The hospitality industry is constantly looking for innovations in design and service, both tangible and intangible ones, to meet guests’ future needs. Underlying thesis of this module is that innovative culture in organizations comes alive when there is a strong leadership which supports such culture. Therefore, innovation and leadership are two interrelated concepts in the hospitality industry. This module is based on how the tangible and intangible service innovations meet the changing needs and wants of hotel guests. The discussion will cover how innovation is related to guest aspirations and how innovative design is supported by the right kind of operation and people management. The following five broad areas of innovation and leadership will be covered: hotel design, customer service, human resources, information technology, and communication.