**1. Introduction**

In Poland, there are 45 health resorts, meaning areas of confirmed therapeutic properties of the climate that may be a remedy to limit the negative influence of harmful phenomena on society. It seems that health tourism and especially spa tourism can limit both the negative effects of pollution by engaging in tourism in natural areas and at the same time meet the demanding needs of the aging society to maintain good health for as long as possible [1].

The hitherto social role of spas, which perform mainly social functions in the field of health care and health prevention, is undergoing significant changes, caused by several significant events. Although the changes in the market of spa treatment services are usually evolutionary in nature, as they have been occurring since the beginning of the 1990s, there is still a clear discrepancy between the potential of Polish health resort enterprises and its use, as well as between the needs reported by the market and the offers of most tourist and healing establishments. An additional feature of the noticeable changes is the ambiguous perspective of conducting the spa facility, because while some facilities continue to operate almost exclusively in pursuit of social objectives, others seem to direct the purposefulness of their operations almost exclusively towards economic effects, and far later towards social effects, for which health resort activities have been included in the health care system [2].

The progressing transformation of tourist and healing activities in the scope of broadly understood organizational and market processes reveals at the same time that the tools for operating this activity are outdated. The functioning of an enterprise deprived of reliable strategic tools in a turbulent environment is becoming more and more difficult, and the lack of response to the reported market needs may even lead to a crisis. It is necessary to offer managers modern management tools, covering the broadest possible scope of integration of elements of the conducted business activities, and at the same time, adjusting to the specificity of the market in which the enterprises managed by them operate [3,4]. The proposal formulated in the light of the presented needs is to use the concept of business models to develop a business model of a spa enterprise adapted to the existing conditions of tourist and healing activities.

The basic research problem discussed in this paper results from difficulties in developing a business model dedicated to health resort enterprises, as it requires both theoretical knowledge of the activities of health resort enterprises and available business modeling concepts, as well as empirical research on business practice concerning the elements of tourism and health resort activity and market expectations of the customers. The area of issues includes issues related to business models and the activities of spa enterprises. However, the latter issue requires the identification of two other areas of knowledge directly related to the tourist and healing activities. The first one is health tourism carried out in spas, while the second area of scientific knowledge which is closely related to health tourism, is therapeutic activity within the scope of spa treatment (conducted on the basis of medical specialization concerning balneology and physical medicine).

It is also worth noting the phenomenon of overtourism [5], which also applies to the spa areas. As literature shows, most often tourism concentrates on economic and social viability at the expense of environmental sustainable development. Some scientists are trying to develop environmental policy integration [6], but it is generally difficult to implement. The problem of overtourism in tourism destinations and spas was noticed in the 1980s in the concept of TALC (Tourism Area Life Cycle) put forward by R.W. Butler [7] and its modifications or development hypotheses [8]. The arduous impact of excessive tourist traffic in a health resort may deprive the area of its features that distinguish it among other tourist areas. However, the literature proves that other important factors affecting the load on the area are also the behavior of visitors, duration of stay, concentration of tourists, and the type of tourism [9,10]. Therefore, all business activities in this area should take into account not only the profits, but also the social role of spa enterprises and their sustainable development [11]. However, in order to find a balance between the expansion of business activities and its permissible interference in the spa area, activities aimed at sustainable development should be included in contemporary business models.

The existing research achievements in the field of business models in tourist and healing enterprises proves that this area is still unexplored, and few studies in this area concern only a fragmentary approach to the subject [12]. There are some works that address the characteristics of particular elements of the business model, rather than its complete form, as well as those that include business models developed for tourism activities in other areas, e.g., related to post-industrial cultural heritage tourism [13]. Researchers in the field of tourism economics generally focus their attention on individual elements of spa activity, e.g., on a health resort product, as a value proposition or on selected segments of customers, forgetting about the importance of other elements of the activities and about the mutual relations between these elements. Such a possibility is offered by business models, especially the model dedicated to spa enterprises.

In relation to the research problem identified above and the current state of knowledge in the subject under discussion, it is possible to identify a clear cognitive gap, which should be defined as a lack of knowledge on the applicability of business models and their elements in modern spa enterprises, as well as the possibility of a model approach to tourist and health resort activities conducted in health resorts using a business model dedicated to health resort enterprises.

The cognitive purpose of the paper is to recognize the scope of applicability of the business model in spa enterprises, using Polish spa enterprises as an example. The implementation of the goal of the article will allow us to answer two questions—what is the range of applicability of business models in spa enterprises and what are the characteristics of elements of business models of spa enterprises? The identification of the research problem made it possible to define research questions and at the same time allowed us to organize the research process and direct its further preliminary stages towards determining its purpose. Knowing and understanding the mechanisms of conducting spa business, establishing what constitutes the components of the business model of spa enterprises, and consequently proposing a business model dedicated to health resort enterprises was a key vision for the implementation of the research works presented in the article.

## **2. Literature Review**

Business models in the economic sense have been known in the literature only since the 1970s [14], when E. Konczal [15] added to business models a managerial value, clearly suggesting that they should not be perceived only as scientific or natural science tools. Since then, the models started to be associated with business, but their usage was not widespread. When looking at modern definitions of business models, one can notice that they are perceived though the discipline of a particular researcher. They can be perceived as a synthetic description of the business nature [16] or as a tool [17] describing the relations between the components that lead to the development and capturing of value by the organization [18].

The perspective of perceiving business models through description is confirmed by J. Magretta [16]. She considers the business models to be a story explaining how the enterprise works. More detailed definitions can be found in the perspective related to the tool character of the business model. D. Teece [17] perceives them as a tool describing the design or architecture of creation, supply or value-capturing mechanisms. He also notes that the core of a business model is defining the way in which the enterprise captures the value for the customers, entices them to pay for this value, and converts payables into profits. S. Prendeville and N. Bocken [19] perceive the business model similarly. They describe it as a conceptual tool describing the activities that refer to business transactions between customers, partners and suppliers and the organization and their participation in the development and capturing of value.

When paying attention to the tool character of the business models, it was emphasized that they are not only used to describe the business reality, but also—when effectively used—to shape this reality. For that purpose, it is important to indicate elements of that model and relations that occur between them. It was emphasized by M. Geissdoerfer et al. [20], who defined the business model as a simplified representation of organization elements, together with the interaction between these elements, to analyze, plan and communicate in the intricate organizational structure. A similar approach is presented by M. Johnson et al. [21], describing it as interrelated elements, that is, the proposal of value, profit formula, key processes, and resources that create and deliver the value.

T. Falencikowski [22] believes that a business model is a multi-component unit, developed and separated to present, in a simplified way, the manner of running a business, by describing the logic of value creation for the consumer and capturing its part by the enterprise. B. Rusu [23] also maintains the above assumption and understands the business model as a correlation system that enables the creation of value for customers based on enhanced planning of architecture of the designed system and correlated activities. A. Wi´sniewski [24] presents a specific way of perceiving the revenue. He defines the business model by referring to the basic concepts and presents it as a description of construction, activity and correlations in a venture that generates profits.

C. Batistella et al. [18] have an interesting approach to this subject. They pay attention to the relations with other manager tools. They assume that the business model presents how the strategy is implemented by description of creation, supply and recording of economic, social or other values. The description of relations with other manager tools and manners of value creation and capturing can

occur in two ways: with the use of description or graphics. It is emphasized by M. Al.-Debei et al. [25], who perceive business models as an abstract textual or graphic representation of interrelated structures of model architecture prepared by the organization and of all the products and services, that the organization has in offer and that are essential to achieve its aim.

B. Iwasieczko [26] defines a business model as a configuration of business elements established to create value for the customers and to be an element of effective competition. B. Nogalski [4] has similar views, while also paying attention to the resources being a key aspect of an organization. He described a business model as a characteristic of value for the customer, a set of basic resources, activities and relations with partners, the aim of which is to create this value and competitive advantage.

The issue of business models in tourism is rarely discussed in literature. In general, it is analyzed in a context of another major subject, such as knowledge and technology or in the scope of innovations. An example can be the work of J. Souto [27], who focuses on the research on the innovation in the scope of business modeling and implementation of innovations. It can also be noticed that much thought is devoted to knowledge as a strategic resource of innovative enterprises. The proper usage of knowledge enables one to design more attractive tourism experiences and more innovative marketing channels through which new recipients can be reached [28].

Some enterprises gain knowledge on their customers and their preferences by building relations with them. F. Mantaguti and E. Mingotto [29] when researching tourism enterprises in the small and medium enterprises sector, noticed that an important success factor is the common identification between the entrepreneur, staff and customers, especially with the use of electronic media.

Many tourism enterprises in their business models often assume new technologies to be indispensable elements to maintain competitiveness and profitability [30]. In that publication, the subject of creating value for the consumer of tourism services with the use of augmented reality was discussed. When researching the technology potential as a value proposal, the researchers noticed that there is significant support from the side of visitors and stakeholders. Among the advantages to which the researches paid attention was the increase of tourism attractiveness, revenues and competitiveness. Augmented reality is definitely an interesting proposal when diversifying the product of tourism enterprises. However, it is an additional element, supporting the basic product, just like other modern technologies.

An example of diversifying the offer is the use of a multimedia application to present tourist attractions. In their publication on innovative museums, C. Ciurea and F. G. Filip [31] indicate the advantages of such a solution. According to them, it can be a possibility to present the collections to which access is difficult (for example, delicate museum pieces). Moreover, they describe the possibility of using the tool by many entities, when in case a number of museums belong to a common network, virtual exhibitions can be opened, expanding the displayed heritage by adding pieces or collections belonging to other facilities.

Publications concerning the establishment or co-establishment of value for the customer, both in terms of sustainable tourism [28,32] and in creating value [33], are a valuable inspiration when creating innovative business models. An interesting discussion on business models in the tourism sector concerns the accommodation and catering services. M. Diaconu and A. Dutu [34] paid attention to the evolution of the hotel industry towards innovative business models. They emphasized that this results from the belief that the development of new technologies became a way to achieve success, as it offers the possibility to expand the distribution channels, reduces the time of reservation bookings, and creates a network of organizations engaged in maintaining the value chain.

Similar views are expressed by L. Knop and J. Brzóska [35], who in their characterization of a business model focus on the customers and what the enterprise can offer them. They describe the business model as configuration system of resources and activities (intercorrelated), covering among others the creation of values that on the one hand need to satisfy the needs of the customer and on the other hand need to be a source of revenue for the enterprise. J. Gordijn and H. Akkermans [36], when describing the enterprises of the energy sector, developed a sequence called "BusMod", being a

gradual general methodological process of modeling and analyzing business activity. They identified six construction stages. In the proposed sequence, the authors underlined the value of the idea as a crucial stage being the beginning of business designing. It is the first step of business model creation in which a central axis is formulated with which the remaining components will be aligned. The value of the idea is to be a source of knowledge on the reasons why the customer will be likely to use the end product; therefore, next, it is proposed to create a list of business goals and their priorities. It makes it possible to adjust and select the technologies necessary to implement these goals. By implementing particular stages of the presented designing sequence, one can obtain a values model based on the available resources, key activities and business partners. Next, the prepared values model needs to be analyzed in terms of profitability. The procedure ends with preparing scenarios of business model development. It is an example of business modeling taking into account the linear character of the designing process.

H. Chesbrough [37] argues that innovation in business models has vital importance but at the same time, it is hard to achieve. The reason is, that even with help of tools like business maps, charts, or CANVAS are helpful to bring a change into a business model. However, the realization of that change is challenging, because when the model changes, the organizational processes has to change as well, and those are not mapped by such tools. Therefore, the curtailed tasks of introducing innovations into business models lays on internal leaders who can manage the change a deliver relay functioning innovative models.

Innovation in a business model should concentrate on the value proposition it includes, adopting it to the ever-changing market conditions and customer demands. One can say that the main purpose of a business model is to respond to the needs of clients, building all other elements around it. This finds reflection in the very definition of a business model used by D. Teece [38], who defines a business model as a description of a design of architecture of value creation, delivery and capture mechanisms. So, the main function of such a model is to recognize customers' needs and their ability to pay for fulfilling this need. It also defines the manner of how an enterprise responds to those needs by delivering value to the customers. In other words, a business model tells the company what the client wants, how they want it, what they are willing to pay for it, and how the enterprise should be organized to meet those needs as best as it can, getting paid well for doing so.

The same applies to business models in tourism; therefore, the key aspect to understanding their role in a tourist enterprise, it is crucial to examine the receiving side first: who are the clients, what is it that they want, and what makes the value of the delivered product for them.

In business models for tourism enterprises, the offer has to respond to the needs and preferences of tourists, so their perspective on the value proposition is highly important. This is especially significant in the case of spa facilities that mainly service domestic visitors. As S. Page [39] notices, domestic tourism is the dominant form of tourist activity in terms of traffic volume. So studying the local preferences and needs serves to improve the part of the tourist sector that has the biggest impact on all of the tourist traffic in the country. Findings from Central Europe confirm, that in the case of countries like Poland or Czech Republic, tourists prefer domestic products [40] and value them more over abroad alternatives. Therefore, it is much more suited to continuously update the state of knowledge about detailed tourist perceptions of a product, rather than using generalized data and observations about global trends; even if they are accurate, they may lack specific details. Moreover, while knowledge about international tourism is relatively broad and in center of researchers interest [41], domestic tourism gets oftentimes marginalized, staying unknown and rarely researched [42]. This is because international tourism is oftentimes perceived as having more economic importance in comparison to domestic tourism [43].

Even if the concept of business models has previously not been approached in spa tourism, or even other forms of tourism, i.e., heritage tourism (before the authors first researched on this matter [13]), value proposition has been studied in various forms of tourism, it was not examined from the business model's perspective most of the time. The vast majority of the research that unintendedly

did that were the studies on tourist perception of a destination, or those where tourist satisfaction was measured and examined. One can name multiple examples of such an activity, like, for instance, the research on international tourists' perception of Kuala Lumpur by N.A. Ragavan, H. Subramonian and S.P. Sharif [44], where the authors conducted a survey in order to determine the impact on tourist perception such attributes like accommodation and food, attractions, climate, culture etc. have. A similar approach was taken by M. Kozak [45] when he studied tourist satisfaction among British and German visitors in Mallorca and Turkey. Again, the factors taken into consideration among others included: accommodation service, hospitality and customer care, facilities and activities, transport services, and pricing. J.S. Akama [46] tackled the issue of tourist satisfaction in Kenya's safaris by comparing visitors' perception grades with expectation grades that concerned various aspects of this kind of tourism (i.e., natural attractions, facilities—the looks and functionality of them, staff's attitude, and pricing). One can find similar approaches in recent works as well [47,48].

While results obtained using such methods can be compared within studies that approach similar forms of tourism (i.e., vacation tourism to marine locations, holidays in tourist resorts etc.), cross form comparisons might give false results. It is the very core of a touristic product that makes up the value for customers. Heritage tourists expect authentic culture to be in the center; spa clients seek health improvement in the first place; families taking a 2 week vacation in a beach resort are there for the sun, beach, entertainment and hotel living comfort etc. Therefore, this study being the first one that focuses on the issue of value proposal in spas not only fills a recognized research gap, but also might be used to perform such comparisons for other studies in this field.
