Figure 5 shows the main effects for the "customization" attributes. Across all hotel and traveler types, available childcare facilities, in-room kitchen facilities, and pet policies have the largest impact on hotel choice. Respondents deciding on economy hotels placed a greater emphasis on all the customized service options in comparison to the other types of hotels. Once again, implying that travelers choosing among economy hotels make their choices based on the innovative offerings the hotels provide.
The results shown in Figures 2-5 and Table IV have both academic and managerial implications. First, the results present the tradeoffs made by hotel guests. secondly, by examining the tradeoffs made by hotel guests, in terms of innovative service offerings, we are able to enhance the design and development of a service concept. Lastly, by pinpointing which innovative attributes have an impact on hotel choice; managers will be able to judge how, operationally, they should deliver such innovative services.
Discussion and conclusions
Past research and anecdotal evidence suggest that service innovation, in general, has a positive impact on customers' choice and can result in increased revenues for a firm. IBM's innovative service program is just one example of the financial benefits that can be realized from implementing service innovation. Our study, demonstrates the impact of including innovation within a hotel's service concept. The type of hotel has the largest impact for both business and leisure travelers' hotel choices. We also find service innovation to have a larger impact on guests who are selecting economy hotels in comparison to midrange or upscale hotels. Furthermore, innovative service amenities, such as technological improvements and customization features, have a stronger impact on leisure travelers' hotel choices in comparison to business travelers; while hotel type has a larger effect for business travelers' choices. Overall, we found across both customer segments that innovation does matter when selecting a hotel.
Recalling the three broad categories of hotel innovation presented in our study hotel type, technology, and customization we can infer the following results. First, hotel type contributed to the majority of hotel choice. In particular, business travelers' decisions were found to be guided more by hotel type when compared to leisure travelers; and midrange to upscale hotel selection were influenced more by hotel type than economy hotel selection. second, the technology option, specifically the booking of hotel reservations via the internet, has the smallest impact on both business and leisure travelers' hotel choice. Third, the customization construct's greatest impacts came from available child care, pet accommodation, and the inclusion of in-room kitchen facilities.