Concepts and Innovation in Hospitality: Coursework Report

This report delves into the multifaceted concept of innovation within the hospitality industry. It begins by defining innovation and differentiating it from invention, outlining various types of innovation, including product, service, process, and marketing innovations. The report emphasizes the crucial importance of innovation for business performance, highlighting its role in increasing productivity, improving market presence, maintaining a competitive edge, and facilitating problem-solving. It then explores specific innovative concepts and approaches, such as co-living and Airbnb's, and examines the characteristics that define them. Furthermore, the report identifies key factors driving innovation in the hospitality sector, including technological advancements such as property management systems, artificial intelligence, and the use of big data. The report also covers the implementation and benefits of Customer Relationship Management (CRM) within the hospitality industry. The report concludes by providing a comprehensive overview of how innovation is reshaping the hospitality landscape, offering insights into strategies and practices for sustained success.

Concepts and Innovation in hospitality
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Contents
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
P1 Discuss about the concept of innovation and identify different source of innovation. .........3
P2 Understand the Importance of innovation to the business performance. ...............................5
LO2..................................................................................................................................................7
P3 Identify the factors driving innovation in the hospitality industry by using wide range of
organizational examples. .............................................................................................................7
LO3................................................................................................................................................10
Use of Customer Relationship Manager Innovative Concepts..................................................10
Benefits of Customer Relationship Management......................................................................11
CONCLUSION..............................................................................................................................12
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INTRODUCTION
Innovation is based on the modern concept in terms of new idea, imaginations and
creative thoughts that mainly applicable within the organization. It often reviews as application
of better solution that easily meet the new requirement and unarticulated needs in existing
marketplace. Innovation is vital role played at workplace because it provides organizations an
edge in penetrating market and also establish connection to develop markets. It led to develop
bigger opportunities especially in rich nations. The report will discuss about the innovation
concept and identify various source of innovation. It will understand the importance of
innovation which directly influencing overall business performance and efficiency. Furthermore,
the report will examine different factors which drive innovation in hospitality industry. However,
it will describe about the wide range of different innovative concept, approaches that will
implement within hospitality industry in global marketplace.
LO1
P1 Discuss about the concept of innovation and identify different source of innovation.
 Innovation: It can be defined as process of translating an idea or invention into specific
good and service, mainly creates value for which client will pay (Binder, 2019). In other
words, innovation is that when new idea applies in the hospitality industry in order to
satisfy customer needs and expectation of client. For Example- smartphone, desktop
computers. Invention: It is all about making new item and finding the better way of making goods
and services. it may involve the innovation which bring idea to market into product
development. For Example- continue upgrade of computer system is a type of
intervention.
Difference between innovation and invention
Innovation Invention
 It is based on the introduction of
better solution provided that meet
requirement of existing marketplace
 Innovation is combination of various
products and process.
 It is based on the specific product,
device, concept and process.
 It made up of single product and
process (González-Torres, Pelechano-
Barahona and García-Muiña, 2019).
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 It is required the set of marketing,
strategic and technical skills
 It mainly considers the scientific
skills and knowledge.
 Incremental innovation: this type of innovation is mainly including the improevemnt
to add more sustain value into existing item, service and processes. For Example-
coca cola, Cadbury.
 Radical innovation: it is based on the high quality of product launch in market that
support overall business operation. For example- iphone.
Interpretation of innovation
 Innovation as something new: It is based on the new idea, creative thoughts that would
be implementing within hospitality industry. It viewed as an application for better
solution that meet specific new requirement in business. For Example- Hilton hotel can
be improved the room hardware as innovation in hotel industry.
 Innovation as a process: it is translating the path of new or existing knowledge into
marketable solutions. The process has something decisive that design new idea for
development (Bharwani, Mathews and Ghura, 2019). For Example- in Hilton hotel, it
will be used workflow management tool that performed as process of innovation to
improve performance and efficiency.
 Innovation as invention: Invention can occur as creation of product and also introduce
process for improving significant contribution within existing item and service. For
Example- Hilton Hotel is mainly implementing innovation as invention for launching
new item such as hardware devices. Innovation as value driver: In hospitality industry, Innovation gain more popularity
which increasing demand of customer in global marketplace. it is to be considered as
value driver which might be interested for adopting external technology within
hospitality industry (Binder, 2019). For Example- Hilton hotel is mainly creating
dedicated innovative team which will introduce an idea sharing platform for identifying
suitable approach in business expansion.
Types of innovation in hospitality industry
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Innovation refers to handle all different activities that required to launch something new. It
simply inventing the better quality of product and service in hospitality industry. There are
different types of innovation happens within hospitality industry.
 Product Innovation: it is mainly defined as development of new product that will
change in the design of establishment. It will be used the components and materials in
manufacture. For Example- In Hilton hotel, it is introducing the keyless entries which
operates by smartphones. It is one of most common technology that has already been in
operations.
 Service Innovation: It can define as innovation for changing the way to serve customer
to create great value. In this way, it can deliver the more revenue in the hospitality
industry. For Example- Marriott hotel is integration with AI assistance and other type of
machine learning.
 Process Innovation: It is based on the implementation of new idea which significantly
improve production as well as delivery method. Sometimes, it may include changing
technique, equipment and other software (Hassi, 2019). For Example- Marriott hotel is
used workflow management tool which help for reducing instances of dropped
customers.
 Administrative innovation: It is creation of business design which mainly support for
production, creation and service provide within hospitality industry. It always maintained
the coordination with staff members and identifying materials that would be used in
product manufacturing. For Example- Hilton hotel is basically used the IT system that
support to handle operational activities of administration.
 Technical and Material innovations: these are related to each other whereas
successfully implementation for technology innovation in hospitality industry. It can be
used raw materials which play important role for designing equipment’s. For Example-
Marriott hotel is used IoT units such as sensors, ambient light sensor’s that control
overall temperature of hotel rooms (Inanc–Demir and Kozak, 2019).
 Marketing innovation: It is based on the process for implementing new marketing
technique that involves significant changes in product promotion, pricing and packaging.
In another word, innovative marketing is set of processes that useful for market
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communication new product and services (González-Torres, Pelechano-Barahona and
García-Muiña, 2019). it is targeting the new potential consumer in global marketplace.
For Example- Hilton hotel is basically used the emails that can sent information to client.
P2 Understand the Importance of innovation to the business performance.
Innovation is mainly referring to create an effective processes, products and idea for
business expansion. it useful for implementing new idea to improve service or creating dynamic
products in hospitality industry. Innovation is changing business model and change its existing
environment to deliver better product as well as services in global marketplace. The innovation
will help for achieving the business success.
 Increase productivity: The growth of economic is driven by innovative technology
which help for reducing production cost and enable to generate high output. Hospitality
industry must adopt new automation process which help for increasing overall
performance and efficiency (LeeAhn and Back, 2019). For Example- Hilton hotel can use
the tracker system to assign for monitoring activities. In order to meet production level
with hospitality industry. On regular basis, firm can update software anytime to increase
productivity as well as profitability in marketplace.
 Improved market business: The hospitality industry can improve the business in market
by implementing innovative idea for increasing demand among customer. In this way,
people always remember the business because of their uniqueness. Sometimes,
hospitality industry is focused on marketing plan for promoting their better quality of
services. it helps for make unique identity among potential clients.
 Stay ahead of competitors: when hospitality industry thinks innovatively, it become
easier for industry to beat other competitors. It just needs to put some creativity in the
product and services (González-Torres, Pelechano-Barahona and García-Muiña, 2019).
Along with this, innovation will help for identifying accurate marketing technique for
business growth and development in global world. in this way, it can be identified that
innovation helpful for taking competitive advantage. Solve Problem Easily: Hospitality industry need to come with innovation and adopt in
their business operations which help for resolving certain issues. Sometimes, Hospitality
industry face various problem related inventory storage (González-Torres, Pelechano-
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Barahona and García-Muiña, 2019). In this way, they are making an effective plan to find
out accurate solution and control overall enterprise efficiency in proper manner.
The role of innovation with business strategy
Innovative concepts and approaches:
 Co-living: it is based on the trends of living, where many people stay in one place that
always encourage its resident to interact and work together. It is type of modern housing
where resident shows their interest, value towards living space. Airbnb’s: It is created in-house innovation as a design which easily identifying the
homes, rental areas. It can be implementing internet technology in their daily working
activities. Sometimes, it allows the hots to set an appropriate competitive price.
Characteristics of Co-living and Airbnb innovative concepts
 Tech-driven easy living: technology is rapidly changing the way of living things, internet
become important role played within organization to increase demand in global
marketplace.
 Economic for millennials: The employed millennials are down as nearly 8% since
recession starts. It is directly affects on the overall economy of hotel industry
(NimfaYunus and Latiff, 2019). No string attached accommodation: The hospitality industry is not changing need of
fraternity. In particularly, they can take book and create technology enabled traveller.
Example of innovative approach taken by hospitality organizations and business benefits
achieved as result
Hilton hotel is adopting the product innovation approach that mainly involves for creating
new products and improve version of existing item. In this way, it allows for organization to
assure growth, remarkable expansion and also gain more competitive advantage in marketplace.
in this way, it allows for customer to differentiate from another item thereby making it more
attractive in front of client.
As a result, it will be increased the productivity as well as profitability in global
marketplace. It is also generating more and more revenue.
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LO2
P3 Identify the factors driving innovation in the hospitality industry by using wide range of
organizational examples.
Innovation is a crucial part of hospitality industry which help for developing new services,
knowledge about how to achieve success. It relays on speculation, gut-feeling and their own
experience about innovation process (Teng, Hu and Chang, 2019). Thus, it can be identified the
different driving factors in terms of innovation within hospitality industry.
A). Technological advances
 Property management system: It is based on the software application that mainly used
within hospitality industry for business operations. it provides facility to accommodate
and commercia residential rental properties. For Example- Hilton hotel is used property
management system for purpose coordinating with different functions such as sales
management, planning reporting and communication with staff members. On the other
hand, Marriott hotel also uses Property management system application for monitoring
activities of business operations such as recording sales reports. This system can be used
by the hospitality organization like Hotel Hilton is currently using these system to
improve their internal operations in the target market.
 Artificial intelligence: it is a type of advanced technology that simulates with human
intelligence in the form of machines by using programming language. Currently, AI uses
hospitality industry to deliver in customer services. It provides the information of
particular tourist and interact with client (Njoroge, Anderson and Mbura, 2019). For
Example- Hilton hotel is mainly used Alexa device which are capable of interaction and
answering questions. It is small unit of Artificial intelligence technology. This type of
device is helping for manager to assists guest during communication. On the other hand,
it allows for customer to use their voice to control electrical appliances in room. It is to be
considered the better technology for improving operational efficiency and performance in
the organization.
 Hotel big data: It is concept that used to describe large volume of unstructured and
structured data for business purpose. It is the better way to analyze data in hospitality
industry and also gain insight t hat lead for decision making. For Example- Hilton data
seems to use google analytics for collecting large amount of information or data such as
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guest journey, experience, interest, demand and personalization. It is helping for
collecting and gathering data at marketplace such as STR reports. In this way, Hilton is
constantly striving to attract more customer and retain legacy (Sigala, Rahimi and
Thelwall, 2019). Therefore, it is important for hotel chain to recognize innovation value
and understand that how can use data for customer decision. On the other hand, Marriott
hotel is also used Google analytical method to use large amount of data and track their
competitors’ brands. In this way, it can be identified the revenue steams outside rooms in
terms of new facilities as well as services.
 Hotel analytics: it is one of most common term in technology which often
misunderstood. Hospitality industry is starting to link with predictive analytics with
geographical location. It is an effective concept that easily capture large amount of data
in real time. For instances, it is suitable for hospitality industry for different reason where
hotels are trying the capture data to identify demand of customer. In this way, it is
considered the most common approach to analyze information in the form of graphs,
charts (Hassi, 2019). For Example- Marriott hotel use modern technology to identify
customer experience, growth rate, competition level, ground events. These are different
operational functions performed by industry to increase efficiency and performance in
marketplace.
B). Other factors driving innovation in hospitality industry
 Business model innovation: it is important factor within hospitality industry in term of
innovation. Hospitality industry use this model for purpose of transformation. It will help
for build capability to develop, scale, test in organization (State and et. Al., 2019). It
always inspired for hospitality industry to change their environment, culture and style. It
consists of different approach in business model innovation in hospitality industry.
1. The reinventor approach: it can be deployed with fundamental challenge in
hospitality industry such as rules and regulations. The enterprise model is slowly
growing and generate uncertainty (Teng, Hu and Chang, 2019). In this situation,
industry must reinvent its consumer value and realign the business operations to
deliver better services.
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2. The adapter approach: It mainly used to understand overall business and their
existing the core areas. Afterwards, it can be developed innovative engine to
increase capabilities of hospitality industry in global marketplace.
3. The adventure approach: it is primarily applicable for business expansion by
exploring their venturing into marketplace (Teng, Hu and Chang, 2019). through
approach, hospitality industry understands competitive advantage of organization.
It is carefully beat other competitors in order to achieve success in new market.
4. The Maverick approach: It deploys enterprise model innovation to scale up
potentially gain more success. This type of approach is better way to establish
hospitality industry by applying new standards. In this way, it helps for evolving
competitive advantage in term of growth and development.
C). Customer led demand:
The customer demand has rapidly changing towards hospitality industry due to digital
transformation. Most of people give more preferences to advance technology such as website.
They automatically check the availability of facilities and services by online medium.
Unfortunately, hospitality industry adopts advanced technology to interact with potential
customer and resolve their issues. In positive manner, it will be increasing opportunities for
hospitality industry to increase their demand in global marketplace. in order to attract more
customer towards product as well as services. In additional, there are another reason to change
the demand of customer.
 Level of income of customer: it is based on the customer income where how much they
ear from either investment or work. In this way, it directly impacts on the profitability of
hospitality industry. There are many people who are attracted towards hotel facilities and
services. Sometimes, they are giving extra payment to hotel industry so that they can
fulfill their requirements (Sigala, Rahimi and Thelwall, 2019). Many people want to
compromise with their comforts. In this way, it is increasing the productivity and
profitability of hospitality industry in global marketplace.
 Free Time: Generally, most of consumers are spending their weekend with families,
friends so that they likely to prefer go into hotel and enjoy their free time. In this way,
hospitality industry considers as success of driver for increasing the demand among
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potential client. Therefore, it directly impacts on the business profitability, brand values
in global world.
 Expectation: currently, customer has high expectation level for product as well as
services. But most important thing is experience which always inspire towards hospitality
industry. In this way, it is an essential for industry to maintain all type of facilities as per
demand (Sigala, Rahimi and Thelwall, 2019). Therefore, potential client again visits in
the same hotel because they might be satisfied with services. So, as it directly impacts on
the business profitability whereas hospitality industry achieves the success within global
marketplace.
LO3
Use of Customer Relationship Manager Innovative Concepts
There are different concepts are used by the business organization to improve the
performance of the organization in the target market. These concepts are- Sales Force
Automation, Marketing Campaign Management, Supply Chain Management, Call or Service
Centre Operations, Contact of Customer Prospecting.
Sales Force Automation- Sales force automation is known as technique that uses software to
automatic perform various tasks related to the sales of organization. In this process different
operations of organization are changes into the automation process to avoid delays in the
operations (Hollebeek, Srivastava and Chen, 2019). For example, In the Hotel Hilton CRM
software is used to track the guest preferences. In Travelogue CRM software is used to maintain
the historical data of the customer stay to improve their stay in hotel. This process is used by
Hospitality organization like Hilton and Marriot to improve their internal operations like food
processing and delivering system.
Marketing Campaign Management- Marketing Campaign Management is known as planning,
executing analysis and tracking of direct marketing campaign of organization. This tasks is based
on the complete life cycle of the marketing campaign. For example tols like Humspot Marketing
used by the Hotel Hilton to improve the conversation and reduce the traffic in process of
communicating. Wrike Software is used by Premier Inn for the multichannel promotion
activities.
Supply Chain Management- Supply chain management is a approach that is used by the
organizations to maintain effective flow of goods with I organization in order to reduce the cost
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to the company and improve the customer satisfaction. For example supply chain management is
used by Travelogue and Hotel Hilton in their Kitchens in order to maintain the inventory of
organization.
Call or Service Centre Operations- This os one of the most important activity that is used by
the organization to provide better services to the customers. Using customer service center
organization can provide effective services to their customer (Bhat and Darzi, 2016). This also
can be used to solve different issues of employees. Hotel Premier Inn and Hotel Hilton uses this
process to provide higher satisfaction to the customers.
Contact of Customer Prospecting- This process is considered as process where different
services and processes are used by the organization to predict about the guest list of organization
who are aspected to stay in the hotel. There are different sources are used by the organization to
get this type of details regarding prediction of the possible customer. Most of large size
hospitality organizations uses this process to make arrangement to provide better services to the
customers. Hotel Hilton and Hotel Premier Inn uses this process as customer relationship
management.
Benefits of Customer Relationship Management
There are different benefits of customer relationship management for the hospotality
industry. Some of the main benefits of this approach are-
Increased Personalized Service- Sales force automation technique is used by the organizations
to provide high flexible services to the customer to customise their services. Hotel Hilton uses
this tools to provide better services to their customers.
Improve the Customization of Marketing- There are different marketing campaigns are used
by the Travelogue to develop effective data of market place and customer to improve the
services of organization.
Multi Channel Integration- For the multi channel integration Supply chain management supply
chain management is used by the Hotel Hilton to improve their performance in the target market.
Time Saving- The approach of sales force automation is used by the Hotel Hilton to improve the
operations of organization (Wang and Kim, 2017). This process also reduces the workload on
employees. This tool helps the organization to save time and cost to company.
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