Innovation in hospitality has attracted considerable interest, partly because its processes and activities are so diverse, and partly because its impact on performance is still a puzzle. This study proposes a comprehensive theoretical model that reviews combinations of technological and non-technological innovation and the interrelation between different innovation strategies that contribute to generating competitive advantages. Using data from 2010 and 2012 CIS, it empirically examines different innovation strategies, analyzes their role in organizational performance, and thoroughly researches sectoral variation in innovation strategies between hospitality and other service subsectors. Comparative analysis suggests that hospitality is the least innovative service activity. The findings also show that in hotels sales turnover is positively related only to complex innovation strategies that emphasize both technological and non-technological innovation. The study concludes that the level of innovation varies from sector to sector and that innovation strategies can have different effects on performance depending on the sector.