Innovation in the Hospitality Industry
The importance of innovation has been recognized since the days of Joseph Schumpeter some 100 years ago, and this recognition is continuing with vigour today in businesses around the world (Economist, 2007; Tidd & Bessant, 2009). Innovation is seen as a key way to effectively compete in crowded marketplaces, or even to create new market-spaces which disrupt existing industries and markets by making them less relevant. Cirque du Soleil comes to mind here (Kim & Mauborgne, 2004).
The hospitality industry is no stranger to innovation, though much of it may not be at the top level of Booz Allen Hamilton’s framework of being ‘new-to-the-world’ (Ottenbacher & Harrington, 2010), or even ‘disruptive’ (Christensen et al, 2000). The industry though does occasionally provide some radical ideas which change the game somewhat. Early examples from North America would include Holiday Inns, fast-food chains, roadside budget hotel chains, and the ‘Starbuck’s’ experience amongst many others. More recent innovative ideas have emerged from other countries, such as Asian-style restaurants (YO!, Sushi Shop, Wasabi Sushi, Wagamama) and more-affordable modular-type hotels (CitizenM, Yotel). At the top end of the hotel sector we are seeing state-of-the-art ideas, such as the Burj Al Arab and Rose hotels in Dubai, the Skypark in Singapore, or even Royal Caribbean’s Oasis of the Seas. These small examples demonstrate that the hospitality industry is full of innovation vitality and will no doubt continue to be so in the future.
