Tourism has always been an industry characterised by innovativeness, however the issue of tourism innovation was rarely discussed in the context of traditional academic research on innovation hence only limited systematic and comparable empirical evidence of the level of innovative activities and their impacts and wider implications for destinations and national economies exist (Hjalager, 2010). This is the bottom line of Hjalager’s (2010) frequently cited literature review on tourism innovation titled “A review of innovation research in tourism”. 

 

Analysing the topic based on classical innovation themes the author presents ten research gaps as key findings. However, it is not always clear how the author identifies these research gaps. Instead of sticking to the structure of the review and present a clear outlook for future study for each section the research gaps presented with new umbrella terms are either combinations of several previously mentioned gaps or new issues derived from the author. Contradicting Hjalager’s (2010) opening statement that tourism is marked by innovation the literature review reveals in section 5 (the extent and effects of innovative activities) that several studies find a lower degree of innovation in tourism than in other industries (Christensen, 2008; Pikkemaat, 2008). As the reasons behind the limited inclination to innovate in many tourism enterprises are only marginally and indirectly addressed in tourism research, barriers to tourism innovation represent Hjalager’s (2010) third research gap. Here Hjalager (2010) speaks of “massive structural and behavioural factors” hindering innovation. However, the author leaves the reader with a meticulous search for these factors in all sections of her review (Hjalager, 2010, p. 9). Instead of calling for more systematic studies on internal and external reasons and factors for the low degree of innovation in tourism, Hajalager (2010) demands more research on intellectual property rights and imitation, diffusion patters and the role regulations (Hjalager, 2010, p. 9). 

 

An understanding of barriers to tourism innovation and on how to overcome these is, however, of utmost importance for tourism enterprises that are faced with immense challenges such as today’s transparency in offers, prices and especially in costs caused by online offers. Not only did the Web and the constantly evolving information and communication technology strengthen the position of consumers by arming them with much more free and easily obtainable information on prices, features and quality, it also made sellers’ and operators’ costs more transparent, allowing buyers to assess whether these are in line with the prices being charged (Sinha, 2000). Combined with low switching costs this transparency consequently weakens customer loyalty, posing a real threat to tourism enterprises that often rely heavily on regulars (Sinha, 2000; Broeckelmann, 2010; Van Riel, et al., 2013). 

 

The best way of counteracting the maximum transparency and thus differentiating oneself from competitors is through product innovation (Sinha, 2000). Newness and customization of service products that will improve their lives will be rewarded by consumers and influence their purchase decisions (Hjalager, 2010). Recent examples of generic innovations in tourism are offerings for so-called digital nomads combining work and travel in new ways. New work-tourism programmes like NomadCurise, a start-up that organizes two-week networking cruises crossing the Atlantic for digital nomads, target this new group of people who can work location independently (NomadCruise, 2018). By bundling intelligently these programmes aim at helping digital nomads navigate living, traveling and working in far-off places. 

 

Despite the publishing year of Hjalager’s (2010) article the author’s claim that innovations are indispensable for tourism enterprises holds these days more than ever to survive in the business world characterised by digital transformation. As studies suggest a lower degree of innovation of tourism compared to other industries an understanding of internal and external barriers to tourism innovation and how these can be overcome is needed making it an important field for future research. 

 

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Bibliography 

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Broeckelmann, P. (2010). Konsumentenentscheidungen im Mobile Commerce: Eine empirische Untersuchung des Einflusses von mobilen Services auf das Kaufverhalten. Saarbrücken: Springer Verlag.

 

Christensen, J. L. (2008). Innovation and management in North Jutland tourism firms. Paper for the RSA-workshop, November 28. Aalborg University: Department of Business Studies.

 

Hjalager, A.-M. (2010). A review of innovation research in tourism. Tourism Management, 31, (1), 1-12. 

 

NomadCruise (2018). About NomadCruise. URL: https://www.nomadcruise.com/about/. [Accessed 06.05.2018].

 

Pikkemaat, B. (2008). Innovation in small and medium-sized tourism enterprises in Tyrol, Austria. Entrepreneurship and Innovation, 9(3), 187-197.

 

Sinha, I. (2000). Cost Transparency: The Net’s Real Threat to Prices and Brands. Harvard business review. URL: https://hbr.org/2000/03/cost-transparency-the-nets-real-threat-to-prices-and-brands. [Accessed 06.05.2018].

 

Van Riel, A. C., Calabretta, G., Driessen, P., Hillebrand, B., Humphreys, A., Krafft, M., & Beckers, S. F. (2013). Consumer perceptions of service constellations: implications for service innovation. Journal of Service Management, 24(3), 314-329.