?
2. Which customers’ values are received from consuming regional resources?
3. What are the costs of delivering such service?
4. How should the service provider be involved in delivering the services?
5. What knowledge and contents should the service providers deliver?
6. How should workers be trained to design, develop, and deliver a total solution to satisfy
customers’ latent demand for high quality and service experience in-depth tourism?
7. Which technologies are appropriate to assist customers in the entire process (e.g., from
initial planning to post-trip re?ection) of travel?
8. Can an effective internet business model and strategy for building and maintaining
long-term customer relationships be developed (see Lee, 2001)?
Service providers must identify the critical value-added components of regional resources
and lead customers to explore and discover the value to increase their willingness to pay for
the bene?t. Service providers also need to understand the service concept (see Goldstein
et al., 2002). How are customers’ perceived values increased? Can increases in perceived
value be accomplished with effective service design, development, and delivery? A key
point is the holistic nature of effective service delivery. The entire organization’s activities and
performance are involved in providing customers with a quality service experience in order
to build and maintain long-term relationships with them. Service providers must design and
deliver a service concept that ensures high customer value and low cost.
Table I Summary of cross-case-study
Traveling products and services of in-depth tourism
Dimensions Kyoto – Cultural tourism Montana – Cultural tourism
Customer value Experience and learn the traditional Japan via
participating in local cultural events
Tourists visit Montana to appreciate and experience
traditional American culture, and learning Indian and
cowboy history
Regional resources Cultural capital
Traditional Japanese religious and cultural buildings
Monuments and museums
Conventional architectural style
Monuments
Indian reservations
Cowboy customs
Museums
Festivals and events
Technology adoption Information web site
Mobile tour guide services
QR code services
Internet web site
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Although technology can enhance tourists’ experiences, service providers need to identify
and implement the appropriate technologies that support organization’s service concept
and business model. First, the selected technologies must be technically feasible to solve
the problem and to deliver the service effectively. Second, the economic bene?ts of
adopting the new technologies must be greater than the costs of acquiring and
implementing them. Third, the entire organization must support the implementation of
chosen technologies to deliver quality in-depth tourism services.
How can service providers assist travelers in culture-focused tourism? Cultural differences
are both opportunities and threats to serving foreign tourists. Tourists travel to explore
foreign regions and cultures. Unfortunately, sometime tourists experience culture shock in a
foreign country. Culture shock relates to disappointed expectations and discomfort felt when
people do not act or react as expected. The unexpected behavior leads to a feeling of not
belonging or of being threatened by the new culture. When one’s expectation does not
match the reality surrounding them, travelers experience elevated levels of stress. Belowis a
list of key issues and challenges that service providers must be addressed to reduce
cross-cultural friction:
B Understand the key differences between customers’ and the region’s cultures (and
religions).
B Identify potential cross-cultural ?ash points and educate travelers on these key
differences.
B Offer cross-cultural training for travel agents to assist customers in coping with the culture
shock issues.
B Learn how to assist customers in appreciating and acculturating to the local culture and
traditions
The key is identifying cultural differences between the foreign visitors and the traveling
regions. One example is religion. Considerable differences exist in Christian, Buddhist, and
Shinto tenets. Other differences exist in societal attitudes about ethnicity, politics, nation, or
cognition of arts and science. Some psychological and physical symptoms may be
appeared due to the experience of cultural differences (e.g. sleep disorder). Therefore
determining cultural differences and understanding the culture shocks prior to travel are
necessary. Additionally, service providers need to assist customers in addressing and
solving the cultural difference issue. For example, learn how to relax when traveling to new
places and encountering new cultures. Also, remember that customs and behavioral norms
are different, so refrain from judging different values and beliefs.
Conclusion
This paper discusses a new tourism trend. This new tourism form creates an opportunity for
both regional public agencies and private ?rms to integrate various regional resources and
competencies. Through the adoption of new technologies, innovative services and
experiences can be designed, developed, and delivered to create higher perceived
customer bene?ts. Because in-depth tourists often have more traveling experience, they
seek advanced knowledge about the local culture, history, and environment through
self-learning and education experience. Therefore, tourism service providers need to
understand and to increase the perceived customer value by creating suitable products.
The integrated framework and training exercises are designed to assist business and
regional planners in developing and implementing innovative and high-value added
in-depth tourism services to promote regional development and business opportunities.
In-depth tourism is a holistic solution to satisfy customers’ learning and entertainment
experience. Successful service delivery requires close collaboration among both primary
and supporting service providers to provide higher bene?ts for both service ?rms and
customers. Future research will extend the current framework to discuss speci?c drivers for
value creation in in-depth tourism.
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Corresponding author
Chung-Shing Lee can be contacted at: [email protected]
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This article has been cited by:
1. Pei-Chun Tsai, Ta-Jung Lu, Jong-Wen WannService Quality and Service Fulcrum of the Innovative Tourism Cluster: A
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doc_987767281.pdf
In-depth tourism is a new traveling pattern, which combines thematic traveling experience
and personal knowledge. This paper aims to analyze the industry characteristics and approaches to
develop and promote in-depth tourism from a service innovation perspective.
International Journal of Culture, Tourism and Hospitality Research
In-depth tourism's influences on service innovation
Yiche Grace Chen Zi-Hui Chen J onathan C. Ho Chung-Shing Lee
Article information:
To cite this document:
Yiche Grace Chen Zi-Hui Chen J onathan C. Ho Chung-Shing Lee, (2009),"In-depth tourism's influences on service innovation",
International J ournal of Culture, Tourism and Hospitality Research, Vol. 3 Iss 4 pp. 326 - 336
Permanent link to this document:http://dx.doi.org/10.1108/17506180910994541
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In-depth tourism’s in?uences on service
innovation
Yiche Grace Chen, Zi-Hui Chen, Jonathan C. Ho and Chung-Shing Lee
Abstract
Purpose – In-depth tourism is a new traveling pattern, which combines thematic traveling experience
and personal knowledge. This paper aims to analyze the industry characteristics and approaches to
develop and promote in-depth tourism from a service innovation perspective.
Design/methodology/approach – The paper introduces the concept of in-depth tourism and presents
two case studies depicting the practices of this new approach. The paper also includes training and
exercises on in-depth tourism’s implementation.
Findings – A three-dimensional framework consisting of customer value, regional resources and
competences, and technology adoption (e.g. information and communication technologies) is
developed to guide service innovations in the tourism industry.
Practical implications – The new theoretical framework and set of training exercises provide
management with the tools to effectively create and promote service innovations through in-depth tourism.
Originality/value – The paper introduces the concepts and practices of in-depth tourismfroma service
innovation perspective. In addition, the research provides several managerial and policy implications to
manage service innovations and to promote regional development through in-depth tourism.
Keywords Innovation, Tourism, Training
Paper type Research paper
Introduction
In-depth tourism identi?es a new traveling pattern. This method combines thematic traveling
experiences and detailed knowledge of the traveled places resulting frompersonal learning.
The results increased perceived customer value and overall service quality. Additionally,
in-depth tourism provides a positive impact on regional economy, ecological protection,
cultural extension, society advancement, and technology adoption. Compared to traditional
tourism offerings, in-depth tourism further provides ‘‘edutainment’’ for tourists. In-dept
tourism is a total solution for customer satisfaction, personal leisure, entertainment, and
self-learning experiences.
This research analyzes the industry characteristics as well as models and approaches to
develop and to promote in-depth tourism. Tourism service providers are cognizant of
transportation, accommodations, and destination attractions. Their major challenge is
integrating those resources and core competences and capabilities to provide a suitable
traveling experience for customers. This article introduces a three-dimensional framework
consisting of customer value, regional resources and competences, and technology
adoption (e.g. information and communication technologies) to guide service innovations in
the tourism industry. This article provides several training and exercise questions to assist
both tourism business executives and regional planners in managing service innovations
and promoting regional development through in-depth tourism.
PAGE 326
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VOL. 3 NO. 4 2009, pp. 326-336, Q Emerald Group Publishing Limited, ISSN 1750-6182 DOI 10.1108/17506180910994541
Yiche Grace Chen is
Associate Professor, based
in the Department of
Business Administration,
Yuan Ze University,
Chungli, Taiwan.
Zi-Hui Chen is a Research
Associate based at the
Institute of Knowledge
Service and Innovation,
Yuan Ze University,
Chungli, Taiwan.
Jonathan C. Ho is Assistant
Professor, based in the
Department of Business
Administration, Yuan Ze
University, Chungli, Taiwan.
Chung-Shing Lee is
Associate Professor, based
at the School of Business,
Paci?c Lutheran University,
Tacoma, Washington, USA.
The authors are listed
alphabetically and each author
contributed equally to the
article. The authors gratefully
acknowledge the support
provided by the Institute for
Knowledge Service and
Innovation (IKSI) at Yuan Ze
University in Taiwan.
A preliminary version of this
article was presented at the
17th International Conference
on Management of Technology
(IAMOT 2008), 6-10 April 2008
in Dubai, UAE. The authors
thank the anonymous referees
and the co-editors of the
special issue for their valuable
comments and suggestions
that greatly improved this
paper.
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Innovation in services
Tourismis a service industry (Otto and Ritchie, 1996) in which innovation has become critical
for creating and sustaining competitive advantage. Service innovation’s roots grow from
Schumpeter’s (1950) creative destruction proposition: economic development’s motivation
is the discontinuous appeal of new elements. Services growing importance in modern
economies spurred new service development and innovation studies (see Alam, 2002). In
the service economy age, Schumpeter’s innovation concept is still valid but the focus is
different. Unlike manufacturing, the service industry is customer centric. Service innovation’s
core is satisfying individual customers.
Many innovation management researchers, such as Barras (1986), den Hertog et al. (2003),
Gallouj and Weistein (1997), Miles (2000), Sundbo (1997), and Tidd and Hull (2003), lay the
theoretical foundation for service sector advances. Service innovation includes moving from
strategy formulation to commercial implementation. According to the market demand,
companies not only add new attributes into existing services and reintegrate processes, but
they also learn new knowledge and gain innovative experiences. Service innovation is not a
new concept; however, the de?nition continues to evolve.
Despite service innovation’s evolutionary nature, several major characteristics are common
denominators. First, service innovation is a market-oriented strategy and action. Service
content changes according to market demands. Organizations must create new business
opportunities and generate new streams of revenue. Therefore, service innovation is both
market oriented behavior and business development strategy. Second, the process of
service innovation helps organizations create knowledge and accumulate experiences
through learning. Service innovation demand derives from a lack of required competences
and capabilities to serve customers. Conducting market research helps to close the gap
between customer demand and the existing service offerings. Third, service innovation is an
integrated concept. Service innovation concepts must integrate seamlessly with the new
service processes and existing business activities (Johne and Storey, 1998). For example,
product innovation can add new service functions to increase value. Process innovation
adds new elements to the existing process or reorganizes old process. The preceding
example demonstrates that service innovation is a holistic process. Fourth, service
innovation is a sustained thinking and practice. Although service innovation is easier to
implement than technological innovation, the former is easier imitate by competitors (de
Jong and Vermeulen, 2003). To avoid this situation, expanding organizational capabilities
and establishing a sustained innovation process are the ultimate key factors in service
innovation development (de Jong and Vermeulen, 2003).
In practice, service innovators need to understand the service concept’s signi?cant role in
designing and developing innovative services (Goldstein et al., 2002). The service concept
de?nes what (e.g. what is to be done for the customer to satisfy their needs and wishes) and
how (e.g. how it is to be achieved) of service design (Edvardsson and Olsson, 1996). The
result mediates between customer needs and an organization’s strategic intent. Service
innovators must focus on the design and delivery of their service concept to ensure that the
product ?ts the customers’ needs. In addition, the whole organization’s activities and
performance must provide customers with quality experiences to build and maintain
long-term customer relationships.
Evolution of in-depth tourism
The world’s largest industry is tourism (Cook et al., 2007). Tourism creates many business
opportunities and fosters economic growth. Tourism’s demand has grown signi?cantly for
many decades (Smeral, 2003). Opportunities to travel are no longer a privilege for most
people. Tourism can serve as a personal learning endeavor, or purely leisure and
entertainment. Growing economies provide more discretionary income for leisure and
tourism services. Increases in leisure and tourism positively affect demand for
knowledge-intensive goods and services (Smeral, 2003). As personal wealth and leisure
time have increased, tourism trends have changed gradually from traditional mass traveling
(e.g. price- and time-sensitive, and leisure-oriented) toward an in-depth method (e.g. more
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individually customized and thematic-oriented). Figure 1 depicts tourism’s evolution from
traditional to in-depth methods. The contents and bene?ts of traveling experience have
evolved over time to emphasize customer value (or perceived bene?t), environmental
sensitivity, and cultural awareness.
In-depth tourism is a total solution for personalized learning and entertainment. Travel time
length increases so tourists can explore and learn about the culture and ecology of local
environment, in addition to traditional sightseeing activities. This self-learning experience
satis?es both personal leisure and entertainment experiences (i.e. edutainment). Using
information and communication technologies (e.g. the internet and e-commerce) is critical
for in-depth tourism to deliver essential knowledge and information for tourists.
In-depth tourism consists of two major elements. One element includes the core tourism
service industry providers, such as transportation, accommodation, destination, and travel
agencies. Public and private tourism bureaus and research institutions (e.g. universities)
also are involved in providing services for tourists. The second element includes the
travel-related or supporting industries (e.g. ?nancial institutions, marketing and advertising
agencies, and health care providers) that support the core traveling services.
In sum, in-depth tourism is a newly evolving traveling style that satis?es customers’ multiple
demands by employing information and communication technologies to deliver essential
knowledge and information. In-depth tourism contributes positive learning and
entertainment experiences for tourists, promotes the growth of supporting industries, and
supports regional economic development.
Dimensions of in-depth tourism
The three cornerstones of in-depth tourism are:
1. higher perceived customer bene?t or value;
2. regional resources and the competences and capabilities of service providers; and
3. diffusion and adoption of new technologies to deliver innovative services.
Hospitality and tourism managers’ key challenges are to integrate regional resources,
coordinate supporting industries, and implement technology to assist customers/tourists in
Figure 1 The evolution of tourism
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accessing cultural and environmental knowledge and information in order to provide higher
value for them.
Customer value
A customer-oriented approach of value creation replaces the product and sales-oriented
strategy in marketing. A service provider’s competitive advantage is developed and
sustained by exploring and delivering superior value to satisfy customers (Anderson et al.,
1993; Flint et al., 1997; Holbrook, 2005; Huber et al., 2001; Woodruff, 1997). To create higher
value for in-depth tourism customers, managers must understand how to create and to
measure value. Value has been conceptualized in various ways. Bowman and Ambrosini
(2000) suggest value creation is either use value or exchange value. Use value is the
consumer’s subjective valuation of consumption bene?ts (e.g. the maximum willingness to
pay for a ?rm’s products or services). Exchange value is the monetary amount the consumer
pays in a market exchange (e.g. the purchase price). Value is the difference between the
bene?ts enjoyed by a ?rm’s customers and the product’s production and delivery costs
(Bowman and Ambrosini, 2000; Priem, 2007). Berghman et al. (2006) consider customer
value as low price, the product that customer wants, and the quality and the feedback after
the customers paid. This de?nition of customer value is ‘‘the total evaluation after customer’s
paying and getting’’ which means when customer’s cognitive value is larger than opportunity
cost, the product is more valuable. Larger gaps suggest higher perceived valuable the
customer derives from the purchase. Customer value may affect judgment of products and
service quality, product attributes, and even pricing (Berghman et al., 2006).
Most academic literature de?nes customer value as a trade-off between
(customer-perceived) quality and (customer-perceived) price (Desarbo et al., 2001).
Customer value is evaluated by cognitive value of target customers. This value is determined
by individual’s consumer behavior. Understanding cognitive value helps ?rms understand
what customers want and predict their reactions (Huber et al., 2001). From the utility
perspective, customer value is a function of customer perceived bene?ts and cost (Desarbo
et al., 2001). To create superior customer value, ?rms must increase the gap between
customer perceived value and the cost of delivering the product or service. Customers’
perceived bene?ts or values are explained by the utility they receive after a purchase
(Holbrook, 2006; Raju, 2006; Sinha and DeSarbo, 1998).
Finally, positive customer experiences lead to added value produced after the product or
service is consumed – resulting in an emotional bond between customer and supplier
(Berghman et al., 2006). Customer value is thus interactive, comparative (individual and
situational), preference-based, and experiential descriptions (Holbrook, 2006). In-depth
tourism emphasizes both widening the gap between perceived customer value (e.g. use
value) and the price (e.g. exchange value), and increasing the customer’s emotional and
learning experience. The discussion on creating high perceived customer value in in-depth
tourism suggests the following proposition.
P1. Identifying customer value and understanding value creation and measurement
help service providers design, develop, and deliver a quality service experience in
in-depth tourism.
Regional resources and competences
Tourism products or services are a combination of many elements including transportation,
accommodations, restaurants, attractions, entertainment, ?nancial institutions, and other
tourist facilities and traveling services (Bull, 1991; Sinclair and Stabler, 1992). Since tourism
is a service industry, the general service characteristics service are germane – intangibility,
heterogeneity, inseparability, and perishability. Tourism services cannot be stored in
advance and the experiences differ from people to people. Successful tourism service
delivery requires regional resources and providers’ competences to co-produce a unique
experience – a total solution that satis?es consumers’ (latent) demands.
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Even when all elements of good tourism service are present, people may not visit. Lew
(1987) argues that attractions and activities are also critical elements in tourism. Those
resources include natural resources (Gunn, 1994), such as scenery, vegetation, wildlife,
historic architectures and monuments, traditional arts, culture (see Richards and Wilson,
2006; Lee and Sparks, 2007), and sport and other leisure and entertainment. Because these
resources are vital to create a unique traveling experience, a region needs to develop and
promote tourism based on unique and valuable location-speci?c resources, combined with
both tangible supporting resources (e.g. information and communication technologies) and
intangible connections (e.g. emotional). Unique and valuable local resources combine with
the competences and capabilities of tourism supporting organizations are critical to create
and deliver unique customer experience and higher perceived customer value to attract
more visitors to the region. The foregoing arguments suggest the following.
P2. Integrating regional resources and leveraging organizational competences and
capabilities are essential for in-depth tourism service providers to design, develop,
and deliver a high quality service experience for customers.
Technology adoption
Adopting new technologies provide competitive advantages for many ?rms to develop,
market, and deliver their services (see Brynjolfsson, 1996; Kodama, 1999; Ricca, 2004;
Sumathi and Sivanandam, 2007). New services developed from technology adoption range
from e-commerce to database management, from software and digital contents to
geographic positioning systems, and fromcommunication networks to mobile technologies.
Tourisms’ business activities are delivered to customers through the aggregation and use of
various technologies (Ricca, 2004). Applied effectively, information and communication
assist consumers in identifying, selecting, planning, and purchasing tourism products and
services. Technology empowers tourists and provides ?exibility and convenience for themto
obtain detailed knowledge and information. Technology adoption also increases tourists’
bargaining power over the service providers because comparative shopping is effortless
(e.g. pricing information and service contents). On the other hand, adopting technologies
(e.g. data mining and collaborative ?ltering) helps tourism service providers learn about
tourists’ purchasing patterns, pro?les, and preferences. Adopting mobile technologies to
deliver tourism services is increasingly important (Peppers and Rogers, 2007). Finally,
technology adoption improves the visibility and reinforces a region’s attractiveness. These
improvements will signi?cantly in?uence ICT-based tourism development in the future
(Keeney, 1999; Ricca, 2004). The preceding discussion on technology adoption suggests
the following proposition.
P3. Technology adoption helps service providers of in-depth tourism understand
customers’ demands and design, develop, and deliver innovative services.
An integrated framework of service innovation in in-depth tourism
Figure 2 illustrates the framework for designing, developing, and delivering innovative
in-depth tourismservices. Tourismservice providers must understand the ‘‘service concept’’
(Goldstein et al., 2002), which mediates between customer needs and an organization’s
Figure 2 Service innovation and the dimensions of in-depth tourism
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strategic intent. Service providers need to identify customer’s latent demand for in-depth
tourism and to integrate and utilize regional resources with ?rm’s competences and
capabilities in order to design, develop, and deliver higher perceived service value through
technology adoption and use.
To create a ?rm’s competitive advantage, customer value is a critical indicator (Anderson
et al., 2006; Keeney, 1999; Ricca, 2004; Smith and Colgate, 2007; Woodruff, 1997).
Customer value plays a vital role in in-depth tourism design, development, and delivery of
innovative service offerings. Service providers must offer customers a total solution to meet
their latent demands. Local resources provide unique advantages and opportunities for
regional economic and business development. Exploring and creating new resources can
create competitive advantages and new business opportunities (e.g. high-technology
architectures and various recreational facilities in Dubai, UAE, arti?cial beach in Tokyo, or
developing cultural events). Developments in information and communication technologies
have changed how people acquire and use information for decision making. New
technology adoption assists vendors in reaching more potential customers and enhances
the development and delivering of innovative tourism products and services.
Training exercises
The following two cases illustrate the integration of the three dimensions of in-depth tourism
to design, develop, and deliver innovative services to customers. Following the cases, three
questions ask trainees to contrast the cases, to explain how innovation increases customer
value, and to assist tourists with culture-focus tourism.
Kyoto’s cultural tourism
Kyoto city is located on the center of Kyoto Prefecture (Kyoto-Fu). Compared to Tokyo, which
is a fashion and technology center, Kyoto is a classic city representing eastern culture
including ancient temples, sake manufacturing, and Geisha. Arguably, Kyoto is the best
place to learn Japanese customs and see historical buildings and architecture. Therefore,
people who want to experience Japanese culture (especially people who want to knowmore
about the Shogunate Period) and traditional arts would choose to visit Kyoto.
Kyoto was the imperial capital of Japan until the middle of the nineteenth century. As the
center of Japanese culture for more than 1,000 years, Kyoto illustrates the development of
art of eastern gardens, architecture, and Japanese painting and also retains traditional
conventions and institutions. Until Meiji Tenno¯ Mutsuhito, Kyoto was the seat Japanese
Tenno¯ living. Due to the importance of history and value, Kyoto possesses abundant cultural
resources and heritage. Moreover, part of Kyoto’s historical architecture, built in 794 AD, is
recognized in ‘‘The World Cultural Heritage.’’
As a center of Japanese culture, many customs and rich cultural traditions originated in
Kyoto. The castle of Tenno¯ temples and jinja, and the old streets and architecture and
buildings are the regional resources. These historical destinations create higher perceived
customer bene?t, especially for those who want to learn about the Shogunate period and
‘‘The tale of Genji.’’ Local government integrates both tangible and intangible regional
resources by sponsoring the ‘‘Kyoto Art Festival,’’ which is held for one and half months
during the autumn season. Special activities during the Festival include traditional Japanese
music and dancing, and the exhibition of traditional arts and paintings. The theme in 2007
was ‘‘The tale of Genji.’’ The tangible tourism resources in Kyoto include the Kyoto culture
museum, the well-known Nijo-jo castle and Yasaka temple. Nijo-jo castle was built by
Tokugawa Ieyasu as a temporary residence in Kyoto. Yasaka temple in Gion is associated
with the origins of Geisha as well as traditional architecture. The Gion Festival is held
annually in July.
Although Kyoto is a famous Japanese tourist city, local and prefectural governments are
experimenting with technology to attract more visitors. For example, Kyoto’s Prefectural
government plans to cooperate with mobile phone manufacturer to provide new services
(e.g. provide mobile tour guide in various languages). The cooperative effort is designed to
attract more tourists from neighboring prefectures and other countries. Quick Response
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Code (QR Code) is another example of a technology adoption that changes Japanese travel
patterns. This technology allows people to use mobile devices (e.g. mobile phone and
personal digital assistances (PDAs)) to scan the code and obtain tourism information. For
example, ANA (All Nippon Airways) allows passengers to use mobile phone QR Code to
replace the traditional paper tickets. This innovation saves check-in time at the airport and
boarding the aircrafts. Given the popularity of mobile devices in Japan and neighboring
countries, Kyoto’s government continues to explore the functions and capabilities of mobile
communications to promote their cultural resources and to deliver innovative tourism
services.
Montana’s cultural and eco-tourism
The US state of Montana has abundant natural resources, such as Yellowstone National
Park, Glacier National Park, and Rocky Mountain. Montana is called the ‘‘Big Sky Country’’
due to an abundance of natural resources and a pristine environment. Montana is also the
place full of pioneering spirit and cowboy and Indian history. The Lewis and Clark Festival is
a major annual event to honor their spirit and accomplishment. Other festivities and events
are associated with the cowboy culture, such as Montana PRCA (Pro Rodeo Circuit Finals),
Annual Snow Rodeo, and Red Bottom Celebration in various towns and cities. Montana also
is famous for the preservation of Indian culture. Seven Indian reservations exist within the
state. Numerous activities and events honor and celebrate Indian traditions. Indian culture is
a precious asset of Montana. In addition, many well-known artists lived in Montana. For
example, Charles M. Russell, who illustrates the history of Montana through his paintings,
captured the landscapes, the spirit, and the culture of the West during the late 1800s and
early 1900s (C.M. Russell Museum, 2008). The Museumand the Charles M. Russell National
Wildlife Refuge are located in Montana and dedicated to his life and work and his love of
nature. In addition, Kevin Red Star and King Kuka both are distinguished Indian artists.
Tourist can see and learn both Indian culture and arts and cowboy traditions by visiting
Montana museums. The cowboy mythology is the other cultural resource in Montana.
Several important events sponsored or supported by the local governments are held during
the year to attract tourists, such as Montana Pro Rodeo Circuit Finals and Livingston
Roundup Rodeo show.
To promote Montana’s tourism, the tourism bureau maintains a website to advertise various
events and activities in more than 33 languages. Montana’s internet site provides information
on both eco-tourismand cultural tourism. Potential tourists can obtain detailed information to
assist themin learning the region and planning for the trip. Information technology is applied
to eco-tourism such as the tour guide system in Yellowstone, NP. Although mobile
technologies or kiosk system has not yet been adopted for promoting cultural tourism in
Montana, information regarding cowboy and Indian cultures, customs, and arts are
published on the of?cial internet web site. In addition, many tourism service providers in
Montana also adopted information and communications technologies (e.g. internet sites)
and multimedia technologies (e.g. DVDs and videos) to advertise and deliver their services:
1. Compare and contrast the two case studies based on how these regions integrate
resources and competencies to deliver higher perceived customer value.
2. How can service providers design, develop, and delivery innovative service offerings to
create higher perceived customer value?
3. How can service providers assist customers in culture-focus tourism?
Trainers’ notes
Several lessons can be learned from studying these two cases. The evidence suggests
some travelers want more than a sightseeing holiday. These travelers seek information about
speci?c themes or learning objectives. Culture learning is one theme of in-depth tourism.
Customers choose culture-centric themes to gain both knowledge and traveling experience
(e.g., cultural tourism). In-depth tourism emphasizes ‘‘depth.’’ Tourists prefer to stay in a
speci?c region and study a ‘‘theme’’ rather than glancing through various sceneries. Unique
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regional resources provide customer incentives to visit. Using technology assists tourists in
planning, traveling, and learning new knowledge. Service providers need to explore what
types of resources are valuable and suitable to deliver to customer and how to do so
effectively and ef?ciently. Overall, service providers need to identify, create, and deliver
higher perceived bene?t or value to customers.
Table I summarizes and compares the two case studies of in-depth tourism. In both cases,
the regions integrate regional resources and competencies as well as create and deliver
higher perceived customer value through the technology adoption and implementation.
How can service providers create innovative services to create higher customer value?
Deliver higher customer value is the ?rst objective. For example, many tourists travel to Kyoto
to experience and gain the knowledge of the culture embedded into Japan’s traditions and
history. To create better value through higher service quality and experience and to avoid
dissatisfaction, service providers (e.g. travel agencies) need to start by self-examination of
how their product ?ts into the competitive environment. Some key issues to be addressed
are as follows:
1. What are the unique regional resources and how can they potentially create value?
2. Which customers’ values are received from consuming regional resources?
3. What are the costs of delivering such service?
4. How should the service provider be involved in delivering the services?
5. What knowledge and contents should the service providers deliver?
6. How should workers be trained to design, develop, and deliver a total solution to satisfy
customers’ latent demand for high quality and service experience in-depth tourism?
7. Which technologies are appropriate to assist customers in the entire process (e.g., from
initial planning to post-trip re?ection) of travel?
8. Can an effective internet business model and strategy for building and maintaining
long-term customer relationships be developed (see Lee, 2001)?
Service providers must identify the critical value-added components of regional resources
and lead customers to explore and discover the value to increase their willingness to pay for
the bene?t. Service providers also need to understand the service concept (see Goldstein
et al., 2002). How are customers’ perceived values increased? Can increases in perceived
value be accomplished with effective service design, development, and delivery? A key
point is the holistic nature of effective service delivery. The entire organization’s activities and
performance are involved in providing customers with a quality service experience in order
to build and maintain long-term relationships with them. Service providers must design and
deliver a service concept that ensures high customer value and low cost.
Table I Summary of cross-case-study
Traveling products and services of in-depth tourism
Dimensions Kyoto – Cultural tourism Montana – Cultural tourism
Customer value Experience and learn the traditional Japan via
participating in local cultural events
Tourists visit Montana to appreciate and experience
traditional American culture, and learning Indian and
cowboy history
Regional resources Cultural capital
Traditional Japanese religious and cultural buildings
Monuments and museums
Conventional architectural style
Monuments
Indian reservations
Cowboy customs
Museums
Festivals and events
Technology adoption Information web site
Mobile tour guide services
QR code services
Internet web site
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Although technology can enhance tourists’ experiences, service providers need to identify
and implement the appropriate technologies that support organization’s service concept
and business model. First, the selected technologies must be technically feasible to solve
the problem and to deliver the service effectively. Second, the economic bene?ts of
adopting the new technologies must be greater than the costs of acquiring and
implementing them. Third, the entire organization must support the implementation of
chosen technologies to deliver quality in-depth tourism services.
How can service providers assist travelers in culture-focused tourism? Cultural differences
are both opportunities and threats to serving foreign tourists. Tourists travel to explore
foreign regions and cultures. Unfortunately, sometime tourists experience culture shock in a
foreign country. Culture shock relates to disappointed expectations and discomfort felt when
people do not act or react as expected. The unexpected behavior leads to a feeling of not
belonging or of being threatened by the new culture. When one’s expectation does not
match the reality surrounding them, travelers experience elevated levels of stress. Belowis a
list of key issues and challenges that service providers must be addressed to reduce
cross-cultural friction:
B Understand the key differences between customers’ and the region’s cultures (and
religions).
B Identify potential cross-cultural ?ash points and educate travelers on these key
differences.
B Offer cross-cultural training for travel agents to assist customers in coping with the culture
shock issues.
B Learn how to assist customers in appreciating and acculturating to the local culture and
traditions
The key is identifying cultural differences between the foreign visitors and the traveling
regions. One example is religion. Considerable differences exist in Christian, Buddhist, and
Shinto tenets. Other differences exist in societal attitudes about ethnicity, politics, nation, or
cognition of arts and science. Some psychological and physical symptoms may be
appeared due to the experience of cultural differences (e.g. sleep disorder). Therefore
determining cultural differences and understanding the culture shocks prior to travel are
necessary. Additionally, service providers need to assist customers in addressing and
solving the cultural difference issue. For example, learn how to relax when traveling to new
places and encountering new cultures. Also, remember that customs and behavioral norms
are different, so refrain from judging different values and beliefs.
Conclusion
This paper discusses a new tourism trend. This new tourism form creates an opportunity for
both regional public agencies and private ?rms to integrate various regional resources and
competencies. Through the adoption of new technologies, innovative services and
experiences can be designed, developed, and delivered to create higher perceived
customer bene?ts. Because in-depth tourists often have more traveling experience, they
seek advanced knowledge about the local culture, history, and environment through
self-learning and education experience. Therefore, tourism service providers need to
understand and to increase the perceived customer value by creating suitable products.
The integrated framework and training exercises are designed to assist business and
regional planners in developing and implementing innovative and high-value added
in-depth tourism services to promote regional development and business opportunities.
In-depth tourism is a holistic solution to satisfy customers’ learning and entertainment
experience. Successful service delivery requires close collaboration among both primary
and supporting service providers to provide higher bene?ts for both service ?rms and
customers. Future research will extend the current framework to discuss speci?c drivers for
value creation in in-depth tourism.
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Harvard Business Review, Vol. 76 No. 6, pp. 53-5.
Corresponding author
Chung-Shing Lee can be contacted at: [email protected]
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