E-service failure and recovery strategy in times of crisis: effect on peer attitudes, expectation and future intention

Abstract

This study analyses the impact of the critical issues on Travel and Tourism e-service failure and explores specifically how peer-to-peer accommodation business can cope with the potential collapse in demand caused by global crises. The purpose is to examine the impact of peer-to-peer accommodation’s recovery offer on revisiting intentions and relationships termination in light of justice-, fairness-, and attribution theory. In this vein, the main aim is to develop a theoretical model which is underpinned by an understanding of the consequences of e-service failure and the effectiveness of recovery strategies for business competitiveness. To gauge peer perceptions of peer-to-peer accommodations, we employed a mixed-method approach. Alongside 17 interviews with peers and industry experts, a survey involving 404 peer-to-peer accommodation users was conducted. Structural equation modelling was applied to unravel the intricate relationships and influences at play. The findings suggest that managers and service providers need to focus on timely recovery and building stronger relationships with peers, to increase repurchase intention and post-recovery satisfaction and to better front the crises times. This could be implemented efficiently via the platform of social media. This study offers specific theoretical and practical implications by providing a fair recovery strategy to result in the satisfaction of both parties.