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Original Articles

Business models among SMTEs: identifying attitudes to environmental costs and their implications for sustainable tourism

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Pages 471-488 | Received 22 Oct 2015, Accepted 02 Aug 2016, Published online: 18 Oct 2016
 

ABSTRACT

This paper examines how environmental resources and costs feature in business models of small- and medium-sized tourism enterprises (SMTEs). Several studies have pointed to the generally positive nature of the relationship between the economic and environmental performance of tourism firms. Yet, although business models act as a vector between these aspects of firm performance, they have been overlooked in sustainable tourism discourse. The paper reports findings from discussion groups of SMTE businesses in South West England during the global economic downturn. Environmental costs and cost control were afforded relatively little importance in terms of value creation; conversely, there was a strong and predictable emphasis on revenue generation. Indirect tactics emerged for dealing with guests’ environmental behaviours which reflected this prevailing commercial logic. Green credentials were routinely de-emphasized, sometimes regarded as liabilities, in a form of greenhushing. Responses were framed by reference to social media and how online reviews may negatively impact on future value capture. Conceptually, the business model emerged as an important lens for understanding how environmental resources and costs were valourized. The paper highlights the need to ensure that contemporary approaches to environmental management in SMTEs reflect the current and fast-changing conditions that frame business models.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The study is supported by the University of Exeter; Economic and Social Research Council [RES-185-31-0046]; and The European Regional Development Fund.

Notes on contributors

Tim Coles

Tim Coles is professor of management at the University of Exeter. His research interests are on sustainable business practices in travel and tourism organizations, most recently with a focus on innovation and smart solutions.

Neil Warren

Neil Warren was Business Engagement Specialist for the Centre for Business and Climate Solutions based in the Business School at the University of Exeter. He was previously Sustainability Strategist for South West Tourism, the former regional tourist board. He now works as a Countryside Mobility Manager for Living Options in Devon.

D. Scott Borden

D. Scott Borden is a postgraduate research student based in the Business School at the University of Exeter. His doctoral research, which is conducted in partnership with South West Water, examines the use of potable water by visitors and the potential of social marketing to affect behaviour change.

Claire Dinan

Claire Dinan is a senior teaching fellow at the University of Exeter Business School. She was previously a sustainable tourism manager for the English Tourism Council and freelance consultant in sustainable tourism business practices. Her interests are in sustainable tourism policy, indicators and measurement.

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