Value innovation and creation of new markets for a destination / Ismail Zabeeh

Abstract

No other form of innovation has had as widespread favorable effect on creation anew markets as value innovation. Maldives have long been known as expensive and luxury destination and introduction of value innovated guesthouses has evolved market composition and changed entire value curve of the destination. One of the most remarkable impacts of value innovated guesthouses is on markets. There has been very little work directed towards tourism innovation, and especially there is no research conducted to understand the impact of value innovation at a broader level like a destination. An understanding of the effects of value innovation on geographic market segments of Maldives may help to measure creation of new markets for a destination with an increase in value innovation arising from the introduction of guesthouses.

This study investigates the effects of increased value innovation, on the geographic market segments of continents and countries. Attention has also been paid to the markets that has negative relationship with value innovation as it can be an important information for tourism marketers to come up with an effective marketing strategy.

The study found that the Middle Last market popularity increases with the increase in value innovation which indicates that in the case of Maldives, Middle Fast market could be described as a nascent destination market. Evidences from three different approaches confirmed Middle Fast as a nascent destination market for Maldives and therefore indicates that value innovation results in creation of new market for a destination. It also found that Europe and Africa is less attracted towards value innovation. All top ten European markets for Maldives is also having negative relationship with value innovation except Italy.

The implications of these results for the tourism researchers are that value innovations such as value innovated guesthouses play an important role for a destination to create new demand and attract new type of tourists. Knowing the nascent destination market will enable tourism marketers to develop better marketing strategy.
Further research is recommended to identify reasons why Middle Last market is more attracted towards value innovation and conceptualization can be generalized by conducting a research across various destinations. Such a research should ensure that the selected destination fulfills the conditions to investigate nascent destination market.