Value propositions during service mega-disruptions: Exploring value co-creation and value co-destruction in service recovery.

Abstract

This paper explores value co-creation and co-destruction by focusing on the role of value propositions, practices, and institutions in the tourism ecosystem during COVID-19. Customers that had experienced travel cancellations were interviewed. The findings indicate that during service mega-disruptions, customers re-evaluate resources and value propositions by prioritizing eudemonic well-being, demonstrating at the same time sympathy for the tourism firms' well-being. However, consumers expect reciprocity, honesty, transparency, and flexibility from tourism firms. The service mega-disruption of COVID-19 provoked a misalignment of practices and routines that led to value co-destruction. This paper proposes that value co-creation can be achieved during a service mega-disruption when actors demonstrate more altruism, solidarity, and shared intentions to maximize or protect the well-being of the ecosystem's actors.