ARTICLE SUMMARY INDIVIDUAL ASSIGNMENT HPT30303 L3T2

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PRODUCT INNOVATION IN TOURISM

THE CHANNELS FOR INNOVATION IN TOURISM INDUSTRY

Regulatory framework: Health and safety standards Taxation Labour legislation Environmental regulations

Territories and infrastructures Public authorities’ innovation action and policing concerning: The national and cultural heritage Transport infrastructure

The technologies: Equipment Supplies Substitute industrial products

The profession: Dissemination of studies, conferences Good practices Certification, standardisation Links with research

THE FRAMEWORK OF INNOVATION IN TOURISM

Self-organised customised tourism • Form of uncertainty: radical • Competition: On the basis of prices and originality of activities

Organised, customised tourism • Evaluation of quality: satisfaction of individual expectations, importance of service • Form of uncertainty: uncertainty vis-à-vis others • Competition: quality-based

Simple tourism • Evaluation of quality: conviviality and relationships • Form of uncertainty: of little importance • Competition: on prices and proposed attractions

Fordist tourism • Evaluation of quality: price • Form of uncertainty: quantifiable risk • Competition: price-based

LEVEL AND PACE FOR INNOVATION IN TOURISM

The level and pace of competition

With the maturity of markets, heightened technological change in the IT field and the slowing of demand, in many parts of the industry rivalry has turned into ruinous competition.

Demand drivers.

New life styles appeared through flexible working times, higher incomes, more leisure time and the changing value of holidays

Supply and supply–related determinants.

In tourism, technology created a new form of business called e-tourism, which today is the biggest force in e-commerce.

TWO SIDES OF PRODUCT INNOVATION

The external side- Product innovation focuses on the consumers needs and the owners expectations

Internal side- It depends on knowledge, capacities, resources and the technologies used in the company

Product Innovation

1. New products in catering 2. Trendy / more comfortable hardware in the hotel room 3. New wellness hardware and applications 4. New architecture/design 5. Customer loyalty programmes 6. Price innovations 7. New destinations

Movers

Customers Competition Leadership in the industry

Goals

Lower costs Raise profits Increase customer value

CONCEPT OF PRODUCT INNOVATION IN TOURISM

The production and marketing of tourism products is distinct from industrial products and displays specific characteristics which often pose constraints or problems and hence serve as stepping stones for increasing the value of products via innovation.

Development of the old products which are produced already in the company with making modifications and partial changes in shape or product components. Innovating new products to realize market’s needs. Using new techniques in production process.

CONCEPT OF PRODUCT INNOVATION

It focuses on existing markets for existing products, differentiating through features and functions that current offers do not have.

The development of new products, making changes in the current product design or using new techniques and means in the current production methods

The presentation of new or significantly improved services to customers.