Unit 38- Concepts and Innovation in Hospitality Assignment Sample

PART A: Pitch Presentation

Enclosed in PPT

PART B: Pitch Document

Introduction: Concepts and Innovation in Hospitality Assignment Sample

In the current times, the companies are implementing the wide range of emerging technologies to promote the innovation. For fostering the innovation, the hospitality companies are also implementing various technologies such as artificial intelligence (AI), machine learning (ML), big data, mobile technologies and others. In modern era, innovation is important for hospitality companies because it helps in differentiating themselves from their rivalries and attracts more guests. Emphasis on innovation is beneficial for hospitality organizations because it helps in elevating the experience of the guests, drives operational efficiency, reduces costs and modernizing processing through creative problem solving and smart technology. In addition, this pitch document will be based on innovation in the context of Marriott International Inc. This pitch document will confer role of innovation in products and services as well as building competitive edge and brand development. This report will also highlight evaluation of macro and micro environment with the help of analytical tools such as SWOT, PESTLE etc.

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MAIN BODY

Role of innovation in product

Innovation is defined as one of the critical process by which products and services brought up and renewed by establishing new and successful ideas as well as introducing new techniques in order to create new values. In every business, innovation is important because it aids in gaining competitive advantage over competitors, meets customer demands and drives business growth which ultimately positively impacts on profitability and productivity. Focusing on innovation is also beneficial for the organizations because it helps in increase efficiency and productivity, attracts and retains talent as well as promotes resilience and sustainability (TROTT, 2012). In present time, the hospitality sector is becoming more competitive and hotels are differentiates them by offering personalized services and experiences to the visitors.

Marriott is also focusing on leveraging emerging technologies and incorporating innovations in order to improve the experience of its guests, modernize operations and gain competitive edge over competitors. Innovation plays an immersive role in brand development of Marriott by improving guest experience, operational efficiency, remain competitive and meeting the expectations of the customers. Integrating new ideas and emerging technologies allow chosen hotel to provide more memorable and personalized experiences of the guests which increases customer satisfaction and repeats business. Along with this, innovation also helps Marriott in developing its brand by improving the efficiency of the overall operations. Modernizing processes such as room service, check-in/out and managing usage of energy facilitates reduce costs and greater efficiency (Lestari et al, 2020). The hospitality sector continuously evolves and chosen hotel is focusing on innovation to remain competitive in the market. Hotel innovation aids in ensuring meeting and exceeding expectations of the customers while delivering cutting-edge experience.

Furthermore, innovation plays a critical role in products and services which are provided to the customers in order to increase their satisfaction and improve experience. Marriott is service sector and it majorly focusing on innovation to improve experiences of the customers. With the help of innovation, chosen hotel is providing the quality and efficiency of its services to enhance guest’s experience. By integrating innovative technologies, the hospitality companies are continuously innovate in their services that helps in differentiate them from the rivalries and attracting the preferences and attraction of the customers.

On the other hand, innovation is playing a pivotal role in maintaining the competitive advantage in the business. Innovation allows Marriott to differentiate its services, increased performance and sustain competitive edge in the market. In today’s changing environment, every organization requires to continuously introduce new services and adopt the new conditions in order to meet the requirements of the competitive market (Bouncken, Kraus and Roig-Tierno, 2021). Making investment in the innovation is beneficial for the hospitality sector because it helps them to provide the opportunities of redressing the business problems and face issues in the changing place of market. Innovation helps the chosen business in increase its competency in creating and sustaining competitive edge, promoting prosperity and accomplishing desired goals and objectives. Adoption of innovation is beneficial for the hospitality companies because it helps in improve efficiency and reduce waste which ultimately positively influences on the overall operation and efficiency.

Types of innovation approach

There are wide range of innovation that adopted by the companies to improve the quality of goods and services as well as brand development and gain competitive advantage. Disruptive, incremental, radical, architectural, design thinking etc., are considered as the significant types of innovation. Incremental innovation includes making small enhancement to the accessible products and services as well as processes. Adoption of incremental innovation is beneficial for hospitality while changing in the services because it includes less risk, gain competitive advantage, retaining customers and cost-effective approach. On the other hand, destructive is another type of innovation that undertaken by the companies to make the modifications in their existing products and services (Stojanović and Stanković, 2021). This type of innovation helps the hospitality business in in creating the value network and new market that replace existing one. In this innovation, hospitality companies are creating the new innovative market instead of introducing the new services. Adoption of destructive innovation is beneficial for the companies because it assist in creating new value, improving quality, increasing accessibility and driving the social change which ultimately positively impacts on the profitability and efficiency of the business.

Design thinking is another type of innovation that used by the companies to make the changes in the services. Design thinking is a critical approach and mind set to innovation and problem solving that are used by the companies to add unique and effective changes in the services. This type of innovation has four phases such clarify, ideate, develop and implement. Adoption of design thinking is beneficial for the hospitality organizations because it helps in empowering team members to tray new approaches and fuelling continuous enhancements and innovation. For design thinking the hospitality organizations are focusing on Standford model. It is considered as one of the powerful tool for the companies in order to solve the critical issues with creative solutions (Bodlaj, Kadic-Maglajlic and Vida, 2020). This model of design thinking is consist of various process such as understand user’s needs, define problem, generate solutions, make new and tangible idea and get feedback from them.

Adoption of Standford model is beneficial for the companies because it helps in understanding the demands of the customers and coming up with evaluating ideas and testing all the solutions. From above all innovation, Marriot is adopting disruptive innovation because it adding the new features and innovative ideas in the existing hotel services in order to increase the satisfaction and improve experience of the guest. Adoption of this innovation is beneficial for Marriot because it assist in creating new markets, improve efficiency, increase competition, encourage innovation and reduce barriers to entry. Disruptive innovation forces the chosen business to think out of box to bring the innovative ideas. In addition, this type of innovation inspires and encourages the entrepreneurs of Marriott to pursue business models and new ideas to provide better and high quality of services to the customers (Hanaysha et al, 2022). Apart from this, Marriott will plan to integrate the emerging technologies in order to deliver the laundry services with the help of robotics. Adoption of this innovation will be beneficial for chosen hotel because it helps in improving the experiences of the guests. This robot helps in picking up dirty laundry from guest’s rooms and delivers clean back to them without interaction of human. This innovation will be useful for Marriott because it aids in save time and increase efficiency of guests and staff of hotel.

Feasibility of the concept

STP of nee innovation (Robotics in laundry services) is as follows:

For the growth and success as well as promote the innovative services in the competitive market, Marriott international is focusing on segmenting its target customers and position they offer. For this, the chosen business is adopting one of the significant tools of marketing i.e. segmentation, targeting and positioning (STP). It is one of the largest chains of hotels in the world so its STP includes wide range of marketing decisions. In addition to this, segmentation is defined as categorizing the market into smaller groups of the customers with the same needs, wants and behaviours (Rosyida et al, 2020). For segmenting the customers, the companies in hospitality sector engaging in various variables such as geography, demography, behaviour and psychographics.

Marriott international is segmenting its customers on the basis of demographic, geographic and behavioural. In the context of democratic, the hotel companies are categorizing the customers on the basis of age, income level, gender etc. The target customers of Marriott are the people who have age in between 30 to 60. This is one of the luxurious hotels so it is likely to provide the services to the people who have high income. In the term of gender, chosen business it’s providing the services to both male and female. The hotel companies are also segmenting their customers on the basis of geography such as country, region, type of location, city etc.

Along with this, Marriott is providing its services in wide range of locations such as Europe, North America, Asia-pacific, the Middle East, Latin America, Africa etc. After segmenting the customers, Marriot is emphasis on targeting them. Targeting is one of the critical processes of choosing one or more determined segments to emphasis on marketing efforts. Usually, companies targets segments that are most probably interested in the products and services (Garachkovska et al, 2021). Target market by Marriott international is the individuals who have competency to pay for the luxury services. The target people of the chosen hotel are who have upper upscale class. Marriott is targeting business, luxury and leisure customer segments. Apart from this, positioning is connected with creating a unique and innovative identity of products and services in the target customer’s minds. Effective positioning includes illustrating the key characteristics and benefits of the products and services as well as communicating to the customers in a way that differentiates the products from the competitors.

Marriot is one of the leading hotels in the world that provide luxury services to the customers. Even today, this brand is not compromising in the quality of its services to increase satisfaction and improve experience of the customers. Whenever the brand of Marriott comes in mind’s guests then they think about the luxurious hotels in reasonable price. Hence, in today’s scenario the positioning of Marriott international Inc. is with luxurious and innovative services and amenities.

Micro and macro environment

For innovating the products and services it is crucial for the companies to evaluate the micro and macro environment. For the analysis of micro and macro environment the companies are implementing various tools and method such as PESTLE, SWOT, Porter 5 forces etc. Before implementing the disruptive innovation Marriott also understands the micro environment with the help of SWOT analysis which aids in determine opportunities, evaluate risks and build effective strategies.

SWOT analysis

Strengths

Global presence, market leadership, loyal customers, highly innovative is considered as biggest strengths of Marriott International Inc. In the world, it is one of the largest hotel companies by the accessibility of the rooms. Chosen business has more than 36 brands in more than 141 countries and territories. This extensive network provides several options at the time of selecting accommodations and increase brand recognition. This organization provides values by exploiting technology and innovation effectively and efficiently (Parker, 2024). From homes ventures and villas to wallet free experience, innovation process helps this hotel to gain success.

Weaknesses

On the other hand, intense competition and data security concern are the biggest weakness of Marriott. Chosen business is operating its operation in highly competitive market because it has several competitors such as IHG, Holiday inn, Airbnb etc. The high competition leads to eroding profit margins, price wars and making difficult for it to grow its market share.

Opportunities

In addition, for the growth and success, Marriott has opportunities of expansion in emerging market and leveraging technology and innovation. This organization can make significant investment in emerging technologies in order to streamline operation and experience of guests, enhance personalization and optimize revenue management.

Threats

Apart from this, with the opportunities, this organization also has various threats such as economic downturns, high competition, regulatory compliance and changes. The chosen business is require to follow all the rules and regulations as well as policies related to environmental, labour, taxes etc., which is complicated for it.

On the other hand, for analysing the macro environment, Marriott is also adopting PESTLE model which stands for political, economic, social, technological, environmental and legal.

Political

Government stability, regulatory framework, taxation policies are significant political factors that directly affects overall operation and efficiency of the organizations. Marriott operate its operation in several countries and political stability directly influences its operations. The political stability of the UK is strong so its government will provide support to run the business successfully and gain competitive edge over competitors by providing innovative services.

Economic

Changes in the inflation rate directly affect the overall function of Marriott. The inflation rate of the UK is constantly fluctuated and currently it is 2% which is lower than as compare to previous years (Clark, 2024). Low inflation rate will decreases operational costs encompassing, utilities, wages and raw materials which leads to increase profitability.

Social

For the brand perception and consumer awareness, Marriott is using social media to provide information about the offers and packages as well as innovative services to the customers. From this customers are easily share their experience in relevant to the services.

Technological

UK is highly technical country so the hospitality companies which are operate their implement various emerging technologies to improve experience of guests. By integrating technology, Marriott is providing service of digital booking platforms to the customers from which they are easily book the hotel rooms. By integrating innovative technologies, Marriot will plan to provide robotic laundry services to the customers which help in increase experience of customers.

Environmental

To protect the environment and safeguard the health of the consumers, Marriot is also focusing on implement sustainability initiatives. Focusing towards the environmental is beneficial for the hospitality business because it helps in attract and retain more customers. This innovative service will also help in reducing waste and pollution which ultimately positively influence on environment.

Legal

For the successful operation of the business, it is crucial for follow all the legal rules such as environmental, employment, health and safety, real estate and zoning laws, taxation etc.

Apart from this, for implementing the innovation in successful manner it is crucial for the companies to evaluate the competition level of their sector. For assessing the competition level of hospitality sector, Marriot is implementing porter’s 5 forces model.

The threat of new entrants for Marriott in hospitality sector will be low because it requires making huge capital investments in the advertisements and infrastructure. It is challenging for new entrant to arrange huge amount of capital. In addition, the threat of new substitutes for Marriott will be high because the competitors are providing various similar services to the customers at lower rates which directly affect the business models of its operations.

In addition, the bargaining power of the suppliers for Marriott in the hospitality sector will be low because of accessibility of high number of suppliers. This industry has powerful suppliers which can squeeze the profitability and incapable to recover increases of costs in its own prices. On the other hand, the bargaining power of the customers for Marriot will be moderate in the hospitality sector. The buyers in the hospitality sector can easily switch towards other suppliers at low switching costs. Certain group of customer’s exercise the bargaining power because of bulk purchase of hotel rooms such as domestic and international airlines tour operators (Dudovskiy, 2023). Apart from this, the hospitality sector is highly competitive for Marriot due to availability of large number of competitors. IHG, Hyatt, Hilton etc., are the biggest competitors of Marriott which provide similar services to the customers in order to increase their satisfaction and improve experience.

Budget and financial risks

Developing the innovative services is not an easy task for the hospitality companies because involves various financial risks which directly impacts its overall operations and efficiency. To transform the business operation towards the digital, Marriott Inc. is focusing towards the innovation by integrating emerging technologies such as artificial intelligence (AI) and robotics for automating laundry services to guests. For developing the innovative service, it will be crucial for chosen hotel to create an estimated budget. In addition, the estimated budget of the chosen organization will be 1.10 billion GBP for establishing innovative service. If the cost of innovation is more than estimated budget then it will be financial risk for Marriott. Along with this, financial risk is an important element that has an immersive impact on the profitability and efficiency which leads increased fluctuations in the returns (Al Dakheel et al, 2020).

At the time of developing the innovative services, the chosen organization will face the financial risks related to liquidity, operational and credit risks. The timescale of developing the innovative service will be within next 6 months. Apart from this, for the evaluation of the financial performance, Marriott will implement various key performance indicators (KPIs) such as revenue per available room (RevPAR), average daily rate (ADR) and occupancy rate (Setiawan and Purba, 2020) With the help of these indicators, Marriott will measure the performance and take corrective action to fulfil the improvement gap.

Conclusion

From the above pitch document, it has been concluded that, innovation plays an immersive role in improving the quality of products and services. Focusing on innovation can be beneficial for Marriott International Inc., because it helps in developing brand, gaining competitive edge over the competitors. For establishing innovative service, Marriott is focusing on disruptive innovation. This organization will plan to develop innovative service i.e. robotics in laundry so it will require to conduct STP, SWOT, PESTLE, Porter’s five forces etc.

REFERENCES

Books and Journals

• Al Dakheel, J., Del Pero, C., Aste, N. and Leonforte, F., 2020. Smart buildings features and key performance indicators: A review.Sustainable Cities and Society,61, p.102328.
• Bodlaj, M., Kadic-Maglajlic, S. and Vida, I., 2020. Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs' export growth.Journal of Business Research,108, pp.466-475.
• Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2021. Knowledge-and innovation-based business models for future growth: Digitalized business models and portfolio considerations.Review of Managerial Science,15(1), pp.1-14.
• Caloffi, A., Colovic, A., Rizzoli, V. and Rossi, F., 2023. Innovation intermediaries' types and functions: A computational analysis of the literature.Technological Forecasting and Social Change,189, p.122351.
• Garachkovska, O., Sytnyk, O., Fayvishenko, D., Taranskiy, I., Afanasieva, O.M. and Prosianyk, O.P., 2021. Strategic management of brand positioning in the market.
• Hanaysha, J.R., Al-Shaikh, M.E., Joghee, S. and Alzoubi, H.M., 2022. Impact of innovation capabilities on business sustainability in small and medium enterprises.FIIB Business Review,11(1), pp.67-78.
• Lestari, S.D., Leon, F.M., Widyastuti, S., Brabo, N.A. and Putra, A.H.P.K., 2020. Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs.The Journal of Asian Finance, Economics and Business,7(6), pp.365-378.
• Rosyida, A., Heriyani, T., Fuadi, I. and Dinia, H., 2020. Strategy segmenting, targeting, dan positioning: Study on PT Sidomuncul.Journal of Islamic Economic Scholar,1(1).
• Setiawan, I. and Purba, H.H., 2020. A systematic literature review of key performance indicators (KPIs) implementation.Journal of Industrial Engineering & Management Research,1(3), pp.200-208.
• Stojanović, S. and Stanković, M., 2021. The impact of innovation on business performance.Knowledge-International Journal,45(1), pp.185-191.
• TROTT, P. 2012. Innovation Management and New Product Development. Harlow: Pearson. VALIKANGAS, L. and GIBBERT, M. (2015) Strategic Innovation: The Definitive Guide to Outlier Strategies. London: Pearson FT Press.

Online

• Clark, D, 2024. Inflation rate UK. Online. Available through: <https://www.statista.com/statistics/306648/inflation-rate-consumer-price-index-cpi-united-kingdom-uk/#:~:text=The%20UK%20inflation%20rate%20was,11.1%20percent%20in%20October%202022>
• Dudovskiy, J, 2023. Porters five forces of Marriott. Online. Available through: < https://research-methodology.net/marriott-porters-five-forces-analysis/#google_vignette>
• Parker, B, 2024. SWOT of Marriott. Online. Available through: < https://bstrategyhub.com/marriot-swot-analysis/>

Author Bio

Jazmine McCullough   4 years | MBA

Hello, students. I am Jazmine McCullough. I am a professional writer of management academic papers. When I was in university, pursuing my MBA degree assignments used to haunt me a lot. That's why I have written this blog to make sure that students don't face the issues I used to face. Alongside this, I also offer my assistance to students in completing their assignments. With 4+ years of experience in this field, I can assure you the best quality for your projects.