CHTM37 – Current Practices in the Visitor Economy

Assessment 001
Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Theoretical Definition of the Innovation................................................................................4
Innovation within Services.....................................................................................................4
Innovation within Tourism.....................................................................................................5
Topologies of the Innovation within Sector of Tourism........................................................6
Innovation Challenges within Tourism..................................................................................7
Case Study..............................................................................................................................7
Recommendation & Conclusion................................................................................................8
References..................................................................................................................................9
Introduction
The Innovation has been emerging as the driver for the economically & the prosperity within
numerous countries. Adding to it innovation proves to be a great advantage for the firms
competitively, & an auspicious result for the Industries of service. Although the sector of
service provides a great role within the development of the economy. Many of the developed
countries have shown their keen interest in innovation. The United Nation has given their
significance by numerous forms of reasons. “First: In most of the economies services are
being the highest productive sector, the competition in boards sense of term is bought by
efficiency and growth of services. Second: Various products which have been completed in
domestic & international markets are the crucial inputs of many services. As the importance
for the information & the economy on basis of knowledge is rising, the specific service type
shares within numerous activities are growing or enhancing. Third: The advanced
technologies like communication and information help greatly in trading services. Tourism
within the service sector brings out a huge role in developing the economy within many
countries as the tourism offers employment & income to the country & helps in economic
growth that nation. The importance it has & the globalization its economies, brings an
increment in the competition of this sector, the growing competitiveness of tourism sector.
Thus, it is the dominant & the significant key to raise competitiveness that lies under the
innovation. According to the recent studies the authors specifies that the innovation in the
field of manufacturing and services are quite related to each other, however the studies of
innovation within the tourism are still at their beginning.
Discussion
Theoretical Definition of the Innovation
The strategy of the Lisbon which has thrown the huge challenge within the countries of the
European union whenever it is called for such type of economic space for becoming the
region with economic competitiveness. Such kind of challenges need to be carried out by the
help of investment within human capital, entrepreneurship & the innovation. Consequently,
research & innovation comprised with the crucial or important role within enhancing the
firm’s competitiveness (Edquist, 2019).
The concept of the innovation in economic terms is elaborated by the researchers as
developing new processes, newer products, new sources & the new markets for the material
that is in raw form. Thus, it means to shape the organization of industries in new one. Within
the Economic, the thought of the creative type destruction as the source of new cycle of
economic & linking of innovation with the growth economically. Also, the innovation
highlights several forms of different approaches or methods which are capable in dealing
with economics of the innovation of industries, differences along with industries. And, also
the role which has been played by the capabilities of firm-level within learning & innovation
(Morgan, et al., 2018).
Furthermore, the innovation has described as the enlargement & renewal of varied range of
services & products & the market associated with it. The establishing of the newer approach
or methods for the supply, production & the distribution. The introducing of the modification
within management, conditions of the work, work organization & the workforce skills
(Kogabayev, et al., 2017).

Innovation within Services

The largest and strongest productive sector is services sector in OECD economics. Some of
the authors had conducted various research in service sectors. The diversity in the activities
which includes the service sectors, made it hard for defining the services. Firstly, the services
are classified in form of the non-productive type of activity. Economists characterized the
services and products as “the thing which is sold by trading should not drop on our feet”.
Below table refers to some definitions in innovations occurred in services (Eide, et al., 2017).
 The service of innovations are the smaller adjustments for the procedures therefore
incremental are hardly radical. The processes of service innovations are normally
practical.
 With respect to the definition the service innovations are multidimensional. For e.g., -
manufacturing. The Service innovations has been characterized to more on
organizational dimensions of the innovations (new concepts of service, new interface
for clients and a new system for delivery) relates to options of technology.
 The Service innovations is the incremental process, that comprised with two elements:
o One is the non-technological element, which depends upon intangible human
resource, organizational infrastructure and on the factors which could add the
value to the service of customer (distribution channels, marketing etc.)
 o Second one is the technological element, it is inseparable nowadays, from the
initial component, it is dependent upon the technology, especially
communication and information technologies (ICT) (Gallouj, 2018).
The service innovations include many area changes, sometimes the process innovations and
the product innovations are not separated. new services product, and the new complete
process for the manufacturing and delivering, and new structural forms and overview to the
new technology and in “maximum of the cases are not stored, it should be formed within
momentum of the consumption”.
We have been following the service innovation classification set by researchers. As per the
Researchers, “The service innovations are categorized to the four types: Process innovations,
product innovations, market innovations and organizational innovations”. The organizational
innovations have been described as “the new forms of the management or the organization
such as groups of self-steering, introduction to the TQM, etc.”. The process of innovation
“are the renewal of prescriptive procedure for the delivering and producing services” and it
could be classified into the two categories: - The first one is the innovations within the
making process (back office) and the process of delivery (at front office). The market
innovation is the new behaviours to market, that is such as the newer market’s segment or the
entry of other sort of industry within such market (Djellal, et al., 2018).

Innovation within Tourism

The study that is on basis of the innovation in the tourism is within their infancy. There are
numerous explanations that are behind this minor quantity of the scientific studies within
such sector (Tourism). The basic definition for the products of tourism as combination of
numerous components that has comprised with complicated experimental lessons. The
products of the tourism are able to comprise with elements that are tangible or intangible. For
e.g., the destination that could be identified within any type of several suppliers that are like
restaurants, hotels, firms for rental cars, firms for entertainment, guides for tourism & many
more. Moreover, the tourism sector is not only just about the construction of services or the
goods. Numerous characteristics of the intangible elements has been embodied within the
people as single or individuals. The features that is cultural & sociological of the tourists &
local population behaviours that could be influenced by the experience of tourism.
Researchers have defined the product like tourism as the experience (Marasco, et al., 2018).
Other type of complexities that are linked within the appearances of the product of tourism
that are like, consumption, coterminality & simultaneous production. The heterogeneity that
is of high level has the characteristics of sector of tourism. The golf courses & the
international hotels couldn’t be compared with the accommodation of family-run & the
smaller restaurants. Some researches on the entrepreneurship & the innovation finds out that
restaurants & hotels consists with the low amount of the survival. Thus, they have the typical
industries with low type of barrier at entrance, it is simple for the people in establishing the
newer firm based on the non-innovative ideas. The features of the sector of the market with
the competitiveness if high level accommodate firms for innovating in order for keeping up to
the mark of competition. Also, firms for tourism founds that it is more complex for protecting
the innovation & copying the competition is highly simple. This is due to such kinds of firms
need to be innovated in constant manner for keeping up their competitive benefit. The
explanation of the competitive benefit, productivity has been linked with the quality & the
efficiency of the production. The firms of tourism which invest within diversification of the
product & quality are rapidly comprised with more competitiveness. Although, the quality
alternation could contribute toward the proper strategy of price. Consequently, the innovation
if important for reduction of production costs, offering value of the product & the market
enhancement (De Martino, et al., 2018).
The path in achieving such kind of results shouldn’t be done by reduction of the costs by
offering low pays. The industry of tourism within many scenarios absorbs the unemployed &
less skilled people. This feature, that is highly common within the SME’s, could able to
restrict within such sector. So, the competitiveness in the sector of tourism & their adoption
for the newer environment of market depends on the investing within the staff quality & their
managers. The specificities of sector of tourism are capable in influencing the innovation,
while several researchers have pointed out the potential for higher type of activity for
innovation within tourism sector (Elche, et al., 2019).
The sector of the tourism is influenced recently by different factors. Some of them could be
identified & comprised within the innovation of the tourism:
 First of all, the globalisation has been leading to the deregulation & enhanced
competition within the sector of tourism. Nowadays, the quantity of the tourists has
been enhanced & they comprised with simple access for more markets or regions. The
consumption of tourism has rapidly growing & the sector have been extended within
newer economics. In such point of view, tourisms & firms’ destinations have adopted
to the newer reality & development of strategies for improving or maintaining
tourisms competitive benefits.
 Secondly, the profile of the tourists has been modified. The tourists are becoming
highly experienced & also informed. The ICT are the facilitated access for
information & increases within demand of the alternative & with higher sophisticated
products. The tourists are now highly independent & could be able to self-organize
their holidays.
 Last, the sustainability is important for gaining the competitive benefits. The firms of
the tourism need to be managed within line that is with multiple key dimensions that
are such as: social, environmental & also the economic.
So, the globalisation has experienced the sustainability & demand which need to be taken
within consideration at time of planning the strategy for the firm for gaining the competitive
advantages (Carvalho & Costa, 2011).
Topologies of the Innovation within Sector of Tourism
The Theory of the sector of tourism need to be developed. Thus, referring to the industry of
the tourism as per the researchers, causes of the invention could be located outside of the
sector of the tourism. So, the vital in development of innovation via the interaction with the
other agents which couldn’t be directly relates with the industry of tourism. The topologies
which have been identified within 3rd edition of Manual of Oslo could be adopted within the
sector of tourism, & resulting in classification of forms of innovation for the sector based on
the tourism. Such as, innovation of product (incrementally modified or radically the new
service or good which could be commercialised; innovation of process (implementing the
modified incremental or radical type of newer process of production or method of delivery);
innovation of organization (implementing the new modified methods of organization or
managerial type) & innovation of marketing (implementing newer modified planning which
develops the market of sales) (Iqbal, et al., 2019).
The organizational innovation which is for the hotel has relatively researched. The business
of the hospitality is able to develop the innovation for specific set of objectives that are
related to the performance of business. Such study comes within conclusion that various type
of approach for the development of innovation related to organizations seem to be highly
dependent on such kind of objectives. According to the researches, 185 innovation within
management of hotel, author has identified multiple dimensions of the performance:
performance of market, performance of financial type & enhanced relationship between
customer & employee.
Innovation Challenges within Tourism
Globalization – It has been leading creation of protocols & the standards of uniform. So,
the USP (Unique point of Selling) for the companies of travelling lies within offering
unique & rare experience (Alkier, et al., 2017).
Taxation – It has been one of highly taxed type sectors. The simple glimpse at paid taxis
on tickets of airline & rooms of hotel offer the idea of how the taxation could affect
greatly to sector of tourism.
Travel Marketing – the market of travelling could be sometime get deemed by the
travellers or the tourists as being false, adequate, or even exaggerated.
Security – The players of industry work in establishing better kind of infrastructure for
security of the tourists & their travellers.
Infrastructure – The tourism infrastructure within many locations is either
underdeveloped or outdated (Moisey, et al., 2008).
Case Study
The case study is functional for the Oriente Tivoli Hotel. Thus, the hotel belonged to the
chain of Hotels of Tivoli that have been operating for almost seventy-five yrs. & comprised
with the image of marketing that has linked with prestige & luxury. The Hotels of Tivoli
belonged to the Group of Portuguese Santo Espirito, that had been presently owns approx. 12
hotels within Portugal & 2 of them within Brazil. In this view of persistence of the research,
two of hotels (the Tivoli Coimbra & the Tivoli Oriente) in the group of Tivoli that had found
for implementing the IMS (system of integrated management) which carries out altogether
certification for quality, security & environment (Costa, et al., 2011).
The Hotel of Tivoli Oriente has been located within the Lisbon & nearby the International
Airport of Lisbon. The hotel comprised with 279 rooms & its market within tourism business
& leisure. Thus, hotel comprised with bar, 2 restaurants & one of them consist of the capacity
of almost 180 people & eleven rooms for meeting with the capacity within the range of 10 to
260 number of people & are well equipped with the audio-visual kind equipment. Below
show table is presenting the IMS benefits.
It facilitates the systematic path & able to track the activities which is able to influence
safety, quality & environment.
Reduction of the bureaucracy within organization
Minimization of the conflicts that are potential of goals within the system at time of
viewing individually.
 Offering employee with the better understanding about the safety, quality & environment
dimensions standards.
Reduction within costs that are related to the systems of certification & audits
Saving resources
Facilitating within integration of multiple subsystems in management of organization
globally.

The implementing of the integrated type of management system crated several problems
(Carvalho, 2011). Also, difficulties in the organization that are like:
 Resistance for modification by several employees for working under the controlled &
organized type system;
 The complexities for the people with lower level of the education & no technical type
of training within several fields;
 Enhancement within bureaucracy;
 The awareness for the business partners & authorities;
 Concept’s incompatibilities (for e.g., conflict within areas of quality &
environmental)
Recommendation & Conclusion
This section has categorised within multiple parts as per the studies objectives. First, for
discussing about the innovation within service meant, with specific emphasis on the
innovation within tourism & hospitality by presentation of the data on subject. Secondly, for
applying the research by help of case study by the group of international hospitality. Below
shown table is on basis of the methodology of case study & enables results discussion &
validation of the hypothesis. The initial aim that has achieved by the organization about the
issue of the innovation of tourism within recent yrs. & also the comparison of approaches that
are theoretical applied for the innovation (Gallouj, et al., 2018). Within line of the innovation
service has been defined by the authors, the case study helps to reveal that if any firm is able
to develop the procedure set within integrative path which consist the complete organisation,
such innovation is able to become radical type. So, if any actions have been isolated then the
innovation if incremental. The discussion of this perspective, enables us in concluding that
there are multidimensional kind of character for services innovation. The IMS need that
overall department are required to be involved actively. The limitation & results for the
implementation are capable in bearing out the emphasis on the dimension of organization.
Finally, the nature of incremental produces the introduction for the innovation in radical form
for such case study.
As per the above essay, the added value from such case study, that is the principally with
improved understanding on how the hospitality organizations are capable in transforming the
set of procedures which are isolated. Thus, into the Integrated management System (IMS)
with a huge effect on the presentation of the firms. The second moto intended to be applied
within research of the case study for the international group of hospitality. Such goal had
been achieved by development of the research of the case study which has been applied for
the Hotel Oriente Tivoli. The implements of the hotel within IMS which has enabled
certification as the whole within multiple dimensions. The results that are of the empirical
study enables for testing of the hypotheses & below shown table offers the summary about
the testing (Sundbo, et al., 2017).
Hypothesis Result
H1 Implementing of the Hotel IMS is innovation of radical form. Accepted
H2 Implementing of the Hotel IMS pays mainly for the innovation of the Accepted
organization.
H3 The Firms are able to use the politics within the sustainability in form Accepted
of strategy for the innovation & also differentiation from their
competition.

Lastly, the conclusion of the essay enables for identification of the research which have been
adapted for the characteristics of the firms for hospitality. The Discussion & analysis of the
hypothesis & work i.e., empirical, confirms following statements: a) the implementing of the
integrated system of Hotel management need to be categorised within radical form of
innovation; b) the Implementing of the management of integrated system of Hotel are capable
in contributing primarily to the innovation of the organization & also been dependent on
values of their users in the firms; In such context, the culture of the organization becomes
highly essential; c) Firms need to use the sustainability in form of strategy for innovating &
differentiating from the competition.

References
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