Open Innovation as a Hotel Development Model

Some time ago, I wrote about the importance of innovation in the hotel sector, and we noted that one of the challenges hotel companies face is a lack of depth and development in their innovation processes. This is mainly due to a lack of resources and an inability to develop the innovation models that require a range of inputs we are not in a position to provide, which limits our capacity for innovation. To reduce the need for resources, it is worth considering open innovation. Open innovation follows a process in which the company—in this case, a hotel company—uses not only its own resources, but also external resources, thereby increasing the amount of information and the number of elements involved in the process. The company therefore uses the same closed innovation methodology, integrating its own technology, internal knowledge and human resources, generally to develop innovations for the markets in which it is already established. Open innovation adds a range of resources involving external technologies and information, as well as third-party resources, to develop innovations that may be targeted at markets in which we are already established, help us enter new markets, or help other companies improve their response to other markets, in which case we will increase our licensing revenue. The importance of open innovation lies not only in increasing the chances of success and reducing costs, but also in providing a highly relevant environment for experimentation and reflection. It allows us to examine, throughout the ideation and creation process, how markets respond—or may respond—to new innovations, while adding the opportunity to access other markets that have not previously been considered. It is absolutely essential for our hotels to develop innovation models that enable us to access new value propositions and create new products and services for our existing markets or for others that may be of interest to us. Our structures are not usually suited to developing internal innovation processes because of the amount of resources they require. Open innovation may be a good option for our hotel companies.