Concepts and Innovation in Hospitality

INNOVATION IN HOSPITALITY

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Explain the concept of innovation and various sources of Innovation..........................................3
P2 Explain the importance of innovation in enhancing the business performance.............................5
TASK 2.................................................................................................................................................7
P3 Explain the factors that lead to innovation in the hospitality industry with various organizational
examples............................................................................................................................................7
TASK 3.................................................................................................................................................9
P4 Analyze a range of various innovative concepts and approaches that have been adopted by the
hospitality industry. Elaborate with examples...................................................................................9
TASK 4...............................................................................................................................................10
P5 Illustrate an innovative concept in aspect of hospitality industry that has a huge market potential
and feasibility to take the market.....................................................................................................10
P6 Pitch an innovative concept for the hospitality industry.............................................................10
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Innovation is referred to a process that aims to add up new characteristics in a product
or service according to the researches that have been conducted in the market. The
innovations are done in order to attract the customers in huge number to generate higher
revenues by increasing sales. Innovation is referred to the basic improvements that are
brought in the business in order make the existing products better in the market. The
capability of an organization to adapt themselves with the recurring changes in the
environment, while introducing the newly improved products and services in the market is an
important factor for every organization. Innovation is referred to conversion of an idea or
approach into action. Innovation is often considered as a successful exploitation of ideas
commercially. Adapting to the changing environment and introducing products like wise
allows to organization to have a competitive edge. It helps in facing the competition in the
industry. Similarly, Innovation has a huge role to play in the hospitality industry that helps
them to stand the competition in the market.
HISTORY OF INNOVATION
Innovation is an idea of introducing and implementing new ideas and methods. It
basically involves multiple activities which help in discovering the new ways of completing
the tasks. The report revolves around the concept of Innovation in the hospitality industry.
Innovation began to be adopted as a process in terms of industries and science during the
nineteenth century. The root of innovation flourished during the industrial revolution.
Innovation in that period emphasized upon the creativity in all terms rather than just being
restricted to technical inventions. The various factors that have led to gaining popularity of
innovation through ages is the rise in consumer demand, culture, increasing patents,
establishment of labs for research and development process. The report highlights upon the
importance to the hospitality industry through innovation practices. Further it determines
factors that have a huge role to play in the hospitality industry which lead to innovation
(Alvarez-Riscoand et.al., 2020).
TASK 1
P1 Explain the concept of innovation and various sources of Innovation.
Concepts of Innovation
Innovation is referred to introducing something new. If there is no innovation there is
nothing new and until and unless there is nothing new there cannot be any progress or
growth. In order to cope up with the competition in the market it is advised to introduce
changes in the organization that can lead to long term profits. The organizations usually
collaborate with various other organizations and hence it can be sometimes difficult to
understand the impact of the innovation upon the society in macro terms. Innovation is the

main reason that has led the environment for modern existence in the society (Leta and Chan,
2021). The innovation can also have some adverse impacts upon the organization, as change
is constant. But in most of the cases innovation leads to a positive change only (Bichler,
Kallmuenzer and Peters, 2020).
Types of Innovation-
There are four types of innovation that are discussed below-
 Architectural innovation- Architectural innovation is referred to a kind of innovation
where the organization gets to learn something whether it is the form of new skill,
new technology, new feature or anything that adds up to the development. This kind
of technology requires a little push in order to experience change in a better way.
These are considered to have low risk as there is consistent change in the technology.
 Incremental innovation- The incremental innovation is a kind of innovation where the
organization introduces changes through the existing technology only. These changes
occur in form of new product or service. This process of innovation is mostly used by
the small industries or the medium scale industries.
 Disruptive innovation- The disruptive innovation is also referred as the stealth
innovation. The reason behind this that the organizations introduce innovation in form
of new technology in order to gain more market share by grabbing the part of the
competitors too. These are offered in order to increase the effectiveness through their
various services in product.
 Radical innovation- Radical innovations are the innovations that are planned out
while keeping a thought about the environment. These are basically the out of the box
innovations that lead to development of a new product or service that can prove
beneficial due to its unique feature and product differentiation.
Sources of innovation-
There are various sources of innovation in an organization or an industry. There are
mainly two broad categories of sources of innovation. A. Management sources B. Non
management sources.
Management sources-
 Process needs: The process needs require innovation in order to reduce the cost of
production. The decrease in cost of production will lead to increase in the profits of
the organization. This leads to determining the creative ways that can cut the
production cost of any organization. This is possible through innovative techniques
used in the production process.
 Service needs: Innovation due to service need arises when there is a need to invest in
the innovations that have huge potential to provide solutions for the challenges that
occur in the organization. Innovation occurs when there is a requirement of
implementing and improving Information Technology needs. The situation which
requires more investment upon the human capital refers to the knowledge and skills of