The document defines key terms related to eco-innovation in the hospitality industry. It explains that eco-innovation can be a process or outcome that creates value for organizations and consumers while reducing environmental impact. Eco-innovation is classified into product/service, process, organizational, and marketing innovation and can involve new business models or the business model canvas. The document provides market insights on eco-innovation indicators such as environmental sustainability and wastewater treatment for several countries including Italy, Turkey, Austria, Hungary, and Georgia.

1. 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.
2) 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 innovaton
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.

14. Video URL: https://youtu.be/6L_ipFvVtWE
Eco-innovation in 3 minutes!!!

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 envirenmental 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.

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