Technological disruptions in Services: lessons from Tourism and Hospitality

Purpose – Technological disruptions such as the Internet of Things and autonomous devices, enhanced analytical capabilities (artificial intelligence) and rich media (virtual and augmented reality) are creating smart environments that are transforming industry structures, processes and practices. This paper explores critical technological advancements using a value co-creation lens to provide insights into service innovations that impact ecosystems. The paper provides examples from tourism and hospitality industries as an information dependent service management context. Design/Methodology/Approach - The research synthesizes prevailing theories of co-creation, service ecosystems, networks and technology disruption with emerging technological developments. Originality – Guest experiences in tourism and hospitality by definition take place in hostile environments that are outside the safety and familiarity of one’s own surroundings. The emergence of smart environments will redefine how customers navigate their experiences. At a conceptual level, this requires a complete rethink of how stakeholders should leverage technologies, engage and reengineer services to remain competitive. The paper illustrates how technology disrupts industry structures and stimulates value co-creation at the micro and macro-societal level. Societal Implications – Technological disruptions impact all facets of life. A comprehensive picture of developments here provides policymakers with nuanced perspectives to better prepare for impending change. Limitations – Tourism and hospitality services prevail under varying levels of infrastructure, organization and cultural constraints. This paper provides an overview of potential disruptions and developments and does not delve into individual destination types and settings. This will require future work that conceptualizes and examines how stakeholders may adapt within specific contexts.