Hospitality Innovation and Concepts

Hospitality innovation and
concepts

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Innovation concept and different sources of innovation.......................................................3
P 2 Importance of innovation to business performance...............................................................4
M 1 Evaluation of contribution of innovation’ to business performance and benefits that can
gained from it...............................................................................................................................5
LO2..................................................................................................................................................5
P3 Analysis of the factors driving innovation in hospitality industry.........................................5
M2 Analysis of advantage and disadvantage of factors driving innovation in hospitality
industry........................................................................................................................................7
LO 3.................................................................................................................................................7
P 4 Different innovative concepts and approaches that have been implemented in the
hospitality industry......................................................................................................................7
M 3 Evaluation of a range of innovative concepts and approaches within the hospitality and
analysing the extent to which they have added value..................................................................8
LO4..................................................................................................................................................9
P5 Innovative concept for the hospitality industry that has market potential and feasibility......9
P6 Pitch an innovative concept..................................................................................................10
M4 evaluation of market potential of innovation in terms of customer alignment and financial
return..........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation can be simply defined as a process or an idea of innovating something new.
Innovation has brought various kinds of changes in hospitality industry (Kahn, 2018). In fact, in
hospitality industry adoption of innovative concepts and approaches have become a necessity as
it has increased overall expectations of their customers in terms of provision of products and
services. This assignment will lay emphasis upon concept of innovation in hospitality industry
and provide details of Innovation concept and different sources of innovation, analysis of the
factors driving innovation in hospitality industry, innovative concepts and approaches that have
been implemented in the hospitality industry, and pitching of an innovative concept.
Organizations focused upon in this assignment is Hilton. It is an international hospitality
organization that has their hotels and resorts in approximately 6250 locations.
LO 1
P 1 Innovation concept and different sources of innovation
Innovation concept can be defined as a process introducing or implementing new ideas or
methods. It helps in finding different ways of doing a certain task or inventing new products or
services with new or different features. Innovation has become one of the most important things
required to be focused upon by companies in order to sustain within the market in which they
operate. It can also help a firm in gaining competitive advantage and achieving success. There
are various sources of innovation that can help an organization in achieving success. Perter
Drucker’s has explained seven sources of innovation, that are:
 Unexpected: One of the most common sources of innovation is an unexpected success or
failure (Arfi, Hikkerova and Sahut, 2018).
 Incongruity: Many times, firms develop their products and services without actually thinking
about incongruity (Tonț and Tonţ, 2016). Without doing market research organizations
cannot identity what their customers actually want. Development of products without market
research can lead a company towards downfall or failure. But this downfall can be a great

source of innovation as it can help the organization in knowing needs and requirement of
their customers in a much better manner.
 Market Structure: Sudden change in market structure can also bring various kinds of
opportunities with then that can help in innovating something new.
 Process need: Most of the innovations or invention is done because of necessity (Turriago-
Hoyos, Thoene and Arjoon, 2016). Necessity of bringing change within internal or external
process of company can lead to development of innovative solution that can not only helps
company in bringing necessary changes within required process but can also help in
innovating something new.
 Demographics: if demographics changes then it can result in change demand of product and
services because of which new opportunities can emerge for company. Like in hospitality
industry, requirement of 24*7 customer service gave rise to development of application
where online website or application that can be used by customers for booking required
services.
 Changing perception: It is one of the most common sources of innovation as change in
perception can become a source of innovation. For example: today customers prefer more
environment friendly hotels. This gave rise to increasing usage of products that uses
renewable energy like solar heaters.
 New knowledge: it is one of the best sources that can lead an organization towards success.
New knowledge areas such as artificial intelligence, bio technology etc. are great source of
innovation.
P 2 Importance of innovation to business performance
Innovation is one of the most important factors that can affect overall business
performance in both positive and negative manner. It can not only help in increasing success
chances of organization, but can also help in enhancing overall productivity and performance of
a firm. Focusing upon innovation can also help a firm in expanding their overall business in new
market segment as well. Some of the main reasons or factors that can help in explaining
innovation importance for business performance are as follows: Innovation can help in