Short answer
When designing for businesses in volatile sectors, focus on how the business operates and generates value, and explore ways to involve loyal customers in innovative solutions.
- Field
- Innovation & Design
- Source
- International Journal of Hospitality Management (2020)
- Method
- Multiple case study
- Sample
- 6 firms (managers and one stammgast per firm)
- Evidence
- Strong effect
Adapting business models is crucial for hospitality firms to navigate crises, create new revenue streams, and enhance financial stability. This innovation & design research insight is drawn from a 2020 study published in International Journal of Hospitality Management. Using Multiple case study with 6 firms (managers and one stammgast per firm), researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing for businesses in volatile sectors, focus on how the business operates and generates value, and explore ways to involve loyal customers in innovative solutions.
Business Model Innovation Drives Hospitality Resilience Amidst Crisis
Adapting business models is crucial for hospitality firms to navigate crises, create new revenue streams, and enhance financial stability.
International Journal of Hospitality Management · 2020
Key Findings
- 01Business model innovation (BMI) was actively employed by hospitality firms during and after the COVID-19 crisis.
- 02BMI helped create new revenue streams and improve liquidity.
- 03Long-term loyal customers (stammgasts) played a significant role in these recovery efforts.
Application
Design takeaway
When designing for businesses in volatile sectors, focus on how the business operates and generates value, and explore ways to involve loyal customers in innovative solutions.
How to apply
When faced with market disruption, analyze existing revenue streams and explore how to pivot or create new ones by modifying operational processes, value propositions, or customer relationships. Engage with key customer segments to co-create solutions.
Project actions
- 01Consider how your design project could impact or be impacted by a business's operational model.
- 02Think about how to build in adaptability and resilience into your design solutions.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a mixed-methods approach combining interviews and secondary data for robust analysis.
- +Focuses on a highly relevant and timely issue of crisis management through innovation.
Limitations
The findings are specific to the hospitality industry and the COVID-19 context, so direct application to other industries or crises may require adaptation.
Reliability & validity
The use of triangulation (interviews with managers and stammgasts, plus secondary data) enhances the validity of the findings. Reliability would depend on the consistency of reporting across different firms and interviewees.
Think critically
To what extent can business model innovation be a proactive rather than reactive strategy for design projects in industries prone to disruption?
Design Principles
"Business model adaptability is a critical component of design for resilience."
This research highlights that proactive innovation in how a business operates, not just its products or services, is a key survival strategy during disruptive events. Designers and strategists can leverage these insights to build more adaptable and resilient business frameworks.
What This Means for Your Design
Even when things go wrong, businesses can survive and even thrive by changing how they work and make money, especially if they have loyal customers who help them.
How to use in your project
- 1.Reference this study when discussing how business model changes can be driven by external pressures and how design can support these shifts.
Add to My Project
Quick Cite
Paragraph starter
This research demonstrates that business model innovation (BMI) is a critical strategy for firms facing significant market disruptions, such as the COVID-19 crisis. By adapting their operational frameworks, revenue generation methods, and customer engagement strategies, hospitality firms were able to create new income streams and improve financial liquidity. The study highlights the importance of involving loyal customer segments in these innovative efforts, suggesting that design projects aiming for resilience should consider the broader business model and stakeholder relationships.
Source
International Journal of Hospitality Management
The role of business model innovation in the hospitality industry during the COVID-19 crisis
journal · 2020
View sourceQuestions About This Research
- What does the research say about business model innovation drives hospitality resilience amidst crisis?
- When designing for businesses in volatile sectors, focus on how the business operates and generates value, and explore ways to involve loyal customers in innovative solutions. Evidence: International Journal of Hospitality Management (2020).
- Why does "Business Model Innovation Drives Hospitality Resilience Amidst Crisis" matter for design?
- This research highlights that proactive innovation in how a business operates, not just its products or services, is a key survival strategy during disruptive events. Designers and strategists can leverage these insights to build more adaptable and resilient business frameworks.
- How can designers apply this research?
- When designing for businesses in volatile sectors, focus on how the business operates and generates value, and explore ways to involve loyal customers in innovative solutions.
- What were the main findings?
- Business model innovation (BMI) was actively employed by hospitality firms during and after the COVID-19 crisis.. BMI helped create new revenue streams and improve liquidity.. Long-term loyal customers (stammgasts) played a significant role in these recovery efforts.
- What research method was used?
- Multiple case study with 6 firms (managers and one stammgast per firm).
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from International Journal of Hospitality Management.
- What should I do differently in my next project?
- When faced with market disruption, analyze existing revenue streams and explore how to pivot or create new ones by modifying operational processes, value propositions, or customer relationships. Engage with key customer segments to co-create solutions.
- What are the limitations?
- The study focused on a specific geographic region (Austria) and a single industry (hospitality), potentially limiting the generalizability of findings to other contexts or sectors.