Discuss about the Innovation in Hospitality and Tourism Industries.
Dalata Hotel Group is a well-known and giant player in the global hotel industry. It is a multinational chain of hotel mainly situated in Ireland and United Kingdom. It was founded in July 2007 by Pat McCann, former chief executive of the Jurys Doyle Hotel Group. Dalata Hotel Group is the largest hotel chain in Ireland and it has developed its effective position in the global hotel industry. With more than 40 hotels across the nation, organization is leading the hotel industry of Ireland. Under this group, various big hotel brands exist such as Clayton and Maldron hotels. In relevance with the expansion of hotel group in the market, Dalata Group established 15 hotels in United Kingdom. This hotel group has acquired the leading position in the Ireland hotel industry in 2018 being the largest hotel operator. With the increased competition, organization has planned to adopt innovation in its operations so that the desired goals could be attained in the target market. With the adaptation of innovation strategies, Dalata Hotel Group will be able to expand its service area along with acquiring the leading and competitive place in the global hotel industry. Dalata Hotel Group has effective strategic capabilities, resources and competencies, through which an effective brand image could be developed in the competitive business environment (Dalata Hotel Group plc, 2018).
This essay will focus over adaptation of innovation strategies with the objective of attaining competitive advantage in emerging competitive business environment of hotel industry in international market. Further, essay will focus over effectiveness of strategies adopted by organization in relevance with innovation along with discussing alternative methods of innovative strategies for Dalata Group with the objective to gain competitive advantage in the market. Further, essay will focus over analysis of competition in the hotel industry in Ireland market.
In relevance with gaining competitive advantage in the target market, Dalat Hotel group will provide unique and distinct services from its competitors in the market. Innovation is the new idea or method through which performance could be enhanced of the organization. In terms of Dalata Hotel Group, innovation will act as the competitive strategy through which organization would be able to gain an effective image along with fulfilling its guest’s requirements. In terms of hospitality industry, application of innovative strategy could be viewed as an effective tool for improving customer satisfaction and the experience (Slåtten & Mehmetoglu, 2015).
Direct competitors of Dalata Hotel Group in Ireland are The Gresham Dublin Hotel, Fen Hotels, The Doyle Collection, and the Hilton Hotels & Resorts. Thus, it could be said that the competition in Ireland hotel industry is intense and Dalata Hotel group is of the giant player of the competitive hotel market. It is necessary for the hotel group to adopt certain effective and advanced strategies so that the goals and objectives could be attained along with attaining higher customer satisfaction and experience with the hotels of Dalata Group. Key acquisitions of Dalata group are Clarion Hotel Sligo, Tara Towers Hotel, Clarion Hotel Cork, etc. In relevance with acquiring the leading position in the competitive business environment, it is required for the organization to adopt certain advanced methods and innovative techniques through which the hotel group could set up its distinct image in comparison to its competitors (Owler Inc., 2018).
Innovation is a great concept for hotel industry because it has the capability to transform the industry in positive manner. In past few years, hotel industry has adopted various innovative strategies in relevance with satisfying customer’s needs and wants. Apart from this, hotels have segregated their services on the basis of customer’s requirements. Consumers stay in hotels for various reasons such as for business purpose, travelling purpose, and those who love to explore new destinations. Ireland is one of those destinations where number of tourist visits for different purposes. In relation with satisfying all types of tourists’ needs and requirements, Dalata Hotel Group has segregated their services so that the guest’s demands could be fulfilled in an effective and appropriate manner (Tarí, et. al., 2017). Apart from this, innovation also helps the organization to stay on the leading and competitive position. Change management is necessary for every industry and organization as business environment, customer’s requirements are changing rapidly, and thus, it is necessary for the organization to mould its services as per the latest business trends so that the organization could enhance its performance by enhancing customer satisfaction (Wang, Tsai & Tsai, 2014).
Innovative strategies adopted by Dalat Hotel Group in order to gain competitive advantage along with maintaining the leading position are:
Figure 1: SaaS usage by Dalata Hotel Group
Figure 2: Workflow management tool
Strategies adopted by the Dalata Group of Hotels have helped them to to build an effective brand image in the Ireland hotel industry. Thus, selection made by them in relevance with the innovative strategies is effective as well as efficient.
Apart from these strategies, organization has adopted certain effective strategies through which they provide appropriate resources to its employees so that they could invent new ideas to maintain their leading position in the target market. There are various hotels and hotel groups are available in the Ireland hotel industry and due to this, hotel industry of Ireland is bit intense. It is necessary for the organization to develop its unique image so that they could enhance their performance. Organization values each and every unique idea because innovative ideas are effective for enhancing organizational performance. Creativity is an effective tool and it is the source of inventing unique measures and ideas through which the desired goals and objectives could be attained (Jones, Hillier & Comfort, 2016).
In relevance with inventing new measures to resolve the issues as well as to provide advanced solutions to the customer’s queries with the objective to enhance their experience and satisfaction, Dalata Hotel Group has adopted TRIZ framework of innovation. It is one of the most effective theories of innovation. Organization has adopted this theory of innovation and thus, they have been able to provide appropriate and effective solutions for issues, challenges and queries of the clients. Apart from this, organization also follows building a new culture of innovation. This is another effective as well as appropriate theory in relevance with the organizational capabilities and this theory provides appropriate and sufficient chances to the creative members of the organization to invent new ideas and solutions for resolving the issues as well as to enhance organizational performance. Creative members are provided appropriate freedom to think out of the box so that unique and innovative ideas could be generated. Along with this, all required resources are provided to the employees so that the desired goals and objectives could be attained (Ryakhovskaya, et. al., 2015).
Innovation is known as the key strategy for organizational success and this has been reviewed that it is one of the critical success factors. Innovations in the hospitality industry mainly link with the objectives and goals of the organization. Innovation has a direct link between market performance, employee performance as well as financial performance of the organization. All these measures directly impact the customer relationship with the organization. Innovation is the key to attain desired objectives along with meeting witch challenges and issues faced by the organisation. As such, Dalata Hotel Group is not facing much challenges in the industry because they are leading the hotel industry in Ireland except expansion in the international market. Dalata Hotel Group is a multinational corporation but in the international market, they have set up their image in the United Kingdom with 15 hotels. There is much scope of expansion, thus, it is required for the organization to expand its business in the other parts of the globe so that the desired goals and objectives in relation with the enhancing revenues and profitability of the organization along with generating opportunities to develop an effective image in the top most hotel groups in the international hotel industry (Fraj, Matute & Melero, 2015).
Increasing demand of the hotel industry and continuous growth of the hotel industry is rapid innovations in the hospitality industry. This has increased the effectiveness of services of provided by the hotel industry. The major reason for innovations made in the hospitality industry is linked with revenues, profitability, growth and development. Primary objective of innovations made in the hospitality industry including innovative strategies adopted by Dalata Hotel Group is meeting with the financial goals. Apart from the financial goals and objectives, increasing customer satisfaction is another major objective for the hotel industry as they are end users of the services rendered by hotels (He & Chen, 2015).
Main motive behind putting customer satisfaction in the priority list is because happy customers become positive brand promoters for the brand, they promote brand and its services and products through word of mouth about the services and the brand name not only to their colleagues, peers, and families, but also help the brand to garner positive sentiments on the social media. Feedbacks and reviews from the guests plays vital role in hospitality industry. Positive and negative reviews from the customers have direct impact over the services rendered by the organization and over the performance of the organization. Thus, it is necessary for the organization to put customer satisfaction and experience with the hotel in priority list so that they could enjoy, feel satisfied and worthwhile as per the spending. In relation with this, hotel will always receive positive feedbacks from the customers which could be used by the organization as promotional tool to attract target audience (Nieves & Diaz-Meneses, 2016).
Further, Dalata Hotel Group has introduced a unique and advance method as an alternative to the innovative techniques. This technique is taking feedbacks and reviews from employees, room service department, as well as with all those employees who directly interacts with the guests. They could better understand guests’ challenges, issues and their queries. Dalata Hotel Group has an effective communication technique through which people who have direct interaction with the guests could communicate with their superiors in order to resolve their queries along with providing better and quick resolutions. This will help the organization to manage its operations in an effective manner along with developing a reliable image amongst the guests by providing them quick, effective and right resolutions as per their queries (Nieves, Quintana & Quintana, 2016).
It is required for the hotel group to identify an appropriate framework in relevance with analysing the suitability, feasibility and accessibility of the strategies adopted by them. For example, organization adopts a unique strategy with the objective of upliftment of customer engagement with the organization with the help of effective promotional and advertisement campaigns. Before its implementation in the workplace, it is must for the organization to compare the effectiveness of the promotional strategies adopted by the organization so that the desired goals and objectives could be attained (Mattsson & Orfila?Sintes, 2014).
From the aforesaid information, it can be concluded that innovation and creativity are essential aspect for the organizational success and growth. In relevance with enhancing the performance of Dalata Group Hotels, innovation strategies have been discussed in this report. Further, report also includes certain theories regarding innovation and the alternative strategies for innovation. Apart from this, recommendations have also been given with regards to the implementation of innovation strategy along with promoting creativity in the workplace so that the goals and objectives could be attained in an effective manner.
References
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Dalata Hotel Group Plc. 2018. About Us. [Online]. Accessed from: https://dalatahotelgroup.com/about-us/. [22nd May 2018].
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success. Tourism Management, 46, pp.30-42.
He, Q.Y. and Chen, C.H., 2015. Research Framework of Leadership Behavior and Team Innovation Performance. In Proceedings of the 5th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2014) (pp. 307-311). Atlantis Press, Paris.
Horng, J.S., Liu, C.H.S., Chou, S.F., Tsai, C.Y. and Hu, D.C., 2018. Developing a sustainable service innovation framework for the hospitality industry. International Journal of Contemporary Hospitality Management, 30(1), pp.455-474.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Mattsson, J. and Orfila?Sintes, F., 2014. Hotel innovation and its effect on business performance. International Journal of Tourism Research, 16(4), pp.388-398.
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Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism Management, 46, pp.51-58.
Nieves, J., Quintana, A. and Osorio, J., 2016. Organizational knowledge, dynamic capabilities and innovation in the hotel industry. Tourism and Hospitality Research, 16(2), pp.158-171.
Owler Inc. 2018. Dalata Competitors, Revenue, Number of Employees, Funding and Acquisitions. [Online]. Accessed from: https://www.owler.com/company/dalatahotelgroup. [22nd May 2018].
Ryakhovskaya, A.N., Gruzina, Y.M., Arsenova, E.V., Linder, N.V. and Pukhova, M.M., 2015. Development of methodology for performance assessment and the effectiveness of innovation activity. Mediterranean Journal of Social Sciences, 6(5 S4), p.189.
Slåtten, T. and Mehmetoglu, M., 2015. The effects of transformational leadership and perceived creativity on innovation behavior in the hospitality industry. Journal of Human Resources in Hospitality & Tourism, 14(2), pp.195-219.
Tarí, J.J., Pereira-Moliner, J., Pertusa-Ortega, E.M., López-Gamero, M.D. and Molina-Azorín, J.F., 2017. Does quality management improve performance or vice versa? Evidence from the hotel industry. Service Business, 11(1), pp.23-43.
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Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, pp.79-89.
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