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Impacts of Innovation on the Hospitality Industry

The increasing competition in the hospitality sector triggers the need for adopting new methods of boosting and maintaining high performances in the industry. The central integration in this field is creating and utilizing various creativity and advanced elements that can act as a boosting force for establishing the hospitality industry (Shukla, 2017). Due to significant changes in economics and social activities, Shukla (2017) highlights the need for the hospitality industry to adopt advancing technologies to enhance competitiveness and performance. The author noted that initially, employees and clients were resistant to changes leading to organizational pressures of creativity and innovations in services and product delivery (Dzhandzhugazova et al., 2016). Innovations in the hospitality industry include; technical and material innovations, economic, managerial, and organizational innovations, and legal and market creativity. In addition, social innovations allow new ideas and solutions to address cultural and social problems encountered in the hospitality industry. Thus, applying innovation plays an integral role in the hospitality industry, such as improved management, product designs, service delivery, and competitiveness.

Chivandi et al. (2019) provided insights into the impacts of the hospitality creativity framework in the context of organizational productivity and planning tools in the hospitality industry. Authors integrated innovation models that are crucial to the hospitality industry. Tourism theories integrated by the researchers include the social exchange concept expectancy concept of inspiration, the theory of Otus, and the concept of supply and demand (Chivandi et al., 2019). Rational change theory, practical concept and concept on creativity, Marlow’s rank of hospitality expectations, and the enlighten theory can be integrated into discussing innovation in the tourism sector. The creativity framework is perceived as a strategic alignment for creativity in the hospitality field. Innovation is defined as the embracement of learning and integration of advanced philosophies and the ability to reform managerial networks. In the context of service, the theory is initiated by the 6 Vs., such as the value of service development, benefit service change, the value of service capture, the value of service quality and delivery, as well as economic worth (Chivandi et al., 2019). The service theory in the hospitality industry offers comprehension of strategy implementation, income, economics, profit sources, and importance in the tourism sector. Therefore, in this regard, innovation depicts the new implications in the service industry, leading to improved service delivery and positive impacts on performance.

According to Chivandi et al. (2019), service creativity depicts a special method of delivering hospitality services ordinarily to attract clients and advance the hospitality business in terms of profit margin, .customer worth, and attraction of new customers. Service creativity in the hospitality sector falls under a critical point since the hotel services providers are significant players in the expansion of such service industry and the whole economy. Besides, the business model concept is presented as part of the business model development strategy with the capacity to meet customer needs (Chivandi et al., 2019). However, business model innovation is highly utilized in manufacturing rather than service industries, such as hospitality and tourism. The hospitality concept of innovation is significantly used in addressing the management of beverages, foods, entertainment, and accommodation using advanced methods. Hospitality theory can integrate innovative ways crucial to improving the reception and inspiration of employees in the hospitality industry to boost customer service (Chivandi et al., 2019). Social exchange theory is an essential concept in the hospitality industry that depicts social behaviors through the interchange procedures comprising of optimization of advantages while reducing the expenses.

Chivandi et al. (2019) integrate a social exchange theory that states that a person can forecast the underlying benefits of social interactions. When the cons outweigh the benefits, it is expensive and adversely displayed in economic value and time taken (Chivandi et al.,2019). However, Rice and Cook argue that social exchange theory connects to the realization that any relationship displaying conflict can be proven by computing the status of outcomes from the interactions. Social exchange theory is applicable in the hospitality sector when implementing innovations because of the interaction between customers and management. Therefore, innovation in the hospitality sector improves relationships between customers and hotel management, leading to high performance (Molina-Castillo et al.,2023 ). Adopting new ways of interacting with customers in the Hospitality sector is paramount to building customer trust in this industry while boosting performances and income generated through expanded customer networks. Repeat purchases are observed in the hospitality businesses that adopt new ways of interaction between customers and management; this study on the Hospitality innovation concept is supported by scholarly works of Molina-Castillo et al. (2023), who discussed the impacts of innovation in improving performance in the hospitality sector.

Innovation in hospitality is essential to reform the existing business models into a competitive-based approach. Chivandi et al. (2019) integrate the concept of expectancy that emphasizes inspiring employees in the hospitality sector to achieve the organization’s goals. This concept is observed to enhance the evaluation and assessment of employees’ knowledge and decide on appropriate creativity strategies during a crisis (Breier et al., 2021). The expectancy concept of creativity in the tourism/hospitality industry is regarded as critical due to the economic impact behind it, including the positive impact on GDP. The core goal of any industry, including hospitality, is to meet consumer needs through improved product quality, reduced costs, increased efficiency, and boosted overall sales and profits. Molina-Castillo et al. (2023) agree with the business concept that innovation is vital for reforming the competitive business environment for the hospitality sector. In agreement with Chivandi et al. (2019). Molina-Castillo et al. (2023) point out that expectancy theory is crucial in measuring employees’ inspiration. This theory applies specifically to hospitality since, without motivation, employees in this sector will not prevail in their careers, leading to undermined performances financially and a poor reputation.

Breier et al. (2021) demonstrated the impacts of creativity in the hospitality sector in responding to crises. This hospitality field is significantly affected when crises such as the COVID-19 outbreak lead to huge losses. While consenting with Chivandi et al. (2019) on theoretical observation in the hospitality sector, Breier indicates innovation could be a solution during a crisis. Business model innovation is integrated during and after the crisis to establish new income streams. Despite the crucial roles played by innovation in the hospitality industry, there needs to be more information on how innovation boosts performance and the overall outcome of the business. Innovation is an expensive approach that can hinder adoption by various hospitality industries. In discussing the theoretical concept of creativity and innovation in the hotel industry, the author posts research questions to investigate if business model innovation can be a solution during a crisis. Moreover, Breier et al. (2021) enquire about triggers of innovation models in the hospitality sector during crises such as COVID-19.


Quality and service innovation is essential aspects of strategic business tools for improving performance in the hotel sector. The hospitality field is becoming more competitive hence the need to initiate practical business innovations for the sector. The central elements in innovation are the establishment and application of several innovative and new aspects for boosting performance. Researchers (Dzhandzhugazova et al., 2016); (Chivandi et al., 2019); Molina-Castillo et al., 2023) agreed on the impacts of developing new approaches to inspiring employees in the sector to meet the business goals of satisfying customer needs. Various theories are coined to explore creativity in the hotel and tourism industry. These concepts include the expectancy theory of motivation, social exchange theory, management theory, the Otus theory of supply and demand, rational exchange theory, and the practical concept of inspiration. Other concepts include management theory, service-marketing theory, learning theory, and theory of innovation. Each concept is integral in extrapolating the impacts of creativity and innovation in the hotel sector and how it is perceived. Innovations facilitate the hospitality industry to harness the authority of customer satisfaction and great efforts in improving performances. My position in the innovation concept is a crucial tool to boost innovations in service, market, product, and management aspects.


Breier, M., Kallmuenzer, A., Clauss, T., Gast, J., Kraus, S., & Tiberius, V. (2021). The role of business model innovation in the hospitality industry during the COVID-19 Crisis. International Journal of Hospitality Management92, 102723.

Chivandi, A., Samuel, M. O., & Muchie, M. (2019). Expectancy Models and Work Related Service Innovation and Service Quality Orientation as a Business Strategic Tool in the Tourism Sector. Tourism-Perspectives and Practices.

Dzhandzhugazova, E. A., Blinova, E. A., Orlova, L. N., & Romanova, M. M. (2016). Innovations in

Hospitality industry. International Journal of Environmental and Science Education11(17), 10387-10400.

Molina-Castillo, F. J., Meroño-Cerdán, A. L., Lopez-Nicolas, C., & Fernandez-Espinar, L. (2023). Innovation and Technology in Hospitality Sector: Outcome and Performance. Businesses3(1), 198-219.

Shukla, B. (2017). Innovation in the hospitality industry: a general overview. Iconic Research Engineering, pp. 27–30.


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