Concepts and Innovation in Hospitality

CONCEPTS AND INNOVATION IN
HOSPITALITY
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Concept of innovation and different sources of innovation.........................................................3
Importance of innovation to business performance and other benefits.......................................4
Evaluation of the way innovation contribute to business strategy and performance for
achievement of hospitality business objective.............................................................................5
LO2..................................................................................................................................................5
Factors that are driving innovation in hospitality industry..........................................................5
Advantages and disadvantages of factor driving innovation for meeting business objective.....6
The way company is able to sustain through factor driving products, brand innovation and
services........................................................................................................................................6
LO3..................................................................................................................................................7
Range of different innovative concepts and approach used by organisation...............................7
Evaluation of success of innovative concepts and approach.......................................................8
LO4..................................................................................................................................................8
Pitch for Innovative concept used by company in hospitality industry in terms of its potential
and feasibility...............................................................................................................................8
Evaluation of market potential in term of customer’s requirements and financial feasibility...10
CONCLUSION..............................................................................................................................10
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INTRODUCTION
Innovation can be stated as innovative ideas or change made in existing products,
services and ideas by organisation in order to retained its competitive advantages. Tourism and
hospitality is one of the growing industries of United Kingdom that have generated around 3.2 m
jobs and over £73bn of Gross Value Added. So it has effective contribute in growth and
development of economy. Hilton is global brand of full service hotel as well as resorts that has
been initially started on 31 may 1919 having its operation across worldwide. The company is
highly dedicated and determined to delivered more and more qualitative services to customers so
that they can feel happy and satisfied to maximum extend. This report is about Hilton, the way it
have bring innovation to grow and sustain its operation in hospitality sector of United Kingdom.
It has discussed about the factors that drive innovation, what are the benefits that are gained by
company through new idea. At last it has covered pitch innovative concepts used by company
and evaluation of market potential for better results.
LO1
Concept of innovation and different sources of innovation
Innovation can be terms introduction of new or improved products and services so that
customers are motivated to prefer particular company as compared to other for satisfaction of
their respective requirements. The company in order to get market opportunities, current existing
problem that customers face tries to develop a new or innovative idea that can be successful for
growth of organisation. So, Hilton through making continuous improvement in its existing
products and services is able to retained customer satisfaction and gain competitive advantages
in hospitality industry (Busser, Shulga and Kang, 2019) There are different sources of innovation
such as unexpected, incongruities, demographic, market structure and changing perceptions
which can be explained as follows:
Unexpected: The common source of innovation is unexpected as they can happen by chance as
someone suddenly get the new business idea to attract customers. Many of the innovation has
been happened unexpectedly only.
Incongruities: It can be stated that when people find some problem, or need of incongruent with
supply that it contribute in development of innovative idea.
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Necessity: Moreover another source of innovation is the necessity of some products and services
which lead in development of bright ideas. Likewise entrepreneur think of innovative ideas to
meet existing needs as well as preferences of customers (Mishra, 2020).
Demographic: The way our lifestyles enhance is also one the source of innovation as with our
growth in lifestyles, people wants new and innovative method to satisfied their requirements in
best possible manner.
Changing perception: Taste and preferences of people keeps on changing as per circumstances
as well as situation that gave birth to innovation. With changing scenario, companies start
finding new alternative method that could be used to make customers happy and satisfied.
New knowledge: The sources of innovation can also be due to new knowledge, as every year
new areas are being discovered that helps in brining innovation within hospitality industry of
company.
Importance of innovation to business performance and other benefits
Innovation is important for business performance and getting maximum benefits because
through this company is able to create its brand image in mind and hearts of customers. It helps
enterprise in creating its value for organisation thereby leading in generating revenue
opportunities and enhancing market share of company (Moro and Rita, 2018). The reason that
state importance of innovation for business performance and other benefit can be interpret as:
Solve problem easily: The Innovation is important as organisation is able to solve current
problem or issue that are faced by maximum number of individuals in the society. Creative
thinking helps in finding alternative solution so that problem can resolve in best manner.
Increase productivity: The company like Hilton that continuously bring innovation within
organisation can easily enhance overall productivity by motivating employees to work hard for
benefits of organisation.
Promotion of brand image: Another importance of innovation is that it helps Hilton in
promoting and building its brand image to provide innovative and qualitative services to
customer’s thus increasing profit margin of company.
Beat competitors: Innovation also lead in betting the competition, as company through little
innovation, creativity and better designing lead in connecting with range of customers thereby
expanding its business (Altinay and Taheri, 2019).
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