Value Innovation Through Pre-Arrival Room Customization: A Blue Ocean Strategy Design for App-Enabled Hospitality Personalization

This study develops a Blue Ocean Strategy–oriented strategic design for TailorStay, an app-enabled hospitality service that introduces pre-arrival hotel room layout customization as a new basis of competition in an industry typically characterized by standardized room configurations and price-led differentiation. The proposal addresses a service gap wherein guests have limited ability to align room layouts with purpose-specific needs (e.g., business productivity, relaxation, family use, accessibility) prior to check-in. Using a structured value-innovation approach, the study applies the Eliminate–Reduce–Raise–Create (ERRC) grid, a strategy canvas, and a buyer utility map, complemented by customer-journey logic to specify how customization can be operationalized through hotel partnerships and flexible room systems. The resulting strategic architecture emphasizes eliminating one-size-fits-all layouts and reducing reliance on unnecessary amenities, while raising personalization, satisfaction, and brand differentiation through experience-centered value. A basic unit-economics feasibility layer outlines fixed and variable cost categories and computes a break-even threshold of 2,000 bookings under stated assumptions (₱7,000,000 fixed costs; ₱5,000 selling price; ₱1,500 variable cost per booking). As a conceptual design proposal, the contribution lies in integrating Blue Ocean tools with managerial costing to articulate a coherent path to differentiation; empirical validation through pilot implementation and customer-response measurement is identified as a necessary next step.