The above definition clearly distinguishes innovation from minor changes in the make up and/or delivery of products in forms of extension of product lines

The above definition clearly distinguishes innovation from minor changes in the make up and/or delivery of products in forms of extension of product lines, adding service components or product differentiation. Successful innovation, e.g. innovation that is also profitable to the tourism firm in a competitive market, must increase the value of the product or tourism experience. Since the value is costumers’ perceived quality divided by the price (cost) of this quality successful innovation must increase value by improving quality or by lowering price (cost).
The production and marketing of tourism products is distinct from industrial products and displays specific characteristics which often pose constraints or problems and hence serve as stepping stones for increasing the value of products via innovation. They are: tourism produces and sells product bundles instead of products (products being “experiences”) which are very intangible, products cannot be stored (simultaneity of production and consumption), the consumption of tourism products involves the active participation of the customer (prosumer), and tourism production/marketing may involve large capital assets (airlines, hotel chains or car rental firms) or at the intermediation, distribution and final consumption stage may involve interaction personnel (e.g. travel agencies, restaurants, coaches, etc.).