Hospitality innovation strategies: An analysis of success factors and challenges

Innovation in hospitality has attracted considerable interest, partly because its processes and activities are so diverse, and partly because its impact on performance is still a puzzle. This study proposes a comprehensive theoretical model that reviews combinations of technological and non-technological innovation and the interrelation between different innovation strategies that contribute to generating competitive advantages. Using data from 2010 and 2012 CIS, it empirically examines different innovation strategies, analyzes their role in organizational performance, and thoroughly researches sectoral variation in innovation strategies between hospitality and other service subsectors. Comparative analysis suggests that hospitality is the least innovative service activity. The findings also show that in hotels sales turnover is positively related only to complex innovation strategies that emphasize both technological and non-technological innovation. The study concludes that the level of innovation varies from sector to sector and that innovation strategies can have different effects on performance depending on the sector.     

Knowledge-based resources and innovation in the hotel industry

Although the study of innovation in the hotel industry is a key issue, little is known about the determinants of innovation in this sector, as most innovation research has focused on manufacturing firms or knowledge-intensive services. Furthermore, although research suggests that knowledge is a critical asset for achieving innovation performance, few studies have explored how knowledge operates in the hotel industry. This paper aims to provide empirical evidence about the role played by a set of knowledge-based resources in determining innovation activity in tourist accommodation firms. Data from 109 companies operating hotels in Spain suggest that intangible assets should be considered in this sector when attempting to explain the innovation capacity of firms.     

The importance of water management in hotels: a framework for sustainability through innovation

This paper highlights the global phenomenon of the crisis in the quality and quantity of water supplies and how tourism generally and hotels specifically may have contributed to the situation. The major internal and external barriers for Small Medium Enterprises adopting Environmental Management Systems, including water, are listed. The paper proposes a water management framework for hotels and other types of accommodation that leverages on the concept of innovation. Taking into account the various levels of knowledge and technological capabilities in water management, the framework is developed based on the commonly known 3R approach in environmental management, with the addition of another R (Reaching). It is proposed that hotels can innovate and enhance their water management approaches under these 4Rs: Innovative Reducing, Innovative Reusing, Innovative Reaching and Innovative Recycling. The framework offers examples and strategies about how hotels of different sizes, with differing financial, technical, knowledge and managerial capacities could address the challenge of implementing water management and obtain commercial benefit. A detailed case study is provided of a gray and black water recycling system in a Malaysian resort. Other examples of a range of water management methods are also discussed.     

Training plans,manager's characteristics and innovation in the accommodation industry

This paper explores the effect of training plans and managerial characteristics on innovation activity in the hospitality sector. This sector is featured by being labor-intensive so the examination of employment and managers skills deserves attention in order to determine the level of quality and competitive advantage in the provision of services. The data in the paper comes from a questionnaire administered to hotel managers in a representative sample of hotels in the Balearic Islands, a leading tourist destination. Results suggest that training plans positively affect innovation-related decisions and the extent of their implementation; however, managers should have more than experience to manage the innovation change, specifically skills and capabilities.     

Key drivers of innovation capability in hotels: implications on performance

Innovation capability is critical for the modernization and competitiveness of the hotel industry. This work analyzes the role of hotels' innovative culture, market orientation, and internal marketing as forerunners of innovation capability in hotels, as well as the effect of innovation capability on hotels' performance. The proposed conceptual model is evaluated through structural equation modeling using a sample of 256 Spanish hotels. The results reveal that innovative culture by itself is not a key driver of the hotels' innovation capability. However, internal marketing and market orientation mediate the innovative culture-innovation capability relationship. Innovation capability proves to enhance hotels' market results directly and indirectly through customer equity. Our findings offer hotel managers useful guidance to understand how innovation capability is built within the firm by combining the right organizational culture and practices. Additionally, our study reinforces the financial and non-financial benefits of innovation capability in hotels.     

Hotels and restaurants—are the risks rewarded? Evidence from Norway

The purpose of this paper is to apply accounting-based risk measures to describe and compare the risk involved in accommodation and restaurants to three other industries. It is found that the variation in earnings is particularly high in construction, but also significant in accommodation and restaurants. The volatility in construction is caused by variance in sales. Construction companies experience low profits when the economy is depressed, while earnings boom when the economy progresses. On the other hand, earnings in retail are stable. It appears that retailing provides low risk and steady profits.The sales variance in accommodation and restaurants is fairly low. The high variability in earnings is mainly caused by operational and financial leverage. Despite the high total risk, hotels and restaurants earn less profit than the other industries examined. Apparently, the market does not reward self-inflicted risk induced by high leverage. Perhaps Norwegian accommodation providers and restaurant keepers have concerns other than maximising profit and minimising risk, and owners’ lifestyles are reflected in the financial accounts. An alternative explanation might be that the accommodation/catering sector has had unrealistic expectations in the period covered by the research.     

The measurement of spatial variations in tourist activity

This paper looks at the problems of using physical accommodation capacity figures to identify spatial variations in the level of tourist activity and considers the implications for the interpretation of Defert's tourist function index. An analysis of accomodation use patterns in New Brunswick, Canada, shows considerable differences in the intensity of use among the various forms of accommodation. A closer look at hotel and motel occupancy characteristics also reveals large spatial variations, but their combined effect on the relationship between physical accommdation capacity and yearly tourist use shows little variation over space. It is concluded that Defert's index is a most useful tool for examining tourist activity in areas where most accommodation is in the form of hotels and motels, but should be interpreted with caution where there are large spatial variations in the types of accommodation available.     

Classifying technological innovation attributes for hotels: an application of the Kano model

ABSTRACT

Technological facilities and services have become attractive features in hotel selection. However, limited research has been conducted on how technological innovation attributes are perceived by hotel tourists. This paper aims to highlight and categorize the technological innovation attributes of hotels based on the Kano model. Empirical testing shows four technological innovation factors: Internet and app usage, smartphone usage as a room key and for payment, E-housekeeping, and the use of electronic self-service systems. Findings provide practical implications for hotel operators planning to introduce technologies into their hotels.     

Towards Strategic Intent: Perceptions of disability service provision amongst hotel accommodation managers

The tourism sector globally has become increasingly mindful of how an ageing population is reshaping service provision forms and offerings. This being particularly true of accommodation operations where there is a now a growing recognition of the commercial value for providing market groups with exceptional service. With this in mind, this study sought to ascertain the perceptions of managers in the accommodation sector towards disability service provision with a view to identifying any current service gaps or failings. An inductive, qualitative approach was used with the data collection phase incorporating a series of one on one interviews and a focus group. The in-depth interviews were conducted with 10 managers of hotels deemed to have accessible rooms that complied with the relevant building codes and standards. A focus group comprised 22 managers of hotels located in the Sydney central business district, Australia. Study findings revealed five key themes that had not been previously discussed in the literature. They were: inclusive attitudinal approach; safety; the responsibility of people with a disability to communicate their needs to the hotel; perceptions of accessible rooms by the general public; and operational processes. Related themes that emerged from the data analysis that had previously been aligned with the literature included: legislative responsibility, policy and building codes; disability as a market segment; staff awareness/training; and language, marketing, and promotion information. Implications with respect to management of accessible rooms in the accommodation sector are outlined and further areas of research are proposed.     

Are innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels

This paper evaluates the impact of innovative activity in the hotel industry on the willingness to pay by consumers. To this end, we estimate a hedonic price function where innovation is identified indirectly through certain attributes that previous literature has linked with hotel innovativeness. The test is performed on a representative sample of Cuban hotels, considering a large number of attributes of hotels and rooms. To solve the usual problems of collinearity, a million alternative models are estimated by choosing the variables included in a random manner and obtaining the final coefficients by means of an internal meta-analysis. The results are completed with a variance decomposition analysis. The results highlight the importance of the attributes linked to innovation and internationalization on the determination of room prices in Cuban hotels: membership of international hotel chains, high quality offers, diversified rooms, and adaptability to specific needs of each client.     

Emerging Definitions of Boutique and Lifestyle Hotels: A Delphi Study

Despite growing interest in the boutique and lifestyle sector of the lodging industry, there is not an accepted definition of either “boutique hotel” or “lifestyle hotel.” Boutique and lifestyle hotel strategies provide hotel companies with important points of differentiation in an increasingly competitive marketplace. The current study determined definitions using a Delphi analysis of responses from a diverse group of experts from the lodging industry. Forty-one panel members were involved in the process that was undertaken with three rounds of questions. The study determined that boutique hotels are best characterized as small, stylish hotels that offer high levels of service. Lifestyle hotels are described as innovative and provide more of a personal experience than so-called “branded” hotels.     

Hospitality Industry Responses to Climate Change: A Benchmark Study of Taiwanese Tourist Hotels

Hotels are one of the tourism businesses most vulnerable to climate change because of their fixed assets. Results are presented of a baseline study that explores the awareness, attitudes, and behaviours of Taiwanese tourist hotels with respect to climate change and its potential impacts as well as their overall environmental practices. Tourist hotels are defined by the Taiwanese government as hotel establishments of over 80 rooms in rural areas and 50 rooms in city areas. Although the 104 tourist hotels represent only 3.7% of the total number of hotels in Taiwan, they account for over half of international guest nights and had a combined revenue of over TWD$43 billion in 2010. Questionnaires were distributed via email to all tourist hotels in Taiwan and 45 valid returns were received, representing an effective response rate of 43.3%. The results of research illustrate the level of understanding of climate change within Taiwanese tourist hotels and identify the specific climate change adaptation and mitigation strategies that tourist hotels have initiated. Access to such baseline data provides a potentially significant contribution to evaluating the response of the Taiwanese accommodation sector to environment change as well as providing a basis for further comparative studies and benchmarking.     

Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives

This paper offers a diagnosis of the “state of the issue” regarding the measurement of innovation in the tourism industry at the company level, and some recommendations for overcoming identified problems. The study addresses two central issues: how existing secondary databases of innovative activity define the boundaries of the tourism industry, and the degree to which these databases reflect the particular characteristics of this economic activity. It is concluded that these analyses present serious biases and anomalies hindering the understanding of the situation at the micro level and complicating the issue of international comparability, and the analyses do not capture the internal heterogeneity of innovative behavior of tourism companies from specific, intra-sectoral activities. The problems concern inappropriate indicators and the need for survey methods to complement the development of innovation scoreboards in secondary sources. The study concludes by detailing a set of proposals that should be considered in the context of a scoreboard to provide a comprehensive view of a tourism firm’s technological and organizational innovations, as well as its innovative capabilities, combining Schumpeterian theory and the dynamic-capabilities-based approach, and also making cross-national comparisons feasible.     

Self-catering accommodation in Switzerland

This article examines the situation of self-catering accommodation in the light of tourist experience in Switzerland. Swiss tourism is currently declining, and so are traditional forms of accommodation such as hotels. At the same time there is evidence that the demand for self-catering holiday properties is increasing. Yet very little is known about this sector in Switzerland. The present paper attempts to identify the number of Swiss self-catering properties and presents the results of interviews and an on-line survey, which shed light on this industry and allows the situation in Switzerland to be compared with that in other countries. The number of holiday homes in Switzerland has increased steadily since the 1980s, and could provide a valuable source of rented property and local income. The Swiss self-catering industry is highly seasonal, although rental properties are mostly available all year round. Swiss accommodation is relatively small and expensive, partly because the rent usually includes laundry and other services, not offered in other countries. Owners often rent to offset the cost of upkeep, rather than to make a profit, and this attitude is reflected in the fragmented and rather unprofessional nature of marketing, representation and communications in the sector. A number of recommendations are made for developing the industry, based on the findings.     

Innovation in hotel services: Culture and personality

The growing competition arising from burgeoning global markets exacerbates the demand for hotels to innovate their services and processes to continuously ensure success. To identify the processes that ensure excellent service and innovative performance, this work employs a literature review and series of questionnaire surveys of 185 employees working at international tourist hotels in Taiwan, to examine the relationships among service innovation culture, proactive personality, charged behavior and innovation. This work contributes to the service innovation literature by demonstrating that environmental forces outweigh individual forces in shaping innovation behaviors.     

Hotels' COVID-19 innovation and performance

To navigate the unchartered terrain that has resulted from the pandemic, there is a palpable need for hotels to re-assess current business practices, and quickly devise new and innovative strategies that safeguard the health and safety of guests as well as employees and, consequently, restore consumer confidence. The objective of this article is to assess the utility of these new innovations by looking at shareholders' perceptions. The empirical application shows that the innovations implemented are seen as effective, although differential effects exist among innovation types. The results could help hotels sustain and expand the innovative responses that work (among which product innovations stand out), and discontinue those that are less effective.     

On Measuring Tourism Productivity

This paper presents a productivity measure for the tourism industry. It demonstrates the value of the Luenberger productivity indicator, which is based on the directional distance function, for analyzing productivity between two periods. This indicator can be decomposed into two components: efficiency change and technological change. In order to illustrate this, productivity in the French tourism sector between 2000 and 2003 is analyzed. The study focuses on tourism receipts by looking at the number of bed-nights in hotels and campsites based on tourist nationality.     

Managing solid waste in small hotels

Collectively, small hotels constitute a significant solid waste management (SWM) problem. Little research has focused on the SWM practices of small hotels. In the United Kingdom, much of the solid waste generated by small hotels goes to landfill. This study uses a constructionist approach to investigate SWM issues in small hotels in a local authority in Wales and examines the role of the public sector in helping small hotels manage their solid waste effectively. The results revealed that only a minority of small hotels were considering the adoption of sustainable SWM practices, either because hoteliers felt negatively about sustainable SWM alternatives or perceived challenges – an issue which necessitates government intervention. At the time of this study, the public sector provided only very modest services to enhance SWM practices. This study proposes a best practice model for the public sector to encourage small hotels to manage their solid waste effectively, in order to reduce or even eliminate waste for landfill. Local authorities' support is required to make waste management hierarchy options more accessible to small hotels and should incentivise better waste management through increasing the gap between the costs of landfill and recycling waste.     

Scale and scope economies of international tourist hotels in Taiwan

Based on the survey data of Taiwan's international tourist hotels in 2000, this paper applies Zellner's seemingly unrelated regression technique to a simultaneous system of a translog multi-product cost function and its corresponding factor share equations to investigate the extents of scale and scope economies of Taiwan's international tourist hotels. The empirical results show that product-specific scale economies exist for accommodation, food and beverage, as well as other services. Ray scale economies are significantly present. Economies of scope exist in providing food and beverage and other services jointly, as well as accommodation and food and beverage services jointly. However, economies of scope may not be present when accommodation and other services are jointly provided.     

Strategic groups in the hospitality industry: Intergroup and intragroup performance differences in Alicante, Spain

The hotel sector is currently immersed in a very uncertain, highly competitive environment, due to which it needs information for the correct management of its establishments. This information can be obtained from the classification of hotels in strategic groups. The present empirical research presents strategic groups in the hospitality industry as a useful tool for the planning and implementation of strategies by hotels that helps to determine their competitive strategies and advantages. This research paper additionally shows how the levels of performance between the hotels belonging to each group can be evaluated from strategic groups. In this study, the tool is applied to the hotel sector of the Spanish province of Alicante, a very important geographical area in the context of international tourism. The dimensions resource commitment and tourist activity scope have been used to define the strategic groups.