ABSTRACT : The hospitality industry is highly dynamic and significantly impacted by external factors. Therefore, hotels must continuously innovate and adapt to the evolving environment. Acknowledging existing gaps is necessary to pinpoint the areas where repairment and innovation should be implemented. Incorporating value co-creation in strategy formulation is significantly beneficial due to its capability to foster innovation and continuous improvement. In this research, an independent 3-star hotel located in Jayapura, Papua, will be the subject of the study. A qualitative approach is employed, specifically through one-on-one interviews with a total of 10 participants, involving both internal stakeholders as service providers and external stakeholders as customers. To identify relevant gaps, the author integrates the five gaps of the service quality framework in determining themes and utilizes the four-phase value co-creation model to develop solutions. It was discovered that there are issues within the five gaps model of service quality, and it is advisable for YS Hotel to be actively collaborating with customers and offer unique and culturally immersive experiences.
KEYWORDS – Service quality gaps, Value Co-Creation, Innovation, Stakeholder Collaboration, Service Improvement