1. The European Commission support for the production of this publication does not constitute an endorsement of the contents, which solely reflect the views of the
authors. The Commission cannot be held responsible for any use which may be made of the information contained herein
IM 1.1 Main terms and concepts of eco-innovation in hospitality
industry
(including market insights, dynamics and key market players)
2. Learning Outcomes
The learner will be able to explain the main terms and concepts of eco-
innovation in the tourism industry.
3. What is tourism industry?
Tourism industry is characterized as the set of businesses that encourage by giving
infrastructure, products, and services. These set of industries make possible visiting
other places for different purposes and visiting the places for recreation and business
trip.
Tourism industry is all approximately giving vital implies to help visitors all through their
visiting period.
4. What is hospitality industry?
The Hospitality Industry refers to a broad category of fields within the service industry; it
includes lodging, restaurants, event planning, theme parks, transportation, cruise line
and other fields related to the tourism sector.
The hospitality industry mainly depends on free time and disposable income on behalf of
customers, as those represent two important factors, which give the opportunity to
tourists to go on vacation.
5. What is Innovation?
The innovation is the implementation of a novel or mostly improved good
or service products, or process, a new marketing approach, or a new
organizational strategy in business practice (OECD Oslo Manual, 2005).
6. Is Innovation a Process or an Outcome?
Innovation can be defined is both a process and an outcome in accordance with the
companies’ capacity and operations.
On the one hand as a process, innovations may influence an organization’s internal
stakeholders and target end-users.
On the other hand, as an outcome, innovations are defined in terms of their degree
of novelty or uniqueness.
You can find more information here: https://hospitalityinsights.ehl.edu/industry-report-hospitality-innovation
7. What is open innovation?
Enterprises are now applying all kinds of new ideas, methods,
manpower and technology to their enterprises with external sources.
Such practices are defined as open innovation.
Cooperation with the stakeholders such as customers, suppliers,
competitors, universities, professional organizations, etc. makes
significant contributions to the open innovation process.
8. What is Eco-innovation?
The literature defines eco-innovation in two perspectives:
1) It is the process or product that creates an increase in the value of both
organizations and consumers and significantly reduces the negative impact
on the environment.
1) It is the capable of optimizing the use of natural resources in products,
processes or organizational designs or new marketing policies, and reduce
the effects of these changes on nature.
9. Classification of Eco - innovation
1) Product / Service innovation
2) Process innovation
3) Organisational innovation
4) Marketing innovation
10. What is Product / Service innovation?
A product/service innovation is the introduction of a good or a
service which is new or considerably improved as regards its
characteristics or intended uses.
It includes important improvements in technical specifications,
materials, components, incorporated software, user friendliness or
other characteristics. Product innovation can be related to new
products or new uses for existing products.
11. What is Process innovation?
Process innovation is the completion of a new or considerably improved production or delivery
method. It can include changes in techniques, equipment and / or software. This kind of
innovation can be planned in order to:
• decrease unit costs of production or delivery
• increase the quality
• produce or deliver new or significantly improved products
• Process innovation can include production methods and delivery methods.
12. What is organisational innovation?
Organizational innovation is the completion of a new method in the
project’s business practices, workplace organization or external
relations.
It includes processes which lead to the establishment or
implementation of new models of production and management.
It is not merely related to the production, but also to tangible and
intangible resources.
13. What is marketing innovation?
Marketing innovation refers to the adoption of a new marketing method
(idea or strategy) which involves considerable changes in product design
or packaging, product placement, product promotion or pricing.
To be defined as a marketing innovation, the method introduced have to
be significantly different from the previous ones used by the
enterprise.
15. Business Model
A business model is a conceptual vehicle that includes different
interrelated principles and give opportunity to explain the business logic
and representation of a specific firm.
16. Business Model Canvas
The graphics and schemes are used in business models in order to define and
present the organisation strategy.
If one organisation aims to provide a general business model, the business
model canvas helps to simplify and project the organisation’s strategy.
Both all kinds of SMEs and start – ups take advantage of business model
canvas to describe, develop and manipulate their operatios and business
plans.
17. Eco-innovative Business Model
An eco-innovative business model is a value driver which is aiming to create
not only economic value but also environmental value by applying green
technologies and solutions.
18. Why do we need Eco-Innovative activities?
The recent world is facing important and serious environmental challenges, therefore we
need to create clear and substantial environmental benefits through new and effective
social models, technologies and economy. Sustainable solutions are important to make
better use of precious resources and reduce the negative effect of the economy on the
environment.
Eco-innovative business model makes your business greener and minimize the negative
impacts, such as, climate change, resource scarcity and dwindling biodiversity, of your
organisation.
19.
20. 9 steps of having an eco-innovative business model canvas
• Define your key partners for eco – innovation
• Define your key activities for eco – innovation
• Define your key resources for eco – innovation
• Decide your value propositions for eco – innovation
• Build a sustainable customer relationships for eco – innovation
• Establish channels for eco – innovation
• Decide customer segments for eco – innovation
• Identify cost structure for eco – innovation activities
• Identify revenue streams for eco – innovation activities
21. Market Insights – Italy
• Tourism Competitiveness Rank: 8th/136
• Enviromental Sustianability in Tourism Rank: 37th/136
• Prioritization of Tourism Rank: 75th/136
• Enforcement of environmental regulations Rank: 84th/136
• Sustainability of travel and tourism industry development Rank:
106th/136
• Wastewater treatment Rank: 21th/136
22. Market Insights – Turkey
• Tourism Competitiveness Rank: 44th/136
• Enviromental Sustianability in Tourism Rank: 112th/136
• Prioritization of Tourism Rank: 87th/136
• Enforcement of environmental regulations Rank: 86th/136
• Sustainability of travel and tourism industry development Rank: 41th/136
• Wastewater treatment Rank: 53th/136
23. Market Insights – Austria
• Tourism Competitiveness Rank: 12th/136
• Enviromental Sustianability in Tourism Rank: 2nd/136
• Prioritization of Tourism Rank: 19th/136
• Enforcement of environmental regulations Rank: 3th/136
• Sustainability of travel and tourism industry development Rank:
14th/136
• Wastewater treatment Rank: 9th/136
24. Market Insights – Hungary
• Tourism Competitiveness Rank: 49th/136
• Enviromental Sustianability in Tourism Rank: 23th/136
• Prioritization of Tourism Rank: 42nd/136
• Enforcement of environmental regulations Rank: 90th/136
• Sustainability of travel and tourism industry development Rank: 112th/136
• Wastewater treatment Rank: 42nd/136
25. Market Insights – Georgia
• Tourism Competitiveness Rank: 70th/136
• Enviromental Sustianability in Tourism Rank: 42nd/136
• Prioritization of Tourism Rank: 41st/136
• Enforcement of environmental regulations Rank: 88th/136
• Sustainability of travel and tourism industry development Rank:
64th/136
• Wastewater treatment Rank: 111th/136
