Concepts and Innovation in Hospitality industry in UK

Concepts and Innovation in
Hospitality industry in UK

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Define Innovation. Also list out different sources of innovation..........................................3
P2. Explore the Importance of innovation to business performance...........................................5
M1. Evaluate the contribution of innovation to business performance and analyze the benefits
that can be gained as a result.......................................................................................................7
D1. Critically evaluate the contribution of innovation to business strategy and performance to
achieve hospitality business objectives........................................................................................7
LO2..................................................................................................................................................8
P3. Analyse the factors driving innovation in the hospitality industry using a range of
organizational examples..............................................................................................................8
M2. Critically analyse the advantages and disadvantages of factors driving innovation in the
hospitality industry for meeting business objectives to maximise profit...................................10
D2. Critically evaluate how the factors driving product, service and brand innovation across a
range of organisations in the hospitality industry sustain profitability and competitive edge. .10
LO3................................................................................................................................................11
P4. Review a range of different innovative concepts and approaches that have been
implemented in the hospitality industry using specific examples.............................................11
M3. Evaluate a range of innovative concepts and approaches within the hospitality industry
using specific examples, analysing the extent to which they have added value........................12
D3. Critically evaluate the success of a range of innovative concepts and approaches adopted
by hospitality organisations.......................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation can be defined as the process into which an entity tries to bring changes within
their product and services in order to competitive advantage from the market. In current scenario,
it has been seen that innovation is among the most crucial process within the entity for surviving
within the market. Frequent changes in product and services keeps customers or guest attracted
towards the organisation through which goals can be accomplished easily. The current report is
based on Hilton Hotel which is a multinational brand where it serves its services in different part
of the world. The entity was founded in the year 1919 which is almost 100 years back
(Kasemsap, 2017).
In this particular file, there are different topic which will be discussed which will be related
to the innovation where its meaning and importance of innovation for the business performance
will be discussed. Factors driving the concept of innovation will be focused including different
range of innovation and its approaches.
LO1
P1. Define Innovation. Also list out different sources of innovation
Innovation is explained as the concept of translating an idea or invention into a good or
service that value or for which customers will pay (Bowie, 2018). It needs to be understood that
organization must be able to do proper research related work in order to accomplish their goals
and target. It is needed to be understood that innovation is categorized into two categories which
is evolutionary innovation and revolutionary innovation (Jones, Hillier and Comfort, 2016). In
evolutionary innovation, organization tries that how they can advance their technology in order
to attain their targets at the same time revolutionary innovations is for those innovation which is
completely new and which changes the whole working pattern.
There are basically three different types of innovation which can be seen and they are
product innovation, process innovation and business model innovation. The detail description
about types of innovation has been mentioned below:
 Product Innovation: It is the type of innovation which relates with changes in product
and services which company offers to their customers. In context of Hilton Hotel, they
can introduce new services for their customers such as introducing of mobile room keys

which will enhance the security system within the premises of hotel (Witell and et. al.,
2016).
 Process Innovation: In this particular process of innovation, organization tries to bring
changes within their process of operating with customers so that effective services can be
provided. Hilton Hotel can work themselves in the area where they can provide location
based services so that customers can feel more comfortable to enjoy their services
(Brooker and Joppe, 2014).
 Business Model Innovation: It is the process of innovation into which whole of working
process is changes within the entity for attaining the targets. While talking about Hilton,
they if they will adopt this particular process of innovation process then lots of changes
are required which they must bring into the business entity (Three Types of Innovation –
Product, Process and Business Model, 2018).
In current scenario, there are number of sources through which innovation can be brought
within the entity into which management sources and non-management sources plays the most
crucial role. Below, detail description about management and non-management sources has been
discussed.
Management Sources
 Process Needs: Talking about process needs, Hilton Hotel can bring changes in their way
of working where different online services can be introduced. Also, company can plan for
the use of multiple communication channels in their process. For example: email service
can be used by employees for having conversation through which positive results can be
obtained. (Kallmuenzer, 2018)
 Service’s Needs: Some of the additional services can be provided to customers because
that is the only way through which organisation can perform effectively. In context of
Hilton Hotel, their management can add on the services like room cleaning services
which will be two times a day and many more. Laundry services are can be effective and

even they can plan for the introduction of customised services as per the requirement
of customers. (Jones and Boer, 2018)
 Physical Production Needs: Here, organisation like Hilton can work in Catering and
Buffet storage. Here, company can introduce some of the new dishes which are mostly
preferred by tourist.
Non-management Sources
 Psychology: Here, in this particular source, it will be necessary for the employees of
Hilton to identify that what they are expecting from the organisation according to that
services must be provided to them. For example: Tourist who stays within the hotel for
number of days it means that Laundry services are also needed by them due to which
company should be able to provide that as well by identifying itself (Bowie and et. al.,
2016)
 Design: It will be necessary for the entity to identify the necessary requirement and
according to that management of Hilton should be able to design their plans. This can
certainly provide them additional benefit through which goals can be accomplished
easily. Oskam, 2018) From, design can relate with the way of performing any of the
business activity where role of management is huge.
 Culture: Any of the organisation can bring innovation within their culture because it is
one of the ways through organisation can attain their goals and target. In context of the
culture of a company like Hilton, they can bring innovation in the formation of team,
internal working process so that effective results can be achieved by the company.
P2. Explore the Importance of innovation to business performance
It is necessary to understand that on a daily basis competition is increasing within the
market where people or organisation must be able to upgrade themselves in order to sustain
within the market. Talking about hospitality industry, there are number of organisation which has
been performing within the market and it is essential that they should be able to work as per the
requirement of situation by bringing some of the innovation (Kasemsap, 2017). There are two
types of importance of innovation for Hilton hotel which has been explained below in detail.

External Importance
 Competition: In present scenario, competition is increasing on a daily basis within the
hospitality sector and if any of the organisation wants to survive within the market, they
must be able to bring innovation within their working style. Talking about Hilton Hotel,
innovation will allow them to give strong competition to some of the global brands like
Intercontinental, Holiday Inn and many more (Weidenfeld, 2013).
 Lower Cost: Nowadays, any of the customers likes to see price structure along with
services included in it. Similarly, if management of Hilton Hotel will be able to work for
those innovation process through which overall expenses can be reduced then it will
certainly allow them to sustain within the market by giving competition to rivalry firms
(Kandampully, Zhang and Bilgihan, 2015).
 New Entrants: On a daily basis, number of organisations enters into the market which
has been increasing the competition for existing organisation as well. If company like
Hilton will be able to work on their innovation process, then they can easily allow
themselves to create problems for new entrants to survive within the market (Bowie,
2018).
 Market Drivers: It needs to be understood that whenever any of the organisation
performs its business activity there are number of factors which may create issue such as
demand, economic forces, social changes and many more (Alzyoud, 2019). In context of
Hilton Hotel, it is essential for the entity to ensure that they are able to work according to
the requirement market drivers and being innovation accordingly because it will reduce
the negative impact of market drivers and even it will provide the way to accomplish the
goals (Jayawardena and et. al, 2013).
Internal Importance
 Improves Profitability: It needs to be understood that management of Hilton hotel can
easily enhance their overall profitability ratio if they can bring innovation to their
working process. It is because innovation will certainly allow them to bring positive
changes within the entity through which higher percentage of customers can be attracted
(Slåtten and Mehmetoglu, 2015).

 Improves ROI: Rate of Investment is the ratio between net profit and cost of investment.
Higher rate of investment is very much crucial for company in order to gain advantage
from the market place. In context of Hilton Hotel, their management is required to work
that how they can improve their ROI with the help of innovation because it can be only
reduced if overall expenses on investment can be decreased (Kallmuenzer, 2018).
 Improves Quality: It is always essential for any of the business organisation that they
must be able to improve the overall quality of product and services which they provide to
their customers. It is essential for the company like Hilton to work continuously on
improvement of service which is only possible through the process of innovation
(Gomezelj, 2016).
These are some of the internal and external importance which Hilton can automatically
improve if they will be able to work on innovation program. If in case company fails to do so
then it gets difficult for them to survive within the market and even huge problem may also occur
for the entity.
M1. Evaluate the contribution of innovation to business performance and analyze the benefits
that can be gained as a result
Any of the innovation is crucial for enhancing the performance of a company because it
boost the working style of a company. There are lots of contribution for Hilton hotel from the
innovation process which they can gain such as it can easily allow them to enhance their overall
profit ratio. Secondly, employees of company will get opportunity to complete their work on
specific time period which can be important for accomplishing the company. Also, if company
like Hilton will be able to bring positive changes through innovation then they can easily allow
themselves to improve their overall goodwill in the market.
D1. Critically evaluate the contribution of innovation to business strategy and performance to
achieve hospitality business objectives
According to “Ana P. Lopes and et. al., 2012”, innovation has a huge contribution to the
business organisation but at the same time it is essential to understand that organisation can only
perform effectively if they have effective innovative ideas. Innovation allows the organisation to
form effective policies which can certainly accomplish the goals of Hilton hotel. For example:
Company introduces the email services within the company to operate with different department

and in that particular situation they can form policies that who are those employees that will have
the right to do discussion with members (Gomezelj, 2016). Although, there are number of
benefits but at the same time it needs to understand that if innovation is not done as per the
planed business strategy then it may create huge issues for the organisation because business
goals may not be accomplished There are number of other expenses which may occur due to
ineffective business strategy and innovation which will certainly have a negative impact upon the
growth of a company. Although company made the strategy to use some of the advanced
technology but at the same time, they fail to hire skilled and knowledgeable employees then in
this particular scenario they might have to suffer from losses (Slåtten and Mehmetoglu, 2015)
LO2
P3. Analyse the factors driving innovation in the hospitality industry using a range of
organizational examples
Organisation can perform better only with the help of bring innovation to their working
style because it making working condition easier and faster which is very much important in
current scenario. Hotel like Hilton must focus within innovation area on regular basis because it
is the only way through which they can attain success within the specific time period. There are
some of the key factors driving innovation within the hospitality industry which has been
discussed below in detail.
 Technology Advances innovation: Every time company uses innovation process,
technology plays the major role because of the current requirement of the market. In
context of Hilton Hotel, their management always believes upon innovation process
because of the outcomes which it has provided to the company. Some of the technologies
where company have brought changes successfully in last few years are related with POS
(Point of Sales), PMS (Property Management System). Both of this technology has been
helpful for customers of Hilton as well as for company too because payment system
improved because of it. Additionally, available space with the hotel can be easily
identified through PMS technology (Bowie and et. al., 2016).
 Artificial Intelligence: It is one of the thing where organisation can easily work and even
it can become helpful as well for obtaining the result. In order to bring innovation with
the company management of Hilton Hotel can try to work for developing Chat-box

through which any of the customer’s query can be resolved. It can be the key driving
factors through which Hilton hotel can accomplish their goals and target (Witell and et.
al., 2016).
 Management Innovation: It relates with the process of bringing changes within the
working style of management with the help of innovative process. In order to bring
changes Hilton Hotel, can collect different feedbacks from its customers because it will
certainly provide them the way that how they are needed to deal with any of the situation
with innovative ideas (Brooker and Joppe, 2014).
 Marketing innovation: This is among one of the most important innovation process
which can be helpful for hospitality industry. It is because it can introduce the new idea
for attracting higher number of customers towards the hotel. In terms of Hilton Hotel,
their organisation can easily focus towards those innovation process through which
effective marketing can be done. Here, company can even take the help of digital
marketing for promoting their services are a reasonable amount (Bharwani and Talib,
2017).
 Business model innovation: It is among one of the most important factor for the
business organisation like Hilton because here they will have to focus upon business
model innovation into which organisation will focus that management can bring changes
into their working style so that unnecessary expenses can be reduced and even which can
allow them to attract more customers (Weidenfeld, 2013).
 Process innovation: There are some of the situation in which an organisation is required
to bring changes into whole process of working. In terms of Hilton, organisation can
work in that particular manner through which services to customers can be provided in
short time period. It is among one of the most important needs within the innovation for
organisation like Hilton for attaining their goals (Kandampully, Zhang and Bilgihan,
2015).
 Service Innovation: This type of innovation is helpful for the business organisation like
Hilton. In servicer innovation, the main area which Hilton needs to target is that how they
can present themselves in best possible manner for giving competition to rivalry firms. If

customers will get the option to do comparison, then they can easily allow themselves
attain success (Backman, Klaesson and Öner, 2017).
These are some of the key essential factors which may play crucial role within the whole
process of innovation. If an organisation becomes able to bring changes as per the requirement of
then they can easily take competitive advantage in the market which is very much important in
current scenario.
M2. Critically analyse the advantages and disadvantages of factors driving innovation in the
hospitality industry for meeting business objectives to maximise profit
In present scenario, any of the entity looks for earning profit because it is the only way
through which they can stay within the market. The driving innovation factors can be one of the
main source through which organisation can allow them to maximise their profit. Below, some of
the advantages and disadvantages of driving factors has been mentioned:
Advantages:
 Driving Factors certainly allows the business to take growth by bringing new innovative
idea in working style of a company (Gomezelj, 2016).
 Modern way of performing work may allow to reduce unnecessary expenses for the
organisation (Jayawardena and et. al, 2013).
Disadvantages:
 For any of the entity, bringing innovation to their working style is never an easy task
because lots of changes are needed to be done which can be one of the time-consuming
process (Weidenfeld, 2013).
D2. Critically evaluate how the factors driving product, service and brand innovation across a
range of organisations in the hospitality industry sustain profitability and competitive edge
For any of the organisation, it is necessary to use different types of driving factors
because it is the only way through which organisation can attain their targets. Any of the
hospitality industry requires changes and for that they are needs to take the help of driving
factors because it is the only way through which they can attain their targets and goals (Slåtten
and Mehmetoglu, 2015). Although driving product and services are helpful for the business

entity but at the same time it is necessary to understand that every time this process might not be
successful because high capital is required for introducing any of the changes which certainly
creates issues in attaining the targets. Failure in any of the innovation process may subsequently
requires the loyal customers of the organisation.
LO3
P4. Review a range of different innovative concepts and approaches that have been implemented
in the hospitality industry using specific examples.
There are different types of innovation concept which can be used within the hospitality
industry but major focus is given to the concept of Co-living and AirBnb and CRM where detail
description has been mentioned below:
Co-living: It is explained as the modern form of communal living where residents gets
private bedrooms within the furnished area but home is shared among different persons in it. It is
among one of the popular ways of staying within any of the place which certainly helps person to
afford their expenses while living in any of the major cities. This type of concept is mainly
followed in major cities of any nation where different types of opportunity are available for the
person. The characteristics of Co-living says that this type of place allows to settle a greater
number of people as compared to size where it tries to resolve the problem by developing the
concept of sharing. It has been contributing to develop the mind-set of people where they can
adjust with each other (Oskam, 2018). The main benefit of this particular process is that it is less
expensive for an individual because of the concept of sharing on which it relies.
AirBnB: It is defined as the online marketing place which allows to connect with those
people who wants to rent out their homes to those people who are looking for accommodation
services. It generally stands for Air-bed and breakfast for specific time period. This particular
concept makes work easy for the one who is looking for rental place and for the who wants to
rent out their specific property for certain time period. The main characteristics of AirBnB is
related with providing services to the customers as per their requirement. It has been contributing
to the society where this organisation will work on behalf of the person who requires service and
the one who wants to provide services. The main benefits of AirBnB people will have to pay
charges on the basis of area rather than number of people which is mainly seen with hotels
(Brooker and Joppe, 2014).

CRM: It is explained as the process where organisation tries to uses different types of
technology in order to maintain their relation with customers for longer time period. This type of
technology is helpful for the organisation because it certainly increases the profit volume for the
company. The main characteristics of CRM is that it simply allows to do proper communication,
which is important factor within hospitality industry. Contribution of this concept is to hire those
employees who are able to perform their part of work as per the requirement of client.: It simply
allows to improve and deliver better customer services which is very much important in current
scenario which is the main benefit for any of the customers (Witell and et. al., 2016).
M3. Evaluate a range of innovative concepts and approaches within the hospitality industry
using specific examples, analysing the extent to which they have added value
It needs to be explained that innovation concept has been very much helpful because it
simply allows to attain the result which company is willing to attain. In general words, it can be
said that innovation concept such as AirBnB, CRM as well as Co-living has improved overall
standards and even it has been helping customers as well. It is because customers are able to get
accommodation services even at a cheaper amount which easily allow them to settle within new
city or place (Alzyoud, 2019).
D3. Critically evaluate the success of a range of innovative concepts and approaches adopted by
hospitality organisations
Innovation concepts has been allowing the hospitality industry to progress at a higher
speed but it needs to understand that this type of concept has also created problem for them.
After the introduction of innovation concept, they are unable to earn higher amount of profit
from the room which they give for accommodation services. But at the same time there are
benefits as well such as hospitality industry gets the opportunity to connect with more number of
customers and whenever any of the company becomes successful to connect with higher
percentage of customers then in that respective condition there is higher probability to enhance
profitability ratio as well as goodwill of the company (Jayawardena and et. Al, 2013)

CONCLUSION
After having detail analysis to the file, it can be concluded that organisation should be able
to work in that particular manner where they can allow themselves to bring changes with the help
of innovation process. Different models and factors are there through which innovation can be
done but the main thing which is necessary to be understood is that proper research program
should be done by organisation in order to bring innovation within the entity.

REFERENCES
Books & Journals
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality
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Kasemsap, K., 2017. Promoting Service Innovation and Knowledge Management in the
Hospitality Industry. In Strategic Marketing Management and Tactics in the Service
Industry (pp. 243-279). IGI Global.
Bowie, D., 2018. Innovation and 19th century hotel industry evolution. Tourism
Management, 64, pp.314-323.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Jones, P. and Boer, A., 2018. Developing the Edge Hotel School. In Innovation in Hospitality
Education (pp. 161-179). Springer, Cham.
Bowie, D. and et. al., 2016. Hospitality marketing. Taylor & Francis.
Bharwani, S. and Talib, P., 2017. Competencies of hotel general managers: A conceptual
framework. International Journal of Contemporary Hospitality Management.
Backman, M., Klaesson, J. and Öner, Ö., 2017. Innovation in the hospitality industry: Firm or
location?. Tourism Economics, 23(8), pp.1591-1614.
Oskam, J. A., 2018. Introduction: Innovation in Hospitality Education. In Innovation in
Hospitality Education (pp. 1-12). Springer, Cham.
Alzyoud, S. Y., 2019. Psychological safety and employee innovation in four-and five-star hotels
in the UK (Doctoral dissertation, Manchester Metropolitan University).
Gomezelj, D. O., 2016. A systematic review of research on innovation in hospitality and
tourism. International Journal of Contemporary Hospitality Management.
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creativity on innovation behavior in the hospitality industry. Journal of Human
Resources in Hospitality & Tourism, 14(2), pp.195-219.
Jayawardena, C. C. and et. al, 2013. Trends and sustainability in the Canadian tourism and
hospitality industry. Worldwide Hospitality and Tourism Themes.
Kandampully, J., Zhang, T. C. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management.
Weidenfeld, A., 2013. Tourism and cross border regional innovation systems. Annals of Tourism
Research, 42, pp.191-213.

Brooker, E. and Joppe, M., 2014. Developing a tourism innovation typology: Leveraging liminal
insights. Journal of Travel Research, 53(4), pp.500-508.
Witell, L. and et. al., 2016. Defining service innovation: A review and synthesis. Journal of
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