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Concepts and Innovation in Hospitality

University: University College London

  • Unit No: 6
  • Level: High school
  • Pages: 10 / Words 2600
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 292
Question :

This sample will let you know about:

  • Discuss about the types of innovation.
  • Explain the importance of innovation to business performance.
  • Expalin the Factors driving innovation in hospitality industry.
Answer :
Organization Selected : N/A


Nowadays innovation has become a major tool and practices for growth and development of business. It has allowed companies operating in hospitality sector to provide unique and high-quality services. Besides that, with the help of innovation they are able to enhance efficiency and improve process. Moreover, technological innovation has provided a platform to expand in new markets and attract more customers (Akhundjanov et al., 2020). Thus, it has transformed the way of offering services to people.

This assignment will describe about the concept of innovation and different sources. Also, it will be explained about importance of innovation in business performance. Furthermore, factors driving innovation along with various concept and approaches of innovation applied in hospitality industry will be discussed. At last an innovative concept will be described in brief.

Concept of innovation and its different sources

Innovation is process of new thoughts, ideas, concepts, etc. that helps in effective processes, commodities and ideas (Arora et al., 2016). It is known as creating a new idea to redesign or reproduce new goods and services. through this, it provides platform for growth to business. Innovation also leads to working in new way and gaining competitive advantage.

History of innovation

It can be said that Godin citesfrom 1636, when an English Puritan and former official Henry Burton, began publishing pamphlets against church officials as innovators. Then, in 1939 Joseph originated concept of innovation. He said it was different from others. From 1980's innovation took lead.

Types of innovation

The types of innovation are radical, incremental, disruptive and architectural.

Radical – It is a type of innovation in which new business model is developed. This means new system or process. For example- I phone

Incremental – it is an innovation in which update is made into existing products or services. For example- samsung

disruptive – here, it is a type of innovation in which a new market is created. For example- Netflix

architectural- an innovation where architect of product is changed.

Sources of innovation

Basically 4 P’s of are process, paradigm, product and position. with this innovation can be made in those areas . However, there are various sources of innovation which is explained below:

Process needs

It is a type of innovation whereby analyzing the market and customers’ needs changes are made in process. Thus, new products are developed and operations process is modified. In many businesses’ innovation is implemented just to change process by providing a new way or method to perform operations. The change is in procedure, method, etc (Gachie and Govender,2017). It is source of innovation as there change in process leads to new process or method. For example- online delivery of products and services

Market and industry trend

Here, with change in industry and market trends in hospitality sector it forces organization to bring innovation. The trends occur due to economic, political, technological factors. In addition, due to change in market structure is also trend. Moreover, in market trends occurs in product or services, customer needs, etc. so, it results in providing vast opportunity for business in hospitality sector to make grow and expand via innovation. It brings out new ideas or concepts to be implemented to develop new product, change process, etc. (Gong and Peng, 2018)It is source of innovation as change in trend will led to new product or service development. For example – trend of eco tourism services.

Change in perception

This is also an innovation source as it related to change in customer taste and preference. This occurs due to ethics, values, etc. which change their perception. Thus, it allows organization to capitalize on those change through innovation. Furthermore, innovation is implemented to fulfil needs of people. Here, with change in perception, people lifestyle is changed (Islam 2018). for example- change in perception of sustainable services.

New knowledge

It is main source of innovation in which new knowledge is applied in different ways. The knowledge is in terms of technology, product feature, market trend, etc. It provides vast number of opportunities for firms to expand and grow. Through this, they apply new knowledge in modifying or redesigning new method or process that is used in business. In hospitality sector technological advancement is new knowledge on basis of which innovation is done. This enable in continuously improving methods to enhance business efficiency (Kim and Kim, 2018) for example- use of robots in delivering services

New Technology

There are many technologies such as artificial intelligence, chat bots, robots and technology of facial recognition has allowed Hilton Hotel 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 Hilton Hotel 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 (Korhonen, 2017). it is source of innovation as new technology allows in use of new software and applications for example- use of artificial intelligence in rooms.

Importance of innovation to business performance

Innovation plays a significant role in improving business performance. This is because it provides new ways and methods of performing task and activities resulting in higher productivity. Along with this, it helps in identifying loopholes within process and improving it. Also, in hospitality sector services are delivered in quick time with greater efficiency. The importance of innovation to business performance is explained below:

Competitive advantage

Innovation helps in bringing new products and services. It also leads to change in process or methods of operations. New software and applications are used that enhances business efficiency. Thus it helps in creating value of product or services offered. In this way, competitive advantage is gained by organisation.. Moreover, by doing innovation it is easy to enhance customer experience and retain them. along with it, goals and objectives are achieved in less time with efficient use of resources (De Rosa and Mazzarello, 2018).

Increasing productivity

This is also importance of innovation for business as it helps in providing new tools and techniques for employees to do complex task in easy manner. Besides this, it brings in changes in process by transforming them into new way of doing it. However, innovation is useful in reducing cost and increasing efficiency of business. This allows staff to perform functions with new method. In this way goals are attained quickly and it leads to increase in productivity of staff.

Rise in ROI

The main goal of innovation is to increase ROI by reducing cost and increasing revenue. With help of continuous innovation, many areas are improved, and changes are made. It leads to rise in productivity of staff and attaining goals in effective way. Likewise, organisation who want to increase ROI implement innovation. They identify areas where there is high return on investment. This leads to enhance in business performance and expansion in new markets (Purchase and Olaru, 2017)

Positive culture

With innovation organisation structure is changed which leads to bringing positive culture within employees. it allows in changing policies, people roles, method, etc. However, employees are able to work in flexible and creative way. they find it new way to perform task and attain goals and objectives. furthermore, strategies are formulated and applied in different way (Horng, Tsai and Chung, 2018). Order assignment help from our experts! 

Factors driving innovation in hospitality industry

Basically, main objective of business of doing innovation is to grow and increase efficiency. It allows in creating new ideas and concepts and developing products and services. Besides that, processes and methods are changed to maximise efficiency. However, there are certain factors of innovation in hospitality industry. They are either internal or external. It forces them to implement innovation. The factors are described as:

Initiate new ideas- This is the main factor that drive innovation. here, company focuses on developing new ideas and concepts that are beneficial for them. it enables in changing process or methods so that everyone can use it. this results in setting a new way or framework that makes it easy to be applied. However, sometimes new ideas are developed in order to solve problem or issue. Also, new products and services are developed that allows firm to go beyond others. For example- Starbucks develops new products of coffee and initiated new ideas as well. It has resulted in attracting more people and rising sales and profits.

Building culture of innovation – It is also a factor in which innovation is done. here, culture is transformed to support teams and groups. In this there are four dimensions such as people process, policy and climate. So, innovation is done in either of these dimensions as it overall support in building a culture of innovation. With help of it, organisation focuses on improving employee skills and process (Rubera and et.al., 2016). For instance- McDonald's build culture of innovation. They allow staff to work in different ways such as in team, individual, by playing games, etc. It has led to building a positive work culture and increasing efficiency of staff

Developing new process – This is a factor where innovation is done to develop a new procedure or method which is easy for everyone to use it. The concept applied here is to redesign new process, implement new, modify it, etc. by finding out solution of problem it is easy to solve it by taking effective measures. This leads to maintaining progress of innovation and funding new ideas (Walsh and Nagaoka, 2016) For example- Holiday Inn develops redesign new process to provide hospitality services. They provide it via online, use of robots, etc. it has resulted in attracting more people and generating revenue.

Create teams to support innovation – Here main reason to do innovation is to bring change in way of working. It means to encourage them to do hard work by providing them new tools and techniques. In this teams are formed of individual who possesses and share knowledge and skills to innovate new ideas or concepts. Thus, high performing teams become part of iterative process. Need Assignment Samples?Talk to our Experts!

For instance- TUI create teams in order to support innovation. There are several teams in it like customer centric service centric, etc. it has enabled in enhancing customer trust and satisfaction

Range of innovation concept and approaches implemented in hospitality

Innovation refers new idea and changes in products which can make them attractive and creative. There are several industries which are making their products and service innovative in order to being in the competition and attractive customers to the great extent. In the context of hospitality industry, it can be said that it is one of the industries whose main aim is to satisfy customer . Trends in this industry keep changing and it is important for the industry to make changes in their policies, thoughts and products to cope up with changes and being in a competition. There are several approaches and concepts of innovation by which, hospitality industry like hotels, travel and tourism companies can accomplish their goals include:

SaaS (Software as a service): Cloud and software as a service is one of the best innovation models which has made able to hospitality sector companies to reduce information technology related issues. This software is beneficial for small scale companies who cannot afford to invest in in-house technical. It is one of the innovation models which has changed this industry to the great extent and has made able to several companies able to take competitive advantages by managing activities of organization in an efficient manner. For example- Hyatt hotels are using this technology (Arora and et.al., 2016). They provide hospitality services like use of hotel through SaaS.

Keyless entries: With the help of technology, many five-star hotels have made changes in their policies and other things. With the help of innovation and technology, customers are allowed to control their rooms remotely with the help of their phones and laptop. Smartphones work as like a key which can be used as a remote control and voice command operating system. The main aim of using this technology is to increase customers experience and make them feel valued. It also helps companies in reducing their operational cost. For example- Marriott is using this technology. They have installed it in room of VIP guest to allow them keyless entries.

Room service robots – it is an innovation in which robots are used to deliver rooms services. Here, many hotels such as holiday Inn, Hyatt etc. are using robots to provide room services to guest. This has resulted in quick delivery of services. Alongside, guest satisfaction is gained (Gachie and Govender, 2017). For example- Hyatt uses room service robots to provide laundry, cleaning, services, to guest.

Easy check-in: Increased technology has become easier for guests to check-in, inquire about their rooms as-well as upgrade RFID keys. By making an effective use of advanced technology and phones, company's official website, they can check in an easiest manner. It does not only help local guests, but with innovation and facilities of easy check in helpful for travelers who came for visiting destinations. They do not have to rely on guides and others as they can get each and every detail on social media platforms (Gong and Peng, 2018). For example- Taj hotel is using this technology to allow guest to easily check and check out.

So, from the above discussed innovation model, it can be said that technology is playing an important role in hospitality sector especially in hotels. It is making them able to increase number of guests every year which increases year sales and revenue and has direct impact on the country's economy. don't worry get marketing assignment help from UK's leading assignment helpers.


From report it can be summarised that innovation is new advancement in hospitality sector. In today’s competitive business environment innovation is key of success. The different sources of innovation are new knowledge, change in market trends, customer needs, etc. Moreover, importance of innovation to business performance is competitive advantage, maximise ROI, increasing productivity and many more. Furthermore, factors driving innovation are initiate new ideas, developing new process, building culture of innovation, etc. Alongside, there are several innovative concepts applied in hospitality industry like use of AI, IOT, etc. here, an innovative concept taken is.

Read more - The Travel and Tourism Business Toolkit

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