TRANSFORMATION OF THE BUSINESS SERVICES MARKET IN THE CRISIS: TREND ANALYSIS
Abstract
As the economy recovers from the Covid-19 pandemic, the business services market is actively transforming. The hospitality sector and modern tourist destinations will no longer resemble those that existed before the pandemic; the interests, priorities, needs, and behavior of service consumers have also changed. Therefore, the study is devoted to the current trends in the transformation of the business services market, focusing in particular on the most vulnerable sectors of the economy – tourism, hotel and restaurant business, and hospitality. In addition, the study aims to develop proposals for performance management in the context of constant restrictions on social interaction and stabilization of market processes after the crisis. To achieve this goal, the article uses the statistical and analytical method, the comparative method, analysis and generalization, as well as tabular and graphical modeling. Since the current global trends have led to a transformation of the views of modern scholars on the prospects for resumption of activity in the commercial services market, the article analyzes in detail the general trends and practical mechanism of functioning of the commercial services market, the level of efficiency of its individual sectors, their infrastructure support, and the dynamics of market processes at the stages of exacerbation of the pandemic and gradual recovery from the crisis. Based on the analysis, the author identifies not only problematic aspects and directions, but also methods for optimizing the functioning of the market space, which is important for creating favorable conditions for the further development of the global commercial services market. In particular, it is determined that the conceptual provisions and regulatory mechanisms should help stimulate effective demand and expand the supply of services after a prolonged socio-economic crisis. To determine the stability of the development of regional markets for commercial services, modern approaches of complex analysis, in particular the XYZ analysis method, were used. The analysis showed that the European region and North American markets had a stable structure of services exports before the pandemic. Consequently, the recovery of business activity in these markets will be faster than in the markets of Asia, the Middle East, Africa, South and Central America, where supply is volatile or seasonal. The dynamics of development of business services markets in the regional context, trends in interstate trade in services, and the efficiency of the commercial services market are analyzed. The impact of the Covid-19 pandemic on its dynamics is determined, and a study of changes in the quantitative and qualitative structure of the market caused by significant business transformations and digitalization of the business sector in crisis conditions is conducted.
References
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Chi, O. H., Gursoy, D., & Chi, C. G. (2020). Tourists’ Attitudes toward the Use of Artificially Intelligent (AI) Devices in Tourism Service Delivery: Moderating Role of Service Value Seeking. Journal of Travel Research, 1–16. Available at: DOI: doi:10.1177/0047287520971054.
Creswell, J. W. & Poth, Ch. N. (2018). Qualitative Inquiry & Research Design Choosing among 5 Approaches. Thousand Oaks, CA: Sage. 459 p.
Duan, J., Xie, C., & Morrison, A. M. (2021). Tourism Crises and Impacts on Destinations: A Systematic Review of the Tourism and Hospitality Literature. Journal of Hospitality & Tourism Research, Vol. XX, No. X, Month 202X, 1–29. Available at: DOI:10.1177/1096348021994194
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Koskela-Huotari, K., & Siltaloppi, J. (2020). Rethinking the Actor in Service Research: Toward a Processual View of Identity Dynamics. Journal of Service Theory and Practice, 30 (4/5), 437–457. Available at: DOI: 10.1108/ JSTP-11-2018-0245
Kuščer, K., Eichelberger, S., & Peters, M. (2021). Tourism organizations’ responses to the COVID-19 pandemic: an investigation of the lockdown period. Current Issues in Tourism, 1–14. Available at: DOI:10.1080/13683500.2021.1928010
Morrison, A. (2006). A contextualisation of entrepreneurship. International Journal of Entrepreneurial Behaviour & Research, 12(4), 192–209. Available at: DOI:10.1108/ 13552550610 679159
Peters, M., Kallmuenzer, A., & Buhalis, D. (2018), Hospitality entrepreneurs managing quality of life and business growth. Current Issues in Tourism, 1–20. Available at: DOI:10.1080/13683500.2018.1437122
Peters, M. & Buhalis, D. (2013). SMEs in tourism destinations. In C. Costa, E. Panyik, & D. Buhalis (Eds.), Aspects of tourism: Vol. 60. Tendencies in European tourism planning and organisation (pp. 93–101). Bristol: Channel View Publications.
Peters, M., Frehse, J., & Buhalis, D. (2009). The importance of lifestyle entrepreneurship: A conceptual study of the tourism industry. PASOS –Journal of Tourism and Cultural Change, 7(2), 393–405.
Perles-Ribes, J. F., Ramon-Rodriguez, A. B., Moreno- Izquierdo, L., & Sevilla-Jimenez, M. (2017). Economic crises and market performance-A machine learning approach, Tourism Economics, 23(3), 692–696. Available at: DOI: https://doi.org/ 10.5367/te.2015.0536
Richards, G. (2020). Tourism in challenging times: resilience or creativity?” Tourism Today, 19, 8–15. Available at: https://pure.buas.nl/en/publications/tourism-in-challenging- times-resilience-or-creativity
Richards, G. (2017). Tourists in their own city – considering the growth of a phenomenon, Tourism Today, 16, 8–16.
Romagosa, F. (2020). The COVID-19 crisis: Opportunities for sustainable and proximity tourism. Tourism Geographies, 22 (3), 690–694. Available at: https://doi.org/10.1080/ 14616688.2020.1763447
Wen, J., Kozak, M., Yang, S., & Liu, F. (2021). COVID-19: Potential effects on Chinese citizens’ lifestyle and travel. Tourism Review, 76(1), 74–87. Available at: DOI: https://doi.org/10.1108/TR-03-2020-0110
World Trade Organisation (2021) World Trade Statistical Review 2021. Geneva: World Trade Organization. Available at: https://www.wto.org/english/res_e/statis_e/wts2021_e/wts2021_ e.pdf (Accessed 14 October 2023)
World Tourism Organization (2021). UNWTO World Tourism Barometer. Madrid: World Tourism Organization. Available at: https://www.e-unwto.org/loi/wtobarometereng (Accessed 14 October 2023)
Zeithaml, V. A., Verleye, K., Hatak, I., Koller, M., & Zauner, A. (2020). Three Decades of Customer Value Research: Paradigmatic Roots and Future Research Avenues. Journal of Service Research, 1–24. DOI: https://doi.org/10.1177/ 1094670520948134
