Market-oriented innovations in tourism

Published in: Research in Hospitality Management
Volume 7, issue 1, 2017, pages: 51–57
DOI: 10.1080/22243534.2017.1355606
Author(s): Ruhet GençFaculty of Economics and Administrative Sciences, Turkey, Eda Aylin GençDepartment of Sociology, UK


Innovations are the key elements that boost the economy in a given sector. Particularly, the tourism sector requires different types of innovations, as it is one of the most competitive ones. This paper discusses the role of innovations in the tourism sector in a market-oriented environment, where competition is the fundamental source of the market dynamic. First, the paper will introduce the types of innovations in the current literature. Then it moves to argue the four impacts of innovations in tourism. These are increasing the existing capacity, survival of the tourism sector itself, overcoming the possible negative effects, and opening up saturated markets. Each type of innovation is considered to be related to one impact, and they will be explained further by using real-world examples. At the end of paper, there will also be a model presented in order to measure the impact of innovations on the basis of quality of life (of both tourists and service providers) and revenues received by the stakeholders who participate in the tourism market by investing. In conclusion, this paper argues that innovations are the crucial aspect of the current economic system and agencies in the tourism sector should focus on innovating more and more if they seek to benefit from the market industry and even maintain their position in the tourism market.

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