In modern business and in the new era of tourism and hotel industry, tourism companies face numerous challenges, and one of them is to be more creative and stand out from the competition. Whether it's hotels, restaurants, travel agencies and other stakeholders involved in tourism, they all know much more about their guests than before, whether they apply satisfaction measurement, use specialized software or other forms of innovation. Of course, care must be taken not to lose the quality of the services provided, since the identity of the traditional tourist brand is gradually developing with the emergence of new trends. Many tourists may have high expectations when they come to visit a hotel, destination, buy a tourist package or dine in a restaurant, but rightly so, because today's experience is difficult to repeat and surpass. If they want to separate themselves from the competition for tourist and hotel companies, it is important that they introduce innovations and new technologies into their model of service to guests, in order to be at the peak of creativity and innovation in tourism activities. It is these indications that give purpose to this final paper, where the goal is to emphasize that innovations in tourism and hotel industry are important because they have the ability to positively transform the tourism sector, and during the last few years they have been developing at a fast pace. The research was conducted using secondary data sources, and the final results confirmed that the tourism industry has changed a lot, digitalized and developed technologically. This is exactly why innovations are a source and a way to develop more competitive and high-quality tourism products and services that will support their competitiveness in today's changing and turbulent tourism market.