Could not remove the factor risk innovations

Hotel is one of the oldest sectors of the industry, who have always innovating to satisfy its customers. This sector responds to natural human basic needs. It is an economic necessity and contributes to the proper functioning of society, both by its role as financial contribution. By its nature, this sector of industry has continually developed and renewed all keeping the client as a main target. Over time, the hotel is segmented as any other sector of consumption, and seen to gradually develop a "luxury hotel" (hotels 4-star luxury in France corresponding to the 5 stars in most other countries) and restaurants distinguished by the Gault Millau hats or official recognition as the Michelin stars system. This hotel of luxury target French and international private clients easy and business customers. One of the vectors of development here is innovation, in a segment where the client is always more demanding and perfection. Innovation in the luxury hotel is any process or precursor action to improve the customer experience while having for the purpose of the retention. It is important to note that innovation in hotels (as elsewhere) has real value only if it serves to "something" and is profitable for the company. There are two broad categories of innovation in hospitality: one which corresponds to an improvement of the existing and that which corresponds to a new type of service. These two categories of innovation can be applied either the interaction between the client and service personnel, or the "back office" processes (i.e. processes that are related to the functional Department of the company and the customer does not see). Issues related to innovations in the luxury hotel can focus on four issues:

(1) What is innovation

(2) Where the ideas of innovation come from

(3) How to manage innovation

(4) What are the issues related to innovation

That is an innovation in the luxury hotel

An innovation in the luxury hotel should meet one of the two key functions: either it improves the functional customer experience it is useful, it improves his perception and emotional experience it affects his heart and its meaning. In both cases, it can be generated either by technology or by man. Innovation driven by technology and contributing to the improvement of the experience functional client is illustrated by the case of the Murano hotel in Paris. This hotel has replaced the key to the rooms by a system of recognition of the fingerprint of the client. This innovation helps the functional of the customer experience improvement insofar as it no longer has to fear the loss of his key. Beyond the functional experience, an innovation could (and should) also assist the customer in his emotional experiences. In a world of luxury, the customer buys not only a meal or a good bed, it also buys emotion. An example of innovation using technology to reach the meaning of the client is the lighting of the rooms at the hotel Murano. By playing on white decor (linens, ground and white walls), the client can choose the color of his room lighting depending on his mood (blue, pink, yellow, green or purple). The Plaza Athénée, on the other hand, provides an example of innovation using humans to affect the meaning of the client. When a customer arrives at the hotel, the doorman is systematically within the taxi registration number to allow the client to find it later, if necessary. Recently, this simple human innovation allowed a client to retrieve his wallet, which contained several hundreds of euros and that he had forgotten in the taxi. The client was more than pleasantly surprised by this initiative of the concierge of the hotel and is now retained in this institution. This innovation of service very inexpensive has helped the hotel retaining a customer more!

Where come from the ideas of innovation in the luxury hotel

The ideas of innovation have valuable, because they allow the institutions to differentiate from each other. They are also relatively expensive to obtain than they can relate. The Plaza Athénée in Paris, here is an excellent example. This Parisian palace first implemented an internal structure that allows employees to express their creativity, as creative workshops, in which all employees are free to participate (see below). Employees may suggest new creative ideas of added value for the client. Once the idea is accepted by the Directorate, the employee the be transformed in a real innovation. The ideas of innovation can also reside in the structure of the organization. For example, through its certification to ISO 9001 quality standards, the Plaza Athénée is brought to review its mode of internal operation and its suppliers. This palace, for example, developed a program of "partners prestige" rewarding the best providers by offering discounts on the services of the hotel (for example, the restoration). This program is innovative, to the extent where traditionally they are providers that provide discounts to customers, and not vice versa. Plaza Athénée and successfully develop excellent relationships with

strategic suppliers. The major source of innovation in the luxury hotel remains the human resource. When a palace recognizes that its greater wealth, these are the men and women who work every day, he understood everything! The Plaza Athénée, for example, constantly encourages its employees to suggest new ideas with a single objective: "How can we better serve our customers" or, more specifically, how this new idea will bring value to the client For example, Alain Ducasse understood that his clients had no place to put their bags once at table, he proposed to add a small stool next to the Chair to ask the bags. A few years later he went further, proposing to incorporate a shelf under the seat of the Chair that the client can open to ask his bag. In doing so, he significantly improved ergonomics around the table and the comfort of the clients.

How to manage innovation in luxury hotel

To effectively manage the innovations, must be a strong will of the branch associated with a corporate culture that encourages new ideas and change. This may sound pretty simplistic, but how many companies today are culturally adapted to change, that this change is desired or suffered And that the creativity of the employees is managed in a professional manner, the company should put in place a structure for welcoming and assess all these new ideas. For example, the Plaza Athénée created "creativity workshops" to collect all the suggestions of the employees. A "development cell" then help these employees to transform them into solid proposals for validation by the Directorate. It is understood that branch provides financial resources to realize these ideas. Plaza Athénée also uses external service providers to assist in logistical and material terms. The final result is beneficial not only for hotel guests, but for the motivation and commitment of employees. This palace has turnover of employees lower than the industry average (33 versus 50 in average).

Issues key innovations in the luxury hotel

Even if innovations are desirable because they are a vector of competitiveness, they remain not less problematic. The three key issues are:

How to evaluate the result of innovations in the long term compared to the innovations in the short term

Some innovations require heavy investment in time, human resources and capital. Others require only little effort, time or resources. These two "types" of innovations do not produce the same results and are therefore difficult to compare. Take for example the creation of a whole new concept of luxury hotel the Palazzo Versace, in Australia. The new palace of luxury is the fruit of a partnership between the Milanese fashion house Versace and Australian institutional investor. This new concept was followed by several large traditional luxury brands such as Bulgari, Armani and soon Missoni. The creation of the concept of "lifestyle" hotel luxury requires financial and human means substantial. For example, the main entrance of the Palazzo Versace is decorated with a gigantic mosaic listed jellyfish (the logo of the brand), which required a team of ten craftsmen who came specially Italy. Investments are heavy, and the results will be able to assess over time.

How to identify innovations with a strong impact to those who have a lower impact on the client

All innovations are not equal in terms of impact on the client. Some are more visible than others. Some innovations relate to the operations of a palace process and aim to improve the general functioning mode (for example, certified quality ISO 9001 at the Plaza Athénée). Others are more immediately visible to the client, and are therefore more noticed (for example, the systematic survey of the number of taxi). These two types of innovations can be compared directly, and the company should manage them simultaneously.

How to identify the financial viability of an innovation

From Laurence Bloch, Director of the Plaza Athénée in Paris, "any innovation has a certain degree of risk", and the branch must be aware of this. Could not remove the factor risk innovations. If the company attempts to minimize this risk, it specifically loses its innovative side, added Ms Bloch. When one looks at the history of companies around the world, those who are considered to be the most innovative have taken more risks than others. For example, the "reconstruction" of the bar at the Plaza Athénée following a fire. Instead of again as it was, the direction of the hotel took a huge financial and commercial risk by adopting a new bar concept (new decoration, new sofas, new chairs, etc.), which is now one of the popular places of the capital by both Paris international customer! Investing in innovations in the luxury hotel is sometimes very expensive (it was the case of the bar at the Plaza Athénée), and its return on investment can be sometimes difficult to estimate, because it is not always possible to determine the total cost of an innovation in the luxury hotel