Concept and Innovation in Hospitality

This document discusses the concepts and sources of innovation in the hospitality industry, explores the importance of innovation to business performance, evaluates the contribution of innovation, analyzes the factors driving innovation, and reviews different innovative concepts and approaches implemented in the industry.

Concept and Innovation
in Hospitality

Table of Contents
Introduction......................................................................................................................................1
Discuss the concepts of the innovation and different sources of innovation.......................1
Explore the important of the innovation to the business performances................................2
Evaluate the contribution of innovation to the business performance...................................4
Analyse the factors diving innovation in the hospitality industry using the range of the
organisation............................................................................................................................4
Critically analyse the advantage and disadvantage of factors driving innovation in the
hospitality industry.................................................................................................................6
Review the range of the different innovative concepts and approaches that have been
implemented in the hospitality industry.................................................................................6
Evaluate the market potential in terms of the customer alignment and financial return for the
innovative concepts................................................................................................................8
Conclusion.......................................................................................................................................9
References : ..................................................................................................................................10

Introduction
The innovation in the hospitality industry is essential activity which helps the
organisation to provide the innovative and created product and service to its customer present in
the organisation . the concepts of the innovation in this industry includes offering new good and
service in the market places and become the unique organisation in the targeted segment. There
are various sources which helps in applying the new and advance innovation in their
management level so that organisation are able to achieve the desire results in the most
effective manners . under this report, the Four season is the hotel in the UK market and working
in different part of the world. there will be discussion on the important of the innovation to the
organisation outcomes and examine the key factor involved in the development (Alegre, and
Berbegal-Mirabent, 2016).
Discuss the concepts of the innovation and different sources of innovation.
Innovation is refers to the process where the organisation offer different and unique
service in their hospitality sector to its customer so that they are able to take the competitive
advantage in the market places and grow their operational activities at the international market
places. in the relation to the Four season organisation are looking forwards to the innovation in
their food and beverages section and accommodation facilitates so that they are able to have
more customer as compared to their competitors present in the work places. they have come up
with the new service called as “build in hand free technology “ which helps the customer to
control the room items, place the food order without calling the staff and managing another
useful items. (Booyens. and Rogerson, 2016)
Invention: it is defined as the process which helps in providing better business ideas to
the organisation which leads to developing the effective business strategy so that goals and
objective can be achieved within the set time period. it is easiest process to place their goods at
the market places.
Types of Innovation
There are different various kinds of the innovation in the this sector such as new food
variety and drinks helps the organisation to have large number of the customer in the market and
this innovation can be in the form of new accommodation services to its customer.
Different sources of innovation
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In the context of the Four season, hotel, the manager used the different kinds of the
source of the innovation in the organisation to achieve the desire profits .
Management sources - Here the organisation uses management as the effective source of the
innovation so that they are able to finds out the needs and wants of the customer and provide
them accordingly in the market places. (Cheah and Li, 2018. )
 Process needs: under this source, the organisation evaluate the different process which
helps in finding the innovative product for its client in the market so that work can be
completed within the set time period and in the profitable manners. here the organisation
focus on having the effective process which helps in achieving the organisation goals and
objectives in the most profitable manners.
 Service needs: the organisation can make use of this source to develop the effective
service to its customer which fulfil the wants of the consumer in the market . the
hospitality industry is knowing for the their service to the customer that helps them to
build the strong brand image in the market . here the customer are provided with the good
quality of service which helps them to fulfil the desire of the customer in the long run.
 Physical production needs: the organisation need to have proper physical place where
they are able to perform their task and activities in the systemic manners and they can
operates their tasks and serve the customer at the market places.
Non-management sources
 Design : it is essential part of the innovation which helps in having more customer to the
new service or new kind of drinks and food that are available in the management level of
the organisation. With the effective design the innovation look attractive in the market
places and increases the number of customer.
 Psychology – Innovation is primarily about generating new ideas and implementing the
same in order to enhance a particular product or process.
Explore the important of the innovation to the business performances.
The innovation at the management level of the organisation are very important for the
organisation which helps in enhancing the business performance at the targeted market segment.
These innovation concepts helps the organisation to achieve the desire results in the most
effective and profitable manner as they can attach the more clients form the various part of the
world. with the reference to the Four season , organisation focus on having the innovative ideas
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and thought as they know the importance of these innovation in their management and these
important are examine in the form of the external and internal ways so that organisation can
perform in better manners. (Gomezelj,., 2016)
External importance : in the hospitality industry, the innovation have several important to
survive in the market places , some of the external important are stated as below:
 Competition: as there are huge competition in the hospitality sector, the innovation in
their product and services helps them to compete in the market and focus on taking the
advantages in the market places. in the relation to the Four season organisation works in
the environment where another organisation are also offering the similar services to the
customer so to get success in the market place., organisation have to come up with the
innovative in the food and beverages items so that customer will take with the hotel in the
long run.
 Lower cost : under the hospitality sector, innovation are not so costly as they
organisation have to provide the new variety of foods which involve less investment in
the process so that organisation can earn the profit margin by offering the different
foods. The accommodation service can also be provided at the low prices which helps in
having more clients in the Four season hotel.
 New entrant : the innovation in the hospitality sector, create the way to enter in the this
industry by offering the new technology for its customer so that can enhance their
experiences in the hotel . with the new food cuisses the customer with attracted towards
the organisation and which leads to better business outcomes.
 Market drivers : here the organisation tries to find out the demand of the customer what
kinds of the service they are looking in the market so that Four season can provide them
such good quality of good and service according to the various factors such as economic,
social and demographics’(Guttentag,. and Smith,., 2017.)
Internal importance: in the relation to the Four season, the organisation have some internal
importance which helps to improve the performances of the organisation in the market places.’
 Improve profitability : With the innovation in the service as build in hand free
technology and new kind of food helps the organisation to increase their performance at
the management level which will leads to more profit generation for the organisation in
the present as well as in the long run.
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 Improve return on investment (ROI) : in the Four season, the organisation invest
huge amount of capital in innovating new service and food items which leads to better
return in the long run as the customer started using their service and stay with the
organisation for longer period of time.
 Improve cash flow: manager of the Four season are able to create the effective cash
flow in their organisation by giving the new service in the form of the technology helps
in serving the lot of customer at the management level which generate more profits for
the organisation and improves the flow of cash for the organisation.
 Improve Quality – Innovation also helps in improving the overall quality of the products
that are offered by an organisation. This further leads to the organisation attracting a
greater number of customers.
Evaluate the contribution of innovation to the business performance
The innovation contributes to the better performance of the organisation at the targeted
market place. as the innovation helps in attaching more clients towards the Four season hotel ,as
they are able to serve the best quality of the foods and accommodation with the advance
technology which simplifying the work of the customer and fulfil their need in the most effective
and profitable manners. with the innovation the organisation have enhance their performance at
the market places which build their brand image in the mind of the customer . the innovation
helps in making the proper business strategies where they are focus on growing on their business
cross the global market places. (Hassi, 2019)
Analyse the factors diving innovation in the hospitality industry using the range of the
organisation.
In the market places where the organisation operates its business activities gets influenced by
the factors that drive the innovation in the this sector. There are different kinds of the drives
which leads to innovation in the organisation . some of the factors that drive the innovation are
stated as below:
Technology advance innovation: in the hospitality sector, the most of the important
service innovation comes from the effective use of the technology at the market places and also
helps in having growth of the organisation. the organisation uses the advance online services
and make difference on how the hotel, OTA s and AirBnBs serve their customer and provide
them personalized service (Innerhofer, 2016).
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Artificial intelligence : with the cornered about the hospitality industry, the role of the
artificial intelligence is have huge impact on the innovation as it helps in having customer to
staff interaction and having internal staff efficiency at the management level. The organisation
use build in hand free “which serve personalized wants of the customer and helps the
organisation to expand their business. For example, it can be used to deliver customer service in
person. This is because customers these days value services as well as products that are
customised.
Management innovation: Here the organisation uses the different management
innovation such as TQM, MBO and another various managerial things which leads to create
innovation in the hospitality sector (Li. and Hsu,, 2016). it also provide the latest management
service like lean production method where the wastage are reduce at the work place and have
proper relationship among the organisation and customer. For example, introduction of biometric
technology has increased the security of not only the hotel guests but also the employees within
the premises.
Marketing innovation: in the hospitality industry, the marketing innovation are helpful
to satisfied the customer needs and organisation are able create the brand loyalty customer with
applying the marketing method such as online brand society , and various another things. For
example, different innovative ways are being used to market the products like social media
platforms etc.
Business model innovation: here the organisation focus on having the new business
design and creating value to the service which leads to make better business model where the
organisation are able to capture the market with the innovative model(Innerhofer, 2016).
Service innovation : under this drive , the organisation provide new service to the
customer with the value added to the product and service which are provide to the customer so
that their wants and needs can be completed within the set time period (Pizam,and Tasci, 2019).
The customers relish the experience that they get at a hotel and that is considered even more
important if it is customized.
Process innovation: with the reference to the Four season hotel , the innovation is
usually done in the process to serve the customer on the effective and productivity manners .
with the new process the consumer experience , and e-commerce and other service which helps
the customer to enhance their services in the organisation (Pikkemaat, and Zehrer., 2016). For
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example, The process of making bookings online has been made innovative so that the customers
get a chance to do bookings easily.
In the hospitality industry, the Four season hotel have various drives that leads to
innovation in the management level of the organisation and are able to serve the largest number
of customer which leads to better performance of organisation at the international market places.
Critically analyse the advantage and disadvantage of factors driving innovation in the hospitality
industry.
The critically evaluation of the factors that leads to the innovation in the organisation have
various impact on the performance of the organisation in the long run. this impact can be seen as
the advantages and disadvantaged with the references of the Four season organisation.
advantages of innovative drives is that organisation are able to serve its customer in the effective
manner by offering new and advance service which helps in having more number of consumer
towards the firm and helps in retaining these customer and the disadvantages is that organisation
are not able to serve the customer as per the demand in the market , the organization are able to
make effective marketing for their new service which harm their profitability in the market
places. (Li. and Hsu,, 2016. )
Review the range of the different innovative concepts and approaches that have been
implemented in the hospitality industry.
Co-living is concerned as the community that provide the sharing the house with the
people and it is innovative way to provide the service to the customer in the market places
(Hassi, 2019). it is modern concepts where the people come together for the meal and have a
healthy discussion on the various things. It has gained the interest of lot of people who are
interested in sharing the space and having the house opportunities with less cost in the market
places.
 Characteristics : the co-living, it considered as the part of the conjunction of the two
things such as physical space, shared value and philosophy.
 Physically: it is single room occupancy, which leads have individual space in the
combined property . here the flatshare is common in the current time period as it have
more opportunities for the individual with shared kitchen and another required facilities
(Alegre, and Berbegal-Mirabent,, 2016).
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 Philosophically : here the customer who have independent co living space, having
shared value and interest have huge impact on the performance of the hotel in the market
places.
 Contribution: these co-living space has huge contribution in growing the server industry
to the large extend as they provide the place to stay and offer customer best
accommodation and advance technology which helps them to serve their wants in the
effective and productivity manners. (Pizam,and Tasci, 2019)
 Benefits: these co-living serves helps the customer to use the innovative services in the
hospitality sector at the low prices which helps the sector to grow at the international
market places and look for the achieving the desire level of the profits in the long run
(Booyens. and Rogerson, 2016).
Customer relationship management (CRM) : it is defined as the method where the
relationship are build with the customer and learn about their demand and need and behaviour so
that product and service are provided accordingly in the market places (Cheah and Li, 2018). it
is process which provide information about the customer needs, marketing effectiveness and
what are the market trends which helps in understanding the desire of the customer and focus
on offering them theses facilities
The key points and characteristic which are included in the customer relationship
management:
 Customer satisfaction: the main motive of the customer relationship is to have
customer fulfil their wants and desire form time to time and build the effective
relationship so that customer stay with the organisation for the longer period of time.
 Customer delight : by offering the new service to the customer they wants to stay
connected with the hotel in the market so that they can receive the unique good and
service as compared to another organisation goods.
 Customer loyalty : here the organization tries to make the customer loyal towards their
services and they can do this by having the strong communication with the customer so
that they are aware about the new service which are present in the market places
(Gomezelj,., 2016).
 Benefits of the CRM : The advantage of the effective Customer relationship is that
organisation are able to manage the demand of the customer in the long run and retain
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these customer loyalists in the market places and build their brand image in the targeted
market places.’
Total quality management : it is refers to the concepts where the organisation focus on
providing the good quality of the product and services to its customer so that they are able to
earn the customer loyalty and fulfil their satisfaction by offering the services in the effective
manners.
With the help of total quality management , the Four season are able to manage their
operational activities in the most profitable ways so that they are able to reach out the targeted
customer in the market and serve them the service which they are looking in the market places.
The total quality management have some categories such as :
Plan: here the customer come with their issues and problems which needs to be addressed
by the organisation so that they can fulfil the need of the customer and provide them the service
with the advance resources (Guttentag,. and Smith,., 2017).
Doing phase: here the organisation focus on providing the solution to the customer so
that proper service can be provided to the customer.
Checking phase: the customer in this stage, make the comparison for providing the
before and after service by the another organisation and make use of available resources.’
Acting phase: the organisation focus on providing the effective services to the customer so that
they can stay for longer period of time.
Evaluate the market potential in terms of the customer alignment and financial return for the
innovative concepts.
The market in which the organisation operates its activities needs to be examine in the terms of
the customer goals and financial returns from the different activities in the management level in
the organisation. the market needs to be productivity in terms of fulfilling the need of the
customer and also provide the effective return on the investment which are made by the
organisation to achieve the desire level of profits margin in the targeted market places.
(Pikkemaat, and Zehrer., 2016)
Conclusion
According to the above discussion ,it can be concluded that innovation is concerned as the
important part of the success of the hotel in the hospitality industry. The manager of the hotel
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focus on providing the new services to the customer so that they can stay connected with the
organisation for the longer period of time. There are various innovative methods which the
organisation can use to make growth in the market place by offering the different kinds of the
goods and service to the customer at the market places. there are also various factors that leads
to innovation in the organisation and huge revenue in the long run.
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