How technological innovations extend services outreach to customers : The changing shape of hospitality services taxonomy

Purpose – This paper seeks to deal with an exploratory analysis of the impact of technological innovations on the extent of outreach of hospitality services to customers. Design/methodology/approach – After a review of several hospitality services, two factors were selected to assess their outreach to customers: location of service provider; and direct or indirect service delivery mode. Findings – Placing these factors on different axes, cells were created to distinguish innovative features of these services. It became apparent that, as the technological innovations develop, new categories of services are emerging. These categories were placed into six different cells identifying services based on their innovative characteristics. When the proximity of the service provider to the customer is less, the range of services involves: service and style improvements; service‐line extensions; and major service innovations. With the increase in distance between service provider and customer, service processes become prominent and involve: process improvements; process‐line extensions; and major process innovations. With the advancement of technology, services move from direct to indirect delivery mode in both service and service process innovations. In order to illustrate the assumptions, examples of services and technology used are provided. Research limitations/implications – Recommendations are provided for utilizing technology for enhancing services based on the location of their target markets. This is an exploratory analysis of the current situation, which will rapidly change with technological developments. Practical implications – Findings led to the recommendations for service innovations, location of desired markets, and providing services to customers at near and far locations. Service providers and marketers can benefit by utilizing innovative technology suitable for reaching their selected target customers. Originality/value – The work is a first step in studying services, technology use, and outreach to customers. Identifying service categories will help service marketers in locating their target market and providing services to customers using developing technology.