CitizenM: disruptive innovation in hospitality

Disruptive innovation is often misunderstood as a pure technology problem. Think about any technology, like artificial intelligence, robots, augmented reality, you name it. When you read the news, those new technologies are frequently associated with disruption. However, the true transformative potential does not lie in the technology alone. In reality, disruptive innovation is primarily a business model phenomenon. While technology plays a crucial role in enabling disruptive solutions, it is the re-imagining and restructuring of business models that truly unlocks disruptive potential. Disruptive innovation challenges existing ways of doing business, opening up new markets and creating value for customers in novel ways. By focusing on business model innovation, businesses can unlock the true potential of disruptive innovation and thrive in an era of continuous disruption. Let's have a look at how disruptive business models look like in hospitality. For this reason, I want to discuss the case study of CitizenM.

CitizenM is a Netherlands-based hotel developer, investor and hotel chain. The business was founded back in 2005. The founders recognized that the luxury hotel business had not changed for years, despite the emergence of a new generation of travelers. And with their disruptive mindset, the founders of CitizenM aimed to redefine guest experience through innovative design, technology, and a fresh perspective on hospitality, breaking away from traditional luxury norms. Their business model offered a unique alternative with creative design, efficient operations, and guest-centric services. The journey of CitizenM underlines the power of disruptive innovation. Let's have a closer look at how their business model looks like.