PRODUCT INNOVATION IN TOURISM

The presentation of new or significantly improved services to customers.

The development of new products, making changes in the current product design or using new techniques and means in the current production methods

It focuses on existing markets for existing products, differentiating through features and functions that current offers do not have.

Development of the old products which are produced already in the company with making modifications and partial changes in shape or product components. Innovating new products to realize market’s needs. Using new techniques in production process.

The production and marketing of tourism products is distinct from industrial products and displays specific characteristics which often pose constraints or problems and hence serve as stepping stones for increasing the value of products via innovation.

Lower costs
Raise profits
Increase customer value

Customers
Competition
Leadership in the industry

1. New products in catering
2. Trendy / more comfortable hardware in the hotel
room
3. New wellness hardware and applications
4. New architecture/design
5. Customer loyalty programmes
6. Price innovations
7. New destinations

Internal side- It depends on knowledge, capacities, resources and the technologies used in the company

The external side- Product innovation focuses on the consumers needs and the owners expectations

Supply and supply–related determinants.

In tourism, technology created a new form of business called
e-tourism, which today is the biggest force in e-commerce.

Demand drivers.

New life styles appeared through flexible working times, higher incomes, more
leisure time and the changing value of holidays

The level and pace of competition

With the maturity of markets, heightened technological change in the IT field and the
slowing of demand, in many parts of the industry rivalry has turned into ruinous competition.

Fordist tourism
• Evaluation of quality: price
• Form of uncertainty: quantifiable risk
• Competition: price-based

Simple tourism
• Evaluation of quality: conviviality and relationships
• Form of uncertainty: of little importance
• Competition: on prices and proposed attractions

Organised, customised tourism
• Evaluation of quality: satisfaction of individual expectations, importance of service
• Form of uncertainty: uncertainty vis-à-vis others
• Competition: quality-based

Self-organised customised tourism
• Form of uncertainty: radical
• Competition: On the basis of prices and originality of activities

The profession:
Dissemination of studies, conferences
Good practices
Certification, standardisation
Links with research

The technologies:
Equipment
Supplies
Substitute industrial products

Territories and infrastructures
Public authorities’ innovation action
and policing concerning:
The national and cultural heritage
Transport infrastructure

Regulatory framework:
Health and safety standards
Taxation
Labour legislation
Environmental regulations