Concepts and Innovation in Hospitality industry in UK

Concepts and Innovation in
Hospitality industry in UK

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Discuss the Concept of ‘innovation’ and sources of innovation...........................................3
P2. Explore the Importance of innovation to business performance...........................................4
M1. Evaluate the contribution of innovation to business performance and analyze the benefits
that can be gained as a result.......................................................................................................6
D1. Critically evaluate the contribution of innovation to business strategy and performance to
achieve hospitality business objectives.......................................................................................6
LO2..................................................................................................................................................6
P3. Analyse the factors driving innovation in the hospitality industry using a range of
organizational examples..............................................................................................................6
M2. Critically analyse the advantages and disadvantages of factors driving innovation in the
hospitality industry for meeting business objectives to maximise profit....................................8
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....9
LO3..................................................................................................................................................9
P4. Review a range of different innovative concepts and approaches that have been
implemented in the hospitality industry using specific examples...............................................9
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........................10
D3. Critically evaluate the success of a range of innovative concepts and approaches adopted
by hospitality organisations.......................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

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.
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. Discuss the Concept of ‘innovation’ and sources of innovation.
Innovation is explained as the concept where new idea or methods is used by business
entity in order to sustain and accomplish their goals through market. It needs to be understand
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.

 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.
 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. In context of Management sources, it is said that entity should be able to work in
that respective where they can allow themselves to bring changes within their process and
service which they provide to customers. Similarly, in non-management sources, organization
works in that particular way into which they must be able to develop the psychology through
which their goals and target can be accomplished. Even changes can be brought within culture by
adding on the diversified working environment.
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.