Innovation and Creativity Management in Hospitality and Tourism

This study material discusses the innovative approaches and potential barriers to innovation in the hospitality industry, with a focus on Flyzoo, a leading hotel in China. It applies business model innovation and frugal innovation models to enhance the hotel's effectiveness. The study also covers Ansoff's model and strategy canvas to help the hotel expand its customer base and increase profitability.

INNOVATION AND CREATIVITY
MANAGEMENT IN HOSPITALITY AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Applying appropriate models & theories that justify how and why hotel can be regarded as
innovative.....................................................................................................................................3
Barriers that Flyzoo has or may encounter..................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation and creativity management are two different terms, but effective in varied
manners. As innovation is defined as procedure of innovating something new such as a product
and service that help of enhance customer satisfaction in the hospitality sector. While creativity
management refer to set of activities, actions and practices for which skilled administrative team
is accountable in the same market. The current assignment will be based on Flyzoo, which falls
under the category of leading hotels in the China. It operates within one of those sectors that has
obtained a lot of benefits, just because of offering and providing satisfactory products & services
to individual person. Hospitality industry is recognized for its leisure or luxury services that help
to retain and gain the attention of new target audience. The study will explain how innovative the
chosen hotel is and potential barriers to innovation that it may experience, while operating and
running venture within hospitality sector. In the context of chosen hotel, business model
innovation, and frugal innovation models will be applied.
TASK
Applying appropriate models & theories that justify how and why hotel can be regarded as
innovative.
Innovation is the key aspect of business success and growth in the corporate world, as it
make an entrepreneur or a company capable to reach desire outcomes effectively
(Bandyopadhyay, 2008). It gives companies power to sustain for longer in the market, where
they established ventures in appropriate manner, by following and conducting ethical terms. In
the business world, there are different types of innovation models accessible that applied and
utilized by varied companies, whether it is tourism, retail or hospitality. Business model
innovation is considered as art of creating value and enhancing advantage in term of making
simultaneous (Tourism and Innovation, 2008). It encompasses four different types of approaches
that play vital role to make a company successful such as Flyzoo. Each approach defines below;
Re-inventor approach-
This method take place in light of a fundamental sector challenge such as new
legislations and commoditization, in which a company is deteriorating slowly and where success
prospects are limited (Maital and Seshadri, 2012). In that case, organizations reinvent their
consumers value proposition and also realign their operations to effectively and appropriately
deliver on new satisfactory offerings. It can be said that the implication of this approach in

chosen hotel context, contribute to enhance its effectiveness in term of innovation. As it has
taken action to serve accommodation and other types of hospitality services by using AI
technologies such as Robots.
Adapter approach-
The current method also apply and utilize when core ventures, even when reinvested are
unlikely to combat basic disruption. It had enable an adapter to explore adjacent ventures and
markets, which is important for them to do that (Innovation Management and New Product
Development, 7th Edition, 2017). It drives their attention toward building an innovation engine
that help to drive experimentation successful new core element. Flyzoo had regarded as
innovative as it utilized the current approach in appropriate and systematic manner. It had driven
its concentration toward finding a new way that successfully exploit its essential venture
expertise to break into existing & new markets in form of using artificial intelligence.
Maverick approach-
Along with above two methods, the current one also fall under the list of business model
of innovation techniques, that here apply in regard to Flyzoo. It deploys venture model
innovation to level up the potential of hotel more successfully and appropriately. It enables firm
to continually evolve competitive benefit and gain the same by using advanced technologies like
robots that help to serve on time services to each guest (Towards a Multidisciplinary Definition
of Innovation, 2011). As it helps to enhance competitive environment in the market that enable
other firms to grow rapidly.
Adventurer approach-
Like other approaches of chosen model, the current approach also enable hotel to take
pleasure of excellent performance and success as recognition of innovative hotel in the
hospitality industry. As it helps to aggressively explore footprint of venture in term of exploring
into a new market by using advanced technologies that required better comprehending of
innovation need in the current competitive business environment.
Frugal innovation is also considered as strategic innovation framework, that drives the
attention of company toward conducting those activities that enable it to be regarded as
innovative, which is quite essential & beneficial for its rapid success in the China (Tidd and
Bessant, 2020). It covers some core elements that Flyzoo consider and become an innovative
hotel in the market and these are the following;

Low cost/ affordability-
This approach enable hotel to innovate something new and utilize the same, without
investing too much in the context of same. As it allow firm to utilize robots and other AI systems
that help to make everything under control in form of managing customers services, payment
modes, procedures and food or other types of products delivery services directly to guests, who
may order that and expect to obtain on time (Chesbrough, 2007). By conducting this practice
firm regarded as innovative as still in the hospitality sector where most of the hotels do not have
that, which is not suitable for their ventures growth.
Value creation-
Another step of frugal innovation model is current one, which specify the value creation
importance and consideration regarding the same by the Flyzoo, that operate in China and
establish venture within hospitality industry. By considering this phase, hotel become an
innovative brand as it take efforts to address customers and business growth needs in the recent
time, when people expect too much from hospitality organizations. They expect to obtain benefit
of online services in form of booking, or reservation that help to save time and their efforts as
well.
Simplicity-
Flyzoo can be regarded as innovative as it utilize those technologies that is quite easy to
use and understand by the guests, who tends to explore the varied destinations such as China,
where the technology utilization change human life. Hotel taken approach to use simple and easy
resource that make overall experience for guest memorable. It can be said that simplicity term
drives the organization and management attention toward understanding importance of core
venture operations utilization for which technology utilization is important as it helps to make
Flyzoo innovative.
Use of fewer resources-
There are different types of approaches and actions accessible in the corporate world that
make Flyzoo capable to become an innovative hotel in the market, which play crucial role in its
success and unpredictable growth as compare to other companies. As it utilize few resources that
help to remind it as innovative. Instead of using human resource, hotel takes initiative to use
robots and other systems of AI, in order to serve food services and continue with process of
money transfer.

Development from scratch-
It is another stage or approach to frugal innovation model that enable firm to become an
innovative hotel by taking efforts to develop something new from unusable materials like bin,
etc.
In the hospitality industry, Flyzoo had established its excellent brand image that help to
retain potential guest and also contribute to attract new. It might be regarded as innovative,
because of using robots and Alibaba's endeavour that aid to marry hospitality and tourism with
technology. It has utilize advanced technologies and systems that help to build firm and allow
growing rapidly. There are different forms of examples present in the recent time that enable
hotel to regard as innovative. For example, instead of using keys and smart card to enter into a
room, it offers people facial recognition facility that help to enter or exit room without touching
any assets. As it is quite easy for all the guest to lock and unlock their rooms, and keep their
privacy. Flyzoo become an innovative hotel and respect in the hospitality industry by referring
the same term, as it used the best and most advanced AI features, which aid to enhance
customers satisfactory level, even better than last few years or months in the China. It performs
well in the overall industry in term of starting with mobile application named Flyzoo, that
majority of tourist utilized in order to book accommodation service, compare rooms with other
hotels services and to select which room is better for them to spend time with family and friends.
Innovation is the best sources that firm utilized and taken into its consideration in form of
implementing advanced systems and technologies like mobile application, robot for room
services, etc. It always enable hotel to stand competitive and stay ahead in the market, where
different types of factors exist and put negative impact on its venture success that is quite
essential. It is fact that usage and implementation of technologies like robots, enable Flyzoo
capable to recognize as innovative. Flyzoo mobile application had feature a range of AI powered
services that aid to create convenient, leisure and seamless experience for each guest, who are
able to promote venture successfully in the market by conducting word of mouth promotion. In
the sector, organization had generated significant buzz with its newfangled effectiveness and
capabilities, that covers each and everything from facial consideration technologies, which allow
guests to take pleasure of in room robotics to further generation mobile applications that people
prefer to use for multiple reasons.
Strategy canvas-

It is one of those strategic tools that utilized by the varied companies for purpose of
comparing goods factors that a sample of incumbent items compete on, based on value that a
specific customer segment obtain from them or by using that.
Factors of competition-
The quality of products and service standard is the best example of factor of competition
that enable Flyzoo and its rivals such as Four season hotel. This factor may drive the attention of
both companies toward competing with each other on the basis of several things that support to
increase competitive environment in the market or hospitality industry (Khanmohammadi,
Zandieh and Tayebi, 2019). Advanced technology utilization is also considered as competitive
force or factor for both chose hotels that affect the way they may give tough competition to each
other.
Receive offers across each factor-
The above two factors may enable customers to take pleasure of increasing their
satisfactory level, because Flyzoo due to competition may offer buyers extreme level of value. It
Illustration 1: Strategy Canvas
(Source: STRATEGY CANVAS, 2022)

may support to increase profitability and generate revenue more than rivals, which is quite
essential and beneficial too for venture growth and success in the market. It may lead to increase
sales and build excellent brand image in the hospitality industry.
Flyzoo and rivals strategic profile & cost structures-
For purpose of customer satisfaction enhancement and increasing profitability, Flyzoo
may take initiative to set its profile such as products and services in influencing manner as its
rival may do not have that. The best thing in strategic profile of chosen company is technology
utilization in form of robots, which is not included in Four season hotel strategic profile. Another
thing that make both hotels their rivals is cost structure, which is quite different from each other.
Ansoff's model-
Market penetration-
Flyzoo may utilize this strategy, which drive its attention toward increasing existing
customer base and their satisfaction, level within effective manner, which is important and
beneficial for organizational continuous growth (The Ansoff Matrix, 2022). It may enable firm to
focus on expanding sales of existing services and products in hotel. By conducting this practice it
may obtain desire outcomes.
Product development-
The current area is slightly more challenging, because when organization introduces a
new item into existing market, it may encompass risk of rejection or no-consideration. Thus, it is
important for Flyzoo to develop any product or plan to offer service, by considering the current
market trends that impact decision-making and process of accommodation service offerings
appropriately.
Market development-
The current term may drive the concentration of Flyzoo toward entering into new market
with existing services and goods that contribute to enhance customer satisfaction and increase
profitability. With utilization of market development strategy, organization may obtain desire
results in form of building strong and influencing market image of venture.
Diversification-
The last and most complex strategy that encompasses in the model of Ansoff's matrix is
current one, according to which Flyzoo may take right to enter into new market with new service
and products. It may enable company to take pleasure of increasing profitability, on the other

hand may affect negatively upon its success when the products and services customer are unable
to accept.
Barriers that Flyzoo has or may encounter.
While taking initiatives to become an innovative company in the hospitality and tourism
industries, Flyzoo may experience some negative aspects or encounter certain challenges as
critical barriers that may put direct impact on its performance, sustainability and productivity.
Technical issues-
It is one of those issues that firm may encounter to grow and obtain desire results, which
is important for its management to do so systematically and in effective manner. It is fact that
when a company utilize advanced technologies or plan to do that, it may deal with certain
challenge and technical issues is one of these. It may lead to increase work pressure on
management and drive their attention toward using key approaches that aid to solve the same
issue before it get worst and affect customer services negatively. It may affect performance and
productivity level of Flyzoo, which is not acceptable and expected from it. It may create more
challenges or obstacles for company to progress in the competitive business world, which is
quite essential for it to do that, instead of taking step back. Just because of some technical issues
guest may do not get access to enter or exist out of their room that put negative impact on brand
image.
Lack of collaboration and coordination-
Another barrier that lead to decrease organizational performance and operational
effectiveness is current one, according to that it may do not run its venture with advanced
technologies and implement the same. The main reason behind this situation is ineffective
collaboration & coordination between management and employees whether they are low, or mid
level. It is fact that without having better coordination with others, hotel may do not take
pleasure of using each technology like facial recognition that affect customers experience and
satisfaction level. It can be said that collaboration is the key or success factor of innovation as it
enable firm to become an innovative brand in term of serving services via AI technologies,
whether it is check in or out as well as food serving from cooking area to guest room. It is
essential to have collaborative environment in the workplace, where different types of people as
a skilled employee are working.
Lack of knowledge-

Another challenge or barrier that affect negatively upon Flyzoo is knowledge that people
may do not have about how to work with artificial intelligence as robotic technologies. It is
important for individual candidate to have appropriate understanding about each technology that
management may plan to or already implement in the hotel, which contribute to increase their
venture performance more than their rivals. When they do not work with new technologies
because of not posing any knowledge about that, it may affect the way they work and effort to
achieve strategic aims in the hospitality industry. Along with above, hotel may also encounter
this challenge as well, which help to give tough competition to rival in form of using advanced
features tech, that improve organizational performance and increase its productiveness, that help
to gain competitive advantages and increase number of customers.
Poor resources-
Along with above three barriers, Flyzoo may also deal with the current barrier as well in
systematic and appropriate way, because of sustaining in the hospitality and running venture in
competitive manner. Technology implementation may require some useful and additional
resources such as smart IT team, among which skilled, experienced and knowledgable candidates
perform their role productively. Due to lack of IT expert, hotel may do not survive too long with
AI technologies as it may lead to minimize its operational effectiveness that management may
attempt to increase by developing strategies and applying varied plans. Firm may deal with poor
resource a key barrier in form of hiring expert who may know and excellently understand overall
system of robotic services. The requirement of essential and useful resources is important for
hotel management to consider.
Employees resistance-
The biggest challenge or barrier that Flyzoo along with above barriers attempt to amend
is employees resistance to accept any form of innovation such as usage of AI technologies that
lead to put impact on their jobs negatively. As most of the candidates due to this reason may lose
their jobs, which is not good for their career and success in the job market. It may affect the
growth and success of their personal as well as professional career. Without acceptance of new
technologies by the candidates, firm may do not run its venture for too long in the market that it
may tend to do so in successful manner.
Effective strategies formulation may allow hotel to gain all the benefits that it may plan
to grab without facing major challenges or any barriers that affect its productiveness.

Push and Pull-
The current term refers to a strategic distribution tactic that direct Flyzoo promotional
route to market, either international or national (Jiang and et.al., 2021). Push and pull strategy
defines those factors or forces that put direct impact on promotional activity of company and
final outcomes that organization expect by using that tactic.
Push strategies-
Social media promotion is the best technique that Flyzoo and its marketer may adopt,
which enable them to gain the attention of new customers, who may purchase their products and
utilize accommodation services (Zhang and et.al., 2018). With this strategy, organization may
take pleasure of increasing profitability and productivity as well as enhancing customer base,
which is not that easy for any company to do that. Intense competition in the market also
considered as push strategy, because it may drive Flyzoo toward adopting new technologies
which enable to increase sales and enhance customer satisfaction level.
Pull strategies-
Word of mouth referral is the best example of pull strategy, that enable company to
take pleasure of motivating potential buyers and gaining their attention toward entering to hotel
where they may gain benefits of obtaining services from robots (Helmus and et.al., 2018). This
strategy may enable company to active the process again, in form of quality products and
satisfactory services that it may plan to offer to target people.
CONCLUSION
By summing up above discussion, it has been summarized that innovation has played
significant role in the context of organizational growth and success in the hospitality industry.
Hotel had utilized frugal innovation and other types of approaches to remain innovative in the
market and to increased its performance and productivity level, even better than the other hotels
in the market that had given tough competition of it. It has been determined that application of
effective innovation models enabled management to take pleasure of enhancing customer
satisfaction and also gain benefits of acquiring more, that aid to increase profitability, generate
revenue as well as support to gain competitive advantages, which is quite beneficial for
company. Furthermore, from above analysis, it has been concluded that by developing effective
plans and utilizing key approaches, hotel and its management successfully encounter and deal
with each form of barrier.

REFERENCES
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Helmus, J. R and et.al., 2018. Assessment of public charging infrastructure push and pull rollout
strategies: The case of the Netherlands. Energy Policy. 121. pp.35-47.
Jiang, G. and et.al., 2021. A “push-pull-restrain” strategy to improve citronellol production in
Saccharomyces cerevisiae. Metabolic Engineering. 66. pp.51-59.
Khanmohammadi, E., Zandieh, M. and Tayebi, T., 2019. Drawing a strategy canvas using the
fuzzy best–worst method. Global Journal of Flexible Systems Management. 20(1). pp.57-
75.
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for growth and profit. SAGE Publications India.
Tidd, J. and Bessant, J.R., 2020. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Zhang, C and et.al., 2018. Push and pull strategies by component suppliers when OEMs can
produce the component in-house: The roles of branding in a supply chain. Industrial
Marketing Management. 72. pp.99-111.
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