Integrating sustainability and innovation has become a strategic priority for hospitality and tourism companies, driven by the need to differentiate their brands and meet the expectations of increasingly demanding consumers. The current research examines the effect of sustainable practices and service innovation on customer satisfaction in the hospitality industry, based on a convenience sample of 153 hotel guests. An Ordinary Least Squares regression model (R2 = 0.868) revealed that the most important factors positively related to satisfaction in the context of service delivery were service improvement, digital access to facilities and service, green practices, and third-party certification. On the other hand, the service frequently changing, insufficiently communicated innovations, as well as weak after-sales support, were associated with lower satisfaction. Cluster analysis identified three distinct customer groupings based on their innovation behavior: Innovation-Seeking Enthusiasts, Price-Driven Users, and Quality-Loyal Customers. Enthusiasts are novelty and sustainability seekers, while Moderates are more stability-oriented, and Loyalists are looking for the same quality consistently throughout the year. Authenticity and emotional value can be enhanced through sustainable tourism practices, such as environmentally sustainable preservation and cultural interaction, aligning with shifting consumer preferences. The results indicate that it is necessary to adapt innovative strategies: stimulating enthusiasts with state-of-the-art offers and guaranteeing clarity and coherence for other consumers. Successful innovation needs to be designed to matter, work closely integrated, and this must be tightly aligned with customer demand to create satisfaction and loyalty.