Toward Regenerative Hospitality Business Models: The Case of “Hortel”
Abstract
:1. Introduction
2. Literature Review
2.1. From Sustainable to Regenerative Tourism
2.2. From Sustainable to Regenerative Hotels
- The procurement of chemicals for general cleaning, dishwashing, and laundry;
- The strict requirement to prevent loss of biodiversity for hotels with gardens and outdoor areas over 1000 m2 (chemical and pesticides);
- The reduction in food waste;
- The reduction in waste (prevention, reduction, reuse, recycling) and promotion of material recovery and prohibition of disposable items.
- A biodiversity management plan should be developed to regulate operations according to the carrying capacity and the limitations of acceptable change in the area where the hotel is located.
- Sustainable supply chain: to plan an increasing rate in the procurement of products (food, drink, furniture, paper and cardboard) certified according to environmental standards starting at a minimum of 40% to reach at least an 80% threshold in three years. These are to be verified via third-party certification. For accommodation with more than 50 employees, a third-party verified environmental management system (EMAS, ISO 14000 or similar) is required.
2.3. Regenerative Hotels Enhanced by Biophilic Design and Regenerative Urban Agriculture
- The design and construction process must become a co-creative process of the physical product (the building and other related infrastructure) aimed at becoming the wave of change that opens new opportunities for growth and development within the ecosystem.
- The technologies, design strategies, and materials need to favor human encounters with nature (e.g., biophilic design) to provide a net positive impact not just merely reducing negative impacts.
- Regenerative sustainability assessments must become decision-making and monitoring tools rather than compulsory reporting tasks in the overall performance in order to continuously adapt and improve (the co-evolutionary approach) as well as allow all of the stakeholders to thrive.
2.4. The Transformation of the Accommodation Sector Driven by Corporate Social Responsibility and the Regenerative Sustainability Mindset
- Long-term thinking: business and investors should be aligned with much longer timeframes where social and environmental feedback loops play out.
- Regenerative: a business could actively contribute to the health of wider socioeconomic and environmental systems just like natural loops. All the forms of capital have to be nurtured: natural, social, human, and economic.
- Stakeholder-oriented: the governance model, corporate decision making, and incentive systems should be implemented with the purpose of creating value not only to shareholders but also in favor of employees, customers, suppliers, communities, and the natural environment.
- Accountable: businesses contribute to society by paying taxes. These have to be fair, and tax avoidance needs to be more difficult. Companies should adopt responsible stewardship practices and engage with ESG issues.
- Promote, manage, and align their activities with the living system that surrounds them through co-evolutionary processes in order to build resilience and adaptive capacity against external perturbations.
- Base their foundations of co-creative partnership on nature and justice and fairness, and integrate different cultural perspectives, especially from indigenous communities.
- Capture value through multi-capital accounting (e.g., economic, human, and natural) and ensure that profits are also enjoyed by local communities and are used to enhance and protect the surrounding environment.
- Aim for a net positive impact across all stakeholder levels: nature, societies, customers, suppliers and partners, shareholders and investors, and employees. The organization’s handprint (positive impact in the market of the product or service) is bigger than its footprint (negative impact) along its life cycle.
2.5. Nature-Based Solutions and Biophilic Hotel Features as Marketing Strategies to Drive Pro-Environmental Guests’ Behavior
3. Methodology
“How can the hospitality sector develop and operate businesses that are attractive to guests, healthy and engaging to workers, active in the community, sensitive and regenerative to the environment, efficient to operators, and profitable to hotel owners?”
4. Hortel: A Regenerative Business Model for an Eco-Innovative B2B Service
4.1. A Brief History of Hortel
4.2. Competitor Analysis
- Environment: water and energy efficiency, UHI mitigation, carbon sequestration through the soil;
- Agriculture and Urban Biodiversity: organic cultivation, use of local plants;
- Efficient Management: garden management, food waste prevention, composting;
- Ethical–Social and Stakeholders’ Impact: co-design the area with the client, stakeholder involvement such as local associations, local organic producers, third-sector parties, garden accessible to all, training for employees;
- Networking: creation of a network of organic farmers and/or social entrepreneurs for events;
- Events and Marketing: co-creation of events for hotel’s guests and local citizens, social media campaigns, and branded products.
4.3. Hortel’s Value Proposition Canvas
4.4. Hortel’s Brand Strategy
4.5. Hortel’s Impact Value Chain
- Effective sustainable management and in particular staff engagement and customer experience;
- Minimization of negative impact by promoting urban biodiversity with native plants;
- Minimization of pollution for building-related activities, food waste, and water management;
- Maximization of social and economic benefits to the local community by supporting local entrepreneurs and, more importantly, environmentally preferable purchasing of building materials and food;
- Maximization of material and immaterial cultural heritage (the hotel location is in an area famous for the cultivation of citrus);
- Decent work conditions for training activities and ordinary maintenance.
4.6. Hortel’s Regenerative Business Model
- There were 393 five-star hotels and resorts with embedded restaurants, 27 of which were in Sicily. The same region showed a good business potential because 10 out of 27 (37%) had green areas that could be converted into productive vegetable gardens.
- There were 5354 four-star hotels and resorts with embedded restaurants, 288 of which were in Sicily. Of these 288, 140 (48%) were equipped with green outdoor areas with the potential to be used as productive spaces. Only 3 of these 140 hotels already exploited that land for agronomic uses, namely as vineyards, olive tree groves, or farms.
- Turnkey architectural, landscape, engineering, and agronomic design;
- Leisure activities to be carried out mainly in the renovated area with the aim of making it available not only to hotel guests but also to new customer segments, such as citizens, families, and local tourists (e.g., organic aperitif with products from the garden, yoga classes, team-building activities, and so on);
- Training programs for the hotel staff who will take care of the “horto” as ordinary maintenance (vegetable garden), extended not only to gardeners or maintenance workers but also to restaurant staff;
- Marketing and communication.
- Hortel “creates” more life by using organic agricultural methods and organizing events in the garden to create awareness;
- Hortel “heals” the future because the hotel can become a regenerative hub in the local community and kickstart a ripple effect in neighboring communities as well as inspire other local businesses;
- Hortel favors the “enhancement” of human well-being by providing increased amenities where clients and employees can improve their psychological and mental health;
- Hortel contributes to the “decrement” of global warming through its practical implementation of NBS;
- Hortel’s activities “serve” the innate human need to affiliate with nature or biophilia. Also, the related upskilling programs provide workers with dignity, which they then use to enhance the human capital working for the hotel.
4.7. The Prototype Built at Four Points by Sheraton Catania
5. Discussion and Conclusions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Environmental Aspects | Physical and Mental Benefits | Economic Benefits |
---|---|---|
Reduced summer heat gain and cooling demand [57]; reduction in Scope 1, 2 emissions. | People close to green areas likely to achieve recommended minimum amounts of physical activity [58]. | Reduced energy costs, extended lifespan of major building elements (e.g., roofs) [57,59]. |
Mitigation of Urban Heat Island effect (UHI) [39]. | Vegetation cover positively associated with lowered prevalence of depression, anxiety, and stress [60,61,62]. | Property value increased by 2.5% and land value increased by 2% if a green facade is applied, while planting street trees may enhance property value by 4.7% and green spaces near the building by 9.5% [57,63]. |
Improved air quality, increased absorption of pollutants [64]. | Self-reported higher mood levels, perceived office attractiveness, and (in some cases) perceived comfort when plants were present [65]. | Consumers show a greater willingness to pay (WTP) for accessible green roofs (up to 5% per month the rent value) [66]. |
Improved water management, pollutant removal from graywater reuse [67]. | Natural elements and sunlight exposure related positively to job satisfaction and organizational commitment. | |
Reduced noise pollution [68]. | Direct exposure to plant associated with a reduction in health complaints and improved feeling of well-being [69]. | |
Increased thermal comfort [64]. | ||
Reduced Scope 3 emissions related to self-production of raw food supplies, carbon sequestration along the life cycle through the urban soil, and regional procurement [51,52,53,54]. | The reduction in health complaints during the period with plants may also be explained by an improvement in the feeling of well-being; they are an effect of increased attention [69]. | |
Mitigation strategy to UHI, air quality, climate change adaptation [59]. | Workplace satisfaction, self-reported levels of concentration, and perceived air quality [70]. |
Business Conduct | Environmental Precautionary Principle | Marketing and Communication | Impact on Communities |
---|---|---|---|
Community involvement: human rights of indigenous people, non-discrimination and diversity. The promotion of gender balance and the increment of under-represented groups across their leadership. Upskilling work force to make them motivated and satisfied brand ambassadors with customers. | Reduction in accommodation footprint (water, energy, waste) with particular attention to promote buildings retrofitting according to third-party GBRS. The exploitation of renewable energy systems. Zero plastic policy and other circular and recycling initiatives are also adopted. | To engage clients and create awareness of company’s commitments. | The promotion of employees’ voluntary services for the local community where the hotel is located. The promotion of reforestation and aid to communities facing natural disasters around the world. |
Services | Operating in Hotels | Environment | Agriculture and Urban Biodiversity | Efficient Management | Ethical-Social and Stakeholders’ Impact | Networking | Events and Marketing |
---|---|---|---|---|---|---|---|
St. Horto | X | X | |||||
Horto La Scala | X | X | X | X | X | ||
Top Ager | X | X | X | X | X | ||
Orto Capovolto | X | X | X | X | X | X | |
Hortel | X | X | X | X | X | X | X |
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© 2023 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
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Caruso, L. Toward Regenerative Hospitality Business Models: The Case of “Hortel”. Tour. Hosp. 2023, 4, 618-641. https://doi.org/10.3390/tourhosp4040038
Caruso L. Toward Regenerative Hospitality Business Models: The Case of “Hortel”. Tourism and Hospitality. 2023; 4(4):618-641. https://doi.org/10.3390/tourhosp4040038
Chicago/Turabian StyleCaruso, Luca. 2023. "Toward Regenerative Hospitality Business Models: The Case of “Hortel”" Tourism and Hospitality 4, no. 4: 618-641. https://doi.org/10.3390/tourhosp4040038
APA StyleCaruso, L. (2023). Toward Regenerative Hospitality Business Models: The Case of “Hortel”. Tourism and Hospitality, 4(4), 618-641. https://doi.org/10.3390/tourhosp4040038