By Robert J. Harrington

Hospitality and tourism make up one of the largest industries in the United States. At the same time, the market is saturated with competition, and consumer expectations are evolving.

In changing times, how can hospitality businesses change to meet the needs of their customers and still run a successful operation? One tip is to understand what customers are looking for. Then, develop creative and innovative experiences to keep them coming back for more.

A key to success is understanding that “hospitality” is no longer confined to traditional hotels and restaurants.

Historically, restaurant and hospitality businesses have been very production-centric, focused on providing goods through a one-way channel from business to consumer. But modern customers expect more out of their experiences, and because of new technologies, are much more informed, active and connected to each other and the world around them. They show a strong appetite for experiences creating a positive impact on their quality of life, from digital detoxes and wellness cleanses, to spiritual retreats and opportunities to escape the humdrum of daily life.

People are taking shorter but more frequent vacations, excursions and even staycations. This allows them to unplug from the day-to-day while still enjoying quality dining, shopping, arts, culture and other experiential activities — particularly those related to entertainment, sustainability, education, health and wellness, or a combination of these elements. Millennials are a showcase example, as they notoriously prioritize spending on experiences over material things, including traveling abroad, trying new bars and restaurants, and attending concerts and festivals.

Consumers also crave authenticity and personalization more than ever before. This trend signals a larger shift in consumer values away from passive experiences toward more interactive, co-created experiences.

Adjusting to this new notion of service quality will enable hospitality businesses to grow and flourish in new ways. At its core, the concept of “co-creation” is a dynamic and collaborative process to create an experience through two-way dialogue and input between the customer and service provider. Organizations embracing co-creation devote time and attention to tailoring the guest experience for each person.

Whether in-person or digitally, every customer touchpoint presents an opportunity for hospitality businesses to enhance the guest experience while creating a competitive advantage. For example, food and wine pairing in a restaurant can be used strategically to appeal to guests’ senses of sight, smell, taste, touch and hearing, giving them an immersive encounter with the brand and enhancing their overall dining experience. The process of food and wine pairing shows how layering new components, textures and flavors affects a patron’s pleasure and fulfillment with the entire dining experience.

Other factors such as eating location, light, ambiance, music and dialogue can also play an important role. Understanding these synergies can boost service providers’ confidence when providing recommendations to customers and can significantly increase the average check (at the end of the day, that means bottom-line profits). From the guest perspective, it can augment the perception of service professionalism and authenticity and make their dining experience more satisfying, resulting in more return business and positive recommendations.

Other interactions between customers and staff may be with hotel concierge and guest services, wait staff and housekeeping, and even travel agents and tour guides, among many others. Often the customer also has engaged online before even setting foot in the building, through the company website, social media or a mobile app. Each touchpoint plays a role in the co-creation process.

On the employee side, the concept of co-creation affords greater opportunities for organizations committed to engaging and empowering their staff to play a role in the process. Within this context, employees feel pride and support, and are fully engaged through an emotional commitment that trickles down to all who come in contact with that employee.

The most successful businesses aim to foster a culture of rewards and recognition for superior service, and they encourage employees to go above and beyond to address customer needs and solve problems. This is where employees’ skills, knowledge and levels of motivation and commitment bring the most value to the business. The practice of sharing information and taking into account customer feedback and recommendations can further improve staff’s understanding of customer needs, thus making their jobs less demanding and the service more effective.

The ability to meet and even exceed customer expectations—before, during and after the service—through the art of hospitality is key to crafting an all-around rewarding and enriching experience for guests today. Keeping in mind the contemporary notions of hospitality, and empowering staff to play a role in the co-creation process, will ultimately help businesses evolve with the needs of their customers while still driving bottom-line profits.

Robert J. Harrington is a professor of hospitality business management at WSU’s Carson College of Business. He holds a doctorate in strategic management and is author of “Food and Wine Pairing: A Sensory Experience.”