Service convergence and service integration in medical tourism

Purpose: The goal of this paper is to introduce and discuss the concepts of service convergence and service integration, illustrate them in the context of the medical tourism industry, and link them to factors that contributed to the success of a medical tourism firm. Methodology: The basis for the conceptual development of service convergence and service integration is an in-depth case study of Bumrungrad International Hospital (BIH) in Thailand. Based on semi-structured interviews and archival data, BIH’s business model is analyzed and factors are identified that led to its success in the industry. Findings: BIH’s success can be attributed to nine key initiatives that enhanced customer focus, operational efficiency and service quality. These initiatives supported BIH’s two-fold business model of product differentiation and globally competitive prices. The firm’s activities led to the integration of medical and hospitality services resulting in a new, enhanced product. Competitors adopted BIH’s service integration approach, which started the service convergence trend in the medical tourism industry. Research implications: The conceptual foundations for service convergence and service integration are laid in this paper and can serve as the basis for future research. Practical implications: Insights from BIH’s business model can guide firms in medical tourism and related industries on how to innovate and how to successfully implement their service products. Originality: This paper introduces the term service convergence and discusses its mechanisms. Furthermore, it identifies success factors of a leading firm in the medical tourism industry and links them to service integration.