This thesis examines innovation, innovation management and the innovation process in SMEs (small and medium enterprises). There are many academic researchers who work on innovation management but there are very few studies on SME innovation management. The aim of this master thesis is to evaluate of the characteristics and obstacles for implementing innovation management in SMEs. The study is limited to the airport industry as an example of a customer service intensive company. By using case study and survey methods, the thesis analysis new trends of airport business and the problems of implementing innovation management in such customer service intensive company. Data was primarily collected through interviews, observations and questionnaires. Secondary data was collected from literary sources in order to provide context and background. The results display the characteristics of SMEs innovation management, which in this case for instance concern limited resources, short-term strategy and flexible administration management. The results also point out the obstacles on SMEs innovation management implementation, for example informal process model, low involvement of employees, limited budgets, slow upgraded technology and low degree of communications.