This thesis examines some factors that play a role in creating new opportunities for service innovationwithin the context of budget hotels, and aims to identify the various factors that characterize servicelogic in practice. The research question aims to explore the conditions that are required to develop astructured service innovation process at Good Morning hotel, which ultimately influences thecustomer experience. The study employs a qualitative research approach and collects data throughin-depth interviews from different perspectives, including management, staff, and customers, to gaininsights into their perceptions and their experiences of service logic. Through a deeper understandingof service logic, Good Morning Hotel can identify new ways to deliver value to its customers.The findings of this study suggest that there are divergent views regarding the awareness of servicelogic among hotel staff. On one hand, some may be unaware of service logic. On the other hand, astrong culture emphasizing the creation of a positive customer experience has been observed at the hotel.