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through Innovation
Achieving Success
through Innovation
Cases and Insights from the
Hospitality, Travel, and Tourism
Industry
Cathy A. Enz, Sheryl E. Kimes, Judy A. Siguaw,
Rohit Verma, and Kate Walsh
Edited by
Glenn Withiam
Achieving Success through Innovation: Cases and Insights from the Hospitality,
Travel, and Tourism Industry
Copyright Business Expert Press, LLC, 2016.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any
meanselectronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.
First published in 2016 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-043-8 (paperback)
ISBN-13: 978-1-63157-044-5 (e-book)
Business Expert Press Service Systems and Innovations in Business and
Society Collection
Collection ISSN: 2326-2664 (print)
Collection ISSN: 2326-2699 (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd.,
Chennai, India
First edition: 2016
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
This book investigates the genesis and success of innovation in the hospitality industry as detailed in over four dozen case studies. In many of the
cases, the innovators themselves provide the insights into their innovative inspiration and the lessons learned from the way they brought their
ideas to life. The cases include innovations for improved customer service,
stronger human resources, and new food service and lodging c oncepts.
While updated technology forms the basis for many of the innovations,
some of the cases focus specifically on technology improvements, with
a particular focus on the use of technology as a mediator in the service
value chain.
With the passage of several years, the book shares the outcome of
the innovative conceptsmost of which continue to operate. The lessons presented will provide you a valuable perspective on success through
innovation, whether you are operating in the hospitality industry or
another business.
Keywords
customer service, food-service concepts, hospitality innovation, human
resources, innovation, innovation strategy, international hotel operation,
lodging concepts, technology innovation
Contents
Forewordix
Acknowledgmentsxi
Chapter 1 The Nature of Innovation..................................................1
Chapter 2 Improving the Customer Experience..................................7
Chapter 3 Better Human Resources for Improved Operations..........31
Chapter 4 Sustainability Innovation.................................................45
Chapter 5 Applying Technology for Corporate Success.....................73
Chapter 6 Innovative Restaurant Concepts.......................................93
Chapter 7 Lodging Concept Innovation.........................................123
Chapter 8 Strategic Intermediation................................................145
Chapter 9 Achieving Success through Innovation...........................171
About the Authors193
Index197
Foreword
In 1998, a team of researchers largely based at Cornell Universitys School
of Hotel Administration investigated the best practices in the U.S. hotel
industry. The team examined 3,528 nominations for best practices and
selected 115 best-practice champions in eight functional areas, together
with 29 overall champions. These best practices were presented in a series
of articles published in the Cornell Hotel and Restaurant Administration
Quarterly (now known as the Cornell Hospitality Quarterly). The study
included an evaluation of customers assessment of the value created by
these best practices.1
Ten years later, two of the authors of that study joined the other
three authors of this book in developing an update that went beyond
best practices. This time, the researchers sought to present the hospitality
industrys most innovative ideas. Although best practices are valuable, our
contention was (and is) that in a competitive industry such as the hotel
and restaurant business, it is innovative ideas that truly create competitive
advantage. Best practices can be emulated, while innovations can be more
difficult to replicate (at least in the short term). Nearly a decade later,
we now have an even greater perspective on these innovations. All were
novel, to be sure, and many are going strong today. But some did not take
hold and others were swept away by economic or societal trends or by
internal issues that were not initially apparent.
In this book, we present the original case studies as they stood at
the time of publication by the Cornell Center for Hospitality Research,
between 2008 and 2010. This means that certain details are now out of
date, and some of the innovations no longer exist. As a consequence, we
provide an update at the end of this book. At the time, we presented some
cases in considerable detail, while providing brief summaries of other
innovations. We offered implications and lessons from the longer case
studies, and those implications remain with the cases. However, in the
See: Dub et al. (1999), 1427.
x Foreword
Reference
Dub, L., C.A. Enz, L.M. Renaghan, and J. Siguaw. 1999. Best Practices in the
U.S. Lodging Industry: Overview, Methods, and Champions. Cornell Hotel
and Restaurant Administration Quarterly 40, no. 4, pp. 1427.
Acknowledgments
We acknowledge the writers who assisted us in preparing the original
cases: Bill Daviau, Nigel Goodwin, and Justin Sun, and we appreciate the
editing work of Glenn Withiam, who reorganized the cases for this book
and was the original series editor for the reports published in the Cornell
Center for Hospitality Researchs CHR Reports series.1
It is in the spirit of advancing the knowledge of hospitality that these
innovators shared their ideas. In learning about innovative products and
concepts that are sources of success, we as researchers are provided opportunities to develop an in-depth examination of the issues surrounding
innovation and pass on great ideas. By studying both practice and t heory,
we develop new knowledge that benefits all of us. In total, the 55 case
studies that we presented were prepared in the hope that hospitality
managers and students would learn from and be inspired by the innovations of others. We thank those who have shared their ideas and helped to
make this goal a reality.
References
Enz, C.A., R. Verma, K. Walsh, S.E. Kimes, and J. Siguaw. June 2010a. Cases in
Innovative Practices in Hospitality and Related Services: Set 3. CHR Report
10, no. 10, pp. 626.
Enz, C.A., R. Verma, K. Walsh, S.E. Kimes, and J. Siguaw. August 2010b. Cases
in Innovative Practices in Hospitality and Related Services: Set 4. CHR
Report 10, no. 12.
Kimes, S.H., C.A. Enz, J. Siguaw, R. Verma, and K. Walsh. 2010. Cases in
Innovative Practices in Hospitality and Related Services: Set 2. CHR Report
10, no. 3.
Siguaw, J.A., C.A. Enz, S.E. Kimes, R. Verma, and K. Walsh. November 2009.
Cases in Innovative Practices in Hospitality and Related Services: Cornell
Center for Hospitality Research Set 1. CHR Report 9, no. 17, pp. 631.
See: Siguaw et al. (2009); Kimes et al. (2010); Enz et al. (2010a); Enz et al.
(2010b).
1
CHAPTER 1
Schumpeter (1942).
has an entire research thread of its own. The study of the creative person
includes personality traits, development, motivation, neuroscience, and
biology; the study of the creative process includes the steps creators follow
in their work; the study of the creative press includes the home, school,
and work environments; and the study of the creative product includes
determining whether and how a product is creative.6
In the cases presented in this book, we demonstrate how creativity
becomes innovation. These cases demonstrate both types of innovation
highlighted by Lucy Gilson and Nora Madjar.7 Some cases involve radical
creativity, which is associated with intrinsic motivation, is problem driven,
and comprises abstract theory-related creative ideas; others demonstrate
incremental creativity, which involves extrinsic motivation and ideas that
are solution driven and developed on the basis of concrete practices.
It is important to realize that innovation is integral to hospitality
firms strategy and their approach to the competitive environment. Thus,
one consideration for determining what is innovative relates to the strategic choices a firm makes and the setting in which the firm operates.
One could argue that innovation is an essential component of a firms
strategy because it provides direction for the firms evolution. That was
true at the time of our study and remains true today. Moreover, this view
is supported by a variety of studies that have found innovative firms to be
higher performers.
Other researchers have found that those firms that are first to introduce new goods or services (first movers) are able to gain benefits until
competitors imitate an invention. However, second movers (the nominal imitators) can also be considered innovative within their competitive
environment, because they are adapting an invention in a novel manner. Hence, a key component of this study is the exploration of how an
innovative idea, service, or practice has contributed over time to a firms
profitability and operating success.
Although the creative step of developing a new product or process
is essential, that inspiration is not sufficient to be considered innovative
in and of itself. Innovation requires converting an idea into a service or
Snyder (2016).
Gilson and Madjar (2011).
6
7
In particular, although we have created a separate chapter on technology, its impossible to ignore the way that technology is transforming
the world of hospitality across all categoriesboth in terms of the way
in which hospitality firms do business and, more critically, in changing
guests expectations for how hospitality firms should be doing business.
Thus, innovations in all chapters rely on technology. In that regard, technology, when used appropriately, can provide customers with increased
convenience and control, while it also can allow hospitality companies to
increase their speed of service, reduce their processing costs, increase their
volume and revenue, and improve service and product quality. We discuss
these ideas further in our chapter on technology.
All the hospitality trendsetters highlighted in the cases we present
here recognized the importance of developing an innovation that clearly
offered improved customer value. Placing customer needs at the forefront of product or service development and implementation has allowed
many of these firms to prosper. A few of these case studies are aimed
only at internal operations, while the vast majority stated or implied that
the customer experience, as delivered by the concept and the employee
service, is what drove initial consumer visits and what will determine any
repeat visits.
Our cases appear in two different formats. In one format, we simply
summarize the innovation, and in the other format, we go into considerable depth, explaining the development, execution, and implications of
the case. At the end of this book, we present a brief summary of some of
the overall implications that have been presented. We also take advantage
of the intervening time to report on the fate of the innovation and the
firm that developed it.
Some of the detailed case write-ups demonstrate the significance
of having the right people on the internal team and the right external
partners. Appropriately matched associates are those who share the same
enthusiasm, motivation, and zeal to work rapidly and in synchronization. Such cohorts facilitate critical internal and external communication
and strongly improve the chances that the innovation will succeed. Other
cases show the importance of trusting instincts and remaining flexible.
In that regard, several ideas grew or were transformed as the innovation
took hold. Another theme that emerges from the cases is the importance
of good service design. A number of operators used lean production techniques to streamline their service delivery system and enhance the customer experience, while others carefully studied the customer experience
to design their service.
Finally, although measurement was directly mentioned by just a few
innovators (and measurements were premature in many situations), it is
clear that empirical measures would be valuable so that innovations can
be rigorously assessed. Dub et al. encouraged the development of metrics that link a best practice to the subjective experience of the customer.8
Similar metrics must be forged for innovations. Objective measures of
the results produced by innovations allow the organization to be more
effective in directing its limited resources.
References
Dub, L., C.A. Enz, L.M. Renaghan, and J. Siguaw. 1999. Best Practices in the
U.S. Lodging Industry: Overview, Methods, and Champions. Cornell Hotel
and Restaurant Administration Quarterly 40, no. 4, pp. 1427.
Gilson, L.L., and N. Madjar. 2011. Radical and Incremental Creativity:
Antecedents and Processes. Psychology of Aesthetics, Creativity, and the Arts
5, no. 1, pp. 2128.
Plucker, J.A., R.A. Beghetto, and T. Gayle. 2004. Dow, Why Isnt Creativity
More Important to Educational Psychologists? Potentials, Pitfalls, and Future
Directions in Creativity Research. Educational Psychologist 39, no. 2, p. 90.
Rhodes, M. 1961. An Analysis of Creativity. In Phi Delta Kappan 42, no. 7,
pp. 3067.
Sawyer, R.K. 2012. Explaining Creativity: The Science of Human Innovation.
2nd ed. New York: Oxford University Press.
Schumpeter, J.A. 1942. Capitalism, Socialism and Democracy. New York: Harper.
Snyder, H. 2016. Psychology of Creativity. www.div10.org/creativity#sthash.
a2p0eWdp.dpuf, as viewed August 2016.
Solomon, Y. 2016. Innovation Needs All 3 Levels of Support, so What Happens
if You Miss One? www.innovationexcellence.com/blog/2016/04/06/
innovation-needs-all-3-levels-of-support-so-what-happens-if-you-missone/#sthash.DE00sy05.dpuf; and www.innovationexcellence.com/blog/
author/ysolomon/
Index
Applicant tracking systems (ATSs),
3435
Aqua by Grandstand, 172
execution, 4951
insights, 5152
outcomes, 51
structure, 4849
Brand Karma technology
development costs, 12
hoteliers and hospitality, 1112
insights, 1314
Microsoft project, 11
pricing structure, 12
search algorithms, 10
semantic differences, 10
service levels, 1011
Brewerkz, 172173
execution, 9799
flagship location, 96
Indoor Stadium, 9697
insights, 99100
outcomes, 99
Capellas 24-hour check-in and
checkout policy
brand service standards, 15
execution, 15
insights, 1617
outcomes, 1516
written service standards, 14
Cayuga sustainable hospitality, 172
community development, 53
global community, 54
hotel associates and guests, 5354
insights, 57
Lapa Rios Ecolodge, 5456
on-site sustainability and
management, 52
outcomes, 5657
Cheesecake factory, 3335, 173
198 Index
insights, 151
outcomes, 151
promoting off-peak demand,
147148
Electronic Reservation Book (ERB),
152
EnTrip, 75, 8184
execution, 8182
insights, 8384
outcomes, 8283
Food-service concepts
Brewerkz, 95100, 172173
Dans le Noir?, 95, 101
Heart Attack Grill, 95, 102, 176
Hotel Restaurant Abrona, 95,
100101
Iggys restaurant, 95, 103106, 177
LOuest Express, 95, 107, 179
POSH, 96, 111112
Praq, 96, 112, 181
Restaurant Freud, 101
Sakae Sushi and Apex-Pal,
113118, 183
Shangri-La Hotel, Singapore, 95,
107111, 183
Tastings, 118121, 184
Ubuntu, 96, 121, 185
Founding Farmers, 5758, 175
Global Positioning System (GPS)
tracking, 78
Harrahs, 33, 35, 176
Heart Attack Grill, 95, 102, 176
Hilton Garden Inn, 36, 176177
Hilton Hotels, 33, 35
Hotel Restaurant Abrona, 95,
100101
Hotels.coms Visualiser, 9, 177
consumer concerns, 19
easy-to-use slider bar, 19
execution, 20
insights, 21
outcomes, 2021
share feature, 19
surprise me function, 19
Index 199
200 Index