Innovation in product/service development and delivery

Authored by: Adina Letiţia Negruşa , Valentin Toader , Veronica Rozalia Rus

The Routledge Handbook of Hospitality Marketing

Print publication date:  October  2017
Online publication date:  October  2017

Print ISBN: 9781138214668
eBook ISBN: 9781315445526
Adobe ISBN:

10.4324/9781315445526.ch35

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Abstract

The purpose of this chapter is to describe the process of product and process innovation applied in hospitality. The innovative behavior of firms is influenced by several external factors, such as: level of competition and the maturity of the marketplace, globalization, technological and communication developments, consumer behavior and expectations, involvement of public institutions and changes in legislation. These factors are important due to the fact that they create an incentive for the hospitality units to innovate continuously. The literature presents different approaches for successful innovation in hospitality. In trying to answer the question “How do we innovate?” in this chapter, we will draw attention to best practices of innovating in hospitality. The main aspects we will discuss refer to creation of tailor-made products, property renovation, marketing business skills development, involvement in socially responsible activities and use of networking and collaborative behavior. The main reason why hospitality firms invest in innovation is to improve their competitiveness. Better services lead primarily to improved customer satisfaction, gaining new clients and growing the number of loyal clients and increased brand notoriety. Also, property renovation may represent an effective marketing tool to attract new markets. Innovation in hospitality is important not only for competitive purposes, but also to ensure employee satisfaction. Unfortunately, implementing innovative activities is not always an easy process. Firms may face different impediments which could affect both the decision to innovate and the way the innovation is implemented in the firm’s activity. The seasonality of tourism demand, the lack of financial resources, the cost of innovation or the lack of trained staff to help in the implementation process may represent only a few of the barriers a company may face.

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