The Effect of Innovation on Guest Satisfaction in Hurghada City Resorts, Egypt

Abstract Purpose: The main goal of innovation is to improve guest service and products and also guest satisfaction. Taking into account the four types of innovation recognized by organization for economic cooperation and development, the purpose of this research is to understand how innovation effect on guest satisfaction, specifically in the hospitality industry. Design/methodology/approach: The data collection was done through qualitative (interview) and quantitative methods (questionnaire). For the quantitative data processing, the Statistical Package for Social Science software was used through statistical inference methods. Findings: The results show the effect of the four dimensions of innovation on guest satisfaction. These results confirm previous studies on the effect of service, marketing and process innovation on guest satisfaction. However, the results also show the positive relation between guest satisfaction and organizational innovation as well as the relationship between organizational innovation and the other types of innovation. Research limitations/implications: The results of this study were based only on one resort. The extension to other cases may strengthen the results. Practical implications: The confirmation that guest satisfaction is associated with innovation, in its four dimensions, can contribute to better decision-making, not only for the resort in the study but also for the sector. Originality/value: Focusing on understanding the relation between the rate of innovation and its effect on guest satisfaction, the study expands the knowledge about the importance of services innovation on a specific resort in Hurghada City.