Innovation in the Tourism Sector: Results from a Pilot Study in the Balearic Islands

Abstract

This paper provides empirical evidence on innovation in various tourism firms in the Balearic Islands. The main results from this pilot study are as follows. Innovation is common in Balearic tourism firms, especially in the lodging and accommodation sector. Process, delivery and organizational changes are the most frequent forms of innovation. Non-technological innovation is common, especially in the lodging and accommodation sector. Technological innovation relates mainly to information and communication technologies. Firms usually become involved in the design and development of the technologies needed to introduce an innovation. The major impacts of innovation are an improved company image, enhanced profitability and increased customer satisfaction. The most important objectives in firms' innovation strategies are satisfying customer needs, increasing and maintaining market share, gaining competitive edge and improving service quality. The lack of skilled personnel and a resistance to change within the firm are the major obstacles to the introduction of innovations. After discussing these various findings, the authors provide methodological recommendations for the Community Innovation Survey (CIS) with regard to the tourism sector.