A study on innovation in tourism in the post-lowcost carrier era : a focus on the hotel sector in Malta

Abstract

Aim: This study sets out to identify innovation behaviour in hotels, and how this has changed, if at all, with the introduction of low-cost carriers. Research Questions: The main research question is as follows: How, and to what extent, has the introduction of low-cost carriers influenced innovation within the hotel sector in Malta? Sub-questions were formulated, serving as problem statements to help guide the research: What type of innovation behaviour can be identified in hotels in Malta? How has this changed, if at all, with the introduction of LCC? How has innovation in the hotel sector been influenced by policy making in the tourism industry? Methods Used: This study adopts a qualitative approach. The sample is composed of nine respondents from six different hotels and a policy making entity within the industry. Interviews were conducted with 5 respondents, while email questionnaires were used for 4 respondents. Two interview guides were prepared, aimed at hotel managers and policy makers within the tourism industry. Main Findings: Results show that innovation in hotels is mostly focused on the process, and occurs mainly in the high star rating of the sector. The advent of low-cost carriers in Malta has impacted innovation behaviour within hotels as it increased pressures on the sector through the influx of tourists to the islands. Therefore, hotels had to adapt to the shifts in the market generated by the implementation of low-cost carriers. Conclusions: Similar pressures and impacts of low-cost carriers were found in the literature. Low-cost carriers have spurred innovation in the hotel sector as they disrupted the average length of stay, brought more tourists, and motivated hotels to adopt similar pricing strategies.