The role of business model innovation in the hospitality industry during the COVID-19 crisis

TLDR

The hospitality industry was severely impacted by COVID‑19 lockdowns, and business model innovation has been suggested as a potential recovery strategy. The study investigates why and how successful recovery attempts via business model innovation occurred in six Austrian hospitality firms. The authors used interviews with managers and key customers, supplemented by secondary data, to conduct a multiple‑case study. The findings reveal that business model innovation was employed during and after the crisis to generate new revenue streams and improve liquidity, with key customers playing a crucial role.

Abstract

The hospitality industry worldwide is among the hardest-hit industries from the COVID-19 lockdowns. Initial theoretical and practical observations in the hospitality industry indicate that business model innovation (BMI) might be a solution to recover from and successfully cope with the COVID-19 crisis. Interestingly, some firms in the hospitality industry already started to successfully adapt their business models. This study explores the why and how of these successful recovery attempts through BMI by conducting a multiple case study of six hospitality firms in Austria. We rely on interview data from managers together with one of their main stammgasts for each case, which we triangulate with secondary data for the analysis. Findings show that BMI is applied during and after the crisis to create new revenue streams and secure a higher level of liquidity, with an important role of stammgasts.