Impact of Innovation on Tourism and Hospitality: A Case Study Report

This report delves into the innovative and entrepreneurial transformations within the tourism and hospitality industry over the past five decades, emphasizing the crucial role of adaptation to evolving consumer needs and technological advancements. The report utilizes the Applied Creativity and Innovation model, encompassing challenge, explore, generate idea, design, and implement phases, to analyze industry changes and their impacts. It highlights the evolution of the industry, from traditional accommodation booking to the integration of mobile applications and automation in revenue management. A significant portion of the report is dedicated to a case study of the Hotel Park Hyatt Sydney, Australia, examining how the hotel has applied the Applied Creativity and Innovation model to address challenges and improve customer services, particularly in areas like health and fitness amenities and technological issues. The conclusion emphasizes the importance of creative thinking and innovation in navigating industry complexities and driving future growth.

Running Head: INNOVATION IN TOURISM AND HOSPITALITY 0
Innovation in Tourism and
Hospitality
Student details:

INNOVATION IN TOURISM AND HOSPITALITY 1
Executive summary
The industry of tourism and hospitality has gone through numerous vicissitudes. In view of that
these ups and downs it has become important to make some changes within the industry and its
functioning. In last fifty years ample of changes have been introduced in the hospitality and
tourism sector. The Model of applied creativity and innovation has helped in understanding and
reforming the problems faced by hospitality and tourism sector. This model has helped the Hotel
Park Hyatt Regency of Sydney, Australia.

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Contents
Introduction.................................................................................................................................................3
Evolutions in hospitality and tourism industry............................................................................................3
Applied Creativity and Innovation Model...................................................................................................4
Objectives of model are as follows:-........................................................................................................4
Introduction to hotel Park Hyatt Sydney, Australia.....................................................................................5
Application of applied creativity and Innovation model in Hotel Park Hyatt Regency, Sydney..................6
Conclusion...................................................................................................................................................7
Bibliography................................................................................................................................................8

INNOVATION IN TOURISM AND HOSPITALITY 3
Introduction
The following paper demonstrates innovative and entrepreneurial changes faced by the
hospitality and tourism industry in last five decades. Development and changes are part of
process to deal with the changing time and needs of the consumers. The report is made with the
help of Applied Creativity and Innovation model, the model comprises of five elements-
challenge, explore, generate idea, design and implement, which are briefly explained in the
report. The main aim of applied creativity and innovation model is to use creative thinking tools
for the overall development of industry. These developmental plans help the hotels to embrace
new ideas, improve facility procedures, augment the working efficiency stages, come across
consumer needs, produce sales and attain profitability. Further, the report gives information of
transformation brought in hotel Park Hyatt Sydney, Australia in past few years. It includes the
data of changes made by the hotel in providing better services to the costumers.
Evolutions in hospitality and tourism industry
Modifications and reforms are part of every industry sector. Hospitality and tourism
industry are known as hub of the tourism sector. There are numerous changes, which are
witnessed in last few years, it can be stated that the industry has completely transformed. Earlier
people were supposed to move to the hotel in search of accommodation but now introduction of
people to mobile applications to book and give feedbacks, technology has changed the landscape
of almost every sector. The tourism industry do not remained untouched by the influence of
mobile networking and usage of applications. According to the survey conducted by eMarketer,
tourism and travelling applications stands on the seventh position which of most downloaded
application. It is analyzed that around 60% of smartphone users use travelling applications on a
regular basis (Law, Buhalis, & Cobanoglu, 2014).
The emerging trend of Automation has brought various changes and transformation in
revenue management system of tourism and hospitality sector. Travel technology and
introduction of automation in hospitality has made the working easier and faster. The hospitality
sector is defined as revolutionary sector for technological advancements (Leung , Law, Van
Hoof, & Buhalis, 2013). Technological advancement has plays a substantial role in economic

INNOVATION IN TOURISM AND HOSPITALITY 4
growth of the respective sector. Easy access to plan travelling and other hospitality services has
made the things convenient for consumers. The boundless use of internet services has enabled
everyone to get detailed information about everything. Unlike earlier, people are not required to
stand in long queues of bookings are appointments. Therefore, it can be stated that automation is
time save in the fast moving world (Ivanov, 2014).
These are two most important and successful transformations of hospitality and tourism
industry. Apart from these alterations and modification there are some other alternations
introduced in the hospitality and tourism industry. Hotels have started granting importance to the
health and personal care of the consumers. Hotels are well equipped with gyms, pools and
sanatoriums. Hotels have introduces healthy foods, lights which energizes the body, air
sterilizers and in-room workout equipments. The explosion of internet has revolutionized the
complete thought process of humans. People are now just few clicks away from exciting
destinations to visit. They are able to easily gathered information about anywhere at any time.
Hence, it has now increased the growth of hospitality and tourism sector. Earlier people do not
have any feedback about the places which they are about to visit but now they are able to get
feedback about the hotels, resorts, spas and other similar hospitality services with the help of
websites.
Applied Creativity and Innovation Model
Applied creativity refers to the stage where creativity and imagination are formulated in
the working structure of an organization. The model of applied creativity and innovation helps an
organization to meet the demands of the consumer. The model of creativity attracts consumer
and initiates the economic growth of the organization. The model helps in understanding the
challenges faced by the organization, explores the issue and generate ideas about solving the
issue. The model helps in designing a proper plan and implements it into the functioning or
organization (Hon & Lui, 2016).
Objectives of model are as follows:-
Understand operative process of divergent-convergent thought process to find ground
breaking resolutions to business encounters.

INNOVATION IN TOURISM AND HOSPITALITY 5
Ability to use creative skills and thinking tools to contribute more towards improvement
in the activities of managing and develop the ability to pro-actively identify the issues which will
be faced in near future.
Ability to develop new ideas, which supports in organizational innovations.
Work more productively as entities and take part more commendably in work clusters
and on project squads.
The image below highlights five elements of the applied creativity and innovation model
used by organizations for bringing innovation and entrepreneurial changes in the hospitality and
tourism sector (Dubina, Carayannis, & Campbell, 2012).
Image Source: (Mindwerx, 2019)
Introduction to hotel Park Hyatt Sydney, Australia
Hyatt is a multinational hospitality company, which deals in luxury hotels, resorts and
properties, which can be looked for vacation purposes. The Hyatt Corporation came into
existence in the year 1991 and got remodeled in the year 2012. Hyatt regency is a great place to
stay; it is present in CBD district of Sydney and is few minutes away from overseas passenger

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terminal. The hotel is preferred by most of the tourists because the hotel has a breath taking view
of the darling harbor and Sydney harbor (NewsroomHyatt, 2019).
Application of applied creativity and Innovation model in Hotel Park Hyatt
Regency, Sydney
There are five elements of Applied Creativity and Innovation model, which are as
follows-
Challenge: The model focuses over analyzing the challenges faced by organization and
helps in achieving the set targets. Herein, the hotel mainly faced two major issues. People these
days are more concerned about their health and fitness and this is one of the facility in which
hotel park Hyatt regency fails. The gym seems to be too small as compared to the size of the
hotel and volume of people staying in the hotel. The gym is portioned in two small rooms, which
are not enough for everyone to workout. In addition to this, there are only two elliptical machines
and both of them did not have TV working. Another technical failure present in the hotel is that
the speed dial buttons are not functioned properly. Many times the number is dialed to the
different visitor’s room, which creates a discomfort for the visitors and the staff as well
(Flyertalk, 2019).
Explore: As per the model of applied creativity and innovation, hotel should look forward
to the solution of these problems. The management teams of hotel should explore the reasons
behind the problems. While performing research they can also consider the ways how other
hotels are managing with such issues (Flyertalk, 2019).
Generate Ideas: In case of small size of gym space, it would be suggested that the hotel
should increase the size of gym. Along with this, new and efficient machines for workout can be
placed in the gym. People do not want to take a chance with their health and fitness but all of the
above they are more prone towards hygiene. Therefore, proper hygiene should be maintained in
the gym.
Design: in order to solve the following problem a blueprint of the whole plan should be
generated. Hotel should welcome suggestions of the scholars of fitness and innovators. After

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combining the requirements suggested by fitness expert and the creative ideas of innovators, the
plan drafted should be implemented in the hotel (Flyertalk, 2019).
Implement: The element of implementation does not only involve the process of
implementation. This element of the applied creativity and innovation model helps in finding the
success of the changes made. It helps in getting an overview whether the problem is resolved or
not. The result of which can be draw with the help of conducting survey of either online or by
placing the forms at the suites/rooms (Flyertalk, 2019).
Conclusion
As per the above report, it can be concluded that creativity and innovation are backbone
of the hospitality and tourism sector. Analyzing the difficultly and using creative thinking skills
to resolve the problem is a popular way of dealing with the issues. In order to deal effectively
with such issues a model of applied creativity and innovation pragmatically used in the working
of organizations. It can be observed through the study that plentiful evolutions have taken place
in the hospitality and tourism sector. For instance, the introductions of automated machines in
hotels have reduced the work of human work force. Development of websites have made the task
of bookings and planning vacations easier for the clients. Along with this the application Applied
creativity and innovation model in Hotel Park Hyatt Regency, Sydney has helped in evaluating
how the hotel has come up will resolutions to it problems. Hence, the model of creativity and
innovation can be helpful in understanding the root cause of the problem and defeating it by
efficient creative thinking and innovation skills.

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Bibliography
Dubina, I. N., Carayannis, E. G., & Campbell, D. F. (2012). Creativity economy and a crisis of
the economy? Coevolution of knowledge, innovation, and creativity, and of the
knowledge economy and knowledge society. Journal of the Knowledge Economy, 3(1),
1-24.
Flyertalk. (2019, August 23). Hyatt Regency Sydney - Too Many Service Issues. Retrieved from
Flyer Talks: https://www.flyertalk.com/hotel-reviews/r-hyatt-regency-sydney-too-many-
service-issues-2395
Hayes, D. K., & Miller, A. A. (2011). Revenue management for the hospitality industry. New
Jersey: John Wiley & Sons.
Hon, A. H., & Lui, S. S. (2016). Employee creativity and innovation in organizations: Review,
integration, and future directions for hospitality research. International Journal of
Contemporary Hospitality Management, 28(5), 862-885.
Ivanov, S. (2014). Hotel revenue management: From theory to practice. Bulgaria: Zangado.
Law, R., Buhalis, D., & Cobanoglu, C. (2014). Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management,, 26(5), 727-750.
Leung , D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and
hospitality: A literature review. Journal of travel & tourism marketing, 30(2), 3-22.
Mindwerx. (2019, August 23). Applied Creativity And Innovation. Retrieved from Mindwerx:
https://mindwerx.com/applied-creativity-innovation/
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. London: Routledge.
NewsroomHyatt. (2019, August 23). PARK HYATT SYDNEY RE-OPENS AFTER A COMPLETE
TRANSFORMATION. Retrieved from News Roomm Hyatt:
https://newsroom.hyatt.com/2012-03-05-PARK-HYATT-SYDNEY-RE-OPENS-
AFTER-A-COMPLETE-TRANSFORMATION