The Role of Innovation and Entrepreneurship in the Hotel Business

This report examines the critical role of innovation and entrepreneurship in the hotel and hospitality industry, focusing on the Paramount House Hotel in Australia. The study explores how the hotel's architectural design, use of technology, and sustainable practices contribute to its success. The report discusses how innovation and entrepreneurship have transformed the Australian hotel industry, highlighting challenges related to competition and changing customer demands. It analyzes how the Paramount House Hotel, a boutique hotel, incorporated new designs, technologies, and guest-centric services to attract customers. The paper also investigates the implementation of modular design and artificial intelligence, along with effective management policies, which contributed significantly to the hotel's success. The report also emphasizes the importance of staff training, customer relationships, and capital investment in maintaining a competitive edge. The conclusion reiterates the significance of innovation and technology in the hotel industry's growth and offers insights into how entrepreneurship supports this transformation.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and Entrepreneurship
Name of the Student
Name of the University
Author note

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EXECUTIVE SUMMARY
This paper analyses the role of innovation and entrepreneurship in the hotel and hospitality
industry. This paper examines a hotel of Australia in order to understand how it helps in
innovation and technology. Therefore, it investigates how it contributes to the growth and
development of the hotel.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................8

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Introduction
Innovation and entrepreneurship plays an important role in the tourism and hotel
industry. The industry gone through several changes in the field of innovation and technology,
which contributed positive in the growth and development of the industry. This paper taken into
consideration a hotel, which witnessed huge success due to application of innovation and
technology in the infrastructure (Tourismaccommodation.com.au, 2019). It helped the hotel to
attract many domestic as well as international customers. This paper discusses the contribution of
the innovation and entrepreneurship in case of Paramount House Hotel, which is based in
Australia. Headquarter of the hotel is in Sydney, Australia. The unique position of the hotel
helped in attracting customers across the world. Another important feature of the hotel is
architecture and infrastructure (Yeh, Ma & Huan, 2016). The organization applied innovation
and technology in the field of architectural and infrastructural development. This paper intends to
analyze how innovation and entrepreneurship helped in organizational development.
Discussion
The hotel industry of Australia contributed largely in the development of the country.
Therefore, in the era of most and largest dynamic era of growth, it faced many challenges in
terms of competition and change in demand (Hilman & Kaliappen, 2015). These challenges gave
rise to re-generation of the hotel industry. One of the major challenges of the hotel industry is
architecture and infrastructure development along with its interior services. To solve this
problem traditional hotels are replaced by the new boutique and lifestyle hotels. The hotel
industry of the Australia transformed with the help of revolution in innovation. Various range of
hotels of Australia embraced innovation and technology and reorganized the wide range of
departments of the hotels. The implementation of innovation and entrepreneurship made hotels

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more than a place to stay (Lee, Hallak & Sardeshmukh, 2016). It became connected and lively
destinations for the locals and visitors alike. The hotel industry of the Australia saw several
changes in past 50 years due to demography and technology. In addition, the recent trend in the
travel industry has also shifted. Thus, it helped in growth of the new hotels. One such vital
boutique hotel of the Australia is Paramount House Hotel (Paramounthousehotel.com, 2019).
The hotel started its project in the site of 80 years old warehouse, which is the former
headquarter of the Paramount Picture Studios. The project of the Paramount House Hotel gave
priority to the sustainability in operation and construction. New guest centric services, new
designs, new technologies and new brands made the hotel most attractive place for the customers
(Kearney, Harrington & Kelliher, 2014). The main focus of the Paramount House Hotel was to
grab the unique opportunities provided by the profound change in the Australian hotel industry.
The ideas generated by the hotel company was to emphasize on art, wellness, individualism,
localism and sustainability to solve the challenges of the particular industry. To cater the
anticipated growth in domestic and international visitation the organization introduced service
initiatives and world-class design. It helped the organization to mitigate the changing in the
hospitality industry.
Previously main focus was given to brand fidelity in the hotel and hospitality industry. As
the global philosophy related to tourism industry has been changed. To overcome the challenges
the industry as well as the hotel focused on the design revolution. Therefore, the Paramount
House Hotel of Australia incorporated specific design features. It also introduced niche brands
for the new generation travelers (Lee, Hallak & Sardeshmukh, 2016). The hotel employed new
generation of designers for the unique architectural development. It gave the brand a signature
design. The exterior as well as interior design represents the creative and innovative vision. As

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potential solution the hotel re-imaged industrial buildings. The design elements that it added are
both the present and heritage along with main focus on heritage. It created an experiential and
atmospheric destination for the tourists. It is made up of copper clad extension and the building
is two-storied.
The technology used in the hotel helped in its re-generation. The new construction and
design technology introduced new building techniques in the Australia, which is applied by the
hotel. It used the modular design, which is already very popular in the Europe (Hilman &
Kaliappen, 2015). It brought significant success in the hotel industry of the Europe. The main
facilities offered by this new design technology includes cost effective and more efficient
construction. It also facilitated the hotel with the excellent acoustics and insulation. Therefore,
the hotel company saved a lot of money in the process of contraction. Thus, the hotel
construction of the hotel became more viable in the prime hotel. As a result, it enhanced the
growth of the boutique hotel.
In addition, the hotel also implemented innovation and technology through artificial
intelligence and virtual reality. Entrepreneurial activity of the organization helped in successfully
implementing the innovation and technology with the organization. Therefore, the hotel
underwent significant changes due to innovation and entrepreneurship, which resulted in great
success. In addition, effective management policies also helped the organization. Therefore,
innovation and technology with the help of entrepreneurship brought great success for the
organization.
The innovation is considered as the key strategy to sustain in the hotel industry. Hotel
industry adopts innovative technology as per the market demand. A lot of research works are
required to be performed before applying the innovative approach in its own hotel. Several

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studies have found that success factors of the hotel industry are deeply associated with the
effectiveness of the managerial performance. In this regard, the management has emphasized on
the development of innovative construction structure in order to make significant impression in
the country’s hotel business. Hence, the management must consider the development of both
internal and external factors. The internal factors include staff, service quality and capital of the
particular hotel. The success of hotel industry depends on different dimensions, such that,
financial performance, market structure and the relationship between the customer and
employee. All these internal factors are considered as the driving force of the hotel industry.
Management should formulate a strategy which will prioritize the importance of these factors
according to their needs. The enhancement of the staff relationship with the customer will
improve the market position with respect to its competitors. This will further enhance the number
of reliable customers for the Paramount hotel in the Australian hotel industry (Tang, Wang &
Tang, 2015). Meanwhile, a strong supervision needs to be performed in order to maintain the
strength of the reliable customers. On the other hand, the management needs to understand the
needs of the staffs. It should be important to maintain the customer welfare for the betterment of
the service quality. Every innovative policy should be formulated in such a way that existing
employees feel important part of the hotel business. Their decision needs to be analysed with
highest priority. Most of the staffs own some important practical experience as they directly deal
with the customers (Bunda, 2014). Therefore, the management should consider their experience
knowledge while developing new strategy for the hotel business.
Apart from that, the management needs to have a strong vision while introducing a
training program for its employees. The training program needs to be formulated with the aim of
improving the working skill of the existing employees (Espino-Rodríguez & Lai, 2014). On the

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account of demand of new generation customers, the hotel staffs are required to have advanced
technology knowledge. This will empower the online hotel business of Paramount hotel in the
Australian hotel business. In addition to that, it will enhance the connection with the overseas
customers. All these programs require a considerable size of capital strength. The capital strength
depends on the innovative technology and service quality. The improvement in the service
quality depends on the machinery inputs installed within the hotel (Punitha, Aziz & Rahman,
2016). Therefore, implementation of advanced machinery is expected to bring improvement in
the customer service for the concerned hotel. Moreover, the management deals with the
government policy. In the context of the Australian hotel industry, the government law and
regulations are quiet supportive for enhancing the growth of the hotel industry.
Conclusion
The hotel and hospitality industry went through many changes and adopted new
innovation and technology in order to overcome challenges related to old and conventional
construction. Innovation and technology played an important role in the growth and sustenance
of the industry. One such hotel of the Australia is Paramount House Hotel of the Australia, which
brought innovation in its internal as well as external structure. To make a better architectural
structure, the company introduced modular design. It also focused on artificial intelligence to
make construction procedure easier (Yeh, Ma & Huan, 2016). The company saved a lot of
money by using innovation and entrepreneurship within the organization. The hotel company
also adopted technology in order to provide better services to its customers. In addition, the
company also employed effective management policy in order to take better construction policy.
Here, the entrepreneurship contributed significantly in the application of innovation and
technology.

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References
Paramounthousehotel.com (2019). In the House - Paramount House Hotel. Paramount House
Hotel. Retrieved 21 December 2019, from https://paramounthousehotel.com/in-the-
house/
Yeh, S. S., Ma, T., & Huan, T. C. (2016). Building social entrepreneurship for the hotel industry
by promoting environmental education. International Journal of Contemporary
Hospitality Management, 28(6), 1204-1224.
Hilman, H., & Kaliappen, N. (2015). Innovation strategies and performance: are they truly
linked?. World Journal of Entrepreneurship, Management and Sustainable
Development, 11(1), 48-63.
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant
performance: A higher-order structural model. Tourism Management, 53, 215-228.
Kearney, A., Harrington, D., & Kelliher, F. (2014). Exploiting managerial capability for
innovation in a micro-firm context: New and emerging perspectives within the Irish hotel
industry. European Journal of Training and Development, 38(1/2), 95-117.
Nieves, J., & Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation: An
empirical analysis in the hotel industry. International Journal of Contemporary
Hospitality Management, 28(8), 1554-1576.
Leal-Millán, A., Peris-Ortiz, M., & Leal-Rodríguez, A. L. (2018). The route towards sustainable
innovation and entrepreneurship: An overview. In Sustainability in Innovation and
Entrepreneurship (pp. 1-9). Springer, Cham.

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Bunda, R. B. (2014). The Business of Beds: An Exploration of Hotel and Hostel Business
Strategy.
Espino-Rodríguez, T. F., & Lai, P. C. (2014). Activity outsourcing and competitive strategy in
the hotel industry. The moderator role of asset specificity. International Journal of
Hospitality Management, 42, 9-19.
Punitha, S., Aziz, Y. A., & Rahman, A. A. (2016). Consumers' Perceptions of Green Marketing
in the Hotel Industry. Asian Social Science, 12(1), 1.
Tang, T. W., Wang, M. C. H., & Tang, Y. Y. (2015). Developing service innovation capability in
the hotel industry. Service Business, 9(1), 97-113.
Tourismaccommodation.com.au. (2019). Retrieved 21 December 2019, from
https://www.tourismaccommodation.com.au/wp-content/uploads/2018/10/TAA-Hotel-
Innovation-Report-1.pdf