The significant competitive environment around the hospitality industry triggers the exploration of novel ways and elements of coherent performance. Although disruptive innovations in the hospitality industry are complex, it provides compelling opportunities. Moreover, its emergence cannot be bestowed upon the current pandemic, since it is considered to be as old as business itself. The aim of the chapter is to capture the role of disruptive innovation in enabling the hospitality industry to engineer business excellence. Also, the chapter attempts to provide insights into the potential disruptions that will rule the hospitality industry in the future. The recent findings from this field show that the hospitality sector has already begun to adopt innovations gradually to respond to consumer behavior transition driven by on-demand services. Finally, the author concludes with the assertion that disruptive innovations are pivotal in the survival and sustenance of the hospitality businesses.
TopIntroduction
The trademark of 21st century is the transformation of all kinds of organizational processes into a digital technology bed, as no disruption in business is workable without imbibing a technological headway (Joshi, 2018). In colloquial language, the term ‘disruption, is often identified with a sense of breakthrough that occurs in dynamic markets. However, the specificity of this understanding of disruption cannot be overemphasized, since it conveys different entities to different individuals. Despite this, the penetration of disrupting innovations has ushered in new era in service sector, and the resultant structural change is influencing market structure, the networks and the service that hospitality players are assumed to employ.
Over the past decade, the hospitality industry has witnessed rapid change, with novel technologies, virtual platforms and markets unfolding new capabilities of all kinds to the industry including mobile check-in and robots doing the job of housekeepers to self-ordering restaurant menus. These innovations are beginning to influence customer’s experience in the service sector. In fact, disruptive innovations are introducing novel solutions and superior services to attract customers. Enterprising business models such as alternative accommodation (Airbnb, HouseTrip, etc.) and ride-sharing platforms (Uber) are leading from the front in influencing the individual’s perceptions towards conventional hospitality businesses (refer to hospitalityinsights.ehl.edu).
The significant competitive environment around the hospitality industry triggers the exploration of novel ways and elements of coherent performance. One of the fundamental swings in this sphere is the development and application of a variety of innovations and new elements that can serve as a powerful stimulus for the growth of the hospitality industry. Innovations of all forms are pivotal for both the possibility and competitiveness of hotel enterprises. The methodical and pervasive usage of innovations to guarantee the growth of enterprise performance is now acknowledged by a diverse group of researchers and practicing managers (Dzhandzhugazova et al., 2015). Although disruptive innovations in the hospitality industry are complex, it provides compelling opportunities. Moreover, its emergence cannot be bestowed upon the current pandemic, since it is considered to be as old as business itself. It is generally looked at as a considerable change that tends to alter dramatically an industry. Also, it can take different forms, including product and service innovations, changes in operating processes and models. Ultimately, the intent is to continuously pay attention to novel and improved ways to cater to the needs of the customers and steer the market.
With this background, the current chapter endeavors to capture the role of disruptive innovation in enabling the hospitality industry to engineer business excellence. Also, the chapter has provided insights into the potential disruptions that will rule the hospitality industry in the future.