Analyzing Innovative Concepts in the Hospitality Industry (Unit 38)

This report provides a comprehensive analysis of innovation within the hospitality industry, focusing on its concepts, sources, and significance to business performance. It explores the factors driving innovation, such as market changes, technological advancements, and the importance of creating a culture that supports new ideas. The report delves into various innovative approaches, including entrepreneurship, new technologies like AI and robotics, and their impact on enhancing guest experiences. It uses the example of Premier Inn to illustrate how companies can gain a competitive advantage, maximize ROI, increase productivity, and positively influence company culture through continuous innovation. The conclusion summarizes the effective strategies used by Premier Inn and the importance of research and development in staying ahead of market trends. This assignment is a valuable resource for students studying hospitality management, offering insights into how to develop innovative strategies and adapt to industry changes. Students can find this and similar reports, past papers, and solutions on Desklib.

AN INNOVATIVE
CONCEPT FOR THE
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1.............................................................................................................................................3
P 1 concept of ‘innovation’ and different sources of innovation .....................................3
P 2 Importance of innovation to business performance....................................................4
LO 2 ............................................................................................................................................5
P 3 factors driving innovation in the hospitality industry .................................................5
LO 3.............................................................................................................................................6
P 4 Range of different innovative concepts and approaches.............................................6
LO 4 ............................................................................................................................................7
CONCLUSION............................................................................................................................7
REFERENCES............................................................................................................................9

INTRODUCTION
Innovation in its modern meaning is a new idea, creative thoughts, new imaginations in form
of device or method. Innovation is often also viewed as the application of better solutions that
meet new requirements, unarticulated needs, or existing market needs. This report covers
issues such as concept and sources of innovation, importance of innovation, factors driving
innovation, range of different innovative concepts and approaches, Innovative concept for the
hospitality industry.
LO 1
P 1 concept of ‘innovation’ and different sources of innovation
Innovation refers to thoughts which are creative, developing new ideas, imaginations which
can help to revolutionize and through new methods. It is seen as solutions which are better and
helps to meet the requirement and standards which are existing in the current market.
Innovation is considered as an original measure which can help the market to break and keep it
updated according to the current trends (Kuo and et.al., 2016).
Process Need-
This aspect is concerned with identifying the needs and wants of the market and find
out what company are the gaps in their structure so that they can come up with some of the

rectifying measures. This need to bring innovation develops when a business is facing an issue
into the market. For instance if a business is not able to deliver its products then they will hire
more labour so that they can increase their productivity.
Change in Industry and Market-
Market is unpredictable and the tastes and preferences of people changes with time.
Other than this there are other factors such as changes in regulations, product lines etc.
Companies need to look out for opportunities in order to bring innovation. Companies also
take the help of updated or new technology in the market in order to bring new ways and
measures in the market.
Changes in Perception, meaning and mood-
With time people develop the need for change, their perception for things clearly
changes. Companies must pay attention at this time as this will help them to capitalize the
market. Apart from this companies can comply according to the change in culture of people
and bring innovation according to that in the market.
New Knowledge-
Internet is considered as one of the most responsible factor as it has revolutionized the
technological industry which has made innovation at all aspects possible. This has increased
the level of opportunities for the companies to come up with new ways and methods. Most of
them have invested a part of their income in the area of research and development in order to
generate ideas and come up with new methods in the market. This helps them to look out for
new things continuously and guide them the path to success.
P 2 Importance of innovation to business performance
Competitive Advantage-
The meaning of this aspect is that coming up with advanced capabilities which will
help them to get an advantage over their competitors. It is necessary for the company to gain
competitive advantage over their competitors in the market. Premier Inn has implemented this
in their structure and this is the reason of one of their success and owning one of the largest
chain of hotels in UK. Innovation helps the company to increase the experience for their
consumers by offering them better quality of services (Peters, Kallmuenzer and Buhalis,
2019).
Maximize ROI-

Companies such as Premier Inn has competitive advantage because of continuously
working with innovation and updated trends which has helped them to enhance their
performance and increase the level of profit. According to survey and research it has been
noticed that the companies who look out more on the areas of innovation can are more
successful as compared to those who don't. It is tough for the company to calculate ROI from
different hotels as it is a big chain and all of them requires money invested in different but
specific area of innovation.
Increasing Productivity-
Growth of the economy is dependent on technological and innovative factors which
can lead to improvements, helps to reduce the cost of production and extract more output.
More productivity will help the company to look out for the tasks which are essential and
necessary and avoid those who are less valuable. Premier Inn focus on areas such as managing
the relationship with their customers which helps them to increase their turnover and offers
suitable benefits according to the preference of consumers (Jones, Hillier and Comfort, 2016).
Positive impact on the culture of the company-
Innovation helps companies such as Premier Inn to maintain the culture in positive
manner and increase the ability to come with more creative ideas which are under their
knowledge. If the environment of the company is positive then the employees of the company
will stay motivated and bring new ways and methods for the company. The company just
needs to offer suitable tools and training to their team so that they get familiar with the
working pattern and formulate new strategies which will make them more innovative.
LO 2
P 3 factors driving innovation in the hospitality industry
Create teams and support innovation-
Not every time the company can depend on one single person for bringing innovative
ideas as they cannot do it alone. This is why Premier Inn divides this work among those who
have bit of knowledge of every area so that they can conduct research and analysis and come
out with an effective strategy so that the company can be successful in bringing innovation for
their consumers.
Welcome new ideas-

Premier Inn believes in this concept and they keep on encouraging their employees so
that they generate more ideas for the company. Company believes that more ideas lead to one
successful innovation as they evaluate it from all the other alternatives and then select one
which is the most viable.
Build a culture of innovation-
Premier Inn hire those employees who are creative and has implemented the culture of
innovation in their hotels. Company believes that there are four dimensions to this aspect and
they are processes, people, policies and climate. Hotel tries to keep focus on all of these
measures because all these factors together can help the company to generate innovative ideas.
Develop processes that everyone can use-
Premier Inn uses a set of creative processes which works for them as drivers of
innovation such as six sigma, design thinking etc. These methods helps the employees of the
company to figure out the solution to the problem so that they can find out solution to the
problems and improve the measures by monitoring the progress so that they can select and
fund new ideas for innovation (Sipe, 2018).
Leverage Diversity-
Every team and individual has its own strengths and weaknesses which the company
needs to embrace and never to poke anything on their weakness other than working for their
improvement. Working in a team together helps them to learn from the mistakes and abilities
of each other to develop an idea which is effective for the company.
LO 3
P 4 Range of different innovative concepts and approaches
Entrepreneurship and innovation-
This industry offers an platform for the entrepreneurs which allows them to bring
innovation which can be useful to the industry and help them to fight with their competitors.
Premier Inn use different strategies which helps them to differentiate among their competitors
and offer additional services to tourists. Hotel targets those people who are busy such as
businessmen they are the ones who appreciates innovation the most as it makes them feel
more convenient and helps to save their time. They remain in contact with the people who are
travelers and try to deliver them their best service. Understanding the different needs of guests

is essential for hotels and to come up with concepts which are innovative so that they can
achieve long term growth.
New Technology-
There are many technologies such as artificial intelligence, chat bots, robots and
technology of facial recognition has allowed Premier Inn 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 Premier Inn 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 (Edghiem and Mouzughi,
2018).
LO 4
Covered in PPT
CONCLUSION
From the above studies it has been concluded that Premier Inn use strategies which are
effective and helps them to satisfy the consumers. They invest heavily in the department of
research and development so that they can continuously look out for opportunities which will
help them to bring innovation in the market. Innovation has simplified the work of the industry
and help them to expand their operations.

REFERENCES
Books and Journal
Edghiem, F. and Mouzughi, Y., 2018. Knowledge-advanced innovative behaviour: a
hospitality service perspective. International Journal of Contemporary Hospitality
Management.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality
industry. International Journal of Contemporary Hospitality Management, 28(1),
pp.36-67.
Kuo, C.M., and et.al., 2016. SMART SWOT Strategic Planning Analysis: For Service Robot
Utilization in the Hospitality Industry. Consortium Journal of Hospitality &
Tourism, 20(2).
Peters, M., Kallmuenzer, A. and Buhalis, D., 2019. Hospitality entrepreneurs managing
quality of life and business growth. Current Issues in Tourism, 22(16), pp.2014-2033.
Sipe, L.J., 2018. Towards An Experience Innovation Canvas: A Framework for Measuring
Innovation in the Hospitality and Tourism Industry. International Journal of
Hospitality & Tourism Administration, pp.1-25.