Concepts and Innovation in Hospitality Unit 38

This report discusses the concept of innovation in the hospitality industry, its sources, and approaches to implement it. It covers key factors driving innovation in the hospitality industry, the role of innovation in enhancing organizational performance, and more. The report also includes the subject, course code, and college/university name.

Concepts & Innovation in
Hospitality

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The innovation and it's sources in company performance..........................................................3
Importance of innovation ............................................................................................................4
Major elements influencing hospitality sector innovation...........................................................5
The approaches of innovation to hospitality business.................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation in hospitality is the continuous process in which a new method or idea is
being introduced in an organization to keep updated and make a position in the competitive
market. Hotel industry can adopt certain innovative ideas for its establishment in order to make
their products and services most efficient for the betterment of the society and the firm as well.
Technology innovation in the hospitality industry improves the guest experience and create more
satisfied customers. Innovation leads to enhance the business by increasing the overall profits.
This report will describe the concept of innovation and development in organization and their
significant to enhance the organization performance along with the key factors that drives to
innovation in the hospitality industry. Apart from this, the study will include the role and
importance of innovation to hospitality businesses along with the ways in which innovative
concept is being formulated.
MAIN BODY
PART A
The innovation and it's sources in company performance
Innovation leads to creation of new idea and then been transformed into practical reality.
By innovating with the latest ideas and technology can make the hotel industry to offer
something new for their customers. Trying to make the food services business more cost-
effective and time-efficient while also rendering it more competitive internationally, innovation
is transforming the industry and powering it up to provide the perfect blend. It is frequently
stated that innovation occurs when imagination and ambition collide. The country 's culinary
services business follows the same logic. (Gil and Ritchie, 2017).
According to Peter Drucker's their are seven sources of innovation that provides with the
opportunities and mitigate the risks. The sources are discussed below in context for innovation -
Unexpected - The innovations often arrive unexpectedly such as fire is uncertainly arrive in
normal course of human activity.
Incongruity- It is state of innovation when the need is inappropriate with the supply. Innovation
derives gradually with the need such as the increasing population has emerged the demand of car
parking. For this, smart car can fill the issue by parking in small spaces.

Market Structure - Sometimes existing market structure also leads to innovation. Earlier the
search engines were not appropriate so google took the advantage and has shaped the search
engine market.
Necessity- Innovation relies on the necessity and demand of customers such as microscope was
develop to microbial world. This innovation helps the world to understand small observation in
appropriate way.
Demographics-Our living standards can also emerge as a source of innovation. The emergence of
e-cigarettes which has satisfy the human lifestyles. However, it is injurious to health.
Changing Perception- The change in thinking and perception of human being had also give birth
to innovation. Earlier the people who are overweight are state as unhealthy which gives new
innovation of healthy food and low calorie foods to the market.
New Knowledge- By new innovative idea and the basket full of knowledge can be also a source
of innovation. Such as innovation of nano-technology, bio technology and artificial intelligence
are new knowledge in area is a source of innovation.
Importance of innovation
As time changes every company should also change their company technology with the
time. As an innovation of food and service company will bring new concept which is mixture of
alternative protein and nutraceuticals this is very new concept in the country this concept will
surely working because of the recent pandemic as people are more conscious about their health
and hygiene of food and service that's why the hospitality industry need more attention to their
organisations and make them innovative and apply new technology to the industry. Hotel sector
innovation is vital since it has the potential to positively alter the industry. Inventions in the hotel
sector have advanced at a rapid rate in recent years (Manning, 2018). Despite the fact that most
network operators and hospitality-related businesses are still doing utmost best to maintain with
these quick changes, modern tech has aided the industry's growth.
Creative development:- Artificial intelligence (AI) and machine learning are poised to elevate
customer support in the hotel industry in the next years. Personalization to previously
unimaginable levels becomes a reality. Machine learning and artificial intelligence (AI) would be
used further in the hotel business and other areas of hospitality to help understand and service
consumers. All of the hospitality firms want to commoditize these technology for mass use.
Customers demand more personalization when it comes to the use of VR and AR in the hotel

business. As a new company in this sector (Tajeddini, Martin, and Altinay,2020). The company
will surely use all of this technology and or more new technology for betterment of the company
and starting something innovative. As Many hotels currently use robots for a variety of
functions.
Continuous Improvement:- They are astute, unobtrusive, and entertaining to watch. While it is
unfeasible and unwise to replace humans with machines in the service sector, these robots do
assist to improve quality of customer service. They can also work at unusual hours and take on
more work without complaint. Another invention that is expected to become a fact in the years
ahead is the autonomous auto mobile. and the firm will eagerly await the implementation of this
in the new company. Driverless auto mobiles would make it a more private experience for
families that do not want a driver invading their privacy. This would be very beneficial in large
resorts.
Responding to Competition and Trends:- Hospitality industry has a very vast diversification,
now a days hospitality industry has been changing because of the changing environment and the
customer changing behaviour. Businesses always looking for a new opportunities and create
something new innovative in their industry. As an start-up the main aim of the organisation is to
create a environment that Gen Z and old age people both like because there are so many concept
that industry's applied on their organisation for attract the consumer but they does not fulfil the
whole requirement of the both Gen z and old age that's why the new start-up will bring the new
innovation for both of the generations.
There's a disadvantage of the technology in the recent times as technology increases the hotel
industry become more smart online bookings, easy check in- check out through internet.
Especially for the younger generation. But because of this unemployment is increases in human
beings because of the technology organisation prefer technology over the personnel. New start
up will give the opportunity to the people with their best skills can apply for work in a
organisation.
Factors driving innovation in hospitality insdustry
Technology, e-commerce, and the experiential industry are all themes that are
transforming the hospitality sector. Maintaining up with the newest trends is vital these days, as

the sector is very dynamic and continuously on the lookout for the finest method to serve the
visitor. for an start-up it is also essential to come up with the latest trends.
Diversity:- in hospitality industry their are several business that is also included are like theme
park, lodging facility, restaurant etc. because of the diversification in the hotel industry there are
people who is affecting for eg; organisation stakeholders, their customers and investors.
Sustainability:- With changing climate dominating the news these days, sustainable is a
significant trend in all businesses, including leisure. Sustainable travel trips with little
environmental effect will become increasingly popular. There is a significant increase in tourists
who want to decrease their carbon impact and seek for adopting sustainable alternatives. Startup
will bring this up.
Technology:- Big data was a popular phrase for some time, yet it still jeopardises one of the
most important aspects of hospitality. Big data is not widely used in the hospitality sector, but it
has managed to grow rapidly in recent years, aiding hoteliers in more appropriately anticipating
demands for luxury hotels, trying to improve customer experience, and aiding those from the
hospitality sector in more implementing effective their promotional materials. For an start-up it
also important to maintain big data and applying this to the company. The rise of robotics is an
exciting development in the hospitality sector. To reply to consumer inquiries, voice recognition
and artificial intelligence are used. There are several more applications for robots in the food
and service industries. This new robot technology will be introduced by the firm, particularly in
the food sector. For example the adoption of AI robot by Hilton which is known as Connie. In
this the robot tells guests about nearby tourist attractions, famous places to eat and all necessary
about hotel information. Connie is designed to learn and adapt the humans t it will interact more
effectively in the future.
Strategic innovation:- It is essential in an hospitality industry because innovation in industry
will impact the stakeholders of the organization and the outsiders investors also(Jones, Hillier,
and Comfort, 2017). In strategic innovation the future strategy is also essential the co- creation
of the brands of organization with the consumers. For example: the holiday Inn holiday who are
giving the experience to their customer of the technology and the advancement by which their
customer feel privileged and see the enhancement and the organization using the AI and
application which will support their internal system in order to maintain the management and
operation of the organization.

Hospitality industry need to connected with the people through various channels and
digital marketing because now a days this is very famous trend to do the marketing of the
organisation and anything. For best marketing industry need to do a greater retention in their
consumer mind start-up will also doing something innovative in their marketing strategy to make
the customer more attracted towards the organisation. Blogs is the essential to key for any
marketing the content for the organisation is the best strategy to attract the people it's about hoe
company will describe about them in a precisely manner. Start-up will also conclude the sharing
economy concept in which the home away like airbnb and house trips etc. included because of
these innovation consumer will surely attract towards the organisation.
As customer demands changes rapidly where organisation reputation and the demand of the
consumer is essential after that the organisation need to change their infrastructure a little bit for
that the start-up will change their concept in every three year with that whenever a visitor will
visit again they always found something new and they will not get bored of the location and the
ambience of the organisation. There are customer preference risk will also there. The customer
always look forward for something new and that's why they attract towards a technology. There
will be a risk of new regulation in an hospitality industry mainly. For some personnel the new
regulation will be comprehensive. There's a lot of things in workers like union leaders and all the
organisation must need to full fill their demand and maintain the wage rate.
The approaches of innovation to hospitality business
Innovation in hotel industry will lead to generation of innovation and technology which
determine the industry to generate the new start, and real experience to customers. Their are
various factors that may influence recent innovations in hospitality such as advancement in
technology that impacts on internet marketing and distribution (Martín-Rios and Ciobanu,
2019). Thus innovation in hospitality industry is essential because it allows to add value in the
hotel so that it will increase the overall profits. With the concept of globalization and a rapidly
changing market, innovation helps to stay ahead in the cut-throat competition among others.
Innovation is a key part of owning a successful hospitality business in following ways:-
Innovation by company culture:- as world is rapidly changing and also technology evolving.
Now a days the organisations is evaluating faster than ever before. The goal objective and goal

oriented company and their leader, supervisor are the one who will success the culture of the
organisation.
Innovation driven by Design- Innovation drives the needs according to the latest demands like
many companies for their business meeting are preferring conference halls with proper setup of
projectors leads to innovation. The Best design in the industry explain the performance of the
organization by they will analyse the stability of the organization.
Innovation driven by Consumer Need state - As changing preferences of consumers leads to
innovate something new to hotel industry. Costumers are preferring destination wedding which
requires appropriate halls and garden within the hotel so they can accomodate with great
experiences.
Innovation driven by Creative Thinking- The creative thinking leads to think something
unique such as guests are more preferable to use technology such as contactless payment in
which by using apps the customers can easily make payments without involvement of human
resources.
Innovation driven by customer review- customer reviews is also important for the hospitality
industry because it is essential for both of them. the industry as well as for those customer whose
willing to visit in a hotel(Perepelytsia, and Yurchenko, 2019). Online review is also very helpful
for an start-up it gives an random acknowledgement about the competitor and their customers. If
some competitor have lack of capabilities to full fill their customer demands therefore this will
bring a negative impacts and the negative reviews of the organisation. Therefore customer
reviews having a great impact on company branding.
Customer retention improved by hospitality of customer:-There are so many ways for an
organisation to maintain their business status for their customers. As offer them an extraordinary
hospitality service and the quality of the service provided by the organisation to the
customer(Kallmuenzer, 2018). The hospitality industry which give the customer great ambience
and with mouth publicity from their customer it will be benefits for them.
The Hospitality Business's Role delves into the growth of the hospitality sector as well as
the ties that exist among hospitality professionals, their households, and the visitors that they
serve. By concentrating on the social side of the company, hotel operators will have a better
knowledge of the human connections challenges that they or their workers may encounter, as
well as how company services influence visitors. The Position of the Hospitality Industry covers

a wide range of topics related to the advancement of the vocation for both employees and guests,
including profound spiritual regulations of hospitality; personnel management and collaborate
issues of sector employees; user and family demands(Nikolskaya,and et.al 2020). and marketing
techniques for hospitality organizations. Thus innovation in the hotel industry will leads to
growth and development of overall country. Furthermore, company will concern that impact both
visitors and the firm as an employer or manager, such as:
Responding to tourists' desire for a "residence away from family.”
engaging with tourists' health and social concerns. Understanding people' shifting eating
preferences and their influence on the hospitality sector. Analysing people usually unfavourable
attitudes about service and hospitality workers. Managing a profession in hospitality with a
family life. Investigating the regularity (Horng, And et.al., 2018)of fast food usage by older
individuals and the relevance of hospitality amenities to older adults in order to identify if
services require improvement. Safeguarding staff from overbearing visitors.
CONCLUSION
Summarize report conclude the information about the hospitality industry in which it
will provide more new opportunities to investors as it is beneficial for both the customers and
hotel industry. It leads to virtual communication, reservations and smart guest services.
However, technology has helped the hospitality industry in eliminating the expensive human
labour with technological labour. The report described the concept of innovative idea and its
importance for business performance. Further the study defined the key factors which helps in
smooth flow of something newly introduced in the hospitality industry. It also clarifies the role
and importance of the idea and summarizes the feasibility of the concept that needs to be applied
into hospitality industry for their expansion and growth.

REFERENCES
Books and Journals
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Routledge Handbook of Hospitality Marketing (pp. 585-598). Routledge.
Manning, L., 2018. The value of food safety culture to the hospitality industry.Worldwide
Hospitality and Tourism Themes.
Nikolskaya,and et.al 2020. Formulation of development strategy for tourism and hospitality
industry. International Journal of Management (IJM).11(3). pp.467-474.
Perepelytsia, A. and Yurchenko, Y., 2019. Modern hotel tecnology trends for hospitality
industry. Вісник Харківського національного університету імені ВН Каразіна.
Серія: Міжнародні відносини. Економіка. Країнознавство. Туризм. (9). pp.197-
202.
Salazar, A., 2018. Hospitality trends: opportunities and challenges. Worldwide Hospitality and
Tourism Themes.
Backman, M., Klaesson, J. and Öner, Ö., 2017. Innovation in the hospitality industry: Firm or
location?.Tourism Economics. 23(8). pp.1591-1614.
Horng, J.S. And et.al., 2018. Developing a sustainable service innovation framework for the
hospitality industry.International Journal of Contemporary Hospitality Management.
Jones, P., Hillier, D. and Comfort, D., 2017. The sustainable development goals and the tourism
and hospitality industry.Athens Journal of Tourism. 4(1). pp.7-18.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
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innovation behavior and intellectual capital.International Journal of Hospitality
Management. 66. pp.13-23.
Martín-Rios, C. and Ciobanu, T., 2019. Hospitality innovation strategies: An analysis of success
factors and challenges.Tourism Management. 70. pp.218-229.
Naumov, N., 2019.The impact of robots, artificial intelligence, and service automation on service
quality and service experience in hospitality. Emerald Publishing Limited.
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industry: The mediating role of human capital. Tourism and Hospitality Research.
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Tajeddini, K., Martin, E. and Altinay, L., 2020. The importance of human-related factors on
service innovation and performance.International Journal of Hospitality
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