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In the context of the hospitality or the cruise industry, you must first discuss, and critically analyse, the importance of service innovation.
Whilst innovation is fundamental to the evolution of many industries, in regards to the hospitality industry, service innovation is undeniably critical to the present and the future success of operations within the industry. The main goals and anticipated outcomes to follow after implementing service innovation methods are improving the guest satisfaction levels thereby boosting revenues and profits. This report will analyse and evaluate the importance of service innovation and how it is inextricably linked to service quality through the use of theory-based literature.
Service innovation by its very nature brings about change as it is the introduction of new or novel ideas that focus on services that provide new ways of delivering a benefit, new service concept, or new service business model through continuous operational improvement, technology, investment in employee performance, or management of the customer experience. When implementing any of the service innovation methods, it is expected to meet with different types of support and resistance, and operations must therefore have strategies in place for addressing this. In order to understand how effective their methods of service innovation are, organisations must ensure that their innovation’s are as data-driven as possible, some methods include asking guests and employees for new ideas, creating surveys to generate quantitative data or measuring service changes as they are initiated.
Staff play an integral role in service innovations as they are the ones who deal with customers/ guests face to face and are ultimately responsible for the overall image of the operation. Within the hospitality industry, human resources management is widely recognized as one of the most influential factors for the success of service innovation, as employees are the ones who know customers the best and are the determinant of the quality and features of the service finally provided. Furthermore, Chang et al, noted that human resource management practices (i.e., selection and training) are the antecedents of incremental and radical innovation in hospitality companies. It could therefore be argued, that staff hold the most power in terms of deciding whether or not the business will be successful therefore, it is very important to ensure that staff are well trained, feel valued and are taken into account when considering potential service innovation techniques. Training staff is a well skilful process as studies on human resources management systems has shown that effective training yields multiple benefits for the hotel industry, such as increased job satisfaction, improved service quality and productivity and decreased turnover intentions. Hu et al. suggests that in order to achieve high levels of service innovation performance, organizations first need to develop knowledge-sharing behaviour, as well as a better team culture.
Service innovation is a necessity for any hospitality business as the industry encounters increasing competition as the hospitality market is full of many similar, often easily substitutable service offerings.
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