In modern society, we are developing towards a service-oriented and innovation economy. The hospitality industry is already at the core of the service industry, leading the trend of service innovation. The demand of guest has been showing a diversified development trend, in this process, increasingly more guests becoming mature and rational. Hotel growth is inseparable from the strengthening for service innovation. Hotel operators should have innovative awareness, and use available resources to enhance hotel competitiveness and increase revenue. On the one hand, the top management of hotels should pursue service innovation; on the other hand, hotel staff can also make themselves sources of innovation through their own efforts, because the main implementers of service innovation are employees themselves. Based on domestic and foreign literatures about service innovation and knowledge management, this paper discusses how the hotel staff can innovate in terms of services so as to maintain the competitiveness of a hotel. The author firstly expounds the basic concepts and theories of employee service innovation. By using the AHP, the author then sums up 5 key factors affecting hotel staff's service innovation capability, i.e. staff motivation, staff training, employees themselves, knowledge management and corporate culture. Finally, the author puts forward several reasonable promotion strategies to promote employees innovation.