The article explores how service innovation can benefit businesses by looking at luxury hotels. By collaborating with customers, businesses can increase the volume of innovation. Working with business partners, on the other hand, can lead to more radical innovations. Customer orientation and innovative thinking can also boost radical innovation. Contact employees play a key role in driving both volume and radicalness of innovation. Integrating knowledge within the organization can further enhance radical innovation. These different types of innovation have varying impacts on revenue and profit growth for businesses.