Concepts and Innovation in Hospitality

This assignment explores the concept of innovation in the hospitality industry and its importance to business performance. It discusses the different sources of innovation and the range of innovation concepts and approaches implemented in the sector. The assignment also highlights the factors driving innovation in the hospitality industry.

Concepts and
Innovation in
Hospitality
1

Table of Contents
INTRODUCTION...........................................................................................................................4
Concept of innovation and its different sources.........................................................................4
Importance of innovation to business performance....................................................................5
Factors driving innovation in hospitality industry......................................................................6
Range of innovation concept and approaches implemented in hospitality.................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Nowadays innovation has become a major tool and practices for growth and development of
business. It has allowed companies operating in hospitality sector to provide unique and high-
quality services. Besides that, with the help of innovation they are able to enhance efficiency and
improve process. Moreover, technological innovation has provided a platform to expand in new
markets and attract more customers (Akhundjanov et al., 2020). Thus, it has transformed the way
of offering services to people.
This assignment will describe about the concept of innovation and different sources. Also, it will
be explained about importance of innovation in business performance. Furthermore, factors
driving innovation along with various concept and approaches of innovation applied in
hospitality industry will be discussed. At last an innovative concept will be described in brief.
Concept of innovation and its different sources
Innovation is process of new thoughts, ideas, concepts, etc. that helps in effective processes,
commodities and ideas (Arora et al., 2016). It is known as creating a new idea to redesign or
reproduce new goods and services. through this, it provides platform for growth to business.
Innovation also leads to working in new way and gaining competitive advantage.
History of innovation
It can be said that Godin cites from 1636, when an English Puritan and former official Henry
Burton, began publishing pamphlets against church officials as innovators. Then, in 1939 Joseph
originated concept of innovation. He said it was different from others. From 1980's innovation
took lead.
Types of innovation
The types of innovation are radical, incremental, disruptive and architectural.
radical – It is a type of innovation in which new business model is developed. This means new
system or process. For example- I phone
Incremental – it is an innovation in which update is made into existing products or services. For
example- samsung
disruptive – here, it is a type of innovation in which a new market is created. For example-
Netflix
3

architectural- an innovation where architect of product is changed.
Sources of innovation
Basically 4 P’s of are process, paradigm, product and position. with this innovation can be made
in those areas . However, there are various sources of innovation which is explained below:
Process needs
It is a type of innovation whereby analyzing the market and customers’ needs changes are made
in process. Thus, new products are developed and operations process is modified. In many
businesses’ innovation is implemented just to change process by providing a new way or method
to perform operations. The change is in procedure, method, etc (Gachie and Govender,2017). It
is source of innovation as there change in process leads to new process or method. For example-
online delivery of products and services
Market and industry trend
Here, with change in industry and market trends in hospitality sector it forces organization to
bring innovation. The trends occur due to economic, political, technological factors. In addition,
due to change in market structure is also trend. Moreover, in market trends occurs in product or
services, customer needs, etc. so, it results in providing vast opportunity for business in
hospitality sector to make grow and expand via innovation. It brings out new ideas or concepts to
be implemented to develop new product, change process, etc. (Gong and Peng, 2018) It is
source of innovation as change in trend will led to new product or service development. For
example – trend of eco tourism services.
Change in perception
This is also an innovation source as it related to change in customer taste and preference. This
occurs due to ethics, values, etc. which change their perception. Thus, it allows organization to
capitalize on those change through innovation. Furthermore, innovation is implemented to fulfil
needs of people. Here, with change in perception, people lifestyle is changed (Islam 2018). for
example- change in perception of sustainable services.
New knowledge
It is main source of innovation in which new knowledge is applied in different ways. The
knowledge is in terms of technology, product feature, market trend, etc. It provides vast number
of opportunities for firms to expand and grow. Through this, they apply new knowledge in
modifying or redesigning new method or process that is used in business. In hospitality sector
4

technological advancement is new knowledge on basis of which innovation is done. This enable
in continuously improving methods to enhance business efficiency (Kim and Kim, 2018) for
example- use of robots in delivering services
New Technology
There are many technologies such as artificial intelligence, chat bots, robots and technology of
facial recognition has allowed Hilton Hotel to offer their guests a service which is convenient,
customization and give more control in the hands of employees. These technologies help hotel
such as Hilton Hotel to offer a better service and experience and saves the time of people. Gates
of the hotel open automatically and features such as AI and connectivity also allows users to
connect themselves from the phone (Korhonen, 2017). it is source of innovation as new
technology allows in use of new software and applications for example- use of artificial
intelligence in rooms.
Importance of innovation to business performance
Innovation plays a significant role in improving business performance. This is because it
provides new ways and methods of performing task and activities resulting in higher
productivity. Along with this, it helps in identifying loopholes within process and improving it.
Also, in hospitality sector services are delivered in quick time with greater efficiency. The
importance of innovation to business performance is explained below:
Competitive advantage
Innovation helps in bringing new products and services. It also leads to change in process or
methods of operations. New software and applications are used that enhances business
efficiency. Thus it helps in creating value of product or services offered. In this way, competitive
advantage is gained by organisation.. Moreover, by doing innovation it is easy to enhance
customer experience and retain them. along with it, goals and objectives are achieved in less time
with efficient use of resources (De Rosa and Mazzarello, 2018).
Increasing productivity
This is also importance of innovation for business as it helps in providing new tools and
techniques for employees to do complex task in easy manner. Besides this, it brings in changes in
process by transforming them into new way of doing it. However, innovation is useful in
reducing cost and increasing efficiency of business. This allows staff to perform functions with
5

new method. In this way goals are attained quickly and it leads to increase in productivity of
staff.
Rise in ROI
The main goal of innovation is to increase ROI by reducing cost and increasing revenue. With
help of continuous innovation, many areas are improved, and changes are made. It leads to rise
in productivity of staff and attaining goals in effective way. Likewise, organisation who want to
increase ROI implement innovation. They identify areas where there is high return on
investment. This leads to enhance in business performance and expansion in new markets
(Purchase and Olaru, 2017)
Positive culture
With innovation organisation structure is changed which leads to bringing positive culture within
employees. it allows in changing policies, people roles, method, etc. However, employees are
able to work in flexible and creative way. they find it new way to perform task and attain goals
and objectives. furthermore, strategies are formulated and applied in different way (Horng, Tsai
and Chung, 2018).
Factors driving innovation in hospitality industry
Basically, main objective of business of doing innovation is to grow and increase efficiency. It
allows in creating new ideas and concepts and developing products and services. Besides that,
processes and methods are changed to maximise efficiency. However, there are certain factors of
innovation in hospitality industry. They are either internal or external. It forces them to
implement innovation. The factors are described as:
6

Initiate new ideas- This is the main factor that drive innovation. here, company focuses on
developing new ideas and concepts that are beneficial for them. it enables in changing process or
methods so that everyone can use it. this results in setting a new way or framework that makes it
easy to be applied. However, sometimes new ideas are developed in order to solve problem or
issue. Also, new products and services are developed that allows firm to go beyond others. For
example- Starbucks develops new products of coffee and initiated new ideas as well. It has
resulted in attracting more people and rising sales and profits.
Building culture of innovation – It is also a factor in which innovation is done. here, culture is
transformed to support teams and groups. In this there are four dimensions such as people
process, policy and climate. So, innovation is done in either of these dimensions as it overall
support in building a culture of innovation. With help of it, organisation focuses on improving
employee skills and process (Rubera and et.al., 2016). For instance- McDonald's build culture
of innovation. They allow staff to work in different ways such as in team, individual, by
playing games, etc. It has led to building a positive work culture and increasing efficiency
of staff
7

Developing new process – This is a factor where innovation is done to develop a new procedure
or method which is easy for everyone to use it. The concept applied here is to redesign new
process, implement new, modify it, etc. by finding out solution of problem it is easy to solve it
by taking effective measures. This leads to maintaining progress of innovation and funding new
ideas (Walsh and Nagaoka, 2016) For example- Holiday Inn develops redesign new process
to provide hospitality services. They provide it via online, use of robots, etc. it has resulted
in attracting more people and generating revenue.
Create teams to support innovation – Here main reason to do innovation is to bring change in
way of working. It means to encourage them to do hard work by providing them new tools and
techniques. In this teams are formed of individual who possesses and share knowledge and skills
to innovate new ideas or concepts. Thus, high performing teams become part of iterative process.
(Akhundjanov and et.al. 2020) for instance- TUI create teams in order to support innovation.
There are several teams in it like customer centric service centric, etc. it has enabled in
enhancing customer trust and satisfaction
Range of innovation concept and approaches implemented in hospitality
Innovation refers new idea and changes in products which can make them attractive and creative.
There are several industries which are making their products and service innovative in order to
being in the competition and attractive customers to the great extent. In the context of hospitality
industry, it can be said that it is one of the industries whose main aim is to satisfy customer .
Trends in this industry keep changing and it is important for the industry to make changes in
their policies, thoughts and products to cope up with changes and being in a competition. There
are several approaches and concepts of innovation by which, hospitality industry like hotels,
travel and tourism companies can accomplish their goals include:
SaaS (Software as a service): Cloud and software as a service is one of the best innovation
models which has made able to hospitality sector companies to reduce information technology
related issues. This software is beneficial for small scale companies who cannot afford to invest
in in-house technical. It is one of the innovation models which has changed this industry to the
great extent and has made able to several companies able to take competitive advantages by
managing activities of organization in an efficient manner. For example- Hyatt hotels are using
this technology (Arora and et.al., 2016). They provide hospitality services like use of hotel
through SaaS.
8

Keyless entries: With the help of technology, many five-star hotels have made changes in their
policies and other things. With the help of innovation and technology, customers are allowed to
control their rooms remotely with the help of their phones and laptop. Smartphones work as like
a key which can be used as a remote control and voice command operating system. The main
aim of using this technology is to increase customers experience and make them feel valued. It
also helps companies in reducing their operational cost. For example- Marriott is using this
technology. They have installed it in room of VIP guest to allow them keyless entries.
Room service robots – it is an innovation in which robots are used to deliver rooms services.
Here, many hotels such as holiday Inn, Hyatt etc. are using robots to provide room services to
guest. This has resulted in quick delivery of services. Alongside, guest satisfaction is gained
(Gachie and Govender, 2017). For example- Hyatt uses room service robots to provide laundry,
cleaning, services, to guest.
Easy check-in: Increased technology has become easier for guests to check-in, inquire about
their rooms as-well as upgrade RFID keys. By making an effective use of advanced technology
and phones, company's official website, they can check in an easiest manner. It does not only
help local guests, but with innovation and facilities of easy check in helpful for travelers who
came for visiting destinations. They do not have to rely on guides and others as they can get each
and every detail on social media platforms (Gong and Peng, 2018). For example- Taj hotel is
using this technology to allow guest to easily check and check out.
So, from the above discussed innovation model, it can be said that technology is playing an
important role in hospitality sector especially in hotels. It is making them able to increase
number of guests every year which increases year sales and revenue and has direct impact on the
country's economy.
CONCLUSION
From report it can be summarised that innovation is new advancement in hospitality sector. In
today’s competitive business environment innovation is key of success. The different sources of
innovation are new knowledge, change in market trends, customer needs, etc. Moreover,
importance of innovation to business performance is competitive advantage, maximise ROI,
increasing productivity and many more. Furthermore, factors driving innovation are initiate new
ideas, developing new process, building culture of innovation, etc. Alongside, there are several
9

innovative concepts applied in hospitality industry like use of AI, IOT, etc. here, an innovative
concept taken is.
10

REFERENCES
Books and journals
Akhundjanov, S.B. and et.al., 2020. Commercialization of a demand-enhancing innovation: The
release of a new apple variety by a public university. Economic Modelling, 86, pp.88-
100.
Arora, A. and et.al., 2016. The acquisition and commercialization of invention in American
manufacturing: Incidence and impact. Research Policy, 45(6), pp.1113-1128.
Gachie, W. and Govender, D.W., 2017. Commercialization of higher education institutions’
research within the National System of Innovation. African Journal of Science,
Technology, Innovation and Development, 9(4), pp.387-397.
Gong, H. and Peng, S., 2018. Effects of patent policy on innovation outputs and
commercialization: evidence from universities in China. Scientometrics, 117(2),
pp.687-703.
Islam, T., 2018. Decision Criteria for Technology Commercialization of Medical Devices.
Kim, H. and Kim, E., 2018. How an open innovation strategy for commercialization affects the
firm performance of Korean healthcare IT SMEs. Sustainability, 10(7), p.2476.
Korhonen, R., 2017. NETWORKED COMMERCIALIZATION OF MEDICAL
INNOVATION–PERSONALIZED MEDICINE.
Latif, N. and et.al., 2019. Concept to Commercialization–fostering innovation through
university resources.”.
Miller, F.A. and French, M., 2016. Organizing the entrepreneurial hospital: Hybridizing the
logics of healthcare and innovation. Research Policy, 45(8), pp.1534-1544.
Purchase, S. and Olaru, D., 2017. An analysis of technical and commercialization paths for an
innovation trajectory. Journal of Business & Industrial Marketing.
Rubera, G. and et.al., 2016. Open innovation, product portfolio innovativeness and firm
performance: the dual role of new product development capabilities. Journal of the
Academy of Marketing Science, 44(2), pp.166-184.
Walsh, J.P and Nagaoka, S., 2016. Openness and innovation in the US: Collaboration form, idea
generation and implementation. Research Policy, 45(8), pp.1660-1671.
Online
Sources of innovation, 2016. [online] Available through :
<https://notesmatic.com/2016/09/sources-of-innovation/ >
Factors driving innovation, 2017. [online] Available through : <
https://newandimproved.com/2018/10/05/top-10-drivers-innovation/ >
11