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  • ROYAL DOCKS BUSINESS SCHOOL - ASSIGNMENT FEEDBACK FRONTSHEETSECTION A: (to be completed by the student)

    I confirm that no part of this assignment. except where clearly quoted and referenced. has been copied from material belonging to any other person e.g. from a book. handout, another student. I am aware that it is a breach of UEL regulations to copy the work of another without clear acknowledgement and that attempting to do so renders me liable to disciplinary proceedings.

    SECTION B: (to be completed by the tutor marking assignment)

    Please complete Section A in Block Capitals making sure that you include your Student Number, Module Code and Group Number. FAILURE to do so may result in your assignment being delayed. If you are unsure of any of the above please check at the Business School Student Centre Reception.

    Student Number (s): U1435976

    Programme:(e.g. Business Management)

    Tourism Management

    Module Title: (e.g. Studying for Business)

    Tourism Innovation and Enterprise Seminar Group N/A

    Module Code: TM5005 Word Count 2,568

    Assessment Criteria: Weightings Criteria based Feedback Mark Achieved

    Introduction 15

    Analysis 30

    Evidence and Research 30

    Writing and Referencing 20

    Format and Presentation 5

    TOTAL MARKS 100%

    Good practice demonstrated:

    Aspect to consider for improvement:

    Tutor's Name: Dr Raoul Bianchi

    Date Received:PROVISIONAL MARK

  • U1435976

    It has often been claimed that the distinctive industrial

    characteristics of the tourism industries creates a

    peculiar set of challenges for tourism innovation. With

    specific emphasis on a particular sub-sector(s) and/or

    destination, identify and evaluate the factors which may

    inhibit or enable innovation in tourism.

  • U1435976

    ABSTRACT:

    The purpose of this essay is to identify a number of key industrial characteristics of the tourism

    industries that inhibit or enable innovation, focusing on the accommodation sector, airline tour

    operator sub-sectors in particular, with some references to specific destinations as examples. The

    essay begins by briefly exploring the different types of innovation, before discussing authorisation

    decree, cultural conflict, competition, perishability, seasonality, standardisation and sustainability as

    some of the characteristics of the sub-sectors mentioned, and whether or not they inhibit or enable

    innovation. The conclusion found that perishability seemed to be the most challenging industrial

    characteristic of tourism inhibiting innovation, whilst standardisation and seasonality surprisingly

    did not seem to inhibit innovation entirely. Competition appears to have become particularly

    challenging for the accommodation sector since Airbnb appeared, with similar challenges being

    faced for airlines with Ryanair and for tour operators; Expedia posed the same threat as well.

  • U1435976

    Introduction 5 Defining Innovation 5 Government Support 6 Cultural Conflict/Differences 6 Competition 7 Perishability and Inseparability 9 Seasonality 10 Standardisation/Inconsistency/ Heterogeneity 11 Sustainability 13 Conclusion: 13 References 15

  • U1435976

    Introduction

    The generation, acceptance and implementation of new ideas, processes, products or services

    involving the capacity to change and adapt (Kanter, 1983 cited in Hall and Williams, 2008:5)

    Distinguishing types of innovation can become complex, as different innovations tend to overlap,

    reflecting the amalgam of sub-sectors which make up the tourism industry (Leiper, 2008). Thus, an

    innovation in one sub-sector can create a ripple effect for others (Barras, 1986). Due to the very

    nature of tourism itself, it has been described by many as a rapidly changing industry, due to there

    being an endless development in technology, an increasing rise of sophisticated consumers,

    environmental restraints for growth and economic restructuring being just a few of the challenges

    facing the tourism industry that are inhibiting innovation (Poon, 1993).

    The purpose of this essay is to examine some of the challenges inhibiting innovation within

    tourism industries, focusing on the accommodation sector, airlines and excursion/tour operators in

    particular, and will sometimes refer to destinations as examples of where the challenges discussed

    may be apparent. Models and theories may also be used to help further explain and evaluate the

    factors which hinder innovation in tourism.

    Defining Innovation

    Chan et al. (1988) considers three different levels of innovation: Incremental - a new, small-scale

    idea, distinctive - an adaptation of company organisation or consumer behaviour, and breakthrough-

    a new approach towards new technology, system organisation or consumer behaviour (Hall and

    Williams, 2008) To expand on this, Schumpeter's (1934) typology of innovation identifies five

    different types: (1) development of new production processes, (2) introduction of new supply

    markets, (3) new or improved products, (4) reorganisation/reconstruction of a company and (5)

    development of new sales markets. Distinguishing service elements from product, organisational

    structure e.t.c (Peters and Pikkematt, 2005). However, it should not be mistaken that for something

    to be considered an innovation, the idea does not have to be new to the world and only to a certain

    market segment (Sundbo, 1998).

    Page of 5 18

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    For instance; Ibiza, widely known as one of the most popular clubbing destinations for tourists, is a

    perfect example of how one innovation can completely change the way a destination is perceived

    (Hall & Williams, 2008). Being defined to a single category, in this case, one that appeals mostly to

    a younger demographic of a particular psychographic market segment (Kotler, et al, 2013), can

    make things incredibly challenging, particularly for SMEs (small-to-medium-enterprises) who may

    not necessarily want to start a business catering to the clubbing scene. Ultimately meaning that the

    only innovative process left for such particular destinations, is to continue expanding (ibid), rather

    than to have an entirely new innovation targeting a different market segment.

    Government Support

    Furthermore, Leiper (2008) explains why the misleading expression; tourism industry", rather than

    the plural; tourism industries may disrupt the innovative process for smaller tourism sub-sectors,

    and that the recognition of differences among the tourism industries is crucial in regards to issues at

    micro-levels (e.g business strategies) and at macro levels (e.g. policies for destinations) (Leiper,

    2008:238). There are 7 challenges Leiper (2008) presents, one of which is authoritarian decree.

    Here, Leiper (2008) describes how referring to tourism as an industry can simplify things for

    some, and that to address multiple tourism industries would make for hard work and challenges for

    politicians, bureaucrats and expensive work for lobbyists. These being the usual suspects

    representing large scale hotels and business who rely on the definition of a singular tourism

    industry in order to receive money and other forms of support from governments. This of course

    could enable innovation for large scale companies that these lobbyists represent, but contrary for

    smaller sub-sectors e.g entertainment services, where in this case, it may be considered a factor

    inhibiting innovation, as they tend to receive less support and money from government officials if

    they are not recognised as an industry under the tourism umbrella.

    Cultural Conflict/Differences

    Countries that are home to Islamic religion, such as Morocco and Egypt, can often have conflicting

    issues meeting the demands of non-religious-tourists, being so heavily tied to religious practises.

    For example, a case study carried out by Scherle (2004), looked at the cultural conflicts between

    German and Moroccan business and found that the German operator had little patience or

    willingness to compromise with the religious practices of the Moroccans, and the Moroccan travel

    Page of 6 18

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    agency manager felt as though the German manager had excessive expectations of which he could

    not meet due to a lack of infrastructure or financial stability in order to develop it. This can be seen

    below in figure 1: