HOW CIRCULARITY IS RESHAPING VALUE PROPOSITION IN SMALL TOURISM BUSINESSES
As you could read already in the previous Module, circular tourism represents a holistic approach to tourism development that prioritizes sustainability, resource efficiency, and collaboration to create positive economic, environmental, and social impacts for destinations and communities.
The circularity in the context of small tourism businesses refers to the adoption of sustainable practices that aim to minimize waste and maximize resource efficiency throughout the business operations, while engaging with local communities, prioritizing local sourcing of goods and services and educating both staff and visitors/tourists about the importance of circularity and sustainable practices in tourism.
The many ways small tourism businesses implement circular practices in their operations can be followed by checking the C-Tour Database.
By applying circular economy principles, small tourism businesses can not only reduce their environmental footprint but also enhance their value proposition in several ways.
By applying circular economy principles, small tourism businesses can not only reduce their environmental footprint but also enhance their value proposition in several ways.
Deep Dive into Key Topics
Firstly, by aligning with sustainability goals, small tourism businesses demonstrate their commitment to environmental responsibility, which resonates with an increasingly eco-conscious customer base. Customer (visitors/tourists) are becoming more mindful of the environmental impact of their travel choices and are actively seeking out businesses that prioritize sustainability. Therefore, integrating circularity into the business model can help attract and retain environmentally conscious customers, thereby increasing the business's market appeal and competitiveness.
Secondly, integrating circularity enables small tourism businesses to differentiate themselves in the market. In an industry where competition is significantly high, offering unique and sustainable experiences can set a business apart from its competitors. Circular initiatives such as waste-to-art workshops, upcycled accommodations, farm-to-table dining with food waste reduction or bike rental and repair services not only provide memorable experiences for tourists but also demonstrate the business's innovative approach to sustainability. This differentiation can help attract new customers and build brand loyalty over time.
Moreover, addressing the needs of modern environmentally conscious and responsible customers is essential for the long-term success of small tourism businesses. Today's customers are increasingly seeking authentic and sustainable tourism experiences that allow them to connect with local communities and minimize their environmental impact. By integrating circularity into their operations, small tourism businesses can cater to these evolving customer preferences and build stronger relationships with their target audience.
Ultimately, integrating circularity can lead to long-term business growth and a positive impact on society and the environment. By reducing waste, efficient use of resources and supporting local communities, small tourism businesses can contribute to the preservation of natural ecosystems and cultural heritage. This not only benefits the environment but also enhances the overall sustainability of the small tourism industry.
EXAMPLES OF CIRCULARITY AS AN ADDED VALUE GENERATOR IN SMALL TOURISM BUSINESSES
The adoption of circular practices in small tourism businesses can take various forms, each contributing to the business's value proposition in unique ways.
Below you can read about examples of circular actions that serve as added value generators:
Waste-to-Art Workshops
Offer tourists creative activities where they can create art using recycled materials and waste products. By transforming waste into art, small tourism businesses not only reduce their environmental impact but also provide unique and memorable experiences for tourism customers.
Upcycled Accommodations
Small tourism businesses can repurpose old buildings or materials to create eco-friendly and sustainable accommodation options. Upcycled accommodations, such as converted shipping containers or refurbished historic buildings, provide memorable stays for environmentally conscious travelers without harming the environment.
Farm-to-Table Dining with Food Waste Reduction
By sourcing ingredients locally and minimizing food waste through composting and recycling, small tourism businesses can offer farm-to-table dining experiences that are both environmentally friendly and socially responsible. These experiences allow customers to support local food producers while enjoying fresh, healthy, seasonal cuisine.
Bike Rental and Repair Services
Offering bike rental and repair services encourages tourists to explore destinations in an eco-friendly and sustainable way, and saves resources by preventing new bike purchases. By promoting green transportation/travel options, small tourism businesses not only reduce carbon emissions but also promote health and well-being among their customers.
Reusable Packaging for Tours
Using reusable packaging (eco-friendly bags, water bottles) for tour packages and souvenirs helps reduce single-use plastic waste and minimize environmental pollution. It shows tourists their commitment to sustainability and encourages them to reduce waste.
Community-Based Craft Experiences
Collaborating with local artisans and craftsmen to offer hands-on craft experiences allows tourists to learn traditional skills and support local communities. It supports local businesses, contributes to cultural preservation while providing tourists with authentic cultural experiences
Textile Recycling for Merchandise
Small tourism businesses can partner with textile recycling companies to Turn old textiles into new merchandise items like clothing, accessories. It reduces waste and offers guests eco-friendly souvenirs.
Composting and Organic Waste Management
Setting up composting systems for food and garden waste to improve soil health. It's a sustainable way to manage waste and support local farming.
Incorporating these examples of circular initiatives into their operations allows small tourism businesses to add value to their offerings, differentiate themselves in the market, and align with sustainability goals. By applying circularity, businesses can create memorable and sustainable experiences for their customers while contributing to long-term environmental and societal well-being.
EXPLAINING THE BENEFITS OF CIRCULARITY FOR SMALL TOURISM COMPANIES
EXAMPLES OF CIRCULARITY AS AN ADDED VALUE GENERATOR IN SMALL TOURISM BUSINESSES
The adoption of circular practices in small tourism businesses can take various forms, each contributing to the business's value proposition in unique ways.
Below you can read about examples of circular actions that serve as added value generators:
Waste-to-Art Workshops
Offer tourists creative activities where they can create art using recycled materials and waste products. By transforming waste into art, small tourism businesses not only reduce their environmental impact but also provide unique and memorable experiences for tourism customers.
Upcycled Accommodations
Small tourism businesses can repurpose old buildings or materials to create eco-friendly and sustainable accommodation options. Upcycled accommodations, such as converted shipping containers or refurbished historic buildings, provide memorable stays for environmentally conscious travelers without harming the environment.
Farm-to-Table Dining with Food Waste Reduction
By sourcing ingredients locally and minimizing food waste through composting and recycling, small tourism businesses can offer farm-to-table dining experiences that are both environmentally friendly and socially responsible. These experiences allow customers to support local food producers while enjoying fresh, healthy, seasonal cuisine.
Bike Rental and Repair Services
Offering bike rental and repair services encourages tourists to explore destinations in an eco-friendly and sustainable way, and saves resources by preventing new bike purchases. By promoting green transportation/travel options, small tourism businesses not only reduce carbon emissions but also promote health and well-being among their customers.
Reusable Packaging for Tours
Using reusable packaging (eco-friendly bags, water bottles) for tour packages and souvenirs helps reduce single-use plastic waste and minimize environmental pollution. It shows tourists their commitment to sustainability and encourages them to reduce waste.
Community-Based Craft Experiences
Collaborating with local artisans and craftsmen to offer hands-on craft experiences allows tourists to learn traditional skills and support local communities. It supports local businesses, contributes to cultural preservation while providing tourists with authentic cultural experiences
Textile Recycling for Merchandise
Small tourism businesses can partner with textile recycling companies to Turn old textiles into new merchandise items like clothing, accessories. It reduces waste and offers guests eco-friendly souvenirs.
Composting and Organic Waste Management
Setting up composting systems for food and garden waste to improve soil health. It's a sustainable way to manage waste and support local farming.
Incorporating these examples of circular initiatives into their operations allows small tourism businesses to add value to their offerings, differentiate themselves in the market, and align with sustainability goals. By applying circularity, businesses can create memorable and sustainable experiences for their customers while contributing to long-term environmental and societal well-being.
EXPLAINING THE BENEFITS OF CIRCULARITY FOR SMALL TOURISM COMPANIES
Applying circularity in a small tourism business, besides decreasing the carbon footprint of the business operations, can have various positive impacts on the business, such as:
▪ Cost savings - Designing and implementing circular actions can lead to significant cost savings by reducing material and energy costs. For example, implementing energy-efficient technologies and recycling programs can lower utility bills, while using recycled or repurposed materials can reduce procurement expenses. By minimizing waste and maximizing resource efficiency, businesses can improve their bottom line and enhance economic sustainability.
▪ Innovation - By adopting new technologies, processes, and business models, businesses can develop innovative solutions to environmental challenges and customer demands. For instance, implementing circular design principles can lead to the creation of innovative tourism services that meet the needs of environmentally conscious tourists and differentiate the business in the market.
▪ Reputation (Responsible Attitudes) - Demonstrating a commitment to circularity improves the reputation of small tourism businesses as responsible and sustainable operators. By communicating their efforts to minimize environmental impact and support local communities and economy, businesses can build trust and credibility with customers, partners, and stakeholders. This positive reputation can attract environmentally conscious customers and business partners, further driving customer loyalty and long-term success.
▪ Resilience - Adopting circular practices enhance the resilience of small tourism businesses by reducing their dependence on finite resources and minimizing risks from resource scarcity and regulation. For instance, by diversifying their supply chains (partnering with local producers), businesses can mitigate the impact of disruptions (caused by issues like transportation delays or supply shortages) and ensure continuity of operations; by investing in renewable energy sources (solar panel, etc) and sustainable infrastructure, businesses can reduce their vulnerability to fluctuations in energy prices, supply chain disruptions and environmental regulations.
▪ Enhanced brand image - By showing their commitment to sustainability and responsible business practices, businesses can attract environmentally conscious customers who prioritize ethical and eco-friendly experiences. A strong brand image built on principles of circularity and sustainability can lead to increased customer loyalty, positive word-of-mouth referrals, and enhanced competitiveness in the market.
All these benefits have an indirect positive impact on the customer. Although in the first phase, these improvements increase the margin for the company, due to the effect of market competition, they end up reducing the prices customer need to pay.
To reflect on the benefits for tourism customers resulting from tourism businesses adopting circular actions in small, we invite you to explore the following examples:
▪ Customers can enjoy tourism experiences knowing that their activities have minimal negative impact on the environment.
▪ Circular initiatives often lead to creative and innovative offerings, providing customers with unique and memorable experiences.
▪ Circular actions often involve engaging with local communities and cultures, offering customers authentic and immersive experiences.
▪ Circular businesses may offer cost-effective solutions and experiences, allowing customers to save money while traveling sustainably.
▪ Customers can feel good about supporting businesses that prioritize resource conservation and minimize waste generation.
▪ Circular initiatives adopted by small tourism businesses contribute to cleaner and safer environments, enhancing the overall well-being of tourists.
▪ Customers can engage with local communities through circular initiatives such as community-based tourism activities.
▪ Circular businesses often prioritize fair labor practices and community development, creating positive social impacts for local residents.
▪ Circular businesses that communicate their sustainability efforts transparently build trust with customers who value ethical and responsible tourism services.
▪ Customers can learn about sustainable practices and environmental conservation through their interactions with circular tourism businesses, raising awareness about pressing environmental issues.
To sum up, by emphasizing how circular practices can drive innovation, enhance reputation, and improve resilience, businesses can effectively communicate the added value of circularity to clients and customers, driving sustainable growth and long-term success.
▪ Cost savings - Designing and implementing circular actions can lead to significant cost savings by reducing material and energy costs. For example, implementing energy-efficient technologies and recycling programs can lower utility bills, while using recycled or repurposed materials can reduce procurement expenses. By minimizing waste and maximizing resource efficiency, businesses can improve their bottom line and enhance economic sustainability.
▪ Innovation - By adopting new technologies, processes, and business models, businesses can develop innovative solutions to environmental challenges and customer demands. For instance, implementing circular design principles can lead to the creation of innovative tourism services that meet the needs of environmentally conscious tourists and differentiate the business in the market.
▪ Reputation (Responsible Attitudes) - Demonstrating a commitment to circularity improves the reputation of small tourism businesses as responsible and sustainable operators. By communicating their efforts to minimize environmental impact and support local communities and economy, businesses can build trust and credibility with customers, partners, and stakeholders. This positive reputation can attract environmentally conscious customers and business partners, further driving customer loyalty and long-term success.
▪ Resilience - Adopting circular practices enhance the resilience of small tourism businesses by reducing their dependence on finite resources and minimizing risks from resource scarcity and regulation. For instance, by diversifying their supply chains (partnering with local producers), businesses can mitigate the impact of disruptions (caused by issues like transportation delays or supply shortages) and ensure continuity of operations; by investing in renewable energy sources (solar panel, etc) and sustainable infrastructure, businesses can reduce their vulnerability to fluctuations in energy prices, supply chain disruptions and environmental regulations.
▪ Enhanced brand image - By showing their commitment to sustainability and responsible business practices, businesses can attract environmentally conscious customers who prioritize ethical and eco-friendly experiences. A strong brand image built on principles of circularity and sustainability can lead to increased customer loyalty, positive word-of-mouth referrals, and enhanced competitiveness in the market.
All these benefits have an indirect positive impact on the customer. Although in the first phase, these improvements increase the margin for the company, due to the effect of market competition, they end up reducing the prices customer need to pay. To reflect on the benefits for tourism customers resulting from tourism businesses adopting circular actions in small, we invite you to explore the following examples:
▪ Customers can enjoy tourism experiences knowing that their activities have minimal negative impact on the environment.
▪ Circular initiatives often lead to creative and innovative offerings, providing customers with unique and memorable experiences.
▪ Circular actions often involve engaging with local communities and cultures, offering customers authentic and immersive experiences.
▪ Circular businesses may offer cost-effective solutions and experiences, allowing customers to save money while traveling sustainably.
▪ Customers can feel good about supporting businesses that prioritize resource conservation and minimize waste generation.
▪ Circular initiatives adopted by small tourism businesses contribute to cleaner and safer environments, enhancing the overall well-being of tourists.
▪ Customers can engage with local communities through circular initiatives such as community-based tourism activities.
▪ Circular businesses often prioritize fair labor practices and community development, creating positive social impacts for local residents.
▪ Circular businesses that communicate their sustainability efforts transparently build trust with customers who value ethical and responsible tourism services.
▪ Customers can learn about sustainable practices and environmental conservation through their interactions with circular tourism businesses, raising awareness about pressing environmental issues.
To sum up, by emphasizing how circular practices can drive innovation, enhance reputation, and improve resilience, businesses can effectively communicate the added value of circularity to clients and customers, driving sustainable growth and long-term success.
Interactive exercises/reflective questions
Self-Reflective Questions:
After watching the below video of a circular tourism business case (GR), reflect on the followings:
How the circular actions implemented by the company add value to the business’ value proposition? Think of concrete aspects of this added value!
In case you already run a tourism business, what do you think, how circularity could enhance the value proposition of your own business, and what steps could you take to implement circular practices or to increase the circularity of your business?
Based on what you have learnt in this sub-module, reflect on the role of reputation in the success of a/your tourism business.
How can applying circularity enhance a/your business's reputation as a responsible and sustainable tourism service provider?
Watch the C-Tour video of a circular hospitality case from Greece and think of how applying circular economy principles led to implementing novel solutions within the company?
(Circularity -> innovation: they were the first ones who used their specific heating system; they use wooden waste as heating supply; built the swimming pool from recycled material, use salt electrolysis – free natural chlorine)
Based on the themes presented choose the right answers to the below question (choose as many as you wish):
Watch the C-TOUR video of the Dragonfly Glamping from Transylvania/Romania, and chose the right answers (As many as you wish) to the below question.
Watch the C-TOUR video of the Swedish House of Pancakes from Sweden, and chose the right answers (as many as you wish) to the below question.
After watching the below video of a circular tourism business case (GR), reflect on the followings:
How the circular actions implemented by the company add value to the business’ value proposition? Think of concrete aspects of this added value!
In case you already run a tourism business, what do you think, how circularity could enhance the value proposition of your own business, and what steps could you take to implement circular practices or to increase the circularity of your business?
Based on what you have learnt in this sub-module, reflect on the role of reputation in the success of a/your tourism business.
How can applying circularity enhance a/your business's reputation as a responsible and sustainable tourism service provider?
Watch the C-Tour video of a circular hospitality case from Greece and think of how applying circular economy principles led to implementing novel solutions within the company?
(Circularity -> innovation: they were the first ones who used their specific heating system; they use wooden waste as heating supply; built the swimming pool from recycled material, use salt electrolysis – free natural chlorine)
Exercise: Multiple choice
Exercise: Multiple choice
Exercise: Multiple choice
Exercise: True / False
Exercise: True / False
Further resources: videos and/or useful links
Borden, DS; Coles, TE; Shaw, G (2017) “Social marketing, sustainable tourism, and small/medium size tourism enterprises: challenges and opportunities for changing guest behaviour” University of Exeter (ORE - Open Research Exeter).
http://hdl.handle.net/10871/25468
http://hdl.handle.net/10871/25468
References
Managing the transition to circular economy for tourism providers, A CEnTOUR Handbook (2020)
Einarsson S. and Sorin, F. “Circular Economy in travel and tourism: A conceptual framework for a sustainable, resilient and future proof industry transition” , CE360 Alliance, 2020
Einarsson S. and Sorin, F. “Circular Economy in travel and tourism: A conceptual framework for a sustainable, resilient and future proof industry transition” , CE360 Alliance, 2020
