Innovation management in the hospitality industry

The article examines the state of development, problems, and needs of innovative management in the hospitality industry. Based on research results using the example of EU countries, the dominance of a group of countries with the lowest indicators of workforce employment in the hospitality industry across all types of activities (59.3%) has been identified. The presence of highly developed countries in this group indicates the activation of innovative management activities in the hospitality industry. Accordingly, the directions of modern digital trends in the hospitality industry have been studied and schematically presented. Analyzing consumer behavior in the hospitality industry, changes have been observed due to tourists’ insufficient financial support: an increase in the number of trips during off-peak periods (especially in Slovakia (186.79%), Ireland (102.51%), Austria (79.58%)); a preference for budget-friendly travel destinations (for example, Serbia, Turkey, Bulgaria). The study justifies the need for the development of innovative management in the hospitality industry and schematically presents a possible option for its provision, highlighting the need for ongoing research to identify user needs in hospitality services and explore alternative ideas to meet those needs.


Introduction
The conditions of society's continuous development necessitate the corresponding adaptation of its services.For the hospitality industry, this involves the demand for creative and innovative services that apply to all areas of business.Hospitality management aims to provide pleasant experiences for consumers of various services, regardless of the purpose of their visit to a particular establishment (for business or leisure).In addition to hospitality, management encompasses marketing aspects and the resolution of other organizational issues while applying strategic thinking, innovation, financial acumen, and ensuring comfortable conditions for customers receiving hospitality services.
The hospitality industry is constantly evolving, as it frequently encounters ongoing changes that require rapid adaptation to complex situations and the achievement of business objectives.This requires the development of innovative management in the hospitality industry as a means of continuously updating knowledge, capabilities, and identifying needs for the implementation of specific innovation directions in the hospitality business to ensure its effective management by meeting consumer needs and generating new ideas for customer satisfaction.The purpose of this research is to analyze the latest trends in hospitality industry management using examples from EU countries.Achieving this goal involved the following tasks: defining the key definitions of the hospitality industry; exploring digital trends in the hospitality industry; grouping countries by the number of individuals aged 15 and over employed in the hospitality industry in EU countries in 2022; analyzing trends in the change of the number of nights spent by residents (nonresidents) in tourist accommodation establishments in EU countries from 2022 to 2023 compared to the same period in 2021-2022; determining the relative importance of financial reasons as barriers for consumers of hospitality services to participate in cultural or sports events in EU countries in 2022; analyzing the dynamics of the average length of employment of labor personnel employed in accommodation and food service establishments from 2019 to 2022, as well as the percentage of labor personnel with less than 2 years of experience employed in accommodation and food service establishments from 2019 to 2022; schematically proposing a possible model for the development of innovative management in the hospitality industry.

Materials and methods
The research was conducted using scientific research methods, which allowed for the assessment of the state of development of innovative management in the hospitality industry, identification of advantages and needs, drawing conclusions, and making proposals based on the generated results.
Using the grouping method, three groups of countries were formed based on the number of individuals aged 15 and over employed in the hospitality industry in 2022 in EU countries.Additionally, groups of countries were formed based on the indicator of the relative importance of financial reasons as a barrier for consumers of hospitality services to participate in cultural or sports events in EU countries in 2022.
The analysis of the trend in the change of the number of nights spent by residents (non-residents) in tourist accommodation establishments in EU countries from 2022 to 2023 compared to the same period in 2021-2022 was conducted using data from 38 EU countries.Through the abstraction method, an interdependent process of hospitality industry development was identified, involving the development of demand, the supply of hospitality industry services, and economic efficiency.The comparison method and a systemic approach were used to identify the main needs of the hospitality industry, including the problem of ensuring a highly skilled workforce.
By utilizing the synthesis method, the authors formulated a potential direction for the development of innovative management in the hospitality industry.
The research object was the innovative management of the hospitality industry in EU countries, and statistical data were obtained from the Eurostat data website [1].The identification of digital trends in the hospitality industry was carried out using the knowledge platform for the hospitality and travel industry, Revfine [2].

Results and Discussion
Hospitality is an element of services that has individual qualities tailored to its host and is aimed at enhancing the service experience.The goal of hospitality is to leave a visitor with a pleasant impression of their time spent at a particular event or venue and to instill in them feelings of satisfaction, comfort, and a desire to relive those experiences.
The effectiveness of hospitality has drawn the attention of researchers as a service element capable of enhancing business economic efficiency and raising society's comfort level.Scientifically, "hospitality" refers to a complex of measures and their sequential execution aimed at satisfying the demands of guests in the tourism industry [3].
The hospitality and tourism industry constitute a large sector of all economic activities that directly or indirectly contribute to travel and tourism or depend on them [4].
The tourism industry focuses on the movement of people from one place to another, which is not their usual place of residence.Hospitality, on the other hand, is oriented toward welcoming guests and providing corresponding services, which doesn't always involve significant travel.
In practice, the tourism and hospitality industries are closely intertwined and, in some cases, influence each other's development.For example, hotels are part of both the hospitality industry, as they focus on accommodating guests, and the tourism industry, as they serve as places for travelers to stay.The hospitality industry is a part of the service industry that deals with welcoming guests and providing them with enjoyable experiences.This is a broad category that includes temporary accommodation, dining, events, attractions, and travel agencies: bed and breakfasts, restaurants, bars, nightclubs, cafes, cruises, tour operators, food service enterprises, and travel agencies.
The modern development of society is inseparable from hospitality services, prompting the formation and rapid development of the hospitality industry in developed countries around the world.The offerings of this industry encompass a range of services that are in a constant state of development, leading to the expansion of job opportunities: planning, implementing new developments, and customer service.Clients are the demand for the hospitality industry, expecting the services to align with their expected results, quick responses to discrepancies in the offered services with their desires, and pleasant experiences from the time spent on the selected service.The demand and supply of the hospitality industry determine each other's development and shape the level of economic efficiency in the sector, which, in turn, has an economic impact on overall business performance.
Innovations are a necessary factor for business development [5,6], allowing it to enhance its competitiveness, develop new sources of income and funding, reduce the cost-of-service production, and align with sustainable economic development [7], and so forth.The development of the hospitality industry is inherently linked to the state of its innovation management, which is aimed at continuous monitoring of evolving consumer needs and their incorporation into its economic activities.
The circumstances of recent years worldwide have prompted a transformation in the hospitality industry: some companies ceased operations, others quickly adapted and solidified their market position, while some started their business specifically due to these new changes.Consumer trends for 2023 indicate that travel is once again at the top of the list of desires for most people [8], motivating the hospitality industry to adapt to the latest industry trends, optimize costs, and increase operational efficiency.Modern innovative management in the development of the hospitality industry is adapting to societal awareness towards sustainability [9,10], increasing the well-being and health of consumers, and has established the following trends for 2023: 1) Hybrid Hospitality: flexible working spaces are beginning to compete with the concept of traditional office spaces.More and more, hotel lobbies serve as workspaces (e.g., Kerry Hotel in Hong Kong [11], Artyzen Hobitat in Hunza [12]).The value of hybrid hospitality lies in maximum flexibility in organizing workspaces without long-term commitments and guarantees, avoiding significant initial investments.Key features of hybrid hospitality include offering various types of workspaces (closed focus rooms, specialized co-working areas), a common lounge for social interaction, hotel rooms with workspace options, the availability of facilities (conference rooms, restaurants, bars), daily flexibility for work and meetings, and an individualized approach.
2) Wellness-Oriented Hospitality: meeting consumers' needs for improving health and well-being is a growing trend in hospitality services.This includes satisfying consumers' needs for preventative healthcare, the integration of health diagnostics technologies, individualized treatment plans, psychological support, and more.
3) Hyper-Personalization: personalization leads to a 40% increase in revenue for companies compared to those not using personalized services, with 71% of service consumers expecting individual interaction and 76% being disappointed by the absence of personalized attention [13].The implementation of hyper-personalization in the hospitality business can be achieved through technological platforms such as CRM and CEM.
4) Unique Experiences: customers increasingly seek to spend their money wisely and prefer experiences that have a positive impact on the world.This category of hospitality services includes adventure tourism, unique social experiences, and interaction with local communities.of Advanced Technology Products: this involves the use of virtual and augmented reality, as well as automation in business operations.
7) Customer Retention: the accessibility of online travel platforms to society creates highly competitive conditions for the hospitality industry.Therefore, hospitality businesses need to be constantly prepared for changes in order to seek and provide competitive offers to customers.
Customer satisfaction with hospitality services is determined through various quality indicators within the hospitality industry, which may encompass diverse aspects and criteria: -Customer Satisfaction: assessment of guests' satisfaction and their feedback on service, comfort, and service quality; -Food Quality Assessment: evaluation of the quality of dishes and beverages served in restaurants and hotels; -Hygiene Standards: ensuring cleanliness and sanitation in hotels and restaurants, including adherence to food safety standards; -Service Efficiency: guest service time, response speed to requests, and staff competence; -Hotel Facilities: quantity and quality of rooms, furnishings, amenities, and services offered to guests; -Pricing Policy: cost of stay and services compared to competitors and the price-to-quality ratio; -Innovation: utilization of modern technologies and solutions to enhance customer service; -Profitability Metrics: profitability of the hotel and restaurant business, profit per guest, marketing and advertising expenses; -Staff Stability: the proportion of permanent staff and the job satisfaction level of employees; -Environmental Responsibility: efforts in sustainable development and the use of environmentally friendly technologies.
The above-mentioned indicators help assess the overall quality of service and the competitiveness of hospitality industry enterprises, as well as their alignment with the latest technologies.It is desirable for businesses to implement continuous monitoring of consumer opinions regarding the quality of services offered to promptly respond to changes in the behavior of the hospitality industry's demand.
The development of the country's economy prompts the emergence of new societal needs, which shape the requirements for creating proposals in the hospitality industry.All of this collectively creates an interdependent process between the development of demand, the hospitality industry's supply, and economic efficiency (Fig. 1).The hospitality industry plays a significant role in the labor market.In 2022, approximately 5% of the workforce in the EU were employed in accommodation and food service establishments (Table 1).Among the countries with the highest percentages of workforce employment in the hospitality industry are Greece (9.10%), Spain (8.04%), and Cyprus (7.95%).When grouping EU countries by the number of employed individuals aged 15 and above in the hospitality industry in 2022, it was found that the majority of countries are concentrated in groups with either the highest (9 countries) or the lowest (16 countries) number of individuals employed in the hospitality industry.Only two countries, Bulgaria (4.67%) and the Netherlands (4.52%), fall into the average category.The group of countries with the lowest indicators in this study dominates among the various country groups, accounting for 59.3%.This group includes highly developed countries, making it difficult to draw conclusions about the characteristics of countries with a low level of hospitality industry development.In the context of rapid digital transformation [14,15], and access to information, when clients can compare service results within relatively short time intervals, hospitality industry professionals must be familiar with the latest trends in digital technologies [16].

Fig. 1. Interconnected Process of Hospitality Industry Development
Using Revfine, a knowledge platform for the hospitality and travel industry [2], digital trends in the hospitality industry have been highlighted (Fig. 2).Fig. 2. Modern digital trends in the world of the hospitality industry [2].

Internet of Yhings (IoT)
Everyday devices equipped with Internet capabilities

Automation
Artificial intelligence-based robots designed to perform a range of complex "intelligent" tasks

Recognition Technology
Face recognition technology, fingerprint scanning, or retina scanning technology

Chatbots, artificial intelligence
Mobile Integration -Remote booking of services (e.g., using a mobile app) -Encouraging customer loyalty through loyalty programs -Combining with IoT to enable control of heating or lighting levels via an app

Specialized hotel application Metaverse technology (social interaction of users, often using VR, AR, blockchain, and digital avatars)
WiFi technology

NFTs (Non-Fungible Tokens) technology
As a result of the COVID-19 pandemic, the direction of development of the global economy has changed to protect the environment, altering society's perception.The management of the hospitality industry must meet the updated demands of consumers, which requires identifying the changes and main trends in the modern preferences of their consumers.We have conducted research to identify the main trends in the development of the hospitality industry among European countries, and we found: -a reduction in the popularity of domestic flights, as a result of sustainable development efforts to reduce carbon emissions (e.g., in Germany (38%), Lithuania (38%), Finland (38%), Austria (32%)) [17].Travelers are becoming more environmentally conscious and opt for eco-friendly options when traveling; -the expansion of online communication between service providers in the hospitality industry and ensuring appropriate access.Increasing guest satisfaction involves the ability to leave and read reviews from previous travelers.It has been observed that more than 90% of travelers read reviews before booking a hotel, and 68% of consumers feel encouraged to consume services after reading positive reviews [18]; -ensuring a high level of service quality by hospitality industry staff directly depends on the behavior of the employees providing these services.For example, 78% of travelers, upon seeing hotel management, note that it creates a sense that the hotel cares about its guests [18]; -an increase in the number of trips during non-peak periods to avoid overcrowded destinations (Fig. 3).Most travelers made their trips during the winter-spring period.The highest growth in the number of nights spent by residents (non-residents) in tourist accommodation establishments in EU countries was observed in December 2022 compared to the same period in 2023.The most significant increases occurred in Slovakia (186.79%),Ireland (102.51%), and Austria (79.58%).The insufficient level of financial security in society (Fig. 4) is a reason for people refraining from using the services of the hospitality industry, which necessitates the implementation of appropriate measures by management to increase their accessibility to all those interested.We have grouped countries based on the indicator of the number of people who cannot afford cultural or sports event services due to a lack of funds.Greece, Spain, and Lithuania have the highest indicators, with 28%, 27%, and 23%, respectively.The majority of countries fall into the second group, with the corresponding percentage ranging from 11 to 20.The lack of funds and a high inflation rate encourage travelers to prefer budget travel destinations such as Serbia, Turkey, and Bulgaria.As of mid-June, Bulgaria has recorded the highest level of international arrivals, exceeding pre-COVID-19 levels by 20.7% [19].

The percentage range, %
The countries corresponding to the specified percentage ranges:
The resurgence in demand for the hospitality industry is accompanied by a shortage of workforce, creating a deficit.An example of this is the cancellation of 11% of flights in the Netherlands and 4% in the United Kingdom in June 2022 [19].The increase in labor shortages is a result of the COVID-19 pandemic, during which hospitality industry workers left their jobs and transitioned to other sectors of the economy, making a return to their previous positions unlikely.
Labor needs in the hospitality industry pose the most significant short-term risks for its representatives (83% of industry representatives noted increased costs and labor shortages as key risks to their economic growth opportunities [20]).As demand for hospitality industry workers increases and supply remains scarce, competition is expected to intensify among hotel owners and other sectors of the economy to attract new highly qualified employees.Analyzing the dynamics of the average length of employment of staff in accommodation and food service establishments in EU countries from 2019 to 2022 (Table 2), it is found that in 2022, the pre-pandemic level was mostly not reached for the majority of workers, except in France, the Netherlands, Greece, Finland, and Norway, where the indicators increased by 12.4%, 124%, 1.4%, 2.3%, and 20.9%, respectively, compared to 2019.
In most countries, there is also an increase in the number of workers with 2 or more years of experience, but with more moderate growth, ranging from 3.2% to 12.3%, except for Belgium and Bulgaria, where the indicators increased by 25.1% and 20.5%, respectively.
In 2022, compared to 2021, there is a significant increase in the number of workers with less than 2 years of experience in almost all surveyed countries.Norway experienced the most significant turnover, with a 73.1% increase, and a 57.2% increase compared to 2019.
Table 2 The dynamics of the average length of employment of the labor force in EU countries engaged in accommodation and food service establishments from 2019 to 2022 [1].Examining the workforce structure in EU countries employed in accommodation and food service establishments from 2019 to 2022, it was found that there is a predominance of employees with 2 years or more of experience.As a result of the analysis of the indicator of the number of workers with less than 2 years of experience in the hospitality industry among EU countries (Fig. 5), it was determined that it accounted for only 23.8% in 2019, 19  In order to improve the labor supply situation in the hospitality industry, alongside an increase in the number of full-time employees, there has also been a growth in the recruitment of part-time employees.The increase in both indicators in 2022, compared to 2021, amounted to 2.4% and 2.2%, respectively.
In the post-pandemic era, businesses worldwide have encountered innovative challenges and changes in their business planning.Many companies have ceased to exist, and those that have managed to continue their operations have had to adapt to new conditions.Due to changes in consumer behavior, the hospitality industry has also undergone significant changes and has focused on the development of the following trends, which have created competitive advantages for businesses when offering hospitality services to consumers: -increased safety and hygiene measures to curb the spread of the Covid-19 pandemic (hand sanitizers, cleaning of customer areas, ensuring social distancing); -the development of home delivery services, allowing customers to enjoy restaurant services at home.This often includes contactless ordering and service delivery; -the use of robotics for safety, service, and customer information (room service, restaurant service, providing information to guests, etc.); -improved ways of comparing the quality of hotels (prices, technologies, locations) using Big Data and innovative hospitality service websites, which allow users to filter hotels based on various criteria important to travelers; -free Wi-Fi in hotel rooms and SIP-DECT.Free internet access is now a daily necessity, and its absence can have a negative impact on the reputation of a hotel or other tourist establishment.
Innovations are a crucial component in maximizing profitability in the business.Effective development of the hospitality industry, along with other service sectors, is impossible without an individual approach to the development of service quality.The competitive environment in the hospitality industry is quite fierce due to its dependence on societal development.Therefore, the development of innovative management is an essential component of it (Fig. 6).Effective development of innovation management in the hospitality industry is possible with a sufficient supply of highly skilled labor resources [22].Possible ways to retain personnel include investing in their training (training programs, hospitality industry certificates, online or on-the-job hospitality courses, etc.).Employees need to be provided with conditions for their well-being and require effective team management from the management.The analysis of the average length of service of the labor personnel has been analyzed, and the dominance in the structure of the entire personnel of the hospitality industry of employees with a tenure of 2 years and more has been identified, with growth from 3.2% to 12.3%, except for Belgium and Bulgaria, where the indicators increased by 25.1% and 20.5% respectively.It has been found that in the Netherlands, Greece, Sweden, and Denmark, there is a tendency for the number of employees with less than 2 of experience to dominate in the structure of the labor personnel employed in the hospitality industry during the 2019-2022 research years.The development of the labor personnel of the hospitality industry will simplify the analysis of the current environment, timely identification of customer needs, and allow for their timely satisfaction, ensuring the effectiveness of business development.

Conclusion
The effectiveness of innovation management in the hospitality industry is an integral part of the industry's prosperity due to its interdependence with social development.The constant evolution of society demands not only continuous updating of ways to meet needs but also finding ways to meet customer expectations, which requires the constant innovation of services.This, in turn, leads to a focus on customer experiences that potential competitors offer.Research results have shown that the development of the hospitality industry is a component of an interdependent process between the state of its supply and demand and the economic efficiency of its infrastructure elements, local economic activity, and the country as a whole.The rapid development of technology has created conditions where customers expect additional benefits as part of basic hospitality services, which can represent an additional expense, especially for smaller businesses but are an integral part of their competitive advantage.
The work of hospitality industry professionals involves a complex process that requires the simultaneous resolution of several tasks: balancing accounting matters, ensuring uninterrupted business operation, and satisfying customer needs.Effective simultaneous task resolution requires a skilled workforce that is ready to work under non-standard working conditions.The main problem in the modern development of the hospitality industry, alongside labor turnover, is labor shortage.Therefore, managers need to explore ways to incentivize their workforce.
Engaging the workforce and upgrading technical equipment to enhance the competitive advantage of the hospitality industry creates additional expenses, posing risks to individual businesses.Additionally, considering the possibility of seasonality, where revenue fluctuations occur, overall, it necessitates effective management in the hospitality industry.

5 )
Sustainable Development: environmental protection and the rational use of natural resources are the latest trends in the hospitality industry, manifesting in the offering of services focused on energy source replenishment, reduced plastic use, and the elimination of unnecessary paper consumption.
accommodation services, such as "bed and breakfast," restaurants, bars, nightclubs, cafes, cruises, tour operators, public catering establishments, and travel agencies) DEMAND FOR THE HOSPITALITY INDUSTRY (travelers, local residents, business travelers, etc.) ECONOMIC DEVELOPMENT (economic efficiency of hospitality industry components, local economic development, the economy of a specific country, and the global economy)

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Overcoming geographical distance between business and clients -Creating unforgettable experiences -Enhancing opportunities for interacting with customers -Entertainment (virtual concerts) -Virtual services for digital meetings or celebrationsWiFi-Increases internet bandwidth and speed -Improves working conditions for staff -Enhances guest experience Non-Fungible Tokens (NFTs) -Ability for companies to connect with their audience and promote new products and services -Increased brand visibility -Collaboration with other companies or artists -Sale of loyalty cards as NFTs rather than physical cards -Energy cost savings -Hotel room optimization without energy usage PRODUCT RESULT -Time savings on customer service organization -Quick resolution of simple issues (facial recognition and registration to prevent key loss) -Acceleration of payment processes for services -Reduced need for contact with staff -Transporting people to a new digital environment -Pre-presentation of rooms before booking -Virtual acquaintance with local attractions -Entertainment tool -Enhances the real-world environment -Entertainment tool -Augmentation of informational content -Providing AI-driven responses to customer questions and requests -Accelerating response time to customer inquiries -Freeing up staff time for more complex tasks -Automatic data analysis -Assisting with revenue management strategies -Offering more personalized recommendations to customers based on their preferences -Digital concierge services -Speech recognition and real-time language translation for users -Intelligent product placement (combining geolocation data and predictive algorithms to offer real-time recommendations to customers, often through mobile devices)

Fig. 3 .
Fig. 3. Trend in the Change of the Number of Nights Spent by Residents (Non-Residents) in TouristAccommodation Establishments in EU Countries in 2022-2023, units[1]

Fig. 5 .
Fig. 5.The percentage of the workforce with less than 2 years of experience in EU countries employed in accommodation and food service establishments from 2019 to 2022, % [1].

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contactless payment methods to save customers' time (Apple Pay, Google Pay); -implementation of automation systems (voice search, voice control) to reduce the time spent on searching for accommodation and booking, enhance guest experiences, and reduce the need for physical contact with various surfaces (hotel searches on smartphones, speakers in hotel rooms, etc.); -enhanced room service and self-service options for customers through advanced technologies.Smart technologies have transformed the hospitality industry by offering mobile keys;

Fig. 6 .
Fig. 6.The scheme for effective development of innovation management in the hospitality industry.

Table 1 .
[1]uping of countries by the number of employed individuals aged 15 and above in the hospitality industry in EU countries in 2022[1].
.04% in 2021, and 33.3% in 2021 among the 1269 (2023) 012007 It should be noted that the Netherlands, Greece, Sweden, and Denmark show a trend of dominance in the number of workers with less than 2 years of experience in the workforce structure employed in the hospitality industry from 2019 to 2022.