A business model for sustainable tourism experiences: evidence from Albergo Diffuso

The rapid evolution of tourist demand pushes the tourism sector to innovate and to meet the requests of the most demanding customers, generating innovative and higher quality services based on authenticity. This is the philosophy of the innovative hospitality system called Albergo Diffuso (AD). The typicality of this new form of hospitality concerns services linked to the authenticity of the territory. This way, tourists, like temporary residents, can fully immerse themselves in the culture of the territory they are visiting. We aim to identify the business model of the AD that has influenced the development of sustainable tourism through the regeneration of historic villages and the recovery of cultural and territorial heritage. We used an exploratory analysis based on a multi-case. We analysed 19 ADs. An open questionnaire was administered to the managers. The questionnaire was then supported by a short interview with the manager. Our results confirm that the Albergo Diffuso is very appreciate by tourists and emphasize how this innovative model is leading a reversal of the current tourism business logics. The results show that the main factor of success is the experience that tourists experience in the territory, understood as a combination of local cultural traditions and knowledge. The key success factors of the operators' business models are the local area, its products and its best quality traditions but these are not sufficient to guarantee the sustainability of the AD model: solid management skills are also required. The ability to retain customers, invest in staff training and extensive communication channels are strategic management tools that companies must use efficiently to achieve success. This study identifies the main characteristics of business model of AD, pointing out how the rediscovery of the territory and its authenticity (socio-cultural and environmental), involvement and relationships with local communities are the key factors for the creation of a competitive advantage. It is critical for decision makers to know how own business is structured and which aspect are more appreciated by customers.