Innovating in hospitality: A framework for Hotels
In an industry where disruption is constant hospitality leaders can no longer rely on operational excellence (alone).
Innovation is broad and often misunderstood. Is it launching new tech? Changing how we staff hotels? Offering new services? The answer is yes—and more. To make sense of it all, we turn to a clear framework: the Four types of innovation. This model helps hotels map out opportunities by categorizing innovation along two axes: operational vs. strategic and inward vs. outward facing.
Each quadrant—Product, Process, Management, and Business Model—offers a different lens to rethink how your hotel creates value. The most resilient brands are those that don’t innovate randomly, but intentionally across this spectrum.
Let’s dive into how each type of innovation applies to travel and hospitality.
🛏 Product Innovation: Elevating the guest experience
(Outward-Facing + Operational)
Product innovation is what most people picture first: reinventing what guests see, touch, and experience. It’s about craftng offerings that aren’t just functional, but memorable.
Examples in hospitality:
Smart rooms with voice control, personalized lighting, and app-based access.
Wellness-focused amenities like circadian lighting or in-room meditation.
Curated experiences such as chef-led market tours or local artisan workshops.
These innovations are about standing out in a sea of sameness, and building emotional loyalty. In a world of “best rates guaranteed,” it’s experience—not price—that wins.
The best businesses in the world expand their target market. Nike convinced the world that everyone is an athlete. Apple convinced the world that everyone is a creator. Shopify that everyone can be an enterpreneur… In hospitality, the opportunity is even greater: to convince the world that everyone is a traveler—whether across continents or across town. That every person has a story to live, and that “our” brands are the platforms where those stories begin.
Tip: Continuously collect guest data (with consent, of course) and use it to personalize experiences at scale. Think less about “product innovation” and more about “emotional resonance.”
🔄 Process Innovation: Driving operational efficiency
(Inward-Facing + Operational)
This type of innovation isn’t (the most) glamorous, but it’s critical. It’s about improving how your hotel functions day-to-day—behind the curtain.
Common areas of Innovation:
Dynamic housekeeping schedules based on check-out patterns.
Self-service kiosks to reduce front desk bottlenecks.
AI-powered demand forecasting for inventory and staffing.
Hotels that improve even a few core processes can unlock significant gains—reducing costs, improving guest satisfaction, and freeing up teams for higher-value work.
To truly guide users along the "happy path," design with both digital and physical behaviors in mind. Co-create solutions with frontline staff — they experience the real-world friction points daily and hold the keys to meaningful, intuitive improvements.
🧠 Management Innovation: Rethinking how you lead
(Inward-Facing + Strategic)
Management innovation is about changing how you organize, empower, and lead people. It’s subtle but powerful. In an industry where culture drives service quality, this might be your highest-leverage innovation area.
Innovations in management style:
Replacing departmental silos with service “pods” empowered to make cross-functional decisions.
Giving teams local ownership of KPIs rather than top-down goals.
Rethinking incentives to reward initiative, not just execution.
It’s like building the plane while flying it—uncomfortable, high-stakes, and constantly in motion. But that’s the nature of true management innovation: redesigning how we lead, align, and adapt while the business is still at cruising altitude.
Tip: Leadership innovation should start with mindset shifts. Empower managers to act like entrepreneurs, not just supervisors. Great service starts with great internal alignment.
💸 Business model innovation: Rethinking value capture
(Outward-Facing + Strategic)
This is the most disruptive—and often the most overlooked—form of innovation in hospitality. Business model innovation is about how you make money, not just what you sell.
Examples in hospitality:
From nightly rates to monthly memberships: Offer a flat-rate plan for digital nomads to stay across your properties.
From bookings to subscriptions: Package perks like priority upgrades, exclusive content, and concierge support into a recurring offer.
From rooms to ecosystems: Monetize additional layers like branded merchandise, travel planning, or co-working memberships.
Coming next week:
We're excited to feature a guest post from Sue Graves, CEO of Experience Alive, LLC (DBA SG Consulting), on "How AI and Machine Learning Are Transforming Hospitality."
Don't miss it
🏨 Interesting reads
Host Hotels & Resorts Stock Performance: Despite a 1.67% decline in share price on April 7, Host Hotels & Resorts outperformed several competitors, indicating a mixed but resilient market performance.
Gong cha's Global Expansion: The bubble tea chain Gong cha reported surpassing $600 million in global sales, attributing its growth to international expansion and plans to enter six new markets in 2025.
Key Executive Moves: The first quarter of 2025 saw notable leadership changes in the hospitality industry, including new CEOs at Ace Hotels and the AHLA Foundation, reflecting strategic shifts and growth initiatives within these organizations.
AI Initiatives: Booking.com shared progress on its generative AI initiatives, aiming to gain a better understanding of traveler intent and enhance user experiences
The art of standing out. In an industry where choices are abundant and competition is fierce, differentiation is not a marketing tactic—it is a survival strategy.
📅 Events
AAHOA Convention & Trade Show (AAHOACON25)
Dates: April 15–17, 2025
Location: New Orleans Ernest N. Morial Convention Center, New Orleans, Louisiana
Overview: As the nation's largest event exclusively for hotel owners and operators, AAHOACON25 is expected to host over 6,000 attendees and more than 500 exhibitors. The convention offers extensive educational sessions, networking opportunities, and a comprehensive trade show, making it a pivotal event for hospitality professionals.Hospitality Minnesota Vendor Expo + Social
Date: April 14, 2025
Location: Saint Paul RiverCentre, Saint Paul, Minnesota
Overview: This expo provides a platform for vendors and hospitality professionals to connect and showcase products and services. It's an excellent opportunity for networking and discovering new industry solutions.Hospitality Leadership Summit
Date: April 3, 2025
Location: Boston University Center for Computing & Data Sciences, Boston, Massachusetts
Overview: Hosted by Boston University, this summit brings together students, faculty, and industry colleagues for a day-long conference featuring exceptional speakers who are revolutionizing the bounds of hospitality.
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