ABSTRACT
This chapter aims to address the existing literature on customer involvement and Web 2.0 as well as by analysing two related case studies from the tourism industry. The practical implications of these case studies are identified and discussed in order to provide tourism firms with more suggestions on how to fully exploit the innovation potential of Web 2.0. Overall, the chapter provides a holistic framework based on which tourism firms can identify the ways in which they can exploit the two features of Web 2.0 for actively engaging customers into new service development(NSD) processes. Web 2.0 provides numerous opportunities for exploiting customer intelligence and involving customers more actively in NPD processes. The chapter has shown that firms need to exploit Web 2.0 for being both reactive and proactive in NSD and innovation. For example, when a firm is examining blogs' content for identifying customer needs, it adopts a reactive approach to customer requests.
